Accounting MCQs

A. Benefits the current accounting period
B. Will benefit the next accounting period
C. Results in the acquisition of a permanent asset
D. Results in the acquisition of a current asset

A. Liability
B. Assets
C. Revenue receipts
D. Capital receipts

A. Research and development costs during the year
B. Interest on borrowed fund utilized for acquisition of office furniture
C. Installation charges paid in conjunction with the purchase of office equipment
D. Monthly rent of a machinery used in the business

A. Sales
B. Purchases
C. Inward returns
D. Closing stock

A. 1000 paid for the execution of a new plant
B. Loss of 10,000 incurred in increasing the sitting accommodation of a hotel
C. Damage paid on account of breach of a contract to supply certain goods
D. Repair to machinery purchased, second hand.

A. All the significant events after the balance sheet date
B. The events after balance sheet date but before submitting it to the registrar of companies
C. The events after balance sheet date but before its approval by the board
D. All changes after balance sheet date before its approval

A. Compensation paid to directors on termination of their services
B. Expenditure incurred in connection with the renewal of a trade mark.
C. Gratuities paid to directors on termination of their services.
D. Royalty paid in installments for the purchase of rights to manufacture and sell patient medicines.

A. Interest payable on loans or deferred credits taken for the acquisition or construction of fixed assets before they are ready for use
B. Stand by equipment and servicing equipment
C. Expenditure incurred on test runs and experimental production
D. Administration and general expenses

A. Errors of casting
B. Errors of carry forward
C. Errors of posting
D. All the three

A. Errors of complete omission
B. Errors of principle
C. Errors of posting to wrong account
D. All the three