MCQOPTIONS
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MCQOPTIONS
This section includes 1706 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 501. |
Excess of minimum rent over royalty is known as |
| A. | Maximum rent |
| B. | Excess workings |
| C. | Short workings |
| D. | Deficiency of actual royalty |
| Answer» D. Deficiency of actual royalty | |
| 502. |
According to AS-3 (Revised) interest and dividends received in the case of a manufacturing enterprise should be classified as cash flow from |
| A. | Operating Activities |
| B. | Financing Activities |
| C. | Investing Activities |
| D. | Both (b) and (c) |
| Answer» D. Both (b) and (c) | |
| 503. |
Total sales made during a year is found out from the |
| A. | Sales book |
| B. | Sales account |
| C. | Total sales book |
| D. | All the above |
| Answer» C. Total sales book | |
| 504. |
Creditors account is prepared to ascertain |
| A. | cash purchases |
| B. | cash sales |
| C. | credit sales |
| D. | credit purchases |
| Answer» B. cash sales | |
| 505. |
The Income created but not yet received is known as: |
| A. | Unearned Income |
| B. | Outstanding Income |
| C. | Acrued Income |
| D. | none |
| Answer» D. none | |
| 506. |
Fixed Assets and Current Assets are categorized as per concept of |
| A. | Separate Entity |
| B. | Going Concern |
| C. | Consistency |
| D. | Time period |
| Answer» C. Consistency | |
| 507. |
Income and expenses related to the prize fund is shown in:Sol: |
| A. | Income and Expenditure Account |
| B. | Assets side of the Balance Sheet |
| C. | Liabilities side of the Balance Sheet |
| D. | Cash Account |
| Answer» B. Assets side of the Balance Sheet | |
| 508. |
Unless otherwise stated, a preference share is always deemed to be : |
| A. | Cumulative, participating and non-convertible |
| B. | Non-cumulative, non-participating and non-convertible |
| C. | Cumulative, non-participating and non-convertible |
| D. | Non-cumulative, participating and non-convertible |
| Answer» D. Non-cumulative, participating and non-convertible | |
| 509. |
The stock is valued at |
| A. | Cost price |
| B. | Market price |
| C. | Cost price or market price whichever is higher |
| D. | Cost price or market price whichever is lower |
| Answer» E. | |
| 510. |
Recoupment is always necessary in royaltiesSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 511. |
In non – profit organizations excess of assets over liabilities is called |
| A. | Capital block |
| B. | General fund |
| C. | Shareholders fund |
| D. | Capital |
| Answer» C. Shareholders fund | |
| 512. |
Exception to consistency principle is |
| A. | Cost Principle |
| B. | Going Concern Principle |
| C. | Matching Principle |
| D. | Prudence Principle |
| Answer» E. | |
| 513. |
When a B/R is discounted, what entry is passed by the Drawee— |
| A. | Bank A/c Dr. to B/R Cr. ; |
| B. | Drawer A/c Dr. to B/R A/c Cr. |
| C. | B/R A/c Dr. to B/P A/c Cr. ; |
| D. | No entry |
| Answer» E. | |
| 514. |
XYZ Ltd. follows the written down value method of depreciating machinery year afteryear due to |
| A. | Comparability |
| B. | Convenience |
| C. | Consistency |
| D. | All of the above |
| Answer» D. All of the above | |
| 515. |
Schedule XIV of the Companies Act specifies —————— as minimum rate of depreciation (WDV) onship fishing vessels |
| A. | 27% ; |
| B. | 33% ; |
| C. | 10% ; |
| D. | 15% |
| Answer» B. 33% ; | |
| 516. |
Name the book in which, entries are recorded on the basis of debit notes issued. |
| A. | Sales book |
| B. | Purchase Book |
| C. | Sales Return Book |
| D. | Purchase Return Book |
| Answer» E. | |
| 517. |
Donation received for a special purpose:Sol: |
| A. | Should be credited to Income and Expenditure A/c |
| B. | Should be credited to a separate account and shown in the Balance Sheet |
| C. | Should be shown on the Assets side of the Balance Sheet |
| D. | None of these |
| Answer» C. Should be shown on the Assets side of the Balance Sheet | |
| 518. |
