Q1. Prepaid interest given in the Trial Balance will be treated as a (an):
- A.Asset✓ Correct
- B.Liability
- C.Revenue
- D.Deferred expense
Q2. The net income calculated in the income statement for the accounting period is reported on:
- A.Bank Statement
- B.Statement of retained earnings✓ Correct
- C.Statement of cash flows
- D.None of the given options
Q3. If the Capitals of partners are fixed then, at the end of financial year a partner’s drawings are transferred to the:
- A.Credit side of the partner’s capital account
- B.Credit side of the partner’s current account✓ Correct
- C.Debit side of partnership bank account
- D.Debit side of the partner’s current account
Q4. If one partner receives a salary which is credited to him at the end of the year, the share of profit available for distribution will be:
- A.Increased
- B.Decreased
- C.Unchanged✓ Correct
- D.Changed and become negative
Q5. In which situation(s) Partnership is dissolved?
- A.In case of death of partner
- B.At the admission of new partner
- C.If any partner resigned from partnership
- D.All of the given options✓ Correct
Q6. Rs. Gross profit 50,000 Operating profit 42,000 Sales 250, 000 What is the amount of operating expenses ?
- A.Rs. 8,000✓ Correct
- B.Rs. 92,000
- C.Rs. 62,500
- D.Rs. 300,000
Q7. Current ratio may be increased by:
- A.Overstating current Assets✓ Correct
- B.Overstating current Liabilities
- C.Understating current Assets ( not Correct)
- D.Understating current assets and overstating current liabilities
Q8. In which of the following interim dividend is treated?
- A.In profit and Loss account
- B.In profit and Loss appropriation account✓ Correct
- C.On the asset side of the Balance Sheet
- D.In trading account
Q9. The statement of changes in equity basically shows the movement of:
- A.share capital during the year
- B.Capital reserves during the year
- C.Revenue Reserves during the year
- D.All of the given options✓ Correct
Q10. Which of the following can offer its share to general public at large?
- A.A private limited company
- B.A listed company✓ Correct
- C.A partnership firm
- D.A trust
Q11. The Joint Stock Company is formed under the Companies Ordinance:
- A.1984✓ Correct
- B.I884
- C.1948
- D.1965
Q12. In case of fixed capital accounts, other transactions such as Drawings and Profit etc. are recorded in a separate account that is called ___________.
- A.Fixed Capital Account
- B.Current Account✓ Correct
- C.Fluctuating Capital Account
- D.Floating Capital Account
Q13. Which of the following account will be debited when the interest on drawings is charged?
- A.Partner’s capital account
- B.Interest account
- C.Partner’s current account✓ Correct
- D.Profit & Loss account
Q14. Which of the following account will be credited when interest on capital is charged against the distribution of profit?
- A.Interest account
- B.Partner’s capital account✓ Correct
- C.Profit and Loss account
- D.Profit and loss appropriation account
Q15. Which of the following statement is TRUE about the partnership form of business?
- A.Partners must have to share their profits in equal proportion
- B.Partners are personally liable for the liabilities of the business✓ Correct
- C.Partnerships must make their accounts available to the general
- D.Partnership agreement in writing is called Partnership deed
Q16. Which of the following is TRUE about the treatment of insurance paid in advance Rs. 13,000?
- A.It will be treated as an other income in Profit & Loss Account
- B.It will be treated as a current asset in Balance Sheet✓ Correct
- C.It will be treated as a current liability in Balance Sheet
- D.It will be treated as an accrued expense in Balance Sheet
Q17. Which of the following is/are NOT shown in balance sheet of sole proprietor?
- A.Fixed assets
- B.Current liabilities
- C.Profit sharing ratio✓ Correct
- D.Long term assets
Q18. Which of the following appears in both the Income Statement debit column and the Balance Sheet credit?
- A.Net income✓ Correct
- B.Net loss
- C.Dividends
- D.Retained earnings
Q19. Which of the following is a selling expense?
