Accounting Mcqs – (Management Sciences) MCQs Latest For FPSC, PPSC, NTS, KPPSC, SPSC & Other Tests
“ Accounting Mcqs “. Tab this page to check “Latest Accounting MCQs” for the preparation of competitive mcqs, FPSC mcqs, PPSC mcqs, SPSC mcqs, KPPSC mcqs, AJKPSC mcqs, BPSC mcqs, NTS mcqs, PTS mcqs, OTS mcqs, Atomic Energy mcqs, Pak Army mcqs, Pak Navy mcqs, CTS mcqs, ETEA mcqs and others. The most occurred mcqs of Accounting in past papers. Past papers of Accounting mcqs. Past papers of Accounting MCQs. Accounting Mcqs are the necessary part of any competitive / job related exams. The Accounting mcqs having specific numbers in any written test. It is therefore everyone have to learn / remember the related Accounting mcqs. The Important series of Accounting Mcqs are given below:
Computers taken on hire by a business for a period of twelve months should be classified as:___________?
A. Intangible assets
B. Current assets
C. Deferred revenue expenditure
D. Not an asset
Which of the following is not an intangible asset?
A. Franchise
B. Trade mark
C. Accounts Receivable
D. Secret Profit
Which of the following is a current liability?
A. Trademark
B. Prepaid expenses
C. Discount on issue of shares
D. Outstanding Salaries
Based on which of the following concepts, is Share Capital Account shown on the liabilities side of a Balance Sheet?
A. Business entity concept
B. Going concern concept
C. Money measurement concept
D. Matching concept
Which of the following is not a contingent liability?
A. Debts included in Sundry Debtors which are doubtful in nature
B. Arrears of fixed cumulative dividend
C. Claims against the company not acknowledged as debts
D. Uncalled liability on partly paid shares
Which of the following are current assets of a business?
i. Income received in advance
ii. Stock
iii. Debtors
iv. Pre-paid expenses
v. Accrued income
A. Both (ii) and (iii) above
B. Both (i) and (iv) above
C. (i),(ii) and (iii) above
D. (ii),(iii),(iv) and (v) above
Closing entries are generally passed:
A. After certification of accounts
B. At the time of closing the accounts
C. During the course of accounting period any time
D. At the time of opening new books of account
Closing stock appearing in the Trial Balance is shown in:
A. Profit and Loss A/c
B. Trading A/c and Balance Sheet
C. Balance Sheet only
D. Trading A/c only
Depreciation Account appearing in the Trial Balance is shown in:
A. Profit and Loss A/c
B. Deducted from the concerned assets A/c
C. Trading A/c
D. Shown on the liability side
Profit on sale of old plant is:___________?
A. In Profit and Loss Appropriation A/c
B. In Trading A/c
C. Profit and Loss A/c
D. Being a non operating item ignored
Carriage on goods purchased is shown in:___________?
A. Capitalized with work in progress
B. Profit and Loss A/c
C. Trading A/c
D. Shown in Balance Sheet
Which of these is not an operating income?
A. Bad debts recovered
B. Income from sale of trading goods
C. Interest on FDs
D. None
Riaz holds an average inventory of 36,000(CP) with an inventory turnover of 5 times. If the firm makes a gross profit of 25% on sales, find the total sales of the company.
A. 2,40,000
B. 2,00,000
C. 2,10,000
D. 1,80,000
From the following details what will be the partners commission? Net profit before charging partners commission 65,000. Partners commission @ 11% after charging such commission.
A. 6441
B. 7654
C. 5431
D. 9876
From the following details what will be the partners commission? Net profit before charging partners commission 65,000. Partners commission 11% before charging such commission
A. 5431
B. 6441
C. 7150
D. 5876
Arrangement of Balance Sheet in a logical order is known as __________?
A. Formatting Balance Sheet
B. Marshalling Balance Sheet
C. Dressing Balance Sheet
D. Make up of Balance Sheet
Find the value of opening stock from the following data. Purchases 1,50,000, Closing stock 30,000 Sales 2,20,000, Gross profit 40,000.
