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. |
Lessor is the …………Sol: |
| A. | Qwner |
| B. | User |
| C. | None |
| D. | Both |
| Answer» B. User | |
| 2. |
Sudhir of Simla consigned 100kg of vegetables to D of Delhi for ` 1500. He spent ` 75 on transportation.10kg were found stolen during transit and of the remaining 85 kg were sold for ` 1675. Find the value of closing stock. |
| A. | 87.50 ; |
| B. | 78.75 ; |
| C. | 80.00 ; |
| D. | 90.00 |
| Answer» C. 80.00 ; | |
| 3. |
Both cash and credit transactions are recorded, on the basis of |
| A. | Accounting Period Concept |
| B. | Going Concern Concept |
| C. | Business Entity Concept |
| D. | Accrual Concept |
| Answer» E. | |
| 4. |
P & L Account is prepared for a period of one year by following [Hints: (c) P&L A/C is prepared for a period of one year by following the concept of Accounting Period.] |
| A. | Consistency Concept |
| B. | Conservatism Concept |
| C. | Accounting Period Concept |
| D. | Cost Concept |
| Answer» D. Cost Concept | |
| 5. |
Goodwill is a |
| A. | Current asset |
| B. | Tangible asset |
| C. | Intangible asset |
| D. | Liability |
| Answer» D. Liability | |
| 6. |
Prepaid expenses are valued on the Balance Sheet at |
| A. | Replacement cost |
| B. | Current cost |
| C. | Cost to acquire less accumulated amortization |
| D. | Cost less expired portion |
| Answer» E. | |
| 7. |
Break-even indicatesSol: |
| A. | Revenues are more than cost |
| B. | Revenues and cost are equal |
| C. | Costs are more than revenue |
| D. | None of the Above |
| Answer» C. Costs are more than revenue | |
| 8. |
Receipts and Payments A/c is a summary of:Sol: |
| A. | All Capital Receipts and Payments |
| B. | All Revenue Receipts and Payments |
| C. | All Revenue and Capital Receipts and Payments |
| D. | None of the above |
| Answer» D. None of the above | |
| 9. |
Memorandum Joint Venture Account is prepared when |
| A. | the separate set of books is maintained for Joint Venture. |
| B. | each Co-venturer keeps records of all transactions. |
| C. | each Co-venturer keeps records of their own transactions only. |
| D. | All of the above cases |
| Answer» D. All of the above cases | |
| 10. |
The profits of the last three years is 42000, 39000,45000. Value of goodwill of 2 yearspurchase of average profit is |
| A. | 84000 |
| B. | 42000 |
| C. | 126000 |
| D. | None |
| Answer» B. 42000 | |
| 11. |
The Accommodation bill is drawn |
| A. | to finance actual purchase or sale of goods. |
| B. | to facilitate trade transmission. |
| C. | when both parties are in need of funds. |
| D. | None of the above |
| Answer» D. None of the above | |
| 12. |
Which of the following relationships is/are false? |
| A. | Net Profit = Gross Profit – Administration and Other expenses |
| B. | Net Profit = Gross Profit + Administration expenses and Other expenses |
| C. | Opening Stock + Purchases – Closing Stock = Cost of Sales |
| D. | Both (b) and (c) above |
| Answer» E. | |
| 13. |
On 31st March, goods sold at a sale price of ` 30,000 were lying with customer, Mohan to whom these goods were sold on 'sale or return basis' and recorded as actual sales. Since' no consent was received from Mohan, the adjustment entry was made presuming goods were sent on approval at a profit of cost plus 20%. In the balance sheet, the stock with customers account will be shown at ` |
| A. | 30,000. |
| B. | 24,000. |
| C. | 20,000. |
| D. | 25,000. |
| Answer» E. | |
| 14. |
Depreciation appearing in the Trial Balance should be |
| A. | Debited to P&L A/c |
| B. | Shown as liability in Balance Sheet |
| C. | Reduced from related asset in Balance Sheet |
| D. | Both (a) and (c) above |
| Answer» B. Shown as liability in Balance Sheet | |
| 15. |
A private invitation to the public to purchase shares of a company is called: |
| A. | Prospectus |
| B. | Audit Report |
| C. | Article of Association |
| D. | Memorandum of Association |
| Answer» B. Audit Report | |
| 16. |
Recent developments have made much of a company‘s inventory obsolete. This obsolete inventoryshould be |
| A. | Written down to zero or its scrap value |
| B. | Shown in the Balance Sheet at its replacement cost |
| C. | Shown in the Balance Sheet at cost, but classified as a non-current asset |
