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. |
Opening entries are generally passed through- |
| A. | General Journal ; |
| B. | Purchase Journal ; |
| C. | Profit and Loss A/c ; |
| D. | Suspense A/c |
| Answer» B. Purchase Journal ; | |
| 2. |
Which of the following factors are primarily considered to determine the economic life of an asset? |
| A. | Passage of time, asset usage, and obsolescence |
| B. | Tax regulations and SEBI guidelines |
| C. | Tax regulations and asset usage |
| D. | SEBI guidelines and Asset usage |
| Answer» B. Tax regulations and SEBI guidelines | |
| 3. |
________________ is an example of wasting asset |
| A. | Mines |
| B. | Land |
| C. | Closing stoc |
| Answer» B. Land | |
| 4. |
AS ———— replaced AS 8 |
| A. | 29 ; |
| B. | 30 ; |
| C. | 28 ; |
| D. | 26 |
| Answer» E. | |
| 5. |
______________ represents a potential obligation that could be created depending onthe outcome of an event. |
| A. | Internal Liability |
| B. | Current Liability |
| C. | Contingent Liability |
| D. | Non-current Liability |
| Answer» D. Non-current Liability | |
| 6. |
The process of balancing of an account involves equalization of both sides of the account. If the debit side of an account exceeds the credit side, the difference is put on the credit side. The said balance is(i) A Debit balance (ii) A Credit balance (iii) An expenditure or an Asset (iv) An Income or a Liability |
| A. | Only (ii) above |
| B. | Only (iv) above |
| C. | Both (i) and (iii) above |
| D. | Both (ii) and (iii) above |
| Answer» D. Both (ii) and (iii) above | |
| 7. |
According to the money measurement concept, the following will be recorded in thebooks of account of the business: |
| A. | Health of Managing Director of the company |
| B. | Quality of company’s goods |
| C. | Value of Plant & Machinery |
| D. | Strike by employees |
| Answer» D. Strike by employees | |
| 8. |
Which shareholders have a right to receive the arrears of dividend from future profits : |
| A. | Redeemable Preference Shares |
| B. | Participating Preference Shares |
| C. | Cumulative Preference Shares |
| D. | Non-Cumulative Preference Shares |
| Answer» D. Non-Cumulative Preference Shares | |
| 9. |
Single entry system of book keeping system |
| A. | is best system |
| B. | is scientific system |
| C. | is incomplete system |
| D. | is most popular system |
| Answer» D. is most popular system | |
| 10. |
External users of accounting information do not include: |
| A. | Employees |
| B. | Government |
| C. | Potential Investors |
| D. | Financial Institutions |
| Answer» B. Government | |
| 11. |
Depreciation is the process of: |
| A. | Apportionment of the cost of the asset over its useful life |
| B. | Valuation of assets |
| C. | Maintenance of asset in a state of efficiency |
| D. | none |
| Answer» B. Valuation of assets | |
| 12. |
Such systems also generate reports which allow the accounting professionals to have aproper view of different transactions in a comprehensive manner. |
| A. | Enterprise Resource Planning software |
| B. | Pre-packaged accounting software |
| C. | Spreadsheet software |
| D. | Customised accounting packages |
| Answer» C. Spreadsheet software | |
| 13. |
Which of the following voucher is used to record transactions that do not affect bank & cash? |
| A. | Journal Voucher ; |
| B. | Receipt Voucher ; |
| C. | Payment Voucher ; |
| D. | Nominal Voucher |
| Answer» B. Receipt Voucher ; | |
| 14. |
Provision for Depreciation is |
| A. | An appropriation of profit |
| B. | A charge against the profit |
| C. | Accumulation of reserves |
| D. | Writing of losses |
| Answer» C. Accumulation of reserves | |
| 15. |
Annual depreciation of machine is 40000, cost of machine is 500000, rate of depreciation according to straight-line method will be |
