Top 250+ Solved Fundamentals of Accounting MCQ Questions Answer
Q. At the end of the year Bad Debts Recovered Account is
a. Debited to Debtors Account 4
b. Credited to Debtors Account
c. Credited to Profit & Loss Account
d. Debited to Profit & Loss Account
Q. As regards the accounting treatment, Legacy should be
a. treated as loss
b. capitalized
c. treated Revenue Expenses
d. treated Deferred Revenue
Q. Sales of 6,570 is recorded in the sales book as 6,750. Such Error is known as
a. Error of Principle
b. Error of Omission
c. Error of Commission
d. Compensating Error
Q. Provision for bad debt is made as per the
a. Entity concept
b. Conservatism concept
c. Cost concept
d. Going concern concept
Q. Capital expenditures are shown in the
a. Balance Sheet
b. Profit & Loss a/c
c. Trading a/c
d. Manufacturing a/c
Q. Import duty of raw material purchased is a
a. Revenue Expenditure
b. Capital Expenditure
c. Deferred Revenue Expenditure
d. None of the above
Q. Life Insurance Corporation Account is a
a. Nominal Account
b. Artificial Personal Account
c. Representative Personal Account
d. Real Account
Q. Goods taken from business for personal use by the proprietor should be credited to
a. Drawing a/c
b. Capital a/c
c. Sales a/c
d. Purchase a/c
Q. A cash book with discount and bank column is called as
a. Single Column Cash Book
b. Two Column Cash Book
c. Three Column Cash Book
d. Petty Cash Book
Q. The periodical total of Returns Inward Day Book is posted to 5
a. Debit of Sales Account
b. Debit of Sales Return Account
c. Credit of Sales Return Account
d. Debit of Debtors Account
Q. The process of transfer of entries from day book to ledger is called as
a. Balancing
b. Journal Posting
c. Transaction
d. Ledger Posting
Q. Which financial statement represents the a ccounting equation as – Assets = Liabilities +Owner’s equity?
a. Income Statement
b. Statement of Cash Flows
c. Balance Sheet
d. Either (A) or (B)
Q. The Depreciation Account is closed at the end of the year by transfer to the
a. General Reserve a/c
b. Profit and Loss a/c
c. Provision for Depreciation a/c
d. Fixed Asset a/c
Q. The original cost of the machine is 19,00,000; machine installation charges are 1,00,000; working life of the machine is 5 years and residual value is 40,000. If the depreciation is charged on Straight Line basis then 4th year’s depreciation will be:
a. 3,72,000
b. 4,00,000
c. 3,92,000
d. 3,52,000
Q. Whenever errors are noticed in the accounting records, they should be rectified.
a. at the time of preparation of Trial Balance.
b. without waiting the accounting year to end.
c. after the preparation of final accounts.
d. in the next accounting year.