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.
| 601. |
A Statement of assets and liabilities prepared under the single entry system is called: |
| A. | Balance sheet |
| B. | Financial statement |
| C. | Cash statement |
| D. | Statement of affairs |
| Answer» E. | |
| 602. |
Discount given in the Sales - Invoice itself is |
| A. | Cash discount |
| B. | Trade discount |
| C. | Rebate |
| D. | Allowance |
| Answer» C. Rebate | |
| 603. |
Bills receivable is a ___________ |
| A. | Tangible asset |
| B. | Fixed asset |
| C. | Current asse |
| Answer» D. | |
| 604. |
At the time of preparation of financial accounts, bad debt recovered account will be transferred to |
| A. | Debtors A/c |
| B. | Profit & Loss A/c |
| C. | Profit & Loss Adjustment A/c |
| D. | Profit & Loss Appropriation A/c |
| Answer» C. Profit & Loss Adjustment A/c | |
| 605. |
Royalty is a revenue expenditure to lessorSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 606. |
Financial accounting is primarily concerned with: |
| A. | Recording of financial information relating to activities of the owners of the business enterprise |
| B. | Providing financial information to assist the management in decision making. |
| C. | Reporting financial information for external users of accounting reports |
| D. | Interpretation of financial statements |
| Answer» D. Interpretation of financial statements | |
| 607. |
A document which gives company’s relationship with outside world is called: |
| A. | Articles of Association |
| B. | Memorandum of association |
| C. | Prospectus |
| D. | Statement in lieu of Prospectus |
| Answer» C. Prospectus | |
| 608. |
Which of these is not a cause of depreciation |
| A. | Usage ; |
| B. | Passage of time ; |
| C. | Fall in market demand ; |
| D. | Wear and tear |
| Answer» D. Wear and tear | |
| 609. |
The process of recording financial data up to trial balance is: |
| A. | Book keeping |
| B. | Classifying |
| C. | Summarizing |
| D. | Analyzing |
| Answer» B. Classifying | |
| 610. |
Which of the following are characteristics of the company? |
| A. | Liability of the members is limited up to the face value of the shares held by them |
| B. | It is a voluntary association of persons |
| C. | A company is a separate body can sue and be sued its own name |
| D. | All of the above |
| Answer» E. | |
| 611. |
Final account subsystem in Accounting Information System (AIS) deals withSol: |
| A. | Preparation of budgets |
| B. | Preparation of Pay Roll |
| C. | Preparation of Final Accounts |
| D. | None of the above |
| Answer» D. None of the above | |
| 612. |
Which of these expenses does not result in cash outflow |
| A. | Depreciation ; |
| B. | Interest on Loan ; |
| C. | Payment on Dividend ; |
| D. | Donation |
| Answer» B. Interest on Loan ; | |
| 613. |
Purchase day book records |
| A. | All cash purchases ; |
| B. | All credit purchases ; |
| C. | Only credit purchase of raw material or goods purchased for resale ; |
| D. | All purchases |
| Answer» D. All purchases | |
| 614. |
A B C are three partners sharing profit and loss in the ration of 2:2:1, B recently obtained MBA degree from Oxford University, accordingly the partner decided to give him a guaranteed profit of ` 60,000. Find the share of profit of B if the firm made a net profit of ` 1,25,000 during 2012-13 |
| A. | 60,000 ; |
| B. | 50,000 ; |
| C. | 25,000 ; |
| D. | 40,000 |
| Answer» B. 50,000 ; | |
| 615. |
_____________is an example of fixed asset |
| A. | Receivable |
| B. | Stock |
| C. | Land & building |
| Answer» D. | |
| 616. |
Recoupment of shortworking can be restricted or unrestrictedSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 617. |
Income tax is debited to ________________ |
| A. | Profit and loss account |
| B. | Cash accounting |
| C. | Drawings accoun |
| Answer» D. | |
| 618. |
