Accounting Mcqs

Page No. 8

Assets minus liabilities equal to


aGoodwill


bWorking capital


cNet income


dCapital


View Answer Capital

Which of the following financial reports shows the profitability of a business?


aIncome statement


bBalance sheet


cCash flow statement


dStatement of changes in equity


View Answer Income statement

Which of the following financial statements shows the financial position of a business at a specific date?


aBalance sheet


bIncome statement


cCash flow statement


dStatement of changes in equity


View Answer Balance sheet

Purchases + opening stock - closing stock = ?


aAmount of sales


bGross profit


cCost of goods sold


dNet income


View Answer Cost of goods sold

Financial statements mainly help in


aAssumption of economic events


bAnticipation of economic events


cRecording of economic events


dCommunication of economic events



Office equipment is a ______ asset for a computer manufacturer and the same office equipment is a ____ asset for a company that deals in these equipments


aCurrent, fixed


bFixed, intangible


cTangible, intangible


dFixed, current


View Answer Fixed, current

In income statement, gross profit is always equal to


aSales - expenses


bIncome - expenses


cSales - cost of goods sold


dSales - selling costs



Net profit is computed in which of the following?


aBalance sheet


bIncome statement


cCash flow statement


dStatement of changes in equity


View Answer Income statement

Depreciation is charged on fixed assets to comply with which of the following accounting principle?


aMatching concept


bPrudence concept


cTimeliness concept


dReliability concept


View Answer Matching concept

Land on lease should be shown in Balance sheet contrary to the fact that the company does not own that piece of land is the implementation of which accounting concept?


aMatching concept


bAccrual concept


cPrudence concept


dSubstance over form concept



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