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.
| 1201. |
Based on the facts given in question no. 366 above find the total commission payable to theConsignee |
| A. | 2,000 ; |
| B. | 3,000 ; |
| C. | 1,000 ; |
| D. | 1,500 |
| Answer» C. 1,000 ; | |
| 1202. |
_______ is the initial payment made at the time of signing the hire purchase agreement |
| A. | HP price |
| B. | Installment price |
| C. | Cash price |
| D. | Down payment |
| Answer» B. Installment price | |
| 1203. |
Return of shares voluntarily by a shareholder to the company for cancellation is called: |
| A. | Surrender of Shares |
| B. | Forfeiture of Shares |
| C. | Reissue of Shares |
| D. | All of above |
| Answer» B. Forfeiture of Shares | |
| 1204. |
Goodwill will have no effect on business Financial statusSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 1205. |
Excess of income over expenditure of non trading concern is called _______ |
| A. | Profit |
| B. | deficit |
| C. | Surplus |
| D. | Loss |
| Answer» D. Loss | |
| 1206. |
Cost of goods sold excludes — |
| A. | Opening Stock ; |
| B. | Closing Stock ; |
| C. | Wages and Salary ; |
| D. | Salesmen Commission |
| Answer» E. | |
| 1207. |
The trial balance checks |
| A. | Arithmetical accuracy of books |
| B. | The honesty of the book-keeper |
| C. | The valuation of closing stock |
| D. | None of the three |
| Answer» B. The honesty of the book-keeper | |
| 1208. |
Computer Accounting System is used for recording the financial transaction.Sol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 1209. |
X purchased a new plant and machinery for ` 50,000 on 01.01.2012. The machinery was received in the factory on 10.01.2012 and was installed and put to use on 18.01.2012. Depreciation on the plant and machinery will commence from |
| A. | 01.04.2011 ; |
| B. | 01.04.2012 ; |
| C. | 01.01.2012 ; |
| D. | 18.01.2012 |
| Answer» E. | |
| 1210. |
The term Imprest system is related to……… |
| A. | Petty cash ; |
| B. | Inventory valuation ; |
| C. | Classification of assets ; |
| D. | None |
| Answer» B. Inventory valuation ; | |
| 1211. |
Asset that can be converted into cash within a year are called _________asset |
| A. | Current |
| B. | Fixed asset |
| C. | Wasting asse |
| Answer» B. Fixed asset | |
| 1212. |
It is supposed that on 31-12-20012, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 5 % of the sundry debtors are doubtful. It is also suppose that during the year 2013 actual bad debts were Rs. 1,600. What entry will pass to create provision for doubtful debts? |
| A. | Profit & Loss a/c Rs. 2,000 (Dr) & Provision for doubtful debts a/c Rs. 2,000 (Cr) |
| B. | Provision for doubtful debts a/c Rs. 2,000 (Dr) & Profit & Loss a/c Rs. 2,000 (Cr) |
| C. | Provision for doubtful debts a/c Rs. 1,600 (Dr) & Profit & Loss a/c Rs. 1,600 (Cr) |
| D. | Profit & Loss a/c Rs. 1,600 (Dr) & Provision for doubtful debts a/c Rs. 1,600 (Cr) |
| Answer» C. Provision for doubtful debts a/c Rs. 1,600 (Dr) & Profit & Loss a/c Rs. 1,600 (Cr) | |
| 1213. |
Bad debts are apportioned among departments in the proportion of |
| A. | Sales of each department |
| B. | Number of units sold by each department |
| C. | Cost of sales of each department |
| D. | None of the above |
| Answer» C. Cost of sales of each department | |
| 1214. |
Research and Development Cost A/c appearing in Balance Sheet is a — |
| A. | Real A/c ; |
| B. | Intangible Asset A/c ; |
| C. | Tangible Asset A/c ; |
| D. | Personal A/c |
| Answer» C. Tangible Asset A/c ; | |
| 1215. |
Outstanding salaries is shown as |
| A. | An Asset in the Balance Sheet |
| B. | A Liability |
| C. | By adjusting it in the P & L A/c |
| D. | Both (b) and (c) above |
| Answer» E. | |
| 1216. |
If a bill is endorsed to a third party, the accounting entry in the books of the endorser, at the time ofendorsement involves |
| A. | Credit Endorsee‘s Account |
| B. | Debit Endorsee‘s Account |
| C. | Debit Bills Receivable Account |
| D. | Credit Bills Payable Account |
| Answer» C. Debit Bills Receivable Account | |
| 1217. |
