MCQOPTIONS
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MCQOPTIONS
This section includes 602 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration in Computer Applications (BBA [CA]) knowledge and support exam preparation. Choose a topic below to get started.
| 451. |
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 | |
| 452. |
The balance of which of the following accounts do not disappear, once they are debited/credited to Trading Account. |
| A. | Sales |
| B. | Purchases |
| C. | Inward returns |
| D. | Closing stock |
| Answer» E. | |
| 453. |
Which of the following is not a preferential creditors |
| A. | All sum due to employee from a provident fund, pension fund, gratuity fund or any other fund maintain for welfare of employee. |
| B. | Compensation under workmen s compensation act. |
| C. | Amount due under empoyees state insurance act for 12 months previous to the winding up |
| D. | Amount due to employee undeer amalgamation or reconstruction |
| Answer» E. | |
| 454. |
ABC holds an average inventory of ` 36,000(CP) with an inventory turnover of 5 times. If the firm makes a gross profit of 25% on sales, find the total sales of the company |
| A. | 2,40,000 ; |
| B. | 2,10,000 ; |
| C. | 2,00,000 ; |
| D. | 1,80,000 |
| Answer» B. 2,10,000 ; | |
| 455. |
As per Accounting Standard-3, Cash Flow is classified into: |
| A. | Operating activities and investing activities. |
| B. | Investing activities and financing activities. |
| C. | Operating activities and financing activities. |
| D. | Operating activities, financing activities and investing activities. |
| Answer» E. | |
| 456. |
Every transaction has two aspects i.e., debit and credit, under which of the following accounting principles: |
| A. | Cash Accrual Principle |
| B. | Revenue Accrual Principle |
| C. | Dual Aspect Principle |
| D. | Double Entry Book-keeping System |
| Answer» D. Double Entry Book-keeping System | |
| 457. |
Equity Shareholders giving up their claim to the reserves & accumulated profit amounts to______________ |
| A. | reduction of share capital |
| B. | alteration of share capital |
| C. | compromise/ arrangement |
| D. | variation of shareholders rights |
| Answer» D. variation of shareholders rights | |
| 458. |
Transaction between branches are called__________. |
| A. | Inter branch transactions |
| B. | Branch transaction |
| C. | Internal transaction |
| D. | None of these. |
| Answer» B. Branch transaction | |
| 459. |
Transaction between branches are called |
| A. | Branch transaction |
| B. | Inter branch transaction |
| C. | Internal transaction |
| D. | None of these |
| Answer» C. Internal transaction | |
| 460. |
Amount of Retirement benefits of employees exceeding ` 20,000 per employee is treated as |
| A. | Secured creditor |
| B. | Over-riding preferential creditor |
| C. | Preferential creditor |
| D. | Unsecured creditor |
| Answer» D. Unsecured creditor | |
| 461. |
Branches not keeping full system of accounting is called |
| A. | Independent branches |
| B. | Partial branches |
| C. | Dependent branches |
| D. | None of these |
| Answer» D. None of these | |
| 462. |
In case specific fund is maintained, the expenses exceeding the amount of the fluids, should be recorded on: |
| A. | Liabilities side of the Balance Sheet |
| B. | Debit side the Income and Expenditure Account |
| C. | Credit side of the Income and Expenditure Account |
| D. | Assets side of the Balance Sheet |
| Answer» C. Credit side of the Income and Expenditure Account | |
| 463. |
Anticipate no profits and provide for all possible losses. This is essence of which of the following accounting principles: |
| A. | Materiality Principle |
| B. | Timeliness Principle |
| C. | Consistency Principle |
| D. | Conservatism Principle |
| Answer» E. | |
| 464. |
Which of the following resulted in flow of funds? |
| A. | Payment to Creditors |
| B. | Redemption of Debentures |
| C. | Cash received from Debtors |
| D. | All of the above |
| Answer» C. Cash received from Debtors | |
| 465. |
Which of the following transactions do not result in flow of funds? |
| A. | Raising short term loans |
| B. | Sale of fixed assets |
| C. | Repayment of long term loans |
| D. | Redemption of Debentures |
