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


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


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


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



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


bLoss of 22,000


cLoss of 11,000


dProfit of 11,000


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


b20,000 Profit


c10,000 Loss


d10,000 Profit


View Answer 20,000 Loss

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


aStraight line Method


bWritten down value Method


cDiscounted present value Method


dSum of digits Method



Provision is created for____________?


aUnknown Liabilities


bKnown Liabilities


cCreation of Secret Reserves


dAll the Three


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


bErrors in pass book


cErrors in pass book


dCheques issued but not presented for payment


View Answer Errors in pass book

Debit balance as per bank pass book mean_____________?


aSurplus cash


bBank Overdraft


cTerms deposits with bank


dNone of these


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


bHighlights under delay in clearance of cheques deposited but not credited


cHelp know actual bank balance


dAll the three


View Answer All the three

Bank reconciliation statement is a part of_________?


aCash book


bTrial balance


cAuditors report


dNone of these


View Answer Cash book

Bank reconciliation is a statement prepared to reconcile__________?


aTrial balance


bCash book


cBank A/c


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



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