Accounting Objective Questions and Answers

267. Stock as on 5^th January - Rs. 27,000; purchases between 31^st December and 5^th January - Rs. 700; cost of sales between 31^st December and 5^th January - Rs. 1,500 what was the stock on 31^st December?

268. Which of the following ratios is a Primary Ratio:

A. Current Ratio

B. Return on Investment (ROI)

C. Debt-Equity Ratio

D. Inventory-Turnover Ratio

Discussion

269. The term _______ is generally used for the depreciation of natural resources

270. In case of 'installment payment system', total interest receivable by the seller is credited to

A. Interest Suspense Account

271. Depreciation takes into account

A. Fall in value of asset

B. Decrease in usefulness

C. Decrease in the obsolescence of the asset

D. Decrease in asset due to wear and tear

Discussion

272. Match List-I (Items of expenditure and receipt) with List-II (Nature of expenditure and receipt) and select the correct answer using the options given below the lists:

List-I	List-II
a. Compensation paid to retrenched workers of the factory for the loss of service	1. Capital expenditure
b. Legal expenses incurred in connection with the purchase of a plot of land	2. Capital receipt
c. Compensation received from the government for the compulsory removal of a business premises to another place	3. Revenue expenditure
d. Sale proceeds of merchandise (goods)	4. Revenue receipt

A. a-1, b-3, c-4, d-2

B. a-1, b-3, c-2, d-4

C. a-3, b-1, c-4, d-2

D. a-3, b-1, c-2, d-4

Discussion

273. The first accounting standard issued by the Accounting Standard Board of India (ASBI) relates to:

A. Valuation of Inventories

B. Depreciation Accounting

C. Disclosure of Accounting Policies

D. Revenue Recognition

Discussion

Accounting MCQs