Quiz  /  Accounting Class 11 MCQ Questions With Answers

  • 1. 
    Paid the house rent of employee in cash

  • Dr. Cash Cr. Rent Expense
  • Dr. Rent Expense Cr. Accounts Receivable
  • Dr. Accounts Payable Cr. Rent Expense
  • Dr. Rent Expense Cr. Cash

  • 2. 
    What is the term for balancing a company's cash account to its bank account?

  • Account balancing
  • Bank reconciliation
  • Adjustment
  • Cleared balance

  • 3. 
    Service Income performed on account

  • Dr. Accounts Receivable Cr. Service Income
  • Dr. Service Income Cr. Accounts Receivable
  • Dr. Cash Cr. Accounts Payable
  • Dr. Service Income Cr. Accounts Receivable

  • 4. 
    Service Income performed for cash and credit

  • Dr. Service Income Cr. Cash Cr. Accounts Receivable
  • Dr. Accounts PayableDr. Cash Cr. Service Income
  • Dr. CashDr. Accounts Receivable Cr. Service Income
  • Dr. Service Income Cr. Cash Cr. Accounts Payable

  • 5. 
    A bank reconciliation statement is prepared by?

  • Banker
  • Accountant of the business
  • Auditors
  • Registrars

  • 6. 
    Purchased addition equipment by credit and in cash

  • Dr. CashDr. Equipment Cr. Accounts Payable
  • Dr. Accounts PayableDr. Cash Cr. Equipment
  • Dr. Equipment Cr. Accounts Payable Cr. Cash
  • Dr. EquipmentDr. Accounts Payable Cr. Cash

  • 7. 
    Which action will improve the current ratio?

  • providing a cash discount to trade receivables
  • requesting a longer payment period from suppliers
  • selling non-current assets for cash
  • increasing a bank overdraft

  • 8. 
    A book-keeper compared the business bank statement with the cash book. He then updated the cash book and finally prepared a bank reconciliation statement. Why was the bank reconciliation statement prepared?

  • to ensure no transactions had been omitted from the cash book.
  • to establish the value of unpresented cheques.
  • to explain the difference between the cash book balance and the bank statement  balance.
  • to find out if any cheques had been dishonoured.

  • 9. 
    Received payment from service rendered

  • Dr. Cash Cr. Accounts Receivable
  • Dr. Accounts Receivable Cr. Cash
  • Dr. Service Income Cr. Cash
  • Dr. Cash Cr. Accounts Receivable

  • 10. 
    A company is classifying its costs. It discovers that for any level of output between 10 000 and 15 000 units the freight cost per unit is always the same figure of $2 per unit. Of which type of cost is this an example?

  • fixed cost
  • semi variable cost
  • stepped cost
  • variable cost

  • 11. 
    The issued ordinary share capital of a company at the beginning of a period was $240 000 (nominal value $0.60 per share). A rights issue of one share for every five held was made during the period at a price of $0.90 per share. At that time the market price was $1.10 per share. What was the issued ordinary share capital after the rights issue?

  • $292500
  • $312000
  • $328000
  • $288000

  • 12. 
    Unfavourable balance means?

  • Credit balance in cash book
  • Credit balance in bank statement
  • Debit balance in cash book
  • Debit balance in petty cash book

  • 13. 
    Investment by owner

  • Dr. Cash Cr. Revenue
  • Dr. Owner's Capital Cr. Cash
  • Dr. Cash Cr. Accounts Receivable
  • Dr. Cash Cr. Owner's Capital

  • 14. 
    Payment of supplies purchased on credit

  • Dr. Supplies Cr. Accounts Payable
  • Dr. Cash Cr. Accounts Payable
  • Dr. Accounts Payable Cr. Cash
  • Dr. Accounts Payable Cr. Supplies

  • 15. 
    Uncollected cheques are also known as?

  • Outstanding cheques
  • Uncleared cheques
  • Outstation cheques
  • Both A & B

  • 16. 
    Which statement about ordinary shares is not correct?

  • Shareholders receive return on investment before other investor groups.
  • They are the riskiest form of investment.
  • They carry a variable rate of dividends.
  • They entitle the shareholder to part ownership.

  • 17. 
    A company purchased a lorry for $50000 on 1 January 2015. It has an estimated residual value of $10 000 and a four-year life. The company charges depreciation monthly on a straight-line basis. What will the charge for depreciation be for the year to 30 June 2015?

  • $5000
  • $6250
  • $10000
  • $12500

  • 18. 
    Payment of Telephone expenses

  • Dr. Telephone Cr. Cash
  • Dr. Telephone Cr. Accounts Payable
  • Dr. Accounts Receivable Cr. Telephone
  • Dr. Cash Cr. Telephone

  • 19. 
    Purchased of supplies for cash

  • Dr. Cash Cr. Supplies
  • Dr. Supplies Cr. Accounts Payable
  • Dr. Supplies Cr. Cash
  • Dr. Supplies Cr. Income

  • 20. 
    Why is depreciation provided on non-current assets?

  • so that they are shown at market value
  • so that the cost is allocated to periods that benefit from them
  • so that there is enough cash in the business to replace them
  • so that the entity concept is applied

  • 21. 
    The main purpose of preparing a bank reconciliation statement is?

  • Part of a Bank Statement
  • Part of the Cash Book
  • A separate statement
  • A sub-division of a journal

  • 22. 
    In the cash book, bank charges are recorded on the?

  • Credit side
  • Debit side
  • Both A & B
  • None of the above

  • 23. 
    Purchase of supplies on credit

  • Dr. Cash Cr. Accounts Payable
  • Dr. Supplies Cr. Accounts Payable
  • Dr. Supplies Cr. Accounts Receivable
  • Dr. Supplies Cr. Cash

  • 24. 
    When check is not paid by the bank, it is called?

  • Honoured
  • Endorsed
  • Dishonoured
  • Both A & B

  • 25. 
    An investor owns 10 000 5% preference shares in Howdo Limited. One year Howdo Limited does not have enough profits to pay the preference dividend. The investor expects the profits to improve and he thinks the directors will pay the outstanding dividend in the following year. Which type of preference shares does the investor own?

  • cumulative
  • non-cumulative
  • participating
  • redeemable
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