The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of :?
A. Uncontrollable cost
B. Sunk cost
C. Avoidable cost
D. Opportunity cost
Category: Accounting Mcqs
Debit balance = Credit balance in a trial balance indicates that:?
A. No error in recording transactions
B. No error in posting entries to ledger accounts
C. Account balances are correct
D. Mathematically Capital Liabilities=Assets
A systematic way to maintain the books of accounts is called_________??
A. Accountancy
B. Economics
C. Book Keeping
D. Auditing
Unpresented checks also referred as____________??
A. Uncollected checks
B. Uncredited checks
C. Outstanding checks
D. Bounced checks
A check returned by bank marked “NSF” means that:?
A. Bank can’t verify your identity
B. There are not sufficient funds in your account
C. Check has been forged
D. Check can’t be cashed being illegal
Which of the following methods is not a practical way of realizing revenue??
A. Delivery method
B. Percentage-of-completion method
C. Production method
D. Moving average method
_________ Checks that are presented to bank but not yet credited by the bank.?
A. Unpresented checks
B. Uncredited checks
C. Outstanding checks
D. Bounced checks
Identify the nominal account?
A. Machinery account
B. Building account
C. Creditors account
D. Rent expenses account
Payment of expenses will ______ the assets?
A. Increase
B. Reduce
C. apportion
D. Overstate
Which of the following is not a financial statement??
A. Profit and Loss Account
B. Balance Sheet
C. Funds Flow Statement
D. Trial Balance
