(A) Decreases the Total Assets
(B) Increases the Total Assets
(C) Results in no change in the Total Assets
(D) Increases the Total Liabilities
Tag: Financial Accounting Mcqs
Which of the following is an example of Personal Account?
(A) Machinery
(B) Rent
(C) Cash
(D) Creditor
Which of the following concepts assumes that a business will last indefinitely?
(A) Business Entity
(B) Going Concern
(C) Periodicity
(D) Consistency
Ledger contains various __ in it.
(A) Transactions
(B) Entries
(C) Accounts
(D) None of these
In the creditors control account, all of the below exist except?
(A) Credit purchases
(B) Purchase returns
(C) Cash purchases
(D) Cash/cheques paid
Which of the following is an example of Capital Expenditure?
(A) Insurance Premium
(B) Taxes and Legal expenses
(C) Discount allowed
(D) Customs duty on Import of Machinery
The expenses and incomes pertaining to full trading period are taken to the Profit and Loss Account of a business, irrespective of their payment or receipt. This is in recognition of?
(A) Time period Concept
(B) Going Concern Concept
(C) Accrual Concept
(D) Duality Concept
Which of the following statements is true?
(A) Going Concern Concept assumes that business will be carried on for a definite period
(B) The Capital Losses need not be deducted to ascertain net income
(C) Provision for bad and doubtful debts is created in recognition of conservatism concept
(D) Materiality concept states that all business transactions are to be recorded however insignificant they may be