- A.Any tax/freight is paid on purchases
- B.General salaries paid to laborers
- C.Tax & freight paid on sale✓ Correct
- D.Interest on deposits
Q20. Which of the following is NOT an operating expense?
- A.Salaries and wages expense
- B.Rent expense
- C.Interest expense✓ Correct
- D.Depreciation expense
Q21. Which of the following is the first phase of the typical operating cycle?
- A.Receive cash from customers
- B.Pay cash to suppliers
- C.Sell goods and services to customers
- D.Purchase goods and services✓ Correct
Q22. Following information are extracted from books of Mr. XYZ Particulars Rs. Closing value of stock 40,000 Write off Bad debts (given in adjustments) 2,400 Sundry Debtors (given in trial balance) 33,200 Provision is created on Debtors at 10% Identify the Total amount deducted from Sundry debtors.
- A.Rs. 460
- B.Rs. 2,400
- C.Rs. 3,080
- D.Rs. 5,480✓ Correct
Q23. "Goods sold to Mr. Salman for Rs. 6,000 have been forgotten to enter in books of accounts", is an example of:
- A.Error of principle
- B.Error of omission✓ Correct
- C.Error of commission
- D.Error of original entry
Q24. _____ are committed in those cases where proper distinction between revenue and capital items is not made.
- A.Error of principle✓ Correct
- B.Error of omission
- C.Error of commission
- D.Error of original entry
Q25. Which of the following entry will be passed to record discount received in control account?
- A.Discount Received (Dr) and Creditors Control A/c (Cr)
- B.Discount Received (Dr) and Creditors A/c (Cr)
- C.Creditors Control A/c (Dr) and Discount Received (Cr)✓ Correct
- D.Creditors A/c (Dr) and Discount Received (Cr)
Q26. Which of the following is shown on credit side of creditors control account?
- A.Bills Receivable
- B.Return inwards
- C.Credit purchases✓ Correct
- D.Discount allowed
Q27. An overdraft will appear as:
- A.a debit balance in the both the bank statement and the cash book.
- B.a credit balance in the bank statement but as a debit balance in the cash book.
- C.a credit balance in the cash book but as a debit balance in the✓ Correct
- D.a credit balance in both the bank statement and the cash book.
Q28. Which one of the following is NOT true for Profit & Loss Account?
- A.It shows whether a business has made a profit or loss over a financial year
- B.It shows the financial performance of a business for the period
- C.It shows revenues and expenses for the period
- D.It is used to calculate surplus/deficit for a particular period✓ Correct
Q29. Which of the following is CORRECT regarding depreciation?
- A.It is a systematic allocation of depreciable amount of an asset✓ Correct
- B.It refers to the end life of an asset
- C.It refers to the increase in value of asset
- D.It is another name of Impairment
Q30. The total of all costs incurred to convert raw material into finished goods is known as:
- A.Prime cost
- B.Conversion cost✓ Correct
- C.Sunk cost
- D.Opportunity cost
Q31. If the cost of sales is Rs. 60,000, sales are Rs. 90,000 and operating expenses are Rs. 25,000 during the year. What would be the Net Profit?
- A.Rs. 5,000✓ Correct
- B.Rs. 25,000
- C.Rs. 55,000
- D.Rs. 60,000
Q32. “Electricity bill for the month is paid by Mr. Imran Rs. 325”. What is the journal entry to record this transaction?
- A.Cash a/c Rs. 325 (Dr.) , Utilities Expense a/c Rs. 325 (Cr.)
- B.Utilities Expense a/c Rs. 325 (Dr.), Cash a/c Rs. 325 (Cr.)✓ Correct
- C.Accounts Receivable a/c Rs. 325 (Dr.), Utilities Expense a/c Rs. 325 (Cr.)
- D.Utilities Expense a/c Rs. 325 (Dr.), Accounts Receivable a/c Rs. 325 (Cr.)
Q33. Which of the following journal entry will be recorded, if the cash is deposited in the bank?
