8/18/2019 AFS Questions

1/47

MCQ’s on Balance Sheet

1)  Rent receivable (given in trial balance) is an item of:

A) Balance Sheet

B) Profit & Loss Account 

C) Trading Account

D) Both Balance Sheet and Profit & Loss Account

2)  When closing stock is given in trial balance then it !ill effect:

A) Trading account only

B) Balance sheet only

C) Owner's equity only

D) Both Trading account and Balance sheet

")  Which of the follo!ing acco#nt is affecte$ from the %ra!ings of cash in sole& 'ro'rietorshi' b#siness

A) Caital account

B) Shareholder account

C) Lia!ility account

D) "#ense account

)  *n asset is consi$ere$ to be a c#rrent asset if:

A) $t has !een !ought recently and was !ought new and not used

B) $t can !e reali%ed in cash or sold or consued in the !usiness within one year 

http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html

8/18/2019 AFS Questions

2/47

C) $t is a iece of new achinery that is e#ected to last for at least ten years

D) All of the gien otions

+)  ,eneral office e-'enses are charge$ to !hich of the follo!ing hea$:

A) Adinistratie e#enses

B) (areting e#enses

C) Selling e#enses

D) *inancial e#enses

.)  Which of the follo!ing !o#l$ /0 be consi$ere$ as a com'onent of cost of stock

A) Salaries of selling staff 

B) Transortation inward costs

C) $ort duties

D) Purchase rice

3)  Consi$er the follo!ing $ata an$ i$entif4 the amo#nt !hich !ill be $e$#cte$ from S#n$r4 %ebtors in Balance Sheet

5artic#lars 6

Bad de!ts +fro trial !alance) ,-.//

Proision for dou!tful de!ts +old) 0-///

Current year1s roision +new) 2//

A) 34// 

B) 32// 

C) 30-///

D) 30-4//

http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html

8/18/2019 AFS Questions

3/47

7)  Which of the follo!ing is /0 correct abo#t income ta-

A) Different coanies ay ta# on different rates

B) $t is treated as an e#ense and de!ited in Profit & Loss account

C) 5hen financial stateents are reared- an estiate of e#ected ta# lia!ility is ade

D) $t is treated as an e#ense and credited in Profit & Loss account

8)  (*mo#nt of ne! 'rovision 9 *mo#nt of ba$ $ebts)  *mo#nt of ol$ 'rovision then amo#nt !ill be sho!n on:

A) De!it side of P & L account

B) Credit side of P & L account

C) Asset side of Balance Sheet

D) Lia!ility side of Balance Sheet Answers :

1) A 2) D 3) A 4) B 5) A 6) A 7) B 8) B 9) B

http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html http://www.accounting-world.com/2011/05/financial-accounting-multiple-choice_7468.html

8/18/2019 AFS Questions

4/47

Multiple Choice Questions on !" Account

1) Accor#in$ to the #ou%le entr& s&ste' o( ccountin$* n ccount tht

o%tins %ene+t is:

A) Cre#it

B) De%it 

C) ,nco'e

D) -o nee# to show s ccountin$ recor#

2) .er' /Cre#it/ 'ens0000000 %& the %usiness

A) eceiin$ o( %ene+ts

B) ,t hs no eect on %usiness 

C) roi#in$ o( %ene+ts

D) ,t #epen#s upon ite's

3) hen  "i%ilit& is re#uce# or #ecrese#* it is recor#e# on the:

A) "e(t or cre#it si#e o( the ccount 

B) i$ht or #e%it si#e o( the ccount

C) i$ht or cre#it si#e o( the ccount

D) "e(t or #e%it si#e o( the ccount

4) hen Cpitl is increse# %& n 'ount* it is recor#e# on the:

http://www.accounting-world.com/2011/04/aaaa-dhtmltooltipposition-absolutewidth.html htt