Which of the following is the closing balance of a ledger account??
A. Balance c/d
B. Balance b/d
C. Balance e/d
D. Balance f/c
Category: Accounting Mcqs
In support of business transaction, any written evidence is called ___________??
A. Discount
B. Voucher
C. Allowance
D. Price
When production is equal to sales, which of the following is TRUE??
A. No change occurs to inventories for either use absorption costing or variable costing methods
B. The use of absorption costing produces a higher net income than the use of variable costing
C. The use of absorption costing produces a lower net income than the use of variable costing
D. The use of absorption costing causes inventory value to increase more than they would though the use of variable costing
Which of the following is a Nominal A/c ??
A. Outstanding Salary A/c
B. Rent A/c
C. SBI A/c
D. Debtors A/c
The closing balance of petty cash book is considered as_________??
A. Liability
B. Asset
C. Expenses
D. Income
In the books of the drawer, the accounting treatment involved on receipt of a bill of exchange duly accepted by the drawee is??
i. Debit Bills Receivable Account ii. Debit Drawee’s Account iii. Credit Drawee’s Account iv. Credit Sales Account A. Only (i) above
B. Both (ii) and (iv) above
C. Both (i) and (iii) above
D. Both (i) and (iv) above
Under which of the following situations, is journal entry not passed in the books of the drawer??
A. When a discounted bill is honoured by the drawee on the due date
B. When a bill is sent to the bank for collection
C. When a bill is renewed at the request of the drawee
D. When a debtor accepts a bill drawn by the drawer
Depreciation appearing in the Trial Balance should be??
A. Debited to P
