MCQ Nation - Your #1 MCQ Portal

Question 1:

The joint venture account is used to:

Track the profits and losses of the joint venture Record the distribution of profits to the co-venturers Record the individual transactions of each co-venturer Summarize the transactions related to the joint venture

Question 2:

In a joint venture, the co-venturers:

Share only profits, not losses Share profits and losses in a predetermined ratio Have no financial relationship Operate independently of each other

Question 3:

When is a provision for bad and doubtful debts adjusted?

After the declaration of dividends Before the preparation of the final accounts At the end of each accounting period When the actual bad debts differ from the estimated amount

Question 4:

The straight-line method of depreciation calculates depreciation based on:

Original cost and useful life Residual value and useful life Original cost and salvage value Market value and inflation

Question 5:

A company purchased equipment for ?800,000 with an estimated life of 8 years and a salvage value of ?80,000. Using the sum-of-the-years'-digits method, what is the depreciation expense in the third year?

120000 160000 100000 140000

Question 6:

In joint venture accounting, when one co-venturer keeps the records, they:

Record all transactions in their books on behalf of all co-venturers Record only their share of transactions Do not record any transactions related to the joint venture Maintain separate accounts for each co-venturer

Question 7:

If a company has a repairs and renewals reserve of ?50,000 and incurs repair expenses of ?60,000, what is the balance in the reserve after the repairs?

-10000 110000 10000

Question 8:

The annuity method calculates depreciation by considering:

The asset's useful life and salvage value The asset's market value and inflation rate The asset's annual usage The asset's cost and the interest rate

Question 9:

The book value of an asset is equal to its original cost minus:

Salvage value Accumulated depreciation Annual depreciation expense Depreciation rate

Question 10:

In the context of branch accounting, the term "recording of transactions relating to branch accounts using computers" refers to:

The use of manual ledgers for branch transactions The physical transfer of records between the branch and head office The use of electronic systems for consolidating branch accounts The use of traditional accounting methods without technology

Quiz: Financial Accounting