Top 250+ Solved Fundamentals of Accounting MCQ Questions Answer

From 31 to 45 of 225

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

  • c. Credited 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

  • b. capitalized

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

  • c. Error of Commission

Q. Provision for bad debt is made as per the

a. Entity concept

b. Conservatism concept

c. Cost concept

d. Going concern concept

  • b. Conservatism concept

Q. Capital expenditures are shown in the

a. Balance Sheet

b. Profit & Loss a/c

c. Trading a/c

d. Manufacturing a/c

  • a. Balance Sheet

Q. Import duty of raw material purchased is a

a. Revenue Expenditure

b. Capital Expenditure

c. Deferred Revenue Expenditure

d. None of the above

  • a. Revenue Expenditure

Q. Life Insurance Corporation Account is a

a. Nominal Account

b. Artificial Personal Account

c. Representative Personal Account

d. Real Account

  • b. Artificial Personal 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

  • 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

  • c. Three Column 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

  • b. Debit of Sales Return 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

  • 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)

  • c. Balance Sheet

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

  • b. Profit and Loss a/c

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.

  • b. without waiting the accounting year to end.
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