MCQOPTIONS
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MCQOPTIONS
This section includes 100 Mcqs, each offering curated multiple-choice questions to sharpen your Common Proficiency Test (CPT) - ICAI knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
If del-credere commission is allowed for bad debts, consignee will debit the bad debts amount to: |
| A. | Commission Earned A/c |
| B. | Consignor’s A/c |
| C. | Trade receivables {Customers) A/c |
| D. | General Trading A/c |
| Answer» B. Consignor’s A/c | |
| 52. |
Goods sent on consignment for Rs.50,000. During transit 1/lOth of goods were destroyed by fire. Again 1/91h of goods received by consignee were destroyed by fire in godown. Half of the remaining goods were sold for Rs.30,000. Freight & insurance paid by consignor were Rs.2,500 and Rs.1500 respectively. Calculate closing inventory. |
| A. | Rs. 24,000 |
| B. | Rs. 21,600 |
| C. | Rs. 20,000 |
| D. | None |
| Answer» C. Rs. 20,000 | |
| 53. |
The nature of Consignment A/c and Consignee’s A/c will be _____ |
| A. | Nominal, Personal |
| B. | Real, Nominal |
| C. | Personal, Real |
| D. | Nominal, Real |
| Answer» B. Real, Nominal | |
| 54. |
If an accommodation bill of Rs.50,000 is discounted for Rs.49,000 and the proceeds are shared by X & Y m the ratio of 1: 4, the discount to be borneby Y is _____ |
| A. | Rs. 800 |
| B. | Rs. 600 |
| C. | Rs. 1,000 |
| D. | Rs. 400 |
| Answer» B. Rs. 600 | |
| 55. |
A Bill of Exchange, before its acceptance is called as _____ |
| A. | Draft |
| B. | Bills Receivable |
| C. | Bills Payable |
| D. | None of these |
| Answer» B. Bills Receivable | |
| 56. |
Entries for prepaid expenses, outstanding expenses and depreciation are called as _____ |
| A. | Adjustment Entries |
| B. | Transfer Entries |
| C. | Closing Entries |
| D. | Rectification Entries |
| Answer» B. Transfer Entries | |
| 57. |
X sold goods to Y at cost+ 10%. Y sold the goods to Z at cost+ 20% profit on sales. Cost of the goods to X is Rs.50,000. Find out the cost of the goods to z. |
| A. | Rs.66,000 |
| B. | Rs.68,750 |
| C. | Rs.55,ooo |
| D. | Rs.10,000 |
| Answer» C. Rs.55,ooo | |
| 58. |
The Fixed Assets of a company is double of the current assets and half of capital. If the current assets are Rs.3,00,000 and investments Rs.4,oo,ooo, calculate the current liabilities assuming that there are no other items in the balance sheet. |
| A. | Rs. 2,00,000 |
| B. | Rs. 1,00,000 |
| C. | Rs. 3,00,000 |
| D. | Rs. 4,00,000 |
| Answer» C. Rs. 3,00,000 | |
| 59. |
Trade Receivables as per Trial Balance = Rs.80,000. Further information: 1. Bad debts Rs.2,000 2. Provision for discount on Trade Receivables @ 5% will be _____ |
| A. | Rs. 4,100 |
| B. | Rs. 4,000 |
| C. | Rs. 3,900 |
| D. | Rs. 4,200 |
| Answer» D. Rs. 4,200 | |
| 60. |
Which of the following errors are not revealed by the trial balance? |
| A. | Wrong amount entered in the book of original entry |
| B. | Wrong amount entered in the sales book |
| C. | Complete omission of a transaction in the book of original entry |
| D. | All of the above |
| Answer» E. | |
| 61. |
Trial Balance shows arithmetical accuracy of ledger accounts, but it is not a _____ proof of accuracy. |
| A. | Conclusive |
| B. | Exclusive |
| C. | Submissive |
| D. | Inclusive |
| Answer» B. Exclusive | |
| 62. |
OD balance as per pass book is Rs. 2175/- Cheques of Rs.100, Rs.175 and Rs.150 are issued, but not yet presented for payment. A Cheque of Rs.600 is deposited in bank but not yet cleared. Find out the OD balance as per cash book. |
| A. | Rs. 2,000 |
| B. | Rs.2,150 |
| C. | Rs.1,475 |
| D. | Rs.1,925 |
| Answer» B. Rs.2,150 | |
| 63. |
When the two aspects of a transaction are posted in the Cash Book itself, such an entry is called as _______ |
| A. | Double Entry |
| B. | Debit Entry |
| C. | Single Entry |
| D. | Contra Entry |
| Answer» E. | |
| 64. |
List price of the goods purchased= Rs.60,000 Cash paid = Rs.45,000 {After receiving a cash discount of Rs.9,000). Trade discount= ? |
| A. | 10% |
| B. | 7.5 % |
| C. | 15% |
| D. | 25% |
| Answer» B. 7.5 % | |
| 65. |
Out of the following statements, Identity the wrong statement. |
| A. | Real & Personal A/c’s are transferred to Balance Sheet |
| B. | Nominal A/e’s are transfer to Profit and Loss A/c |
| C. | Cash A/c is not opened seperately in the ledger |
| D. | Rent A/c is a Personal A/c and Outstandig Rent A/c is a Nominal A/c |
