Accounting Mcqs

Page No. 8

Assets minus liabilities equal to


aGoodwill

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bWorking capital

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cNet income

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dCapital

✓


View Answer Capital

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


aIncome statement

✓


bBalance sheet

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cCash flow statement

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dStatement of changes in equity

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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

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cCash flow statement

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dStatement of changes in equity

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View Answer Balance sheet

Purchases + opening stock - closing stock = ?


aAmount of sales

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bGross profit

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cCost of goods sold

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dNet income

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View Answer Cost of goods sold

Financial statements mainly help in


aAssumption of economic events

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bAnticipation of economic events

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cRecording of economic events

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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

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bFixed, intangible

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cTangible, intangible

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dFixed, current

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View Answer Fixed, current

In income statement, gross profit is always equal to


aSales - expenses

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bIncome - expenses

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cSales - cost of goods sold

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dSales - selling costs

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Net profit is computed in which of the following?


aBalance sheet

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bIncome statement

✓


cCash flow statement

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dStatement of changes in equity

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View Answer Income statement

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


aMatching concept

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bPrudence concept

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cTimeliness concept

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dReliability concept

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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

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bAccrual concept

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cPrudence concept

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dSubstance over form concept

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