Accounting Mcqs

Page No. 22

The three column cash book represents


aReal accounts

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bNominal accounts

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cNominal and personal accounts

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dReal, personal and nominal accounts

✓



Which of the following inventory valuation methods show higher profits during the period of rising prices?


aFIFO

✓


bLIFO

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cWeighted average cost method

✖


dSimple average method

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View Answer FIFO

Which of the following appears in the profit and loss appropriation account?


aInterest on debentures

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bDividend

✓


cProvision for taxation

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dProvision for bad debts

✖


View Answer Dividend

The portion of the acquisition cost of an asset yet to be allocated is known as


aWritten down value

✓


bAccumulated value

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cRealizable value

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dSalvage value

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View Answer Written down value

The document inviting offers from public to subscribe for the debentures or shares of a body corporate is a


aShare certificate

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bDebenture

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cFixed deposit receipt

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dProspectus

✓


View Answer Prospectus

Which of the following is a leverage ratio?


aDebt equity ratio

✓


bCurrent ratio

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cQuick ratio

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dEarning power

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View Answer Debt equity ratio

The trade discount on purchases is recorded


aWhen it is received

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bWhen the inventory is purchased

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cWhen the inventory is sold

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dNot at all recorded in the books

✓



Under cash basis of accounting, revenue is recognized when


aSale is made

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bCash is received

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cGoods are delivered

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dServices are rendered

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View Answer Cash is received

The claims against the company not acknowledged as debts are shown as


aCurrent liabilities

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bLoans and advances

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cNotes to balance sheet

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dDirector's report

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Purchase of fixed assets on credit is originally recorded in


aPurchases book

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bLedger

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cCash book

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dJournal Proper

✓


View Answer Journal Proper

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