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. |
Working capital turnover ratio can be determined by : |
| A. | ( Gross profit / Working capital ) |
| B. | ( Cost of goods sold / Net sales ) |
| C. | ( Cost of goods sold / Working capital) |
| D. | None of the above |
| Answer» B. ( Cost of goods sold / Net sales ) | |
| 2. |
In single entry system it’s difficult to exercise control over . |
| A. | Asset |
| B. | Management |
| C. | Single entry |
| D. | Pure single entry |
| Answer» B. Management | |
| 3. |
As per AS-19 …………nlease risk and reward is not transferred to the lessee. |
| A. | operating |
| B. | non operating |
| C. | manageable |
| D. | refundable |
| Answer» B. non operating | |
| 4. |
Insured standing charges are the -------------- |
| A. | fixed charges |
| B. | horizontal charges |
| C. | fluctuating |
| D. | current charges |
| Answer» B. horizontal charges | |
| 5. |
A policy of fire insurance is intended to protect the assured against the losscaused by fire. |
| A. | true |
| B. | false |
| C. | neither true nor false |
| D. | may be false |
| Answer» B. false | |
| 6. |
Due to the inclusion of average clause in the fire insurance policy , an insuredbecomes a……………….in the event of under insurance. |
| A. | co-insurer |
| B. | provision |
| C. | profit |
| D. | loss |
| Answer» B. provision | |
| 7. |
A society which as proclaimed as its objective the………….of economic interestof its member |
| A. | Promotion |
| B. | Demotion |
| C. | Recession |
| D. | none of these |
| Answer» B. Demotion | |
| 8. |
Stock is considered as a liquid asset as anytime it can be converted into cash immediately. |
| A. | Yes |
| B. | No |
| C. | Only YES |
| D. | None of the above |
| Answer» C. Only YES | |
| 9. |
The ratio which measures the relationship between the cost of goods sold andthe amount of average inventory is |
| A. | stock turnover ratio. |
| B. | debtors velocity ratio. |
| C. | creditors velocity ratio. |
| D. | working capital turnover ratio. |
| Answer» B. debtors velocity ratio. | |
| 10. |
The………………Fund cannot be utilized for payment of dividend as bonus. |
| A. | building fund |
| B. | Reserve fund |
| C. | Education Fund |
| D. | Loans and advances |
| Answer» C. Education Fund | |
| 11. |
If Stock is 13500 for 90% then for 100% how much………. |
| A. | 15000 |
| B. | 14000 |
| C. | 13500 |
| D. | 15500 |
| Answer» B. 14000 | |
| 12. |
…………….are not formed for earning profit. |
| A. | co-operative society |
| B. | Public Company |
| C. | HUF |
| D. | Private Company |
| Answer» B. Public Company | |
| 13. |
The period for which a policy is taken known ……………….as period |
| A. | indemnity |
| B. | short sales |
| C. | long |
| D. | fixed |
| Answer» B. short sales | |
| 14. |
Creditors turnover ratio is also called . |
| A. | stock turnover ratio. |
| B. | debtors velocity ratio. |
| C. | accounts payables ratio. |
| D. | working capital turnover ratio. |
| Answer» D. working capital turnover ratio. | |
| 15. |
Insurance is a financial service for collecting the saving of the public andproviding them with a risk of a coverage. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | a and b |
| Answer» B. false | |
| 16. |
Rebate of Bills discounted is an income received in advanced which is carried forward as other liability. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | only true |
| Answer» B. false | |
| 17. |
An ideal current ratio is considered as 1:2 |
| A. | false |
| B. | true |
| C. | may be true |
| D. | both a and b |
| Answer» B. true | |
| 18. |
An assets become non-performing when it ceases to generate income for a Bank. |
| A. | True |
| B. | False |
| C. | May be false |
| D. | May be true |
| Answer» B. False | |
| 19. |
An assets becomes non performing when it to generate income for bank. |
| A. | lease |
| B. | ceases |
| C. | computerized |
| D. | easy. |
| Answer» C. computerized | |
| 20. |
The Maharashtra co-operative Society Rules Act ………. |
| A. | 1960 |
| B. | 1961 |
| C. | 1932 |
| D. | 1962 |
| Answer» C. 1932 | |
| 21. |
The main function of a banking company are to accept deposits of moneyfrom the public and to lend or invest these deposits. |
| A. | true |
| B. | false |
| C. | only true |
| D. | ma be false |
| Answer» B. false | |
| 22. |
If Gross profit is 600000, sales is Rs. 15,00,000 then gross profit ratio will be………….. |
| A. | 40% |
| B. | 50% |
| C. | -40% |
| D. | – 50% |
| Answer» B. 50% | |
| 23. |
AS 15 deals with the accounting for retirement benefits in the financialstatements of -------------- |
| A. | employers |
| B. | employees |
| C. | top manager |
| D. | none of these |
| Answer» B. employees | |
| 24. |
Maharashtra co-operative Society Act…….. |
| A. | 1960 |
| B. | 1949 |
| C. | 1986 |
| D. | 1932 |
| Answer» B. 1949 | |
| 25. |
All items of stock in Trading and Profit and loss Account are to be convertedinto cost price if these are given at an _ |
| A. | Profit ratio. |
| B. | market price |
| C. | Balance. |
| D. | Invoice price |
| Answer» E. | |
| 26. |
General profitability ratios are based on |
| A. | Investment |
| B. | Sales |
| C. | A & B |
| D. | None of the above |
| Answer» C. A & B | |
| 27. |
As per earning per share approach cost of equity can be can be calculated as (where g is growth rate) |
