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NTS CURRENT AFFAIRS ACCOUNTING MCQ SET 1
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1. According to John Dewey, school is a ________ institution, and education is a ________ process.
social, social
social, philosophical
philosophical, philosophical
environmental, psychological
2. According to John Dewey, schools must prepare students for
present life
future life
entrepreneurship
research
3. According to Rousseau, at what age a person ready to have a companion of the opposite sex?
16
17
18
19
4. The field of study concerned with the construction of thought processes, including remembering, problem solving, and decision-making is called
Education
Pedagogy
Cognitive Development
Epistemology
5. Jean Piaget proposed __________ stages of Cognitive Development.
3
4
5
6
6. The more often a particular ability is used the __________ it becomes.
more important
less important
stronger
weaker
7. The longer a particular ability is unused the __________ it becomes.
more important
less important
stronger
weaker
8. The more parts of your brain you use, the more likely you are to __________ information.
use
miss
misuse
retain
9. The conclusion of a deductive argument is
certain
experience
observation
probable
10. The truth of the conclusion of an inductive argument is
certain
experience
observation
probable
11. The process of reasoning from one or more given statements to reach a logically certain conclusion is called
Deductive Reasoning
Inductive Reasoning
Qualitative Reasoning
Quantitative Reasoning
12. The reasoning in which the given statements are viewed as supplying strong evidence for the truth of the conclusion is called
Deductive Reasoning
Inductive Reasoning
Qualitative Reasoning
Quantitative Reasoning
13. The main source(s) of Generally Accepted Accounting Principles (GAAP) is/are:
Company Law
Accounting standards
Both A and B
None of these
14. What standards are used to prepare financial statements by most of the countries and companies
International Financial Reporting Standards
International Financial Accounting Standards
International Accounting & Auditing Standards
International Risk Reporting Standards
15. The correct form of Accounting equation is
Assets + Liabilities = Equity
Assets - Liabilities = Equity
Assets - Receivable = Equity
Assets + Receivable = Equity
16. A company sold goods worth $5,000 on 5 June and $10,000 on 28 June. The company received the first payment on 25 June and second on 7 July. The company prepared the financial statement on 30 June. What would be the total sale on the financial statement?
$0
$5,000
$10,000
$15,000
17. Advance payments are recognized as
receivable
payable
bad debt
none of these
18. What from the following is NOT a current asset?
Patent rights
Inventory
Cash
Trade receivables
19. What from the following is NOT a non-current asset?
Capital
Property
Patent rights
Inventory
20. A machine price was $1,000 and was carried through a truck. The trucks fares were $500. The engineers charged $500 for the installation. The cost of the machine is?
$1,000
$1,500
$2,000
$2,500
21. Depreciable amount =
Cost of an asset + Residual value
Cost of an asset - Residual value
Residual value - Cost of an asset
None of these
22. The accounting process of allocation cost of intangible assets is called
Amortization
Depletion
Going Concern
Residual Value
23. The process of recording consumption of natural resources (or wasting assets) is called
Amortization
Depletion
Going Concern
Residual Value
24. The concept that the enterprise will continue in a foreseeable future is known as
Amortization
Depletion
Going Concern
Residual Value
25. What from the following is NOT a capital expense?
Purchase of property
Purchase of office equipment
Replacement of a vehicle,
Repair of a vehicle
26. An item of equipment cost $300,000 and has a residual value of $50,000 at the end of its expected useful life of four years. What is the depreciable amount?
$50,000
$250,000
$300,000
$350,000
27. The expected disposal value of the asset (after deducting disposal costs) at the end of its expected useful life is called
residual value
net book value
depreciation
substance over form
28. The figure that appears in the statement of financial position, after the depreciation, is known as
depreciation
substance over form
residual value
net book value
29. Depreciation is normally charged as
payable
receivable
expenses
advances
30. A company purchases a non-current asset in Year 1 for $90,000. The depreciation charge is $15,000. What net book value would be recorded in financial position statement (or balance sheet) at the end of Year-2?
$75,000
$60,000
$30,000
$15,000
31. Raw materials that are remaining at the end of the reporting period are treated as
liabilities
expenses
fixed assets
current assets
32. The goods that have been sold to the customers are treated as _____ in the financial statements.
inventories
expenses
income
debt
33. The goods that have not been sold to the customers till the end of the reporting period are considered as
inventories
expenses
sales
purchases
34. The selling price of some goods is $1500 and cost to sell the goods is $200. What is the Net Realizable Value (NRV)?
$1000
$1200
$1300
$1500
35. The selling price of some under-process goods is $1500, cost to finally produce the goods is $300, and cost to sell the goods is $200. What is the Net Realizable Value (NRV)?
$1000
$1200
$1300
$1500
36. A bank overdraft is shown as a/an _____ balance in the bank statement.
debit
credit
credit - debit
none of these
37. Which from the following is included in the cost of purchases?
Abnormal loss
Freight in
Rent of store
Administrative Salaries
38. Cheques issued but not presented, cause the bank statement balance to be ________ the cash book balance.
greater than
less than
equal to
the two statements are irrelevant
39. The capital of a business is $100,000 and the liabilities are $40,000. What are the total assets?
$40,000
$60,000
$100,000
$140,000
40. Any transaction which cannot be recorded in any book of prime entry is recorded in
Cash book
Petty cash book
General journal
Day books
41. The withdrawal of inventory by the owner for personal use should appear in the trading account as a deduction from
sales
purchases
overdrafts
none of these
42. A company had opening inventory of $200,000. Sales and purchases during the period were of $400,000 and $80,000 respectively. What is the gross profit for the period if the closing inventory was worth $100,000?
$20,000
$120,000
$220,000
$320,000
43. Which from the following costs are included in conversion costs?
Carriage in
Carriage outwards
Commission of selling staff
Supervisor's wages
44. Goods which originally cost $800 were sold for $1,000. In the accounting equation Net Assets will?
Rise by $1,000
Rise by $200
Fall by $1,000
Fall by $200
45. A debit entry usually represents
Assets and Expenses
Assets and Income
Liabilities and Income
Liabilities and Expenses
46. Which of the following is part of the double entry system in Accounting?
Cash book
General journal
Sales journal
Trial balance
47. In which of the following book returns inwards are recorded?
Sales returns book
Purchase returns book
Cash receipts book
Cash payment book
48. What is the net amount of cash paid to the supplier if: Credit purchases $12,000 out of which $2,000 were rejected and subsequently returned to the supplier. Supplier allowed a discount of 1% on settlement of amount.
$10,000
$12,000
$9,900
$11,880
49. A company is owned by its
directors
managers
employs
shareholders
50. Shares of listed companies are traded in the
stock exchange
option market
future exchange
none of these
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