MCQOPTIONS
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MCQOPTIONS
This section includes 2081 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 1601. |
…………….reporting helps uses of financial statements to better assess the riskand t returns of the enterprise. |
| A. | segment |
| B. | Account |
| C. | statement |
| D. | management |
| Answer» B. Account | |
| 1602. |
……………is the motive given to the parliament and legislation of every state |
| A. | . one nation one tax |
| B. | Live and let live |
| C. | Health is Wealth |
| D. | learn and earn |
| E. | 8th July 2019 |
| Answer» B. Live and let live | |
| 1603. |
Actual petty expenses paid by branch from petty cash are to br shownseparately in Branch Account. |
| A. | true |
| B. | false |
| C. | both a and b |
| D. | none of the above |
| Answer» B. false | |
| 1604. |
Stock and Debtors method of branch accounting is generally used wherebranch turnover is substantially |
| A. | loss |
| B. | lower |
| C. | High. |
| D. | Profit |
| Answer» D. Profit | |
| 1605. |
Recoverable amount of an asset isof selling price and value of an assets in use. |
| A. | higher |
| B. | lower |
| C. | a and d only |
| D. | fixed |
| Answer» B. lower | |
| 1606. |
AS …………….also focuses on profit sharing and bonus plan. |
| A. | AS- 15 |
| B. | AS-21 |
| C. | AS- 28 |
| D. | AS- 7 |
| Answer» B. AS-21 | |
| 1607. |
The value of stock on the date of fire can be ascertained more precisely bypreparation of a…………… Account |
| A. | Trading A/c |
| B. | memorandum transaction A/c |
| C. | Balance sheet |
| D. | P & L A/c |
| Answer» C. Balance sheet | |
| 1608. |
…………………policy cover loss of gross profit sustained as a consequence of business interruption. |
| A. | loss of profit |
| B. | loss of stocks |
| C. | average clause |
| D. | loss of fixed assets |
| Answer» B. loss of stocks | |
| 1609. |
GST stands for…………. |
| A. | Goods and service tax. |
| B. | Government Service tax |
| C. | God down Surcharge |
| D. | B and C |
| E. | 8th July 2019 |
| Answer» B. Government Service tax | |
| 1610. |
In single entry system it’s difficult to operate …………….system |
| A. | Pure single |
| B. | Single entry |
| C. | Internal control |
| D. | Quasi single |
| Answer» D. Quasi single | |
| 1611. |
The important objective of Accounting standards is to the …………..diverseaccounting policies and practices at present in use in India. |
| A. | harmonies |
| B. | incomplete |
| C. | complex |
| D. | compact |
| Answer» B. incomplete | |
| 1612. |
Every banking company should prepare a balance sheet and profit and lossaccounts as on……………..each year. |
| A. | 31st March |
| B. | 31st July |
| C. | 31st December |
| D. | None |
| Answer» B. 31st July | |
| 1613. |
The investment on hand at the end of the period are valued at cost price ormarket whichever is ………… |
| A. | Less |
| B. | included |
| C. | Addd |
| D. | excluded |
| Answer» B. included | |
| 1614. |
The ratio which shows the proportion of profits retained in the business out ofthe current year’s profits is |
| A. | retained earnings ratio. |
| B. | pay out ratio |
| C. | earnings per share. |
| D. | price earnings ratio. |
| Answer» B. pay out ratio | |
| 1615. |
AS -26 deals with the treatment of costs of……………in financial statements. |
| A. | Research & development |
| B. | Construction contract |
| C. | Assets |
| D. | Risk & Rewards |
| Answer» B. Construction contract | |
| 1616. |
The gross profit represents the net margin. |
| A. | false |
| B. | true |
| C. | both a and b |
| D. | may be false |
| Answer» B. true | |
| 1617. |
The Insurance Company cannot prevent the happening of risk but provide forlosses at the happening of risk. |
| A. | true |
| B. | false |
| C. | only a |
| D. | a and b |
| Answer» B. false | |
| 1618. |
If value of Insurance Policy is 21000, Stock on date of Fire is 24000 and Loss of stock is 20000 then Amount of Claim for stock will be …………… |
| A. | . 17500 |
| B. | 18000 |
| C. | 19000 |
| D. | 25000 |
| Answer» B. 18000 | |
| 1619. |
If value of stock on date of fire is 420000, salvage is 10000 then stockdestroyed by fire will ……………… |
| A. | 410000 |
| B. | 400000 |
| C. | 450000 |
| D. | 430000 |
| Answer» B. 400000 | |
| 1620. |
Determine Working capital turnover ratio if, Current asset is Rs 1,50,000, current liability is Rs 1,00,000 & cost of goods sold is Rs 3,00,000. |
| A. | 5 times |
| B. | 6 times |
| C. | 3 times |
| D. | 1.5 times |
| Answer» C. 3 times | |
| 1621. |
As per AS 7 Research and Development cost is to be excluded from contractcost . |
| A. | true |
| B. | false |
| C. | may be false |
| D. | neither a nor b |
| Answer» B. false | |
| 1622. |
The relationship between two financial variables can be expressed in: |
| A. | Pure ratio |
| B. | Percentage |
| C. | Rate or time |
| D. | all the above |
| Answer» E. | |
| 1623. |
In single entry system it’s difficult to detect |
| A. | Account |
| B. | Fraud. |
| C. | Profit. |
| D. | Gross profit |
| Answer» C. Profit. | |
| 1624. |
Fixed assets turnover ratio is a |
| A. | short-term solvency ratio. |
| B. | long-term solvency ratio. |
| C. | profitability ratio. |
| D. | turnover ratio. |
| Answer» E. | |
| 1625. |
In…………………entry system no records are kept for real or nominal Account. |
