Accounting Multiple Choice Questions

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Accounting Multiple Choice Questions (MCQs) from 16 to 20.
FEATURED ACCOUNTING QUESTIONS
1. Cash invested in the business is known as
(A) current asset
(B) fixed asset
(C) liabilities
(D) capital

2. Expenditures which provide benefit in the future are called
(A) current expenditure
(B) capital expenditure
(C) outstanding expenditure
(D) revenue expenditure

ANSWERS: ACCOUNTING QUESTIONS
1. (D) capital
2. (B) capital expenditure

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16. The expected disposal value of the asset (after deducting disposal costs) at the end of its expected useful life is called
(A) residual value
(B) net book value
(C) depreciation
(D) substance over form

17. The figure that appears in the statement of financial position, after the depreciation, is known as
(A) depreciation
(B) substance over form
(C) residual value
(D) net book value

18. Which from the following asset is NOT depreciated?
I. Advances
II. Land
III. Machinery
(A) I only
(B) II only
(C) I and II
(D) II and III

19. Depreciation is normally charged as
(A) payable
(B) receivable
(C) expenses
(D) advances

20. 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?
(A) $75,000
(B) $60,000
(C) $30,000
(D) $15,000

ANSWERS: ACCOUNTING MULTIPLE CHOICE QUESTIONS
16. (A) residual value
17. (D) net book value
18. (C) I and II
19. (C) expenses
20. (B) $60,000