A. 55,000
B. 50,000
C. 60,000
D. 65,000
A Bill of Exchange is drawn on 1st April, 2018 payable after 3 months. The due date of the bill is?
A. 1st July,2018
B. 30th June,2018
C. 4th July,2018
D. 4th August,2018
When bill discounted with the bank is dishonored?
A. Acceptor‘s Account is debited in the books of drawer
B. Bank Account is debited in the books of drawer
C. Bills Receivable Account is credited in the books of drawer
D. Bills Payable Account is debited in the books of drawer
In the books of the drawer, the accounting treatment involved on receipt of a bill of exchange duly accepted by the drawee is?
i. Debit Bills Receivable Account
ii. Debit Drawee‘s Account
iii. Credit Drawee‘s Account
iv. Credit Sales Account
A. Both (ii) and (iv) above
B. Only (i) above
C. Both (i) and (iii) above
D. Both (i) and (iv) above
The noting charges levied on dishonour of an endorsed bill by the Notary Public are to be borne by
A. The holder of the bill
B. The person responsible for dishonour
C. The drawer of the bill
D. The endorser of the bill
The drawer of a trade bill passes relevant entries with regard to the transaction involved in it. But, in case of an accommodation bill, he passes an entry in addition to the usual entries. The additional entry so passed is with respect to
A. Payment of the bill on due date
B. Discounting of the bill with the bank
C. Remitting or receiving the amount
D. Sending the bill to bank for collection
Accounting Mcqs
Under which of the following situations, is journal entry not passed in the books of the drawer?
A. When a discounted bill is honoured by the drawer on the due date
B. When a bill is renewed at the request of the drawer
C. When a bill is sent to the bank for collection
D. When a debtor accepts a bill drawn by the drawer
Which of the following is not a feature of a promissory note?
A. It contains an unconditional promise to pay
B. It must be in writing
C. It is payable to the bearer
D. It must be signed by the maker
How many parties are generally found in a Bill of Exchange?
A. 2
B. 4
C. 3
D. 5
Negotiable Instrument Act was enacted in_________?
A. 1871
B. 1881
C. 1981
D. 2001
Which of these is not an essential feature of a bill of exchange?
A. Certainty of amount
B. Unconditional
C. In writing
D. Amount to be paid in foreign currency
A foreign bill of exchange is generally drawn up in___________?
A. Triplicate
B. Single
C. Duplicate
D. Quadruplicate
Which of these are not required in a promissory note?
A. Acceptance
B. Properly stamped
C. Unconditional promise to pay
D. Payment to be made legal currency
X draws a Bill of Exchange on Y for 10,000 on 1-1-2013 for 3 months. The due date of the bill will be_________?
A. 4-4-2013
B. 1-4-2013
C. 3-4-2013
D. 31-3-2013
Accommodation bills are generally for?
A. To help augment money supply
B. For mutual financial accommodation
C. Genuine trade reasons
D. All the three
A cash deposit made by business appears on the bank statement as _______ balance?
A. Expenses
B. Credit
C. Debit
D. Liability
A check returned by bank marked “NSF” means that:
A. Check has been forged
B. There are not sufficient funds in your account
C. Bank can’t verify your identity
D. Check can’t be cashed being illegal
Bank reconciliation statement is prepared by____________?
A. Accountant of the business
B. Controller of the bank
C. Manager of the business
D. Accountant of the bank
Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book?
A. Bank charges will be added to cash book balance
B. Bank charges will be debited in cash book
C. Bank charges will be credited in cash book
D. Bank charges need no adjustment in cash book
Favorable balance of cash book implies that
A. Bank overdraft
B. Debit balance of cash book
C. Credit balance of cash book
D. Adjusted balance of cash book
Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________ (prepared by business).
A. Cash payment journal
B. Cash receipt journal
C. Cash book
D. Financial statements
In the Bank reconciliation statement “Deposit in transit” is usually:
A. Added to Cash book balance
B. Added to bank balance
C. Subtracted from bank balance
D. Subtracted from cash book balance
Unpresented checks also referred as____________?
