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. |
The fundamental accounting equation Assets = liabilities is the formal expression of |
| A. | Matching concept |
| B. | Entity concept |
| C. | Going concern concept |
| D. | Dual aspect concept |
| Answer» E. | |
| 2. |
If closing stock appear on the trial balance it must have been ____ |
| A. | Added to the purchase |
| B. | Added to the opening stock |
| C. | Deducted from the purchases |
| D. | Deducted from opening stock |
| Answer» D. Deducted from opening stock | |
| 3. |
The liabilities that are payable in more than a year and are not be liquidated from currentassets |
| A. | Current liabilities |
| B. | Fixed liabilities |
| C. | Contingent liabilities |
| D. | All of the above |
| Answer» C. Contingent liabilities | |
| 4. |
Purchase of Raw Material for Cash |
| A. | Increases total Assets |
| B. | Leaves total Assets unchanged |
| C. | Increases total Fixed Assets |
| D. | Increases total Current Assets |
| Answer» C. Increases total Fixed Assets | |
| 5. |
Under the direct write-off method of recognizing a bad debt expense. Which of the followingstatements is/are true? |
| A. | The bad debt expense is not matched with the related sales |
| B. | Revenue is overstated in the year of sales |
| C. | It violates the matching principle of accounting |
| D. | All of the above |
| Answer» E. | |
| 6. |
Which of the following is not a Qualitative characteristicof Financial Statement? |
| A. | Cost Principle |
| B. | Understandability |
| C. | Relevance |
| D. | Reliability |
| Answer» B. Understandability | |
| 7. |
Specific donation of Rs 1000 is |
| A. | Income |
| B. | Capital |
| C. | Liability |
| D. | Asset |
| Answer» C. Liability | |
| 8. |
Cash paid to creditors can be calculated from |
| A. | debtors account |
| B. | creditors account |
| C. | bills receivable account |
| D. | bills payable account |
| Answer» C. bills receivable account | |
| 9. |
A is entitled to 10% partner‘s commission before charging such commission. Find the commissionpayable to A if the net profit before charging such commission amounted to ` 60,000 |
| A. | 5,900 ; |
| B. | 6,000 ; |
| C. | 5,000 ; |
| D. | 5,050 |
| Answer» C. 5,000 ; | |
| 10. |
The term PBIT stands for:- |
| A. | Profit before Income Tax ; |
| B. | Profit before Interest and Tax ; |
| C. | Profit before Internal Transfers ; |
| D. | Profit by Income Tax |
| Answer» C. Profit before Internal Transfers ; | |
| 11. |
Depreciation is charged on |
| A. | Current asset |
| B. | Fixed asset |
| C. | Intangible asset |
| D. | Current liability |
| Answer» C. Intangible asset | |
| 12. |
Which of the following statement is falseSol: |
| A. | If a lessee leases a part of the leased property to another person , it is called sublease |
| B. | Royalty receivable account is opened in the books of Lessor |
| C. | Recoupable short working is a current assets |
| D. | None of the above |
| Answer» C. Recoupable short working is a current assets | |
| 13. |
When branch A sent goods to branch B in the books of branch A debit is given to |
| A. | head office account |
| B. | branch B account |
| C. | sales returns account |
| D. | purchase returns account |
| Answer» B. branch B account | |
| 14. |
Accounting Standard 1 requires the significant Accounting Policies to |
| A. | Be suitable disclosed ; |
| B. | Be circulated to all the shareholders separately ; |
| C. | Be notified ; |
| D. | Be changed from time to time |
| Answer» B. Be circulated to all the shareholders separately ; | |
| 15. |
The software may also allow for graphical rendering of data, which is useful for carryingout analysis.Sol: |
| A. | Enterprise Resource Planning software |
| B. | Spreadsheet software |
| C. | Pre-packaged accounting software |
| D. | Customised accounting packages |
| Answer» C. Pre-packaged accounting software | |
| 16. |
Which of the following error is an error of principle |
| A. | 5,000 received from Sham credited to Ram A/c |
| B. | 5,000 incurred on installation of new plant debited to travelling expenses A/c |
| C. | 500 paid for wages debited to salary A/c |
| D. | 500 being purchase of raw material debited to purchase A/c ` 50 |
| Answer» C. 500 paid for wages debited to salary A/c | |
