Accounting MCQs with Explanations

Explanation

Budget is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Contingent assets is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Assets-Liabilities=Capital is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Expenses is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Business operations is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Direct cost incurred can be identified with each unit of output. Direct costs (such as for labor, material, fuel or power) vary with the rate of output but are uniform for each unit of production, and are usually under the control and responsibility of the department manager.

Explanation

Profit & Loss Account is prepared for a certain period and hence it is an interim statement is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Statement of financial position is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Written down value is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

D. A credit balance in the Pass Book implies a favourable balance indicates excess of deposits over withdrawals and a debit balance in the Pass Book implies unfavorable balance i.e., a overdraft. Hence statement D. is the true statement.