Goodwill is an intangible AssetsSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 619. |
Meaning of single entry system of book keeping is |
| A. | only one entry for each transaction |
| B. | incomplete double entry system |
| C. | both entries only in accounts |
| D. | none of these |
| Answer» C. both entries only in accounts | |
| 620. |
Under which method of depreciation annual depreciation goes on decreasing |
| A. | Reducing balance method ; |
| B. | Straight line method ; |
| C. | Annuity method ; |
| D. | None |
| Answer» B. Straight line method ; | |
| 621. |
Which of the following is a representative Personal A/c |
| A. | Outstanding Salary A/c ; |
| B. | Rent A/c ; |
| C. | SBI A/c ; |
| D. | Bad debts A/c |
| Answer» B. Rent A/c ; | |
| 622. |
The properties and possession of a business are termed as ________ |
| A. | Asset |
| B. | Capital |
| C. | Liabilities |
| D. | None of these |
| Answer» B. Capital | |
| 623. |
The basic concepts related to Balance Sheet are |
| A. | Cost Concept |
| B. | Business Entity Concept |
| C. | Accounting Period Concept |
| D. | Both (a) and (b) above |
| Answer» E. | |
| 624. |
The components of Computerised Accounting System are :Sol: |
| A. | Data, Report, Ledger, Hardware, Software |
| B. | Data, People, Procedure, Hardware, Software |
| C. | People, Procedure, Ledger, Data, Chart of Accounts |
| D. | Data, Coding, Procedure, Rules, Output |
| Answer» C. People, Procedure, Ledger, Data, Chart of Accounts | |
| 625. |
Short working can be recouped out of |
| A. | Minimum Rent |
| B. | Excess of Actual Royalty over Minimum Rent |
| C. | Excess of Minimum Rent over Actual Royalty |
| D. | Profit and Loss Account |
| Answer» C. Excess of Minimum Rent over Actual Royalty | |
| 626. |
Share allotment account is a ------------------ |
| A. | Personal Account |
| B. | Real Account |
| C. | Nominal Account |
| D. | Impersonal Account |
| Answer» B. Real Account | |
| 627. |
Total depreciation of an asset cannot exceed its: |
| A. | Scrap value ; |
| B. | Residual value ; |
| C. | Market value ; |
| D. | Depreciable value |
| Answer» B. Residual value ; | |
| 628. |
Which methods of valuation of GoodwillSol: |
| A. | Super Profit |
| B. | Capitalization |
| C. | Average Profit |
| D. | All of the Above |
| Answer» E. | |
| 629. |
Who are the real owners of a company? |
| A. | Government |
| B. | Board of Directors |
| C. | Equity shareholders |
| D. | Debentureholders |
| Answer» D. Debentureholders | |
| 630. |
The profits of the last three years is55000,50000,45000. Value of goodwill of 2 yearspurchase of average profit isSol: |
| A. | 100000 |
| B. | 42000 |
| C. | 126000 |
| D. | None |
| Answer» B. 42000 | |
| 631. |
The value of asset can be reduced to zero under this method ____ |
| A. | Straight line method |
| B. | Written down value method |
| C. | Annuity method |
| D. | Depreciation fund method |
| Answer» C. Annuity method | |
| 632. |
A reserve is created but its identity is merged with some other account or group of accounts so that the existence of the reserve is not known: |
| A. | Capital reserves |
| B. | Secret Reserves |
| C. | Undisclosed Reserves |
| D. | none |
| Answer» D. none | |
| 633. |
Receipts and Payments Account is a :Sol: |
| A. | Personal Account |
| B. | Real Account |
| C. | Nominal Account |
| D. | None of these |
| Answer» C. Nominal Account | |
| 634. |
Which of the following term is most suitable for writing off Patent? |
| A. | Depletion |
| B. | Amortization |
| C. | Depreciation |
| D. | All of the above |
| Answer» C. Depreciation | |
| 635. |
These are the reserves created only to strengthen the financial position or the business and to keep the funds available for any future contingency or expenditure that may be required: |
| A. | Specific Reserves |
| B. | General Reserves |
| C. | Capital Reserves |
| D. | none |
| Answer» C. Capital Reserves | |
| 636. |