A new company set up by existing companies with five year track record can issue share at premium provided: |
| A. | Participation of existing companies are not less than 50% |
| B. | Prospectus contains justification for issue price |
| C. | The issue price is made applicable to all new investors uniformly |
| D. | All the above |
| Answer» E. | |
| 519. |
In case of a debt becoming bad, the amount should be credited to |
| A. | Debtor’s Account |
| B. | Bad Debts Account |
| C. | Sales Account |
| D. | Suspense Account |
| Answer» B. Bad Debts Account | |
| 520. |
Withdrawal of goods from stock by the owner of the business for personal use should be recorded by |
| A. | Debiting Stock Account and crediting Capital Account |
| B. | Debiting Capital Account and crediting Drawings Account |
| C. | Debiting Drawings Account and Crediting Stock Account |
| D. | Debiting Stock Account and Crediting Drawings Account |
| Answer» D. Debiting Stock Account and Crediting Drawings Account | |
| 521. |
A foreign bill of exchange is generally drawn up in — |
| A. | Triplicate ; |
| B. | Duplicate ; |
| C. | Single ; |
| D. | Quadruplicate |
| Answer» B. Duplicate ; | |
| 522. |
Any gain on the sale of non-current assets should be _________ from the net profit and the loss mustbe _________to the net profit in determining fund from operation |
| A. | Added, Reduced ; |
| B. | Added, Added ; |
| C. | Deducted, Added ; |
| D. | Deducted, Deducted |
| Answer» D. Deducted, Deducted | |
| 523. |
The creation of provision for doubtful debts given as an adjustment requires |
| A. | Debit Profit and Loss Account and deduct the provision from debtors |
| B. | Credit Profit & Loss Account and deduct the provision from debtors |
| C. | Credit Profit and Loss Account and add the provision to debtors |
| D. | Debit Profit & Loss Account and add the provision to debtors |
| Answer» B. Credit Profit & Loss Account and deduct the provision from debtors | |
| 524. |
Reserve Capital is also known by : |
| A. | Capital Reserve |
| B. | Called up Capital |
| C. | Subscribed Capital |
| D. | None of the above |
| Answer» E. | |
| 525. |
Process of spreading cost 3. Profit and Loss A/c4. Check arithmetic accuracy 4. Accounting for Fixed Asset |
| A. | (1, 2), (2, 3), (3, 4), (4,1) |
| B. | (1, 3), (2, 4), (3, 2), (4, 1) |
| C. | (1, 4) (2, 2) (3, 1), (4, 3) |
| D. | (1, 4), (2, 3), (3, 2), (4, 1) |
| Answer» D. (1, 4), (2, 3), (3, 2), (4, 1) | |
| 526. |
Value of an asset is 9 lakh, scrap value is 125000, estimated life is 10 years the cost of depreciation under straight-line method will be |
| A. | 65000 |
| B. | 89000 |
| C. | 77500 |
| D. | 67880 |
| Answer» D. 67880 | |
| 527. |
____________ expenditure is increased to maintain the business or to keep the assets ingood working condition |
| A. | Revenue |
| B. | Capital |
| C. | Both of ther |
| Answer» B. Capital | |
| 528. |
Public subscription of shares include : |
| A. | To Issue Prospectus |
| B. | To Receive Applications |
| C. | To Make Allotment |
| D. | All of the Above |
| Answer» E. | |
| 529. |
Under which method of depreciation annual depreciation fluctuate with the volume of production |
| A. | Sum of Years‘ Digit Method ; |
| B. | Production Method ; |
| C. | Written Down Value Method ; |
| D. | None |
| Answer» C. Written Down Value Method ; | |
| 530. |
According to _________ concept it is assumed that the business will last for long time |
| A. | Accounting entity |
| B. | Going concern |
| C. | Accounting perio |
| Answer» C. Accounting perio | |
| 531. |
A petty cash book is usually kept under system |
| A. | Mercantile |
| B. | Cash system |
| C. | Import syste |
| Answer» D. | |
| 532. |
Interest received in advance account is a |
| A. | Nominal Account |
| B. | Real Account |
| C. | Artificial Personal Account |
| D. | Representative Personal Account |
| Answer» E. | |
| 533. |
