Accounting Mcqs

Page No. 29

Which of the following is a long term liability?


aOutstanding expenses

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bShare capital

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cDebentures

✓


dAll of the above

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View Answer Debentures

Profit & Loss account is prepared for a period of one year by following


aPeriodicity concept

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bBusiness entity concept

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cAccrual concept

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dNone of the above

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View Answer Periodicity concept

_____ will generally show a debit balance


aBank loan

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bBad debts recovered

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cDrawings

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dSalary payable

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View Answer Drawings

The assumption underlying the fixed installment method of depreciation is that of ____ of the asset over its useful life


aEqual usage

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bUsage

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cCharge

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dNone of the above

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View Answer Equal usage

Rs.5000 spent on maintenance of computer is


aDeferred capital expenditure

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bCapital expenditure

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cRevenue expenditure

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dNone of the above

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View Answer Revenue expenditure

Accommodation bill is drawn


aTo finance actual purchase or sale of goods

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bTo facilitate trade transmission

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cTo cater the fund requirements of both the parties

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dNone of the above

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Parties to a bill of exchange are


aDrawer

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bDrawee

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cPayee

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dAll of the above

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View Answer All of the above

Which error cannot be revealed on the preparation of trial balance?


aWrong totalling of account

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bCompensatory errors

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cError of commission

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dWrong balancing of an account

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View Answer Compensatory errors

Errors are _____ mistakes


aIntentional

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bUndetected

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cUnintentional

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dNone of the above

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View Answer Unintentional

The Journal entry in which two or more account is debited or credited is referred to as


aJournal entry

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bMulti entry

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cAdditional entry

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dCompound entry

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View Answer Compound entry

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