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. |
Under debtors system depreciation on fixed asset is ________ |
| A. | credited to branch a/c |
| B. | debited to branch a/c |
| C. | not shown in branch a/c |
| D. | shown in debtors a/c |
| Answer» D. shown in debtors a/c | |
| 2. |
Goods are supplied by the head office to dependent branches are at: |
| A. | cost price |
| B. | invoice price |
| C. | market price |
| D. | cost or invoice price |
| Answer» E. | |
| 3. |
Under debtors system which account is prepared by head office to calculate profit or lossof each branch: |
| A. | capital account |
| B. | debtors account |
| C. | branch account |
| D. | branch adjustment account |
| Answer» D. branch adjustment account | |
| 4. |
If the opening balance of debtors is Rs 16,000 and closing balance is Rs 80,000, cash received from debtors is Rs 35,000 and bad debts is Rs 1,000, then what will be the amount ofcredit sales? |
| A. | rs 95000 |
| B. | rs 105000 |
| C. | rs 100000 |
| D. | rs 110000 |
| Answer» D. rs 110000 | |
| 5. |
H.O. sent goods to branch at invoice price 50% plus on original price. How manypercentage of profit will be on Invoice price? |
| A. | 20% |
| B. | 25% |
| C. | 33.33% |
| D. | 16.67% |
| Answer» D. 16.67% | |
| 6. |
The system of keeping accounts generally adopted by small size branches are: |
| A. | debtors system |
| B. | stock & debtors system |
| C. | wholesale branch system |
| D. | final account system |
| Answer» B. stock & debtors system | |
| 7. |
Goods sent by HO but not received by branch before the end of the year, by debiting it togoods in transit, which account should be credited? |
| A. | cash a/c |
| B. | h.o. a/c |
| C. | trading a/c |
| D. | branch a/c |
| Answer» E. | |
| 8. |
Stock and debtors system is generally used when goods are sent to the branch at _____ |
| A. | cost price |
| B. | invoice price |
| C. | both |
| D. | none |
| Answer» C. both | |
| 9. |
The adjusting entry for difference between the invoice price and cost price of goods areshown in ________ |
| A. | balance sheet |
| B. | p & l a/c |
| C. | branch adjustment a/c |
| D. | none of above |
| Answer» D. none of above | |
| 10. |
H.O. has sent goods on invoice price worth Rs 2,40,000 which are 25% above cost price.What is the loading element? |
| A. | rs 60000 |
| B. | rs 240000 |
| C. | rs 48000 |
| D. | rs 160000 |
| Answer» D. rs 160000 | |
| 11. |
Which of the following branches, taking into consideration the scope of authority andresponsibility, prepares its own independent final accounts? |
| A. | independent branch |
| B. | foreign branch |
| C. | dependent branch |
| D. | independent and foreign branch both |
| Answer» B. foreign branch | |
| 12. |
Goods in transit are shown in the balance sheet at ______ |
| A. | head office |
| B. | branch |
| C. | both |
| D. | none of above |
| Answer» B. branch | |
| 13. |
Opening balance of debtors a/c is Rs 1,40,000. Credit sales is Rs 10,74,000 and closingbalance of Debtors a/c is Rs 1,90,000. What is the amount of cash collection from the debtors? |
| A. | rs 10,24,000 |
| B. | rs 8,84,000 |
| C. | rs 11, 52,000 |
| D. | rs 8,42,000 |
| Answer» B. rs 8,84,000 | |
| 14. |
H.O. sent Rs 5000 as petty cash to branch during the year. Opening and closing balances of petty cash was Rs 1400 and Rs 400 respectively. Then petty expenses of the branch duringthe year will be ______ |
| A. | rs 5000 |
| B. | rs 6400 |
| C. | rs 4600 |
| D. | rs 6000 |
| Answer» E. | |
| 15. |
If the opening balance of petty cash is Rs 1000, closing balance is Rs 500 and the pettycash received from HO is Rs 700, then what will be the amount of sundry expenses _____ |
| A. | rs 1200 |
| B. | rs 800 |
| C. | rs 700 |
| D. | rs 500 |
| Answer» B. rs 800 | |
