Tag: Financial Accounting Mcq

(A) Drawings
(B) Bad debts
(C) Accrued expenses
(D) Reserve for discount on Sundry Creditors

(A) Provision for discount on debtors can be estimated only after computing the provision for doubtful debts
(B) All pre-received incomes under the cash system of accounting are current gains
(C) Cash balance on hand shows whether the business has earned Profit or Loss
(D) Capital expenditure should be shown in the books by debiting asset account and crediting supplier or cash account

(A) Net profit – Non-trading Profit – Depreciation and provision
(B) Gross Profit – Non-trading Profit + Depreciation and provision
(C) Net Profit + Depreciation and provision
(D) Gross Profit – Operational expenses

(A) Provision for doubtful debts represents the amount that cannot be collected
(B) Cash balance on hand shows whether the business has earned Profit or Loss
(C) Free samples received are business gains
(D) The WDV of an asset depreciated on the reducing balance method can never become zero

(A) Financial results of the concern for a period
(B) Financial position of the concern on a particular date
(C) Financial results of the concern on a particular date
(D) Cost of goods sold during the period

(A) Profit & Loss Account is prepared for a certain period and hence it is an interim statement
(B) Profit & Loss Account does not disclose the effect of non-financial items
(C) Net Profits are ascertained on the basis of current costs
(D) Net Profits as disclosed by P&L Account is not absolute

(A) Gross Profit+ Sales+ Direct expenses+ Purchases+ Closing stock = Opening stock
(B) Gross Profit+ Sales+ Direct expenses+ Purchases- Closing stock = Opening Stock
(C) Gross Profit + Opening Stock + Direct expenses + Purchases- Closing stock = Sales
(D) Gross Profit – Opening Stock + Direct expenses + Purchases +Closing stock = Sales

(A) Loss on sale of undertaking
(B) Debts considered bad and written off
(C) Liability arising from a breach of contract
(D) Director‘s remuneration