Accounting Mcqs

Page No. 43

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


aStock

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bVehicle

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cFixed deposit in bank

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dBoth A. and C. above

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View Answer Both A. and C. above

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


aCredited to the Profit & Loss Account

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bDebited to the Profit & Loss Account

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cShown on the liabilities side of the Balance Sheet

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dShown on the assets side of the Balance Sheet

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Which of the following is not a financial statement?


aProfit and Loss Account

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bBalance Sheet

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cFunds Flow Statement

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dTrial Balance

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View Answer Trial Balance

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


aDrawings

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bBad debts

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cAccrued expenses

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dReserve for discount on Sundry Creditors

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View Answer Drawings

The Profit and Loss Account shows the:


aFinancial results of the concern for a period

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bFinancial position of the concern on a particular date

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cFinancial results of the concern on a particular date

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dCost of goods sold during the period

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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

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

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cNet Profits are ascertained on the basis of current costs

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

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Which of the following equations is correct?


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

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

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

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

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


aLoss on sale of undertaking

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bDebts considered bad and written off

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cLiability arising from a breach of contract

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dDirector‘s remuneration

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Gross Profit is equal to_________?


aSales – Cost of goods sold

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bSales – Closing Stock + Purchases

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cOpening Stock + Purchases – Closing Stock

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dNone of the above

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Which of the following relationships is/are false?


aNet Profit = Gross Profit – Administration and Other expenses

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bNet Profit = Gross Profit + Administration expenses and Other expenses

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cOpening Stock + Purchases – Closing Stock = Cost of Sales

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dBoth B. and C. above

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View Answer Both B. and C. above

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