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.
| 851. |
In order to deal with the re possession the hire vendor operates an account called _______ |
| A. | Asset account |
| B. | Goods account |
| C. | Goods repossessed account |
| D. | None of these |
| Answer» D. None of these | |
| 852. |
Pick the odd one outSol: |
| A. | Password security |
| B. | Data Audit |
| C. | Data Bank |
| D. | Data vault |
| Answer» D. Data vault | |
| 853. |
In the creditors control account, all of the below exist except: |
| A. | Credit purchases ; |
| B. | Purchase returns ; |
| C. | Cash purchases ; |
| D. | Cash/cheques paid |
| Answer» D. Cash/cheques paid | |
| 854. |
Which of these is an example of accelerate method of depreciation |
| A. | Written down value method ; |
| B. | Straight line method ; |
| C. | Sinking fund method ; |
| D. | Annuity method |
| Answer» B. Straight line method ; | |
| 855. |
The term "compound entry" means that the journal entry has |
| A. | More than two accounts involved in the entry |
| B. | A debit amount greater than the credit amount |
| C. | A credit amount greater than the debit amount |
| D. | Only one debit, but two credits |
| Answer» B. A debit amount greater than the credit amount | |
| 856. |
AB are two partners in a firm, as per the terms of agreement partners drawing will carry interest @ 10%. If A has drawn funds from business as per the details given below. Find the interest for the year ended 31.12.2012 01.04.2012 ` 20,000 01.06.2012 ` 10,000 01.09.2012 ` 20,000 |
| A. | 2,500 |
| B. | 2,750 |
| C. | 1,417 |
| D. | 2,000 |
| Answer» C. 1,417 | |
| 857. |
Only the significant events which affect the business must be recorded as per the principle of |
| A. | Separate Entity |
| B. | Accrual |
| C. | Materiality |
| D. | Going Concern |
| Answer» D. Going Concern | |
| 858. |
Not-for-profit organisations are based on…………………………theory.Sol: |
| A. | Fund |
| B. | Surplus |
| C. | Profit |
| D. | Expenses |
| Answer» B. Surplus | |
| 859. |
Which of the company’s capital is not shown in balance sheet? |
| A. | Authorized Capital |
| B. | Issued and Subscribed Capital |
| C. | Called and Paid up Capital |
| D. | Reserve Capital |
| Answer» E. | |
| 860. |
Cash discount is allowed by |
| A. | Wholesaler |
| B. | Debtor |
| C. | Creditor |
| D. | Retailer |
| Answer» D. Retailer | |
| 861. |
Balance of Income and Expenditure Account shows:Sol: |
| A. | Cash in hand |
| B. | Capital fund |
| C. | Net Profit |
| D. | Excess of Income over expenditure or vice versa |
| Answer» E. | |
| 862. |
Opening capital is ascertained by preparing: |
| A. | Cash book |
| B. | Creditors A/c |
| C. | Debtors A/c |
| D. | Opening statement of affairs. |
| Answer» E. | |
| 863. |
Under hire purchase system depreciation is charged: |
| A. | on cash price |
| B. | hire purchase price |
| C. | market price |
| D. | none of these |
| Answer» B. hire purchase price | |
| 864. |
In question no. 351, Bad Debts A/c would be debited by — |
| A. | 3,600 ; |
| B. | 3,750 ; |
| C. | 1,250 ; |
| D. | 4,000 |
| Answer» C. 1,250 ; | |
| 865. |
Which of the following is a liability of a firm? |
| A. | Debit balance of analytical Petty Cash Book |
| B. | Credit balance of Bank Pass book |
| C. | Debit balance of Bank column of Cash Book |
| D. | Credit balance of Bank column of Cash Book |
| Answer» E. | |
| 866. |
If goods are destroyed by fire , the total value of loss is __________ to trading account. |
| A. | Debited |
| B. | Credited |
| C. | Not take |
| Answer» C. Not take | |
| 867. |
In capital comparison method gross profit= |
| A. | excess of opening capital over closing capital |
| B. | excess of closing capital over opening capital |
| C. | excess of sales over purchase |
