Accounting mcq questions and answers for competitive exams

a

The lower of cost, or net realisable value

b

Net realisable value

c

Actual cost

d

Sales value

a

The main purpose of accounting standards is to provide information to the user as to the basis on which the accounts have been prepared

b

They lay down the norms of accounting policies and practices by way of codes or guidelines

c

Accounting standards codify the generally accepted accounting principles

d

All of the above

a

Leases

b

Borrowing Costs

c

Segment Reporting

d

Earning Per share

a

1 : 1

b

2 :1

c

3 :1

d

4 :1

a

No time disparity

b

No capital Budget constraints

c

Independent Investment project

d

None of the above

a

would prevail at a future date

b

prevailing today for future delivery

c

prevailing today for immediate delivery

d

none of the above

a

By the issue of free fully paid shares known as bonus shares

b

By making partly paid shares as fully paid without getting cash from the shareholders

c

Both (a) and (b)

d

By cash payment to shareholders

a

Stock

b

Regular

c

Property

d

Zero Dividend

a

Net Lease

b

Finance Lease

c

Leverage Lease

d

Operating Lease

a

Planning of expenditure for assets

b

Planning of Purchase

c

Planning of Sales

d

All of the above

a

Legal fee to acquire property is capital expenditure

b

Overhaul expenses of secondhand machinery purchased are revenue expenditure

c

Expenses in connection with obtaining a licence for running the cinema is capital expenditure

d

Amount spent for the construction of temporary hunts, which were necessary for the construction of the cinema house and were demolished when the cinema house was ready, is capital expenditure

a

world price

b

support price of the EU

c

amount by which the EU's support price exceeds the world price

d

amount by which the world price exceeds the EU's support price

a

Shareholders

b

Board of Directors

c

Company Law Board

d

Registrar of Companies

a

Annuity method

b

Sinking fund method

c

Diminishing value method

d

Sum of years digits method

a

Total assets

b

Current - total liabilities

c

Total assets - total liabilities

d

Fixed assets - current assets