| 16. |
For finding the amount of sundry expenses paid by the branch, the following a/c should beprepared. |
| A. | computer a/c |
| B. | creditors |
| C. | petty cash a/c |
| D. | debtors |
| Answer» D. debtors | |
| 17. |
HO sends goods to branch at invoice price after adding 25% on cost price, so profit wouldbe ___ % of invoice price |
| A. | 33.33% |
| B. | 40% |
| C. | 20% |
| D. | 25% |
| Answer» D. 25% | |
| 18. |
When Branch pays expenses for H.O. the following account is debited in the books of thebranch _______ |
| A. | expenses is debited |
| B. | h.o. a/c is debited |
| C. | branch is debited |
| D. | none |
| Answer» C. branch is debited | |
| 19. |
HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profiton cost comes to ______ |
| A. | 15% |
| B. | 25% |
| C. | 33.33% |
| D. | 20% |
| Answer» C. 33.33% | |
| 20. |
Goods are sent to branch at cost plus 20%. If closing stock of the branch is Rs 60,000 atinvoice price, Rs ______ will be credited to stock reserve a/c. |
| A. | rs 10000 |
| B. | rs 12000 |
| C. | rs 6000 |
| D. | rs 12600 |
| Answer» B. rs 12000 | |
| 21. |
Under the stock and debtor system, Branch A/c is treated as ______ |
| A. | joint a/c |
| B. | nominal a/c |
| C. | personal a/c |
| D. | real a/c |
| Answer» E. | |
| 22. |
Matching concept means |
| A. | assets = capital + liabilities |
| B. | transactions recorded at accrual concept |
| C. | anticipate no profit but recognize all losses |
| D. | expenses should be matched with the revenue of the period. branch accounts |
| Answer» E. | |
| 23. |
Which of the following is not the main objective of accounting? |
| A. | systematic recording of transactions |
| B. | ascertaining profit or loss |
| C. | ascertainment of financial position |
| D. | solving tax disputes with tax authorities |
| Answer» E. | |
| 24. |
The comparison of financial statement of one year with that of another is possible onlywhen _______ concept is followed |
| A. | going concern |
| B. | accrual |
| C. | consistency |
| D. | materiality |
| Answer» D. materiality | |
| 25. |
Valuation of stock in accounting follows the principle of cost price or ____ whichever islower. |
| A. | market price |
| B. | average price |
| C. | net realizable value |
| D. | none of these. |
| Answer» D. none of these. | |
| 26. |
The principle “Debit the receiver and credit the giver” is related to_____ |
| A. | personal a/c |
| B. | real a/c |
| C. | nominal a/c |
| D. | none |
| Answer» B. real a/c | |
| 27. |
Cash A/c is a ________ A/c. |
| A. | personal |
| B. | real |
| C. | nominal |
| D. | none |
| Answer» C. nominal | |
| 28. |
Capital A/c is a _______ A/c. |
| A. | personal |
| B. | real |
| C. | nominal |
| D. | none |
| Answer» B. real | |
| 29. |
If nothing is written about the accounting assumption to be followed it is presumed that |
| A. | they have been followed |
| B. | they have not been followed |
| C. | they are followed to some extent |
| D. | none of these |
| Answer» C. they are followed to some extent | |
| 30. |
Mr. X sold goods to Mr. Y ask Mr. X to keep the goods with him for some time |
| A. | symbolic delivery |
| B. | actual delivery |
| C. | constructive delivery |
| D. | none of these |
| Answer» B. actual delivery | |
| 31. |
As per accrual concept, which of the followings is not true |
| A. | revenue – expenditure = profit |
| B. | revenue – profit = expenditure |
| C. | sales + gross profit = revenue |
| D. | revenue = profit + expenditure |
| Answer» D. revenue = profit + expenditure | |
| 32. |
Cash a/c is a ______ |
| A. | real a/c |
| B. | nominal |
| C. | personal |
| D. | none |
| Answer» B. nominal | |
| 33. |
Debit the receiver & credit the giver is _____ account |
| A. | personal |
| B. | real |
| C. | nominal |
