MCQ Bank
Wood used to make a table in manufacturing concern is:
- A) Finished goods
- B) Stock in trade
- C) Raw material
- D) Work in process
If cost of equipment is Rs. 108.000. useful life is 10 years and its residual value is Rs. 8.000. Then Deprecation for the year using straight line method is ____________.
- A) Rs. 100.000
- B) Rs. 10.800
- C) Rs. 10.000
- D) Rs. 800
If cost of a plant is Rs. 90.000. total estimated output is 30.000 units and units produced during year 2019 are 7.000. Then calculate deprecation for year 2019 if deprecation rate per unit is Rs. 3.
- A) Rs. 270.000
- B) Rs. 90.000
- C) Rs. 21.000
- D) Rs. 180.000
If cost of a plant is Rs. 90.000. total estimated hours are 11.000 and number of hours worked during year 2019 are 8.000. Then calculate depreciation for year 2019 if deprecation rate per hour is Rs. 6.
- A) Rs. 30.000
- B) Rs. 48.000
- C) Rs. 540.000
- D) Rs. 66.000
If cost of equipment is Rs. 108.000. useful life is 10 years and its residual value is Rs. 8.000. Then Deprecation for the 3rd year using straight line method is ____________.
- A) Rs. 10.000
- B) Rs. 9.800
- C) Rs. 8.820
- D) Rs. 8.000
ABC Corporation has recently purchased a used production plant. Its purchase price is Rs. 100.000; cost incurred to remove plant from site Rs. 4.000 and installation cost is Rs. 5.000. It will be initially recognized in books at Rs. ___________.
- A) Rs. 100.000
- B) Rs. 104.000
- C) Rs. 105.000
- D) Rs. 109.000
In case of writing off debtors as bad debt. ____________ is debited.
- A) Provision account
- B) Receivable account
- C) Payable account
- D) Bad debts account
When the sum of more than one error cancels the accounting effect of each other. it is called:
- A) Compensating error
- B) Error of omission
- C) Error of original entry
- D) Error of principle
While preparing a Debtors Control Account. Debit side posted items cause:
- A) Increase in debtors’ balance
- B) Both increase and decrease in debtors’ balance
- C) Decrease in debtors’ balance
- D) Increase in creditors’ balance
Mostly. control accounts are maintained for:
- A) All of the given options
- B) Trade receivables
- C) Trade payables
- D) Inventory