Accounting Mcqs

Page No. 57

Which of the following statements is/are true ?


aA sale of an asset is recorded in the Sales Book

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bTotal of Return Outward Book is debited to Return Outward Account

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cThe balance of Petty Cash Book is a liability

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dCash Book is a subsidiary book as well as a ledger

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Amount paid to Masood posted to the credit side of his account would affect___________?


aMasood’s account

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bCash account

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cCash account and Gagan’s account

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dNone of these

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View Answer Masood’s account

Total depreciation of an asset cannot exceed its:


aScrap value

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bResidual value

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cMarket value

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dDepreciable value

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View Answer Depreciable value

A chart of accounts generally start with which of the following types of accounts?


aAssets accounts

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bliability accounts

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cCash accounts

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dRevenue accounts

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View Answer Assets accounts

The first step in accounting process is___________?


aRecording the transaction

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bIdentifying the transaction

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cPosting the transaction

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dPreparing the source documents

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Discount for quick repayment of debt is normally referred as____________?


aTrade discount

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b Prompt payment discount

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cCash discount

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dBulk discount

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View Answer Cash discount

Which of the following accounts will be credited if a company purchases building for cash?


aCapital account

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bFixed assets account

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cBuilding account

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dCash account

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View Answer Cash account

In which of the following orders data is entered in journal?


aAlphabetical order

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bNumeric order

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cBullets order

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dChronological order

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View Answer Chronological order

The standard format of journal does not include which of the following?


aAssets column

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bDate column

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cDescription column

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dAmount column

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View Answer Assets column

Journals are also referred as_____________?


aBook of entries

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bBook of original entries

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cT account

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dBooks of economic event

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