MCQs / Q&A

Which of the following is a Real A/c?

A. Salary A/c
B. Bank A/c
C. Building A/c
D. Goodwill A/c

Petty cash balance is a/an___________?

A. Assets
B. Expenditure
C. Liability
D. None

Which column of a cash book will not have credit balance___________?

A. Bank column
B. Discount column
C. Cash column
D. None

The closing balance of a petty cash book is a / an___________?

A. Liability
B. Gain
C. Assets
D. Loss

Which of these transactions will not be recorded in cash book?

A. Cash received from debtors
B. Cash paid to creditors
C. Salary remained outstanding
D. Cash deposited with bank

In a three column cash book_______________does not exist?

A. Cash column
B. Bank column
C. Petty cash column
D. Discount column

Cash book records?

A. Only cash sales
B. All types of cash receipts and payments
C. Only revenue receipts
D. Only capital receipts

Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation?

A. Added, Reduced
B. Added, Added
C. Deducted, Added
D. Deducted, Deducted

Which of the following is an one sided error?

A. 500 purchase of old equipment not recorded in the books of A/c at all
B. 500 being expense on travelling expense credited to travelling expenses
C. Both
D. None

Which of the following error is an error of principle

A. 5,000 received from Sham credited to Ram A/c
B. 5,000 incurred on installation of new plant debited to travelling expenses A/c
C. 500 paid for wages debited to salary A/c
D. 500 being purchase of raw material debited to purchase A/c ` 50