Accounting Mcqs

Page No. 43

Which of the following are/is not a fixed asset?


aStock


bVehicle


cFixed deposit in bank


dBoth A. and C. above


View Answer Both A. and C. above

If unexpired insurance appears in the Trial Balance, it should be:


aCredited to the Profit & Loss Account


bDebited to the Profit & Loss Account


cShown on the liabilities side of the Balance Sheet


dShown on the assets side of the Balance Sheet



Which of the following is not a financial statement?


aProfit and Loss Account


bBalance Sheet


cFunds Flow Statement


dTrial Balance


View Answer Trial Balance

Which of the following will not appear in Profit and Loss Account of a business?


aDrawings


bBad debts


cAccrued expenses


dReserve for discount on Sundry Creditors


View Answer Drawings

The Profit and Loss Account shows the:


aFinancial results of the concern for a period


bFinancial position of the concern on a particular date


cFinancial results of the concern on a particular date


dCost of goods sold during the period



Which of the following is not true with regard to preparation of Profit & Loss Account?


aProfit & Loss Account is prepared for a certain period and hence it is an interim statement


bProfit & Loss Account does not disclose the effect of non-financial items


cNet Profits are ascertained on the basis of current costs


dNet Profits as disclosed by P&L Account is not absolute



Which of the following equations is correct?


aGross Profit+ Sales+ Direct expenses+ Purchases+ Closing stock = Opening stock


bGross Profit+ Sales+ Direct expenses+ Purchases- Closing stock = Opening Stock


cGross Profit + Opening Stock + Direct expenses + Purchases- Closing stock = Sales


dGross Profit – Opening Stock + Direct expenses + Purchases +Closing stock = Sales



Which of the following shall not be deducted from net profit while calculating managerial remuneration?


aLoss on sale of undertaking


bDebts considered bad and written off


cLiability arising from a breach of contract


dDirector‘s remuneration



Gross Profit is equal to_________?


aSales – Cost of goods sold


bSales – Closing Stock + Purchases


cOpening Stock + Purchases – Closing Stock


dNone of the above



Which of the following relationships is/are false?


aNet Profit = Gross Profit – Administration and Other expenses


bNet Profit = Gross Profit + Administration expenses and Other expenses


cOpening Stock + Purchases – Closing Stock = Cost of Sales


dBoth B. and C. above


View Answer Both B. and C. above

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