- A.Bank account (Dr) and Cash account (Cr)✓ Correct
- B.Cash account (Dr) and Bank account (Cr)
- C.Bank account (Dr) and Profit & Loss account (Cr)
- D.Cost of goods Sold account (Dr) and Bank account (Cr)
Q34. Which one of the following statement is CORRECT about Long term liabilities? Note: Solve these papers by yourself This VU Group is not responsible for any solved content Hafiz Salman Majeed
- A.These are due within one year
- B.These are consist of all debts, payable after 12 months✓ Correct
- C.In working capital, these are deducted from current assets
- D.All of the given options
Q35. A summarized record of transactions related to individuals or things is called a/an ___________.
- A.Account✓ Correct
- B.Voucher
- C.Journal
- D.Trial balance
Q36. When a Liability is reduced or decreased, it is recorded on the:
- A.Right or debit side of the account
- B.Left or debit side of the account✓ Correct
- C.Left or credit side of the account
- D.Right or credit side of the account
Q37. Obligations to pay cash or un-earned incomes by the business are the:
- A.Assets
- B.Liabilities✓ Correct
- C.Equities
- D.Expenses
Q38. Economic resources owned by a business and expected to benefit for the future operations are called:
- A.Expenses
- B.Assets✓ Correct
- C.Capital
- D.Liabilities
Q39. According to the double entry system of book keeping, the investment of Rs.10, 000 in the business made by the owner will effect: Note: Solve these papers by yourself This VU Group is not responsible for any solved content Hafiz Salman Majeed
- A.Cash & Capital Account✓ Correct
- B.Cash & Expense Account
- C.Capital & Revenue Account
- D.Capital & Expense Account
Q40. Income of the business includes:
- A.Cash sales only
- B.Credit sales only
- C.Credit purchases only
- D.Both cash sales and credit sales✓ Correct
Q41. If a business purchases machinery for Rs. 30,000 on 31st January 2008 having life of 10 years, this expense will be realized ___________ under the concept of accrual accounting.
- A.For the year 2008 only
- B.For the last day of 10th year only
- C.Over 10 years✓ Correct
- D.Nothing can be said about it
Q42. Double entry accounting system includes:
- A.Accrual accounting only
- B.Cash accounting only
- C.Both cash and accrual accounting✓ Correct
- D.None of the given options
Q43. Wages outstanding given in the trial balance will be treated as a (an):
- A.Asset
- B.Liability✓ Correct
- C.Revenue
- D.Deferred expense
Q44. In calculating earning per share (EPS), the net profit is divided by which of the following?
- A.Number of ordinary shares✓ Correct
- B.Number of preference shares
- C.Paid up capital
- D.Authorized capital
Q45. Which of the following statement in NOT TRUE about the limited company form of business?
- A.The limited company form of business allows ownership of the business to be
- B.Shareholders can appoint professionals
- C.Shareholders are personally liable for all the liabilities incurred by the✓ Correct
- D.Regular filing of information about the affairs of the company is a legal
Q46. A private limited company can commence its business:
- A.Immediately on receiving a certificate of incorporation✓ Correct
- B.Without receiving a certificate of incorporation
- C.Only when it receives certificate of commencement of business
- D.Only when it receives both, the certificate of incorporation as well as
Q47. An example of financing activities in the context of cash flow statement is:
- A.Capital expenditures on purchase of fixed assets
- B.Long-term deposit
- C.Financial charges paid
- D.Dividend paid✓ Correct
Q48. A firm may earn profit during an accounting period but have less money in the bank at the end of the period then it had at the beginning. Which of the followings, on its own, could explain this?
- A.Not paying invoices received from creditors
- B.The sale of fixed assets during the period
- C.An increase in trade debtors over the course of the period✓ Correct
- D.An increase in the depreciation charge relative to the previous accounting period
Q49. The primary purpose of preparing a cash flow statement for an entity is to provide information about:
- A.Its financial position at the end of an accounting period
- B.Its cash receipts and cash payments during an accounting period✓ Correct
- C.Its financial position at the start of an accounting period
- D.None of the given options
Q50. Which of the following option(s) is TRUE about the Sales returns?
