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.
| 1101. |
On 1st April 2013 Abhay of Patna consigned goods costing `7500 to Bhola of Ranchi at a proformainvoice price of 25% profit on sales. The Consignment A/c will be credited for stock loading by – |
| A. | 2500 ; |
| B. | 1875 ; |
| C. | 2000 ; |
| D. | 1500 |
| Answer» B. 1875 ; | |
| 1102. |
Premium received on issue of shares is shown on-----------. |
| A. | Asset side of the balance sheet |
| B. | liability side of the balance sheet |
| C. | credit side of the P&L a/c |
| D. | debit side of the P & L a/c |
| Answer» C. credit side of the P&L a/c | |
| 1103. |
What type of expenditure is shown as asset in balance sheet? Capital expenditure |
| A. | Revenue expenditure |
| B. | Deferred revenue expenditure |
| C. | Capitalized expenditure |
| D. | none |
| Answer» B. Deferred revenue expenditure | |
| 1104. |
From the following details calculate the net profit for the year ending 31.03.2013 Opening Stock ` 1,50,000; Purchase ` 2,50,000; Manufacturing Expenses ` 80,000; Selling Expenses ` 20,000; Administration Expenses ` 10,000; Financial Charges ` 5,000; Slaes ` 5,55,000 which includes damaged goods sold for ` 5,000 against the cost price of ` 12,000. Gross profit margin on normal sales is 20% on the sales |
| A. | 65,000 ; |
| B. | 68,000 ; |
| C. | 70,000 ; |
| D. | 77,000 |
| Answer» C. 70,000 ; | |
| 1105. |
Computers can be used in accounting in different number of ways:Sol: |
| A. | Utility in batch processing |
| B. | Utility in Online/Interactive Processing |
| C. | Utility in Wage/Payroll System |
| D. | All of the above |
| Answer» E. | |
| 1106. |
Profit and loss on Depreciation Investment Fund A/c is transferred to — |
| A. | Profit and Loss A/c ; |
| B. | General Reserve A/c ; |
| C. | Trading A/c ; |
| D. | Capital Reserve A/c |
| Answer» B. General Reserve A/c ; | |
| 1107. |
A Single entry system is usually adopted by: |
| A. | Company |
| B. | Partnership |
| C. | Government |
| D. | None of above |
| Answer» D. None of above | |
| 1108. |
Real accounts record: |
| A. | Dealings with creditors or debtors |
| B. | Dealings in commodities |
| C. | Gains and losses |
| D. | All of the above |
| Answer» C. Gains and losses | |
| 1109. |
Debenture holders are : |
| A. | Owners of the Company |
| B. | Debtors of the Company |
| C. | Creditors of the Company |
| D. | Promoters of the Company |
| Answer» D. Promoters of the Company | |
| 1110. |
All items of revenue in nature are shown in:Sol: |
| A. | Income and Expenditure A/c |
| B. | Balance Sheet |
| C. | (a) and (b) both |
| D. | None of these |
| Answer» B. Balance Sheet | |
| 1111. |
Which of the following is not a reason that explains why more firms are reporting onsocial matters? |
| A. | Media power |
| B. | Increased efficiency |
| C. | Encouragement from governments through company law |
| D. | Consumer's views |
| Answer» C. Encouragement from governments through company law | |
| 1112. |
The debts which are not bad is known as |
| A. | Good debt |
| B. | Bad Debt |
| C. | Doubtful Debt |
| D. | None of the above |
| Answer» B. Bad Debt | |
| 1113. |
Which of the following commission is allowed by the consignor to the consignee to encourage the consignee for putting-up hard work in introducing new product in the market? |
| A. | Del-credere Commission |
| B. | Over-riding Commission |
| C. | Hard work Commission |
| D. | Ordinary Commission |
| Answer» C. Hard work Commission | |
| 1114. |
Bad debts recovered is |
| A. | Credited to P&L A/c |
| B. | Debited to P&L A/c |
| C. | Reduced from debtors in Balance Sheet |
| D. | Added to debtors in Balance Sheet |
| Answer» B. Debited to P&L A/c | |
| 1115. |
At the end of the accounting year the capital expenditures are shown in the |
| A. | assets side of the Balance Sheet. |
| B. | liabilities side of the Balance Sheet. |
| C. | debit side of the Profit and Loss A/c. |
