Accounting MCQs

A. Debit profit and loss account and deduct the provision from debtors
B. Credit profit & loss account and deduct the provision from debtors
C. Credit profit and loss account and add the provision to debtors
D. Debit profit & loss account and add the provision to debtors

A. The bad debt expense is not matched with the related sales
B. Revenue is overstated in the year of sales
C. It violates the matching principle of accounting
D. All of the above

A. Debtors a/c
B. Profit & loss a/c
C. Profit & loss adjustment a/c
D. Profit & loss appropriation a/c

A. General reserve a/c
B. Profit & loss a/c
C. Asset a/c
D. Capital reserve a/c

A. Selling expense
B. Direct labor
C. Factory overhead
D. Selling expenses & administrative expenses

A. Interest rate
B. Required rate of return
C. Nominal interest rate
D. All of the above

A. Balance sheet
B. Income statement
C. Common size income statement
D. All of the above

A. Prime cost
B. Explicit cost
C. Job order cost
D. Conversion cost

A. Debit provision for bad debts a/c and credit debtors a/c
B. Debit debtors a/c and credit provision for bad debts a/c
C. Debit provision for bad debts a/c and credit profit & loss a/c
D. Debit profit and loss a/c and credit provision for bad debts a/c.

A. Return outwords
B. Return inwards
C. Cost of goods sold
D. Carriage on sales