Accountancy MCQs

ABK Questions with solutions MCQs

1. Stolen merchandise should be debited to :

A

Sales account

B

Purchases account

C

Loss by theft account

D

No entry

ABK Finance Inspector 2024
Correct Answer : C
Explanation :

<p>Stolen merchandise should be debited to:</p><p><strong>Loss by theft account</strong></p><p>When merchandise is stolen, it represents a loss to the business. According to accounting principles, losses such as theft are typically recorded in a specific account called "Loss by theft" or "Loss on theft of merchandise." This allows the business to track and report such losses separately from other types of expenses or revenues.</p>

Correct Answered :

Wrong Answered :

2. Which of these item will appear on the credit side in the ledger account?

A

Rent expenses

B

Cash received

C

Received a Discount

D

Purchases

ABK Finance Inspector 2024
Correct Answer : C
Explanation :

<p>In a ledger account, the following item will appear on the credit side:</p><p><strong>Received a Discount</strong></p>

Correct Answered :

Wrong Answered :

3. According to the going concern concept, a business entity should assumed to have

A

A very short life

B

An indefinite life

C

A long life

D

None of the above

ABK Finance Inspector 2024
Correct Answer : B
Explanation :

According to the going concern concept, a business entity is assumed to have an indefinite or continuous life. This accounting principle implies that the business will continue to operate for the foreseeable future and has no intention or need to liquidate or significantly curtail its operations.<span><br></span>

Correct Answered :

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