Q. The amount payable to a person as consideration for the use of rights vested in him is
✅ Correct Answer: (B)
Royalty
Financial Accounting MCQs and Notes
Q. Which of the following methods is not a practical way of realizing revenue?
✅ Correct Answer: (D)
Moving average method
Q. A few errors committed in Ahhiwalia's books of account are given below. State which errors would affect the Trial Balance.
(a) Sales of `950 to Ram completely omitted from books of account
(b) Purchases of `720 from Shyam entered in the purchases journal as `700
(c) Purchases Journal is overcast by `1,000
(d) Sales returns journal is undercast by `200
(e) Amount paid to Agarwal wrongly posted to the debit to Mittal's account
(f) Bank overdraft shown under debit column in the Trial Balance
(g) Sales of `500 to Sadiq entered in sales journal as sales to Mushtaq
(h) Wages paid for installation of machinery debited to wages account
(a) Sales of `950 to Ram completely omitted from books of account
(b) Purchases of `720 from Shyam entered in the purchases journal as `700
(c) Purchases Journal is overcast by `1,000
(d) Sales returns journal is undercast by `200
(e) Amount paid to Agarwal wrongly posted to the debit to Mittal's account
(f) Bank overdraft shown under debit column in the Trial Balance
(g) Sales of `500 to Sadiq entered in sales journal as sales to Mushtaq
(h) Wages paid for installation of machinery debited to wages account
✅ Correct Answer: (B)
c, d and f
Q. Which of the following assets is/are to be valued at the lower of cost and net realizable value?
✅ Correct Answer: (B)
Inventories
Q. Closing stock is generally valued at
✅ Correct Answer: (D)
Cost price or Market price whichever is lower
Q. Which of the following is true regarding closing entries?
✅ Correct Answer: (D)
They must be made after the adjusting entries but before the reversing entries
Q. Which of the following statements is/are true ?
✅ Correct Answer: (D)
Cash Book is a subsidiary book as well as a ledger
Q. Amount paid to Gagan posted to the credit side of his account would affect
✅ Correct Answer: (A)
Gagan's account ;
Q. Total depreciation of an asset cannot exceed its:
✅ Correct Answer: (D)
Depreciable value
Q. In an account if debit side > credit side, the balance is known as the:
✅ Correct Answer: (B)
Debit balance ;