| A. | Quasi single |
| B. | pure single |
| C. | Simple single |
| D. | Double entry |
| Answer» C. Simple single | |
| 1626. |
If Net Profit is Rs. 200000 Insured Standing Charges is Rs. 160000 Sales of The Previous year is Rs. 1800000 Then Gross Profit Rate will be………… |
| A. | . 20% |
| B. | 30% |
| C. | 40% |
| D. | 45% |
| Answer» B. 30% | |
| 1627. |
Dependent branch doesn’t keep any book of account as their entireAccounting work is performed by the head office. |
| A. | true |
| B. | may be false |
| C. | neither true nor false |
| D. | may be true |
| Answer» B. may be false | |
| 1628. |
The word………..Is working together for common purpose. |
| A. | Co-operation |
| B. | co-education |
| C. | Interest |
| D. | enactment |
| Answer» B. co-education | |
| 1629. |
Accounting is mainly concerned with the future management planning. |
| A. | Personal. |
| B. | Quasi single entry |
| C. | Pure single entry |
| D. | Management |
| Answer» E. | |
| 1630. |
The normal and abnormal stock of goods doesn’t appear in branch account asthe closing stock is at the…………….figure. |
| A. | Adjusted |
| B. | profit. |
| C. | balance. |
| D. | loss |
| Answer» B. profit. | |
| 1631. |
The closing balance of book debts account is ascertained by preparing branch………………Account. |
| A. | stock |
| B. | trading. |
| C. | Debtors |
| D. | adjustment |
| Answer» D. adjustment | |
| 1632. |
Single entry constitutes incomplete records rather than single entry |
| A. | credit. |
| B. | Profit. |
| C. | Accounting. |
| D. | Net profit |
| Answer» D. Net profit | |
| 1633. |
Earning per share is very important financial ratio is computed for assessingthe state of --------------price of shares. |
| A. | Market |
| B. | area |
| C. | shops |
| D. | none of these |
| Answer» B. area | |
| 1634. |
…………….collected by central government on an Intra state sale. |
| A. | CGST |
| B. | SGST |
| C. | IGST |
| D. | GST |
| E. | 8th July 2019 |
| Answer» B. SGST | |
| 1635. |
Average clause is applicable in case of under insurance. |
| A. | true |
| B. | false |
| C. | only true |
| D. | may be false |
| Answer» B. false | |
| 1636. |
To fulfill the audit requirements under section of the company act 1956 |
| A. | (B) 156 |
| B. | 228 |
| C. | (a) i 30. |
| D. | 200 |
| Answer» C. (a) i 30. | |
| 1637. |
AS -20 deals with presentation and Computation of--------------- |
| A. | earnings per share |
| B. | profit sharing ratio |
| C. | rate of interest |
| D. | solvency |
| Answer» B. profit sharing ratio | |
| 1638. |
A business takes a……………insurance policy to cover the claims for loss of stocks and loss of profit. |
| A. | Fire |
| B. | Life insurance |
| C. | Car insurance |
| D. | health insurance |
| Answer» B. Life insurance | |
| 1639. |
Sub-standard assets is one which has been classified as non performing asset for a period not exceeding three years. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | only true |
| Answer» C. may be true | |
| 1640. |
Under pure single entry system only……………..Account are kept. |
| A. | Personal |
| B. | double entry |
| C. | Assets |
| D. | None of these |
| Answer» B. double entry | |
| 1641. |
The independent branches are autonomous as they are allowed to make their own purchases from open markers and pay for their expenses. |
| A. | true |
| B. | false |
| C. | may be false |
| D. | both a and b |
| Answer» B. false | |
| 1642. |
A parent co. should account for the investment in subsidiaries in accordancewith AS -13 |
| A. | true |
| B. | false |
| C. | May be true |
| D. | only b |
| Answer» B. false | |
| 1643. |
A marine insurance policy is taken to cover the claims for loss of stock. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | both a and b |
| Answer» C. may be true | |
| 1644. |
Transactions involving receipt in……………..are recorded on receipt side of cashbook. |
| A. | Cash |
| B. | Profit |
| C. | Interest |
| D. | loss |
| Answer» B. Profit | |
| 1645. |
Turnover ratio is also known as . |
| A. | activity ratios. |
| B. | solvency ratios. |
| C. | liquidity ratios. |
| D. | profitability ratios. |
| Answer» B. solvency ratios. | |
| 1646. |
The dividend is related to the market value of shares in . |
| A. | interest cover ratio. |
| B. | fixed dividend cover ratio. |
| C. | debt service coverage ratio. |
| D. | dividend yield ratio. |
| Answer» E. | |
| 1647. |
A co-operative Society may createout of its net profit for payment of bonus toperson who are not its members. |
| A. | bonus equalization fund |
| B. | Reserve fund |
| C. | Education Fund |
| D. | Loans and advances |
| Answer» B. Reserve fund | |
| 1648. |
Liquid asset is determined by |
| A. | Current asset - stock - prepaid expense |
| B. | Current asset + Stock +prepaid expense |
| C. | Current asset + prepaid expense |
| D. | None of the above |
| Answer» B. Current asset + Stock +prepaid expense | |
| 1649. |
Banking companies in India are governed by ………………….. |
| A. | As per act 1932 |
| B. | Income Tax act |
| C. | AS-23 |
| D. | Banking Regulation Act 1949 |
| Answer» E. | |
| 1650. |
Return on equity is also called |
| A. | return on investment. |
| B. | gross profit ratio. |
| C. | return on shareholders funds. |
| D. | return on net worth. |
| Answer» E. | |