| Answer» B. Sale of fixed assets | |
| 466. |
Branches are divided into |
| A. | Dependent |
| B. | Independent |
| C. | Foreign |
| D. | All the above |
| Answer» E. | |
| 467. |
Rules of revenue recognition determine that earning process should be either complete or near completion under: |
| A. | Realization Concept |
| B. | Materiality Concept |
| C. | Historical Record Concept |
| D. | Accounting Period Concept |
| Answer» B. Materiality Concept | |
| 468. |
The basic principles of ____ concept is that business is assumed to exist for an indefinite period |
| A. | Going Concern; |
| B. | Business Entity; |
| C. | Money Measurement; |
| D. | None of the above. |
| Answer» B. Business Entity; | |
| 469. |
In which case, liability arises from both open and firm underwriting |
| A. | Partial Underwriter |
| B. | Firm Underwriter |
| C. | Sole Underwriter |
| D. | Sub Underwriter |
| Answer» C. Sole Underwriter | |
| 470. |
In case specific fund is maintained, the expenses exceeding the amount of the funds, should be recorded on: |
| A. | Liabilities side of the Balance Sheet |
| B. | Debit side of the Income and Expenditure Account |
| C. | Credit side of the Income and Expenditure Account |
| D. | Assets side of the Balance Sheet |
| Answer» C. Credit side of the Income and Expenditure Account | |
| 471. |
Which of the following items will affect the flow of funds? |
| A. | A transaction affecting both non current accounts |
| B. | A transaction affecting both current accounts |
| C. | A transaction affecting current and non- current accounts |
| D. | None of the above |
| Answer» D. None of the above | |
| 472. |
The concept that business is assumed to exist for an indefinite period and is not established with the objective of closing down is referred to as |
| A. | Money Measurement concept |
| B. | Going Concern concept |
| C. | Full Disclosure concept |
| D. | Dual Aspect concept |
| Answer» C. Full Disclosure concept | |
| 473. |
Which of the following transactions result in flow of funds? |
| A. | Cash paid to creditors |
| B. | Payment of bills payable |
| C. | Issue of shares |
| D. | Cash collected from debtors |
| Answer» D. Cash collected from debtors | |
| 474. |
Which of the following is a resource owned by the business with the purpose of using it for generating future profits? |
| A. | Loan from Bank |
| B. | Owner's Capital |
| C. | Trade Mark |
| D. | All of the above |
| Answer» D. All of the above | |
| 475. |
Stock and debtors system is generally used when the goods are sent to the branch at |
| A. | Cost price |
| B. | An invoice price |
| C. | Both a and b |
| D. | None of the above |
| Answer» C. Both a and b | |
| 476. |
It is generally assumed that the business will not liquidate in the near foreseeable future because of |
| A. | Periodicity. |
| B. | Materiality. |
| C. | Matching. |
| D. | Going concern. |
| Answer» E. | |
| 477. |
Which one of the following concepts is used as fund in the preparation of funds flow statement? |
| A. | Current Assets |
| B. | Working Capital |
| C. | Cash |
| D. | All financial resources |
| Answer» E. | |
| 478. |
Secured creditors are shown in the statement of affairs under : |
| A. | List A |
| B. | List B |
| C. | List C |
| D. | List D |
| Answer» C. List C | |
| 479. |
Statement of affairs is prepared for ascertaining: |
| A. | Financial position of the business |
| B. | Trading profit or loss |
| C. | Capital of the owner |
| D. | All of the above |
| Answer» C. Capital of the owner | |
| 480. |
__________Account is prepared with a view to ascertain the gross profit of branch. |
| A. | Branch account |
| B. | Branch adjustment a/c |
| C. | Branch expense a/c |
| D. | None of these. |
| Answer» C. Branch expense a/c | |
| 481. |
Under Stock & Debtors system, which account is prepared by H.O to ascertain the Gross Profit earned by the branch: |
| A. | Branch stock A/c |
| B. | Branch Adjustment A/c |
| C. | Branch expenses A/c |
| D. | Branch P&L A/c |
| Answer» C. Branch expenses A/c | |
| 482. |
The business will continue to operate for an indefinitely long period in the future, unless there is a good evidence to the contrary this assumption is related to |
| A. | cost concept |
| B. | dual aspect concept |
| C. | matching concept |
| D. | none of these |
