0% 0 Accounting Quiz 5 1 / 50 A book wherein various accounts are opened is called____________? Journal Trial Balance Subsidiary books Ledger 2 / 50 Which of the following is an external cause of depreciation? Obsolescence Routine repair and maintenance Misuse Wear and tear 3 / 50 A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on SLM method, find the profit or loss on sale of the car? 20,000 Profit 20,000 Loss 10,000 Profit 10,000 Loss 4 / 50 Which of the following statements is true with regard to written down value method of depreciation? i. The rate at which the asset is written off reduces year after year ii. The amount of depreciation provided reduces from year to year iii. The rate of depreciation as well as the amount of depreciation reduce year after year Only (i) above Only (ii) above (i),(ii) and (iii) above Both (i) and (ii) above 5 / 50 Which of the following statements is correct about Depreciation? Depreciation is a charge against profit Depreciation cannot be provided in case of loss in a financial year Depreciation is an appropriation of profit Depreciation is provided in the books only when there is profit 6 / 50 Payments received in advance from a customer for a contract can be__________? Shown as a deduction from contract work-in-progress on asset side Shown as a liability Credited to P&L A/c Either A. or B. above 7 / 50 Which of the following is not a method of charging depreciation? Sum of digits Method Straight line Method Written down value Method Discounted present value Method 8 / 50 Which of these items are taken into consideration for preparation of adjusted Cash Book Mistake in Cash Book Cheques deposited but not cleared Mistake in Pass Book Cheque issued but not presented for payment 9 / 50 When a person purchasing goods on credit he becomes a_________in the books of the seller? Debtor Offender Creditor Defaulter 10 / 50 Which of the following is not a cause of difference in balance as per cash book and balance as per bank pass book___________? Cheques issued but not presented for payment Errors in cash book Cheques deposited and cleared Errors in pass book 11 / 50 Revenue is generally recognized as being earned at that point of time when? sale is effected cash is received production is completed debts are collected 12 / 50 Bank reconciliation statement is a part of_________? Auditors report Trial balance None of these Cash book 13 / 50 Depreciation is calculated on the____________? Cost+ Transport+ Installation expenses Cost or market values whichever is less Market price Cost price of asset 14 / 50 Which of the following is not depreciated? Office equipment Plant and Machinery Land Building 15 / 50 The main objective of providing depreciation is to? Show the true financial position in the Balance Sheet Both A. and B. above Calculate the true profit Provide funds for replacement of fixed assets 16 / 50 Expenses of the following nature are treated as a Revenue expenses except__________? Putting the new asset in working condition Expenses for day to day running of the business Purchase of raw material Depreciation 17 / 50 Benefits of preparing Bank Reconciliation Statement includes___________? Help know actual bank balance All the three Highlights under delay in clearance of cheques deposited but not credited It bring out any errors committed in preparation of Cash book / Bank Pass Book 18 / 50 The Bank Reconciliation Statement is prepared? To arrive at the Bank Balance To arrive at the Cash Balance To bring out the reasons for the difference between the Balance as per Cash Book and the Balance as per Bank Statement To rectify the mistakes in the Cash Book 19 / 50 ____________is also known as Appraisal system of depreciation? Insurance Annuity system Survey system Inventory system 20 / 50 Cost of goods sold excludes___________? Postage & Stamps Carriage inward Wages & Salary Opening Stock 21 / 50 Revenue receipts are shown in___________? Balance Sheet Manufacturing A/c Trading and Profit and Loss A/c Profit and Loss appropriation A/c 22 / 50 Which of these is not a special purpose journal? Sales journal Debtors journal Purchase journal Cash journal 23 / 50 Capital expenses are shown in___________? Trading A/c None of these Profit and Loss A/c Balance Sheet 24 / 50 The portion of the acquisition cost of the asset yet to be allocated is known as___________? Residual Value Accumulated value Written down value Salvage value 25 / 50 Debit side of Bank Pass book corresponds to___________? Debit side of Cash Book Debit side of Trial Balance Credit side of Cash Book Credit side of Balance Sheet 26 / 50 Which of the following is true with respect to providing depreciation under diminishing balance method? The amount of depreciation decreases while the rate of depreciation remains the same The amount of depreciation and the rate of depreciation increases every year The amount of depreciation and