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 Section 26 Section 27 Section 28 Section 29 Section 30

1.
Which one of the following methods of inventory costing yields highest taxable income?

A. FIFO

B. LIFO

C. AVCO or averrage cost

D. Standard cost method

Answer & Solution Discuss in Board Save for Later

2.
Which one of the following methods of inventory costing produces ending stock cost close to the market value of the inventory?

A. FIFO

B. LIFO

C. AVCO or averrage cost

D. None of the above

Answer & Solution Discuss in Board Save for Later

3.
Which one of the following inventory costing methods is supposed to issue the most recently purchased goods?

A. FIFO

B. LIFO

C. AVCO or averrage cost

D. Moving average

Answer & Solution Discuss in Board Save for Later

4.
Opening inventory + Net purchases = ?

A. Ending inventory

B. Closing stock

C. Cost of goods manufactured

D. Cost of goods available for sale

Answer & Solution Discuss in Board Save for Later

5.
Cost of goods available for sale - closing inventory = ?

A. Opening inventiry

B. Cost of opening finished goods inventory

C. Work in progress ending inventory

D. Cost of goods sold

Answer & Solution Discuss in Board Save for Later

6.
NRV or net realizable value of inventory is the expected selling price or market value less

A. Carry value of the inventory

B. Expenses necessary to complete sale

C. Cost of the stock

D. Replacement cost

Answer & Solution Discuss in Board Save for Later

7.
Under which method of inventory costing, a pre-determined cost is assigned to all items of inventory?

A. Replacement cost method

B. Standard cost method

C. AVCO or average cost

D. FIFO method

Answer & Solution Discuss in Board Save for Later

8.
Term 'Credit' means _____ by the business

A. Receiving of benefits

B. It has no effect on business

C. Providing benefits

D. It depends upon items

Answer & Solution Discuss in Board Save for Later

9.
When a liability is reduced or decreased, it is recorded on the:

A. Left or credit side of the account

B. Right or debit side of the account

C. Right or credit side of the account

D. Left or debit side of the account

Answer & Solution Discuss in Board Save for Later

10.
When capital is increased by an amount, it is recorded on the:

A. Left or credit side of the account

B. Right or debit side of the account

C. Right or credit side of the account

D. Left or debit side of the account

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

Accounting MCQ Questions and Solutions with Explanations | Commerce

1. Which one of the following methods of inventory costing yields highest taxable income?

Answer & Solution

2. Which one of the following methods of inventory costing produces ending stock cost close to the market value of the inventory?

Answer & Solution

3. Which one of the following inventory costing methods is supposed to issue the most recently purchased goods?

Answer & Solution

4. Opening inventory + Net purchases = ?

Answer & Solution

5. Cost of goods available for sale - closing inventory = ?

Answer & Solution

6. NRV or net realizable value of inventory is the expected selling price or market value less

Answer & Solution

7. Under which method of inventory costing, a pre-determined cost is assigned to all items of inventory?

Answer & Solution

8. Term 'Credit' means _____ by the business

Answer & Solution

9. When a liability is reduced or decreased, it is recorded on the:

Answer & Solution

10. When capital is increased by an amount, it is recorded on the:

Answer & Solution

Read More Section(Accounting)

1.
Which one of the following methods of inventory costing yields highest taxable income?

2.
Which one of the following methods of inventory costing produces ending stock cost close to the market value of the inventory?

3.
Which one of the following inventory costing methods is supposed to issue the most recently purchased goods?

4.
Opening inventory + Net purchases = ?

5.
Cost of goods available for sale - closing inventory = ?

6.
NRV or net realizable value of inventory is the expected selling price or market value less

7.
Under which method of inventory costing, a pre-determined cost is assigned to all items of inventory?

8.
Term 'Credit' means _____ by the business

9.
When a liability is reduced or decreased, it is recorded on the:

10.
When capital is increased by an amount, it is recorded on the: