(A) Income and gain A/cs shows increase on credit side
(B) Expenses and losses A/cs shows reduction in balance on debit side
(C) Assets A/c can have credit balance also
(D) Debtors are the owing of the business
Tag: Financial Accounting Mcq
Under which method of depreciation annual depreciation goes on decreasing?
(A) Reducing balance method
(B) Straight line method
(C) Annuity method
(D) None
Narrations are usually given at the end of?
(A) Each journal entry
(B) Each page
(C) Each column
(D) Each account
When Bills Receivable is returned dishonoured by the drawee, which of these A/c is debited by the drawee?
(A) Drawer A/c
(B) Bank A/c
(C) BP A/c
(D) BR A/c
Over statement of sales may lead to?
(A) Over statement of profit of current year
(B) Over statements of profit of next year
(C) Under statement of profit of current year
(D) All the three
An increase in one liability may lead to?
(A) Increase in another asset
(B) Decrease in liability
(C) Both (a) and (b)
(D) Either (a) or (b)
As per the Companies Act, 1956 which of these are allowed to create secret reserves in their books of account?
(A) Banking Companies
(B) Insurance Companies
(C) Electricity Companies
(D) All the three
__ is a secret reserve usually created to provide for the loss by way of fluctuation in the value of investment.
(A) Investment Fluctuation Reserve
(B) Foreign Exchange Fluctuation Fund
(C) General Reserve
(D) Capital Reserve