Basic Accounting 21

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Objective Questions and Answers of MBA: Basic Accounting 21

Subject: Objective Questions and Answers of MBA: Basic Accounting 21

Part 21: Objective questions and answers of Basic Accounting

 

Q1. Working Capital is a term meaning:

a) The total of Fixed Assets – Current Assets

b) The capital less drawings

c) The amount of capital invested by the proprietor

d) The excess of the current assets over the current liabilities

 

Q2. The Journal is:

a) Used when other journals have been mislaid

b) A supplement to the Cash Book

c) Not part of the double entry system

d) Part of the double entry system

 

Q3. In a Sales Ledger Control Account the Bad Debts written off should be shown in the account:

a) As a credit

b) As a debit

c) As a balance carried down

d) Both as a debit and as a credit

 

Q4. If it is required to maintain fixed capitals then the partners' shares of profits must be:

a) Credited to capital accounts

b) Debited to capital accounts

c) Debited to partners' current accounts

d) Credited to partners' current accounts

 

Q5. The costs of putting goods into a saleable condition should be charged to:

a) Trading account

b) Profit and loss account

c) Balance sheet

d) None of these

 

Q6. A credit balance of £200 on the cash columns of the cash book would mean:

a) We have £200 cash in hand

b) Someone has stolen £200 cash

c) We have spent £200 more than we have received

d) The bookkeeper has made a mistake

 

Q7. An alternative name for a Sales Journal is:

a) Sales Day Book

b) Sales Ledger

c) Sales Invoice

d) Daily Sales

 

Q8. In the trial balance the balance on the Provision for Depreciation Account is:

a) Not shown, as it is part of depreciation

b) Sometimes shown as a credit, sometimes as a debit

c) Shown as a credit item

d) Shown as a debit item

 

Q9. Which of these best describes a balance sheet?

a) A statement of assets

b) A listing of balances

c) An account proving the books balance

d) A record of closing entries

 

Q10. Goodwill account is related to ______________

a) Nominal account

b) Personal account

c) Real account

d) Tangible account

 

Q11. The statement sent along with purchase return is ______________

a) Credit note

b) Bills payable book

c) Debit note

d) Purchases return book

 

Q12. An example of revenue expenditure is ______________

a) Purchase of land

b) Salaries

c) Lease

d) Purchase of buildings

 

Q13. Summary of all balances is known as

a) Ledge

b) Journa

c) Subsidiary book

d) Trial Balance

 

Q14. Bills payable book is a ______________.

a) Subsidiary

b) Principal book

c) Ledger

d) Memorandum book

 

Q15. The distinction between capital and revenue is necessary for the preparation of

____________.

a) Fund flow statement

b) Receipts and payment account

c) Final accounts

d) Cash flow statement

 

Q16. A sale of goods to vidhya for cash should be debited to ______________.

a) Vidhya account

b) Cash account

c) Sale of goods accoun

d) Purchases account

 

Q17. Payment of compensation to a worker who has been discharged from service is a

______________.

a) Capital expenditure

b) Revenue expenditure

c) Deferred revenue expenditure

d) Partly capital expenditure

 

Q18. Wages paid to workers must be debited to ______________ account

a) Wages

b) Machinery

c) Factory expenses

d) Offices expenses

 

Q19. In a receipts and payments account the payments are recorded on the

______________side

a) Credit

b) Debit

c) Upper

d) Lower

 

Q20. Donations received by a non-profit organization are usually a ______________.

a) Revenue receipt

b) Capital receipt

c) Capital expenditure

d) Revenue expenditure

 

Part 21: Objective questions and answers of Basic Accounting

 

Q1. Answer d

 

Q2. Answer c

 

Q3. Answer a

 

Q4. Answer d

 

Q5. Answer a

 

Q6. Answer d

 

Q7. Answer a

 

Q8. Answer c

 

Q9. Answer b

 

Q10. Answer c

 

Q11. Answer a

 

Q12. Answer b

 

Q13. Answer d

 

Q14. Answer a

 

Q15. Answer b

 

Q16. Answer b

 

Q17. Answer b

 

Q18. Answer a

 

Q19. Answer a

 

Q20. Answer a

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