| Answer» E. | |
| 483. |
If there is conversion of private limited company into LLP all the of the company must become partners in the LLP and no one else |
| A. | Shareholders |
| B. | Employees |
| C. | Managers |
| D. | Vendors |
| Answer» B. Employees | |
| 484. |
Surplus Of Amount In Statement Of Affairs Should Be Distributed To |
| A. | Creditors |
| B. | Government |
| C. | Liquidator |
| D. | Equity Share Holders |
| Answer» E. | |
| 485. |
The amount of credit sale is ascertained by : |
| A. | Preparing Total Debtors Account |
| B. | Prepare Trading Account |
| C. | Preparing Statement of affairs |
| D. | None of the above |
| Answer» B. Prepare Trading Account | |
| 486. |
It is a system of finding out the profit made by a head office at a branch by preparing an account called_______. |
| A. | Profit &loss a/c |
| B. | Trading a/c |
| C. | Branch a/c |
| D. | None of these. |
| Answer» D. None of these. | |
| 487. |
Under stock and debtors system, which of the following accounts is prepared with a view to ascertain Gross Profit of the Branch? |
| A. | Branch Adjustment Account |
| B. | Branch Profit and Loss Account |
| C. | Branch Expenses Account |
| D. | Goods Sent to Branch Account |
| Answer» B. Branch Profit and Loss Account | |
| 488. |
Opening capital is obtained by preparing: |
| A. | Debtors account |
| B. | Creditors account |
| C. | Opening statement of affairs |
| D. | Cash account |
| Answer» D. Cash account | |
| 489. |
When closing capital is less than opening capital, it denotes |
| A. | profit |
| B. | loss |
| C. | profit, if there is no introduction of fresh capital |
| D. | no profit-no loss |
| Answer» D. no profit-no loss | |
| 490. |
When closing capital is more than opening capital it means |
| A. | Profit |
| B. | Loss |
| C. | Withdrawal of capital |
| D. | None of these |
| Answer» B. Loss | |
| 491. |
The amount of credit purchases can be ascertained by preparing a |
| A. | Total Creditors Account |
| B. | Memorandum Trading Account |
| C. | Opening Statement of Affairs |
| D. | Closing Statement of Affairs |
| Answer» B. Memorandum Trading Account | |
| 492. |
Which of the following would not appear in a limited company s surplus/Deficit statement |
| A. | Transfer to revaluation reserve |
| B. | Provision for taxation |
| C. | Interim dividends |
| D. | Transfer to general reserve |
| Answer» C. Interim dividends | |
| 493. |
Credit purchases can be ascertained by preparing |
| A. | Creditors account |
| B. | Debtors account |
| C. | Both of the above |
| D. | None of the above |
| Answer» B. Debtors account | |
| 494. |
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 | |
| 495. |
To ascertain the real profit, the difference between the closing capital and opening capital is adjusted by: |
| A. | Deducting the drawings and adding the additional capital introduced |
| B. | Adding the drawings and deducting the additional capital introduced |
| C. | Deducting both the drawings and the additional capital |
| D. | Adding both the drawings and the additional capital. |
| Answer» C. Deducting both the drawings and the additional capital | |
| 496. |
The closing capital can be ascertained by preparing |
| A. | Cash account |
| B. | Statement of Affairs |
| C. | Trial balance |
| D. | Profit and Loss account |
| Answer» C. Trial balance | |
| 497. |
Credit sales can be ascertained by preparing |
| A. | Creditors account |
| B. | Debtors account |
| C. | Both of the above |
| D. | None of the Above |
| Answer» C. Both of the above | |
| 498. |
The person who send the goods to the agent to be sold by him on commission is called |
| A. | Consignor |
| B. | Consignee |
| C. | Merchant |
| D. | None of these |
| Answer» B. Consignee | |
| 499. |
_________ liabilities represent proprietor s equity, i.e. all thoseamount which are entitled to the proprietor |
| A. | External; |
| B. | Debenture; |
| C. | Internal; |
| D. | None of the above. |
| Answer» D. None of the above. | |
| 500. |
Profit under the net worth method, when there are no drawings and no additional capital is the difference between: |
| A. | Assets and Liabilities |
| B. | apital and Liabilities |
| C. | Assets and Capital |
| D. | Closing Capital and Opening Capital |
| Answer» E. | |