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. |
What does 'aged debtors analysis' signify? |
| A. | shows how long debts have been outstanding |
| B. | How old the customers are |
| C. | How long does a business take to repay the bank loans |
| D. | Minimum number of old debtors |
| Answer» B. How old the customers are | |
| 2. |
The expenses related to the main operations of a business are referred to as |
| A. | Administration expense |
| B. | Non-administration expense |
| C. | Selling expense |
| D. | Operating expense |
| Answer» E. | |
| 3. |
Assets minus liabilities equal to |
| A. | Goodwill |
| B. | Working capital |
| C. | Net income |
| D. | Capital |
| Answer» E. | |
| 4. |
Office equipment is a ______ asset for a computer manufacturer and the same office equipment is a ____ asset for a company that deals in these equipments |
| A. | Current, fixed |
| B. | Fixed, intangible |
| C. | Tangible, intangible |
| D. | Fixed, current |
| Answer» E. | |
| 5. |
Which of the following foxed assets is not depreciated in the ordinary circumstances? |
| A. | Plant & Machinery |
| B. | Building account |
| C. | Land |
| D. | Equipment's |
| Answer» D. Equipment's | |
| 6. |
Which one of the following concepts states that the publication or presentation of financial statements should not be delayed? |
| A. | Objectivity concept |
| B. | Timing concept |
| C. | Timeliness concept |
| D. | Reliability concept |
| Answer» D. Reliability concept | |
| 7. |
The going concern concept assumes that |
| A. | The entity continue running for forseeable future |
| B. | The entity continue running until the end of accounting period |
| C. | The entity will close its operation in 10 years |
| D. | The entity can't be liquidated |
| Answer» B. The entity continue running until the end of accounting period | |
| 8. |
The long term assets that have no physical existence but are rights that have value is known as |
| A. | Current assets |
| B. | Fixed assets |
| C. | Intangible assets |
| D. | Investments |
| Answer» D. Investments | |
| 9. |
Interest on debentures is calculated on |
| A. | Purchase value of debentures |
| B. | Market value of debentures |
| C. | Face value of debentures |
| D. | All of the above |
| Answer» D. All of the above | |
| 10. |
Which liability is not included in the total of Balance Sheet? |
| A. | Current liabilities |
| B. | Contingent liabilities |
| C. | Fixed liabilities |
| D. | All of the above |
| Answer» C. Fixed liabilities | |
| 11. |
Drawing is a type of |
| A. | Expense |
| B. | Withdrawal of capital |
| C. | Income |
| D. | None of the above |
| Answer» C. Income | |
| 12. |
_____ will generally show a debit balance |
| A. | Bank loan |
| B. | Bad debts recovered |
| C. | Drawings |
| D. | Salary payable |
| Answer» D. Salary payable | |
| 13. |
Dismantling and demolition charges is a |
| A. | Deferred Revenue expenditure |
| B. | Capital expenditure |
| C. | Revenue expenditure |
| D. | None of the above |
| Answer» D. None of the above | |
| 14. |
Recovery of bad debt is a |
| A. | Revenue expenditure |
| B. | Revenue receipt |
| C. | Deferred expenses |
| D. | Capital receipt |
| Answer» C. Deferred expenses | |
| 15. |
There must be a gap of at least ___ month between two calls |
| A. | 3 |
| B. | 1 |
| C. | 6 |
| D. | 2 |
| Answer» C. 6 | |
| 16. |
Suspense account given in the trial balance will be entered in the |
| A. | Manufacturing account |
| B. | Balance sheet |
| C. | Trading account |
| D. | Profit and loss account |
| Answer» C. Trading account | |
| 17. |
Which of the following instruments is not a negotiable instrument? |
| A. | Bearer cheque |
| B. | Promissory note |
| C. | Crossed cheque |
| D. | Bills of exchange |
| Answer» D. Bills of exchange | |
| 18. |
Petty cash balance is |
| A. | Liability |
| B. | Income |
| C. | Expense |
| D. | Asset |
| Answer» E. | |
| 19. |
_____ is not required in Promissory Note |
| A. | Acceptance |
| B. | Noting |
| C. | Discounting |
| D. | None of the above |
| Answer» B. Noting | |
| 20. |
Declared dividend should be classified in the balance sheet as a |
| A. | Provision |
| B. | Current liability |
| C. | Reserve |
| D. | Current asset |
| Answer» C. Reserve | |
| 21. |
The claims against the company not acknowledged as debts are shown as |
| A. | Current liabilities |
| B. | Loans and advances |
| C. | Notes to balance sheet |
| D. | Director's report |
| Answer» D. Director's report | |
| 22. |
Patents accounts are |
| A. | Secured loan account |
| B. | Nominal account |
| C. | Real account |
| D. | Debtors account |
| Answer» D. Debtors account | |
| 23. |
Bills receivable endorsed are debited to |
| A. | Bills Payable A/c |
| B. | Debtor's A/c |
| C. | Endorsee A/c |
| D. | Bills Receivable A/c |
| Answer» D. Bills Receivable A/c | |
| 24. |
In case goods are manufactured and segregated for specified consumers, the best method for valuation of inventory would be |
| A. | FIFO |
| B. | Simple average |
| C. | Base stock |
| D. | Specific identification method |
| Answer» E. | |
| 25. |
The expenses that have fallen due for payment but not paid are |
| A. | Outstanding expenses |
| B. | Deffered expenses |
| C. | Accrues expenses |
| D. | Prepaid expenses |
| Answer» B. Deffered expenses | |
| 26. |
Purchase book is maintained to record |
| A. | All credit purchases |
