Accounting mcqs

✅ The correct answer is A.
If current assets>current liabilities, a company will have positive working capital. When a company has more current assets than current liabilities, it has positive working capital.

✅ The correct answer is B.
The person from whom the goods are purchased on credit are called Creditors. The person, firm or an organization from whom goods or services are purchased on credit by the business are called creditors of the business.

✅ The correct answer is A.
Bank Reconciliation statement is prepared by Accountant of business. Bank reconciliation statement is generally prepared by the company accountant or the bookkeeper with the purpose to compare the bank’s records with your own company records. It is done on monthly basis whenever bank statement arrives.

✅ The correct answer is A.
Issued capital is taken up by the general public. Such capital can be offered to the public at a later date. It is that part of subscribed capital, which is called by the company to pay on shares allotted. It is not necessary for the company to call for the entire amount on shares subscribed for by shareholders.

✅ The correct answer is B.
The assets which have a limited useful life are termed as Depreciable assets. The assets which are held by a business for the production and supply of goods and services, expected to be used for more than an accounting year and have a limited useful life are known as Depreciable Assets.

✅ The correct answer is D.
Wages, Carriage Inward, Octroi and Purchases, Wages, Coal Expenses sets of expense are the direct expense of business.

✅ The correct answer is A.
A brief explanation recorded below every entry in General Journal is commonly known as Narration. A short explanation of each transaction is written under each entry which is called narration.

✅ The correct answer is D.
Sales and purchase journal doesn’t record Cash sales and purchases.

✅ The correct answer is D.
Both listed and non listed companies are types of Public Limited Companies.

✅ The correct answer is A.
The expenses that have fallen due for payment but not paid are Outstanding expenses. Outstanding expenses are those expenses which have been incurred during the current accounting period and are due to be paid, however, the payment is not made.