Closing entries are generally passed:?
A. At the time of opening new books of account
B. At the time of closing the accounts
C. During the course of accounting period any time
D. After certification of accounts
Category: Accounting Mcqs
The normal balance of liability account is____________??
A. Debit balance
B. Credit balance
C. Cash balance
D. Neither debit nor credit balance
Which of these is not an essential feature of a bill of exchange??
A. Unconditional
B. Certainty of amount
C. In writing
D. Amount to be paid in foreign currency
The beginnings inventory of the current year is overstated by 5,000 and closing inventory is overstated by 12,000. These errors will cause the net income for the current year by?
A. 17,000 (overstated.
B. 12,000 (understated.
C. 7,000 (overstated.
D. 7,000 (understated.
Which of the following is known as the base for preparing trial balance??
A. Journal
B. Cash account
C. Ledger account
D. Balance sheet
While finalizing the current year‘s accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by 50,000. As a result?
A. Previous year’s profit is overstated and current year’s profit is also overstated.
B. Previous year’s profit is understated and current year’s profit is overstated.
C. Previous year’s profit is overstated and current year’s profit is understated.
D. There will be no impact on the profit of either the previous year or the current year.
