Adjusting Entries MCQs
MCQs 1 To 10
1. What will be the Book value of asset if its original cost is Rs. 50,000; accumulated depreciation is Rs. 20,000; and depreciation expense for the year is Rs. 10,000?
2. Amount owing from the debtor which is not expected to be received?
3. Net realizable value of accounts receivable is?
4. A provision is?
5. What is an expense that a business has incurred but has not yet paid?
6. The amount reserved for doubtful receivables?
7. If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible?
8. Which of the following asset is not depreciated?
9. Recovery of bad debts is treated as?
10. What will the effects on financial statements, if machinery is depreciated @ 10%?
Share your Results:
>> Read Adjusting Entries.
MCQs 11 To 20
11. The amount of depreciation charged on machinery will be debited to?
12. Accrued expenses affects the?
13. Wages and salaries payable are classified as a?
14. When an account becomes uncollectible and must be written off?
15. The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed?
16. Expired cost of any fixed assets is called?
17. Which of the following is correct for Doubtful Debt?
18. Bad debts written off (given in adjustment) always affect the?
19. Under the allowance method, writing off a specific customer’s uncollectible account?
20. Equipment cost Rs. 36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be?
Share your Results:
>>> Practice Adjusting Entries Problems and Solutions.
Mukharji, A., & Hanif, M. (2003). Financial Accounting (Vol. 1). New Delhi: Tata McGraw-Hill Publishing Co.
Narayanswami, R. (2008). Financial Accounting: A Managerial Perspective. (3rd, Ed.) New Delhi: Prentice Hall of India.
Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.