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.
| 301. |
Loss on sale of machinery should be written off against |
| A. | Security premium |
| B. | sales account |
| C. | depreciation fund account |
| D. | none of these |
| Answer» D. none of these | |
| 302. |
Depletion is a process of |
| A. | Valuation |
| B. | allocation |
| C. | both valuation and allocation |
| D. | none of these. |
| Answer» C. both valuation and allocation | |
| 303. |
Depletion method is more suitable for |
| A. | Service industry |
| B. | mining industry |
| C. | intangible assets |
| D. | all of these |
| Answer» C. intangible assets | |
| 304. |
amortization is related to |
| A. | Tangible fixed asset |
| B. | intangible assets |
| C. | any fixed asset |
| D. | none of these. |
| Answer» C. any fixed asset | |
| 305. |
in case of straight line method, the amount of deprecation |
| A. | fluctuate every year, |
| B. | decreases every year |
| C. | increases every year |
| D. | remains same every year |
| Answer» E. | |
| 306. |
the depreciation charged on an asset is debited to |
| A. | asset account |
| B. | depreciation account |
| C. | cash account |
| D. | none of these |
| Answer» C. cash account | |
| 307. |
The closing balance in the creditors account can be ascertained from the |
| A. | Cash account |
| B. | total creditors account |
| C. | closing statement of affairs |
| D. | none of these. |
| Answer» C. closing statement of affairs | |
| 308. |
The amount of opening stock can be ascertained by preparing |
| A. | Memorandum trading account |
| B. | total creditors account |
| C. | total debtors account |
| D. | opening statement of affairs. |
| Answer» B. total creditors account | |
| 309. |
In the case of net worth method of single entry system, the net profit is ascertained by |
| A. | Preparing trading and profit and loss account |
| B. | comparing opening and closing capital |
| C. | preparing |
| D. | none of these |
| Answer» D. none of these | |
| 310. |
Capital at the beginning of the year is ascertained by preparing |
| A. | Cash account |
| B. | opening statement of affairs |
| C. | total creditors account |
| D. | total debtors account. |
| Answer» C. total creditors account | |
| 311. |
Which of the following is not an intangible asset |
| A. | Stock |
| B. | goodwill |
| C. | trade mark |
| D. | patents. |
| Answer» B. goodwill | |
| 312. |
Which of the following is a current liability |
| A. | A five year bank loan |
| B. | workmen compensation fund |
| C. | bank overdraft |
| D. | dividend equalization |
| Answer» D. dividend equalization | |
| 313. |
Which of the following is not a fixed asset |
| A. | Motor cycles |
| B. | furniture |
| C. | inventory |
| D. | free hold property |
| Answer» D. free hold property | |
| 314. |
Interest on drawings is |
| A. | An expenditure for the business |
| B. | an expense for the business |
| C. | a gain for the business |
| D. | a loss for the business |
| Answer» D. a loss for the business | |
| 315. |
Income received in advance is |
| A. | An income |
| B. | a liability |
| C. | an asset |
| D. | a loss |
| Answer» C. an asset | |
| 316. |
Out Of The following, Direct Expense Is |
| A. | Salaries |
| B. | carriage outward |
| C. | rent of office building |
| D. | carriage inward |
| Answer» E. | |
| 317. |
The proceeds of assets not specifically pledged & nthe surplus of the assets specifically pledged is first available for_________________ |
| A. | legal charges, liquidators remuneration & expenses |
| B. | unsecured creditors |
| C. | preferential creditors |
| D. | preferential shareholders |
| Answer» B. unsecured creditors | |
| 318. |
rights/ Duties of partners are governed by_______________ |
| A. | article of association |
| B. | llp agreement |
| C. | partnership deed |
| D. | byelaws |
| Answer» C. partnership deed | |
| 319. |
'Pooling of interest' is a method of_____________________ |
| A. | accounting of amalgamtion |
| B. | charging depreciation |
| C. | account of absorption |
| D. | calculation of purchase consideration |
| Answer» B. charging depreciation | |
