Which of the following is a liability?

Related Mcqs:

1. Liability are arisen from which of the following events?

   A. Present event
   B. Future event
   C. Past event
   D. None of them

2. Which of the following is a current liability?

   A. Prepaid expenses
   B. Trademark
   C. Discount on issue of shares
   D. Outstanding Salaries

3. Which of the following is not a contingent liability?

   A. Debts included in Sundry Debtors which are doubtful in nature
   B. Uncalled liability on partly paid shares
   C. Claims against the company not acknowledged as debts
   D. Arrears of fixed cumulative dividend

4. The normal balance of liability account is____________?

   A. Debit balance
   B. Credit balance
   C. Cash balance
   D. Neither debit nor credit balance

5. Sales on credit is recorded in which of the following journal?

   A. Purchase journal
   B. Sales journal
   C. Purchases return journal
   D. Sales return journal

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

   A. Nominal accounts
   B. Balance sheet accounts
   C. Real accounts
   D. None of them

7. Which of the following is true?

   A. Error of casting affects personal accounts
   B. Omission of a transaction from a subsidiary record affects only one account
   C. Error of carry forward affects two accounts
   D. Error of principle involves an incorrect allocation of expenditure or receipt between capital and revenue

8. Which of the following statements is true with regard to written down value method of depreciation?
   i. The rate at which the asset is written off reduces year after year
   ii. The amount of depreciation provided reduces from year to year
   iii. The rate of depreciation as well as the amount of depreciation reduce year after year
   iv. The value of the asset gets reduced to zero over a period of time

   A. Only (i) above
   B. Only (ii) above
   C. Both (i) and (ii) above
   D. (i),(ii) and (iii) above

9. Which of the following is not true with regard to preparation of Profit & Loss Account?

   A. Profit & Loss Account is prepared for a certain period and hence it is an interim statement
   B. Profit & Loss Account does not disclose the effect of non-financial items
   C. Net Profits are ascertained on the basis of current costs
   D. Net Profits as disclosed by P&L Account is not absolute

10. Which of the following is not an intangible asset?

    A. Trade mark
    B. Franchise
    C. Accounts Receivable
    D. Secret Profit