| 17. |
Legacy are generally- |
| A. | Capitalized ; |
| B. | Treated Loss ; |
| C. | Revenue Expenses ; |
| D. | Deferred Revenue expenses. |
| Answer» B. Treated Loss ; | |
| 18. |
Debit side of Bank Pass book corresponds to – |
| A. | Credit side of Cash Book ; |
| B. | Debit side of Cash Book ; |
| C. | Debit side of Trial Balance |
| D. | Credit side of Balance Sheet |
| Answer» B. Debit side of Cash Book ; | |
| 19. |
Stock left over taken by a Co- venturer is— |
| A. | Debited to Joint Venture A/c ; |
| B. | Credited to Co-venturer A/c ; |
| C. | Credited to Joint Venture A/c ; |
| D. | Credited to Joint Bank A/c |
| Answer» D. Credited to Joint Bank A/c | |
| 20. |
Zero Coupon Bonds are issued : |
| A. | At Zero Interest Rate |
| B. | With Specified Rate of Interest |
| C. | Without Specified Rate of Interest |
| D. | None of These |
| Answer» D. None of These | |
| 21. |
A and B purchased a piece of land for ` 30,000 and sold it for `60,000 in 2016.Originally A had contributed `12,000 and B `8,000. The profit on venture will be |
| A. | 30,000 |
| B. | 20,000 |
| C. | 60,000 |
| D. | Nil |
| Answer» B. 20,000 | |
| 22. |
Which among the following is not a reason for depreciation? |
| A. | Use of asset |
| B. | Passage of time |
| C. | Obsolescence |
| D. | Repair of an asset |
| Answer» E. | |
| 23. |
Outstanding Salaries are shown as: |
| A. | An Expense |
| B. | A Liability |
| C. | An asset |
| D. | none |
| Answer» C. An asset | |
| 24. |
A book wherein various accounts are opened is called— |
| A. | Subsidiary books ; |
| B. | Journal ; |
| C. | Ledger ; |
| D. | Trial Balance |
| Answer» D. Trial Balance | |
| 25. |
Narrations are usually given at the end of |
| A. | Each journal entry ; |
| B. | Each page ; |
| C. | Each column ; |
| D. | Each account |
| Answer» B. Each page ; | |
| 26. |
________________ voucher denotes payment of cash. |
| A. | Cash Payment |
| B. | Cash Receipt |
| C. | Bank Payment |
| D. | All of the above |
| Answer» B. Cash Receipt | |
| 27. |
_______ are investments which are held beyond the current period as to sale ordisposal. |
| A. | Non-current Investments |
| B. | Current Investments |
| C. | Current Liabilities |
| D. | None of the above |
| Answer» B. Current Investments | |
| 28. |
Credit in the liability means |
| A. | Increase |
| B. | Decrease |
| C. | No charg |
| Answer» B. Decrease | |
| 29. |
Loss on sale of machinery will be: |
| A. | Debited on machinery A/c |
| B. | Credited to machinery A/c |
| C. | Credited to profit and loss A/c |
| D. | None of them |
| Answer» C. Credited to profit and loss A/c | |
| 30. |
Interest on Debenture is: |
| A. | An appropriation of profit |
| B. | A charge against the profit |
| C. | A charge against capital reserve |
| D. | A part of revaluation reserve |
| Answer» C. A charge against capital reserve | |
| 31. |
Tick the correct match 1. Current Asset 1. Depreciation 2. Nominal A/c 2. Land 3. Non Depreciable Asset 3. Insurance A/c 4. Non Cash Expense 4. Prepaid Rent A/c |
| A. | (1,2), (2,3), (3,4), (4,1) |
| B. | (1,3), (2,1), (3,4), (4,2) |
| C. | (1,4), (2,2), (3,1), (4,3) |
| D. | (1,4), (2,3) (3,2), (4,1) |
| Answer» E. | |
| 32. |
Which of these items will not be capitalized along with the Asset |
| A. | Installation charges ; |
| B. | Annual repair and maintenance ; |
| C. | Statutory levies ; |
| D. | Freight and insurance |
| Answer» C. Statutory levies ; | |
| 33. |
Which of the following is of capital nature? |
| A. | Commission on purchases |
| B. | Cost of repairs |
| C. | Rent of factory |
| D. | Wages paid for installation of machinery |
| Answer» E. | |
| 34. |
Bills payable dishonored during g the year will be credited to |
| A. | bills payable |
| B. | creditors |
| C. | bills receivable |
| D. | debtors |
| Answer» B. creditors | |
| 35. |
A company is allowed by law to sell 200 000 shares at Rs.2.00 each. Three-quarters (3/4) of these shares were bought by the public. What is the issued share capital? |
| A. | Rs. 100 000 |
| B. | Rs. 300 000 |
| C. | Rs. 400 000 |
| D. | Rs. 500 000 |
| Answer» C. Rs. 400 000 | |
| 36. |
Shortworking is Excess of Minimum Rent over Actual ProductionSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 37. |
