Financial Accounting MCQs and Notes

P

Praveen Singh • 36.81K Points
Coach

Q 1. Which of these is not a Business expense-

(A) Fire Insurance of other building ;

(B) LIC Premium of proprietor ;

(C) Interest on Capital

(D) Commission on sales

R

Ram Sharma • 193.86K Points
Coach

Q 2. When a person purchasing goods on credit he becomes a………….. in the books of the seller-

(A) Debtor ;

(B) Creditor ;

(C) Defaulter ;

(D) Offender

P

Priyanka Tomar • 35.28K Points
Coach

Q 3. The entry for creating a Provision for bad debts is

(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.

P

Priyanka Tomar • 35.28K Points
Coach

Q 4. Bad debts recovered account will be transferred to

(A) Debtor‘s Account

(B) Profit and Loss Account

(C) Provision for Doubtful Debt Account

(D) Either (b )or (c) above

G

Gopal Sharma • 38.32K Points
Coach

Q 5. —————— is also known as Appraisal system of depreciation

(A) Inventory system ;

(B) Survey system ;

(C) Annuity system ;

(D) Insurance

G

Gopal Sharma • 38.32K Points
Coach

Q 6. Schedule XIV of the Companies Act specifies —————— as minimum rate of depreciation (WDV) on ship fishing vessels

(A) 27% ;

(B) 33% ;

(C) 10% ;

(D) 15%

A

Admin • 36.94K Points
Coach

Q 7. Which of the following is not depreciated

(A) Building ;

(B) Land ;

(C) Plant and Machinery ;

(D) Office equipment

R

Ram Sharma • 193.86K Points
Coach

Q 8. Depreciation is a process of —

(A) Valuation of fixed assets ;

(B) Allocation of cost over the useful life of assets

(C) Generating funds replacements of the assets ;

(D) Avoidance of tax

R

Ranjeet • 34.60K Points
Instructor I

Q 9. Which of the following is an external cause of depreciation

(A) Routine repair and maintenance ;

(B) Misuse ;

(C) Obsolescence ;

(D) Wear and tear

V

Vinay • 28.75K Points
Instructor II

Q 10. Depreciation is calculated on the

(A) Cost price of asset ;

(B) Market price ;

(C) Cost+ Transport+ Installation expenses;

(D) Cost or market values whichever is less