Accounts Questions Test Quiz! Trivia

50 Questions | Total Attempts: 1801

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Accounts Questions Test Quiz! Trivia

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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. 
    • 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