During the year 2011-2012, the value of closing inventory was overstated by ` 25,000. Which of the following is true? |
| A. | The cost of goods sold was overstated during 2011-2012 and income will be understated during 2012-2013 |
| B. | The income was overstated during 2011-12 and closing inventory will be overstated during 2012- 2013 |
| C. | The retained earnings was overstated during 2011-2012 and retained earnings will be understated during 2012-2013 |
| D. | The cost of goods sold was understated during 2011-2012 but retained earnings will not be affected during 2012-2013 |
| Answer» D. The cost of goods sold was understated during 2011-2012 but retained earnings will not be affected during 2012-2013 | |
| 38. |
Mines, quarries etc are |
| A. | Fixed asset |
| B. | Fictitious asset |
| C. | Current asset |
| D. | Wasting asset |
| Answer» E. | |
| 39. |
From the following details what will be the partners‘ commission? Net profit before charging partners‘ commission `65,000. Partners‘ commission 11% before charging such commission |
| A. | 6441 ; |
| B. | 5431 ; |
| C. | 7150 ; |
| D. | 5876 |
| Answer» D. 5876 | |
| 40. |
Debenture is treated in books of account as: |
| A. | Personal account |
| B. | Nominal account |
| C. | Real account |
| D. | None of the above |
| Answer» B. Nominal account | |
| 41. |
Property, Plant and Equipment are conventionally presented in the Balance Sheet at |
| A. | Replacement cost – Accumulated Depreciation |
| B. | Historical cost – Salvage Value |
| C. | Historical cost – Depreciation portion thereof |
| D. | Original cost adjusted for general price-level changes |
| Answer» D. Original cost adjusted for general price-level changes | |
| 42. |
Capital fund is calculated:Sol: |
| A. | Income-Expenditure |
| B. | Assets Liabilities |
| C. | Capital + Liabilities |
| D. | None of these |
| Answer» C. Capital + Liabilities | |
| 43. |
Goods are transferred from Department A to Department B at a price so as to include a profit of 33.33% on cost. If the value of closing stock of Department Y is `36,000, then the amount of stock reserve on closing stock will be |
| A. | 12,000 |
| B. | 9,000 |
| C. | 18,000 |
| D. | None of the above |
| Answer» C. 18,000 | |
| 44. |
Income and expenditure account is the ______ account of a non trading concern |
| A. | Balance sheet |
| B. | P & L account |
| C. | Ledger |
| D. | General |
| Answer» C. Ledger | |
| 45. |
Which of the following should not be treated as revenue expenditure? |
| A. | Interest on loans and debentures |
| B. | Annual fire insurance premiums on Plant and Equipment |
| C. | Sales tax paid in connection with the purchase of office equipment |
| D. | Small expenditures on long- lived assets, such as ` 20 for a paper weight. |
| Answer» D. Small expenditures on long- lived assets, such as ` 20 for a paper weight. | |
| 46. |
Balance of trading account is a transfer to |
| A. | Balance sheet |
| B. | Trial balance |
| C. | Profit and loss account |
| D. | Income statement |
| Answer» D. Income statement | |
| 47. |
Which of the following is true about the straight-line method? |
| A. | Complex method |
| B. | Cost of depreciation remains constant |
| C. | Cost of depreciation changes every year |
| D. | P&L account debited with different amount every year |
| Answer» C. Cost of depreciation changes every year | |
| 48. |
Such kind of software offers various functionalities such as cell content, pivot table,formulas and macros. |
| A. | Enterprise Resource Planning software |
| B. | Pre-packaged accounting software |
| C. | Spreadsheet software |
| D. | Customised accounting packages |
| Answer» D. Customised accounting packages | |
| 49. |
Features of computerised accounting systemSol: |
| A. | Complete visibility |
| B. | Fast, powerful, simple and integrated |
| C. | Accuracy and speed |
| D. | All of the above |
| Answer» C. Accuracy and speed | |
| 50. |
Ram want to install a computerised accounting system but his budget is low. Whichsoftware he should opt forSol: |
| A. | Ready to use Software |
| B. | Customized Software |
| C. | Tailor-made Software |
| D. | He can buy any of above, all cost same |
| Answer» B. Customized Software | |