Every business transaction affects at least ________ accounts??
A. One
B. Two
C. Three
D. Infinite
Category: Accounting Mcqs
Which of the following errors is an error of omission??
A. Sale of ` 100 was recorded in the Purchases Journal
B. Wages paid to Mohan have been debited to his account
C. The total of the sales journal has not been posted to the Sales Account
D. Repairs to buildings have been debited to buildings account
Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of____________??
A. Error of principle
B. Error of commission
C. Error of omission
D. Error of duplication
Which English alphabet is similar to the shape of an account??
A. I
B. T
C. H
D. None
_________ is the evidence that a transaction took place??
A. Source documents
B. Ledger
C. Bonds
D. Journals
Which of these types of expenditure would not be treated as a Capital Expenditure??
A. Acquisition of an Asset
B. Extension of an Asset
C. Improvement of the existing Asset
D. Maintenance of the Asset
Which of the following accounts will be credited if a company purchases building for cash??
A. Capital account
B. Fixed assets account
C. Building account
D. Cash account
Revenue is generally recognized as being earned at that point of time when??
A. sale is effected
B. cash is received
C. production is completed
D. debts are collected
Trial balance is commonly prepared??
A. Frequently during the year
B. At the end of an accounting period
C. At the end of a month
D. At the end of a year
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??
A. Loss of 20,000
B. Loss of 22,000
C. Loss of 11,000
D. Profit of 11,000
