TasDia Network
TasDia Network

MCQs 1: The Bank Reconciliation Statement is prepared?

To rectify the mistakes in the Cash Book To arrive at the Bank Balance To arrive at the Cash Balance To bring out the reasons for the difference between the Balance as per Cash Book and the Balance as per Bank Statement
Answer Explanation

MCQs 2: Bank reconciliation is a statement prepared to reconcile__________?

Trial balance Cash book Bank A/c Cash as per cash book with bank balance as per bank pass book
Answer Explanation

MCQs 3: Bank reconciliation statement is a part of_________?

Cash book Trial balance Auditors report None of these
Answer Explanation

MCQs 4: Benefits of preparing Bank Reconciliation Statement includes___________?

It bring out any errors committed in preparation of Cash book / Bank Pass Book Highlights under delay in clearance of cheques deposited but not credited Help know actual bank balance All the three
Answer Explanation

MCQs 5: Debit balance as per bank pass book mean_____________?

Surplus cash Bank Overdraft Terms deposits with bank None of these
Answer Explanation

MCQs 6: Which of the following is not a cause of difference in balance as per cash book and balance as per bank pass book___________?

Errors in cash book Errors in pass book Cheques deposited and cleared Cheques issued but not presented for payment
Answer Explanation

MCQs 7: Provision is created for____________?

Unknown Liabilities Known Liabilities Creation of Secret Reserves All the Three
Answer Explanation

MCQs 8: Which of the following is not a method of charging depreciation?

Straight line Method Written down value Method Discounted present value Method Sum of digits Method
Answer Explanation

MCQs 9: A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on SLM method, find the profit or loss on sale of the car?

20,000 Loss 20,000 Profit 10,000 Loss 10,000 Profit
Answer Explanation

MCQs 10: A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on written down value method, find the profit or loss on sale of the Second hand car?

Loss of 20,000 Loss of 22,000 Loss of 11,000 Profit of 11,000
Answer Explanation

MCQs 11: Which of the following is true with respect to providing depreciation under diminishing balance method?

The amount of depreciation keeps increasing every year while the rate of depreciation keeps decreasing The amount of depreciation and the rate of depreciation decrease every year The amount of depreciation decreases while the rate of depreciation remains the same The amount of depreciation and the rate of depreciation increases every year
Answer Explanation

MCQs 12: Which of the following statements best describes the purpose of depreciation?

Regular reduction of asset value to correspond to changes in market value as the asset ages A process of correlating the market value of an asset with its gradual decline in physical efficiency Allocation of cost in a manner that will ensure that Plant and Equipment items are not carried on the Balance Sheet in excess of net realizable value Allocation of the cost of an asset to the periods in which services are received from the asset
Answer Explanation

MCQs 13: The main objective of providing depreciation is to?

Calculate the true profit Show the true financial position in the Balance Sheet Provide funds for replacement of fixed assets Both A. and B. above
Answer Explanation

MCQs 14: Depreciation is a process of____________?

Valuation Valuation and allocation Allocation Appropriation
Answer Explanation

MCQs 15: The portion of the acquisition cost of the asset yet to be allocated is known as___________?

Written down value Accumulated value Salvage value Residual Value
Answer Explanation

MCQs 16: Which of the following statements is true with regard to written down value method of depreciation?
i. The rate at which the asset is written off reduces year after year
ii. The amount of depreciation provided reduces from year to year
iii. The rate of depreciation as well as the amount of depreciation reduce year after year
iv. The value of the asset gets reduced to zero over a period of time

Only (i) above Only (ii) above Both (i) and (ii) above (i),(ii) and (iii) above
Answer Explanation

MCQs 17: The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is_________?

Depreciation Physical deterioration of the asset Decrease in market value of the asset Valuation of an asset at a point of time
Answer Explanation

MCQs 18: Which of the following factors are primarily considered to determine the economic life of an asset?

Passage of time, asset usage, and obsolescence Tax regulations and SEBI guidelines Tax regulations and asset usage SEBI guidelines and Asset usage
Answer Explanation

MCQs 19: In which of the following methods, the cost of the asset is spread over in equal proportion during its useful economic life?

Straight-line method Written down value method Units-of-production method Sum-of-the years‘-digits method
Answer Explanation

MCQs 20: Which of the following statements is correct about Depreciation?

Depreciation cannot be provided in case of loss in a financial year Depreciation is a charge against profit Depreciation is provided in the books only when there is profit Depreciation is an appropriation of profit
Answer Explanation

Related Topics

About Us | Contact Us | Privacy Policy
ABOUT US
Category
Who We Are

TasDia Network, this platform not only provides you the best educational stuff but besides this, we are creating thousands of new ideas to making your signature and planning much more on a single platform.

© 2020-2023, TasDia Network

All rights of the publication are reserved by tasdia.com.