Commerce: Accountancy MCQs
6. Question
Which one of the following is not a generally accepted accounting principle?
Sales, revenues and incomes should not be anticipated or materially overstated
There must be proper cut of accounting for inventories and liabilities for costs and expenses
Non recurring an extraordinary gains and losses should be recognized in the period they accrue.
long term investments in securities should ordinarily be carried at market quotations
Answer
7. Question
The underlying accounting principle necessitating amortization of intangible asset is/are
Cost concept
Realisation concept
Matching concept
Both (a) and (b)
Both (b) and (c)
Answer
8. Question
Charging of Capital Expenditure to Revenue results in
Secret Reserve
Revenue Reserve
Capital Reserve
None of these
Answer
9. Question
Which of the following is not capital expendure
Payment for Machinery
Wages for construction of building
Payment for salary
Both (a) and (b)
Answer
10. Question
Wages paid to Mohan for erecting a machine should be debited to
Wages a/c
Machine a/c
Mohan a/c
Cash a/c
Answer