Accounting MCQs / Q&A

A. Discount
B. Voucher
C. Allowance
D. Price

The concession received on the price of defective goods is called:

A. Discount
B. Cash discount
C. Allowance
D. Trading discount

Cash brought by the owner to start business is called__________?

A. Capital
B. Loan
C. Drawing
D. None of these

reduction in price is called:

A. Paid price
B. Invoice price
C. Book price
D. Discount

Sales return is also known as____________?

A. Return received
B. Return Payed
C. Return inward
D. Return outward

Return inwards refer to the goods returned to an organization by its customers. They are goods which were sold, but usually, because of being unsatisfactory, were returned back by the customers. They are also called the Sales returns.

The excess of current assets over current liabilities is called:

A. Working Capital
B. Circulating capital
C. Fixed capital
D. Trading capital

A. Merchandise return
B. Purchase return
C. Return inwards
D. Sales return

Cash discount is provided on _______________?

A. Purchases
B. Prompt payment
C. Sales
D. Sales return

The amount invested by the proprietor to start the business is called:

A. Capital
B. Business
C. Drawings
D. All of them

Obligation of the Business are known as___________?

A. Liabilities
B. Revenues
C. Expenses
D. Assets