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.
| 101. |
The capital at the beginning of the accounting year in case of single entry system is determined by opening |
| A. | Opening statement of affairs |
| B. | Cash account |
| C. | Bank account |
| D. | None of the above |
| Answer» B. Cash account | |
| 102. |
Unmarked applications are known as |
| A. | Direct application |
| B. | Applications issued by the company |
| C. | firm underwriting |
| D. | Applications bearing the stamp of underwriter |
| Answer» B. Applications issued by the company | |
| 103. |
If broker find subscribers, he gets |
| A. | Commission |
| B. | Subscription |
| C. | Brokerage |
| D. | Non of the above |
| Answer» D. Non of the above | |
| 104. |
In Single entry mostly: |
| A. | Personal aspects of transaction are recorded |
| B. | Nominal aspects of transaction are recorded |
| C. | Real aspects of transaction are recorded |
| D. | All of the above |
| Answer» B. Nominal aspects of transaction are recorded | |
| 105. |
Single entry system contains |
| A. | All the relevant accounts |
| B. | Only personal accounts |
| C. | Real accounts only |
| D. | Personal account and cash book |
| Answer» E. | |
| 106. |
___________ is specially suited to mines, oil wells, quarries, sandpits and similar assets of a wasting character. |
| A. | Depletion |
| B. | Depreciation |
| C. | Amortisation |
| D. | Dilapidation |
| Answer» B. Depreciation | |
| 107. |
Charitable Organizations promote welfare of the common man, in general Sol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 108. |
The primary motive of Charitable Trust organizations is to provide . Sol: |
| A. | Fund |
| B. | Servive |
| C. | Profit |
| D. | Loss |
| Answer» C. Profit | |
| 109. |
Which of the following account is mainly prepared at the time of dissolution of the firm |
| A. | Revaluation A/c |
| B. | Goodwill A/c |
| C. | Realization A/c |
| D. | Memorandum Revaluation A/c |
| Answer» D. Memorandum Revaluation A/c | |
| 110. |
Joint Bank account is |
| A. | Not like a cash book |
| B. | Opened specifically for the venture |
| C. | Operated by one of the ventures |
| D. | All of the above |
| Answer» C. Operated by one of the ventures | |
| 111. |
Sale of old newspapers is: Sol: |
| A. | Capital Receipt |
| B. | Revenue Receipt |
| C. | Asset |
| D. | Profit |
| Answer» C. Asset | |
| 112. |
Sale of old newspapers is |
| A. | Capital Receipt |
| B. | Revenue Receipt |
| C. | Asset |
| D. | Profit |
| Answer» C. Asset | |
| 113. |
Joint bank account is opened |
| A. | when no separate books for the venture are maintained |
| B. | when separate books for the venture are maintained |
| C. | under no circumstances |
| D. | None of the above |
| Answer» C. under no circumstances | |
| 114. |
The Head Office Account maintained by the branch is of the nature of |
| A. | Real Account |
| B. | Personal Account |
| C. | Nominal Account |
| D. | None of the above |
| Answer» C. Nominal Account | |
| 115. |
Legacy for specific purpose is : |
| A. | Added to the specific fund |
| B. | Shown in Income and expenditure account |
| C. | Shown as separate liability |
| D. | None of the above |
| Answer» B. Shown in Income and expenditure account | |
| 116. |
If the rate of G/P is 25% of sales and the cost of goods sold is ` 150000, the amount of G/P will be |
| A. | `30000 |
| B. | `25000 |
| C. | `40000 |
| D. | `50000 |
| Answer» E. | |
| 117. |
In the balance sheet of a company , the discount on issue of debentures is shown under which heading |
| A. | Fixed asset |
| B. | current asset |
| C. | investment |
| D. | miscellaneous expenditure |
| Answer» E. | |
| 118. |
When the proposed dividend exceeds 20% of the paid up capital, percentage of profit to be transferred to reserve is |
| A. | 10% |
| B. | 7.5% |
| C. | 2.5% |
| D. | 5% |
| Answer» B. 7.5% | |
| 119. |
As per the rules framed under the companies Act, 1956, if the dividend proposed by a company is 12% of the paid up capital, the amount to be transferred to reserve must not be less than |
| A. | 5% of current year profit |
| B. | 7.5% of the current year profit |
| C. | 10% of the current year profit |
| D. | 2.5% of the current year profit. |
| Answer» E. | |
| 120. |
If the half of the issue of shares or debentures is underwritten it is known as |
| A. | Complete or Full Underwriting |
| B. | Sole Underwriting |
| C. | Firm Underwriting |
