For real accounts, the rule is: MCQ with Answer and Explanation
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Practice More Accountancy and Book Keeping Questions
Question #1
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Which of the following decisions relates to 'Capital Structure' in financial management?
Correct Answer: Option B
Explanation:
Capital structure decision determines the proportion of debt and equity.
Capital structure decision determines the proportion of debt and equity.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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A 'Debit Note' is sent by the buyer when returning goods to the supplier. It is used to:
Correct Answer: Option C
Explanation:
The debit note informs the supplier that the buyer has debited the supplier's account.
The debit note informs the supplier that the buyer has debited the supplier's account.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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S1: The Trading Account shows the gross profit or loss. S2: The Profit and Loss Account shows the net profit or loss. Which statement(s) is/are correct?
Correct Answer: Option B
Explanation:
The Trading Account calculates Gross Profit/Loss by matching direct expenses with net sales. The Profit and Loss Account calculates Net Profit/Loss by matching all indirect expenses and incomes with the Gross Profit. Both are correct.
The Trading Account calculates Gross Profit/Loss by matching direct expenses with net sales. The Profit and Loss Account calculates Net Profit/Loss by matching all indirect expenses and incomes with the Gross Profit. Both are correct.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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