- A.Sales returns reduce the Gross sales of the firm
- B.Sales returns affect the Net income of the firm
- C.Sales returns affect the flow of cash
- D.All of the given options✓ Correct
Q51. The persons who sign articles and memorandum of the company and contribute in the initial share capital of the company are called:
- A.Subscribers✓ Correct
- B.Shareholders
- C.Managers
- D.Directors
Q52. The charter of a company which defines the limitations and powers of the company is called:
- A.The memorandum of association✓ Correct
- B.Articles of association
- C.Statutory report
- D.Certificate of commencement
Q53. Which of the following are the owners of a company?
- A.Proprietors
- B.Partners
- C.Shareholders✓ Correct
- D.Managers
Q54. Current accounts of the partners should be opened when the capitals are:
- A.Normal
- B.Floating
- C.Fixed✓ Correct
- D.Fluctuating
Q55. Rent receivable (given in trial balance) is an item of_____________.
- A.Balance Sheet✓ Correct
- B.Profit & Loss Account
- C.Trading Account
- D.Both Balance Sheet and Profit & Loss Account
Q56. Which of the following account is affected from the Drawings of cash in sole- proprietorship business?
- A.Capital account✓ Correct
- B.Shareholder account
- C.Liability account
- D.Expense account
Q57. An asset is considered to be a current asset if:
- A.It has been bought recently and was bought new and not used
- B.It can be realized in cash or sold or consumed in the business within one✓ Correct
- C.It is a piece of new machinery that is expected to last for at least ten years
- D.All of the given options
Q58. General office expenses are charged to which of the following head:
- A.Administrative expenses✓ Correct
- B.Marketing expenses
- C.Selling expenses
- D.Financial expenses
Q59. Which of the following would NOT be considered as a component of 'cost' of stock?
- A.Salaries of selling staff✓ Correct
- B.Transportation inward costs
- C.Import duties
- D.Purchase price
Q60. If (Amount of new provision + Amount of bad debts) < Amount of old provision then amount will be shown on:
- A.Debit side of P & L account
- B.Credit side of P & L account✓ Correct
- C.Asset side of Balance Sheet
- D.Liability side of Balance Sheet
Q61. Which of the following rectifying entry will be recorded, if sales to Mr. “A” of Rs.336 have been debited to Mr. “B” account?
- A.A’s account (Dr.) and B’s account (Cr.)✓ Correct
- B.B’s account (Dr.) and A’s account (Cr.)
- C.Sales account (Dr.) and B’s account (cr.)
- D.B’s account (Dr.) and Sales account (Cr.)
Q62. Sales are calculated by adding:
- A.Cash sales and cash received from debtors
- B.Credit sales and cash received from debtors
- C.Cash sales and credit sales✓ Correct
- D.Cash ales and credit purchases
Q63. Which of the following is NOT based on the concept of double entry book keeping system?
- A.Subsidiary Ledgers✓ Correct
- B.Creditors Control Accounts
- C.Debtors Control Accounts
- D.All of the given options
Q64. If Bad Debts written off are given in adjustment, then which of the following entry for bad debts written off is CORRECT? 6.
- A.Bad debts a/c (Dr) and Trading a/c (Cr)
- B.Provision for Bad and Doubtful debts a/c (Dr) and Bad debts a/c(Cr)
- C.Bad debts a/c (Dr) and debtors a/c (Cr)✓ Correct
- D.Trading a/c (Dr) and Bad debts a/c (Cr)
Q65. In accounting accumulated depreciation is:
- A.Treated as a reserve
- B.Treated as a contra asset✓ Correct
- C.Treated as a surplus
- D.Treated as an expense
Q66. In cost of goods sold statement the ‘cost of goods manufactured’ is equal to:
- A.Total factory cost + Opening work in process + Ending work in process✓ Correct
- B.Total factory cost + Opening work in process – Ending work in process
- C.Total factory cost - Opening work in process + Ending work in process
- D.Ending work in process +Total factory cost – Opening work in process
Q67. Which of the following item appears in Trading Account of a business?