In the books of the drawer, the accounting treatment involved on receipt of a bill of exchange dulyaccepted by the drawee is i. Debit Bills Receivable Account ii. Debit Drawee‘s Account iii. Credit Drawee‘s Account iv. Credit Sales Account |
| A. | Only (i) above |
| B. | Both (ii) and (iv) above |
| C. | Both (i) and (iii) above |
| D. | Both (i) and (iv) above |
| Answer» D. Both (i) and (iv) above | |
| 534. |
Debit the losses and expenses and credit the gain and income is applicable to ______ |
| A. | Personal account |
| B. | Real account |
| C. | Nominal account |
| D. | Owners account |
| Answer» D. Owners account | |
| 535. |
If the royalty is less than minimum rent , the balance of royalty account at the end of theyear has to be transfer toSol: |
| A. | Capital reserve account. |
| B. | Reserve capita account |
| C. | Profit and loss account |
| D. | None of the above |
| Answer» D. None of the above | |
| 536. |
What is the order in which the accounting transactions and events are recorded in the books |
| A. | Journal, Subsidiary books, Profit & Loss A/c and Ledger |
| B. | Ledger, Journal, Balance Sheet and Profit & Loss A/c |
| C. | Journal, Ledger, Profit & Loss A/c and Balance Sheet |
| D. | Profit & Loss A/c, Ledger and Balance Sheet |
| Answer» D. Profit & Loss A/c, Ledger and Balance Sheet | |
| 537. |
Shiva draws a bill on Sanat on 25th October, 2018 for 90 days, the maturity date of thebill will be |
| A. | 27th January, 2019 |
| B. | 26th January, 2019 |
| C. | 25th January, 2019 |
| D. | 28th January, 2019 |
| Answer» D. 28th January, 2019 | |
| 538. |
Bad -debts written off always affect the: |
| A. | Debtors A/c |
| B. | Creditor A/c |
| C. | Cash A/c |
| D. | None of these |
| Answer» B. Creditor A/c | |
| 539. |
Bad debts Recovered `750. It will be |
| A. | Credited to Bad debts A/c |
| B. | Credited to debtor‘s personal A/c |
| C. | Debited to creditor‘s personal A/c |
| D. | Credited to bad debts recovered A/c |
| Answer» E. | |
| 540. |
Divisible profit do not include |
| A. | Insurance fund |
| B. | Reserve fund, |
| C. | profit and loss account balance |
| D. | revaluation reserve |
| Answer» E. | |
| 541. |
The excess of assets over liabilities in non-trading concerns is termed as:Sol: |
| A. | Capital Fund |
| B. | Capital |
| C. | Profit |
| D. | Net profit |
| Answer» B. Capital | |
| 542. |
Copyright royalty is based onSol: |
| A. | Sales |
| B. | Production |
| C. | Purchase |
| D. | Both A and B |
| Answer» B. Production | |
| 543. |
Minimum Rent in the first year Rs 1,00,000 and will be increased by Rs 10,000 p.a. forthree years and then after by 10% per year. What is the amount at the end of 6th year? |
| A. | Rs 100000 |
| B. | Rs 157300 |
| C. | Rs 168000 |
| D. | Rs 200000 |
| Answer» C. Rs 168000 | |
| 544. |
X draws a 3 months bill of exchange for ` 25,000 upon Y on 23-10-12. Find the due date of the bill. |
| A. | 24-01-13 ; |
| B. | 25-01-13 ; |
| C. | 26-01-13 ; |
| D. | 23-01-13 |
| Answer» D. 23-01-13 | |
| 545. |
Which of the following equations properly represents a derivation of the fundamentalaccounting equation? |
| A. | Assets + liabilities = owner's equity. |
| B. | Assets = owner's equity. |
| C. | Cash = assets. |
| D. | Assets - liabilities = owner's equity. |
| Answer» E. | |
| 546. |
A computer is an electric deviceSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 547. |
Final accounts are prepared……. |
| A. | At the end of calendar year |
| B. | on every Diwali |
| C. | at the end of assessment year |
| D. | at the end of accounting year |
| Answer» E. | |
| 548. |
Del credere commission is allowed to — |
| A. | Consignee ; |
| B. | Consignor ; |
| C. | Agent of consignee ; |
| D. | Debt collection agency |
| Answer» B. Consignor ; | |
| 549. |
If the rate of G/P is 25% of sales and the cost of goods sold is ` 150000, the amount of G/Pwill be |
| A. | `30000 |
| B. | `25000 |
| C. | `40000 |
| D. | `50000 |
| Answer» E. | |
| 550. |
Capital account is ________________ account |
| A. | Personal |
| B. | Real |
| C. | Nomina |
| Answer» B. Real | |