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. |
Which of these types of expenditure would not be treated as a Capital Expenditure |
| A. | Acquisition of an Asset ; |
| B. | Extension of an Asset ; |
| C. | Improvement of the existing Asset ; |
| D. | Maintenance of the Asset |
| Answer» E. | |
| 2. |
Goods taken by the proprietor for personal is shown as a deduction from_____________ |
| A. | Sales |
| B. | Capital |
| C. | Purchas |
| Answer» D. | |
| 3. |
Reserve Capital is a part of: |
| A. | Paid-up Capital |
| B. | Forfeited Share Capital |
| C. | Assets |
| D. | Capital to be called up only on liquidation of company |
| Answer» E. | |
| 4. |
Share Capital in the balance sheet is shown under: |
| A. | Asset |
| B. | Liability |
| C. | Income |
| D. | Resource |
| Answer» C. Income | |
| 5. |
The balance of royalty‟s receivable account is transferred to —Sol: |
| A. | Profit and loss account |
| B. | Royalties suspense account |
| C. | Production account. |
| D. | all |
| Answer» B. Royalties suspense account | |
| 6. |
What are the features of a computerized accounting system?Sol: |
| A. | It facilitates off-line input and storage of accounting data |
| B. | This system never fails |
| C. | It generates a print-out of purchase and sale invoices |
| D. | None of the above |
| Answer» D. None of the above | |
| 7. |
The debit side discount column of three column cash book is called? |
| A. | Trade discount |
| B. | Cash discount |
| C. | Discount allowed |
| D. | Discount received |
| Answer» D. Discount received | |
| 8. |
Difference in Bank Balance as per Pass Book and Cash Book may arise on account of |
| A. | Cheque issued but not presented |
| B. | Cheque issued but dishonoured |
| C. | Cheque deposited and credited by bank |
| D. | All of (a) and (b) above |
| Answer» E. | |
| 9. |
Method of codification should be |
| A. | Such that it leads to grouping of accounts |
| B. | An identification mark |
| C. | Easy to understand and leads to grouping of accounts |
| D. | None of the above |
| Answer» D. None of the above | |
| 10. |
Receipts and payment account begins with opening balance of |
| A. | Receipts |
| B. | Payments |
| C. | Creditors |
| D. | Cash |
| Answer» E. | |
| 11. |
Which of the following entries is correct in respect of reserve for discounts on accounts payable? |
| A. | Debit P&L A/c and Credit Reserve for Discount on Accounts Payable A/c |
| B. | Debit Accounts Payable A/c and Credit P&L A/c |
| C. | Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c |
| D. | Debit Reserve for Discount on Accounts Payable A/c and credit Accounts Payable A/c |
| Answer» D. Debit Reserve for Discount on Accounts Payable A/c and credit Accounts Payable A/c | |
| 12. |
Cash Profit is |
| A. | Net profit – Non-trading Profit – Depreciation and provision |
| B. | Gross Profit – Non-trading Profit + Depreciation and provision |
| C. | Net Profit + Depreciation and provision |
| D. | Gross Profit – Operational expenses |
| Answer» D. Gross Profit – Operational expenses | |
| 13. |
Journal entry for wages paid Rs. 5,000 for installation of plant will be |
| A. | Dr. Plant Repairs A/c and Cr. Cash A/c Rs. 5,000 |
| B. | Dr. Wages A/c and Cr. Cash A/c Rs. 5,000 |
| C. | Dr. Plant A/c and Cr. Cash A/c Rs. 5,000 |
| D. | None of the Above |
| Answer» D. None of the Above | |
| 14. |
Under which of the following situations, is journal entry not passed in the books of the drawer? |
| A. | When a discounted bill is honoured by the drawee on the due date |
| B. | When a bill is sent to the bank for collection |
| C. | When a bill is renewed at the request of the drawee |
| D. | When a debtor accepts a bill drawn by the drawer |
| Answer» B. When a bill is sent to the bank for collection | |
| 15. |
Goods lying with the consignee are shown as— |
| A. | Closing Stock ; |
| B. | Work in Progress ; |
| C. | Stock in Transit ; |
| D. | Suspense A/c |
| Answer» B. Work in Progress ; | |
