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. |
Interest Account will have- |
| A. | Debit balance only ; |
| B. | Credit balance only ; |
| C. | Debit or Credit balance ; |
| D. | No balance at all |
| Answer» D. No balance at all | |
| 2. |
Under ______ system the buyer does not get ownership of goods immediately |
| A. | Installment |
| B. | HP |
| C. | Installment and HP |
| D. | None of these |
| Answer» C. Installment and HP | |
| 3. |
Which among the following is an example of mnemonic codes?Sol: |
| A. | AS03, AS04, AS05 |
| B. | 1925, 1926, 1927, 1928 |
| C. | ACC, ECO, ENG, MAL |
| D. | 001-100, 101-200, 201-300, 301-400 |
| Answer» D. 001-100, 101-200, 201-300, 301-400 | |
| 4. |
Debentures issued as Collateral Security for Rs. 10,000 will be debited to: |
| A. | Debentures Suspense Account |
| B. | Bank Account |
| C. | Debentures Account |
| D. | Collateral Security |
| Answer» B. Bank Account | |
| 5. |
What is transferred to hirer under hire purchase system |
| A. | ownership of asset |
| B. | possession of assets |
| C. | ownership and possession of asset |
| D. | none of these |
| Answer» C. ownership and possession of asset | |
| 6. |
The balance of profit and loss account is called |
| A. | Net profit /loss |
| B. | Gross profit/ loss |
| C. | Working profit / loss |
| D. | Petty profit / loss |
| Answer» B. Gross profit/ loss | |
| 7. |
Net worth of business means |
| A. | Total assets |
| B. | Fixed assets – current assets. |
| C. | Equity capital |
| D. | Total assets – total liabilities |
| Answer» E. | |
| 8. |
A suspense account is created when the _______ of the trial balance does not agree |
| A. | Debit side |
| B. | Credit side |
| C. | Asset side |
| D. | balance |
| Answer» E. | |
| 9. |
The balance as per bank statement of a company is `12,000 (Dr.). The company deposited two cheques worth `9,500, out of which one cheque for `2,300 was dishonoured which was not entered in the cash book. The credit balance as per cash book is |
| A. | 21,000 ; |
| B. | 15,300 ; |
| C. | 23,800 ; |
| D. | 9,700 |
| Answer» E. | |
| 10. |
The Computerised Accounting System refers to :Sol: |
| A. | Printing of Balance Sheet and Profit and Loss Accounts using computer |
| B. | Processing of accounting transaction through computer and produce records and reports |
| C. | Processing of accounting related data and printing reports |
| D. | None of the above |
| Answer» C. Processing of accounting related data and printing reports | |
| 11. |
What is the important objective of accounting? |
| A. | To maintain records. |
| B. | Depiction of financial position. |
| C. | Make information available to various groups and users. |
| D. | All of three. |
| Answer» D. All of three. | |
| 12. |
Single entry system cannot be a maintained by: |
| A. | Joint stock company |
| B. | Partnership A/c |
| C. | Sole-tradership A/c |
| D. | All of these |
| Answer» B. Partnership A/c | |
| 13. |
Any income or profit derived by carrying on the business or during the course of business is called- |
| A. | Capital Receipt ; |
| B. | Revenue Receipt ; |
| C. | Revenue Gain ; |
| D. | Capital Gain |
| Answer» C. Revenue Gain ; | |
| 14. |
If the Petty Cash fund is not reimbursed just prior to year end and an appropriate adjusting entry is not made, then |
| A. | The petty cash account is to be returned to the company‘s cashier |
| B. | Expenses are overstated and Cash is understated |
| C. | Cash is overstated and expenses are understated |
| D. | Cash is overstated and expenses are overstated |
| Answer» D. Cash is overstated and expenses are overstated | |
| 15. |
The periodic total of sales day book is posted to — |
| A. | Sales A/c ; |
| B. | Cash sales A/c ; |
| C. | Sales return A/c ; |
| D. | Credit sales A/c |
| Answer» B. Cash sales A/c ; | |
| 16. |
If the asset is sold, the provision for depreciation relating to the asset sold is transferred to: |
| A. | Asset account |
| B. | Liability account |
| C. | P & L account |
