(A) Cost Price
(B) Market Price
(C) Cost price or Market price whichever is higher
(D) Cost price or Market price whichever is lower
Tag: Financial Accounting Mcq
Which of the following is true regarding closing entries?
(A) They must be followed by reversing entries
(B) They transfer the balances in all of the Nominal Accounts to the Trading and Profit and Loss Account
(C) They must be made after the reversing entries but before the adjusting entries
(D) They must be made after the adjusting entries but before the reversing entries
Amount paid to Gagan posted to the credit side of his account would affect?
(A) Gagan’s account
(B) Cash account
(C) Cash account and Gagan’s account
(D) None of these
Total depreciation of an asset cannot exceed its:
(A) Scrap value
(B) Residual value
(C) Market value
(D) Depreciable value
In an account if debit side > credit side, the balance is known as the:
(A) Negative Balance
(B) Debit balance
(C) Positive Balance
(D) Credit balance
Which of the following is not a contingent liability?
(A) Claims against the company not acknowledged as debts
(B) Debts included on debtors which are doubtful in nature
(C) Uncalled liability on partly paid shares
(D) Arrears of cumulative fixed dividends
Which of the following is the example of contingencies?
(A) Compulsory acquisition of part of land of the company by the Government
(B) A suit filed by the employee against the company
(C) A debtor of the company is declared insolvent, resulting in bad debts to the company
(D) All of (a), (b) and (c) above.
Purchases made on credit not recorded at all would affect?
(A) Purchases account
(B) Supplier’s account
(C) Purchases account and supplier’s account
(D) None of these