Accounting mcqs

✅ ANSWER: A
FIFO methods of inventory costing yields highest taxable income. First-in, first-out, or FIFO, applies the earliest costs first. In rising markets, FIFO yields the lowest cost of goods sold and the highest taxable income.

✅ ANSWER: C
Noting charges are paid at the time of Dishonor of the bill. When a Bill of Exchange is dishonoured, in order to prove the fact, the drawer (or holder) may get the bill of exchange noted and protested through a public official known as “Notary Public” Noting is the recording of the fact of dishonour by a Notary public which becomes an evidence of dishonour.

✅ ANSWER: B
In an account, when credit side total < debit side total, then, the balance is known as Debit balance. It is the positive balance in the left side of the account.

✅ ANSWER: B
When Account receivable is credited it is certain that a debt won’t be recovered.

✅ ANSWER: C
Listed company is quoted company. The CA 2006 definition of ‘quoted company’ in s. 385 refers to companies listed on ‘regulated markets’ including the Main Market, but not AIM.

✅ ANSWER: B
LIFO inventory costing methods is supposed to issue the most recently purchased goods. LIFO, which stands for last-in-first-out, is an inventory valuation method which assumes that the last items placed in inventory are the first sold during an accounting year.

✅ ANSWER: B
American companies prepare their financial statement in Dollars whereas Japanese companies produce financial statement in Yen. This is an example of Unit of measurement concept.

✅ ANSWER: A
Balance c/d is the closing balance of a ledger account.

✅ ANSWER: B
Revenue from sale of product ordinarily is reported as part of earning in the period when the sale is made.

✅ ANSWER: C
Payment of Rs.1000 to bank in discharge of outstanding loan is subject matter of Accounting.