| D. | Trading account |
| Answer» C. P & L account | |
| 17. |
What are the types of a computerized accounting system?Sol: |
| A. | Ready to use Software |
| B. | Customized Software |
| C. | Tailor-made Software |
| D. | All of the above |
| Answer» E. | |
| 18. |
Securities Premium Account is shown on the liabilities side under the head: |
| A. | Share Capital |
| B. | Reserves and Surplus |
| C. | Current Liabilities |
| D. | Suspense account |
| Answer» C. Current Liabilities | |
| 19. |
Excess of asset over liability is called |
| A. | creditors |
| B. | profit |
| C. | capital |
| D. | goodwill |
| Answer» D. goodwill | |
| 20. |
Balance sheet is an ______________ |
| A. | Statement |
| B. | Account |
| C. | Bot |
| Answer» B. Account | |
| 21. |
In which of the following statement opening stock is shown? |
| A. | Profit and loss account (Right Answer) ; |
| B. | Balance sheet ; |
| C. | Cash flow statement ; |
| D. | Owner‘s equity |
| Answer» B. Balance sheet ; | |
| 22. |
Profit on sale of old plant is shown – |
| A. | In Trading A/c ; |
| B. | In Profit and Loss Appropriation A/c ; |
| C. | Profit and Loss A/c |
| D. | Being a non operating item ignored |
| Answer» D. Being a non operating item ignored | |
| 23. |
Trade discount allowed at the time of Sale of goods. |
| A. | Is recorded in Sales Book |
| B. | Is recorded in Cash Book |
| C. | Is recorded in Journal |
| D. | Is not recorded in Books of Accounts |
| Answer» E. | |
| 24. |
Value of goods withdrawn by the proprietor for his personal use should be credited to ____. |
| A. | Capital A/c |
| B. | Sales A/c |
| C. | Drawings A/c |
| D. | Purchases A/c |
| Answer» E. | |
| 25. |
Depreciation helps in determining |
| A. | Accurate level of profit |
| B. | Increases the value of asset |
| C. | Revenue generation |
| D. | increase the burden of tax |
| Answer» B. Increases the value of asset | |
| 26. |
Which of these is a Part of cash in hand |
| A. | Postage stamps ; |
| B. | B/R ; |
| C. | Cheque Deposited with Bank ; |
| D. | B/R endorsed |
| Answer» B. B/R ; | |
| 27. |
Cash paid to creditors + closing creditors – opening creditors = |
| A. | total purchase |
| B. | cash purchase |
| C. | credit purchases |
| D. | total debtors |
| Answer» D. total debtors | |
| 28. |
The excess of Average profit over normal profit is calledSol: |
| A. | Super profit |
| B. | Normal profit |
| C. | Fixed profit |
| D. | Abnormal profit |
| Answer» B. Normal profit | |
| 29. |
Fixed assets purchased on hire purchased on hire purchase terms are recorded at |
| A. | Net realization value |
| B. | Cash value |
| C. | Hire purchase price |
| D. | Cost price |
| Answer» C. Hire purchase price | |
| 30. |
Premium on issue of shares can be used for -----------. |
| A. | distribution of dividend |
| B. | writing off capital losses |
| C. | transferring to general reserve |
| D. | paying fees to directors |
| Answer» C. transferring to general reserve | |
| 31. |
A company sends its cars to dealers on 'sale or return' basis. All such transactions ire however treated like actual sales and are passed through the sales day book. Just before the end of the financial year, two cars which had cost ` 55,000 each have been sent on sale or return and have been debited to customers at ` 75,000 each, cost of goods lying with the customers will be |
| A. | 1,10,000. |
| B. | 35,000. |
| C. | 75,000. |
| D. | None of the above. |
| Answer» B. 35,000. | |
| 32. |
The underlying assumption that assumes that the life of a company can be divided into artificial time periods is: |
| A. | Periodicity |
| B. | Going concern |
| C. | Economic entity |
| D. | Monetary unit |
| Answer» B. Going concern | |
| 33. |
Contingent Liability would appear |
| A. | on the liabilities side of the Balance Sheet. |
| B. | on the assets side of the Balance Sheet. |
| C. | as a note in the Balance Sheet. |
| D. | None of the above |
| Answer» D. None of the above | |
| 34. |
