MCQs for finance Accounts Assistant - test 2

Comment your answers in the comment box and match the ones given at the end of this post. 

1. Which of the following is not a sub-head under the current assets? 
a) Bank overdraft
b) Redeemable debentures
c) provision for doubtful debts
d) Accounts payable

2. No debenture redemption reserve is required for debentures issued by :
(a) manufacturing companies
(b) infrastructure companies
(c) banking companies 

(d) trading companies

3. Provision is created by debiting :

(a) Profit and Loss Account
(b) None of these
(c) Profit and Loss Appropriation Account
(d) Trading Account

4. The depreciation charged on an asset will be credited to :
(a) Depreciation A/c
(b) Asset A/c
(c) Bank A/c
(d) Cash A/c
5. An alternative term used for accumulated depreciation expenses?
(a) Provision for depreciation
(b) Cumulative depreciation
(c) Targeted depreciation
(d) Depletion

6. Salaries paid to office staff is shown in the statement of profit and loss under :
(a) Cost of materials consumed
(b) Other expenses
(c) Employees benefit expenses
(d) None of these

7. Gross profit is
A) Cost of goods sold + Opening stock
B) Sales – cost of goods sold
C) Sales – Purchases
D) Net profit – expenses

8. Suppliers personal a/c are seen in the
A) Sales Ledger
B) Nominal ledger
C) Purchases Ledger
D) General Ledger

9. If you want to ensure that your money will be secured if cheques sent are wasted in the post, you should
A) Always pay by cash
B) Cross your Cheques ‘Account Payee only, Not Negotiable.’
C) Always get the money in person
D) Not use the postal service in future

10. Discounts received are
A) Buyer of goods granted discount by seller
B) Deducted when we receive cash
C) Given by us when we sell goods on credit
D) None of these

Answers:

1. Ans. b) Redeemable debentures

2. Ans. c) banking companies

3. Answer: (a) Profit and Loss Account

4. Answer: (b) Asset A/c

5. Ans. (a) Provision for depreciation

Explanation:

Provision for depreciation is an alternative term used for accumulated depreciation expenses. Depreciation expense is recognized on the income statement as a non-cash expense that reduces the company’s net income.

6. Ans. C) Employees benefit expenses

7. Answer: B) Sales – cost of goods sold

8. Answer: C) Purchase Ledger

9. Answer: B) Cross your Cheques ‘Account Payee only, Not Negotiable.’

10. Answer: A) Buyer of goods granted discount by seller

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