Which of the following transactions of a business is/ are recorded in Journal Proper?(i) Purchase of goods on credit (ii) Sale of Office Furniture for cash (iii) Discounting of Bill of Exchange with a bank (iv) Endorsement of a Bill of Exchange in settlement of debt of the business |
| A. | Only (i) above |
| B. | Only (iv) above |
| C. | Both (ii) and (iv) above |
| D. | (i),(iii) and (iv) above |
| Answer» C. Both (ii) and (iv) above | |
| 1218. |
The trial balance of the accounts of incomplete records shows |
| A. | debit balance |
| B. | credit balance |
| C. | equal balance |
| D. | none of these |
| Answer» E. | |
| 1219. |
Income tax authorities recognize this method ___ |
| A. | Straight line method. |
| B. | Written down value method. |
| C. | Annuity method. |
| D. | Depreciation fund method |
| Answer» C. Annuity method. | |
| 1220. |
Surplus is…………….Sol: |
| A. | Excess of minimum rent over the actual royalty |
| B. | Excess of actual royalty over minimum rent |
| C. | Excess of actual royalty over minimum rent |
| D. | None of the above |
| Answer» C. Excess of actual royalty over minimum rent | |
| 1221. |
The purpose of final accounts is to ascertain. … |
| A. | Profit |
| B. | The value of assets |
| C. | The value of liabilities |
| D. | profit or loss and financial position |
| Answer» E. | |
| 1222. |
Del credere commission is allowed to consignee |
| A. | for making cash sales |
| B. | for making credit sales |
| C. | for making extra sales |
| D. | for undertaking risk of bad debts |
| Answer» E. | |
| 1223. |
Lessee is the…………Sol: |
| A. | Owner |
| B. | User |
| C. | None |
| D. | Both |
| Answer» C. None | |
| 1224. |
The original cost at which an asset or liability is acquired is known as -------- |
| A. | Amortization |
| B. | Replacement cost |
| C. | Historical cost |
| D. | Carrying cost |
| Answer» D. Carrying cost | |
| 1225. |
Due to retrospective effect on revision of salary of employees, the arrears of salaryrelating to past years, payable in current year is |
| A. | Prior - period item |
| B. | Extra - ordinary item |
| C. | Ordinary item requiring separate disclosure |
| D. | Contingent item |
| Answer» D. Contingent item | |
| 1226. |
X Ltd., purchased goods for ` 5 lakh and sold 9/10th of the value of goods for ` 6 lakh. Net expenses during the year were ` 25, 000. The company reported its net profit as ` 75,000. Which of the following concept is violated by the company? |
| A. | Realization |
| B. | Conservation |
| C. | Matching |
| D. | Accrual |
| Answer» D. Accrual | |
| 1227. |
Assets are usually valued under which basis? |
| A. | Replacement cost |
| B. | Historical cost |
| C. | Net realizable value |
| D. | none |
| Answer» C. Net realizable value | |
| 1228. |
Which of these is an appropriation of profit — |
| A. | Provision for payment of bonus ; |
| B. | Provision for depreciation ; |
| C. | Provision for dividend ; |
| D. | Provision for doubtful debts |
| Answer» D. Provision for doubtful debts | |
| 1229. |
Under which of the following concepts are shareholders treated as creditors for the amount they paidon the shares they subscribed to? |
| A. | Cost Concept |
| B. | Duality Concept |
| C. | Business Entity Concept |
| D. | Since the shareholders own the business, they are not treated as creditors |
| Answer» C. Business Entity Concept | |
| 1230. |
Which of the following item will be taken in the surplus statement |
| A. | Provision for taxation |
| B. | Transfer to sinking fund |
| C. | Contribution to PF |
| D. | Preliminary expenses written off |
| Answer» E. | |
| 1231. |
Mines quarries oilfields and forest are example of |
| A. | Fixed assets. |
| B. | Current assets. |
| C. | Wasting assets. |
| D. | Intangible assets. |
| Answer» D. Intangible assets. | |
| 1232. |
Which of the following would not appear in a limited company’s surplus/Deficitstatement |
| A. | Transfer to revaluation reserve |
| B. | Provision for taxation |
| C. | Interim dividends |
| D. | Transfer to general reserve |
| Answer» C. Interim dividends | |
| 1233. |
Capital Profit arises from which of the following? |
| A. | Profit prior to incorporation; |
| B. | Premium received on issue of shares; |
