79 + Mcqs in Advance Accounting in Bachelor of Commerce (B Com) Page 2 McqOptions

51.	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

Discussion

52.	Foreign Branch almost invariably trade independently and records their transaction in
A.	cost price
B.	Market value
C.	Foreign currency
D.	invoice price
Answer» D. invoice price

Discussion

53.	The closing balance of book debts account is ascertained by preparing branch Account.
A.	stock
B.	trading.
C.	Debtors
D.	adjustment
Answer» D. adjustment

Discussion

54.	Under the entry system personal accounts, cashbook and other subsidiary books are kept separately.
A.	Pure single
B.	Quasi single
C.	Simple single
D.	Double entry
Answer» C. Simple single

Discussion

55.	The investment on hand at the end of the period are valued at cost price or market whichever is
A.	Less
B.	included
C.	Addd
D.	excluded
Answer» B. included

Discussion

56.	Deposits from Society and individuals should be shown separately to the .. side of balance sheet.
A.	Liabilities
B.	Current Assets
C.	Education Fund
D.	Fixed Assets
Answer» B. Current Assets

Discussion

57.	All sums of .received and expended by the Society and the matters in respect of which receipts and expenditure take place.
A.	Money
B.	Profit
C.	Interest
D.	Income
Answer» B. Profit

Discussion

58.	Interest paid and payable comes to the side of the profit and loss account.
A.	Expenditure
B.	Receipt
C.	Interest
D.	income
Answer» B. Receipt

Discussion

59.	Banks are to recognize their income on .basis in respect of income on performing asset.
A.	Accrual
B.	cash
C.	credit
D.	none.
Answer» B. cash

Discussion

60.	Actual petty expenses paid by branch from petty cash are to br shown separately in Branch Account.
A.	true
B.	false
C.	both a and b
D.	none of the above
Answer» B. false

Discussion

61.	Banks are to recognize their income on cash basis in respect of income on performing assets.
A.	true
B.	false
C.	may be true
D.	may be false
Answer» C. may be true

Discussion

62.	Banks are to recognize their income on basis in respect of income on non performing asset.
A.	Accrual
B.	cash
C.	credit
D.	none.
Answer» C. credit

Discussion

63.	Every banking company should prepare a balance sheet and profit and loss accounts as on ..each year.
A.	31st March
B.	31st July
C.	31st December
D.	None
Answer» B. 31st July

Discussion

64.	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

Discussion

65.	.fund is for the purpose of construction of building for the business of the Society.
A.	building fund
B.	Reserve fund
C.	Education Fund
D.	Loans and advances
Answer» B. Reserve fund

Discussion

66.	The amount paid by insured to insurer as a consideration is known as premium.
A.	true
B.	false
C.	may be true
D.	may be false
Answer» B. false

Discussion

67.	If Sales of last year is Rs. 600000 and sales of corresponding current year is Rs.200000 then Short sales will be
A.	400000
B.	500000
C.	250000
D.	256000
Answer» B. 500000

Discussion

68.	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%

Discussion

69.	If Sales of last year is Rs. 450000 and sales of corresponding current year is Rs.200000 then Short sales will be
A.	250000
B.	500000
C.	250000
D.	256000
Answer» B. 500000

Discussion

70.	General insurance business in India is transacted by Life Insurance Corporation of India.
A.	true
B.	false
C.	may be true
D.	may be false
Answer» C. may be true

Discussion

71.	Insurance is a financial service for collecting the saving of the public and providing them with a risk of a coverage.
A.	true
B.	false
C.	may be true
D.	a and b
Answer» B. false

Discussion

72.	The Insurance Company cannot prevent the happening of risk but provide for losses at the happening of risk.
A.	true
B.	false
C.	only a
D.	a and b
Answer» B. false

Discussion

73.	IF Gross profit rate is 20% and Short Sales is Rs. 400000, then Loss of Profit on Sales will be ..
A.	Rs. 80000
B.	Rs. 50000
C.	Rs. 85000
D.	None of the above
Answer» B. Rs. 50000

Discussion

74.	IF Gross profit rate is 40% and Short Sales is Rs. 250000, then Loss of Profit on Sales will be ..
A.	Rs. 100000
B.	Rs. 50000
C.	Rs. 85000
D.	None of the above
Answer» B. Rs. 50000

Discussion

75.	Due to the inclusion of average clause in the fire insurance policy , an insured becomes a .in the event of under insurance.
A.	co-insurer
B.	provision
C.	profit
D.	loss
Answer» B. provision

Discussion

76.	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

Discussion

77.	A policy of fire insurance is intended to protect the assured against the loss caused by fire.
A.	true
B.	false
C.	neither true nor false
D.	may be false
Answer» B. false

Discussion

78.	If value of stock on date of fire is 420000, salvage is 10000 then stock destroyed by fire will
A.	410000
B.	400000
C.	450000
D.	430000
Answer» B. 400000

Discussion

79.	Stock and Debtors method of branch accounting is generally used where branch turnover is substantially
A.	loss
B.	lower
C.	High.
D.	Profit
Answer» D. Profit

Discussion

Explore topic-wise MCQs in Bachelor of Commerce (B Com).

Rebate of Bills discounted is an income received in advanced which is carried forward as other liability.

Foreign Branch almost invariably trade independently and records their transaction in

The closing balance of book debts account is ascertained by preparing branch Account.

Under the entry system personal accounts, cashbook and other subsidiary books are kept separately.

The investment on hand at the end of the period are valued at cost price or market whichever is

Deposits from Society and individuals should be shown separately to the .. side of balance sheet.

All sums of .received and expended by the Society and the matters in respect of which receipts and expenditure take place.

Interest paid and payable comes to the side of the profit and loss account.

Banks are to recognize their income on .basis in respect of income on performing asset.

Actual petty expenses paid by branch from petty cash are to br shown separately in Branch Account.

Banks are to recognize their income on cash basis in respect of income on performing assets.

Banks are to recognize their income on basis in respect of income on non performing asset.

Every banking company should prepare a balance sheet and profit and loss accounts as on ..each year.

Sub standard asset are certain loan asset of a bank which are classified as .assets for a period not exceeding two year.

.fund is for the purpose of construction of building for the business of the Society.

The amount paid by insured to insurer as a consideration is known as premium.

If Sales of last year is Rs. 600000 and sales of corresponding current year is Rs.200000 then Short sales will be

If Gross profit is 600000, sales is Rs. 15,00,000 then gross profit ratio will be ..

If Sales of last year is Rs. 450000 and sales of corresponding current year is Rs.200000 then Short sales will be

General insurance business in India is transacted by Life Insurance Corporation of India.

Insurance is a financial service for collecting the saving of the public and providing them with a risk of a coverage.

The Insurance Company cannot prevent the happening of risk but provide for losses at the happening of risk.

IF Gross profit rate is 20% and Short Sales is Rs. 400000, then Loss of Profit on Sales will be ..

IF Gross profit rate is 40% and Short Sales is Rs. 250000, then Loss of Profit on Sales will be ..

Due to the inclusion of average clause in the fire insurance policy , an insured becomes a .in the event of under insurance.

A business takes a insurance policy to cover the claims for loss of stocks and loss of profit.

A policy of fire insurance is intended to protect the assured against the loss caused by fire.

If value of stock on date of fire is 420000, salvage is 10000 then stock destroyed by fire will

Stock and Debtors method of branch accounting is generally used where branch turnover is substantially