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. |
Debentures represent the : |
| A. | Long-term Borrowings of a Company |
| B. | The Investment of Equity-Shareholders |
| C. | Directors’ shares in a company |
| D. | Short-term Borrowings of a Company |
| Answer» B. The Investment of Equity-Shareholders | |
| 2. |
The term _________denotes the cost of services and things used for earning revenue |
| A. | Income |
| B. | Expense |
| C. | Los |
| Answer» C. Los | |
| 3. |
What is not an advantage of a computerized accounting system.Sol: |
| A. | High Speed |
| B. | High Reliability |
| C. | Reduced training cost |
| D. | None of the above |
| Answer» D. None of the above | |
| 4. |
The opening stock of a company is `60,000 and the closing stock is `70,000. If the purchases duringthe year are `2,00,000 the cost of goods sold will be |
| A. | 2,10,000 ; |
| B. | 2,00,000 ; |
| C. | 1,90,000 ; |
| D. | ) `1,80,000 |
| Answer» D. ) `1,80,000 | |
| 5. |
The share of profit a shareholder will receive is called: |
| A. | Dividend |
| B. | Surplus |
| C. | Net profit |
| D. | Retained profit |
| Answer» B. Surplus | |
| 6. |
If the rate of G.P on sale is 20% and cost of goods, sold is Rs. 100,000, then amount of G.P willbe equal to: |
| A. | Rs. 20,000 |
| B. | Rs.25,000 |
| C. | Rs.35,000 |
| D. | Rs.15,000 |
| Answer» C. Rs.35,000 | |
| 7. |
A debenture holder is entitled to : |
| A. | Fixed dividend |
| B. | Share in profits |
| C. | Voting rights in the company |
| D. | Interest at the fixed rate |
| Answer» E. | |
| 8. |
Patent Royalty is based in Sales of a ProductSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 9. |
A statement of debt & credit balance of account is ___________ |
| A. | Ledger |
| B. | Profit & loss account |
| C. | Trial balanc |
| Answer» D. | |
| 10. |
The balance of trading account is called |
| A. | Balance carried down |
| B. | Net profit |
| C. | Gross profit |
| D. | Suspense account |
| Answer» D. Suspense account | |
| 11. |
Anticipate no profits and provide for all possible losses. This is essence of which of thefollowing accounting principles: |
| A. | Materiality Principle |
| B. | Timeliness Principle |
| C. | Consistency Principle |
| D. | Conservatism Principle |
| Answer» E. | |
| 12. |
The capital of a non-profit organization is generally known as |
| A. | Equity ; |
| B. | Accumulated Fund ; |
| C. | Finance Reserve ; |
| D. | Cash Fund |
| Answer» C. Finance Reserve ; | |
| 13. |
Debt notice prepared by the purchase of goods when ____ |
| A. | He return the goods |
| B. | He purchases the goods |
| C. | He purchases For credit |
| D. | He purchases for cash |
| Answer» B. He purchases the goods | |
| 14. |
Return outwards book is known as |
| A. | Purchase return journal |
| B. | Sales return book |
| C. | Purchase from outsiders |
| D. | Return inwards |
| Answer» B. Sales return book | |
| 15. |
To obtain the amount of credit sales made during an accounting period, which account is generallyused in single entry and incomplete records? |
| A. | Payable Account ; |
| B. | Total Revenue Account ; |
| C. | Debtors Account ; |
| D. | Stock Account |
| Answer» D. Stock Account | |
| 16. |
Drawee is the person….. |
| A. | Who draw a bill of exchange ; |
| B. | Who presents the bill of exchange for payment ; |
| C. | Who accepts the bill of exchange ; |
| D. | Who holds the bill of exchange till maturity |
| Answer» D. Who holds the bill of exchange till maturity | |
| 17. |
Premium on the issue of shares should be shown : |
| A. | On the Assets side of balance sheet |
| B. | On the Equity & Liabilities side of balance sheet |
| C. | In profit & loss Statement |
| D. | None of the Above |
| Answer» C. In profit & loss Statement | |
| 18. |
Amount received from the proprietors as capital or loan receipt is treated as- |
