Accounting Practice MCQs CS Set 13

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(6) When goods are given away as charity or free samples, the purchases account should be:

(a) Debited

(b) Credited

(c) Recorded in balance sheet

(d) None of these

Answer. (b)

(7) The sale of a business asset on credit is recorded in:

(a) Sales journal

(b) General journal

(c) Cash receipt journal

(d) None of these

Answer. (b)

(8) The discount account is a:

(a) Personal account

(b) Real account

(c) Nominal account

(d) Asset account

(e) None of these

Answer. (c)

(9) The payment side of the cash book is under cost by Rs. 200 when overdraft as per bank statement is the starting point:

(a) Rs 200 will be deducted

(b) Rs 200 will be added

(c) Rs 400 will be added

(d) Rs 400 will be deducted

Answer. (b)

(10) All the direct expenses are charged to:

(a) Balance sheet

(b) Profit and Loss account

(c) Trading account

(d) None of these

Answer. (c)

(11) Those liabilities which arise only on the happening of some event, are called:

(a) Current liabilities

(b) Contingent liabilities

(c) Outstanding liabilities

(d) Fixed liabilities

Answer. (b)

(12) Marshalling of balance sheet means:

(a) The ordering of its assets and liabilities

(b) The totaling of its assets and liabilities

(c) Excess of assets over liabilities

(d) None of these

Answer. (a)

(13) Commission received in advance is to be considered as:

(a) Outstanding expense

(b) Accrued income

(c) Prepaid expense

(d) Unearned income

Answer. (d)

(14) The provision for discount on creditors is often not provided in keeping with the principle of:

(a) Materiality

(b) Consistency

(c) Conservatism

(d) Realization

Answer. (c)

(15) Which one of the following is not considered the permanent part of the accounting record:

(a) Journal

(b) Trial Balance

(c) Balance sheet

(d) Final accounts

Answer. (b)

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