| D. | Carried in the accounting records at cost until it is sold |
| Answer» B. Shown in the Balance Sheet at its replacement cost | |
| 17. |
Which of these errors affect two or more accounts |
| A. | Errors of complete omission ; |
| B. | Errors of principle ; |
| C. | Errors of posting to wrong account; |
| D. | All the three |
| Answer» E. | |
| 18. |
The minimum rent can ……………………….be proportionately, if there is a stoppagedue to strike.Sol: |
| A. | Increase |
| B. | Decrease |
| C. | No change |
| D. | all |
| Answer» C. No change | |
| 19. |
Creditors ledger adjustment account is opened in |
| A. | General Ledger |
| B. | Debtors Ledger |
| C. | Creditors Ledger |
| D. | Either (b) or (c) |
| Answer» B. Debtors Ledger | |
| 20. |
Which of the following software is not operating software?Sol: |
| A. | MS DOS |
| B. | Windows XP |
| C. | MS Word |
| D. | None of these |
| Answer» D. None of these | |
| 21. |
Which is the third stage of accounting process? |
| A. | Recording |
| B. | Classifying |
| C. | Summarizing |
| D. | none |
| Answer» D. none | |
| 22. |
Interest of Drawings is: |
| A. | Expenditure for the business |
| B. | Expense for the business |
| C. | Gain for the business |
| D. | none |
| Answer» D. none | |
| 23. |
` 5,000 paid as local cartage on material purchased. However this amount was booked underMiscellaneous Expenses A/c instead of on Carriage Inward. Due to this error net profit and loss will— |
| A. | Increase by ` 5,000 ; |
| B. | Decrease by ` 5,000 ; |
| C. | Increase by ` 10,000 ; |
| D. | not be affected at all |
| Answer» E. | |
| 24. |
AS 30 deals with |
| A. | Accounting Policy |
| B. | Financial Investment presentation |
| C. | Financial Investment Reinvestment Measurement |
| D. | Financial Investment disclosure |
| Answer» D. Financial Investment disclosure | |
| 25. |
In the balance sheet of sole trader business , assets are managed in the order of |
| A. | Permanency |
| B. | Liquidity |
| C. | Priority |
| D. | Flexibility |
| Answer» C. Priority | |
| 26. |
In the balance sheet of a company, the discount on issue of debentures is shown under whichheading |
| A. | Fixed asset |
| B. | Current asset |
| C. | Investment |
| D. | Miscellaneous expenditure |
| Answer» E. | |
| 27. |
Which of the following is not a deferred revenue expenditure? |
| A. | Expenses in connection with issue of equity shares |
| B. | Preoperative expenses |
| C. | Heavy advertising expenses to introduce a new product |
| D. | Legal expenses incurred in defending a suit for breach of contract to supply goods |
| Answer» E. | |
| 28. |
A resource owned by the business with purpose of using it for generating future profit, isknown as |
| A. | Capital |
| B. | Asset |
| C. | Liability |
| D. | Surplus |
| Answer» C. Liability | |
| 29. |
Hire purchase act is |
| A. | 1932 |
| B. | 1956 |
| C. | 1972 |
| D. | 1872 |
| Answer» D. 1872 | |
| 30. |
Shares which are not preference shares are called: |
| A. | Sweat Equity shares |
| B. | Right Issue |
| C. | Equity shares |
| D. | All of above |
| Answer» D. All of above | |
| 31. |
Based on the facts given in question no. 366 find the value of abnormal loss |
| A. | 15,000 ; |
| B. | 16,500 ; |
| C. | 15,500 ; |
| D. | 15,750 |
| Answer» D. 15,750 | |
| 32. |
Royalty is Rs 64,000, Minimum rent Rs 80,000. Strike is for 3 months with no work done,Minimum rent to be reduced in proportion of time, find the amount paid to Landlord. |
| A. | Rs 60000 |
| B. | Rs 80000 |
| C. | Rs 64000 |
| D. | Rs 100000 |
| Answer» C. Rs 64000 | |
| 33. |
The value of Intangible assets is ------------- over a period of time.Sol: |
| A. | Amortized |
| B. | Added |
| C. | Depreciated |
| D. | all |
| Answer» B. Added | |
| 34. |
Tax deducted at source A/c appears in- |
| A. | Assets side ; |
| B. | Liability side ; |
| C. | Profit & Loss A/c ; |
| D. | Debited to Capital A/c |
| Answer» B. Liability side ; | |
| 35. |
_______________ represent the amount invested by the owner into business. |
| A. | Capital |
| B. | Revenue |
| C. | Asse |
| Answer» B. Revenue | |
| 36. |
When shares are forfeited the share capital account is debited by |
| A. | Paid up amount |
| B. | Called up amount, |
| C. | Calls in arrear |
| D. | Nominal value of such share. |
| Answer» C. Calls in arrear | |
