MCQOPTIONS
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MCQOPTIONS
This section includes 46 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Commerce (B Com) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which account is to be prepared to find out sales on credit? |
| A. | Profit and Loss Account |
| B. | Income Expenditure Account |
| C. | Debtors Account |
| D. | Creditors Account |
| Answer» D. Creditors Account | |
| 2. |
Creditors account is prepared to find out the - |
| A. | Amount of Bills Payable |
| B. | Amount of Bills Receivale |
| C. | Amount of B/R dishonoured |
| D. | Amount received against B/R |
| Answer» B. Amount of Bills Receivale | |
| 3. |
Bad Debt Return is to be credited to which account? |
| A. | Debtors Account |
| B. | Creditors Account |
| C. | Cash Account |
| D. | None |
| Answer» E. | |
| 4. |
Effect of dishonour of B/R is given |
| A. | Only in the B/R account |
| B. | In debtors A/c and B/R account |
| C. | Only in the Debtors account |
| D. | Only in the B/P account |
| Answer» C. Only in the Debtors account | |
| 5. |
Why opening statement of affairs is prepared? |
| A. | To find out Profit/Loss |
| B. | To find out Cash |
| C. | To find out assets |
| D. | To find out opening balance of capital |
| Answer» E. | |
| 6. |
Fire insurance Provides cover for - |
| A. | Tangible Assets |
| B. | Intangible Assets |
| C. | Fictitious Assets |
| D. | Business Employees |
| Answer» B. Intangible Assets | |
| 7. |
The Average Clause in a loss of profit policy prortects the - |
| A. | Insured |
| B. | Insurer |
| C. | Workers |
| D. | All of these |
| Answer» C. Workers | |
| 8. |
Consequential loss policy for fire insurance gives insurance againest - |
| A. | Stock Loss |
| B. | Profit Loss |
| C. | Assets Loss |
| D. | Budgeted Loss |
| Answer» C. Assets Loss | |
| 9. |
Consequential loss policy indemnifies - |
| A. | Capital Losses |
| B. | Revenue Losses |
| C. | Budgeted Losses |
| D. | None of these |
| Answer» C. Budgeted Losses | |
| 10. |
If indemnity period is six months, Standard turnover Rs. 30000, Annual trunover Rs. 75000, Turnover during indemnity period Rs. 12000, then short sales will amount to - |
| A. | Rs. 45000 |
| B. | Rs. 63000 |
| C. | Rs. 18000 |
| D. | Rs. 30000 |
| Answer» D. Rs. 30000 | |
| 11. |
Stock of goods destroyed by Fire Rs. 10000 Stock of goods salvaged Rs. 2000, Value of insurance policy Rs. 9000. There is an average clause in the policy, Then the Amount of claim is - |
| A. | Rs. 9500 |
| B. | Rs. 5500 |
| C. | Rs. 7500 |
| D. | Rs. 2500 |
| Answer» D. Rs. 2500 | |
| 12. |
Opening stock Rs. 25000, Purchases Rs. 125000, Sales Rs. 150000, Goods salvaged Rrs. 10000 and Gross Profit is 50% on cost, then the cost of the goods burnt by fire is - |
| A. | Rs. 40000 |
| B. | Rs. 50000 |
| C. | Rs. 10000 |
| D. | Rs. 60000 |
| Answer» B. Rs. 50000 | |
| 13. |
Contract of Insurance is a contract between the trader and the insurance Company to - |
| A. | Close down old firm |
| B. | Start new business |
| C. | Reconstruction of business |
| D. | Compensate the loss suffered by the trader |
| Answer» E. | |
| 14. |
Which account is to be prepared to know Cash Purchase or Cash Sale? |
| A. | Trading Account |
| B. | Debtor's Account |
| C. | Creditor's Account |
| D. | Cash Account |
| Answer» E. | |
| 15. |
While selling securities, brokerage is generally calculated on following price- |
| A. | Face value |
| B. | Sales price |
| C. | Average of face value and sales price. |
| D. | Book value |
| Answer» C. Average of face value and sales price. | |
| 16. |
In case of purchase and sales of securities ex- interest - |
