Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Section 20 Section 21 Section 22 Section 23 Section 24 Section 25

81.
XYZ firm has imported a machine from abroad. Which of the following is NOT the element of the machine's cost?

A. Purchase price of machine

B. Import duty

C. Demmurage charges

D. Refundable tax

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82.
Which of the following foxed assets is not depreciated in the ordinary circumstances?

A. Plant & Machinery

B. Building account

C. Land

D. Equipment's

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83.
In the calculation of depreciation, all of the following items are actually estimates except:

A. Useful life

B. Residual value

C. Historical cost

D. Salvage value

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84.
Under which method of depreciation, the amount of depreciation expenses remains constant throughout the life of the asset?

A. Reducing balance method

B. Unit of activity method

C. Straight line method

D. None of these

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85.
An increase in the value of fixed asset is referred to as:

A. Depreciation

B. Appreciation

C. Market capitalization

D. Reverse depreciation

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86.
The term _______ is generally used for the depreciation of natural resources

A. Amortization

B. Depletion

C. Appreciation

D. Disposal value

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87.
Which of the following is a biological asset?

A. Land

B. Building

C. Environment

D. Living plants and animals

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88.
Which of the following is the effect on net income if a business decreases its provision for bad debts?

A. It will increase net income

B. It will decrease net income

C. No effect

D. It will increase gross profit and net income

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89.
A firm has not recorded the bad debts by mistake. Which of the following is the effect of bad debt ommission?

A. Net profit would decrease

B. Net profit would increase

C. Gross profit would overstate

D. Gross profit would understate

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90.
When it is certain that a debt won't be recovered. Which of the following is correct?

A. Provision for bad debt is created

B. Account receivable is credited

C. Bad debts is credited

D. Sales is debited

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Accounting MCQ Questions and Solutions with Explanations | Commerce

81. XYZ firm has imported a machine from abroad. Which of the following is NOT the element of the machine's cost?

Answer & Solution

82. Which of the following foxed assets is not depreciated in the ordinary circumstances?

Answer & Solution

83. In the calculation of depreciation, all of the following items are actually estimates except:

Answer & Solution

84. Under which method of depreciation, the amount of depreciation expenses remains constant throughout the life of the asset?

Answer & Solution

85. An increase in the value of fixed asset is referred to as:

Answer & Solution

86. The term _______ is generally used for the depreciation of natural resources

Answer & Solution

87. Which of the following is a biological asset?

Answer & Solution

88. Which of the following is the effect on net income if a business decreases its provision for bad debts?

Answer & Solution

89. A firm has not recorded the bad debts by mistake. Which of the following is the effect of bad debt ommission?

Answer & Solution

90. When it is certain that a debt won't be recovered. Which of the following is correct?

Answer & Solution

Read More Section(Accounting)

81.
XYZ firm has imported a machine from abroad. Which of the following is NOT the element of the machine's cost?

82.
Which of the following foxed assets is not depreciated in the ordinary circumstances?

83.
In the calculation of depreciation, all of the following items are actually estimates except:

84.
Under which method of depreciation, the amount of depreciation expenses remains constant throughout the life of the asset?

85.
An increase in the value of fixed asset is referred to as:

86.
The term _______ is generally used for the depreciation of natural resources

87.
Which of the following is a biological asset?

88.
Which of the following is the effect on net income if a business decreases its provision for bad debts?

89.
A firm has not recorded the bad debts by mistake. Which of the following is the effect of bad debt ommission?

90.
When it is certain that a debt won't be recovered. Which of the following is correct?