| Answer» E. | |
| 66. |
A sent wheat to B and B sent the same to mill. Here it is said that |
| A. | B has accepted the wheat expressly |
| B. | B has accepted the wheat by implied adoption |
| C. | B has accepted the wheat by estoppel |
| D. | None of the above |
| Answer» C. B has accepted the wheat by estoppel | |
| 67. |
In case of breach of condition as to quality or fitness |
| A. | buyer can sue the seller |
| B. | buyer can sue for damages |
| C. | buyer can refuse to pay the price |
| D. | buyer can return the goods |
| Answer» E. | |
| 68. |
In relation to sale of goods, the latin term ‘Nemodat quod Non habet’ means __ |
| A. | goods by estoppel |
| B. | no one can pass a better title than he himself has |
| C. | sale by mercantile agent |
| D. | sale by finder of goods |
| Answer» C. sale by mercantile agent | |
| 69. |
In the event of insolvency of buyer before making the payment, but seller does not have right of lien, then the seller __ |
| A. | must deliver the goods to official receiver |
| B. | must resell the goods to any other |
| C. | must retain the goods for any other payment due from buyer |
| D. | None |
| Answer» B. must resell the goods to any other | |
| 70. |
Future goods are __ |
| A. | identified at the time of sale |
| B. | produced after contract of sale |
| C. | identified by description at the time of sale |
| D. | None |
| Answer» C. identified by description at the time of sale | |
| 71. |
Right of lien is _ |
| A. | right of stoppage of goods in transit |
| B. | right of sub sale |
| C. | right to retain the goods |
| D. | right to resell |
| Answer» D. right to resell | |
| 72. |
In case of specific goods in deliverable state the sale is concluded |
| A. | when goods are delivered to buyer |
| B. | when contract of sale is made by parties |
| C. | when money is paid by buyer |
| D. | when goods are delivered and money is paid |
| Answer» C. when money is paid by buyer | |
| 73. |
A person appointed to bid on behalf of seller is called |
| A. | Puffer |
| B. | Auctioneer |
| C. | Damper |
| D. | either b) or c) |
| Answer» B. Auctioneer | |
| 74. |
X purchased 10 dozen of pencil sharpners and when they are used thay are found to be blunt and not at all usefull to sharpens pencils .here is the breach of |
| A. | condition as to wholesomeness |
| B. | condition as to merchantability |
| C. | condition as to quality orfitnenss |
| D. | None of the above |
| Answer» C. condition as to quality orfitnenss | |
| 75. |
Which of the following is not a type of document of title to goods? |
| A. | Bill of lading |
| B. | Railway receipt |
| C. | dock warrant |
| D. | None |
| Answer» E. | |
| 76. |
In a partnership firm, X, a partner bought immovable property without the consent of other partners. Then X __ |
| A. | cannot recover any amount because it is not covered under implied authority |
| B. | can recover full amount from partners personally |
| C. | can recover the amount from firm because this act is within the scope of implied authority of partner |
| D. | None of the above |
| Answer» B. can recover full amount from partners personally | |
| 77. |
“Just and equitable “ground for dissolution of firm by court is/are _ |
| A. | dead lock in management |
| B. | Lack of substratum |
| C. | no talking terms between partners |
| D. | all of the above |
| Answer» E. | |
| 78. |
A, B and C are partners. B who took the house on rental basis for the firm failed to pay the rent. The land lord can recover the rent from |
| A. | B only |
| B. | A and C only |
| C. | B and C only |
| D. | All partners |
| Answer» E. | |
| 79. |
X and Y entered into partnership agreement where X has to take all profits and Y shall receive wages. Here __ |
| A. | X and Y are not partners |
| B. | X and Y are sub-partners |
| C. | X and Y are partners |
| D. | X and Y are active partners |
| Answer» B. X and Y are sub-partners | |
| 80. |
A partnership formed for undertaking/ adventure is — |
| A. | partnership at will |
| B. | particular partnership |
| C. | Partnership for fixed term |
| D. | None |
| Answer» C. Partnership for fixed term | |
| 81. |
a firm is the name of |
| A. | the partner |
| B. | the minors on the firm |
| C. | the business undder which the firm carries on the business |
| D. | the collective name under which it carries on business |
| Answer» E. | |
| 82. |