| A. | Capital Receipt ; |
| B. | Revenue Receipt ; |
| C. | Revenue Income ; |
| D. | Capital Income |
| Answer» B. Revenue Receipt ; | |
| 19. |
Closing stock is valued at ____________ |
| A. | Market price |
| B. | Cost price |
| C. | Cost price or market price whichever is les |
| Answer» D. | |
| 20. |
_____________is the original form of accounting |
| A. | Financial accounting |
| B. | Cost accounting |
| C. | Management accountin |
| Answer» D. | |
| 21. |
Prepaid expenses are ______ account |
| A. | Nominal |
| B. | Personal |
| C. | Personal account without name |
| D. | Real |
| Answer» D. Real | |
| 22. |
In case of private placement of shares, to raise the amount of capital a company : |
| A. | invites the public through prospectus |
| B. | does not invite the public |
| C. | invites the public through advertisement |
| D. | invites the public through memorandum of association |
| Answer» C. invites the public through advertisement | |
| 23. |
The Capital of X Ltd. was ` 55,000 as on 01.04.2012 which fell to ` 25,000 by the end of 31.03.2013. Findthe value of goods sent of consignment basis — |
| A. | Drawings ; |
| B. | Business losses during the period ; |
| C. | Both ; |
| D. | Introduction of new capital |
| Answer» D. Introduction of new capital | |
| 24. |
Outstanding salary account is58 |
| A. | Real Account |
| B. | Personal Account |
| C. | Nominal Account |
| D. | None of the above |
| Answer» C. Nominal Account | |
| 25. |
Pro-rata allotment of shares is made when there is : |
| A. | Under subscription |
| B. | Oversubscription |
| C. | Equal subscription |
| D. | As and when desired by directors |
| Answer» C. Equal subscription | |
| 26. |
Weighted average method of calculating goodwill is used whenSol: |
| A. | Profits are not equal |
| B. | Profits show an increasing or decreasing trend |
| C. | Profits are Fluctuating |
| D. | None of the Above |
| Answer» C. Profits are Fluctuating | |
| 27. |
Equity shares cannot be issued for the purpose of: |
| A. | Cash Receipts |
| B. | Purchase of assets |
| C. | Redemption of debentures |
| D. | Distribution of dividend |
| Answer» E. | |
| 28. |
In case specific fund is maintained, the expenses exceeding the amount of the funds,should be recorded on: |
| A. | Liabilities side of the Balance Sheet |
| B. | Debit side of the Income and Expenditure Account |
| C. | Credit side of the Income and Expenditure Account |
| D. | Assets side of the Balance Sheet |
| Answer» C. Credit side of the Income and Expenditure Account | |
| 29. |
Loss of cash by theft committed by cashier after business hours is a |
| A. | Revenue loss |
| B. | Deferred revenue loss |
| C. | Capital loss |
| D. | Business loss |
| Answer» D. Business loss | |
| 30. |
Non profit organizations trial balance shows |
| A. | Debit |
| B. | Credit |
| C. | Equal balance |
| D. | Suspense account |
| Answer» D. Suspense account | |
| 31. |
M draw a 3 months bill of exchange of ` 20,000 on T on 1st April 07. On due date T paid ` 4,000 and requested M to draw another bill of exchange for 2 months. On the due date of second bill of exchange T is declared insolvement and a dividend of 25 paisa in a rupee is expedited to be realized from his assets. Find the amount receivable from T in respect of the outstanding bill of exchange |
| A. | 5,000 ; |
| B. | 4,000 ; |
| C. | 16,000 ; |
| D. | 20,000 |
| Answer» C. 16,000 ; | |
| 32. |
Discount allowed on re-issue of forfeited shares is debited to : |
| A. | Share Capital A/c |
| B. | Share forfeiture A/c |
| C. | Statement of Profit & Loss |
| D. | General Reserve A/c |
| Answer» C. Statement of Profit & Loss | |
| 33. |
Net profit / loss is transferred to the ______ account |
| A. | Asset account |
| B. | Liabilities account |
| C. | Capital account |
| D. | None of these |
| Answer» D. None of these | |
| 34. |