| D. | excess of income over expenditure |
| Answer» C. excess of sales over purchase | |
| 868. |
Discount on purchase will be |
| A. | Debited to profit and loss account |
| B. | Credited to profit and loss account |
| C. | Deducted from purchases |
| D. | Added to purchases |
| Answer» C. Deducted from purchases | |
| 869. |
This is the kind of software which is specifically designed for meeting the requirements ofa particular business.Sol: |
| A. | Enterprise Resource Planning software |
| B. | Customised accounting packages |
| C. | Pre-packaged accounting software |
| D. | Spreadsheet software |
| Answer» C. Pre-packaged accounting software | |
| 870. |
What do you mean by Super ProfitSol: |
| A. | Average profit – Normal profit |
| B. | Total Profits/ No. of Years |
| C. | Average profit + normal profits |
| D. | None of the above |
| Answer» B. Total Profits/ No. of Years | |
| 871. |
Royalties is calculated either on the basis of ………………..Sol: |
| A. | Production |
| B. | Sales |
| C. | Output |
| D. | Both A and B |
| Answer» E. | |
| 872. |
Which of the following accounts would normally have a credit balance? |
| A. | Assets. |
| B. | Expenses. |
| C. | Liabilities. |
| D. | None of the above. |
| Answer» D. None of the above. | |
| 873. |
Improper valuation of inventory effects— |
| A. | Profitability ; |
| B. | Financial position ; |
| C. | Both ; |
| D. | Cash inflows |
| Answer» D. Cash inflows | |
| 874. |
The minimum share application is |
| A. | 1% of the face value |
| B. | 5% of the face value |
| C. | 10% of the face value |
| D. | 25% of the face value |
| Answer» C. 10% of the face value | |
| 875. |
Short working = …………………- Royalty PayableSol: |
| A. | Minimum rent |
| B. | Capital |
| C. | Cash |
| D. | None |
| Answer» B. Capital | |
| 876. |
_________ liabilities represent proprietor’s equity, i.e. all thoseamount which areentitled to the proprietor |
| A. | External; |
| B. | Debenture; |
| C. | Internal; |
| D. | None of the above. |
| Answer» D. None of the above. | |
| 877. |
The Sales Returns Day Book would include: |
| A. | Goods bought on credit ; |
| B. | Fixed Assets bought that are inappropriate for business ; |
| C. | Stock that customers have returned ; |
| D. | Goods bought on credit that are returned to the original supplier |
| Answer» D. Goods bought on credit that are returned to the original supplier | |
| 878. |
Ledger is a book of ___________entry |
| A. | Original |
| B. | Secondary |
| C. | None of these |
| Answer» C. None of these | |
| 879. |
Which of the following assets is a fictitious asset |
| A. | Goodwill A/c ; |
| B. | Prepaid Rent A/c ; |
| C. | Outstanding Salary A/c ; |
| D. | Preliminary expenses A/c |
| Answer» E. | |
| 880. |
The following account has a credit balance |
| A. | Plant and Equipment A/c |
| B. | Purchase Returns A/c |
| C. | Purchase A/c |
| D. | None of the above |
| Answer» C. Purchase A/c | |
| 881. |
Which of the following will not appear in Profit and Loss Account of a business? |
| A. | Drawings |
| B. | Bad debts |
| C. | Accrued expenses |
| D. | Reserve for discount on Sundry Creditors |
| Answer» B. Bad debts | |
| 882. |
Sales ledger contains accounts of |
| A. | Suppliers |
| B. | Customers |
| C. | Total sales |
| D. | All the above |
| Answer» B. Customers | |
| 883. |
The business will continue to operate for an indefinitely long period in the future, unless there isa good evidence to the contrary this assumption is related to |
| A. | cost concept |
| B. | dual aspect concept |
| C. | matching concept |
| D. | none of these |
| Answer» E. | |
| 884. |
A _________ is a person to whom business owes money |
| A. | Creditor |
| B. | Debtor |
| C. | proprieto |
| Answer» B. Debtor | |
| 885. |
Prepaid expense is _________ to the business |
