MCQs4All - Accounting MCQs for NTS, FPSC, CSS, IELTS, TOEFL

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Question. Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of____________?

Error of principle
Error of commission
Error of omission
Error of duplication

Question. A chart of accounts generally start with which of the following types of accounts?

Assets accounts
liability accounts
Cash accounts
Revenue accounts

Question. How many parties are generally found in a Bill of Exchange?

4
2
3
5

Question. If unexpired insurance appears in the Trial Balance, it should be:

Credited to the Profit & Loss Account
Debited to the Profit & Loss Account
Shown on the liabilities side of the Balance Sheet
Shown on the assets side of the Balance Sheet

Question. A brief explanation recorded below every entry in general journal is commonly known as__________?

Narration
Explanation
Summary
Other information

Question. Bank reconciliation statement is prepared by____________?

Accountant of the business
Manager of the business
Controller of the bank
Accountant of the bank

Question. A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be

37.50
38.25
24.00
35.00

Question. Current assets – Current liabilities=?

Capital
Absorbed capital
Net assets
Net working capital

Question. Sundry debtors as per Trial Balance is 43,000 which includes 2,200 due from ‗H in respect of goods sent to him on approval basis, the cost price of which is 1,800. Rectification would involve:

Adding 2,200 to closing stock
Deducting 1,800 from closing stock and deducting 2,200 each from debtors and sales
Adding 1,800 to closing stock and deducting 2,200 each from debtors and sales
Deducting 1,800 from debtors

Question. Identify the asset from the following:

Cash and cash equivalent
Creditors
Notes payable
Bank loan

Question. Fresh capital introduction will increase____________?

Assets and liabilities
Assets and equity
Liabilities and equity and bank balance
Capital and liabilities

Question. If debit side of a bank account is greater than credit side it indicates which of the following?

Cash at bank
Bank understatement
Bank overdraft
Balance overstatement

Question. If a transaction is completely omitted from the books of accounts, will it affect the agreement of a trial balance?

Yes
No
Transactions can’t be omitted
none of these

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