| D. | all the above |
| Answer» B. real | |
| 34. |
Which of the following factor is not considered while selecting accounting policies? |
| A. | prudence |
| B. | substance over form |
| C. | accountancy |
| D. | materiality |
| Answer» D. materiality | |
| 35. |
Which of the following provide frame work and accounting policies so that the financialstatements of different enterprises become comparable. |
| A. | business standards |
| B. | accounting standards |
| C. | market standards |
| D. | none |
| Answer» C. market standards | |
| 36. |
Fixed assets are double the current assets and half the capital. The current assets are Rs.3,00,000 and investments are Rs.4,00,000. Then the current liabilities recorded in balancesheet will be |
| A. | 2,00,000 |
| B. | 1,00,000 |
| C. | 3,00,000 |
| D. | 4,00,000 |
| Answer» C. 3,00,000 | |
| 37. |
The Market price of good declined than the cost price. Then the concept that plays a keyrole is ____ |
| A. | materiality |
| B. | going concern concept |
| C. | realization |
| D. | consistency |
| Answer» D. consistency | |
| 38. |
If the Market value of closing Inventory is less than its cost price, inventory will he shownat ____ |
| A. | marketable value |
| B. | fair market value |
| C. | both |
| D. | none |
| Answer» B. fair market value | |
| 39. |
According to which concept, the proprietor pays interest on drawings |
| A. | accrual concept |
| B. | conservatism concept |
| C. | entity concept |
| D. | dual aspect concept |
| Answer» D. dual aspect concept | |
| 40. |
Cost concept basically recognises ____ |
| A. | fair market value |
| B. | historical cost |
| C. | realisable value |
| D. | replacement cost |
| Answer» C. realisable value | |
| 41. |
The policy of anticipate no profit and provide for all possible losses arise due to the conceptof _____ |
| A. | consistency |
| B. | disclosure |
| C. | conservatism |
| D. | matching |
| Answer» D. matching | |
| 42. |
Small items like, pencils, pens, files, etc. are written off within a year according to ___concept. |
| A. | materiality |
| B. | consistency |
| C. | conservatism |
| D. | realisation |
| Answer» B. consistency | |
| 43. |
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. | |
| 44. |
Human resources will not appear in the balance sheet according to ______ concept. |
| A. | accrual |
| B. | going concern |
| C. | money measurement concept |
| D. | none |
| Answer» D. none | |
| 45. |
_______ is root cause for financial accounting |
| A. | stewardship accounting |
| B. | social accounting |
| C. | management accounting |
| D. | human resource accounting |
| Answer» B. social accounting | |
| 46. |
In income measurement & recognisation of assets & liabilities which of the followingconcepts goes together? |
| A. | periodicity, accural, matching |
| B. | cost, accural, matching |
| C. | going concern, cost, realization |
| D. | going concern, periodicity, reliability |
| Answer» B. cost, accural, matching | |
| 47. |
In profit and loss account, if credit is more than the debit, the difference is |
| A. | net profit |
| B. | net loss |
| C. | gross profit |
| D. | gross loss |
| Answer» B. net loss | |
| 48. |
All revenue incomes are credited to |
| A. | manufacturing account |
| B. | trading account |
| C. | profit and loss account |
| D. | balance sheet |
| Answer» D. balance sheet | |
| 49. |
Profit and loss account is a |
| A. | personal account |
| B. | real account |
| C. | nominal account |
| D. | representative personal account |
| Answer» D. representative personal account | |
| 50. |
Interest earned is a |
| A. | personal account |
| B. | real account |
| C. | nominal account |
| D. | representative personal account |
| Answer» D. representative personal account | |