Accounting mcqs

✅ The correct answer is B.
Current liabilities and current assets items of balance sheet are useful in evaluating a company’s liquidity.

✅ The correct answer is D.
Accrued expenses account with normal balance is shown at the credit side of a trial balance.

✅ The correct answer is A.
In case of debit balance, the words To Balance b/d are written on the debit side.

✅ The correct answer is D.
Petty cash balance is Asset. The petty cash amount may appear as the first or second item listed in the current asset section of the balance sheet.

✅ The correct answer is B.
Trial Balance is commonly prepared at the end of an accounting period. It is usually prepared at the end of an accounting period to assist in the drafting of financial statements.

✅ The correct answer is D.
Correction concept is not regarded as the fundamental concept that is identified by IAS-1.

✅ The correct answer is A.
Accounts receivable & inventory are the examples of Current assets. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets. Current assets are important to businesses because they can be used to fund day-to-day business operations and to pay for the ongoing operating expenses.

✅ The correct answer is C.
Drawings will generally show a debit balance. A drawing account is an accounting record maintained to track money withdrawn from a business by its owners. A drawing account is used primarily for businesses that are taxed as sole proprietorships or partnerships.

✅ The correct answer is A.
Prepaid expenses are considered as Asset. Prepaid expenses are future expenses that have been paid in advance. You can think of prepaid expenses as costs that have been paid but have not yet been used up or have not yet expired. The amount of prepaid expenses that have not yet expired are reported on a company’s balance sheet as an asset.

✅ The correct answer is D.
XYZ firm has imported a machine from abroad. Refundable tax is NOT the element of the machine’s cost.