MGT101 100 Solved MCQs

ACCOUNTING

Which of the following statements is incorrect? Assets - Capital = Liabilities Liabilities + Assets = Capital Liabilities + Capital = Assets Assets - Liabilities = Capital Which of the following is not an asset? Buildings Debtors Loan from K Harris Cash balance Which of the following is a liability? Motor Vehicles Machinery Creditors for goods Cash at Bank Which of the following is incorrect?

(A) (B) (C) (D) Which of the following statements is correct?

(A) Which of the following best describes the meaning of ‘Purchases’? Goods bought on credit Goods paid for Goods bought for resale Items bought Which of the following should not be called ‘Sales’? Goods sold for cash Sale of item previously included in ‘Purchases’ Office fixtures sold Goods sold on credit Of the following, which are correct?

Which of the following are incorrect?

(iv) only (iii) only

Given the following, what is the amount of Capital? Assets: Premises £20,000; Stock £8,500; Cash £100. Liabilities: Creditors £3,000; Loan from A Adams £4,000 £21,100 £21,400 £21,600 £32,400 Which of the following is correct? Profit reduces capital Profit increases capital Capital can only come from profit Profit does not alter capital Which of the following are correct?

(i), (iii) and (iv) only Of the following, which are incorrect?

(ii) and (ii) only