X, Y and Z are partners. X retired withoutgiving public notice. Later on Y and z incurred liabilities with DLF Co Ltd. |
| A. | X is liable along with Y and Z |
| B. | X only is liable |
| C. | Yand Z only are Liable |
| D. | None |
| Answer» B. X only is liable | |
| 83. |
Which of the following statements about registration of firm is not true? |
| A. | lt must be done at the time of formation |
| B. | It may be done at the time of formation |
| C. | lt may be done before filing suit against third party |
| D. | It may be done at any time after it’s formation |
| Answer» B. It may be done at the time of formation | |
| 84. |
Public notice is not necessary in case of _ |
| A. | admission of partner |
| B. | expulsion of partner |
| C. | dissolution of partnership firm |
| D. | All of the above |
| Answer» B. expulsion of partner | |
| 85. |
Quantum meruit literally means __ |
| A. | as much as is merited |
| B. | as much as is credited |
| C. | as much as no work done |
| D. | None of the above |
| Answer» B. as much as is credited | |
| 86. |
Rescission of contract means: |
| A. | cancellation of contract |
| B. | alteration of terms |
| C. | minor changes |
| D. | all of the above |
| Answer» B. alteration of terms | |
| 87. |
Contract is discharged by |
| A. | performance of contract |
| B. | mutual agreement |
| C. | breach of contract |
| D. | Any of the above |
| Answer» E. | |
| 88. |
X owes Rs. 15,000/- to Y and he gave Rs. 12,000/- in full and final settlement of the outstanding due. This is called __ |
| A. | Novation |
| B. | Alteration |
| C. | Remission |
| D. | Cancellation |
| Answer» D. Cancellation | |
| 89. |
X, y and Z jointly promised to pay Rs.75000 to D.Z is compelled to pay the whole amount .then Z |
| A. | Can recover Rs. 25,000/- each from X and Y |
| B. | Can recover Rs. 50,000/-from X |
| C. | Can recover Rs. 50,000/- from Y |
| D. | Can not recover anything from X and Y |
| Answer» B. Can recover Rs. 50,000/-from X | |
| 90. |
A sold goods to Bat a price of Rs.12,000/- .Towards payment, B gave a post datedcheque for Rs. 12,000/-. Here |
| A. | A is bound by the payment |
| B. | A is not bound to accept the cheque |
| C. | A is bound to accept the cheque at the request of B |
| D. | None |
| Answer» C. A is bound to accept the cheque at the request of B | |
| 91. |
A promises to pay Ba sum of Rs. 10,000/- if it rains and in return B promises to pay Rs. 10,000/- to A if it does not rain. It is a/an __ |
| A. | uncertain agreement |
| B. | wagering agreement |
| C. | contingent contract |
| D. | valid agreement |
| Answer» C. contingent contract | |
| 92. |
Finder of lost goods should __ |
| A. | trace the true owner |
| B. | take care of the goods |
| C. | not mix with his own goods |
| D. | all of the above |
| Answer» E. | |
| 93. |
An agreement to remain unmarried is |
| A. | valid |
| B. | voidable |
| C. | void |
| D. | unenforceable |
| Answer» C. void | |
| 94. |
A person who is in a position to dominate will of the other, it is __ or written is |
| A. | fraud |
| B. | misrepresentation |
| C. | undue influence |
| D. | All of the above |
| Answer» D. All of the above | |
| 95. |
Ignorance of law is no excuse’ in case of |
| A. | mistake as to law of land |
| B. | foreign law |
| C. | unilateral mistake |
| D. | bilateral mistake |
| Answer» B. foreign law | |
| 96. |
The term consensus ad idem means |
| A. | general consensus |
| B. | reaching an agreement |
| C. | meeting of minds upon the samething in |
| D. | all the above |
| Answer» D. all the above | |
| 97. |
A lunatic person means: |
| A. | insolvent person |
| B. | person of unsound mind |
| C. | person disqualified by Law |
| D. | Alien enemy |
| Answer» C. person disqualified by Law | |
| 98. |
Which of the following is valid? |
| A. | Agreement made out of natural love and affection |
| B. | A promise to pay time barred debt |
| C. | Compensation for past voluntary services |
| D. | All of the above |
| Answer» E. | |
| 99. |
If the agreement consists of legal and illegal parts, and legal part is separable from illegal part, then legal part is __ |
| A. | valid |
| B. | void |
| C. | voidable |
| D. | None |
| Answer» B. void | |
| 100. |
The term quid pro quo is applied in relation to |
| A. | consideration |
| B. | free consent |
| C. | capacity of parties |
| D. | legality of object |
| Answer» B. free consent | |