MCQOPTIONS
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MCQOPTIONS
This section includes 69 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
All the transactions measurable in the terms of money are recorded in accounts is according to |
| A. | business entity concept |
| B. | going concern concept |
| C. | money measurement concept |
| D. | accounting period concept |
| Answer» D. accounting period concept | |
| 2. |
While putting the value or price of an entity in financial records the lowest price is recorded not the current price or current market value. This is known as |
| A. | business entity concept |
| B. | conservatism |
| C. | cost concept |
| D. | money measurement concept |
| Answer» C. cost concept | |
| 3. |
In income measurement & recognisation of assets & liabilities which of the following concepts goes together? |
| A. | periodicity, accural, matching |
| B. | cost, accural, matching |
| C. | going concern, cost, realization |
| D. | going concern, periodicity, reliability |
| Answer» B. cost, accural, matching | |
| 4. |
Which accounting concept specifies the practice of crediting closing stock to the trading account? |
| A. | cost |
| B. | realisation |
| C. | going concern |
| D. | matching |
| Answer» E. | |
| 5. |
The proprietor of the business is treated as creditor for the capital introduced by him due to_____ concept. |
| A. | money measurement |
| B. | cost |
| C. | entity |
| D. | dual aspect |
| Answer» D. dual aspect | |
| 6. |
A partners has to pay interest on drawings what is the entry in the personal A/c of the partner? |
| A. | credit partners capital a/c |
| B. | credit partners current a/c |
| C. | debit the partners current a/c |
| D. | debit partners current a/c |
| Answer» E. | |
| 7. |
Goodwill is valued as two years purchase of the average profits of three previous years are Rs. 15000, the value of goodwill be: |
| A. | rs. 15000 |
| B. | rs. 30000 |
| C. | rs. 20000 |
| D. | rs. 50000 |
| Answer» C. rs. 20000 | |
| 8. |
Value of goodwill agreed upon Rs. 30000 on C, S admission and allowing him share of total profit Goodwill is brought in cash, the amount of goodwill be as: |
| A. | rs. 30000 |
| B. | rs. 7500 |
| C. | rs. 150000 |
| D. | rs. 120000 |
| Answer» C. rs. 150000 | |
| 9. |
Goodwill of the firm is valued Rs. 30000. C an incoming partner purchase share of total profit Goodwill be raised in the books. |
| A. | rs. 30000 |
| B. | rs. 7500 |
| C. | rs. 120000 |
| D. | rs. 7000 |
| Answer» B. rs. 7500 | |
| 10. |
An incoming partner pays his share of goodwill in cash, and profit sharing ration of old partner is changed, Goodwill be distributed among old partners: |
| A. | as their old profit ratio |
| B. | according to new ration |
| C. | according to sacrifice ratio |
| D. | none of these |
| Answer» D. none of these | |
| 11. |
If the remaining partner want to continue the business, after the retirement of a partner, a new partnership agreement: |
| A. | necessary |
| B. | not necessary |
| C. | optioned |
| D. | none of above |
| Answer» B. not necessary | |
| 12. |
The loss or gain an account of revaluation at the time of retirement of a partner is shared by: |
| A. | remaining partners |
| B. | retiring partner |
| C. | all partners |
| D. | none of above |
| Answer» D. none of above | |
| 13. |
On the retirement of a partner any reserve being should be transferred to the capital account of: |
| A. | all partners in the old profit sharing ratio |
| B. | remaining partners in the new profit sharing ratio |
| C. | neither the retiring partner, nor the remaining partner |
| D. | none of above |
| Answer» B. remaining partners in the new profit sharing ratio | |
| 14. |
If the firm stops making repayments and the goods or assets are taken away from them as a result, this is known as: |
| A. | cancellation |
| B. | forfeiture |
| C. | repossession |
| D. | annulment |
| Answer» D. annulment | |
| 15. |
When an asset is acquired on hire purchase system, the asset account is debited with _______ of the assets in the books of the hire purchaser. |
| A. | hire purchase price |
| B. | cash price |
| C. | instalment price |
| D. | none of these |
| Answer» C. instalment price | |
| 16. |
On the balance sheet of a company, the value of the asset bought through hire purchase will appear as: |
| A. | cost less depreciation to date less amount owing on hire purchase less interest owing |
| B. | cost less amounts owing on hire purchase |
| C. | cost less depreciation to date less amount owing on hire purchase |
