Q. Whenever errors are noticed in the accounting records, they should be rectified.
✅ Correct Answer: (B)
without waiting the accounting year to end.
Fundamentals of Accounting MCQs and Notes
Q. The original cost of the machine is 19,00,000; machine installation charges are 1,00,000; working life of the machine is 5 years and residual value is 40,000. If the depreciation is charged on Straight Line basis then 4th year’s depreciation will be:
✅ Correct Answer: (C)
3,92,000
Q. The Depreciation Account is closed at the end of the year by transfer to the
✅ Correct Answer: (B)
Profit and Loss a/c
Q. The process of transfer of entries from day book to ledger is called as
✅ Correct Answer: (D)
Ledger Posting
Q. The periodical total of Returns Inward Day Book is posted to 5
✅ Correct Answer: (B)
Debit of Sales Return Account
Q. A cash book with discount and bank column is called as
✅ Correct Answer: (C)
Three Column Cash Book
Q. Goods taken from business for personal use by the proprietor should be credited to
✅ Correct Answer: (D)
Purchase a/c
Q. Life Insurance Corporation Account is a
✅ Correct Answer: (B)
Artificial Personal Account
Q. Import duty of raw material purchased is a
✅ Correct Answer: (A)
Revenue Expenditure
Q. Capital expenditures are shown in the
✅ Correct Answer: (A)
Balance Sheet