Accounting Mcqs


Q.  The beginnings inventory of the current year is overstated by 5,000 and closing inventory is overstated by 12,000. These errors will cause the net income for the current year by

a. 17,000 (overstated.
b. 12,000 (understated.
c. 7,000 (overstated.
d. 7,000 (understated.


ANSWER: See Answer
 
Overstatement of closing stock results in overstatement of profit and overstatement of
opening stock results in understatement of profit. In the instant case, there will be overstatement of
profit by 12,000 – 5,000 = 7,000.
MCQs:  Which of these transactions will not be recorded in cash book?
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MCQs:  The closing balance of a petty cash book is a / an___________?
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MCQs:  Which column of a cash book will not have credit balance___________?
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MCQs:  Petty cash balance is a/an___________?
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MCQs:  Which of these is a Part of cash in hand?
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MCQs:  Which of the following is a Real A/c?
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MCQs:  Which of the following is a representative Personal A/c?
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MCQs:  Which of the following is a Nominal A/c ?
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MCQs:  Goodwill A/c is a/an__________?
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MCQs:  Posting is the process of____________?
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MCQs:  A book wherein various accounts are opened is called____________?
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MCQs:  Which of these is not a special purpose journal?
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MCQs:  The periodic total of sales day book is posted to___________?
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MCQs:  The periodic total of purchase day book is posted to____________?
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MCQs:  Capital expenses are shown in___________?
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MCQs:  Revenue receipts are shown in___________?
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MCQs:  Revenue is generally recognized as being earned at that point of time when?
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MCQs:  Which of the following is a revenue expenses?
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MCQs:  Which of the following is a capital expenditure?
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MCQs:  Which of these types of expenditure would not be treated as a Capital Expenditure?
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