A. Uncredited checks
B. Uncollected checks
C. Outstanding checks
D. Bounced checks
A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the gross amount in cash book. What should be the adjustment in cash to work out the correct balance of cash book?
A. $4000 will be debited in cash book
B. $2000 will be credited in cash book
C. $2000 will be debited in cash book
D. $4000 will be credited in the cash book
Standing orders are ________
A. Credited in the cash book
B. Entered in the bank statement
C. Debited in the cash book
D. Entered in the petty cash balance
Uncollected checks also referred as______________?
A. Outstanding checks
B. Uncredited checks
C. Unpresented checks
D. Bounced checks
___________ are checks that are issued by the business but not yet presented to bank
A. Uncredited checks
B. Uncollected checks
C. Outstanding checks
D. Bounced checks
Bank sent debit advice of $500 to company being interest on overdraft. It wasn’t entered in cash book. Identify the correct adjustment in cash book.
A. Non-adjustable
B. $500 will be credited
C. $500 will be debited
D. $1000 will be subtracted
In bank reconciliation statement the amount of outstanding checks is added to ________ balance of cash book.
A. Adjusted
B. Understated
C. Unadjusted
D. Overstated
Which of the following error results in unadjusted cash book balance?
A. Outstanding checks
B. Deposit in transit
C. Unpresented checks
D. Omission of Bank charges
_________ Checks that are presented to bank but not yet credited by the bank.
A. Outstanding checks
B. Uncredited checks
C. Unpresented checks
D. Bounced checks
Favorable balance of bank statement implies that
A. Credit balance
B. Bank overdraft
C. Debit balance
D. Adjusted balance
Balance as per cash book(adjusted.=$1000, Unpresented checks=$2000, Uncredited checks=$500, Deposit in transit=$500. Compute the balance as per bank statement.
A. $2000
B. $3000
C. Zero
D. $2500
A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book
A. $2000 will be deducted from cash book balance
B. $1000 will be added to cash book balance
C. $3000 will be added to cash book balance
D. $3000 will be subtracted from cash book balance
$5000 deposited in bank account was entered twice in the cash book. Identify the correct adjustment in cash book.
A. $5000 will be credited
B. $10,000 will be credited
C. $5000 will be debited
D. $10,000 will be debited
An entry which is made on both sides of a cash book is called__________?
A. Payment entry
B. Contra entry
C. Cash entry
D. Compound entry
Cash book records:______________?
A. Cash receipts
B. Cash payments
C. Cash payments and cash receipts
D. Neither cash payments nor cash receipts
Cash book is prepared by____________?
A. Manager of a company
B. Accountant of business
C. Bank
D. Bank’s cashier
Discount received is recorded on which of the following side of a cash book?
A. Incomes
B. Payments
C. Receipts
D. Expenditures
The closing balance of petty cash book is considered as_________?
A. Expenses
B. Asset
C. Liability
D. Income
A credit balance in cash book indicates?
A. Cash at bank
B. Bank balance
C. Bank overdraft
D. Bank underdraft
Petty cash fund is supposed to be replenished?
A. Every year
B. Every half year
C. Every day
D. At the end of every accounting period
Postdated checks are considered as__________?
A. Bank balance
B. Cash
C. Accounts receivable
D. Cash reserve
Which of the following is generally not the party to a check?
A. Payer
B. Payee
C. Bank
D. Seller
Cash book with cash and discount column is mostly referred as________?
A. Three column cash book
B. Two column cash book
C. Simple cash book
D. Petty cash book
A simple or one column cash book usually has which of the following main columns?
A. Payments
B. Bank
C. Discount
D. Cash
Purchase of office equipment for cash will be recorded on which of the following sides of a cash book?
A. Incomes
B. Payments
C. Receipts
D. Expenditures
Postage stamps on hand are considered as_________?
A. Accounts receivable
B. Prepaid expenses
C. Bank
D. Creditor
A cash book that is used to record the small payments of cash is generally referred as_________?
