Accounting — Mixed Practice — Part 4: 39 MCQs with Explanations

Mistake in Cash Book is the correct answer to “Which of these items are taken into consideration for preparation of adjusted Cash Book”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Posting is the process of Entering in the ledger the information contained in the ledger .

A book wherein various accounts are opened is called Ledger .

The periodic total of sales day book is posted to Sales A/c .

The periodic total of purchase day book is posted to Purchase A/c .

Capital expenses are shown in Balance Sheet .

Revenue receipts are shown in Trading and Profit and Loss A/c .

Goodwill A/c is a/an Intangible Asset .

In a three column cash book Petty cash column does not exist.

Salary remained outstanding is the correct answer to “Which of these transactions will not be recorded in cash book”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

The closing balance of a petty cash book is a / an Assets .

Which column of a cash book will not have credit balance Cash column .

Petty cash balance is a/an Assets .

Postage stamps is the correct answer to “Which of these is a Part of cash in hand”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Building A/c is the correct answer to “Which of the following is a Real A/c”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Outstanding Salary A/c is the correct answer to “Which of the following is a representative Personal A/c”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Rent A/c is the correct answer to “Which of the following is a Nominal A/c”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

All the three is the correct answer to “Which of these errors affect only one account”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

All the three is the correct answer to “Which of these errors affect two or more accounts”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

500 being expense on travelling expense credited to travelling expenses is the correct answer to “Which of the following is an one sided error”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Damage paid on account of breach of a contract to supply certain goods is the correct answer to “Which one of the following should be considered a revenue expenditure”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Compensation paid to Directors on termination of their services is the correct answer to “Which one of the following is a capital expenditure”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Administration and general expenses is the correct answer to “Which of the following items should not be capitalized relating to fixed assets”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Closing stock is the correct answer to “The balance of which of the following accounts do not disappear, once they are debited/credited to Trading Account”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Gross Profit will decrease by 3,320 is the correct answer to “If goods worth 1,750 returned to a supplier is wrongly entered in sales return book as 1,570, then”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

The accountant of Leo Ltd. recorded a payment by cheque to a creditor for supply of materials as 1,340.56. The bank recorded the cheque at its correct amount of 3,140.56. The Company has not passed any rectification entries and the error is not detected through the bank reconciliation. The impact of this error is The favorable bank balance as per Pass Book is less than the Bank balance as per Cash book.

Sales tax paid in connection with the purchase of office equipment is the correct answer to “Which of the following should not be treated as revenue expenditure”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Results in the acquisition of a permanent asset is the correct answer to “Capital expenditure is an expenditure which”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Any donation received for a specific purpose is a Capital receipts .

Installation charges paid in conjunction with the purchase of Office Equipment is the correct answer to “Which of the following is an item of capital expenditure”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Deduct income received in advance from respective income and show it as a liability is the correct answer to “The adjustment to be made for income received in advance is:”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Error of principle involves an incorrect allocation of expenditure or receipt between capital and revenue is the correct answer to “Which of the following is true”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

A credit balance in the Pass Book indicates excess of deposits over withdrawals is the correct answer to “Which of the following statements is true”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Moving average method is the correct answer to “Which of the following methods is not a practical way of realizing revenue”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

The amount payable to a person as consideration for the use of rights vested in him is Royalty.

Error of principle is the correct answer to “Buildings account is debited with an amount towards repairs. This is an example of”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

The retained earnings was overstated during 2011-2012 and retained earnings will be understated during 2012-2013 is the correct answer to “During the year 2011-2012, the value of closing inventory was overstated by 25,000. Which of the following is true”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

The total of the sales journal has not been posted to the Sales Account is the correct answer to “Which of the following errors is an error of omission”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.

Cash account is the correct answer to “Which of the following accounts will be credited if a company purchases building for cash”. Items of this type are drawn from the Accounting — Mixed Practice — Part 4 syllabus of Pakistani competitive exams, where the fact is tested verbatim.