Closing stock in the Trial Balance implies that______________??
A. It is already adjusted in the opening stock
B. It is adjusted in the Purchase A/c
C. It is adjusted in the Cost of Sale A/c
D. It is adjusted in the Profit
Category: Accounting Mcqs
BUSINESS paid rent amounting to $100″ which of the following specialized journals records this transaction??
A. Cash receipts journal
B. Cash payments journal
C. Sales journal
D. Purchase journal
Tax deducted at source appears in the Balance Sheet?
A. On the assets side under current assets
B. On the assets side under loans and advances
C. On the liabilities side under current liabilities
D. On the liabilities side under provisions
Computers taken on hire by a business for a period of twelve months should be classified as:___________??
A. Current assets
B. Intangible assets
C. Deferred revenue expenditure
D. Not an asset
_______ the withdrawal of cash and goods by the owner of the busienss for his/her personal use??
A. Depreciation
B. Drawings
C. Outflow of cash
D. Appreciation
Which of the following is an external cause of depreciation??
A. Routine repair and maintenance
B. Misuse
C. Obsolescence
D. Wear and tear
If debit balances = credit balances, trial balance only shows or check the ____________ and it does not indicate that no errors were made during recording and posting.?
A. Arithmetic accuracy
B. Errors of commission
C. Omissions of economic events
D. Understatements of balances
Which of the following is true with respect to providing depreciation under diminishing balance method??
A. The amount of depreciation keeps increasing every year while the rate of depreciation keeps decreasing
B. The amount of depreciation and the rate of depreciation decrease every year
C. The amount of depreciation decreases while the rate of depreciation remains the same
D. The amount of depreciation and the rate of depreciation increases every year
Fresh capital introduction will increase____________??
A. Assets and liabilities
B. Assets and equity
C. Liabilities and equity and bank balance
D. Capital and liabilities
Debit note is the basis for recording a transaction in which of the following journals??
A. General journal
B. Cash journal
C. Purchase journal
D. Purchase return journal
