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Accounting mcq questions and answers for competitive exams

Posted on Jun 9, 2022 10:12 PM - 2 years ago

Accounting mcq questions and answers for competitive exams UPSC SSC , SSC CGL, SSC CHSL, upsc Civils , Entrance exams Online test practice online free Quiz, mock practice online

16.

The method of depreciation is applied consistently to provide comparability of the results of the operations of the enterprise from period to period. A change from one method of providing depreciation

a

If it is considered that the change would result in a more appropriate preparation or presentation of the financial statements of the enterprise

b

If the adoption of the new method is required by statute

c

For compliance with an accounting standard

d

All of the above

17.

Following expenses are not shown in Profit & Loss Account

a

Domestic and household expenses

b

Life insurance premium

c

Income tax

d

All of the above

18.

GAAP stands for -

a

General Annual Accounting Principles

b

General Accepted Accounting Practices

c

Generally Accepted Accounting Principles

d

None of theabove

19.

Deduction under section 80C is allowed from

a

Total income

b

Gross total income

c

Tax on total income

d

None of the above

20.

In the calculation of return on shareholders investments the referred investment deals with

a

Preference and equity capital only

b

All appropriations

c

All reserves

d

All of the above

21.

Which is the element of capital budgeting decision?

a

A long term effect

b

A long term investment

c

Capital expenditure project

d

All of the above

22.

Assertion (A ). Performance ratios show where we are going. Reason (R). Balance sheet ratios show where we stand.

a

A is true but R is false

b

A is false but R is true.

c

Both A and R are true and R is the correct explanation of(A )

d

Both A and R are true but R is not a correct explanation of(A )

23.

All of the following are debit items in the balance of payments, except

a

capital outflows

b

merchandise exports

c

private gifts to foreigners

d

foreign aid granted to other nations

24.

Which of the following is not true for cash Budget?

a

Only revenue nature cash flows are shown

b

Proposed issue of share capital in shown as an inflow

c

All inflows would arise before outflows for those periods

d

That shortage or excess of cash would appear in a particular period

25.

Which method does not consider the time value of money

a

Profitability Index

b

Net present value

c

Average rate of return

d

Internal Rate of Return

26.

Du Pont Analysis deals with

a

Capital Budgeting

b

Analysis of Profit

c

Analysis of Fixed Assets

d

Analysis of Current Assets

27.

The information provided by the financial accounting system is

a

Significant

b

Sufficient for smooth, orderly and effi- cient conduct of business

c

Both (a) and (b)

d

Not sufficient for smooth, orderly and efficient conduct of business

28.

If bad debts appear as an adjustment outside the trial balance, then it is adjusted

a

By debiting to bad debts only

b

By debiting to sundry debtors only

c

By debiting bad debts account and crediting sundry debtors account

d

By debiting to sundry debtors account and crediting to bad debts account

29.

Which one of the following is not used to estimate cost of equity capital?

a

External yield criterion

b

Capital asset pricing model

c

Dividend plus growth rate

d

Equity capitalisation approach

30.

The concept of present value is based on the

a

Principle of compound

b

Principle of discounting

c

Both (a) and (b)

d

None of the above