Accounting Mcqs

Page No. 24

In case of debit balance, the words _____ are written on the debit side


aTo Balance b/d

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bTo Balance c/d

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cBy Balance c/d

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dBy Balance b/d

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View Answer To Balance b/d

___ days of grace are allowed in case of time bills, for calculating date of maturity


a2

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b3

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c4

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d5

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View Answer 3

A bill of exchange is called a ____ by one who is liable to pay it on the due date


aBill receivable

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bNoted bill of exchange

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cBill payable

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dNone of the above

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View Answer Bill payable

A bill of exchange when drawn requires


aNoting

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bDiscounting

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cAcceptance

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dNone of the above

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View Answer Acceptance

Discounting of bill by the drawer is done with


aCreditor

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bDrawee

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cBank

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dNotary public

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View Answer Bank

A minimum quantity of stock always held as precaution against out of stock situation is called


aZero stock

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bRisk stock

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cBase stock

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dNone of the above

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View Answer Base stock

The cost of a small calculator is treated as an expense and not shown as an asset in a financial statement of a business entity due to


aMateriality concept

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bMatching concept

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cPeriodicity concept

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dConservatism concept

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View Answer Materiality concept

The left side of an account is known as ___ and the right side as ____


aDebit, Credit

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bCredit, Debit

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cLiability, Asset

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dNone of the above

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View Answer Debit, Credit

____ principle requires that the same accounting method should be used from one accounting period to the next


aConservatism

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bConsistency

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cBusiness entity

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dMoney measurement

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View Answer Consistency

A promissory note is drawn by ______ in favor of _____


aDrawer, Drawee

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bMaker, Payee

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cPayer, Payee

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dDrawer, Payee

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View Answer Maker, Payee

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