| 37. |
Subscription received by an organisation is:Sol: |
| A. | Capital Receipt |
| B. | Revenue Receipt |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» C. Both (a) and (b) | |
| 38. |
In not-for-profit organisation, excess of expenditure over income is called :Sol: |
| A. | Loss |
| B. | Profit |
| C. | Deficit |
| D. | Surplus |
| Answer» D. Surplus | |
| 39. |
While checking the accounts of ABC the following discrepancies were noticed, even though the TrialBalance was made to balance by putting the difference to Suspense A/c. (i) Sales day book for the month of June‘12 was found overcast by ` 7,000. (ii) A credit purchase of ` 3,000 was omitted to be recorded in the days book. (iii) ` 4,300. Received from A credited to A A/c ` 3,400. (iv) Purchase of Office Equipment worth ` 5,000 included in trading purchases. From the above details what would have been the difference in Trial Balance which was made to balance by opening Suspense A/c. |
| A. | Debit side short by ` 9,100 ; |
| B. | Credit side short by ` 9,100 ; |
| C. | Debit side more by ` 7,900 ; |
| D. | Credit side more by ` 6,100 |
| Answer» E. | |
| 40. |
A and B enter into a joint venture sharing profit and losses in the ratio of 3:2. A purchased goods costing `2,00,000. B sold 95% goods for ` 2,50,000. A is entitled to get 1% commission on purchase and B is entitled to get 5% commission on sales. A drew a bill on B for an amount equivalent to 80% of original cost of goods. A got it discounted at `1,50,000. What is A's share of profit? |
| A. | 15,300 |
| B. | 21,300 |
| C. | 18,900 |
| D. | None of the above |
| Answer» C. 18,900 | |
| 41. |
The basic concepts related to P & L Account are |
| A. | Realization Concept |
| B. | Matching Concept |
| C. | Cost Concept |
| D. | Both (a) and (b) above |
| Answer» E. | |
| 42. |
Loss of usefulness occasioned by improved production methods is known as____ |
| A. | Physical deterioration |
| B. | Obsolescence |
| C. | Disuse |
| D. | Inadequacy |
| Answer» B. Obsolescence | |
| 43. |
Debenture is a part of: |
| A. | Owner’s capital |
| B. | Loan capital |
| C. | Reserves capital |
| D. | Capital reserve |
| Answer» C. Reserves capital | |
| 44. |
The CAS should beSol: |
| A. | Simple and integrated, transparent, accurate, scalability, reliability |
| B. | Complex, Accurate, Transparent, Faster to work |
| C. | Able to transform the manual accounting system to computerised accounting system |
| D. | None of the above. |
| Answer» B. Complex, Accurate, Transparent, Faster to work | |
| 45. |
The Balance Sheet gives information regarding the |
| A. | Results of operations for a particular period |
| B. | Financial position during a particular period |
| C. | Profit earning capacity for a particular period |
| D. | Financial position as on a particular date |
| Answer» E. | |
| 46. |
_________ deals with the depreciation account. |
| A. | AS4 |
| B. | AS6 |
| C. | AS10 |
| D. | AS13 |
| Answer» C. AS10 | |
| 47. |
L of Lucknow consigned goods costing ` 60,000 to A of Allahabad at an invoice price bearing 331/3 % mark up on the cost price. Goods costing ` 15,000 were damaged in the transit and the insurance company admitted the claim in full. Expenses incurred by the consignor on loading and transportation of the goods amounted to ` 1,800. The consignee incurred ` 200 on cartage and ` 6,000 as Godown Rent and sold 2/3 of the goods received by him at the invoice price. He is entitled to 5% normal commission and 2.5% del credere commission. Find the value of goods sold |
| A. | 60,000 ; |
| B. | 40,000 ; |
| C. | 55,000 ; |
| D. | 50,000 |
| Answer» C. 55,000 ; | |
| 48. |
Branch account under debtors system is a _______ account |
| A. | real |
| B. | nominal |
| C. | personal |
| D. | representative personal |
| Answer» C. personal | |
| 49. |
Entries come both on the debit side and credit side of cashbook called |
| A. | Dual entries |
| B. | Contra entries |
| C. | Double column entries |
| D. | Cash entries |
| Answer» C. Double column entries | |
| 50. |
Income tax paid for the proprietor from the business is |
| A. | Debited in the income account |
| B. | Debited in the trading account |
| C. | Deducted from capital |
| D. | Deducted from profit |
| Answer» D. Deducted from profit | |