| D. | cost less depreciation to date |
| Answer» E. | |
| 17. |
The interest charged on the hire purchase should appear in the profit and loss account in what manner? |
| A. | the total interest levied should be divided equally over the total period the for purchase agreement |
| B. | the interest charged in that period only should be included |
| C. | interest should instead be capitalised on the balance sheet |
| D. | interest should be apportioned in proportion to the repayment totals |
| Answer» C. interest should instead be capitalised on the balance sheet | |
| 18. |
Which of the following does not give a difference between a hire purchase and a normal purchase? |
| A. | timing of payment for asset |
| B. | legal ownership of asset |
| C. | quality of asset purchased |
| D. | total cost of asset. |
| Answer» D. total cost of asset. | |
| 19. |
The act of buying an asset without having to make full payment in the immediate future is known as: |
| A. | hire purchase |
| B. | finance lease |
| C. | operating lease |
| D. | sale and leaseback |
| Answer» B. finance lease | |
| 20. |
If the minimum subscription is not received by the company, then the refund of application money should be made within ______ days. |
| A. | 7 |
| B. | 9 |
| C. | 10 |
| D. | 22 |
| Answer» D. 22 | |
| 21. |
Which of the following branches, taking into consideration the scope of authority and responsibility, prepares its own independent final accounts? |
| A. | independent branch |
| B. | foreign branch |
| C. | dependent branch |
| D. | independent and foreign branch both |
| Answer» B. foreign branch | |
| 22. |
Discount on issue of debentures is shown under the heading in a company's Balance Sheet _______ |
| A. | fixed assets |
| B. | loans and advances |
| C. | investment |
| D. | miscellaneous expenditure |
| Answer» E. | |
| 23. |
When shares are forfeited, the share capital account is debited with ________ and the share forfeiture account is credited with __________. |
| A. | paid-up capital of shares forfeited; called up capital of shares forfeited |
| B. | called up capital of shares forfeited; calls in arrear of shares forfeited |
| C. | called up capital of shares forfeited; amount received on shares forfeited |
| D. | none of these |
| Answer» D. none of these | |
| 24. |
As per the SEBI guidelines, on issue of shares, the application money should not be less than |
| A. | 2.5% of the nominal value of shares |
| B. | 2.5% of the issue price of shares |
| C. | 25% of the issue price of shares |
| D. | 25% of the nominal value of shares |
| Answer» D. 25% of the nominal value of shares | |
| 25. |
Which of the following reserves which can be utilised to make partly paid shares into fully paid up: |
| A. | securities premium |
| B. | capital redemption reserve |
| C. | surplus arising from a change in the method of charging depreciation |
| D. | capital reserve from sale of fixed assets in cash |
| Answer» E. | |
| 26. |
Which of the following can be utilized for the redemption of preference shares of a company out of profit: |
| A. | shares forfeited account |
| B. | development rebate reserve account |
| C. | capital redemption reserve account |
| D. | dividend equalization reserve |
| Answer» E. | |
| 27. |
Which of the following provide frame work and accounting policies so that the financial statements of different enterprises become comparable. |
| A. | business standards |
| B. | accounting standards |
| C. | market standards |
| D. | none |
| Answer» C. market standards | |
| 28. |
The comparison of financial statement of one year with that of another is possible only when _______ concept is followed |
| A. | going concern |
| B. | accrual |
| C. | consistency |
| D. | materiality |
| Answer» D. materiality | |
| 29. |
Which of the following cannot be used for the purpose of creation of capital redemption reserve account? |
| A. | profit and loss account (credit balance) |
| B. | general reserve account |
| C. | dividend equalization reserve account |
| D. | unclaimed dividends account |
| Answer» E. | |
| 30. |
Which of the following cannot be utilized for the redemption of preference shares of a company |
| A. | securities premium on fresh issue of shares |
| B. | general reserve |
| C. | profit and loss account |
| D. | dividend equalization reserve |
| Answer» B. general reserve | |
| 31. |
According to sec. 100(1)(c) of the companies act, a company can pay back share capital which is in excess of need if: |
| A. | authorized by articles |
| B. | confirmation of the court |