Petty cash balance is a/an — |
| A. | Assets ; |
| B. | Expenditure ; |
| C. | Liability ; |
| D. | None |
| Answer» B. Expenditure ; | |
| 35. |
When goods are purchased for cash, the entry will be recorded in the? |
| A. | Cash book |
| B. | Purchases book |
| C. | Journal |
| D. | None |
| Answer» B. Purchases book | |
| 36. |
Small payments are entered in |
| A. | Simple cashbook |
| B. | Petty cash book] |
| C. | Double column cashbook |
| D. | Three column cashbook |
| Answer» C. Double column cashbook | |
| 37. |
Patent Royalty is based onSol: |
| A. | Production |
| B. | Sales |
| C. | Purchase |
| D. | Both A and B |
| Answer» B. Sales | |
| 38. |
AS-9 is related to |
| A. | Revenue Recognition |
| B. | Cash Flow Statement |
| C. | Accounting for Fixed Assets |
| D. | Disclosure of Accounting policies |
| Answer» B. Cash Flow Statement | |
| 39. |
Adjusted purchase means |
| A. | Purchase |
| B. | Purchase + opening stock |
| C. | Purchase‐ closing stock |
| D. | Closing stock + opening stock |
| Answer» E. | |
| 40. |
The components of computerised accounting system areSol: |
| A. | Data, Report, Ledger, software, Hardware |
| B. | Software, Hardware, People, Procedure, Data |
| C. | Data, Coding, Procedure, Objective, Output |
| D. | People, Procedure, Hard ware, software |
| Answer» C. Data, Coding, Procedure, Objective, Output | |
| 41. |
A firm has a policy of changing depreciation on Plant and Machinery @ 10% under WDV Method. If the book value of Plant and Machinery was ` 81,000 on 31.03.2013. Find the original cost of the plant if the same was purchased on 01.04.2011 |
| A. | 80,000 ; |
| B. | 1,00,000 ; |
| C. | 81,000 ; |
| D. | 1,20,000 |
| Answer» C. 81,000 ; | |
| 42. |
When a person purchasing goods on credit he becomes a………….. in the books of the seller- |
| A. | Debtor ; |
| B. | Creditor ; |
| C. | Defaulter ; |
| D. | Offender |
| Answer» B. Creditor ; | |
| 43. |
Generally the term fund is used to mean the difference between |
| A. | Current assets and current liabilities ; |
| B. | Profit and loss A/C and Balance sheet ; |
| C. | Current assets and non-current liabilities ; |
| D. | Current liabilities and non-current liabilities |
| Answer» B. Profit and loss A/C and Balance sheet ; | |
| 44. |
Income and expenditure account is a type of ______ |
| A. | Balance sheet |
| B. | Receipts and payment |
| C. | Profit and loss account |
| D. | None of these |
| Answer» D. None of these | |
| 45. |
When Sales = `3,60,000, Purchase = ` 3,20,000, Opening Stock = `68,000 and rate of the Gross Profit is 20% on cost, the Closing Stock would be |
| A. | 1,00,000 |
| B. | 44,000 |
| C. | 46,000 |
| D. | None of the above |
| Answer» E. | |
| 46. |
Share Application account is a |
| A. | Real Account |
| B. | Nominal Account |
| C. | Mixed Account |
| D. | Personal Account |
| Answer» E. | |
| 47. |
Receipts and payment account contains |
| A. | Only receipts and payment of current year |
| B. | All receipts and payments |
| C. | Income and expenditure |
| D. | All the above |
| Answer» C. Income and expenditure | |
| 48. |
Shortworking can be recouped only out of ………………..Sol: |
| A. | Surplus |
| B. | Loss |
| C. | Extra Income |
| D. | Taxes |
| Answer» B. Loss | |
| 49. |
Which of these is a normal loss — |
| A. | Loss in weight due to weather conditions ; |
| B. | Shortage during transit ; |
| C. | Breakage during handling ; |
| D. | Loss in value due to market conditions |
| Answer» B. Shortage during transit ; | |
| 50. |
The beginnings inventory of the current year is overstated by ` 5,000 and closing inventory isoverstated by ` 12,000. These errors will cause the net income for the current year by |
| A. | 17,000 (overstated) |
| B. | 12,000 (understated) |
| C. | 7,000 (overstated) |
| D. | 7,000 (understated) |
| Answer» D. 7,000 (understated) | |