Adjusting Entries MCQs 2

Previous Practice: Adjusting Entries (I) MCQs

Next Practice: Adjusted Trial Balance MCQs

MCQs 1 To 10

Click The Option and See Result

1. What will be the Book value of asset if its original cost is Rs. 50,000; accumulated depreciation is Rs. 20,000; and depreciation expense for the year is Rs. 10,000?

(a) Rs. 70,000

(b) Rs. 80,000

(d) Rs. 40,000

Correct! Wrong!

2. Amount owing from the debtor which is not expected to be received?

(a) Debit

(b) Bad debt

(d) None of the above

Correct! Wrong!

3. Net realizable value of accounts receivable is?

(a) Accounts Receivable plus Allowance for Doubtful Account

(b) The same as Accounts Receivable because all accounts receivable are assumed to be collectible

(d) None

Correct! Wrong!

4. A provision is?

(a) The recognition of a probable future obligation

(b) A fund of money and investments

(d) Non of Above

Correct! Wrong!

5. What is an expense that a business has incurred but has not yet paid?

(a) Accrued Revenue

(b) Prepaid Expense

(d) Accrued Expense

Correct! Wrong!

6. The amount reserved for doubtful receivables?

(a) Doubtful debts

(b) Bad debts

(d) All of them

Correct! Wrong!

7. If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible?

(a) Uncollectible Accounts Expense

(b) Accounts Receivable

(d) Interest Expense

Correct! Wrong!

8. Which of the following asset is not depreciated?

(a) Factory Buildings

(b) Office Equipment

(d) Land

Correct! Wrong!

9. Recovery of bad debts is treated as?

(a) Revenue

(b) Expenses

(d) Loss

Correct! Wrong!

10. What will the effects on financial statements, if machinery is depreciated @ 10%?

(a) It will be treated as an expense in income statement only

(b) It will be subtracted from concerned asset only

(d) It will be treated as an expense in income statement & subtracted from concerned assets in Balance Sheet

Correct! Wrong!

Adjustment Entries II (1-10)

Super Genius ***

Excellent ***

Very Good **

Good *

Fair

Fail

>> Read Adjusting Entries.

MCQs 11 To 20

Click The Option and See Result

11. The amount of depreciation charged on machinery will be debited to?

(a) Machinery account

(b) Depreciation account

(d) Capital account

Correct! Wrong!

12. Accrued expenses affects the?

(a) Assets and expenses

(b) Liabilities and revenues

(d) Expenses and liabilities

Correct! Wrong!

13. Wages and salaries payable are classified as a?

(a) Current liability

(b) Long-term liability

(d) Intangible liability

Correct! Wrong!

14. When an account becomes uncollectible and must be written off?

(a) Allowance for Doubtful Accounts should be credited

(b) Accounts Receivable should be credited

(d) Sales should be debited

Correct! Wrong!

15. The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed?

(a) Liability

(b) Contra asset

(d) Market value

Correct! Wrong!

16. Expired cost of any fixed assets is called?

(a) Decrease

(b) Devalued

(d) None of them

Correct! Wrong!

17. Which of the following is correct for Doubtful Debt?

(a) It is shown in balance sheet

(b) It is an expense of business

(d) All of above

Correct! Wrong!

18. Bad debts written off (given in adjustment) always affect the?

(a) Debtors account

(b) Creditors account

(d) Capital account

Correct! Wrong!

19. Under the allowance method, writing off a specific customer’s uncollectible account?

(a) Affects only balance sheet accounts

(b) Affects both balance sheet and income statement accounts

(d) Is not acceptable practice

Correct! Wrong!

20. Equipment cost Rs. 36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be?

(a) Rs. 600

(b) Rs. 720

(d) Rs. 12

Correct! Wrong!

Adjustment Entries II (11-20)

Super Genius ***

Excellent ***

Very Good **

Good

Fair

Fail

>>> Practice Adjusting Entries Problems and Solutions.

Search

Back To Accounting MCQs

Next To Adjusted Trial Balance MCQs

Related Exams

Principles of Accounting

Accounting Questions

Accounting Problems

Accounting Exam Questions

Accounting Workbook

References

Mukharji, A., & Hanif, M. (2003). Financial Accounting (Vol. 1). New Delhi: Tata McGraw-Hill Publishing Co.

Narayanswami, R. (2008). Financial Accounting: A Managerial Perspective. (3rd, Ed.) New Delhi: Prentice Hall of India.

Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.

1 Comment

عائشہ on January 19, 2021 at 3:55 pm

I conceive this web site has very superb written content material posts.
Reply

Adjusting Entries MCQs 2

MCQs 1 To 10

Click The Option and See Result

1. What will be the Book value of asset if its original cost is Rs. 50,000; accumulated depreciation is Rs. 20,000; and depreciation expense for the year is Rs. 10,000?

2. Amount owing from the debtor which is not expected to be received?

3. Net realizable value of accounts receivable is?

4. A provision is?

5. What is an expense that a business has incurred but has not yet paid?

6. The amount reserved for doubtful receivables?

7. If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible?

8. Which of the following asset is not depreciated?

9. Recovery of bad debts is treated as?

10. What will the effects on financial statements, if machinery is depreciated @ 10%?

MCQs 11 To 20

Click The Option and See Result

11. The amount of depreciation charged on machinery will be debited to?

12. Accrued expenses affects the?

13. Wages and salaries payable are classified as a?

14. When an account becomes uncollectible and must be written off?

15. The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed?

16. Expired cost of any fixed assets is called?

17. Which of the following is correct for Doubtful Debt?

18. Bad debts written off (given in adjustment) always affect the?

19. Under the allowance method, writing off a specific customer’s uncollectible account?

20. Equipment cost Rs. 36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be?

Search

Related Questions

Related Problems

Related Exams

References

1 Comment

Submit a Comment Cancel reply