| 320. |
The Balance in exchange difference on transaction of export sale is transferred to _________________ |
| A. | trading a/c |
| B. | debtors |
| C. | sales a/c |
| D. | profit & loss a/c |
| Answer» E. | |
| 321. |
If a part of the issue of share or debenrues is underwritten, it is termed as__________________- |
| A. | firm underwriting |
| B. | complete underwriting |
| C. | sole underwriting |
| D. | partial underwriting |
| Answer» E. | |
| 322. |
If the remuneration to liquidator is payable as a percentage of collection_______________ |
| A. | exclude opening cash & bank balance |
| B. | exclude opening cash & bank balance |
| C. | includes opening cash & bank balance |
| D. | exclude both opening & closing cash & bank balance |
| Answer» B. exclude opening cash & bank balance | |
| 323. |
A Limited Liability Partnership has ________ |
| A. | no perpetual succession |
| B. | perpetual succession |
| C. | no specific period |
| D. | specified period of life |
| Answer» C. no specific period | |
| 324. |
On Amalgamation, Profit & Loss A/c (Dr.) balance of the vendor company is closed by___________ |
| A. | debit to realisation |
| B. | debit to profit & loss a/c |
| C. | debit to equity shareholders a/c |
| D. | credit to equity shareholders a/c |
| Answer» D. credit to equity shareholders a/c | |
| 325. |
The depreciation of Fixed Assets is converted at rate________________ |
| A. | date of purchase |
| B. | balance sheet |
| C. | average during year |
| D. | on the date of balance sheet |
| Answer» B. balance sheet | |
| 326. |
If the whole of the issue of shares or debentures is underwritten it is known as_______________________ |
| A. | frim underwriting |
| B. | partial underwriting |
| C. | sole underwriting |
| D. | complete or fully underwriting |
| Answer» E. | |
| 327. |
Accrued Holiday remuneration becoming payable to any workman is treated as ________________________ |
| A. | unsecured creditors |
| B. | over-riding preferential creditors |
| C. | preferential creditors |
| D. | secured creditors |
| Answer» C. preferential creditors | |
| 328. |
LLP can be dissolved by the order of____________ |
| A. | sessions court |
| B. | district court |
| C. | nclt |
| D. | high court |
| Answer» D. high court | |
| 329. |
According to AS 14, Transferor company means the company__________ |
| A. | which is amalgamated into another company |
| B. | which is any one old company into new comapny |
| C. | which is newly formed |
| D. | into which a company is amalgamated |
| Answer» B. which is any one old company into new comapny | |
| 330. |
M LTD. Issued share at a face value of Rs. 100 with a premium of Rs.20 per share. The underwrting commission will be calculated on __________ |
| A. | rs.120 |
| B. | rs.80 |
| C. | rs.90 |
| D. | rs.100 |
| Answer» B. rs.80 | |
| 331. |
The Balance in receivable as on the date of Balance sheet is converted at rate______________ |
| A. | on the date of balance sheet |
| B. | on the date of subsequent |
| C. | on the date of sale goods |
| D. | on the date of first recovery |
| Answer» B. on the date of subsequent | |
| 332. |
Amount of retirement benefits of employees exceeding Rs.20,000 per employees is treated as____________ |
| A. | over-riding preferential creditors |
| B. | preferential creditors |
| C. | unsecured creditors |
| D. | secured creditors |
| Answer» C. unsecured creditors | |
| 333. |
Certificate of incorporation of LLP is issued by_______________ |
| A. | registrar of co-operative societies |
| B. | registrar of companies |
| C. | registrar of universities |
| D. | registrar of firms |
| Answer» C. registrar of universities | |
| 334. |
Accounting for Absorption is governed by______________ |
| A. | as 14 |
| B. | as 11 |
| C. | as 13 |
| D. | as 1 |
| Answer» B. as 11 | |
| 335. |
Conversion of currency is covered in AS______ |
| A. | 11 |
| B. | 9 |
| C. | 14 |
| D. | 13 |
| Answer» B. 9 | |
| 336. |
A feature which is common in all cases or merger__________________- |
| A. | purchase of one comapany by another company |