| 16. |
The monetary value of reputation of business is calledSol: |
| A. | Goodwill |
| B. | Suer profit |
| C. | Surplus |
| D. | None of the above |
| Answer» B. Suer profit | |
| 17. |
A firm’s goodwill is not affected bySol: |
| A. | Location of the firm |
| B. | The reputation of the Firm |
| C. | Better Customer Service |
| D. | None of the Above |
| Answer» E. | |
| 18. |
When the goods are returned by the customers within the specified time, they are recorded |
| A. | Initially in the Sale or Return Ledger. Thereafter, in the Sale or Return Day Book |
| B. | Initially in the Sale or Return Day Book. Thereafter, in the Sale or Return Ledger |
| C. | Only in the Sale or Return Day Book |
| D. | Only in the Sale or Return Ledger |
| Answer» C. Only in the Sale or Return Day Book | |
| 19. |
In the Balance Sheet of a company, under the heading share capital, at the last is shown : |
| A. | Authorised Share Capital |
| B. | Subscribed Share Capital |
| C. | Issued Share Capital |
| D. | Reserve Share Capital |
| Answer» C. Issued Share Capital | |
| 20. |
Income earned but not received to known as _______________ income |
| A. | Accrued |
| B. | Prepaid |
| C. | Nomina |
| Answer» B. Prepaid | |
| 21. |
In case debentures of Rs. 10,000 are issued at par but payable at a premium of 10% the premium payable will be debited to: |
| A. | Debentures Suspense Account |
| B. | Premium on Redemption of Debentures Account |
| C. | Loss on issue of Debentures Account |
| D. | Suspense account |
| Answer» D. Suspense account | |
| 22. |
————— is the date on which a bill falls due for payment |
| A. | Settlement Date ; |
| B. | Maturity Date ; |
| C. | Payment Date ; |
| D. | Due Date |
| Answer» C. Payment Date ; | |
| 23. |
‘Every debit has a corresponding credit’ it is the concept of |
| A. | Incomplete records |
| B. | Cost sheets |
| C. | Single entry system |
| D. | Double entry system |
| Answer» E. | |
| 24. |
AS 10 is not applicable to —— |
| A. | Natural resource ; |
| B. | Live Stock ; |
| C. | Forest and plantation produced ; |
| D. | All the three |
| Answer» E. | |
| 25. |
Professional bodies of how many countries founded IASC in 1973 |
| A. | 8 ; |
| B. | 9 ; |
| C. | 7 ; |
| D. | 10 |
| Answer» C. 7 ; | |
| 26. |
Joint Venture is a partnership — |
| A. | With no firm name ; |
| B. | For indefinite period ; |
| C. | Formed for 5 years ; |
| D. | All the three |
| Answer» B. For indefinite period ; | |
| 27. |
Overcasting of purchases journal would affect |
| A. | Sales account ; |
| B. | Purchase account ; |
| C. | Supplier's account and purchase account |
| D. | None of these |
| Answer» C. Supplier's account and purchase account | |
| 28. |
As on 31st March, 2017 debtors and additional bad debts are ` 8,00,000 and ` 10,000 respectively. If the provision for bad debts is made at 5% on debtors then amount of such provision will be |
| A. | 40,000 |
| B. | 50,000 |
| C. | 39,500 |
| D. | 40,500 |
| Answer» D. 40,500 | |
| 29. |
Which error does not affect the trial balance |
| A. | Errors of omission |
| B. | Errors of amount in original book |
| C. | Compensating error |
| D. | Error of principle |
| Answer» B. Errors of amount in original book | |
| 30. |
Which goodwill is recorded in the books of AccountsSol: |
| A. | Purchase Goodwill |
| B. | Self Generated |
| C. | Both |
| D. | None |
| Answer» B. Self Generated | |
| 31. |
A deduction allowed to the buyers from the gross catalogue price on making bulk purchases is termed as ____________ |
| A. | Trade discount |
| B. | Quantity discount |
| C. | Cash discount |
| D. | None of the above |
| Answer» C. Cash discount | |
| 32. |
Name the principle involved in the classification of Assets as Fixed and Current |
| A. | Cost Principle |
| B. | Going Concern Principle |
| C. | Matching Principle |
| D. | Prudence Principle |
| Answer» C. Matching Principle | |
| 33. |
Which of the following statements is false : |