- A.Interest expenses
- B.Wages and salaries✓ Correct
- C.Depreciation expenses
- D.Discount Allowed
Q68. If the cost of sales is Rs. 60,000, sales are Rs. 95,000 and operating expenses are Rs. 20,000 during the year, what would be the value of Gross Profit? 6.
- A.Rs. 15,000
- B.Rs. 35,000✓ Correct
- C.Rs. 55,000
- D.Rs. 60,000
Q69. The process of transferring journal entry information to the ledger is called:
- A.Journalizing
- B.Posting✓ Correct
- C.Balancing
- D.Analyzing
Q70. Which one of the following is a type of General Ledger?
- A.Book of original entry
- B.‘T’ Account✓ Correct
- C.Source document
- D.Day book
Q71. Which of the following is CORRECT about the flow of recording a transaction?
- A.Occurrence of event – voucher—Journal—Ledger—Trial Balance—profit✓ Correct
- B.Occurrence of event—Journal – voucher —Ledger—Trial Balance—profit and
- C.Occurrence of event—Ledger – voucher—Journal—Trial Balance—profit and
- D.Occurrence of event—Trial Balance – voucher—Journal—Ledger—profit and
Q72. Debenture is also named as:
- A.Share
- B.Bond✓ Correct
- C.Equity
- D.Reserve
Q73. What types of changes (is) are made at the admission of partner in partnership?
- A.Assets of old business will be revalued
- B.Liabilities of old business will be revalued
- C.Good will of business will be revalued
- D.All of the given options✓ Correct
Q74. In cash flow statements, which of the following would appear as an inflow of cash?
- A.The repayments of a bank loan
- B.Dividend issue in the current year
- C.Money received as result of selling fixed assets✓ Correct
- D.The difference between the valuations of old and new fixed assets
Q75. Which of the following is NOT a cash inflow?
- A.Purchase of fixed asset✓ Correct
- B.Sale of fixed asset
- C.Issue of debentures
- D.Cash from business operation
Q76. Which of the following is the most important document of the company?
- A.Memorandum of Association✓ Correct
- B.Articles of Association
- C.Prospectus
- D.Annual Report
Q77. Which of the following document(s) define the relation of company with outside world?
- A.Memorandum of Association✓ Correct
- B.Articles of Association
- C.Prospectus
- D.Statutory Declaration
Q78. The income statement of the Limited company is also known as:
- A.Manufacturing account
- B.Profit and Loss account✓ Correct
- C.Profit and Loss Appropriation account
- D.Current Account
Q79. In which of the following auditor’s remuneration payable is shown?
- A.In balance sheet under the head of current liabilities only
- B.In balance sheet under the head of current assets only
- C.In income statement under the administrative expense only
- D.In both balance sheet under the head of current liabilities and income✓ Correct
Q80. Which of the following represents the partnership agreement in writing?
- A.Partnership registration
- B.Partnership-at-will
- C.Partnership deed✓ Correct
- D.Partnership certification
Q81. Which of the following represents the relationship between persons who have agreed to share the profit of business carried on by all or any of them acting for all?
- A.Sole-ownership
- B.Private limited company
- C.Public limited company
- D.Partnership✓ Correct
Q82. Which of the following statement is TRUE about the Accounts receivable?
- A.Accounts receivable arises when a company buys goods or services from✓ Correct
- B.Accounts receivable is a miscellaneous category that may include loans to
- C.Accounts receivable are more formal than notes receivable
- D.Accounts receivable are often called trade receivables
Q83. Mark up cover ratio = operating profit before financial charges ÷ ? m
- A.Selling expenses
- B.Administrative expenses
- C.Financial charges✓ Correct
- D.Direct expenses
Q84. Which of the following business publishes the Financial Statements?