the rate of depreciation decrease every year The amount of depreciation keeps increasing every year while the rate of depreciation keeps decreasing 27 / 50 Which of the following factors are primarily considered to determine the economic life of an asset? Passage of time, asset usage, and obsolescence Tax regulations and asset usage Tax regulations and SEBI guidelines SEBI guidelines and Asset usage 28 / 50 Cash received from debtors would be deemed as___________of funds. Gain No flow Sources Uses 29 / 50 Generally the term fund is used to mean the difference between? Current liabilities and non-current liabilities Current assets and non-current liabilities Profit and loss A/C and Balance sheet Current assets and current liabilities 30 / 50 The periodic total of purchase day book is posted to____________? Purchase A/c Credit purchase A/c Purchase register Cash purchase A/c 31 / 50 Bank reconciliation is a statement prepared to reconcile__________? Cash as per cash book with bank balance as per bank pass book Trial balance Bank A/c Cash book 32 / 50 The entry for creating a Provision for bad debts is_____________? Debit Profit and Loss A/c and credit Provision for Bad Debts A/c. Debit Provision for Bad Debts A/c and credit Profit & Loss A/c Debit Provision for Bad Debts A/c and credit Debtors A/c Debit Debtors A/c and credit Provision for Bad Debts A/c 33 / 50 The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is_________? Decrease in market value of the asset Physical deterioration of the asset Depreciation Valuation of an asset at a point of time 34 / 50 The periodic total of sales day book is posted to___________? Sales A/c Cash sales A/c Credit sales A/c Sales return A/c 35 / 50 Provision is created for____________? Unknown Liabilities Creation of Secret Reserves Known Liabilities All the Three 36 / 50 Which of the following statements best describes the purpose of depreciation? Allocation of cost in a manner that will ensure that Plant and Equipment items are not carried on the Balance Sheet in excess of net realizable value Regular reduction of asset value to correspond to changes in market value as the asset ages Allocation of the cost of an asset to the periods in which services are received from the asset A process of correlating the market value of an asset with its gradual decline in physical efficiency 37 / 50 Posting is the process of____________? Posting suitable person to a suitable job All the three Entering in the ledger the information contained in the ledger Posting the letters in drop box 38 / 50 Depreciation is a process of____________? Appropriation Valuation and allocation Allocation Valuation 39 / 50 Which of the following is a revenue expenses? Plant purchased Long term loan raised from bank Raw material consumed Share Capital 40 / 50 Bad debts recovered account will be transferred to______________? Either (b )or C. above Provision for Doubtful Debt Account Debtor?s Account Profit and Loss Account 41 / 50 Tax deducted at source A/c appears in___________? Liability side Debited to Capital A/c Assets side Profit & Loss A/c 42 / 50 Investment in own share A/c appears in____________? Profit & Loss A/c Liability side Netted from Capital Asset side 43 / 50 A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on written down value method, find the profit or loss on sale of the Second hand car? Loss of 22,000 Profit of 11,000 Loss of 11,000 Loss of 20,000 44 / 50 Difference in Bank Balance as per Pass Book and Cash Book may arise on account of_____________? Cheque issued but dishonoured Cheque issued but not presented Both A. and B. Cheque deposited and credited by bank 45 / 50 Which of these types of expenditure would not be treated as a Capital Expenditure? Maintenance of the Asset Acquisition of an Asset Improvement of the existing Asset Extension of an Asset 46 / 50 Which of the following is a capital expenditure? Cost of stand by equipment Annual whitewash of the office building Repair of plant and machinery Salary paid to workers 47 / 50 In which of the following methods, the cost of the asset is spread over in equal proportion during its useful economic life? Straight-line method Written down value method Sum-of-the years?-digits method Units-of-production method 48 / 50 Which of these documents is not required for Bank Reconciliation? Bank Pass Book Bank Statement Trial Balance Bank column of Cash Book 49 / 50 Debit balance as per bank pass book mean_____________? Bank Overdraft Surplus cash Terms deposits with bank None of these 50 / 50 Credit balance as per Cash Book mean____________? Terms deposits with bank Surplus cash Bank overdraft None of these Provide Your Information Your score is The average score is 0% LinkedIn Facebook Twitter 0% Restart quiz Send feedback Share on facebook Facebook Share on twitter Twitter Share on whatsapp WhatsApp PrevAccounting Quiz 4 Accounting Quiz 6Next
