Accounting mcqs

✅ The correct answer is D.
The party who sends the goods for sales on fixed commission basis is known as Consignor. Person or firm (usually the seller) who delivers a consignment to a carrier for transporting it to a consignee (usually the buyer) named in the transportation documents.

✅ The correct answer is A.
Secret reserve is not shown in the Balance sheet. The term secret reserve refers to a reserve the existence of which is not disclosed in the Balance Sheet. It can be said that there is a surplus of assets over liabilities and that surplus is not disclosed or shown by the Balance Sheet.

✅ The correct answer is B.
Consistency principle requires that the same accounting method should be used from one accounting period to the next.

✅ The correct answer is A.
An expenditure whose benefit is finished or enjoyed immediately is called Expense. An expense is the cost of operations that a company incurs to generate revenue.

✅ The correct answer is D.
Petty cash fund is supposed to be replenished at the end of every accounting period. Replenish means to return the amount of actual cash in the petty cash box back to the amount appearing in the general ledger account Petty Cash. This is done whenever the amount of actual cash in the petty cash box is low and at the end of each accounting period.

✅ The correct answer is D.
Debit balance is the normal balance of a rent expense account. Asset accounts normally have debit balances.

✅ The correct answer is D.
If the opening inventory of a business is undercast, it will Increase gross profit as well as net profit.

✅ The correct answer is D.
Revenue expenditures are recorded in the Manufacturing account, Trading account and Profit & loss account.

✅ The correct answer is B.
Contingent liabilities is not included in the total of Balance Sheet. The contingent liability will be disclosed in the notes to the financial statements.

✅ The correct answer is B.
Depreciation expenses Debit and accumulated depreciation Credit is a double entry for deprecation expenses.