- A.Sole-Proprietorship
- B.Partnership
- C.Trust
- D.Public Limited Company✓ Correct
Q85. How dividend declared is treated in the Balance Sheet of the company?
- A.Provision
- B.Current liability✓ Correct
- C.Reserves and surplus
- D.Current assets
Q86. Fixed Assets (WDV) + Working Capital =? 6.
- A.Total assets employed✓ Correct
- B.Total liabilities
- C.Total assets
- D.Current assets 78
Q87. Capital account of sole proprietors is affected by which of the following items? a. Profit & Loss account b. Drawings account w. c. Balances of capital account
- A.a,b
- B.b,c
- C.a,c
- D.a,b,c✓ Correct
Q88. Which of the following is/are TRUE about the sole trader form of business?
- A.A sole trader is liable to pay income tax on his/her earnings
- B.Sole traders do not need to consult accountants
- C.Sole traders must register the name of their business with the Registrar of Companies
- D.All of the given options✓ Correct
Q89. Which account is increased with a debit and decreased with a credit?
- A.Cash✓ Correct
- B.Accounts Payable
- C.Contributed Capital
- D.Retained Earnings
Q90. The main objective of financial reporting is to provide: 6.
- A.Essential information to internal users of financial reports.
- B.Useful economic information about the business to the external parties for sound✓ Correct
- C.Information to internal users about the cash position of the business.
- D.Information to the Securities Exchange Commission (SEC).
Q91. Which of the following is a detailed record of an individual account in case of large business?
- A.Control Account
- B.Subsidiary Ledger✓ Correct
- C.Balance Sheet
- D.Trial Balance
Q92. In which of the following condition(s) DEBT is regarded as BAD.
- A.Bankruptcy of the debtor
- B.Disappearance of debtor’s business
- C.Failure of repeated attempt to collect the debt
- D.All of the given options✓ Correct
Q93. Which of the following best describes unpresented cheques?
- A.Cheques received on behalf of the business by the bank
- B.Cheques drawn but yet to be recorded in the bank records✓ Correct
- C.Cheques issued by the bank not recorded in business records
- D.Cheques received but yet to be recorded in the bank records
Q94. Accountancy covers which of the following area(s): co
- A.Book-keeping
- B.Accounting
- C.Auditing
- D.All of the given options✓ Correct
Q95. ___________ is the detail of transaction in one's account provided by the bank.
- A.Bank statement✓ Correct
- B.Bank reconciliation statement
- C.Income statement
- D.Financial statement
Q96. All the costs incurred on the incomplete assets up to the balance sheet date must be transferred to:
- A.Capital account
- B.Capital work in progress account✓ Correct
- C.Relevant asset account
- D.Owner's equity account
Q97. Which of the following shows summary of a company's financial position at a specific date? m
- A.Profit & Loss Account
- B.Cash Flow Statement
- C.Balance Sheet✓ Correct
- D.Income & Expenditure Account
Q98. Which of the following are the components of General Ledger? 1) Title of account 2) Amount of transaction 3) Date of transaction
- A.(1) & (2) only
- B.(2) & (3) only
- C.(1) & (3) only
- D.(1), (2) & (3)✓ Correct
Q99. Vehicles which are used to supply finished products are called business ________. m
- A.Tangible assets✓ Correct
- B.Intangible assets
- C.Capital
- D.Liabilities
Q100. The basic accounting principle/concept according to which Business is independent from its owner(s) is known as: 6.
- A.Separate Entity Concept✓ Correct
- B.Matching Concept
- C.Going Concern Concept
- D.Materiality Concept 78
Q101. Shares for which amount is paid by public are called ________ shares.
- A.Paid up✓ Correct
- B.Authorized
- C.Bonus shares
- D.All are correct options
Q102. Particulars Rs. Debentures 1, 50, 000 Equity Capital 2, 00,000 General Reserve 90, 000 vu Accumulated profit 60,000 What is debt equity ratio ?