| B. | All cash purchases |
| C. | Purchases of goods |
| D. | None of the above |
| Answer» B. All cash purchases | |
| 27. |
The portion of the acquisition cost of an asset yet to be allocated is known as |
| A. | Written down value |
| B. | Accumulated value |
| C. | Realizable value |
| D. | Salvage value |
| Answer» B. Accumulated value | |
| 28. |
Carriage inwards refers to the cost of transportation for |
| A. | Purchase of materials |
| B. | Sale of products |
| C. | Returns outward |
| D. | Return of unsold goods |
| Answer» B. Sale of products | |
| 29. |
Which one of the following can offer its share to public at large? |
| A. | Private limited company |
| B. | Listed company |
| C. | Partnership firm |
| D. | Trust |
| Answer» C. Partnership firm | |
| 30. |
Expenditure incurred annually on renewal of patent is a |
| A. | Revenue expenditure |
| B. | Capital expenditure |
| C. | Financial expenditure |
| D. | Operating expenditure |
| Answer» B. Capital expenditure | |
| 31. |
Which of the following items of balance sheet are useful in evaluating a company's liquidity? |
| A. | Current assets and other assets |
| B. | Current liabilities and current assets |
| C. | Current liabilities and plant and equipment |
| D. | In current liabilities and other assets |
| Answer» C. Current liabilities and plant and equipment | |
| 32. |
An asset that is NOT physical in nature is called |
| A. | Intangible asset |
| B. | Liquid asset |
| C. | Current asset |
| D. | Fixed asset |
| Answer» B. Liquid asset | |
| 33. |
Which of the following is the most important document of the company? |
| A. | Memorandum of association |
| B. | Articles of association |
| C. | Annual report |
| D. | Prospectus |
| Answer» B. Articles of association | |
| 34. |
What is the next step to Journalizing in accounting cycle? |
| A. | Recording |
| B. | Posting |
| C. | Balancing |
| D. | Analyzing |
| Answer» C. Balancing | |
| 35. |
Net Profit = Gross Profit minus |
| A. | Operating expenses |
| B. | Product cost |
| C. | Deferred expenses |
| D. | Direct cost |
| Answer» B. Product cost | |
| 36. |
A debit balance in the bank statement indicates |
| A. | Cash at bank |
| B. | Bank overdraft |
| C. | Over payment to creditors |
| D. | Cash in hand |
| Answer» C. Over payment to creditors | |
| 37. |
Cost incurred for the maintenance of shop is considered as |
| A. | Deffered expense |
| B. | Capital expenditure |
| C. | Revenue expenditure |
| D. | Preliminary expense |
| Answer» D. Preliminary expense | |
| 38. |
The assets which have a limited useful life are termed as |
| A. | Limited assets |
| B. | Depreciable assets |
| C. | Unlimited assets |
| D. | None of the above |
| Answer» C. Unlimited assets | |
| 39. |
Which of the following account will be credited when a typewriter is sold that has been used in the office? |
| A. | Office equipment account |
| B. | Cash account |
| C. | Sales account |
| D. | Purchase account |
| Answer» B. Cash account | |
| 40. |
Which of the following is TRUE about the treatment of insurance premium paid in advance |
| A. | Current asset |
| B. | Current liability |
| C. | Short term liability |
| D. | Fixed asset |
| Answer» B. Current liability | |
| 41. |
Trial Balance is commonly prepared |
| A. | Frequently during the year |
| B. | At the end of an accounting period |
| C. | At the end of a month |
| D. | At the end of a year |
| Answer» C. At the end of a month | |
| 42. |
The closing balance of petty cash book is considered as |
| A. | Liability |
| B. | Asset |
| C. | Expenses |
| D. | Income |
| Answer» C. Expenses | |
| 43. |
Which of the following is a type of cash receipt journal + cash payment journal? |
| A. | Bank statement |
| B. | Statement of cash flow |
| C. | Cash book |
| D. | Cash documents |
| Answer» D. Cash documents | |
| 44. |
Specialized journals are more adequate for which type of businesses? |
| A. | Small businesses |
| B. | Big businesses |
| C. | Sole proprietorship |
| D. | Partnership |
| Answer» C. Sole proprietorship | |
| 45. |
The normal balance of capital account is |
| A. | Credit balance |
| B. | Debit balance |
| C. | Cash balance |
| D. | Neither debit nor credit balance |
| Answer» B. Debit balance | |
| 46. |
Revenue and expense accounts are referred to as |
| A. | Nominal accounts |
| B. | Real account |
| C. | Cash account |
| D. | Bank account |
| Answer» B. Real account | |
| 47. |
Sales on credit is recorded in which of the following journal? |
| A. | Purchase journal |
| B. | Sales journal |
| C. | Purchase return journal |
| D. | Sales return journal |
| Answer» C. Purchase return journal | |
| 48. |
The standard format of Journal does not include which of the following? |
| A. | Assets column |
| B. | Date column |
| C. | Description column |
| D. | Amount column |
| Answer» B. Date column | |
| 49. |
Using 'lower of cost and net realisable value' for the purpose of inventory valuation is the implementation of which of the following concepts? |
| A. | The going concern concept |
| B. | The separate entity concept |
| C. | The prudence concept |
| D. | Matching concept |
| Answer» D. Matching concept | |
| 50. |
What type of expenses are paid out of Gross Profit? |
| A. | General expenses |
| B. | Financial expenses |
| C. | Selling expenses |
| D. | All of the above |
| Answer» E. | |