Home › Quizzes › Accounting

Accounting

Accounting questions.

15 Questions Published
Play Quiz Practise this topic out loud

Questions

Question 1 Multiple Choice (Single Answer)

Which of the following means 'super profit ' ?

  1. Where the cost of goods sold exceeds the sales revenue.
  2. Where the sales revenue exceeds the cost of goods sold.
  3. Net profit less the opportunity costs of alternative earnings and alternative returns on capital invested that have been foregone.
  4. Where the cost of goods sold plus expenses is greater than the revenue.
  5. Where sales revenue plus other income, such as rent received, exceeds the sum of cost of goods sold plus other expenses.
Question 2 Multiple Choice (Single Answer)

____________ is an act of giving personal property or money such as stocks, bonds, jewellery and cash left excluding real estate to an individual or organization through a provision of will or estate plan.

  1. Devise
  2. Bequest
  3. Legacy
  4. Heirdom
  5. Patrimony
Question 3 Multiple Choice (Single Answer)

Which of the following entries come under journals?

  1. Opening entries
  2. Closing entries
  3. Transfer entries
  4. Adjustment entries
  5. All of these
Question 4 Multiple Choice (Single Answer)

According to which concept are shareholders treated as creditors, for the amount they paid on shares?

  1. Cost concept
  2. Duality concept
  3. Business entity concept
  4. Going concern concept
  5. Since shareholders are owner of the business they cannot be treated as creditors of a business.
Question 5 Multiple Choice (Single Answer)

Seigniorage is concerned with which of the following?

  1. Taking debt from public
  2. Increase in revenue by increasing the tax rates
  3. Earning profit by government by issuing currency
  4. Controlling non-developmental expenses
  5. None of these
Question 6 Multiple Choice (Single Answer)

Sohan and Mohan are partners in a firm. They admitted Salim into the partnership giving him fourth share in future profits. The new profit sharing ratio of all the partners will be ________.

  1. 3 : 1 : 2
  2. 3 : 3 : 2
  3. 3 : 3 : 3
  4. 3 : 2 : 1
  5. 1 : 2 : 2
Question 7 Multiple Choice (Single Answer)

When two or more companies liquidate to form a new company, what is this called?

  1. Venturing a new business
  2. Collaboration
  3. Reconstruction
  4. Amalgamation
  5. Absorption
Question 8 Multiple Choice (Single Answer)

A cash book showed an overdraft of Rs. 2000, but the pass book made up to the same date showed that cheque of Rs. 100, Rs. 75, Rs. 125, respectively were not been presented for payment and the cheque of Rs. 500, paid into the account had not been cleared. What would be the balance as per the pass book?

  1. Rs. 1200
  2. Rs. 1800
  3. Rs. 2200
  4. Rs. 800
  5. Rs. 2000
Question 9 Multiple Choice (Single Answer)

The original cost of a machinery is Rs. 4,15,000. The estimated life of an asset is 20 years and net scrap value is estimated to be Rs. 65,000. What will be the amount of depreciation to be charged every year? Use straight line method to calculate the answer.

  1. Rs. 20750
  2. Rs. 24000
  3. Rs. 17500
  4. Rs. 3250
  5. Rs. 128
Question 10 Multiple Choice (Single Answer)

A sales of Rs. 7800 to Raheem has been posted to Ramlal. Which of the following journal entries will correct this error?

  1. Debit Ramlal's account and credit Raheem's account with Rs. 15600.
  2. Debit Raheem's account and credit sales account with Rs. 7800.
  3. Debit Raheem's account and credit Ramlal's account with Rs. 7800.
  4. Debit sales account and credit Ramlal's account with Rs. 7800.
  5. None of the above entries will correct the error.
Question 11 Multiple Choice (Single Answer)

On which of the following purposes can securities premium amount be used by a company?

  1. To issue fully paid bonus shares to the members
  2. To write off preliminary expenses of the company
  3. To provide the premium payable on redemption of any preference share or debenture of the company
  4. To purchase its own share
  5. All the above
Question 12 Multiple Choice (Single Answer)

In case of dishonour of bills receivable what effect will it have on the current ratio?

  1. Decrease in current asset and increse in current liability with the same amount
  2. Nil effect
  3. Increase in current assets and increase in current liability with the same amount
  4. Decrease in current assets and decrease in current liability
  5. None of these
Question 13 Multiple Choice (Single Answer)

What is the meaning of the term limited liability partnership?

  1. Limited scope of partnership
  2. Unlimited liability of a partner
  3. Limited liability of some partners
  4. Limited number of partners
  5. Unlimited number of partners
Question 14 Multiple Choice (Single Answer)

Which of the following is meaning of fund based accounting?

  1. Process of producing information for external use usually in the form of financial statements.
  2. Produces information primarily for internal use by the company's management.
  3. An accounting system emphasizing accountability rather than profitability, used by non-profit organizations and governments.
  4. Refers to the type of accounting information system used in the public sector.
  5. Accounting for the tax related matters.
Question 15 Multiple Choice (Single Answer)

What are Interim Financial Statements?

  1. Financial statements which are made and presented for an accounting period of more than one year.
  2. Financial statements, which are made and presented for an accounting period of less than one year.
  3. Financial statements, which are made and presented for an a day.
  4. Financial statements, which are made and presented for an accounting period of one year.
  5. None of the above is correct
← Back to Quizzes