| A. | 9% |
| B. | 18% |
| C. | 16% |
| D. | 8% |
| Answer» E. | |
| 16. |
Insurance prepaid is shown as |
| A. | Current Asset |
| B. | Current Liability |
| C. | Fixed Asset |
| D. | Income |
| Answer» B. Current Liability | |
| 17. |
What is the example of wasting assets |
| A. | Land |
| B. | Mine |
| C. | Stock |
| D. | Fixed Assets |
| Answer» C. Stock | |
| 18. |
In accounting revenue is generally treated to be realized when goods or services are: |
| A. | Not stated to the customers |
| B. | Not stated to the competitors |
| C. | Furnished to the customers |
| D. | Not stated at all |
| Answer» D. Not stated at all | |
| 19. |
Debit is the asset means |
| A. | Increase |
| B. | Decrease |
| C. | No charg |
| Answer» B. Decrease | |
| 20. |
Gross Profit is the difference between |
| A. | Net Sales and Cost of goods sold ; |
| B. | PAT and Dividends ; |
| C. | Net Sales and Cost of production ; |
| D. | Net Sales and Direct costs of productions |
| Answer» B. PAT and Dividends ; | |
| 21. |
Capital account is a |
| A. | Fictitious account |
| B. | Personal account |
| C. | Liability account |
| D. | Nominal account |
| Answer» C. Liability account | |
| 22. |
Sudhir of Simla consigned 100kg of vegetables to D of Delhi for ` 1500. He spent ` 75 on transportation. 10kg were found unfit for resale due to weather conditions and of the remaining 85 kg were sold for ` 1675. Find the value of closing stock. |
| A. | 87.50 ; |
| B. | 75.00 ; |
| C. | 80.00 ; |
| D. | 90.00 |
| Answer» B. 75.00 ; | |
| 23. |
Bad debts Recovered `1,000. It will be |
| A. | Credited to Bad debts A/c |
| B. | Credited to debtor’s personal A/c |
| C. | Debited to creditor’s personal A/c |
| D. | Credited to bad debts recovered A/c |
| Answer» E. | |
| 24. |
Royalty is an income to lesseeSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 25. |
Which of these term is not found in a Joint Venture business |
| A. | Del Credere Commission ; |
| B. | Co-venturer ; |
| C. | Joint Bank A/c ; |
| D. | Memorandum Joint Venture A/c |
| Answer» B. Co-venturer ; | |
| 26. |
Which of the following is an example of Capital Expenditure? |
| A. | Inventory of raw materials, work-in-progress and finished goods; |
| B. | Insurance premium; |
| C. | Taxes and legal expenses; |
| D. | None of the above. |
| Answer» E. | |
| 27. |
Accounting is concerned with |
| A. | Monetary |
| B. | Non- monetary |
| C. | Monetary & Nonmonetar |
| Answer» B. Non- monetary | |
| 28. |
Accounting is a/ an – |
| A. | Science ; |
| B. | Art ; |
| C. | Subject matter of sociology ; |
| D. | Subject matter of philosophy |
| Answer» C. Subject matter of sociology ; | |
| 29. |
Income and Expenditure Account generally indicates:Sol: |
| A. | Surplus/ deficit |
| B. | Cash balance |
| C. | Capital fund |
| D. | Net profit/Loss |
| Answer» B. Cash balance | |
| 30. |
Generally sacrifice ratio is concerned with the situation of |
| A. | Admission of a new partner |
| B. | Retirement of a partner |
| C. | Dissolution of firm |
| D. | Conversion of firm into company |
| Answer» B. Retirement of a partner | |
| 31. |
Advertisement expenses are apportioned among departments in the proportion of |
| A. | sales of each department |
| B. | purchases of each department |
| C. | no. of units sold by each department |
| D. | cost of sales of each department |
| Answer» B. purchases of each department | |
| 32. |
A company can issue sweat-equity shares to: |
| A. | The directors of the company only |
| B. | The employees of the company only |
| C. | The directors and the employees of the company |
| D. | The bankers and creditors of the company |
| Answer» D. The bankers and creditors of the company | |
| 33. |