| C. | Profit made on re-issue of forfeited shares; |
| D. | All of the above. |
| Answer» E. | |
| 1234. |
The Income and Expenditure Account includes all revenue expenses and incomeirrespective of its cash flowSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 1235. |
…… is a secret reserve usually created to provide for the loss by way of fluctuation in the value of investment |
| A. | Investment Fluctuation Reserve ; |
| B. | Foreign Exchange Fluctuation Fund ; |
| C. | General Reserve ; |
| D. | Capital Reserve |
| Answer» B. Foreign Exchange Fluctuation Fund ; | |
| 1236. |
In cashbooks “C” means |
| A. | Cash |
| B. | Column |
| C. | Credit |
| D. | Contra |
| Answer» E. | |
| 1237. |
Early payment of a Bill of Exchange is known as — |
| A. | Retirement ; |
| B. | Renewal ; |
| C. | Discount ; |
| D. | Endorsement |
| Answer» B. Renewal ; | |
| 1238. |
The Accounting Standards are issued for the purpose of — |
| A. | For improving the reliability of financial statements |
| B. | Harmonizing accounting policies |
| C. | Elimination of non-comparability between financial statements |
| D. | All the three |
| Answer» E. | |
| 1239. |
The Bank Reconciliation Statement is prepared |
| A. | To rectify the mistakes in the Cash Book |
| B. | To arrive at the Bank Balance |
| C. | To arrive at the Cash Balance |
| D. | To bring out the reasons for the difference between the Balance as per Cash Book and the |
| Answer» E. | |
| 1240. |
Accounting records transactions in term of |
| A. | Commodity units |
| B. | Production units |
| C. | Monetary units |
| D. | Expense units |
| Answer» D. Expense units | |
| 1241. |
Recording of transaction in the journal is called |
| A. | Journalizing |
| B. | Posting |
| C. | Recordin |
| Answer» B. Posting | |
| 1242. |
Closing stock is generally 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. | |
| 1243. |
Tax deducted at source appears in the Balance Sheet |
| A. | On the assets side under current assets |
| B. | On the assets side under loans and advances |
| C. | On the liabilities side under current liabilities |
| D. | On the liabilities side under provisions |
| Answer» D. On the liabilities side under provisions | |
| 1244. |
Name the book in which, entries are recorded on the basis of credit notes issued. |
| A. | Sales Book |
| B. | Purchase Book |
| C. | Sales Return Book |
| D. | Purchase Return Book |
| Answer» D. Purchase Return Book | |
| 1245. |
Incomplete records are maintained usually by a |
| A. | company |
| B. | government |
| C. | sole trader |
| D. | partnership firm |
| Answer» D. partnership firm | |
| 1246. |
Consider the following data pertaining to a company for the year 2011-2012 : Opening balance of sundry debtors ` 40,000; Credit sales `4,30,000; Cash sales ` 20,000; Cash collected from debtors `4,00,000; Closing balance of sundry debtors ` 50,000 The bad debts of the company during the year are |
| A. | 40,000 ; |
| B. | 35,000 ; |
| C. | 30,000 ; |
| D. | 20,000 |
| Answer» E. | |
| 1247. |
Single entry system of book – keeping is generally followed by: |
| A. | Small business |
| B. | Non – trading |
| C. | Large business |
| D. | None |
| Answer» B. Non – trading | |
| 1248. |
An office equipment is purchased on 1.1.12 for `1,10,000 having working life of 4 years at the end of which it is expected to have a scrap value of `10,000. Find the difference in depreciation as per Sum of years digit methods and reducing balance method (25% WDV) for the year ending on 31st December 12 |
| A. | 25,000 ; |
| B. | 40,000 ; |
| C. | 15,000 ; |
| D. | 10,000 |
| Answer» D. 10,000 | |
| 1249. |
These reserves are created out of capital profits: |
| A. | Specific Reserves |
| B. | General Reserves |
| C. | Capital Reserves |
| D. | none |
| Answer» D. none | |
| 1250. |
The balance sheet of the debentures sinking fund after redemption of debentures is credited at the end of the accounting period to: |
| A. | Profit and Loss Account |
| B. | General Reserve |
| C. | Debentures Account |
| D. | Profit and Loss Appropriation Account |
| Answer» C. Debentures Account | |