Accounting Practice MCQ Page 43

Multiple Choice questions for Accounting in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 4176   If the RS. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, debts and provision for bad debts is
  1. a decrease of TS. 1,500
  2. a decrease of RS. 1,500
  3. an increase of RS. 500
  4. an increase of RS. 1,500
Question: 4183   If the Rs. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, bad provision for bad debts would have been
  1. nil
  2. a decrease of Rs. 500
  3. an increase of RS. 500
  4. an increase of RS. 1,500
Question: 4186   If the Rs. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, bad provision for bad debts would have been
  1. nil
  2. a decrease of Rs. 500
  3. an increase of RS. 500
  4. an increase of RS. 1,500
Question: 4190   Which one of the following statements about debtors, bad debts and provisions for bad debts in the incorrect?
  1. Debtors usually appear as a current asset in the balance in the balance sheet
  2. provisions for bad debts usually have a debit balance in ledger
  3. The bad debts account usually has a debit balance in the ledger
  4. An increase in the provision for bad debts account will reduce the profit of the firm
Question: 4191   which one of the following types of business is likely to have the largest amount of 'bod debts' ?
  1. A Chinese take away
  2. A newsagent
  3. A bank
  4. A supermarket
Question: 4193   If the sales ledger control has a debit balance of RS. 39,400 it means that
  1. there is RS. 39,400 in the bank account
  2. customers owe you RS. 39,500
  3. you owe supplies rs. 39500
  4. you owe expenses totaling RS. 39,400
Question: 4197   If the purchase ledger control has a credit balance of RS. 48,000 it means that
  1. your bank account is overdrawn by RS. 48,000 customers
  2. customers owe you RS. 48,000
  3. you owe suppliers RS. 48,000
  4. you owe expenses totaling RS. 48,000
Question: 4200   The total of the returns out wards for the month should be entered on the
  1. debit side of the purchase control account
  2. credit side od the purchase control account
  3. credit side of the sales control account
  4. debit side of the sales control account
Question: 4201   Additional freight costs charged control account
  1. credit side of the purchase control account
  2. credit side of the purchase control account
  3. credit side of the sales control account
  4. debit side of the sales control account
Question: 4202   Cash discounts received should be entered on the
  1. debit side of the purchase control account
  2. credit side of the purchase control account
  3. credit side of the sales cbntrol account
  4. debit side of the sales control account
Question: 4207   At the end of the financial year, once the balances on the control account are agreed with the total balances from their respective ledgers, they should appear in the balance sheet as
  1. fictitious assets and debentures
  2. debtors' and creditors' balance
  3. fixed assets and long term liabilities
  4. fixed assets and share capital
Question: 4210   A cheque received which has now been dishonored should be entered on the
  1. debit side of the purchase control account
  2. credit side of the purchase control account
  3. credit side of the sales control account
  4. debit side of the sales control account