Accounting Mcqs

Page No. 24

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


aTo Balance b/d


bTo Balance c/d


cBy Balance c/d


dBy Balance b/d


View Answer To Balance b/d

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


a2


b3


c4


d5


View Answer 3

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


aBill receivable


bNoted bill of exchange


cBill payable


dNone of the above


View Answer Bill payable

A bill of exchange when drawn requires


aNoting


bDiscounting


cAcceptance


dNone of the above


View Answer Acceptance

Discounting of bill by the drawer is done with


aCreditor


bDrawee


cBank


dNotary public


View Answer Bank

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


aZero stock


bRisk stock


cBase stock


dNone of the above


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


bMatching concept


cPeriodicity concept


dConservatism concept


View Answer Materiality concept

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


aDebit, Credit


bCredit, Debit


cLiability, Asset


dNone of the above


View Answer Debit, Credit

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


aConservatism


bConsistency


cBusiness entity


dMoney measurement


View Answer Consistency

A promissory note is drawn by ______ in favor of _____


aDrawer, Drawee


bMaker, Payee


cPayer, Payee


dDrawer, Payee


View Answer Maker, Payee

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