| A. | A Company can issue redeemable debentures. |
| B. | A Company can issue debentures with voting rights. |
| C. | A Company can issue convertible debentures. |
| D. | A Company can buy its own debentures and shares. |
| Answer» C. A Company can issue convertible debentures. | |
| 34. |
When shares issued at premium which of the following account is credited? |
| A. | Share premium account |
| B. | Share first call account |
| C. | Share allotment account |
| D. | Share forfeited account |
| Answer» B. Share first call account | |
| 35. |
Recording of transaction in ledger is called as |
| A. | Journalizing |
| B. | Posting |
| C. | Recordin |
| Answer» C. Recordin | |
| 36. |
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. | |
| 37. |
Revenues affect net income — |
| A. | in the period during which they are earned |
| B. | in the period when they are collected |
| C. | in the period when they are accounted for |
| D. | any of the above three which occur first |
| Answer» B. in the period when they are collected | |
| 38. |
Transactions of a general nature which occur frequently are first recorded in the |
| A. | General ledger |
| B. | Special journal |
| C. | Cashbook |
| D. | Subsidiary book |
| Answer» C. Cashbook | |
| 39. |
The total capital employed in the company is ₹8,00,000 a reasonable rate of return is 15%and the profit of the year is 412,00,000. The value of goodwill of the company as per thecapitalization method will be |
| A. | 82,00,000 |
| B. | 1200000 |
| C. | 7200000 |
| D. | 4200000 |
| Answer» D. 4200000 | |
| 40. |
Source documents include |
| A. | Vouchers |
| Answer» E. | |
| 41. |
It is generally assumed that the business will not liquidate in the near foreseeable futurebecause of |
| A. | Periodicity. |
| B. | Materiality. |
| C. | Matching. |
| D. | Going concern. |
| Answer» E. | |
| 42. |
The closing stock in adjustment is shown in: |
| A. | Trading Account |
| B. | Profit and Loss Account |
| C. | Balance Sheet |
| D. | Both (a) and (c) |
| Answer» E. | |
| 43. |
The process of converting foreign subsidiary financial statements into the homecurrency is known as ------- |
| A. | Transmission |
| B. | Translation |
| C. | Consolidation |
| D. | Reconstruction |
| Answer» C. Consolidation | |
| 44. |
Persons who start a company are called ………………. |
| A. | Shareholders |
| B. | Directors |
| C. | Promoters |
| D. | Auditors |
| Answer» D. Auditors | |
| 45. |
Find the cost of goods sold if goods are sold for ` 2,000 at 25% profit on cost |
| A. | 1,600 ; |
| B. | 1,500 ; |
| C. | 1,000 ; |
| D. | 1,800 |
| Answer» B. 1,500 ; | |
| 46. |
Expenses A/c will always have — |
| A. | Debit balance ; |
| B. | Credit balance ; |
| C. | Either (a) or (b) ; |
| D. | No balance at all |
| Answer» B. Credit balance ; | |
| 47. |
Omission of paise and showing the round figures in financial statements is based on |
| A. | Conservatism Concept |
| B. | Consistency Concept |
| C. | Materiality Concept |
| D. | Realization Concept |
| Answer» D. Realization Concept | |
| 48. |
Capital expenditure is an expenditure which |
| A. | Benefits the current accounting period |
| B. | Will benefit the next accounting period |
| C. | Results in the acquisition of a permanent asset |
| D. | Results in the acquisition of a current asset |
| Answer» D. Results in the acquisition of a current asset | |
| 49. |
Choose the true statement— |
| A. | Accrued income represent income unearned but realized in cash |
| B. | Accrued income represent income earned but not realized in cash |
| C. | Accrued income A/c is shown on the liability side ; |
| D. | No tax is payable on accrued income |
| Answer» C. Accrued income A/c is shown on the liability side ; | |
| 50. |
Subscriptions received in advance by a club are shown on……………..of the BalanceSheetSol: |
| A. | Assets Side |
| B. | Liability Side |
| C. | Credit Side |
| D. | Debit Side |
| Answer» C. Credit Side | |