Following are some of the multiple choice questions on the Accounting with answers that will help the students in developing their knowledge.
2. A bank reconciliation statement is prepared by?
3. What are source documents?
4. Unearned Revenues is what type of account?
5. The main purpose of preparing a bank reconciliation statement is?
6. Assets are usually reported on the balance sheet at which amount?
7. Accounting entries involve a minimum of how many accounts?
8. The business or economic entity concept is applicable to
9. Unfavourable balance means?
10. Favourable balance means?
11. The accounting equation is
12. Entries to expenses such as Rent Expense are usually
13. To which account in the Balance Sheet is the net income or net loss transferred to at the end of the accounting period?
14. Anything of value that is owned
15. A decrease in owner's equity resulting from the operation of a business
17. A business owned by one person
18. Entries to revenues accounts such as Service Revenues are usually
19. Amount owed by a business
20. Which of the following are Assets?
21. What will usually cause the liability account Accounts Payable to increase?
22. Switching accounting principles every year would violate the
23. A balance sheet reports a business's financial
24. Financial reports that summarize the financial condition and operations of a business
26. The account used to summarize the owner's equity in a business
27. The amount in an account
28. Assets taken out of a business for the owner's personal use
29. What is the difference between cash and credit transaction?
30. What will usually cause an asset account to increase?
31. An increase in owner's equity resulting from the operation of a business
33. How would an accountant record an increase in sales?
34. How would an accountant record an increase in cash?
35. A petty cash fund is always replenished
36. ______________________ is the transfer of journalized transactions to their accounts.
37. Many businesses choose a one-year fiscal period that ends during a period of high business activity.
38. Accrual concept is based on :
39. Why is depreciation provided on non-current assets?
40. A company is classifying its costs. It discovers that for any level of output between 10 000 and 15 000 units the freight cost per unit is always the same figure of $2 per unit. Of which type of cost is this an example?
41. The issued ordinary share capital of a company at the beginning of a period was $240 000 (nominal value $0.60 per share). A rights issue of one share for every five held was made during the period at a price of $0.90 per share. At that time the market price was $1.10 per share. What was the issued ordinary share capital after the rights issue?
42. An investor owns 10 000 5% preference shares in Howdo Limited. One year Howdo Limited does not have enough profits to pay the preference dividend. The investor expects the profits to improve and he thinks the directors will pay the outstanding dividend in the following year. Which type of preference shares does the investor own?
43. A company’s trial balance showed trade receivables of $14 600 and an existing provision for doubtful debts of $470. It was discovered that the trade receivables included an irrecoverable debt of $500. A contra entry of $400 was also to be made. The provision for doubtful debts is to be maintained at 5% of trade receivables. Which amount for doubtful debts was charged in the income statement?
44. A book-keeper compared the business bank statement with the cash book. He then updated the cash book and finally prepared a bank reconciliation statement. Why was the bank reconciliation statement prepared?
45. A company purchased a lorry for $50000 on 1 January 2015. It has an estimated residual value of $10 000 and a four-year life. The company charges depreciation monthly on a straight-line basis. What will the charge for depreciation be for the year to 30 June 2015?
46. A company changes from the straight-line method of depreciation to the reducing balance method. Which accounting principle has not been applied?
47. In the cash book, bank charges are recorded on the?
48. When check is not paid by the bank, it is called?
49. An endorsement on the back of a check consisting only of a signature is a(n)
50. :APP: how to calculate gross profit on the income statement?
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