Tag: Financial Accounting Mcq

(A) Expenses in connection with issue of equity shares
(B) Preoperative expenses
(C) Heavy advertising expenses to introduce a new product
(D) Legal expenses incurred in defending a suit for breach of contract to supply goods

(A) Benefits the current accounting period
(B) Will benefit the next accounting period
(C) Results in the acquisition of a permanent asset
(D) Results in the acquisition of a current asset

(A) All purchases of goods
(B) All credit purchases of goods
(C) All credit purchases;
(D) None of these

(A) Errors which affect one account can be errors of posting
(B) Errors of omission arise when any transaction is left to be recorded
(C) Errors of carry forward from one year to another year affect both Personal and Real A/c
(D) Errors of commission arise when any transaction is recorded in a fundamentally incorrect manner

(A) The Trial Balance is prepared after preparing the Profit and Loss Account
(B) The Trial Balance shows only balances of Assets and Liabilities
(C) The Trial Balance shows only nominal account balances
(D) The Trial Balance has no statutory importance from the point of view of law

(A) Add income received in advance to respective income and show it as a liability
(B) Deduct income received in advance from respective income and show it as a liability
(C) Add income received in advance to respective income and show it as asset
(D) Deduct income received in advance from respective income and show it as an asset in the Balance Sheet

(A) If a Trial Balance tallies, it always means that none of the transactions has been completely omitted
(B) A Trial Balance will not tally if a transaction is omitted
(C) A customer to whom goods have been sold on credit cannot avail himself of a cash discount
(D) A credit balance in the Pass Book indicates excess of deposits over withdrawals

(A) It is already adjusted in the opening stock
(B) It is adjusted in the Purchase A/c
(C) It is adjusted in the Cost of Sale A/c
(D) t is adjusted in the Profit &Loss A/c