| A. | Asset |
| B. | Liability |
| C. | Expense |
| Answer» B. Liability | |
| 886. |
In the case of joint stock company, goodwill is shown on the asset side under thehead. |
| A. | Non current asset |
| B. | Investment |
| C. | Current asset |
| D. | Miscellanious expenditure |
| Answer» B. Investment | |
| 887. |
Professional bodies of which of the following countries is not a founding member of IASC — |
| A. | Australia ; |
| B. | India ; |
| C. | Japan ; |
| D. | USA |
| Answer» C. Japan ; | |
| 888. |
When bill discounted with the bank is dishonoured? |
| A. | Acceptor‘s Account is debited in the books of drawer |
| B. | Bills Receivable Account is credited in the books of drawer |
| C. | Bank Account is debited in the books of drawer |
| D. | Bills Payable Account is debited in the books of drawer |
| Answer» B. Bills Receivable Account is credited in the books of drawer | |
| 889. |
The basic principles of ____ concept is that business is assumed to exist for anindefinite period |
| A. | Going Concern; |
| B. | Business Entity; |
| C. | Money Measurement; |
| D. | None of the above. |
| Answer» B. Business Entity; | |
| 890. |
Cash sales will be recorded in — |
| A. | Sales Day Book ; |
| B. | Cash Book ; |
| C. | Purchase Book ; |
| D. | Return in Ward Book |
| Answer» C. Purchase Book ; | |
| 891. |
Income and expenditure account is a ________ |
| A. | Real |
| B. | Nominal |
| C. | Personal |
| D. | None of these |
| Answer» C. Personal | |
| 892. |
To convert the accounts prepared on cash system of accounting into mercantile system ofaccounting, which of these adjustments is not necessary |
| A. | Reconciliation of cash with bank |
| B. | Adjustment of prepaid expenses and income received in advance |
| C. | Adjustment of outstanding expenses and income statement |
| D. | Distinction between revenue and capital expenditure/income |
| Answer» B. Adjustment of prepaid expenses and income received in advance | |
| 893. |
A person who owes money to the firm is called |
| A. | Debtors |
| B. | Creditors |
| C. | Owners |
| D. | Bankers |
| Answer» B. Creditors | |
| 894. |
The amount payable to a person as consideration for the use of rights vested in him is |
| A. | Dividend |
| B. | Royalty |
| C. | Purchase consideration |
| D. | Installment |
| Answer» C. Purchase consideration | |
| 895. |
The profit on depreciation policy is transferred to: |
| A. | Depreciation reserve account |
| B. | Profit and Loss Account |
| C. | Asset account |
| D. | none |
| Answer» B. Profit and Loss Account | |
| 896. |
An asset which does not have a physical form but has the potential to have a monetaryvalue is known as an -------------Sol: |
| A. | Fictitious Asset |
| B. | Physical Asset |
| C. | Intangible Asset |
| D. | all |
| Answer» D. all | |
| 897. |
Which of the following is true regarding closing entries? |
| A. | They must be followed by reversing entries |
| B. | They transfer the balances in all of the Nominal Accounts to the Trading and Profit and Loss Account |
| C. | They must be made after the reversing entries but before the adjusting entries |
| D. | They must be made after the adjusting entries but before the reversing entries |
| Answer» E. | |
| 898. |
Branch stock is always prepared at _______ price |
| A. | Cost |
| B. | Invoice |
| C. | Market price |
| D. | Cost or market price whichever is less |
| Answer» C. Market price | |
| 899. |
Allowance made for prompt payment is called |
| A. | Cash allowance |
| B. | Cash discount |
| C. | Trade discount |
| D. | Discount |
| Answer» C. Trade discount | |
| 900. |
Income received in advance by a business units is |
| A. | A liability |
| B. | An assets |
| C. | A loss |
| D. | Gain |
| Answer» B. An assets | |