Accounting Mcqs

The balance of Revaluation Reserve pertaining to an asset that has been disposed off or retired can be transferred to?

(A) General Reserve A/c

(B) Profit & Loss A/c

(C) Asset A/c

(D) Capital Reserve A/c

Submitted By: Ali Uppal


At the time of preparation of financial accounts, bad debt recovered account will be transferred to?

(A) Debtors A/c

(B) Profit & Loss A/c

(C) Profit & Loss Adjustment A/c

(D) Profit & Loss Appropriation A/c

Submitted By: Ali Uppal


The adjustment to be made for prepaid expenses is____________?

(A) Add prepaid expenses to respective expenses and show it as an asset

(B) Deduct prepaid expenses from respective expenses and show it as an asset

(C) Add prepaid expenses to respective expenses and show it as a liability

(D) Deduct prepaid expenses from respective expenses and show it as a liability

Submitted By: Ali Uppal


Bad debts recovered is:

(A) Credited to P&L A/c

(B) Debited to P&L A/c

(C) Reduced from debtors in Balance Sheet

(D) Added to debtors in Balance Sheet

Submitted By: Ali Uppal


A club paid subscription fees of `1,400. Out of which ` 200 is prepaid. In such case

(A) P&L A/C is debited with 1,400

(B) P&L A/C is debited with 1,200

(C) 200 is shown as current asset

(D) Both

Submitted By: Ali Uppal


Depreciation appearing in the Trial Balance should be?

(A) Debited to P&L A/c

(B) Shown as liability in Balance Sheet

(C) Reduced from related asset in Balance Sheet

(D) Both

Submitted By: Ali Uppal


Insurance prepaid is shown as:___________?

(A) Current Asset

(B) Current Liability

(C) Fixed Asset

(D) Income

Submitted By: Ali Uppal


Outstanding salaries is shown as___________?

(A) An Asset in the Balance Sheet

(B) A Liability

(C) By adjusting it in the P & L A/c

(D) Both

Submitted By: Ali Uppal


Property, Plant and Equipment are conventionally presented in the Balance Sheet at _________?

(A) Replacement cost – Accumulated Depreciation

(B) Historical cost – Salvage Value

(C) Historical cost – Depreciation portion thereof

(D) Original cost adjusted for general price-level changes

Submitted By: Ali Uppal


LIFO stands for__________?

(A)   Lots in , Few out

(B)   Link input, Format Output

(C)   Last input, First Output

(D)   Last in, First Out

Submitted By: Ali Uppal