Top 250+ Solved Fundamentals of Accounting MCQ Questions Answer
Q. An expenditure is capital in nature when
a. The receiver of the amount is going to treat it for the purchase of fixed assets.
b. It increases the quantity of fixed assets.
c. It is paid as interest on loans for the business.
d. It maintains of fixed asset.
Q. A withdrawal of cash from business by the proprietor should be credited to
a. Drawing Account
b. Capital Account
c. Cash Account
d. Purchase Account
Q. A sale of goods to Laxman for cash should be debited to
a. Laxman A/c
b. Cash A/c
c. Sales A/c
d. Capital A/c
Q. The debts written off earlier as bad, subsequently recovered are
a. Debited to profit and loss A/c
b. Credited to bad debt recovery A/c
c. Credited to trade receivable A/c
d. Credited to debtors A/c
Q. Which one of the following is an external cause for depreciation
a. Over use
b. Abnormal occurrence
c. Time element
d. Obsolescence
Q. On which of the following asset, depreciation is charged on ‘Depletion method’
a. Goodwill
b. Plant and Machinery
c. Land and Building
d. Wasting asset like mine and quarries
Q. If a sum of 1,500 received from Laxman (debtor) has not been recorded in the books, the
a. Profit would show an increase of 1,500
b. Profit would show a decrease of 1,500
c. Assets would show a decrease of 1,500
d. None of the above
Q. It goods worth 1,750 returned to suppler is wrongly entered in sales returned book as1,570 then
a. Gross profit will decrease by 3,320
b. Gross profit will decrease by 3,500
c. Gross profit will increase by 3,320
d. Net profit will decrease by 3,140
Q. Which of the following errors affects the agreement of a trial balance?
a. Mistake in balancing an account
b. Omitting to record a transaction entirely in the subsidiary books 12
c. Recording of a wrong entry in the subsidiary book
d. Posting an entry on the correct side but in the wrong account
Q. Difference in Bank Balance as per Pass book and Cash book may arise on account of
a. Cheque issued but not presented
b. Cheque issued but dishonoured
c. Cheque deposited not credited by bank
d. All of the above
Q. Which of these items are taken into consideration for preparation of adjusted cash book?
a. Mistake in cash book
b. Mistake in pass book
c. Cheque issued but not presented for payment
d. Cheque deposited but not cleared by bank
Q. Kasi draws a bi ll on Shyam for 5,000 and Kasi endorsed it to Ram. Ram endorese it toRahul. The payee of the bill will be
a. Kasi
b. Ram
c. Shyam
d. Rahul
Q. On receipt of goods from the consignor the consignee debits which of these accounts?
a. Purchase account
b. Goods account
c. Consignor account
d. None of the above