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.
| 1351. |
Single Entry system has effect: |
| A. | One effect |
| B. | Tow effect |
| C. | Three effect |
| D. | None of the above |
| Answer» B. Tow effect | |
| 1352. |
General rules that are used as a guide in accounting and as a basis of accounting practices are called: |
| A. | Generally Accepted Accounting Practices |
| B. | Basic Accounting Conventions |
| C. | Accounting and Financing Principles |
| D. | Accounting Principles |
| Answer» B. Basic Accounting Conventions | |
| 1353. |
Which of the following is not a sub-field of accounting? |
| A. | Management Accounting |
| B. | Cost Accounting |
| C. | Financial Accounting |
| D. | Book-keeping |
| Answer» E. | |
| 1354. |
Credit note is sent by |
| A. | Seller |
| B. | Customer |
| C. | Buyer |
| D. | Borrower |
| Answer» B. Customer | |
| 1355. |
The liabilities and assets respectively are rs 87000 and rs 92000.amount of difference will be |
| A. | creditors |
| B. | debentures |
| C. | capital |
| D. | none of these |
| Answer» E. | |
| 1356. |
Joint Venture is a —— |
| A. | Personal A/c ; |
| B. | Nominal A/c ; |
| C. | Real A/c ; |
| D. | Memorandum A/c |
| Answer» C. Real A/c ; | |
| 1357. |
Under single entry system , drawings is _____ to know gross profit |
| A. | Added |
| B. | Deducted |
| C. | Added and deducted |
| D. | None of these |
| Answer» B. Deducted | |
| 1358. |
All ________ expenses are recorded in the trading account |
| A. | Indirect |
| B. | Direct |
| C. | Direct and indirect |
| D. | None of these |
| Answer» E. | |
| 1359. |
Receipts and payment account is a summary of ______ |
| A. | Income and expenditure |
| B. | Profit and loss |
| C. | Cashbook |
| D. | Balance sheet |
| Answer» D. Balance sheet | |
| 1360. |
Provision for bad debt is made as per the |
| A. | Entity Concept |
| B. | Conservatism Concept |
| C. | Cost Concept |
| D. | Going Concern Concept |
| Answer» C. Cost Concept | |
| 1361. |
Which of the following is not a feature of Trial Balance |
| A. | It is a list of debit and credit balances which are extracted from various ledger accounts; |
| B. | It does not prove arithmetical accuracy which can be determined by audit; |
| C. | It is not an account. It is only a statement of account; |
| D. | All the transactions are primarily recorded in this book, hence it is the primary book of entry. |
| Answer» E. | |
| 1362. |
Donation of Rs 1000 is |
| A. | Income |
| B. | Capital |
| C. | Liability |
| D. | Asset |
| Answer» B. Capital | |
| 1363. |
Which of the following is a function of journal: |
| A. | Analytical Function |
| B. | Recording Function |
| C. | Historical Function |
| D. | All of the above |
| Answer» E. | |
| 1364. |
Share Application Account is in the nature of: |
| A. | Real Account |
| B. | Personal Account |
| C. | Nominal Account |
| D. | None of the above |
| Answer» C. Nominal Account | |
| 1365. |
___________ is not a tangible asset |
| A. | Goodwill |
| B. | Land |
| C. | Closing stoc |
| Answer» B. Land | |
| 1366. |
As per Articles of Association of the Companies Act 2013, a company has to pay interest on calls in advance at the rate of: |
| A. | 5% |
| B. | 10% |
| C. | 20% |
| D. | 12% |
| Answer» E. | |
| 1367. |
In the hire purchase system interest charged by vendor is calculated on the basis of |
| A. | Outstanding cash Price |
| B. | Hire purchase Price |
| C. | Installment amount |
| D. | None of the above |
| Answer» B. Hire purchase Price | |
| 1368. |
In an account if debit side > credit side, the balance is known as the: |
| A. | Negative Balance ; |
| B. | Debit balance ; |
| C. | Positive Balance ; |
| D. | Credit balance |
| Answer» C. Positive Balance ; | |
| 1369. |
The Periodical total of the Sales Return Book is posted to the |
| A. | Debit of Sales Account |
