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Accounting Quiz — Q41 to Q60

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Q41

Wages paid for machine installation debited in wages accounts, it is

An error of Commission An error of omission An error of Principal Compensating Error

Q42

If amount of any known liability can’t be determined with substantial accuracy then:-

A provision should be created A contingent liability should be created A definite liability should be created A reserve should be created

Q43

Which of the following statement is not true about provision?

It is an appropriation of Profit A charge against profits Shown as liability in Balance Sheet Uncertainty as a matter of financial prudence

Q44

Which one is not a cause of depreciation?

Passage of time Price Inflation Obsolescence Natural wear and tear

Q45

Depreciation is calculated from the date of

Purchase of Assets Receipt of Assets Assets Put to use Assets Installed

Q46

If the amount of any known liability can be determined with accuracy:-

A liability should be provided A provision should be provided A reserve be created A contingent liability should be disclosed

Q47

Which of the following is the example of Capital Reserve?

Workman’s compensation fund General Reserve Debenture Redemption Reserve Premium on issue of Share

Q48

Loss on sale of Assets is shown in:-

Credit side of Trial Balance Profit & Loss Appropriation Account Trading Account None of the above

Q50

Reserve is created by debiting:-

Trading Account Profit & Loss Account Profit & Loss Appropriation Account Income & Expenditure Account

Q51

Debenture Redemption Reserve can be created out of:-

Current year profits In case current year loss then from retained earnings of previous years Both a & b above None of the above

Q52

Fixed assets loss its value due to:-

Amortisation Deprecation Both a & b above Provisions

Q53

Which of the following best describes the ‘Depreciation’?

Value of Fixed Assets at end of the year Verification of Assets Allocation of value of fixed assets over its useful life Decrease in market value of assets

Q54

Depreciation is

Deferred revenue expenditure Capital Expenditure Revenue Expenditure None of the above

Q55

Working Capital is:-

Fixed Assets-Current Assets Current Assets-Current Liability Liquid Assets-Current Liability Cash and cash equivalents

Q57

Statement of Affairs is prepared to:-

Know about Assets Know about Liability Calculate Capital Know Financial Position

Q58

Statement of Affairs is a:-

Statement of Income & Expenditure Statement of Assets & Liabilities Summary of Cash Transactions Summary of Credit transactions

Q59

If books of accounts kept under Single Entry System, opening stock is ascertained by preparing:-

Opening Stock Account Stock Register Memorandum Trading Account Opening Statement of Affairs

Q60

What should be added in closing capital to calculate opening capital:

Loss & Drawings Profit only Profit & Drawings Loss only

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