MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Revised AS 15 – Employees benefits is applicable in respect of accountingperiods commencing on or after 1st April ---------- |
| A. | 2006 |
| B. | 1978 |
| C. | 2001 |
| D. | 2009 |
| Answer» B. 1978 | |
| 2. |
As per AS 15 accumulated compensated absences can be carried forward ifthe current period entitlement is not used in full. |
| A. | true |
| B. | false |
| C. | may be false |
| D. | may be true |
| Answer» B. false | |
| 3. |
A fire policy covers loss of or damaged to insured property. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | only false |
| Answer» B. false | |
| 4. |
……………..clause is applicable in case of under insurance |
| A. | average |
| B. | Normal |
| C. | short sales |
| D. | indemnity period |
| Answer» B. Normal | |
| 5. |
…………….asset is one which has been classified as non-performing asset forperiod not exceeding than………….years |
| A. | Fixed – 13 |
| B. | Fluctuating – 11 |
| C. | Intangible – 1 |
| D. | Substandard – 2 |
| Answer» B. Fluctuating – 11 | |
| 6. |
The main function of………………company are accepts deposits money |
| A. | Private |
| B. | Public |
| C. | Banking |
| D. | Capital marketing |
| Answer» C. Banking | |
| 7. |
……….and will share revenue equally between the central and State. |
| A. | CGST & SGST |
| B. | SGST &IGST |
| C. | IGST & CGST |
| D. | GST & IGST |
| E. | 8th July 2019 |
| Answer» B. SGST &IGST | |
| 8. |
Reliability of ratios depend upon the reliability of financial data. |
| A. | true |
| B. | false |
| C. | only a |
| D. | both a and b. |
| Answer» B. false | |
| 9. |
………….method of branch accounting is usually adopted when the branch is ofthe small size. |
| A. | Treading. |
| B. | Balance sheet |
| C. | memorandum |
| D. | debtors |
| Answer» E. | |
| 10. |
IF Gross profit rate is 40% and Short Sales is Rs. 250000, then Loss of Profit onSales will be ……….. |
| A. | Rs. 100000 |
| B. | Rs. 50000 |
| C. | Rs. 85000 |
| D. | None of the above |
| Answer» B. Rs. 50000 | |
| 11. |
Sub standard asset are certain loan asset of a bank which are classified as………….assets for a period not exceeding two year. |
| A. | non –performing |
| B. | performing |
| C. | Current |
| D. | Fluctuating. |
| Answer» B. performing | |
| 12. |
As per AS -30 prepaid expenses are not financial instruments. |
| A. | true |
| B. | false |
| C. | neither true nor false |
| D. | may be false. |
| Answer» B. false | |
| 13. |
Acceptance, Endorsements and other obligations are a contingent liability of bank. |
| A. | True |
| B. | False |
| C. | May be false |
| D. | May be true |
| Answer» C. May be false | |
| 14. |
Return on investment is a . |
| A. | turnover ratios. |
| B. | short term solvency ratio. |
| C. | profitability ratios. |
| D. | long term solvency ratio. |
| Answer» D. long term solvency ratio. | |
| 15. |
AS-17 segment reporting applies to those companies which have an annualturnover of Rs……….crores or more. |
| A. | 50 |
| B. | 80 |
| C. | 21 |
| D. | 20 |
| Answer» B. 80 | |
| 16. |
The removal of loading from the items of branch stock is adjusted throughbranch……………..Account |
| A. | adjustment |
| B. | debtor. |
| C. | Stock |
| D. | profit and loss |
| Answer» B. debtor. | |
| 17. |
Which of the following is not included in current assets. |
| A. | Debtors |
| B. | Stock |
| C. | Cash at bank |
| D. | Cash in hand |
| Answer» C. Cash at bank | |
| 18. |
Opening stock + purchases + direct expenses – closing stock = |
| A. | net profit. |
| B. | cost of production |
| C. | administrative expenses. |
| D. | cost of goods sold |
| Answer» E. | |
| 19. |
If value of stock on date of fire is 420000, salvage is 1500000 then stockdestroyed by fire will ……………… |
| A. | 250000 |
| B. | 255000 |
| C. | 253000 |
| D. | 251000 |
| Answer» B. 255000 | |
| 20. |
The banking regulation Act --. |
| A. | 1949 |
| B. | 1947 |
| C. | 1932 |
| D. | 1956 |
| Answer» B. 1947 | |
| 21. |
Stock turnover ratio is a . |
| A. | turnover ratio. |
| B. | profitability ratio. |
| C. | short term solvency ratio. |
| D. | long term solvency ratio. |
| Answer» B. profitability ratio. | |
| 22. |
If Gross profit is 54000 and sales is Rs. 180000 then gross profit ratio will be …. |
| A. | 30% |
| B. | 45% |
| C. | 15% |
| D. | 25% |
| Answer» B. 45% | |
| 23. |
AS 7 does not apply to Contractors |
| A. | false |
| B. | true |
| C. | none of the above |
| D. | may be false |
| Answer» B. true | |
| 24. |
The branches which are totally dependent on head office are also termed asAgency Branches. |
| A. | True |
| B. | False |
| C. | may be false |
| D. | may be a |
| Answer» B. False | |
| 25. |
Non-Banking Assets must be shown in the Balance Sheet in scheduled 8. |
| A. | true |
| B. | may be false |
| C. | may be true |
| D. | false |
| Answer» C. may be true | |
| 26. |
Core banking system…………. system. |
| A. | Bank end |
| B. | work flow |
| C. | open end |
| D. | internal |
| Answer» B. work flow | |
| 27. |