- A.15: 20 (or 3:4)
- B.15:24 (or 5: 8)
- C.15:29✓ Correct
- D.15:35 (or 3: 7)
Q103. The area of accounting concerned with reporting financial information to the interested parties is called:
- A.Cost Accounting
- B.Financial Accounting
- C.Management Accounting✓ Correct
- D.Tax Accounting
Q104. An organization operating with the objective of making profit from the sale of goods or services is called:
- A.Transaction
- B.Business✓ Correct
- C.Society
- D.Trust
Q105. Which of the following essentials are shown in Bank Book? (1) Date of transaction (2) Narration of transaction (3) Cheque number
- A.(1) & (2) only
- B.(2) & (3) only
- C.(1) & (3) only
- D.(1), (2) & (3)✓ Correct
Q106. Which of the following summarizes the cash movements during a specified period?
- A.Trading account
- B.Profit & Loss account
- C.Receipts & Payments account✓ Correct
- D.Balance Sheet
Q107. What type of expenses are paid out of Gross Profit?
- A.Selling Expenses
- B.General Expenses
- C.Financial Expenses
- D.All of the given options✓ Correct
Q108. Following are the inventories of Manufacturing Concern EXCEPT:
- A.Raw material
- B.Work in process
- C.Finished goods
- D.Merchandise inventory✓ Correct
Q109. If, Cost of machine = Rs.400, 000 Useful life = 5 years Residual value = Rs.25, 000 The depreciation of machine per year using straight line method is?
- A.Rs. 160,000
- B.Rs. 96,000
- C.Rs. 75,000✓ Correct
- D.Rs. 57,600
Q110. The Primary objective of providing depreciation is:
- A.To calculate true profit✓ Correct
- B.To show the asset on market value
- C.To reduce tax Burdon
- D.To provide funds for replacement
Q111. Accounting is the language of:
- A.Business✓ Correct
- B.School
- C.Proprietor
- D.Management
Q112. A Bank Reconciliation Statement is prepared to:
- A.Ascertain that the difference between the Cash Book balance and the Bank✓ Correct
- B.Correct errors in the Cash Book or errors in the Bank Statement
- C.Amend the balance of the Bank Statement of the firm
- D.Amend the balance in the Cash Book of the firm
Q113. Which of the following is an item of a debtors control account?
- A.Cash sale
- B.Credit sales✓ Correct
- C.Credit purchase
- D.Cash purchases
Q114. Which of the following is an item of a creditors control account?
- A.Cash purchases
- B.Cash sales
- C.Credit sales
- D.Credit purchase✓ Correct
Q115. Which of the following item must be recorded in the adjusted Cash Book in order to bring it in line with the entries in the Bank Statement?
- A.Bank charges✓ Correct
- B.An error on the Bank Statement
- C.An uncredited deposit
- D.An unpresented cheque
Q116. When closing stock is given in trial balance, then it will effect:
- A.Trading account only
- B.Balance sheet only✓ Correct
- C.Owner's equity only
- D.Both Trading account and Balance sheet
Q117. Which of the following is (are) NOT example(s) of distributable profit?
- A.None of the given options
- B.General reserve
- C.Accumulated profit and loss (credit balance)
- D.Revaluation reserves✓ Correct
Q118. When income exceeds expenses in a specific time period is known as:
- A.Savings
- B.Net profit✓ Correct
- C.Gross profit
- D.Operating profit
Q119. Which of the following transaction have NO affect on stockholders' equity?
- A.Purchase of building on credit✓ Correct
- B.Dividends to stockholders
- C.Net loss
- D.Investment in cash by stockholders
Q120. In balance sheet fixed assets are shown at:
- A.Residual value
- B.Market value
- C.Fair value
- D.Written down value (WDV)✓ Correct
Showing the first 120 of 299 MCQs.