Accounting Mcqs

Page No. 23

Provision for bad debts is made as per the


aConservatism concept


bCost concept


cConsistency concept


dGoing concern concept


View Answer Conservatism concept

If the opening inventory of a business is undercast, it will


aIncrease gross profit and decrease net profit


bDecrease gross profit as well as net profit


cIncrease value of assets


dIncrease gross profit as well as net profit



Declared dividend should be classified in the balance sheet as a


aProvision


bCurrent liability


cReserve


dCurrent asset


View Answer Current liability

Amortization of unidentified intangible assets is in terms of


aConservatism concept


bMateriality concept


cMatching concept


dCost concept


View Answer Matching concept

Which of the following is not considered as Research & Development costs?


aTesting in search for product alternatives


bLegal work on patent application


cModification of design of a process


dSearching for application of new research findings



Based on which of the following concepts, is share capital account shown on the liability side of a balance sheet?


aBusiness entity concept


bMoney measurement concept


cCost concept


dGoing concern concept



The maximum amount beyond which a company is not allowed to raise funds by issue of shares is


aIssued capital


bReserve capital


cNominal capital


dSubscribed capital


View Answer Nominal capital

Which of the following ratios indicate the short-term liquidity of a business?


aInventory turnover ratio


bDebt equity ratio


cAcid test ratio


dProprietary ratio


View Answer Acid test ratio

Which of the following is true when a debtor pays his dues?


aThe asset side of the balance sheet will decrease


bThe asset side of the balance sheet will increase


cThe liability side of the balance sheet will increase


dThere is no change in total assets or total liabilities



Bank pass book is also known as


aBank book


bBank account


cBank column


dBank statement


View Answer Bank statement

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