Accounts Questions Test Quiz! Trivia

50 Questions | Total Attempts: 5515

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Accounts Questions Test Quiz! Trivia

Do you know how to answer accounts questions? Would you be able to pass this quiz? According to this quiz, you must be aware of where bills payable is shown, what is considered an asset, what is a liability, what is the meaning of purchases, what is capital expenditure, what is depreciation, what is gross profit, and what is the owner of consignment stock. This quiz is all about accounts. Procure your certificate when you are finished.


Questions and Answers
  • 1. 
    Bills Payable A/c is shown in the balance sheet under the head.
    • A. 

      Provision

    • B. 

      Reserves & Surplus

    • C. 

      Secured loans

    • D. 

      Current liabilities

  • 2. 
    Which of the following is not an asset?
    • A. 

      Buildings

    • B. 

      Debtors

    • C. 

      Loan from Harish

    • D. 

      Cash balance

  • 3. 
    Which of the following is a liability?
    • A. 

      Creditors for goods

    • B. 

      Cash at Bank

    • C. 

      Machinery

    • D. 

      Motor Vehicles

  • 4. 
    Which of the following best describes the meaning of ‘Purchases’?
    • A. 

      Items bought

    • B. 

      Goods bought on credit

    • C. 

      Goods paid for

    • D. 

      Goods bought for resale

  • 5. 
    Which of the following is correct?
    • A. 

      Profit reduces capital

    • B. 

      Profit does not alter capital

    • C. 

      Profit increases capital

    • D. 

      Capital can only come from profit

  • 6. 
    Is it true that the trial balance totals should agree?
    • A. 

      No, there are sometimes good reasons why they differ

    • B. 

      Yes, always

    • C. 

      Yes, except where the trial balance is extracted at the year end

    • D. 

      No, because it is not a balance sheet

  • 7. 
    Capital Expenditure is:
    • A. 

      Money spent on selling fixed assets

    • B. 

      Money spent on buying fixed assets or adding value to them

    • C. 

      The costs of running the business on a day-to-day basis

    • D. 

      The extra capital paid in by the proprietor

  • 8. 
    Depreciation is:
    • A. 

      The salvage value of a fixed asset

    • B. 

      The amount of money spent in replacing assets

    • C. 

      The amount spent to buy a fixed asset

    • D. 

      The part of the cost of the fixed asset consumed during its period of use by the firm

  • 9. 
    Which of the following should not be called ‘Sales’?
    • A. 

      Goods sold on credit

    • B. 

      Goods sold for cash

    • C. 

      Sale of item previously included in ‘Purchases’

    • D. 

      Office fixtures sold

  • 10. 
    Which of the following best describes a trial balance?
    • A. 

      It is a list of closing balances

    • B. 

      It is a special account

    • C. 

      Shows all the entries in the books

    • D. 

      Shows the financial position of a business

  • 11. 
    Gross profit is:
    • A. 

      Cost of goods sold + Opening stock

    • B. 

      Sales less Purchases

    • C. 

      Net profit less expenses of the period

    • D. 

      Excess of sales over cost of goods sold

  • 12. 
    Net profit is calculated in the:
    • A. 

      Profit and loss account

    • B. 

      Balance sheet

    • C. 

      Trading account

    • D. 

      Trial balance

  • 13. 
    Provision for discount on debtors is calculated on the amount of debtors
    • A. 

      Before deducting provision for doubtful debts

    • B. 

      After deducting provision for doubtful debts

    • C. 

      Before deducting actual debts and provision for doubtful debts

    • D. 

      After adding actual bad and doubtful debts

  • 14. 
    Carriage inwards is charged to the trading account because:
    • A. 

      It is an expense connected with buying goods

    • B. 

      It should not go in the balance sheet

    • C. 

      Carriage outwards goes in the profit and loss account

    • D. 

      It is not part of motor expenses

  • 15. 
    Which of the following should be charged in the Profit and Loss Account?
    • A. 

      Direct materials

    • B. 

      Carriage on raw materials

    • C. 

      Closing Stock

    • D. 

      Office rent

  • 16. 
    Profit or Loss on the sale of fixed assets is transferred to
    • A. 

      Revaluation A/C

    • B. 

      Capital A/c

    • C. 

      Profit & Loss A/c

    • D. 

      Capital Reserve A/c

  • 17. 
    Which of these best describes fixed assets?
    • A. 

      Expensive items bought for the business

    • B. 

      Items which will not wear out quickly

    • C. 

      Are bought to be used in the business

    • D. 

      Are of long life and are not bought specifically for resale

  • 18. 
    XYZ Ltd has a house of 3 years old. It is used as guest house. It incurred an expenditure of Rs 2.5 lakhs for its repairs. The nature of this expense is
    • A. 

      Capital Expenditure

    • B. 

      Revenue Expenditure

    • C. 

      Deferred Revenue Expenditure

    • D. 

      None of these

  • 19. 
    Which of the following is incorrect?
    • A. 

      Good will → intangible asset

    • B. 

      Sundry debtors → current asset

    • C. 

      Loose tools → tangible fixed asset

    • D. 

      Outstanding expenses → current asset

  • 20. 
    In case of Reducing Balance Method depreciation is calculated on
    • A. 

      Original Cost

    • B. 

      Original Cost – Depreciation

    • C. 

      Market value

    • D. 

      Written Down Value

  • 21. 
     If you want to make sure that your money will be safe if cheques sent are lost in the post, you should:
    • A. 

      Cross your cheques ‘Account Payee only, Not Negotiable’

    • B. 

      Not use the postal service in future

    • C. 

      Always pay by cash

    • D. 

      Always take the money in person

  • 22. 
    Prepaid expenses of Rs.1000/- shown in the trial balance will appear in
    • A. 

      Liabilities side of balance sheet

    • B. 

      Debit Side of P & L A/c

    • C. 

      Debit Side of P & L Appropriation A/c

    • D. 

      Assets side of Balance Sheet

  • 23. 
    ‘Posting’ the transactions in bookkeeping means:
    • A. 

      Making the first entry of a double entry transaction

    • B. 

      Making the second entry of a double entry transaction

    • C. 

      Entering items in a cash book

    • D. 

      Something other than the above

  • 24. 
    Which of the following expenses will not be included in the acquisition cost of plant?
    • A. 

      Purchase price of plant

    • B. 

      Installation expenses

    • C. 

      Annual maintenance charges

    • D. 

      Delivery charges

  • 25. 
    The owner of the consignment stock is
    • A. 

      Consignor

    • B. 

      Consignee

    • C. 

      Debtors

    • D. 

      None

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