Accounting MCQs

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The Balance Sheet gives information regarding the____________?

A.Financial position during a particular period

B.Results of operations for a particular period

C.Profit earning capacity for a particular period

D.Financial position as on a particular date

Submitted by: Academy of Pakistan

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Which of the following will be debited if a business purchases goods on credit?

A.Creditor

B.Purchases

C.Debtor

D.Cash

Submitted by: Academy of Pakistan

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Uncollected checks also referred as______________?

A.Uncredited checks

B.Outstanding checks

C.Unpresented checks

D.Bounced checks

Submitted by: Academy of Pakistan

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Which of the following is not a deferred revenue expenditure?

A.Preoperative expenses

B.Heavy advertising expenses to introduce a new product

C.Legal expenses incurred in defending a suit for breach of contract to supply goods

D.Expenses in connection with issue of equity shares

Submitted by: Academy of Pakistan

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Which of the following are/is a current asset?

A.Stock

B.Prepaid insurance

C.Sundry Debtors

D.All of A. B. and C. above

Submitted by: Academy of Pakistan

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A few errors committed in Ahhiwalia’s books of account are given below. State which errors would affect the Trial Balance.

A.c, d, f and h

B.c, d, e and h

C.c, d and f

D.a, c and g

Submitted by: Academy of Pakistan

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If debit balance is greater than creadit balance then the account blance will be__________?

A.Debit balance

B.Debit and credit balance

C.Cash balance

D.Credit balance

Submitted by: Academy of Pakistan

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Cash received for services rendered will______________?

A.Increase fixed assets and cash

B.Increase cash and liability

C.Increase equity and liability

D.Increase cash and equity

Submitted by: Academy of Pakistan

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Which of the following is not classified as inventory in the financial statements?

A.Advance payments made to suppliers for raw materials

B.Finished goods

C.Stores and spares

D.Work-in-process

Submitted by: Academy of Pakistan

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Double entry implies that

A.Recording two aspects of every transaction

B.Recording entries in Ledger account

C.Recording entries in journal

D.Recording every transaction in books

Submitted by: Academy of Pakistan

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Which of these is a Part of cash in hand?

A.Postage stamps

B.Cheque Deposited with Bank

C.B/R

D.B/R endorsed

Submitted by: Academy of Pakistan

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In accounting an Economic event is referred to as:

A.Transaction

B.Cash

C.Bank statement

D.Exchange of money

Submitted by: Academy of Pakistan

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Capital expenses are shown in___________?

A.Trading A/c

B.Balance Sheet

C.None of these

D.Profit and Loss A/c

Submitted by: Academy of Pakistan

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Which of the following accounts will be debited if the business’s owner withdraws cash from business for his personal use?

A.Stock

B.Cash

C.Business

D.Drawings

Submitted by: Academy of Pakistan

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Benefits of preparing Bank Reconciliation Statement includes___________?

A.It bring out any errors committed in preparation of Cash book / Bank Pass Book

B.Help know actual bank balance

C.Highlights under delay in clearance of cheques deposited but not credited

D.All the three

Submitted by: Academy of Pakistan

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