| D. | Partial Underwriting |
| Answer» E. | |
| 121. |
Mr. X has underwritten 40,000 Shares, but the public applied for 50,000 shares. Therefore, Mr. B will get commission on the issue price of |
| A. | 4000 |
| B. | 40000 |
| C. | 50000 |
| D. | 5000 |
| Answer» C. 50000 | |
| 122. |
A company issued 2000 equity shares which were underwritten by A. The company received applications for 2400 shares. Hence A will get his commission on the issue price of |
| A. | 24000 shares |
| B. | 2000 shares |
| C. | 20000 shares |
| D. | 2400 shares |
| Answer» C. 20000 shares | |
| 123. |
Preference shares, in case the holders of these have a right to convert their preference shares into equity shares at their option according to the terms of issue, such shares are called : |
| A. | Cumulative Preference Share |
| B. | Non-cumulative Preference Share |
| C. | Convertible Preference Share |
| D. | Non-convertible Preference Share |
| Answer» D. Non-convertible Preference Share | |
| 124. |
When provision for depreciation account is maintained, the amount of depreciation is debited to |
| A. | Asset account |
| B. | depreciation account |
| C. | provision for depreciation account |
| D. | none of these. |
| Answer» C. provision for depreciation account | |
| 125. |
The number of days required from the time of issue of the prospectus to the complete allotment should not exceed |
| A. | 30 days |
| B. | 60 days |
| C. | 90 days |
| D. | 120 days |
| Answer» E. | |
| 126. |
The rate of interest a company can charge on calls in arrears according to Table A of the companies act is |
| A. | 10% |
| B. | 6% |
| C. | 5% |
| D. | none of these |
| Answer» D. none of these | |
| 127. |
When an existing company offers its shares for sale to the existing shareholders, it is known as |
| A. | Private placement |
| B. | bonus shares |
| C. | right issue |
| D. | offer for sale |
| Answer» D. offer for sale | |
| 128. |
When forfeited shares (which were originally issued at a discount ) are reused at a premium, the amount of such premium will be credited to |
| A. | Shares forfeiture account |
| B. | security premium account |
| C. | capital reserve account |
| D. | none of these. |
| Answer» C. capital reserve account | |
| 129. |
Del credere commission is calculated on: |
| A. | Credit sales |
| B. | Cash sales |
| C. | Total sale |
| D. | Both (a) and (b) |
| Answer» E. | |
| 130. |
. ..shares are repayable after the expiry of the fixed period or at the option of the company. |
| A. | Participating |
| B. | Convertible |
| C. | Cumulative |
| D. | Redeemable |
| Answer» E. | |
| 131. |
Shortworking is Excess of Minimum Rent over Actual Production Sol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 132. |
A of Assam sent goods costing ` 45,000 to K of Kolkata at cost plus 331/3%. 1/5 of the goods were lost in transit and the remaining was sold at profit of 20% on invoice price. Find the value of sales |
| A. | 54,500 ; |
| B. | 60,000 ; |
| C. | 57,600 ; |
| D. | 55,000 |
| Answer» D. 55,000 | |
| 133. |
Sudhir of Simla consigned 100kg of vegetables to D of Delhi for ` 1500. He spent ` 75 on transportation. 10kg were found stolen during transit and of the remaining 85 kg were sold for ` 1675. Find the value of closing stock. |
| A. | 87.50 ; |
| B. | 78.75 ; |
| C. | 80.00 ; |
| D. | 90.00 |
| Answer» C. 80.00 ; | |
| 134. |
Del credere commission is given when the consignee |
| A. | Sells all the goods on credit |
| B. | Gets no ordinary commission |
| C. | Bears the loss of bad debts |
| D. | None of the above |
| Answer» D. None of the above | |
| 135. |
The debentures whose principal amount is not repayable by the company during its life time, but the payment is made only at the time of Liquidation of the company, such debentures are called : |
| A. | Bearer Debentures |
| B. | Redeemable Debentures |
| C. | Irredeemable Debentures |
| D. | Non-Convertible Debentures |
| Answer» D. Non-Convertible Debentures | |
| 136. |
(i) Salaries as per Income and Expenditure Account Rs.1,500(ii) Salaries paid in advance in previous year Rs.700(iii) Salary outstanding at the end of current year Rs.300(iv) Salary outstanding at the end of previous year Rs.800From the above information given, the amount of salaries to be shown in Receipts and Payment Account can be valued at |
| A. | Rs.1,500 |
| B. | Rs.1,300 |
| C. | Rs.1,900 |
| D. | Rs.2,700 |
| Answer» C. Rs.1,900 | |