| D. | credit side of the Profit and Loss A/c. |
| Answer» B. liabilities side of the Balance Sheet. | |
| 1116. |
Capital always have a __________balance |
| A. | Debit |
| B. | Credit |
| C. | Either a or |
| Answer» C. Either a or | |
| 1117. |
Which of the following items should not be capitalized relating to fixed assets? |
| A. | Interest payable on loans or deferred credits taken for the acquisition or construction of fixed assets before they are ready for use |
| B. | Stand by equipment and servicing equipment |
| C. | Expenditure incurred on test runs and experimental production |
| D. | Administration and general expenses |
| Answer» E. | |
| 1118. |
Goodwill is defined asSol: |
| A. | Intangible asset |
| B. | Fictitious asset |
| C. | Current asset |
| D. | Liquid asset |
| Answer» B. Fictitious asset | |
| 1119. |
What are the factors to be considered while source accounting software?Sol: |
| A. | Flexibility |
| B. | Adaptability |
| C. | Interest of management |
| D. | Both a & b |
| Answer» E. | |
| 1120. |
Depreciation amount of a fixed asset represents — |
| A. | Historical cost less residual value ; |
| B. | Historical cost ; |
| C. | Historical cost less cost of disposal; |
| D. | Book Value less scrap value |
| Answer» B. Historical cost ; | |
| 1121. |
Which of the following purpose is served from the preparation of Trial Balance? |
| A. | To check the arithmetical accuracy of the recorded transactions; |
| B. | To ascertain the balance of any ledger account; |
| C. | To facilitate the preparation of final accounts promptly; |
| D. | All of the above. |
| Answer» E. | |
| 1122. |
The underlying accounting principle(s) necessitating amortization of intangible asset(s) is/are |
| A. | Cost Concept |
| B. | Realization Concept |
| C. | Matching Concept |
| D. | Both (a) and (c) above |
| Answer» C. Matching Concept | |
| 1123. |
If average inventory is `1,25,000 and closing inventory is `10,000 less than openinginventory then the value of closing inventory will be |
| A. | 1,35,000 |
| B. | 1,15,000 |
| C. | 1,30,000 |
| D. | 1,20,000 |
| Answer» E. | |
| 1124. |
Net worth of an organization means the excess of its total assets over total: |
| A. | Expenses |
| B. | Incomes |
| C. | Liabilities |
| D. | Both (a) and (b) |
| Answer» D. Both (a) and (b) | |
| 1125. |
Cash purchase of fixed asset is entered in the |
| A. | Purchase book |
| B. | General ledger |
| C. | Cashbook |
| D. | Purchase account |
| Answer» D. Purchase account | |
| 1126. |
Withdrawals by proprietor would |
| A. | Reduce both Assets and Owner‘s Equity |
| B. | Reduce Assets and increase Liabilities |
| C. | Reduce Owner‘s Equity and increase Liabilities |
| D. | Have no affect on the Balance Sheet |
| Answer» B. Reduce Assets and increase Liabilities | |
| 1127. |
Source document for sales returns |
| A. | Debit note |
| B. | Credit note |
| C. | Source note |
| D. | Journal |
| Answer» C. Source note | |
| 1128. |
Unearned income is a |
| A. | Liability |
| B. | Asset |
| C. | Expense |
| D. | Income |
| Answer» B. Asset | |
| 1129. |
The noting charges levied on dishonour of an endorsed bill by the Notary Public are to be borne by |
| A. | The drawer of the bill |
| B. | The person responsible for dishonour |
| C. | The holder of the bill |
| D. | The endorser of the bill |
| Answer» C. The holder of the bill | |
| 1130. |
The amount of capital that a company can issue at par value is called: |
| A. | Authorized capital |
| B. | Share premium |
| C. | Issued capital |
| D. | Fixed capital |
| Answer» B. Share premium | |
| 1131. |
Purchase of assets are entered in nonprofit organization’s book is called |
| A. | Stock register |
| B. | Purchase register |
| C. | Asset register |
| D. | Cash register |
| Answer» B. Purchase register | |
| 1132. |
Depreciation is |
| A. | An accounting necessity only |
| B. | Tax necessity only |
| C. | Tax and accounting necessity |
| D. | Tax, account and audit necessity |
