Accounting Mcqs

Page No. 54

Which one of the following should be considered a revenue expenditure?


a1000 paid for the execution of a new plant

✖


bLoss of 10,000 incurred in increasing the sitting accommodation of a hotel

✖


cDamage paid on account of breach of a contract to supply certain goods

✓


dRepair to machinery purchased, second hand.

✖



The balance of which of the following accounts do not disappear, once they are debited/credited to Trading Account?


aSales

✖


bPurchases

✖


cInward

✖


dClosing stock

✓


View Answer Closing stock

Which of the following is an item of capital expenditure?


aResearch and development costs during the year

✖


bInterest on borrowed fund utilized for acquisition of Office Furniture

✖


cInstallation charges paid in conjunction with the purchase of Office Equipment

✓


dMonthly rent of a machinery used in the business

✖



Any donation received for a specific purpose is a_________?


aLiability

✖


bAssets

✖


cRevenue receipts

✖


dCapital receipts

✓


View Answer Capital receipts

Capital expenditure is an expenditure which


aBenefits the current accounting period

✖


bWill benefit the next accounting period

✖


cResults in the acquisition of a permanent asset

✓


dResults in the acquisition of a current asset

✖



Which of the following should not be treated as revenue expenditure?


aInterest on loans and debentures

✖


bAnnual fire insurance premiums on Plant and Equipment

✖


cSales tax paid in connection with the purchase of office equipment

✓


dSmall expenditures on long- lived assets, such as ` 20 for a paper weight.

✖



Which of the following errors affects the agreement of a Trial Balance?


aMistake in balancing an account

✓


bOmitting to record a transaction entirely in the subsidiary books

✖


cRecording of a wrong entry in the subsidiary books

✖


dPosting an entry on the correct side but in the wrong account

✖



The accountant of Leo Ltd. recorded a payment by cheque to a creditor for supply of materials as 1,340.56. The bank recorded the cheque at its correct amount of 3,140.56. The Company has not passed any rectification entries and the error is not detected through the bank reconciliation. The impact of this error is


aThe Trial Balance will not agree

✖


bThe balance of creditors is understated

✖


cThe purchases are understated

✖


dThe favorable bank balance as per Pass Book is less than the Bank balance as per Cash book

✓



The beginnings inventory of the current year is overstated by 5,000 and closing inventory is overstated by 12,000. These errors will cause the net income for the current year by


a17,000 (overstated.

✖


b12,000 (understated.

✖


c7,000 (overstated.

✓


d7,000 (understated.

✖


View Answer 7,000 (overstated.

Purchase journal is kept to record_____________?


aAll purchases of goods

✖


bAll credit purchases of goods

✓


cAll credit purchases

✖


dNone of these

✖



Goto Page No.

Page 54 of 71

Alphabetical MCQs Categories
—

Here below You find all kind of categories of MCQs in alphabetical order.


"Comprehensive Collection of MCQs: Alphabetically Organized by Subject"
—

"Discover an extensive collection of multiple-choice questions (MCQs) neatly categorized by subject from A to Z. This resource is designed for anyone eager to explore various topics in a straightforward and organized manner. Whether you're a student preparing for exams, an educator seeking supplementary materials, or simply curious about different subjects, this compilation offers a convenient way to learn and assess your knowledge. With questions arranged alphabetically, navigation is effortless, allowing you to delve into subjects of interest at your own pace. Engage, learn, and expand your understanding with this accessible and comprehensive repository of MCQs!"


BolPakistan

bolpakistan.com.pk includes Job Mcqs and Pak Mcqs is the Top Largest Mcqs Forum in World, in which you can read Mcqs of All Subjects, PPSC test preparation, FPSC, NTS and PPSC PAST PAPERS, PPSC PAST MCQS. A Collection of Repeated MCQs for JOBs seekers.

Copyright © 2024, Designed & Developed by BolPakistan