| B. | Debit of Sales Return Account |
| C. | Credit of Sales Return Account |
| D. | Debit of Debtors Account |
| Answer» C. Credit of Sales Return Account | |
| 1370. |
SBI A/c is a – |
| A. | Nominal A/c ; |
| B. | Artificial Personal A/c ; |
| C. | Representative Personal A/c ; |
| D. | None |
| Answer» C. Representative Personal A/c ; | |
| 1371. |
A business firm is separate and distinct from its owners is the assumption under which of the following accounting concepts: |
| A. | Business Entity |
| B. | Going Concern Entity |
| C. | Money Measuring Entity |
| D. | Accounting Period concept |
| Answer» B. Going Concern Entity | |
| 1372. |
The need of codification isSol: |
| A. | Easy to process data |
| B. | Keeping proper records |
| C. | The generation of block codes |
| D. | The encryption of data |
| Answer» E. | |
| 1373. |
Two primary qualitative characteristics of Financial Statements are — |
| A. | Understandability and Materiality ; |
| B. | Relevance and Reliability ; |
| C. | Relevance and Understandability ; |
| D. | Materiality and Reliability |
| Answer» C. Relevance and Understandability ; | |
| 1374. |
Subscription received in advance during the current year is:Sol: |
| A. | An income |
| B. | An Asset |
| C. | A liability |
| D. | None of these |
| Answer» D. None of these | |
| 1375. |
In case of a Club, the excess of expenditure over income is called as |
| A. | Surplus |
| B. | Deficit |
| C. | Capital Fund |
| D. | Investment in Fixed Assets |
| Answer» C. Capital Fund | |
| 1376. |
From the following details estimate the capital as on 1.1.2012, Capital as on 31.12.2012 ` 2,40,000,drawing ` 20,000, Profit during the year ` 25,000 |
| A. | 2,35,000 ; |
| B. | 2,25,000 ; |
| C. | 2,20,000 ; |
| D. | 2,00,000 |
| Answer» B. 2,25,000 ; | |
| 1377. |
These reserves are created out of revenue profits of the business for a specific purpose: |
| A. | Specific Reserves |
| B. | General Reserves |
| C. | Capital Reserves |
| D. | none |
| Answer» B. General Reserves | |
| 1378. |
The amount salary paid to Suresh should be debited to |
| A. | The account of Suresh |
| B. | Salaries Account |
| C. | Cash Account |
| D. | none |
| Answer» C. Cash Account | |
| 1379. |
The excess price received on the par value of the shares should be credited to |
| A. | Calls in advance |
| B. | Reserve capital account |
| C. | Security premium reserve account |
| D. | None of these |
| Answer» D. None of these | |
| 1380. |
An exclusive right given to an entity of individual or business firm to manufacture or sellan invention is known asSol: |
| A. | Copyright |
| B. | Trade right |
| C. | Patent right |
| D. | all |
| Answer» D. all | |
| 1381. |
Entrance fees, unless otherwise stated, is treated as:Sol: |
| A. | A Capital Receipt |
| B. | A Revenue Income |
| C. | A liability |
| D. | None of these |
| Answer» C. A liability | |
| 1382. |
XYZ send goods worth ` 1,00,000 to Y on consignment basis at 20% above the cost price. The goods are sold by the consignee on a mark of 15% on invoice price. Find the total mark up % over the cost price of the goods — |
| A. | 30% ; |
| B. | 38% ; |
| C. | 35% ; |
| D. | 25% |
| Answer» C. 35% ; | |
| 1383. |
A Single entry system it: |
| A. | Complete and scientific system |
| B. | Incomplete and unscientific |
| C. | Incomplete and scientific |
| D. | Complete and unscientific |
| Answer» C. Incomplete and scientific | |
| 1384. |
Depreciation is charged on___ |
| A. | Continuous basis |
| B. | Temporary basis |
| C. | Daily basis |
| D. | Monthly basis |
| Answer» B. Temporary basis | |
| 1385. |
Trial Balance is prepared to…. |
| A. | Check true and fair view of Balance Sheet ; |
| B. | To check arithmetic accuracy of A/cs ; |
| C. | To ensure legal compliance ; |
| D. | To ensure compliance to IFRS |