| Answer» E. | |
| 1133. |
royalty is an agreement between the following personSol: |
| A. | Seller and buyer |
| B. | Banker and customer |
| C. | Among all partners |
| D. | Lessor and lessee |
| Answer» E. | |
| 1134. |
1/6 profit on sales means ________ on cost |
| A. | 1/6 |
| B. | 1/5 |
| C. | ¼ |
| D. | 1/3 |
| Answer» C. ¼ | |
| 1135. |
Donation which is given as per will is known as |
| A. | Special donation |
| B. | Gift |
| C. | Legacy |
| D. | Secret donation |
| Answer» D. Secret donation | |
| 1136. |
The principle of recognizing revenue proportionately on the basis of work actually doneis generally followed in case of: |
| A. | Long term contracts |
| B. | Short term contracts |
| C. | Not done |
| D. | Casual Contracts |
| Answer» B. Short term contracts | |
| 1137. |
Which of these is not a part of double entry system |
| A. | Joint Bank A/c ; |
| B. | Memorandum A/c ; |
| C. | Joint Venture A/c ; |
| D. | Joint Venture with other co-venturer A/c |
| Answer» C. Joint Venture A/c ; | |
| 1138. |
Transaction& events not capable of being expressed in terms of money are not to berecorded in accounting due to |
| A. | Going concern |
| B. | Accounting entity |
| C. | Money measuremen |
| Answer» D. | |
| 1139. |
X a debtor is declared insolvent and only 25 paise in a rupee is recovered from his estate. If X owes `5,000 to Y, Y would debit Cash A/c by — |
| A. | 5,000 ; |
| B. | 25 ; |
| C. | 1,250 ; |
| D. | 2,500 |
| Answer» D. 2,500 | |
| 1140. |
Purchase goods from ram this is a |
| A. | Cash purchase |
| B. | Credit purchase |
| C. | Partly cash purchase |
| D. | Bulk purchase |
| Answer» C. Partly cash purchase | |
| 1141. |
Cash discount is provided? |
| A. | Early payment |
| B. | Late payment |
| C. | Bulk purchase |
| D. | Bulk sales |
| Answer» B. Late payment | |
| 1142. |
Based on which of the following concepts, is Share Capital Account shown on the liabilities side of aBalance Sheet? |
| A. | Business entity concept |
| B. | Money measurement concept |
| C. | Going concern concept |
| D. | Matching concept |
| Answer» B. Money measurement concept | |
| 1143. |
Imprest system is used in |
| A. | Petty cashbook |
| B. | Simple cashbook |
| C. | Double column cashbook |
| D. | Three column cashbook |
| Answer» B. Simple cashbook | |
| 1144. |
All those to whom business owes to money are |
| A. | Debtor |
| B. | Creditor |
| C. | Investo |
| Answer» C. Investo | |
| 1145. |
Honorarium is |
| A. | Revenue income |
| B. | Capital income |
| C. | Revenue expenditure |
| D. | Capital expenditure |
| Answer» B. Capital income | |
| 1146. |
A situation where accompany receives application for a greater number of shares than offered to the public for s7ubscription is termed as: |
| A. | Undersubscription |
| B. | Oversubscription |
| C. | Normal Subscription |
| D. | none |
| Answer» C. Normal Subscription | |
| 1147. |
The following statement stands true when intangible assets are compared to the currentassetsSol: |
| A. | Useful life is short |
| B. | Useful life is moderate |
| C. | Useful life is long |
| D. | all |
| Answer» D. all | |
| 1148. |
Human resource accounting attempts to place a value on: |
| A. | The operations of the personnel department |
| B. | The whole workforce |
| C. | Training undertaken over a period of time |
| D. | Recruitment processes |
| Answer» C. Training undertaken over a period of time | |
| 1149. |
The accounting process of gradually converting the unexpired cost of fixed assets into expenses overa series of accounting periods is |
| A. | Depreciation |
| B. | Physical deterioration of the asset |
| C. | Decrease in market value of the asset |
| D. | Valuation of an asset at a point of time |
| Answer» B. Physical deterioration of the asset | |
| 1150. |
Owing of the business are called — |
| A. | Liabilities ; |
| B. | Capital ; |
| C. | Net Worth ; |
| D. | Assets |
| Answer» B. Capital ; | |