| 137. |
Interest on debentures and unsecured loan is payable upto the date of actual payment |
| A. | if the company is solvent |
| B. | if the company is insolvent |
| C. | whether the company is solvent or insolvent |
| D. | none of the above |
| Answer» B. if the company is insolvent | |
| 138. |
Outstanding salary account is 58 |
| A. | Real Account |
| B. | Personal Account |
| C. | Nominal Account |
| D. | None of the above |
| Answer» C. Nominal Account | |
| 139. |
In the case of joint stock company, goodwill is shown on the asset side under the head. |
| A. | Non current asset |
| B. | Investment |
| C. | Current asset |
| D. | Miscellanious expenditure |
| Answer» B. Investment | |
| 140. |
The process of balancing of an account involves equalization of both sides of the account. If the debit side of an account exceeds the credit side, the difference is put on the credit side. The said balance is(i) A Debit balance(ii) A Credit balance(iii) An expenditure or an Asset(iv) An Income or a Liability |
| A. | Only (ii) above |
| B. | Only (iv) above |
| C. | Both (i) and (iii) above |
| D. | Both (ii) and (iii) above |
| Answer» D. Both (ii) and (iii) above | |
| 141. |
Goodwill is nothing more than probability that the old customer will resort to the old place. This definition of goodwill was given by: |
| A. | Spicer and Pegler |
| B. | ICAI |
| C. | Lord Elton |
| D. | AICPA |
| Answer» D. AICPA | |
| 142. |
When there is no Goodwill Account in the books and goodwill israised, .account will be debitedSol: |
| A. | Partner s Capital |
| B. | Goodwill |
| C. | Cash |
| D. | Reserve |
| Answer» C. Cash | |
| 143. |
In the course of preparing a company s cash flow statement, the following figures are to be included in the calculation of net cash from operating activities:Depreciation charges Rs.9,80,000 Profit on sale of non-current assets Rs.40,000Increase in inventories Rs.1,30,000 Decrease in receivables Rs.1,00,000Increase in payables Rs.80,000What will be the net effect of these items in the cash flow statement? |
| A. | addition to operating profit Rs.8,90,000 |
| B. | subtraction from operating profit Rs.8,90,000 |
| C. | addition to operating profit Rs.9,90,000 |
| D. | addition to operating profit Rs.10,70,000 |
| Answer» D. addition to operating profit Rs.10,70,000 | |
| 144. |
If opening capital is Rs.5,000; closing capital - Rs.7,000; drawings - Rs.1,000 and additional capital introduced during the year is Rs.500; then, the amount of profit made would amounted to |
| A. | Rs.1,500 |
| B. | Rs.2,500 |
| C. | Rs.2,000 |
| D. | Rs.3,000 |
| Answer» C. Rs.2,000 | |
| 145. |
A firm earns 1,00,000. The normal rate of return is 10%. The assets of the company amounted to 11,00,000 and liabilities to 1,00,000. Value of goodwill by the capitalisation of average actual profit will be |
| A. | Rs 200000 |
| B. | Rs 10000 |
| C. | Rs 5000 |
| D. | Rs 100000 |
| Answer» E. | |
| 146. |
A firm earns 1,00,000. The normal rate of return is 10%. The assets of the company amounted to 11,00,000 and liabilities to 1,00,000. Value of goodwill by the capitalization of average actual profit will be Sol: |
| A. | 2,00,000 |
| B. | 10000 |
| C. | 5000 |
| D. | 100000 |
| Answer» E. | |
| 147. |
The price of goods sent by head office to branch at a price higher than cost price is called |
| A. | Actual price |
| B. | Unloaded price |
| C. | Invoice price |
| D. | None of these |
| Answer» D. None of these | |
| 148. |
Which of the following statements is/are true?(i) Drawings Account is a Nominal Account(ii) Capital Account is a Real Account(iii) Sales Account is a Nominal Account(iv) Outstanding salaries account is a Nominal Account(v) Patents Account is a Personal Account |
| A. | Only (i) above |
| B. | Only (iii) above |
| C. | Both (ii) and (iii) above |
| D. | Both (ii) ,(iv) and (v)above |
| Answer» C. Both (ii) and (iii) above | |
| 149. |
If applicants for 80,000 shares were allotted 60,000 shares on prorata basis, the shareholder who was allotted 1,200 shares must have applied for : |
| A. | 900 Shares |
| B. | 3,600 Shares |
| C. | 1,600 Shares |
| D. | 4,800 Shares |
| Answer» D. 4,800 Shares | |
| 150. |
S Ltd. issued shares at the face value of Rs.1000 with a premium of Rs.200 per share. The underwriting commission will be calculated on |
| A. | Rs.1000 |
| B. | Rs.900 |
| C. | Rs. 800 |
| D. | Rs.1200 |
| Answer» E. | |