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CSS[FPSC-U.S. Civil Service Commission]-USA — Quiz
[USA] CURRENT AFFAIRS MCQ ACCOUNTS
50 questions · Test your knowledge
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[USA] CURRENT AFFAIRS MCQ ACCOUNTS
1
Which of the following is part of the double entry system in Accounting?
A
Cash book
B
General journal
C
Sales journal
D
Trial balance
2
In which of the following book returns inwards are recorded?
A
Sales returns book
B
Purchase returns book
C
Cash receipts book
D
Cash payment book
3
What is the net amount of cash paid to the supplier if: Credit purchases $12,000 out of which $2,000 were rejected and subsequently returned to the supplier. Supplier allowed a discount of 1% on settlement of amount.
A
$10,000
B
$12,000
C
$9,900
D
$11,880
4
The main source(s) of Generally Accepted Accounting Principles (GAAP) is/are:
A
Company Law
B
Accounting standards
C
Both A and B
D
None of these
5
What standards are used to prepare financial statements by most of the countries and companies
A
International Financial Reporting Standards
B
International Financial Accounting Standards
C
International Accounting & Auditing Standards
D
International Risk Reporting Standards
6
The correct form of Accounting equation is
A
Assets + Liabilities = Equity
B
Assets - Liabilities = Equity
C
Assets - Receivable = Equity
D
Assets + Receivable = Equity
7
A company sold goods worth $5,000 on 5 June and $10,000 on 28 June. The company received the first payment on 25 June and second on 7 July. The company prepared the financial statement on 30 June. What would be the total sale on the financial statement?
A
$0
B
$5,000
C
$10,000
D
$15,000
8
Advance payments are recognized as
A
receivable
B
payable
C
bad debt
D
none of these
9
What from the following is NOT a current asset?
A
Patent rights
B
Inventory
C
Cash
D
Trade receivables
10
What from the following is NOT a non-current asset?
A
Capital
B
Property
C
Patent rights
D
Inventory
11
A machine price was $1,000 and was carried through a truck. The trucks fares were $500. The engineers charged $500 for the installation. The cost of the machine is?
A
$1,000
B
$1,500
C
$2,000
D
$2,500
12
Depreciable amount =
A
Cost of an asset + Residual value
B
Cost of an asset - Residual value
C
Residual value - Cost of an asset
D
None of these
13
The accounting process of allocation cost of intangible assets is called
A
Amortization
B
Depletion
C
Going Concern
D
Residual Value
14
The process of recording consumption of natural resources (or wasting assets) is called
A
Amortization
B
Depletion
C
Going Concern
D
Residual Value
15
The concept that the enterprise will continue in a foreseeable future is known as
A
Amortization
B
Depletion
C
Going Concern
D
Residual Value
16
What from the following is NOT a capital expense?
A
Purchase of property
B
Purchase of office equipment
C
Replacement of a vehicle,
D
Repair of a vehicle
17
An item of equipment cost $300,000 and has a residual value of $50,000 at the end of its expected useful life of four years. What is the depreciable amount?
A
$50,000
B
$250,000
C
$300,000
D
$350,000
18
The expected disposal value of the asset (after deducting disposal costs) at the end of its expected useful life is called
A
residual value
B
net book value
C
depreciation
D
substance over form
19
The figure that appears in the statement of financial position, after the depreciation, is known as
A
depreciation
B
substance over form
C
residual value
D
net book value
20
Depreciation is normally charged as
A
payable
B
receivable
C
expenses
D
advances
21
A company purchases a non-current asset in Year 1 for $90,000. The depreciation charge is $15,000. What net book value would be recorded in financial position statement (or balance sheet) at the end of Year-2?
A
$75,000
B
$60,000
C
$30,000
D
$15,000
22
Raw materials that are remaining at the end of the reporting period are treated as
A
liabilities
B
expenses
C
fixed assets
D
current assets
23
The goods that have been sold to the customers are treated as _____ in the financial statements.