Shares having preferential right as to dividend and repayment of capital are termed as in |
| A. | Equity shares |
| B. | Preference Shares |
| C. | Right Issue |
| D. | Issue of Bonus shares |
| Answer» C. Right Issue | |
| 34. |
When bank charge incurred, overdraft will be __________________________ |
| A. | increased |
| B. | decreased |
| C. | no charg |
| Answer» B. decreased | |
| 35. |
Discount on shares and debentures are shown in |
| A. | Profit and loss appropriation account |
| B. | Asset side of the balance sheet |
| C. | Liability side of the balance sheet |
| D. | None of these |
| Answer» C. Liability side of the balance sheet | |
| 36. |
Under sales on return or approval basis, the ownership of goods is passed only |
| A. | When the retailer gives his approval |
| B. | If the goods are not returned within specified period. |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» D. None of the above | |
| 37. |
The term ‘Business Income’ includes: |
| A. | Unrealised Net Income |
| B. | Realised Net Income |
| C. | Revenue receipt |
| D. | Going Concern |
| Answer» C. Revenue receipt | |
| 38. |
Which of the following is not an intangible asset? |
| A. | Trade mark |
| B. | Franchise |
| C. | Accounts Receivable |
| D. | Secret Profit |
| Answer» D. Secret Profit | |
| 39. |
IASB stands for — |
| A. | International Accounting Standard Board ; |
| B. | Indian Accounting Standard Board; |
| C. | Institution of Accounting School Board ; ; |
| D. | None |
| Answer» B. Indian Accounting Standard Board; | |
| 40. |
Out of the following items, which one is shown in the Receipts and Payments Account?Sol: |
| A. | Outstanding Salary |
| B. | Depreciation |
| C. | Life Membership Fees |
| D. | Accrued Subscription |
| Answer» D. Accrued Subscription | |
| 41. |
Capital expenses are shown in — |
| A. | Balance Sheet ; |
| B. | Profit and Loss A/c ; |
| C. | Trading A/c ; |
| D. | None of these |
| Answer» B. Profit and Loss A/c ; | |
| 42. |
Outstanding salary is shown on |
| A. | Balance sheet |
| B. | Trading account |
| C. | Suspense account |
| D. | Outstanding account |
| Answer» B. Trading account | |
| 43. |
Valuation of ------------- Assets is difficult.Sol: |
| A. | Intangible |
| B. | Wasting |
| C. | Current |
| D. | all |
| Answer» B. Wasting | |
| 44. |
………………..account is credited when lessor receive an amountSol: |
| A. | Lessee Account |
| B. | Lessor Account |
| C. | Profit and Loss Account |
| D. | Income |
| Answer» B. Lessor Account | |
| 45. |
Acounting Packages are developed on the basis ofSol: |
| A. | Accounting concepts |
| B. | Accounting conventions |
| C. | Both Accounting concepts and Conventions |
| D. | None of the above |
| Answer» D. None of the above | |
| 46. |
Depreciation is a process of: |
| A. | Valuation of asset |
| B. | Allocation of cost |
| C. | Both A& B |
| D. | Only A |
| Answer» C. Both A& B | |
| 47. |
Drawings account is the nature of |
| A. | Personal Account |
| B. | Real Account |
| C. | Nominal Account |
| D. | None of the above |
| Answer» B. Real Account | |
| 48. |
Which of the following is not a contingent liability? |
| A. | Claims against the company not acknowledged as debts |
| B. | Debts included on debtors which are doubtful in nature |
| C. | Uncalled liability on partly paid shares |
| D. | Arrears of cumulative fixed dividends |
| Answer» C. Uncalled liability on partly paid shares | |
| 49. |
Income of overdraft, pass book will show __________balance |
| A. | Debit |
| B. | Credit |
| C. | None of thes |
| Answer» B. Credit | |
| 50. |
________ is an expenditure which does not bring any benefit to the concern |
| A. | Revenue expenditure |
| B. | Capital expenditure |
| C. | Deferred revenue expenditure |
| D. | Loss |
| Answer» E. | |