Accounting mcqs

✅ The correct answer is C.
Under Straight line method of depreciation, the amount of depreciation expenses remains constant throughout the life of the asset.

✅ The correct answer is B.
Specialized journals are more adequate for Big businesses.

✅ The correct answer is C.
Stock of a Trading concern consists of Merchandise inventory. Merchandise inventory is the cost of goods on hand and available for sale at any given time. Merchandise inventory (also called Inventory) is a current asset with a normal debit balance meaning a debit will increase and a credit will decrease.

✅ The correct answer is A.
The left side of an account is known as Debit and the right side as Credit. Asset accounts such as Cash, Accounts Receivable, Inventory, and Equipment should have debit balances. Liabilities are on the right side of the accounting equation.

✅ The correct answer is B.
Interest on Capital is expense for the business and is debited to the profit and loss appropriation account.

✅ The correct answer is B.
In profit and loss appropriation account interim dividend is treated. An interim dividend is a dividend payment made before a company’s annual general meeting (AGM) and the release of final financial statements.

✅ The correct answer is B.
The sales journal is used to record all of the company sales on credit. Most often these sales are made up of inventory sales or other merchandise sales.

✅ The correct answer is D.
Bank pass book is also known as Bank statement. A bank passbook or statement is a truncated copy of the record of your account maintained by the bank.

✅ The correct answer is C.
In income statement, gross profit is always equal to Sales – cost of goods sold.

✅ The correct answer is C.
Cash book records Cash payments and cash receipts. A Cash Book is a type of subsidiary book where cash (or) bank receipts and cash (or) bank payments made during a period are recorded in a chronological order.