| A. | Interest is payable in addition to market price |
| B. | Market price includes interest also |
| C. | No separate calculation for interest is made |
| D. | The seller gets interest on the next interest date. |
| Answer» B. Market price includes interest also | |
| 17. |
Interest on security is calculated on - |
| A. | It Face value |
| B. | Its Market price |
| C. | Its Purchase Price |
| D. | None of these |
| Answer» B. Its Market price | |
| 18. |
In case of ex-interest transaction, the amount of interest is calculated for the following period. |
| A. | Upto the date of next interest payment |
| B. | For the whole year |
| C. | From the last date of interest payment till the date of transaction |
| D. | For full 6 months. |
| Answer» D. For full 6 months. | |
| 19. |
Capital value in case of cum-interest purchase means - |
| A. | The total amount paid to broker as purchase price. |
| B. | Purchase price- Interest included + Brokerage |
| C. | Market price on the date of purchase |
| D. | Selling price + interest included |
| Answer» C. Market price on the date of purchase | |
| 20. |
The interest on fixed dates are received only on following securities : |
| A. | Equity shares of companies |
| B. | Government securities |
| C. | Shares of foreign companies |
| D. | preference share of companies. |
| Answer» C. Shares of foreign companies | |
| 21. |
The Closing stock of investment is valued - |
| A. | Always at purchase price |
| B. | At cost or market price whichever is less |
| C. | Always at market price |
| D. | Purchase price less likely reduction in market price. |
| Answer» C. Always at market price | |
| 22. |
Investment Accounts are kept |
| A. | Only by Brokers |
| B. | only by Companies |
| C. | By any person who is an investor |
| D. | By stock exchange only |
| Answer» D. By stock exchange only | |
| 23. |
Cum interest price of security is than ex- interest price. |
| A. | Less |
| B. | More |
| C. | May be more or less |
| D. | None of these |
| Answer» C. May be more or less | |
| 24. |
The Capital Value of Investments in case of ex- interest purchase (subject to Brokerage) means : |
| A. | Market price on the date of purchase |
| B. | Purchase Price + Interest + Brokerage |
| C. | Purchase price - Interest + Brokerage |
| D. | None of these |
| Answer» E. | |
| 25. |
Cost of Investment does not include |
| A. | Interset |
| B. | Brokerage |
| C. | Stamp Duty |
| D. | None of these |
| Answer» B. Brokerage | |
| 26. |
Paid Rs. 7000 at the time of contract. Four annula instalments were paid respectively Rs. 7800 , Rs. 6200, Rs. 4700, Rs. 3300. Rate of intrest is 10% Find cash price. |
| A. | Rs. 21000 |
| B. | Rs. 22000 |
| C. | Rs. 14800 |
| D. | Rs. 25000 |
| Answer» E. | |
| 27. |
Under hire-purchase system the amount of interest is charged to Account |
| A. | Asset |
| B. | Purchaser |
| C. | Profit and Loss |
| D. | Seller |
| Answer» D. Seller | |
| 28. |
Cash price of asset + Interest = price |
| A. | Contract |
| B. | Market |
| C. | After Depreciation |
| D. | Purchase |
| Answer» B. Market | |
| 29. |
In which of the following method of sales, if the purchaser can't pay the amount of instalment, the vendor can get the assets as return back ? |
| A. | Cash Method |
| B. | Sales or Return based sale |
| C. | Instalment system |
| D. | Hire purchase system |
| Answer» E. | |
| 30. |
Which of the following is not included in the hire purchase agreement ? |
| A. | Interest rate |
| B. | Instalment amount |
| C. | Methods for depreciation |
| D. | Number of Instalment |
| Answer» D. Number of Instalment | |
| 31. |
By deducting cash price from the contract price of assets, the difference of the amount is called |
