Multiple Choice Questions in Accounting ( Part 4)

We are taking our Jan. 2011's accounting topics for writing multiple choice questions in accounting (part 4). If you are not able to choose correct answer out of 4 options of any accounting question, you have facility to read the accounting topic in which that correct answer has been mentioned.

Questions 1. Why are accounting standard important?

(a)  For making correct financial statements

(b) For correct valuation of inventories

(c) For correct treatment of depreciation and lease and investment

(d) All of above

Reference for correct answer this multiple choice question in accounting : Relevance and Significance of Accounting Standard
 

Question 2 What is the meaning of "Decrease the stock in revenue statement"?

(a) To consume the stock with buying new stock.

(b) To buy new stock

(c) Sale price of consumed stock

(d) To consume the stock (at cost) without buying new stock.

Reference for correct answer this multiple choice question in accounting :  Increase / Decrease in Stock in Trade in Financial Results of Co.





Question 3. Which part of preliminary expenses will show in profit and loss account?

(a) Not written off part

(b) Written off part

(c) Whole part of preliminary expenses

(d) It is the desire of accountant which part of preliminary expenses  will he add in profit and loss account.

Reference for correct answer this multiple choice question in accounting : Treatment of Preliminary Expenses


Question 4. What is Journal Entry for Purchase of Assets for Non Trading Concern?

(a) Purchase  Account Dr. XXXX

Cash or Name or Party Account ( In case purchase on credit ) Cr. XXXX

(b) Cash Account Dr. XXXX

Asset Account ( In case purchase on credit ) Cr. XXXX

(c) Particular Asset Account Dr. XXXX

Cash or Name or Party Account ( In case purchase on credit ) Cr. XXXX

(d) Particular Asset Account Dr. XXXX

Purchase Account ( In case purchase on credit ) Cr. XXXX

 Reference for correct answer this multiple choice question in accounting : What is Journal Entry for Purchase of Assets for Non Trading Concern?


Question 5. What does single entry accounting mean?

(a) It means to record cash  only.

(b) It means to record credit only.

(c) It means to record debit only.

(d) It means to record one side of entry only.


 Reference for correct answer this multiple choice question in accounting : Single Entry Accounting


Question 6. Why is debt-equity ratio important?

(a) Base of approve or reject any bank loan.

(b) Base of NPV.

(c) Base of making balance sheet.

(d) Base of all above.

 Reference for correct answer this multiple choice question in accounting : The Debt To Equity Ratio ( Simplified )

Question 7. How to increase the value of company in case of financial distress?

(a) Debt Restructuring

(b) To Sale all assets of company without any delay.

(c) To rob other companies.

(d) Not to give salary to employees.

Reference for correct answer this multiple choice question in accounting : Financial Distress ( Wikipedia )

Question 8.  What is financial forecasting?

(a) A financial forecasting  is  an estimate of level of losses of other companies in the market.

(b) A financial forecasting  is  an estimate of sales, purchase, earning and value of shares in the market.

(c) A financial forecasting  is  an estimate of salary  of all employees  in your company.

(d) A financial forecasting  is  an estimate of marginal cost curve.

Reference for correct answer this multiple choice question in accounting : Financial Forecasting

Question 9. Which is better investment?


(a) Investment in education is better than investment in share market

(b) Investment in share market is better than investment in education

(c) Investment in share market without any knowledge.

(d) Investment in online scam

Reference for correct answer this multiple choice question in accounting : Investment in Share Market without Knowledge

Question 10. Why is Accounting Difficult?

(a) I do the question of Accounting, but my answer comes wrong.

(b) My Balance sheet does not match when I try to make it.

(c) I think, Accounting is under only for intelligence guys.

(d) Not any of above.

Reference for correct answer this multiple choice question in accounting : Why is Accounting Difficult

Related : Accounting Test Online