Fundamentals of Accounting MCQs and Notes

R

Rakesh Kumar • 28.44K Points
Instructor II

Q 31. Decrease in the amount of creditors results in

(A) Increase in assets

(B) Increase in cash

(C) Decrease in cash

(D) No change in assets

G

Gopal Sharma • 38.32K Points
Coach

Q 32. The determination of expenses for an accounting period is based on the concept of 3

(A) Consistency concept

(B) Periodicity concept

(C) Timelines concept

(D) Industry practice

V

Vinay • 28.75K Points
Instructor II

Q 33. A debit note issued to a creditor for goods returned is to be recorded in the

(A) Purchase return book

(B) Journal Proper

(C) Purchase book

(D) Bill Receivable book

G

Gopal Sharma • 38.32K Points
Coach

Q 34. Trade discount is allowed at the time of sale of goods.

(A) is recorded in sales book

(B) is recorded in cash book

(C) is not recorded in books of accounts

(D) is recorded in journal

S

Shiva Ram • 30.44K Points
Instructor I

Q 35. In case of depreciable assets are revalued, the provision for depreciation is based on

(A) Market value of the assets

(B) Historical cost of the asset

(C) Written down value of the asset

(D) the revalued amount over the estimate of the remaining useful life of such asset.

R

Ram Sharma • 193.84K Points
Coach

Q 36. Which of the following error is an error of principle?

(A) 4,000 received from Sham credited to Shamu a/c

(B) 5,000 incurred on installation of new plant debited to salary a/c

(C) 6,000 paid for wages debited to salary a/c

(D) 7,000 being purchase of raw material debited to purchase a/c

V

Vijay Sangwan • 28.62K Points
Instructor II

Q 37. Which of these errors affects only one account?

(A) Error of casting

(B) Error of posting

(C) Error of carry forward

(D) All of the above

V

Vinay • 28.75K Points
Instructor II

Q 38. In a overdraft balance as per cash book, a cheque of 1,250 deposited into bank but not recorded in cash book will be

(A) deducted by 1,250

(B) added by 1,250

(C) added by 2,500

(D) deducted by 2,500

P

Praveen Singh • 36.71K Points
Coach

Q 39. Which one of these documents is not required for bank reconciliation?

(A) Bank Column of cash book

(B) Bank pass book

(C) Previous year’s balance sheet

(D) Bank statement

V

Vijay Sangwan • 28.62K Points
Instructor II

Q 40. Retirement of bill means

(A) sending the bill for collection

(B) cancellation of the bill

(C) endorsing the bill in favour of third party

(D) making payment before the due date.