| B. | liquidation of at least two companies |
| C. | liquidation at least one existing company & formation of another company |
| D. | formation of at least one new company |
| Answer» B. liquidation of at least two companies | |
| 337. |
In the case of members voluntary winding up liquidator is appointed by _____________ |
| A. | the company in general meeting |
| B. | the registrar of companies |
| C. | the central government |
| D. | the board of directors |
| Answer» B. the registrar of companies | |
| 338. |
R LTD. Issued a debenture of Rs.100 each at Rs.90. The underwriting commission will be paid on___________ |
| A. | rs.90 |
| B. | rs.95 |
| C. | rs.100 |
| D. | rs.105 |
| Answer» B. rs.95 | |
| 339. |
Accounts of LLP are to be audited by _____________ |
| A. | cost accountant |
| B. | master of commerce |
| C. | chartered accountant |
| D. | company secretary |
| Answer» D. company secretary | |
| 340. |
Non-Monetary Items which are carried in terms of historical cost determinated in a foreign currency should be reporte using exchange rate at the date of _____ |
| A. | balance sheet |
| B. | settlement |
| C. | transaction |
| D. | profit & loss a/c |
| Answer» D. profit & loss a/c | |
| 341. |
The underwriting commission in the case of debentures as per Companies Act, should not exceed_________ |
| A. | 3% of the price at which the debentures are issued |
| B. | 2.5% of the price at which debenture are issued |
| C. | 5% of the price at which debentures are issued |
| D. | 4% of the price at which debentures are issued |
| Answer» C. 5% of the price at which debentures are issued | |
| 342. |
25. The proceeds of assets not specifically pledged & nthe surplus of the assets specifically pledged is first available for_________________ |
| A. | preferential shareholders |
| B. | legal charges, liquidators remuneration & expenses |
| C. | unsecured creditors |
| D. | preferential creditors |
| Answer» C. unsecured creditors | |
| 343. |
24. Fictitious Assets are to be transferred to ___________________ |
| A. | internal reconstruction |
| B. | share capital |
| C. | securities premium |
| D. | capital reserve |
| Answer» B. share capital | |
| 344. |
23. 'Pooling of interest' is a method of_____________________ |
| A. | charging depreciation |
| B. | account of absorption |
| C. | calculation of purchase consideration |
| D. | accounting of amalgamtion |
| Answer» E. | |
| 345. |
22. In case of Buy Back at a discount the amount of discount is transferred to _________________ |
| A. | capital reserve a/c |
| B. | general reserve a/c |
| C. | capital redemption reserve a/c |
| D. | securities premium a/c |
| Answer» B. general reserve a/c | |
| 346. |
21. If a part of the issue of share or debenrues is underwritten, it is termed as__________________- |
| A. | sole underwriting |
| B. | firm underwriting |
| C. | complete underwriting |
| D. | partial underwriting |
| Answer» E. | |
| 347. |
20. If the remuneration to liquidator is payable as a percentage of collection_______________ |
| A. | exclude opening cash & bank balance |
| B. | exclude opening cash & bank balance |
| C. | includes opening cash & bank balance |
| D. | exclude both opening & closing cash & bank balance |
| Answer» B. exclude opening cash & bank balance | |
| 348. |
19. The existing 1,000 shares of Rs. 100 each are altered to 10,000 shares of Rs.10 each. This is known as__________________ |
| A. | sub-division |
| B. | surrender |
| C. | conversion in stock |
| D. | consolidation |
| Answer» B. surrender | |
| 349. |
18. On Amalgamation, Profit & Loss A/c (Dr.) balance of the vendor company is closed by___________ |
| A. | debit to profit & loss a/c |
| B. | debit to equity shareholders a/c |
| C. | credit to equity shareholders a/c |
| D. | debit to realisation |
| Answer» C. credit to equity shareholders a/c | |
| 350. |
17. Buy Back must expenses may be treated as_________________ |
| A. | deffered revenue expenses |
| B. | revenue expenses |
| C. | revenue or deffered revenue expenses |
| D. | capital expenses |
| Answer» D. capital expenses | |