Accounting Multiple Choice Questions with answers | Download PDF for MCQs

MCQs BASED ON TRADING ACCOUNT AND PROFIT LOSS ACCOUNT

1. Current liabilities are such obligation which are to be satisfied

a) Within 2 year

b) Within one year

b) Within 3 year

d) None of these

2. Computes owned by a firm are classified as

a) Fixed assets

b) Current assets

c) Liquid assets

d) None of these

3. Loss on sale of car is debited to

a) Profit and loss account

b) Car Account

c) Depreciation Account

d) None of these

4. Sales are equal to

a) Cost of good sold + gross profit

b) Cost of good sold - Gross profit

c) Gross profit = cost of good sales

d) None of these

5. Expense paid for sale trade is shown

a) On the debit side of trading account

b) On the debit side of profit + loss account

c) On deduction from capital in the balance sheet

d) On addition to capital in the balance sheet

6. Goodwill is a

a) Fictitious assets

b) Tangible assets

c) Intangible assets

d) Expenses

7. Return inwards appearing in the trial balance is deducted from

a) Purchases

b) Sales

c) Return outward

d) None of these

36

8. Depreciation is provided on

a) current assets

b) Intangible assets

c) fixed assets

d) All of these

9. Outstanding income is

a) An asset

b) A liability

c) An expense

d) An income

10. The Manager is entitled to commission of 5% of profit before deducting the commission, the profit is 2100, therefore the commission will be

a) 100

b) 105

c) 111

d) 115

11. Prepared rent is shown as

a) An assets

b) A Liability

c) An expenses

d) Income

12. Stock is value at

a) Cash price

b) Net realisable value

c) Cost of market price which over is less

d) None of these

13. Capital in the beginning of the accounting year is ascertained by preparing

a) Debtor Account

b) Cash Account

c) Statement of affairs

d) None of these

14. Single entity system can be adopted by

a) Small firm

b) Joint stock companies

c) co-operative societies

d) None of these

15. Profit = Capital at the end + ? - Capital introduced - Capital in the beginning

a) Sales

b) Drawings

c) Net Purchases

d) None of these

16. From incomplete records, it is possible to prepare

a) Ledger Accounts

b) Trial Balance

c) Statement of affairs

d) None of these


Answers To Trading P/L account

1) B

2) A

3) A

4) A

5) B

6) C

7) B

8) C

9) B

10) B

11) A

12) C

13) C

14) A

15) B

16) C


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