Tag: Financial Accounting Mcq

(A) Replacement cost – Accumulated Depreciation
(B) Historical cost – Salvage Value
(C) Historical cost – Depreciation portion thereof
(D) Original cost adjusted for general price-level changes

(A) General Reserve A/c
(B) Profit & Loss A/c
(C) Asset A/c
(D) Capital Reserve A/c

(A) The bad debt expense is not matched with the related sales
(B) Revenue is overstated in the year of sales
(C) It violates the matching principle of accounting
(D) All of the above

(A) Debtors A/c
(B) Profit & Loss A/c
(C) Profit & Loss Adjustment A/c
(D) Profit & Loss Appropriation A/c

(A) Debit Profit and Loss Account and deduct the provision from debtors
(B) Credit Profit & Loss Account and deduct the provision from debtors
(C) Credit Profit and Loss Account and add the provision to debtors
(D) Debit Profit & Loss Account and add the provision to debtors

(A) Provision for bad debts appears as a liability on the Balance Sheet
(B) The provision for bad debts is owed to the proprietor
(C) Bad debts could be less than the provision for bad debts
(D) Bad debts could exceed the provision for bad debts

(A) Written down to zero or its scrap value
(B) Shown in the Balance Sheet at its replacement cost
(C) Shown in the Balance Sheet at cost, but classified as a non-current asset
(D) Carried in the accounting records at cost until it is sold

(A) Credit balance of Provision for Bad Debts Account
(B) Debit balance of Provision for Bad Debts Account
(C) Debit balance of Bad Debts Account
(D) Debit balance of Discount on Debtors Account