A. Two column cash book
B. Simple cash book
C. Three column cash book
D. Petty cash book
Drawings by owner of business are generally recorded on which of the following side of a cash book?
A. Incomes
B. Payments
C. Receipts
D. Expenditures
Payment of rent expenses is recorded on which side of cash book?
A. Income
B. Payments
C. Receipts
D. Expense
Cash discount is allowed on _______ repayment of debt.
A. Actual
B. Prompt
C. Lump sum
D. None of them
Introduction capital by owner of business is recorded on which side of a cash book?
A. Receipts
B. Incomes
C. Payments
D. Expenditures
A cash book with cash, bank and discount column is commonly referred as________?
A. Two columns cash book
B. Cash book
C. Three columns cash book
D. Petty cash book
The most common imprest system is the ________ system?
A. Petty cash
B. Cash receipt
C. Cash book
D. Discount
Which English alphabet is similar to the shape of an account?
A. H
B. T
C. I
D. None
When production is equal to sales, which of the following is TRUE?
A. No change occurs to inventories for either use absorption costing or variable costing methods
B. The use of absorption costing produces a lower net income than the use of variable costing
C. The use of absorption costing produces a higher net income than the use of variable costing
D. The use of absorption costing causes inventory value to increase more than they would though the use of variable costing
An average cost is also known as________?
A. Total cost
B. Unit cost
C. Variable cost
D. Fixed cost
Costs that change in response to alternative courses of action are called___________?
A. Target costs
B. Differential costs
C. Relevant costs
D. Sunk costs
The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?
A. Variable cost
B. Direct cost
C. Commercial cost
D. Conversion cost
Consider the following data for a company during the month of June 2012 Budgeted hours 4,000 Standard hours for actual production 4,400 Maximum possible hours in the budget period 4,800 Actual hours 3,800 The activity ratio of the company during the month is
A. 111%
B. 95%
C. 120%
D. 117%
Which of the following bases is not appropriate for apportionment of Transport department‘s cost ?
A. Truck Mileage
B. Crane value
C. Crane hours
D. Truck value
The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of :
A. Avoidable cost
B. Sunk cost
C. Uncontrollable cost
D. Opportunity cost
Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?
A. 5,80,000
B. 5,00,000
C. 5,50,000
D. 5,75,000
If the asset turnover and profit margin of a company are 1.85 and 0.35 respectively, the return on investment is.
A. 0.65
B. 1.50
C. 0.35
D. 5.29
A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be
A. 38.25
B. 37.50
C. 24.00
D. 35.00
Consider the following data pertaining to the production of a company for a particular month :
Opening stock of raw material 11,570
Closing stock of raw material 10,380
Purchase of raw material during the month 1,28,450
Total manufacturing cost charged to product 3,39,165
Factory overheads are applied at the rate of 45% of direct labour cost.
The amount of factory overheads applied to production is
A. 65,025
B. 95,020
C. 94,287
D. 1,52,624
If the minimum stock level and average stock level of raw material are 4,000 and 9,000 units respectively, find out its reorder quantity.
A. 11,000 units
B. 8,000 units
C. 10,000 units
D. 9,000 units
A worker has a time rate of 15/hr. He makes 720 units of component (standard time : 5 minutes/ unit) in a week of 48 hours. His total wages including Rowan bonus for the week is
A. 820
B. 792
C. 840
D. 864
One of the most important tools in cost planning is__________?
A. Cost Sheet
B. Direct cost
C. Budget
D. Marginal Costing.
A Ltd. Has sales of 2,200, total fixed cost of 570, variable cost of 1,540, raw material consumed of ` 1,100, number of units sold 22,000. What shall be the BEP 9 in units) if raw material price is reduced by 2%?
A. 18,387
B. 18,750
C. 18,560
D. 19,000
Find the cost of goods sold if goods are sold for 2,000 at 25% profit on cost?
A. 1,000
B. 1,500
C. 1,600
D. 1,800
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