Which of the following accounts are closed at the end of an accounting period?

Related Mcqs:

1. During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?

   A. Rs. 33,000
   B. Rs. 25,000
   C. Rs. 17,000
   D. Rs. 8,000

2. A chart of accounts generally start with which of the following types of accounts?

   A. Assets accounts
   B. liability accounts
   C. Cash accounts
   D. Revenue accounts

3. The real accounts are accounts of Assets, liabilities and ___________?

   A. Expenses
   B. Revenues
   C. Capital
   D. Drawing

4. Which of the following can be considered as the most important phase of accounting cycle and it is the primarily objective of financial accounting?

   A. Identifying transactions
   B. Preparing “T Accounts”
   C. Preparing financial statements
   D. Preparing trial balances

5. The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is_________?

   A. Depreciation
   B. Physical deterioration of the asset
   C. Decrease in market value of the asset
   D. Valuation of an asset at a point of time

6. Average Accounting Return is a measure of accounting profit relative to:

   A. Book value
   B. Intrinsic value
   C. Cost
   D. Market value

7. Which of the following accounts will be debited if the business’s owner withdraws cash from business for his personal use?

   A. Drawings
   B. Cash
   C. Business
   D. Stock

8. The balance of which of the following accounts do not disappear, once they are debited/credited to Trading Account?

   A. Sales
   B. Purchases
   C. Inward returns
   D. Closing stock

9. On scrutiny of a firm‘s books of accounts, it was observed that the following errors have occurred in the previous years but have not yet been rectified.

   i. Depreciation for 2011-2012- 7,000 understated
   ii. Accrued expenses as at March 31, 2013 – 10,000 understated
   The impact of this on the reported net income for the year ending March 31, 2013 is

   A. 7,000 Overstated
   B. 10,000 Overstated
   C. 17,000 Understated
   D. 17,000 Overstated

10. Which of the following entries is correct in respect of reserve for discounts on accounts payable?

    A. Debit P&L A/c and Credit Reserve for Discount on Accounts Payable A/c
    B. Debit Accounts Payable A/c and Credit P&L A/c
    C. Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c
    D. Debit Reserve for Discount on Accounts Payable A/c and credit Accounts Payable A/c