Which of the following is a capital expenditure |
| A. | Repair of plant and machinery ; |
| B. | Salary paid to workers ; |
| C. | Cost of stand by equipment; |
| D. | Annual whitewash of the office building |
| Answer» D. Annual whitewash of the office building | |
| 637. |
The amount of depreciation charged on a machinery will be debited to: |
| A. | Machinery Account |
| B. | Depreciation Account |
| C. | Cash Account |
| D. | Repair Account |
| Answer» C. Cash Account | |
| 638. |
The business is treated as distinct and separate from its owners on the basis of the |
| A. | Going concern concept |
| B. | Conservatism concept |
| C. | Matching concept |
| D. | Business entity concept |
| Answer» E. | |
| 639. |
A revenue that is collected before it has been earned is called |
| A. | Accrued revenue |
| B. | Unrecorded revenue |
| C. | Deferred revenue |
| D. | Unearned |
| Answer» E. | |
| 640. |
Property received as a result of the will of the deceased person is called:Sol: |
| A. | Lagacy |
| B. | Honorarium |
| C. | Donation |
| D. | Subscription |
| Answer» B. Honorarium | |
| 641. |
Balance of X's account in creditors ledger is transferred to X's account in debtorsledger, in this case |
| A. | X's account in debtors ledger will be debited. |
| B. | X's account in creditors ledger will be debited. |
| C. | Suspense account will be debit |
| Answer» C. Suspense account will be debit | |
| 642. |
When Bills Receivable is returned dishonoured by the drawee, which of these A/c is debited by thedrawee |
| A. | Drawer A/c ; |
| B. | Bank A/c ; |
| C. | BP A/c ; |
| D. | BR A/c |
| Answer» D. BR A/c | |
| 643. |
Gross assets – liabilities will be equal to |
| A. | Net assets |
| B. | Total assets |
| C. | Capital |
| D. | Net liabilities |
| Answer» D. Net liabilities | |
| 644. |
The total number of accounting standards issued by ICAI so far is |
| A. | 29 |
| B. | 32 |
| C. | 42 |
| D. | 36 |
| Answer» C. 42 | |
| 645. |
The interest lost on the acquisition of an asset is taken into account in calculating depreciation in: |
| A. | Depletion Method |
| B. | Annuity Method |
| C. | Diminishing Balance Method |
| D. | none |
| Answer» C. Diminishing Balance Method | |
| 646. |
A machine is purchased at a cost of Rs. 5,00,000. Its useful life is 5 years with a scrap value of Rs. 50,000. It is sold for Rs. 40,000 at the end of 5 years. The profit or loss on the sale would be: |
| A. | Profit Rs. 15,000 |
| B. | Loss Rs. 5,000 |
| C. | No Profit no Loss |
| D. | Loss of Rs. 1,000 |
| Answer» E. | |
| 647. |
According to this convention, important items must be recorded instead of being left outor merged with other items. |
| A. | Convention of Consistency |
| B. | Convention of Full Disclosure |
| C. | Convention of Materiality |
| D. | Convention of Prudence |
| Answer» D. Convention of Prudence | |
| 648. |
Which of the following should be deducted from the share capital to determine the paid upshare capital. |
| A. | Calls in advance |
| B. | Calls in arrears |
| C. | Security premium reserve |
| D. | Discount on issue of shares. |
| Answer» C. Security premium reserve | |
| 649. |
Goods in stock worth ` 800 are destroyed by fire and the Insurance Co. is accepted the claim for ` 600. Adjustment would involve: |
| A. | Debit of ` 800 to Trading Account and credit of ` 600 and ` 200 to insurance company and Profit and Loss Account respectively |
| B. | Deduct the ` 800 from closing stock in the Trading Account |
| C. | Credit insurance company for ` 600 |
| D. | Debit of ` 600 and ` 200 to insurance company and Profit and Loss Account respectively and |
| Answer» E. | |
| 650. |
The error disclosed by Trial Balance is |
| A. | Wrong amount posted in ledger account |
| B. | Error of principle |
| C. | Non‐ recording of a transaction in the books of original entry |
| D. | Errors of omission |
| Answer» B. Error of principle | |