A
inventories
B
expenses
C
income
D
debt
24
The goods that have not been sold to the customers till the end of the reporting period are considered as
A
inventories
B
expenses
C
sales
D
purchases
25
The selling price of some goods is $1500 and cost to sell the goods is $200. What is the Net Realizable Value (NRV)?
A
$1000
B
$1200
C
$1300
D
$1500
26
The selling price of some under-process goods is $1500, cost to finally produce the goods is $300, and cost to sell the goods is $200. What is the Net Realizable Value (NRV)?
A
$1000
B
$1200
C
$1300
D
$1500
27
A bank overdraft is shown as a/an _____ balance in the bank statement.
A
debit
B
credit
C
credit - debit
D
none of these
28
Which from the following is included in the cost of purchases?
A
Abnormal loss
B
Freight in
C
Rent of store
D
Administrative Salaries
29
Cheques issued but not presented, cause the bank statement balance to be ________ the cash book balance.
A
greater than
B
less than
C
equal to
D
the two statements are irrelevant
30
The capital of a business is $100,000 and the liabilities are $40,000. What are the total assets?
A
$40,000
B
$60,000
C
$100,000
D
$140,000
31
Any transaction which cannot be recorded in any book of prime entry is recorded in
A
Cash book
B
Petty cash book
C
General journal
D
Day books
32
The withdrawal of inventory by the owner for personal use should appear in the trading account as a deduction from
A
sales
B
purchases
C
overdrafts
D
none of these
33
A company had opening inventory of $200,000. Sales and purchases during the period were of $400,000 and $80,000 respectively. What is the gross profit for the period if the closing inventory was worth $100,000?
A
$20,000
B
$120,000
C
$220,000
D
$320,000
34
Which from the following costs are included in conversion costs?
A
Carriage in
B
Carriage outwards
C
Commission of selling staff
D
Supervisors wages
35
Goods which originally cost $800 were sold for $1,000. In the accounting equation Net Assets will?
A
Rise by $1,000
B
Rise by $200
C
Fall by $1,000
D
Fall by $200
36
A debit entry usually represents
A
Assets and Expenses
B
Assets and Income
C
Liabilities and Income
D
Liabilities and Expenses
37
The capital of a business would change as a result of:
A
Raw material being purchased on credit
B
Non-current assets being purchased on credit
C
A supplier being paid by cheque
D
Wages being paid in cash
38
Which of the following is an indirect cost?
A
carriage inwards
B
production wages
C
production materials
D
factory rent
39
There is a debit balance on the office expenses at the end of the financial year. In which section of the balance sheet this will be recorded?
A
capital
B
current assets
C
current liabilities
D
fixed assets
40
Which of the following is not a business transaction?
A
Purchasing office supplies
B
Hiring a new employee
C
Paying interest on a business loan
D
Receiving fees for services
41
A company is owned by its
A
directors
B
employees
C
shareholders
D
managers
42
The goods which are purchased for the purpose of resale are known as
A
inventory
B
merchandise
C
purchases
D
traded goods
43
Cash invested in the business is known as
A
current asset
B
fixed asset
C
liabilities
D
capital
44
Expenditures which provide benefit in the future period are known as
A
Revenue expenditure
B
Outstanding expenditure
C
Current expenditure
D
Capital expenditure
45
Which of the following is a capital transaction?
A
Purchase of goods
B
Payment of wages
C
Sale of goods
D
Purchase of machinery
46
Financial statements are mainly prepared for
A
Directors
B
Shareholders
C
Employees
D
Managers
47
Interim audit is performed before the end of the accounting period, normally by the
A
junior staff
B
senior staff
C
whole audit team
D
board of directors
48
Fundamentally, the auditor report gives an opinion on whether the financial statements
A
are in accordance with the national standards
B
are in accordance with the international standards
C
have errors, mistakes, or fraud
D
present fairly the position and results of an entity
49
The _____ certify or guarantee that the financial statements are correct.
A
management
B
board of governors
C
auditor
D
auditor does not
50
IFAC is an abbreviation for
A
International Federation of Accountants
B
International Federation of Auditors
C
International Framework for Accounting Concepts
D
International Framework for Auditing Concepts
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