Accounting mcqs

✅ The correct answer is B.
Documentary evidence, in a specific format used to record the details of a transaction is known as Voucher. Voucher is documentary evidence in a specific format that records the details of a transaction. It is accompanied by the evidence of transaction.

✅ The correct answer is D.
The estimated value at which an asset is expected to be sold after the end of its useful life is called Residual value, Salvage value and Scrap value.

✅ The correct answer is A.
Error of partial omission will affect the Trial Balance. This error occurs when a transaction that should have been posted as a debit is posted as credit, for example, in a cash sale, sales are debited and cash is credited.

✅ The correct answer is D.
A Trial Balance contains the balances of Real A/c and Nominal A/c and Personal A/c.

✅ The correct answer is C.
Right shares are the shares Offered to the existing equity shareholders. A rights offering (rights issue) is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings.

✅ The correct answer is C.
Provision for cash discount on debtors is a percentage of Net debtors less provision for doubtful debts.

✅ The correct answer is B.
Cash Account is Real account. A real account is an account that retains and rolls forward its ending balance from period to period. The areas in the balance sheet in which real accounts are found are assets, liabilities, and equity.

✅ The correct answer is B.
Commercial accounting is based on Double entry book keeping. Commercial accounting is something about providing right informatin to right people on right time. In commercial accounting, the system is maintained by the business organizations. The main objective of commercial accounting is to know the profit or loss and the financial position of any business.

✅ The correct answer is A.
Ledger accounts is the common base for preparing a trial balance. This process is known as ‘balancing off’ the general ledger accounts. The trial balance can then be prepared by listing each closing balance from the general ledger accounts as either a debit or a credit balance.

✅ The correct answer is D.
Cash purchases is recorded in Cash payments journal. Cash payment journal or cash disbursement journal is used to record all cash payments made by the business.