Accounting Mcqs

Page No. 46

During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?


aRs. 33,000

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bs. 25,000

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cRs. 17,000

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dRs. 8,000

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View Answer Rs. 17,000

Average Accounting Return is a measure of accounting profit relative to:


aBook value

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bIntrinsic value

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cCost

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dMarket value

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View Answer Book value

The balance of Revaluation Reserve pertaining to an asset that has been disposed off or retired can be transferred to?


aGeneral Reserve A/c

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bProfit & Loss A/c

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cAsset A/c

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dCapital Reserve A/c

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View Answer Capital Reserve A/c

At the time of preparation of financial accounts, bad debt recovered account will be transferred to?


aDebtors A/c

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bProfit & Loss A/c

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cProfit & Loss Adjustment A/c

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dProfit & Loss Adjustment A/c

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View Answer Profit & Loss A/c

Under the direct write-off method of recognizing a bad debt expense. Which of the following statements is/are true?


aThe bad debt expense is not matched with the related sales

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bRevenue is overstated in the year of sales

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cIt violates the matching principle of accounting

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dAll of the above

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View Answer All of the above

The creation of provision for doubtful debts given as an adjustment requires____________?


aDebit Profit and Loss Account and deduct the provision from debtors

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bCredit Profit & Loss Account and deduct the provision from debtors

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cCredit Profit and Loss Account and add the provision to debtors

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dDebit Profit & Loss Account and add the provision to debtors

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If actual bad debts are more than the provision for bad debts, then there will be a_____________?


aCredit balance of Provision for Bad Debts Account

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bDebit balance of Provision for Bad Debts Account

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cDebit balance of Bad Debts Account

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dDebit balance of Discount on Debtors Account

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Which of the following is not classified as inventory in the financial statements?


aFinished goods

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bWork-in-process

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cStores and spares

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dAdvance payments made to suppliers for raw materials

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Recent developments have made much of a company‘s inventory obsolete. This obsolete inventory should be?


aWritten down to zero or its scrap value

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b Shown in the Balance Sheet at its replacement cost

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cShown in the Balance Sheet at cost, but classified as a non-current asset

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dCarried in the accounting records at cost until it is sold

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If a company has contingent liabilities, they appear in the__________?


aBalance Sheet

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bDirectors‘ report

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cNotes on account to Balance Sheet

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dChairman‘s report

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