| Answer» C. To ensure legal compliance ; | |
| 1386. |
Debtors Ledger Adjustment Account is opened in the |
| A. | Debtors Ledger |
| B. | Creditors Ledger |
| C. | General Ledger |
| D. | Both Creditors Ledger and General Ledger |
| Answer» D. Both Creditors Ledger and General Ledger | |
| 1387. |
A firm earns ₹1,00,000. The normal rate of return is 10%. The assets of the companyamounted to ₹11,00,000 and liabilities to ₹1,00,000. Value of goodwill by the capitalization of average actual profit will beSol: |
| A. | 2,00,000 |
| B. | 10000 |
| C. | 5000 |
| D. | 100000 |
| Answer» E. | |
| 1388. |
Journal entries passed to correct the errors are called |
| A. | Closing entry |
| B. | Opening entries |
| C. | Adjusting entry |
| D. | Rectifying entry |
| Answer» E. | |
| 1389. |
From the following details what will be the partners‘ commission? Net profit before charging partners‘ commission `65,000. Partners‘ commission @ 11% after charging such commission |
| A. | 6441 ; |
| B. | 5431 ; |
| C. | 7654 ; |
| D. | 9876 |
| Answer» B. 5431 ; | |
| 1390. |
Trade discount is given to |
| A. | Boost sales ; |
| B. | Make payment early before due date ; |
| C. | To evade tax ; |
| D. | All the three |
| Answer» B. Make payment early before due date ; | |
| 1391. |
Which of the following is/ are the basic features of a Joint Venture |
| A. | The profit or loss on joint venture is shared between the co-venturers in the agreed ratio |
| B. | The co-venturers may or may not contribute initial capital |
| C. | The JV is dissolved once the purpose of the business is over |
| D. | All of the above |
| Answer» E. | |
| 1392. |
Which of these is not an essential feature of a bill of exchange |
| A. | Unconditional ; |
| B. | Certainty of amount ; |
| C. | In writing; |
| D. | Amount to be paid in foreign currency |
| Answer» E. | |
| 1393. |
Which of the following is not one of the five areas into which social accounting can be divided? |
| A. | Environmental auditing |
| B. | Managerial social accounting in profit oriented organisations |
| C. | National income social accounting |
| D. | Social auditing |
| Answer» B. Managerial social accounting in profit oriented organisations | |
| 1394. |
________ is equal to estimated selling price less the estimated costs of completionand the estimated costs necessary to make the sale. |
| A. | Net Realizable value |
| B. | Cost of Conversion |
| C. | Cost of Purchase |
| D. | None of the above |
| Answer» B. Cost of Conversion | |
| 1395. |
If Average Profit of a certain firm for last five years is Rs5,00,000 , Normal profit is Rs3,50,000/-. What would be the Value of Goodwill at 3years purchase of super profit |
| A. | Rs 8,00,000 |
| B. | Rs 6,00,000 |
| C. | Rs 4,50,000 |
| D. | all |
| Answer» D. all | |
| 1396. |
Bank shows the provision for income tax under the head |
| A. | Contingency Accounts; |
| B. | Other liabilities and provisions; |
| C. | Contingent liabilities; |
| D. | Borrowings. |
| Answer» C. Contingent liabilities; | |
| 1397. |
The policy of anticipate no profit and provide for all possible losses is followed due to |
| A. | Conservation concept |
| B. | Consistency concept |
| C. | Cost concep |
| Answer» C. Cost concep | |
| 1398. |
The amount of goodwill is paid by new partner :Sol: |
| A. | for the payment of capital |
| B. | for sharing the profit |
| C. | for purchase of assets |
| D. | None of these |
| Answer» C. for purchase of assets | |
| 1399. |
An increase in one liability may lead to |
| A. | Increase in another asset ; |
| B. | Decrease in liability ; |
| C. | Both (a) and (b) ; |
| D. | Either (a) or (b) |
| Answer» E. | |
| 1400. |
Purchase ledger contains the accounts of |
| A. | Debtors |
| B. | Creditors |
| C. | Total purchase |
| D. | All the above |
| Answer» C. Total purchase | |