Accounting Mcqs

Page No. 49

Which of the following is true with respect to providing depreciation under diminishing balance method?


aThe amount of depreciation keeps increasing every year while the rate of depreciation keeps decreasing

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bThe amount of depreciation and the rate of depreciation decrease every year

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cThe amount of depreciation decreases while the rate of depreciation remains the same

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dThe amount of depreciation and the rate of depreciation increases every year

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A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on written down value method, find the profit or loss on sale of the Second hand car?


aLoss of 20,000

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bLoss of 22,000

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cLoss of 11,000

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dProfit of 11,000

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View Answer Loss of 22,000

A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on SLM method, find the profit or loss on sale of the car?


a20,000 Loss

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b20,000 Profit

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c10,000 Loss

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d10,000 Profit

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View Answer 20,000 Loss

Which of the following is not a method of charging depreciation?


aStraight line Method

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bWritten down value Method

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cDiscounted present value Method

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dSum of digits Method

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Provision is created for____________?


aUnknown Liabilities

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bKnown Liabilities

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cCreation of Secret Reserves

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dAll the Three

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View Answer Known Liabilities

Which of the following is not a cause of difference in balance as per cash book and balance as per bank pass book___________?


aErrors in cash book

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bErrors in pass book

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cErrors in pass book

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dCheques issued but not presented for payment

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View Answer Errors in pass book

Debit balance as per bank pass book mean_____________?


aSurplus cash

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bBank Overdraft

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cTerms deposits with bank

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dNone of these

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View Answer Bank Overdraft

Benefits of preparing Bank Reconciliation Statement includes___________?


aIt bring out any errors committed in preparation of Cash book / Bank Pass Book

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bHighlights under delay in clearance of cheques deposited but not credited

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cHelp know actual bank balance

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dAll the three

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View Answer All the three

Bank reconciliation statement is a part of_________?


aCash book

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bTrial balance

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cAuditors report

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dNone of these

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View Answer Cash book

Bank reconciliation is a statement prepared to reconcile__________?


aTrial balance

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bCash book

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cBank A/c

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dCash as per cash book with bank balance as per bank pass book

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