Accounting Quiz

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Accounting Multiple Choice Questions (MCQs). Accounting Quiz from 6 to 10.
FEATURED ACCOUNTING QUIZ
1. The capital of a business would change as a result of:
(A) Raw material being purchased on credit
(B) Non-current assets being purchased on credit
(C) A supplier being paid by cheque
(D) Wages being paid in cash

2. Which of the following is an indirect cost?
(A) carriage inwards
(B) production wages
(C) production materials
(D) factory rent

3. There is a debit balance on the office expenses at the end of the financial year. In which section of the balance sheet this will be recorded?
(A) capital
(B) current assets
(C) current liabilities
(D) fixed assets

ANSWERS: FEATURED ACCOUNTING QUIZ
1. (D) Wages being paid in cash
2. (D) factory rent
3. (B) current assets (See below for regular accounting quiz)

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6. What from the following is NOT a current asset?
(A) Patent rights
(B) Inventory
(C) Cash
(D) Trade receivables

7. What from the following is NOT a non-current asset?
(A) Capital
(B) Property
(C) Patent rights
(D) Inventory

8. What from the following is/are NOT tangible asset(s)?
I. Patent rights
II. Goodwill
III. Land
(A) I only
(B) II only
(C) I and II only
(D) I, II and III

9. A machine price was $1,000 and was carried through a truck. The truck’s fares were $500. The engineers charged $500 for the installation. The cost of the machine is?
(A) $1,000
(B) $1,500
(C) $2,000
(D) $2,500

10. Depreciable amount =
(A) Cost of an asset + Residual value
(B) Cost of an asset – Residual value
(C) Residual value – Cost of an asset
(D) None of these

ANSWERS: ACCOUNTING QUIZ
6. (A) Patent rights
7. (D) Inventory
8. (C) I and II only
9. (C) $2,000
10. (B) Cost of an asset – Residual value