Managing committee of every Society shall prepare annual statement ofaccounts within…………… days. |
| A. | 42 |
| B. | 45 |
| C. | 2 yrs. |
| D. | 48 |
| Answer» B. 45 | |
| 28. |
A ---------- policy covers loss of stock, fixed asset, profit, expenses etc. |
| A. | compact |
| B. | comprehensive |
| C. | horizontal |
| D. | operating |
| Answer» C. horizontal | |
| 29. |
Accounting Standards are beneficial not only to the business enterprises butalso to the………….. as well. |
| A. | accountants & auditor |
| B. | Customers |
| C. | Family and Country |
| D. | Traders |
| Answer» B. Customers | |
| 30. |
When the concept of ratio is defined in respect to the item shown in thefinancial statements, it is termed as |
| A. | Accounting ratio |
| B. | Financial ratio |
| C. | costing ratio |
| D. | none of the above |
| Answer» C. costing ratio | |
| 31. |
A 25 focuses on change in accounting policies also. |
| A. | true |
| B. | only false |
| C. | may be true |
| D. | may be false |
| Answer» B. only false | |
| 32. |
The ratio which measures the profit in relation to capital employed is known as |
| A. | return on investment. |
| B. | gross profit ratio. |
| C. | operating ratio. |
| D. | operating profit ratio. |
| Answer» B. gross profit ratio. | |
| 33. |
All sums of…………….received and expended by the Society and the matters inrespect of which receipts and expenditure take place. |
| A. | Money |
| B. | Profit |
| C. | Interest |
| D. | Income |
| Answer» B. Profit | |
| 34. |
If sales is Rs 5,00,000 & net profit is Rs 1,20,000 Net profit ratio is |
| A. | 24% |
| B. | 416% |
| C. | 60% |
| D. | None of the above |
| Answer» B. 416% | |
| 35. |
An ideal Liquid ratio is considered as 1:1 |
| A. | true |
| B. | false |
| C. | a and b both |
| D. | none of the above |
| Answer» B. false | |
| 36. |
If Gross profit is Rs. 27000 and Sales Rs. 90000 then gross profit will be …….. |
| A. | 30% |
| B. | 25% |
| C. | 30% |
| D. | 30% |
| Answer» B. 25% | |
| 37. |
The accounting standards Board (India) was formed by the Institute ofChartered Accountants of India in April--------------- |
| A. | 1977 |
| B. | 1978 |
| C. | 2001 |
| D. | 2009 |
| Answer» B. 1978 | |
| 38. |
The primary objective in the formation of Co-operative credit Society is ……… |
| A. | promoting of saving |
| B. | To Maintain Stock Register |
| C. | A and C only |
| D. | to get maximum profit |
| Answer» B. To Maintain Stock Register | |
| 39. |
In Branch Accounting the balance on stock reserved Account at the end of theperiod is shown in the balance sheet by the way of deduction from |
| A. | opening stock. |
| B. | reserved stock. |
| C. | closing stock. |
| D. | profit or loss |
| Answer» D. profit or loss | |
| 40. |
Under the………………… entry system personal accounts, cashbook and othersubsidiary books are kept separately. |
| A. | Pure single |
| B. | Quasi single |
| C. | Simple single |
| D. | Double entry |
| Answer» C. Simple single | |
| 41. |
Profit and losses can’t be ascertained because Trading and Profit and loss account can’t be prepared. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | may be false |
| Answer» C. may be true | |
| 42. |
AS-7 deals with accounting for construction contracts in financial statements of |
| A. | contractors |
| B. | Accountants |
| C. | Agents |
| D. | Dealers |
| Answer» B. Accountants | |
| 43. |
Investment made by government as equity in the ownership of an enterprise isknown as ------------ |
| A. | participation |
| B. | interested |
| C. | refundable |
| D. | not interested |
| Answer» B. interested | |
| 44. |
Under Stock and Debtors System general income is credited to ………..account |
| A. | balance sheet |
| B. | branch stock account |
| C. | stock and Debtor System |
| D. | branch profit and loss |
| Answer» E. | |
| 45. |
Dividend received on shares is comes to the……………. side of profit and lossaccount. |
| A. | Income |
| B. | Profit |
| C. | Interest |
| D. | loss |
| Answer» B. Profit | |
| 46. |
Interest paid and payable comes to the……………side of the profit and lossaccount. |
| A. | Expenditure |
| B. | Receipt |
| C. | Interest |
| D. | income |
| Answer» B. Receipt | |
| 47. |
General insurance business in India is transacted by Life Insurance Corporationof India. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | may be false |
| Answer» C. may be true | |
| 48. |
What will be the Gross Profit if , total sales is Rs 2,60,000,cost of net goods soldis Rs 2,00,000 & sales return is Rs10,000 ? |
| A. | 13 % |
| B. | 28% |
| C. | 26% |
| D. | 20% |
| Answer» E. | |
| 49. |
The ratios which reveal the final result of the managerial policies and performance is………….. |
| A. | turnover ratios. |
| B. | profitability ratios. |
| C. | short term solvency ratio. |
| D. | long term solvency ratio. |
| Answer» C. short term solvency ratio. | |
| 50. |
If value of stock on date of fire is 429000, salvage is 1570000 then stockdestroyed by fire will ……………… |
| A. | 271500 |
| B. | 270000 |
| C. | 275000 |
| D. | none of the above |
| Answer» B. 270000 | |