Accounting MCQs With Answers
361. In a limited company which of the following are shown in the Appropriation Account?
- (i) Debenture interest
- (ii) Proposed dividend
- (iii) Transfers to reserves
- (iv) Directors' remuneration
- (i) and (ii)
- (i) and (ii)
- (ii) and (iii)
- (ii) and (iv)
Correct answer: (C)
(ii) and (iii)
362. Which of the following is a liability?
- Motor Vehicles
- Machinery
- Creditors for goods
- Cash at Bank
Correct answer: (C)
Creditors for goods
363. Which of the following should not be called 'Sales'?
- Goods sold for cash
- Sale of item previously included in 'Purchases'
- Office fixtures sold
- Goods sold on credit
Correct answer: (C)
Office fixtures sold
364. What would have been the balance on the account of C De Freitas in MC17 on 19 May 20X5?
- A credit balance of £445
- A credit balance of £95
- A credit balance of £265
- A debit balance of £265
Correct answer: (D)
A debit balance of £265
365. Which of these best describes fixed assets?
- Are bought to be used in the business
- Are expensive items bought for the business
- Are items which will not wear out quickly
- Are of long life and are not bought specifically for resale
Correct answer: (D)
Are of long life and are not bought specifically for resale
366. Which of the following are personal accounts?
- (i) Buildings
- (ii) Wages
- (iii) Debtors
- (iv) Creditors
- (ii) and (iii) only
- (i) and (iv) only
- (ii) and (iv) only
- (iii) and (iv) only
Correct answer: (D)
(iii) and (iv) only
367. Discounts received are:
- Deducted by us when we pay our accounts
- Deducted when we receive cash
- Given by us when we sell goods on credit
- None of these
368. Entered in the Purchases Journal are:
- Discounts received
- Purchases invoices
- Payments to suppliers
- Trade discounts
Correct answer: (B)
Purchases invoices
369. A firm bought a machine for £3,200. It is to be depreciated at a rate of 25 per cent using the Reducing Balance Method. What would be the remaining book value after 2 years?
- £2,400
- £1,800
- £1,600
- Some other figure
370. A Provision for Doubtful Debts is created:
- When debtors cease to be in business
- To provide for possible bad debts
- When debtors become bankrupt
- To write off bad debts
Correct answer: (B)
To provide for possible bad debts
Saturday, November 20, 2021