(A) Patent rights
(B) Inventory
(C) Cash
(D) Trade receivables
Category: Accounting Mcqs
Advance payments are recognized as
(A) receivable
(B) payable
(C) bad debt
(D) none of these
What would be the total sale on the financial statement?
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
The correct form of Accounting equation is
(A) Assets + Liabilities = Equity
(B) Assets – Liabilities = Equity
(C) Assets – Receivable = Equity
(D) Assets + Receivable = Equity
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
The main source of Generally Accepted Accounting Principles GAAP are
(A) Company Law
(B) Accounting standards
(C) Both A and B
(D) None of these
Which of the following business entity is considered as a “legal person” in the eye of law?
(A) Sole trader
(B) Partnership
(C) Company
(D) All of the above
Salaries paid to partners is an:
(A) Appropriation of profit among partners
(B) Income of the partnership firm
(C) Expense to partnership firm
(D) None of the above
Which of the following is a debit entry to a partner’s current account?
(A) Salary
(B) Drawings
(C) Share of profit
(D) Interest on capital