The convention that states that the accounting practice should be followed consistently over the years |
| A. | Consistency ; |
| B. | Conservation ; |
| C. | Materiality ; |
| D. | Disclosure |
| Answer» B. Conservation ; | |
| 35. |
Cost of goods sold excludes- |
| A. | Opening Stock ; |
| B. | Carriage inward ; |
| C. | Wages & Salary ; |
| D. | Postage & Stamps |
| Answer» E. | |
| 36. |
If vendors are issued fully paid shares of 1,25,000 in consideration of net assets of?1,50,000, the balance of 25,000 will be credited to : |
| A. | Statement of Profit & Loss |
| B. | Goodwill Account |
| C. | Security Premium Reserve Account |
| D. | Capital Reserve Account |
| Answer» D. Capital Reserve Account | |
| 37. |
Opening statement of affairs is prepared to find out |
| A. | opening capital |
| B. | opening profit |
| C. | opening assets |
| D. | opening liability |
| Answer» B. opening profit | |
| 38. |
Revenue receipts are shown in — |
| A. | Balance Sheet ; |
| B. | Profit and Loss appropriation A/c ; |
| C. | Manufacturing A/c; |
| D. | Trading and Profit and Loss A/c |
| Answer» E. | |
| 39. |
Closing Stock lying unsold with the consignee is valued at— |
| A. | Cost Price ; |
| B. | Market Price ; |
| C. | Realizable Price ; |
| D. | Least of cost or net realizable value |
| Answer» E. | |
| 40. |
Which of the following is true statement for computerised accounting system? a. the computer accounting system is based on the concept of database. b. Computer accounting system does not away with the concept of creating and maintaining journals, ledger etc. |
| A. | Only a |
| B. | Only b |
| C. | Both a and b |
| D. | None of the above |
| Answer» B. Only b | |
| 41. |
Revenue is generally recognised as being earned at that point of time when |
| A. | sale is effected ; |
| B. | cash is received ; |
| C. | production is completed ; |
| D. | debts are collected |
| Answer» B. cash is received ; | |
| 42. |
Raw material and components purchased and used at the time of installation of new Plant andMachinery will be debited to |
| A. | Plant and Machinery A/c ; |
| B. | Raw Material Consumed A/c ; |
| C. | Purchase A/c ; |
| D. | Profit ;and Loss A/c |
| Answer» B. Raw Material Consumed A/c ; | |
| 43. |
Which of the following is an operating expenses |
| A. | Bad debt |
| B. | Salary to manager |
| C. | Depreciation |
| D. | Expired insurance |
| Answer» C. Depreciation | |
| 44. |
A situation where a company receives applications for a smaller number of shares than offered to the public for subscription is termed as: |
| A. | Over Subscription |
| B. | Under Subscription |
| C. | Normal Subscription |
| D. | All of above |
| Answer» C. Normal Subscription | |
| 45. |
The profit on reissue of forfeited shares is transferred to |
| A. | General reserve |
| B. | Capital reserve |
| C. | Capital redemption reserve |
| D. | None of these |
| Answer» C. Capital redemption reserve | |
| 46. |
Which of these will cause change in working capital |
| A. | Payment of Creditors in cash |
| B. | Realization of amount due from the Debtors |
| C. | Sale of office equipment for cash |
| D. | Providing depreciation on Plant and Machinery |
| Answer» D. Providing depreciation on Plant and Machinery | |
| 47. |
Legacies should be treated asSol: |
| A. | A Liability |
| B. | A Revenue Receipt |
| C. | An Income |
| D. | None of these |
| Answer» B. A Revenue Receipt | |
| 48. |
Which one is/ are the method/s of Accounting for Branches |
| A. | Final Accounts Method; |
| Answer» E. | |
| 49. |
Capital expenditure are recorded in the __________ |
| A. | Balance sheet |
| B. | Profit & loss account |
| C. | Trading accoun |
| Answer» B. Profit & loss account | |
| 50. |
The out flow of funds to acquire an asset that will benefit the business for more than one accounting period is referred to as — |
| A. | Miscellaneous Expenditure |
| B. | Revenue Expenditure |
| C. | Capital expenditure |
| D. | Deferred Revenue Expenditure |
| Answer» D. Deferred Revenue Expenditure | |