Accounting Mcqs

Page No. 7

Which of the following is the normal balance of an accumulated depreciation account?


aDebit balance

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bCredit balance

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cNil balance

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dNone of the above

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View Answer Credit balance

A company purchased a vehicle for Rs.6000. It will be used for 5 years and its residual value is expected to be Rs.1000. What is the annual amount of depreciation using straight line method of depreciation?


aRs. 1000

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bRs. 2000

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cRs. 3000

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dRs. 5000

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View Answer Rs. 1000

Under which depreciation method, the amount of depreciation expenses remains same throughout the life of the asset?


aStraight line method

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bReducing balance method

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cNumber of units produced method

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dMachine hours method

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View Answer Straight line method

What is depreciation?


aCost of a fixed asset

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bCost of a fixed asset's repair

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cThe residual value of a fixed asset

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dPortion of a fixed asset's cost consumed during the current accounting period

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A current asset that is convertible to cash within 3 months can be referred to as


aCash asset

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bOperating asset

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cIntangible assets

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dCash equivalent

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View Answer Cash equivalent

The expenses related to the main operations of a business are referred to as


aAdministration expense

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bNon-administration expense

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cSelling expense

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dOperating expense

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View Answer Operating expense

Current assets are also known as


aGross working capital

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bInvested capital

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cAssets

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dCash

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View Answer Gross working capital

Which of the following does not appear in Balance sheet?


aBuilding

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bCash

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cGoodwill

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dRent expenses

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View Answer Rent expenses

Goodwill is classified as which one of the following assets?


aFixed

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bLong term

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cCurrent

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dIntangible

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View Answer Intangible

Which of the following financial statements shows the movement of cash and cash equivalents during an accounting period?


aIncome statement

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bBalance sheet

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cCash flow statement

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dStatement of changes in equity

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View Answer Cash flow statement

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