Accounting MCQs with Answers

Which of the following options is not recorded in the Balance sheet?

1. Goodwill
2. Building
3. Rent expenses
4. Cash

____ refer to those goods which satisfy the wants of the consumer directly.

1. Consumption goods
2. Capital goods
3. Producer goods
4. None of these

Which of the following accounts are not closed at the end of an accounting period?

1. Asset accounts
2. Drawing accounts
3. Expense accounts
4. Revenue accounts

Economic order quantity is that quantity at which cost of holding and carrying inventory is:

1. Maximum and equal
2. Minimum and equal
3. It can be maximum or minimum depending upon case to case
4. Minimum and unequal

Which round of international trade negotiations resulted in the creation of the World Trade Organization ?

1. Doha Round of 2003-2007
2. Uruguay Round of 1986-1993
3. Tokyo Round of 1973-1979
4. Kennedy Round of 1964-1967

The reduction or covering of foreign exchange risk is called ?

1. arbitrage
2. intervention
3. speculation
4. hedging

GAAP stands for

1. Generally accepted accounting principles
2. Globally accepted accounting practices
3. Generally accepted accounting policy
4. Generally accepted accounting practices

When the sales increase from Rs 40,000 to Rs 60,000 and profit increases by Rs 5,000, the P/V ratio is —

1. 0.25
2. 6.78
3. 1.00
4. 2.00

Audit fess is a part of _______.

1. administration overhead
2. distribution overhead
3. selling overhead
4. works on cost

Depreciation of fixed assets is an example of:

1. Deferred Revenue Expenditure
2. Capital Expenditure
3. Revenue Expenditure
4. None of these