Accountancy Quiz MCQ: Exam!

15 Questions | Total Attempts: 269

SettingsSettingsSettings
Accountancy Quiz MCQ: Exam! - Quiz

.


Questions and Answers
  • 1. 
    A company had a doubtful debt provision of £14,000 on 31 December 2008. Its trade receivables at 31 December 2009 were £198,200. The company considers that receivables totaling £12,200 will not be paid and in addition planned to make a doubtful debt provision for 10% of its net receivables on 31 December 2009. What is the charge for bad and doubtful debts in the income statement for the year ended 31 December 2009?
    • A. 

      £32,600

    • B. 

      £44,800

    • C. 

      £16,800

    • D. 

      £12,200

  • 2. 
    Which one of the following is not a real account?
    • A. 

      Machinery account

    • B. 

      Sales account

    • C. 

      Goodwill account

    • D. 

      Equipment account

  • 3. 
    In accounting equation (Assets = Liabilities + Owner’s equity), the liabilities means the claim of external creditors against:
    • A. 

      The profit of the business

    • B. 

      The assets of the business

    • C. 

      The revenue of the business

    • D. 

      The goodwill of the business

  • 4. 
    The obligations of an enterprise other than the owner's fund are known as
    • A. 

      Assets

    • B. 

      Liabilities

    • C. 

      Capital

    • D. 

      None of these

  • 5. 
    At the end of the financial year, Mr.Yagna earns a profit of Rs. 57,000 in his business. This is
    • A. 

      A transaction

    • B. 

      An event

    • C. 

      A transaction as well as an event

    • D. 

      Neither a transaction nor an event

  • 6. 
    As per basic accounting Equation Assets = Capital + Liabilities which of the following equation will be true if Suparshwa starts a business with Rs. 550000 and then buy goods worth Rs. 150000 from Neminath on credit?
    • A. 

      Rs. 700000 = Rs. 550000 + Rs. 150000

    • B. 

      Rs. 700000 = Rs. 650000 + Rs. 50000

    • C. 

      Rs. 550000 = Rs. 400000 + Rs. 150000

    • D. 

      Rs. 550000 = Rs. 700000 - Rs. 150000

  • 7. 
    Received Rs 20,000 from Kunthunath & Co., against receivable of Rs 21,000. Agreed to settle the account. This results in:
    • A. 

      Total assets increased by Rs. 20000 with the corresponding increase in expense Rs. 1000

    • B. 

      Total assets increased by Rs. 21000 with the corresponding increase in liability Rs. 1000

    • C. 

      Total assets decreased by Rs. 1000 with the corresponding increase in expense Rs. 1000

    • D. 

      Insufficient Information

  • 8. 
    The owner of a company included his personal medical expenses in the company's income statement. Indicate the principle that is violated.
    • A. 

      Cost principle

    • B. 

      Conservatism

    • C. 

      Disclosure

    • D. 

      Entity Concept

  • 9. 
    Which of the following is true, if the going concern concept is no longer valid for a company?
    • A. 

      All the prepaid expenses should be written off

    • B. 

      Land held as an investment would be valued at its net realizable value

    • C. 

      Total contributed capital and retained earnings would remain unchanged

    • D. 

      The bills receivable from debtors will be taken as zero

  • 10. 
    The Accounting Convention of Matching means:
    • A. 

      Profit for the period to be matched with sales revenue

    • B. 

      Profit for the period to be matched with investment

    • C. 

      Expenses of one period to be matched against the expenses of another period

    • D. 

      Expenses of one period to be matched against the revenue of the same period

  • 11. 
    Omission of paise and showing the round figures in financial statements is based on:
    • A. 

      Conservatism concept

    • B. 

      Consistency concept

    • C. 

      Materiality concept

    • D. 

      Realization concept

  • 12. 
    A firm has reported a profit of Rs. 147000 at the end of the financial year after taking into consideration the following amount i)    The cost of an asset of Rs. 23000 has been taken as an expense ii)    The partner anticipated a profit of Rs. 12000 on the future sale of a car shown as an asset in his books iii)   Salary of Rs. 7000 payable in the financial year has not been taken into account iv)   An asset of Rs. 85000 was purchased for Rs. 75000 and was recorded in the books as Rs. 85000 What is the correct amount of profit to be reported in the books?
    • A. 

      Rs. 147000

    • B. 

      Rs. 151000

    • C. 

      Rs. 163000

    • D. 

      Rs. 141000

  • 13. 
    A trader started a retail business. During the year he sold goods worth Rs. 60000 for Rs. 120000 out of which only Rs. 100000 was collected during the year. He had a closing stock of Rs. 10000. His other business expenses for the period were Rs. 20000 out of which Rs. 5000 was outstanding at year-end. His total profit for the year 2019-2020 as per the terms of the accrual concept was:
    • A. 

      Rs. 30000

    • B. 

      Rs. 40000

    • C. 

      Rs. 45000

    • D. 

      Rs. 20000

  • 14. 
    Opening stock Rs. 10000 Purchases      Rs. 110000 Closing stock Rs. 20000 Find out total sales if the profit margin is 30% on the cost of sales:
    • A. 

      Rs. 120000

    • B. 

      Rs. 130000

    • C. 

      Rs. 110000

    • D. 

      Rs. 125000

  • 15. 
    The __________ concept means that similar items in a set of accounts should be given similar accounting treatment and it should be applied for one period after another.
    • A. 

      Going concern

    • B. 

      Prudence

    • C. 

      Consistency

    • D. 

      Materiality

Back to Top Back to top