881. A chart of accounts generally starts with which of the following types of accounts?
A: Assets accounts
B: Liability accounts
C: Cash accounts
D: Revenue accounts
882. Total depreciation of an asset cannot exceed its:
A: Scrap value
B: Residual value
C: Market value
D: Depreciable value
883. Amount paid to Masood posted to the credit side of his account would affect___________?
A: Masood’s account
B: Cash account
C: Cash account and Gagan’s account
D: None of these
884. Which of the following statements is/are true?
A: A sale of an asset is recorded in the Sales Book
B: Total of Return Outward Book is debited to Return Outward Account
C: The balance of Petty Cash Book is a liability
D: Cash Book is a subsidiary book as well as a ledger
885. Which of the following is true regarding closing entries?
A: They must be followed by reversing entries
B: They transfer the balances in all of the Nominal Accounts to the Trading and Profit and Loss Account
C: They must be made after the reversing entries but before the adjusting entries
D: They must be made after the adjusting entries but before the reversing entries
886. Closing stock is generally valued at______________?
A: Cost Price
B: Market Price
C: Cost price or Market price whichever is higher
D: Cost price or Market price whichever is lower
887. Which method of costing is best suited for an interior decorator?
A. Job costing
B. Process costing
C. Contract costing
D. Operating costing
888. Which method of costing is used in hospitals?
A. Job costing
B. Operating costing
C. Unit costing
D. No method is used
889. The following are examples of costs that are determined after they have been incurred:
A. Imputed costs
B. Historical costs
C. Sunk costs
D. Opportunity costs
890. Prime cost plus variable overhead is known as :
A. Production cost
B. Total cost
C. Marginal cost
D. Cost of sales
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