| C. | special resolution is passed to that effect |
| D. | all of the above |
| Answer» E. | |
| 32. |
HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profit on cost comes to ______ |
| A. | 15% |
| B. | 25% |
| C. | 33.33% |
| D. | 20% |
| Answer» C. 33.33% | |
| 33. |
H.O. sent goods to branch at invoice price 50% plus on original price. How many percentage of profit will be on Invoice price? |
| A. | 20% |
| B. | 25% |
| C. | 33.33% |
| D. | 16.67% |
| Answer» D. 16.67% | |
| 34. |
For finding the amount of sundry expenses paid by the branch, the following a/c should be prepared. |
| A. | computer a/c |
| B. | creditors |
| C. | petty cash a/c |
| D. | debtors |
| Answer» D. debtors | |
| 35. |
Maximum buy back limit in any year is ______ of total paid up equity capital and free reserves. |
| A. | 25% |
| B. | 10% |
| C. | 20% |
| D. | no limit |
| Answer» B. 10% | |
| 36. |
Small items like, pencils, pens, files, etc. are written off within a year according to ___ concept. |
| A. | materiality |
| B. | consistency |
| C. | conservatism |
| D. | realisation |
| Answer» B. consistency | |
| 37. |
The policy of anticipate no profit and provide for all possible losses arise due to the concept of _____ |
| A. | consistency |
| B. | disclosure |
| C. | conservatism |
| D. | matching |
| Answer» D. matching | |
| 38. |
If the opening balance of petty cash is Rs 1000, closing balance is Rs 500 and the petty cash received from HO is Rs 700, then what will be the amount of sundry expenses _____ |
| A. | rs 1200 |
| B. | rs 800 |
| C. | rs 700 |
| D. | rs 500 |
| Answer» B. rs 800 | |
| 39. |
If the hire vendor may take away all the goods on which there is default of installment it is called____________ |
| A. | repossession |
| B. | partial repossession |
| C. | complete repossession |
| D. | purchase. |
| Answer» D. purchase. | |
| 40. |
Fixed assets are double the current assets and half the capital. The current assets are Rs.3,00,000 and investments are Rs.4,00,000. Then the current liabilities recorded in balance sheet will be |
| A. | 2,00,000 |
| B. | 1,00,000 |
| C. | 3,00,000 |
| D. | 4,00,000 |
| Answer» C. 3,00,000 | |
| 41. |
Any partner who investments in the business but does not take active part in the business is: |
| A. | secret partner |
| B. | sleeping partner |
| C. | active partner |
| D. | nominal partner |
| Answer» C. active partner | |
| 42. |
The hire vendor takes away only a portion of the goods on which there is default of Installments it is called _________ |
| A. | repossession |
| B. | partial repossession |
| C. | complete repossession |
| D. | purchase |
| Answer» C. complete repossession | |
| 43. |
The Market price of good declined than the cost price. Then the concept that plays a key role is ____ |
| A. | materiality |
| B. | going concern concept |
| C. | realization |
| D. | consistency |
| Answer» D. consistency | |
| 44. |
A is drawing Rs. 500 regularly on the 16th of every month, he will have to pay interest in a year on Rs. 6000 for the total period of @ given rate of interest): |
| A. | 5 months |
| B. | 6 months |
| C. | 7 months |
| D. | 12 months |
| Answer» C. 7 months | |
| 45. |
The portion of the authorised capital which can be called-up only on the liquidation of the company is called |
| A. | authorised capital |
| B. | reserve capital |
| C. | issued capital |
| D. | called up capital |
| Answer» C. issued capital | |
| 46. |
In the books of hirer, for interest due at the end of the year hire vendor account will be _______ |
| A. | debited |
| B. | credited |
| C. | rectified |
| D. | reversed |
| Answer» C. rectified | |
| 47. |
Valuation of stock in accounting follows the principle of cost price or ____ whichever is lower. |
| A. | market price |
| B. | average price |
| C. | net realizable value |
| D. | none of these. |
| Answer» D. none of these. | |
| 48. |
Goods are sent to branch at cost plus 20%. If closing stock of the branch is Rs 60,000 at invoice price, Rs ______ will be credited to stock reserve a/c. |
| A. | rs 10000 |
| B. | rs 12000 |
| C. | rs 6000 |
| D. | rs 12600 |
| Answer» B. rs 12000 | |
| 49. |
If the Market value of closing Inventory is less than its cost price, inventory will he shown at ____ |
| A. | marketable value |
| B. | fair market value |
| C. | both |
| D. | none |
| Answer» B. fair market value | |
| 50. |
Section 37 of partnership act provided interest on the amount left by retiring or decreased partner at: |
| A. | 5% |
| B. | 10% |
| C. | 6% |
| D. | bank rate |
| Answer» D. bank rate | |