Accounting Mcqs

Page No. 22

The three column cash book represents


aReal accounts


bNominal accounts


cNominal and personal accounts


dReal, personal and nominal accounts



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


aFIFO


bLIFO


cWeighted average cost method


dSimple average method


View Answer FIFO

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


aInterest on debentures


bDividend


cProvision for taxation


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


cRealizable value


dSalvage value


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


bDebenture


cFixed deposit receipt


dProspectus


View Answer Prospectus

Which of the following is a leverage ratio?


aDebt equity ratio


bCurrent ratio


cQuick ratio


dEarning power


View Answer Debt equity ratio

The trade discount on purchases is recorded


aWhen it is received


bWhen the inventory is purchased


cWhen the inventory is sold


dNot at all recorded in the books



Under cash basis of accounting, revenue is recognized when


aSale is made


bCash is received


cGoods are delivered


dServices are rendered


View Answer Cash is received

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


aCurrent liabilities


bLoans and advances


cNotes to balance sheet


dDirector's report



Purchase of fixed assets on credit is originally recorded in


aPurchases book


bLedger


cCash book


dJournal Proper


View Answer Journal Proper

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