| A. | EPS(I+g)/current market price |
| B. | EPS/CURRENT MARKET PRICE |
| C. | EPS(i+g)/current market price(I-g) |
| D. | EPS/current market price(I+g) |
| Answer» B. EPS/CURRENT MARKET PRICE | |
| 28. |
Given: Opening inventory Rs. 3,500; Closing inventory Rs. 1,500; Cost of goods sold Rs. 22,000. What is the amount of purchase? |
| A. | Rs. 20,000 |
| B. | Rs. 24,000 |
| C. | Rs. 27,000 |
| D. | Rs. 17,000 |
| Answer» B. Rs. 24,000 | |
| 29. |
For registering the transfer of shares in the name of the buyer share transfer stamps are required at _____ % ad valorem |
| A. | 0.25 |
| B. | 0.5 |
| C. | 1 |
| D. | 5 |
| Answer» B. 0.5 | |
| 30. |
For calculating the value of equity share by yield method information is required regarding |
| A. | NRR. |
| B. | net asset of business |
| C. | face value of share |
| D. | all of the above |
| Answer» B. net asset of business | |
| 31. |
The portion of the acquisition costof an asset yet to be allocated is known as |
| A. | ritten down value |
| B. | ccumulated value |
| C. | ealizable value |
| D. | alvage value |
| Answer» B. ccumulated value | |
| 32. |
Which of the following are the ownersof a company? |
| A. | roprietors |
| B. | artners |
| C. | hareholders |
| D. | anagers |
| Answer» D. anagers | |
| 33. |
The persons who sign Articles and Memorandum of the company and contribute in the initial share capital of the company are called |
| A. | ubscribers |
| B. | hareholders |
| C. | anagers |
| D. | irectors |
| Answer» B. hareholders | |
| 34. |
The maximum amount with which acompany is registered is called |
| A. | uthorized capital |
| B. | ssued capital |
| C. | aid up capital |
| D. | alled up capital |
| Answer» B. ssued capital | |
| 35. |
Which accounting concept dictates the inclusion of 'provision for doubtful debts' in the financial statements? |
| A. | ccrual concept |
| B. | atching concept |
| C. | oing concern concept |
| D. | rudence concept |
| Answer» E. | |
| 36. |
Transferring entries from journal to ledger account is commonly known as |
| A. | ecording |
| B. | ransferring |
| C. | osting |
| D. | ntry making |
| Answer» D. ntry making | |
| 37. |
Any written evidence in support of a business transaction is called |
| A. | ournal |
| B. | edger |
| C. | edger posting |
| D. | oucher |
| Answer» E. | |
| 38. |
In case of opening Credit Balance, the word ______ are written on the credit side. |
| A. | y Balance b/d |
| B. | o Balance b/d |
| C. | y Balance c/d |
| D. | o Balance c/d |
| Answer» B. o Balance b/d | |
| 39. |
A Ltd. has a share capital of 5,000 equity shares of Rs. 100 each having a market value of Rs. 150 per share. The company wants to raise additional funds of Rs. 1,20,000 and offers to the existing shareholders the right to apply for a new share at Rs. 120 for every five share held. What would be the value of right? |
| A. | Rs. 5 |
| B. | Rs. 6 |
| C. | Rs. 6.5 |
| D. | Rs. 5.5 |
| Answer» B. Rs. 6 | |
| 40. |
Convertible debentures are those on which |
| A. | Accumulated interest payable is converted into equity shares |
| B. | Interest is not paid when the company is running in a loss |
| C. | Interest is payable and if not paid, keeps on accounting |
| D. | Equity shares may be exchanged at the option of the debenture holders |
| Answer» E. | |
| 41. |
GIVEN FIXED COST = Rs. 20000/-, the operating BEP in units = 2500 and financial BEP = Rs. 4000, the overall BEP in units is... |
| A. | 3000 |
| B. | 5000 |
| C. | 8000 |
| D. | 4000 |
| Answer» B. 5000 | |
| 42. |
Bank pass book is also known as |
| A. | Bank book |
| B. | Bank account |
| C. | Bank column |
| D. | Bank statement |
| Answer» E. | |
| 43. |
In case of debit balance, the words _____ are written on the debit side |
| A. | To Balance b/d |
| B. | To Balance c/d |
| C. | By Balance c/d |
| D. | By Balance b/d |
| Answer» B. To Balance c/d | |
| 44. |
A bill of exchange is called a ____ by one who is liable to pay it on the due date |
| A. | Bill receivable |
| B. | Noted bill of exchange |
| C. | Bill payable |
| D. | None of the above |
| Answer» D. None of the above | |
| 45. |
A bill of exchange when drawn requires |
| A. | Noting |
| B. | Discounting |
| C. | Acceptance |
| D. | None of the above |
| Answer» D. None of the above | |
| 46. |
___ days of grace are allowed in case of time bills, for calculating date of maturity |
| A. | 2 |
| B. | 4 |
| C. | 3 |
| D. | 5 |
| Answer» D. 5 | |
| 47. |
Discounting of bill by the drawer is done with |
| A. | Creditor |
| B. | Drawee |
| C. | Bank |
| D. | Notary public |
| Answer» D. Notary public | |
| 48. |
A promissory note is drawn by ______ in favor of _____ |
| A. | Drawer, Drawee |
| B. | Maker, Payee |
| C. | Payer, Payee |
| D. | Drawer, Payee |
| Answer» C. Payer, Payee | |
| 49. |
The cost of a small calculator is treated as an expense and not shown as an asset in a financial statement of a business entity due to |
| A. | Materiality concept |
| B. | Matching concept |
| C. | Periodicity concept |
| D. | Conservatism concept |
| Answer» B. Matching concept | |
| 50. |
The left side of an account is known as ___ and the right side as ____ |
| A. | Debit, Credit |
| B. | Credit, Debit |
| C. | Liability, Asset |
| D. | None of the above |
| Answer» B. Credit, Debit | |