| A. | Original Price |
| B. | Sales price |
| C. | Interest |
| D. | Istalment |
| Answer» D. Istalment | |
| 32. |
Total amount payable less its cash price is equal to - |
| A. | Depreciation |
| B. | Intrest |
| C. | Market Price |
| D. | Purchase Price |
| Answer» C. Market Price | |
| 33. |
Under the Hire purchase system, goods are delivered to the hirer when - |
| A. | First Instalment is paid |
| B. | Agreement is signed |
| C. | Last instalment is paid |
| D. | None of these |
| Answer» C. Last instalment is paid | |
| 34. |
In case of Hire purchase system, Interest is not included in- |
| A. | Down payment |
| B. | Hire purchase price |
| C. | Intalment |
| D. | None of these |
| Answer» B. Hire purchase price | |
| 35. |
At the end of the year, the interest paid and depreciation charged are transferred to the account |
| A. | Asset |
| B. | Profit and Loss |
| C. | Purchaser |
| D. | Seller |
| Answer» C. Purchaser | |
| 36. |
Interest on capital is calculated on which capital? |
| A. | Opening Capital |
| B. | Closing Capital |
| C. | Closing Stock |
| D. | Opening Stock |
| Answer» B. Closing Capital | |
| 37. |
In case of Hire purchase, the depreciation is calculated on - |
| A. | Hire purchase price |
| B. | Contract Price |
| C. | Cash price |
| D. | None of the above |
| Answer» D. None of the above | |
| 38. |
Dipti has purchased one Machine on hire purchase agreement. The cash price of machine is Rs. 90000. The amount is to be paid on agreement Rs. 30000 and balance amount is paid by three equal annula instalments of Rs. 30000 each. Find out the intrest of third year. |
| A. | Rs. 3000 |
| B. | Rs. 4000 |
| C. | Rs. 4500 |
| D. | Rs. 5000 |
| Answer» E. | |
| 39. |
In popular single entry, following books are kept |
| A. | Only cash book |
| B. | Purchase and Sale Book |
| C. | All Ledger A/c's in ledger |
| D. | All subsidiary books |
| Answer» E. | |
| 40. |
According to hire purchase agreement Rs. 25000 is the down payment and Rs. 90000 is the total amount of three equal instalments inclusive of interest Rs. 15000. How much would be the cash price of the asset ? |
| A. | Rs. 90000 |
| B. | Rs. 100000 |
| C. | Rs. 115000 |
| D. | Rs. 130000 |
| Answer» C. Rs. 115000 | |
| 41. |
Generally, depreciation on fixed assets is calculated on which balance? |
| A. | Opening |
| B. | Closing |
| C. | Only on additional |
| D. | Amount realised on asset sold |
| Answer» B. Closing | |
| 42. |
Interest is calculated on under hire purchase agreement. |
| A. | Cash Price |
| B. | Hire purchase price |
| C. | Balance of cash price outstanding at the beginning of instalment |
| D. | None of these |
| Answer» D. None of these | |
| 43. |
In pure single entry |
| A. | Purchase and sales book is kept |
| B. | Only cash book is kept |
| C. | All susidiary books are kept |
| D. | Certain subsidiary books are kept |
| Answer» C. All susidiary books are kept | |
| 44. |
Under the Hire purchase system, ownership of goods is transferred to the hirer when - |
| A. | First Instalment is paid |
| B. | Agreement is signed |
| C. | Last instalment is paid |
| D. | None of these |
| Answer» D. None of these | |
| 45. |
The main difference between sale under Hire purchase agreement and sales under Installment system is regarding |
| A. | Delivery of the goods |
| B. | Ownership of the goods |
| C. | Sales price of the goods |
| D. | None of these |
| Answer» C. Sales price of the goods | |
| 46. |
In case of Hire purchases, the depreciation is calculated on - |
| A. | Hire purchase price |
| B. | Contract Price |
| C. | Cash price |
| D. | None of these |
| Answer» D. None of these | |