MCQOPTIONS
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MCQOPTIONS
This section includes 6 Mcqs, each offering curated multiple-choice questions to sharpen your Accounting And Auditing knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
An entry of Rs. 840 being debited to Surbhi ’s A/c as Rs. 480 would be an error of |
| A. | Principle |
| B. | Commission |
| C. | Omission |
| D. | Negligible significance |
| Answer» C. Omission | |
| 2. |
Life insurance premiums received by an insurance company should be classified as |
| A. | accrued asset |
| B. | accrued liability |
| C. | prepaid expense |
| D. | unearned revenue |
| Answer» E. | |
| 3. |
Insurance unexpired account is a ___________ account |
| A. | Personal |
| B. | Nominal |
| C. | Real |
| D. | Fictitious |
| Answer» B. Nominal | |
| 4. |
A company purchased a machinery on 01-01-2015 for a sum of Rs. 60,000. The retail price index on that date was 150. What is the value of machinery according to CPP method on 31st December 2015, When the price index was 200. |
| A. | Rs. 1,00,000 |
| B. | Rs. 90,000 |
| C. | Rs. 80,000 |
| D. | Rs. 70,000 |
| Answer» D. Rs. 70,000 | |
| 5. |
Assertion (A) : Personal transactions of the owners of the business are not recorded in the books.Reasoning (R) : According to the business entity concept, each business enterprise is considered as an accounting unit separate from owners. |
| A. | Both (A) and (R) are correct and (R) is the correct explanation of (A). |
| B. | Both (A) and (R) are correct but (R) is not the correct explanation of (A). |
| C. | (A) is correct but (R) is not correct. |
| D. | (A) is wrong but (R) is correct. |
| Answer» B. Both (A) and (R) are correct but (R) is not the correct explanation of (A). | |
| 6. |
According to the _________concept, the proprietor is treated as a creditor to the extent of his capital. |
| A. | Cost |
| B. | Entity |
| C. | Money measurement |
| D. | Dual aspect |
| Answer» C. Money measurement | |