Sign In / Sign Up
About Accounting
Following are some of the multiple choice questions on the Accounting with answers that will help the students in developing their knowledge.
Accounting MCQ
13. To which account in the Balance Sheet is the net income or net loss transferred to at the end of the accounting period?
21. What will usually cause the liability account Accounts Payable to increase?
24. Financial reports that summarize the financial condition and operations of a business
31. An increase in owner's equity resulting from the operation of a business
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.
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?
49. An endorsement on the back of a check consisting only of a signature is a(n)
Enjoyed the Quiz. Share this with friends
Comments
Add Your Review
Ask a Question
Advertisement
