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.
| 201. |
Under single entry system, only personal accounts are kept and in some cases: |
| A. | Cash account is maintained |
| B. | Fixed assets accounts are maintained |
| C. | Liabilities account are maintained |
| D. | All of the above |
| Answer» B. Fixed assets accounts are maintained | |
| 202. |
An example of cash flow from investing activity is : |
| A. | Issue of debenture |
| B. | Repayment of long-term loan |
| C. | Purchase of raw materials for cash |
| D. | Sale of investment by non-financial enterprise. |
| Answer» E. | |
| 203. |
Cash from operating activities consists of: |
| A. | Operating Profit |
| B. | Decrease/Increase in Current Assets |
| C. | Decrease/Increase in Current Assets |
| D. | All of the Above |
| Answer» E. | |
| 204. |
Which of the following is not an activity listed in the statement of cash flows? |
| A. | Financing activities |
| B. | Operating activities |
| C. | Funding activities |
| D. | Investing activities |
| Answer» D. Investing activities | |
| 205. |
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 | |
| 206. |
Principle specifies that cost or expenses should be recorded at the same time as the revenue to which they correspond |
| A. | Going run concern ; |
| B. | Matching ; |
| C. | Historical Cost ; |
| D. | Prudence |
| Answer» C. Historical Cost ; | |
| 207. |
Cash from Operating activities will decrease due to : |
| A. | Increase in Current Assets |
| B. | Decrease in Current Liabilities |
| C. | Neither of the two |
| D. | Both (a) and (b) above |
| Answer» E. | |
| 208. |
The Income and Expenditure Account includes all revenue expenses and incomeirrespective of its cash flowSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 209. |
All items of revenue in nature are shown in: Sol: |
| A. | Income and Expenditure A/c |
| B. | Balance Sheet |
| C. | (a) and (b) both |
| D. | None of these |
| Answer» B. Balance Sheet | |
| 210. |
Property received as a result of the will of the deceased person is called: Sol: |
| A. | Lagacy |
| B. | Honorarium |
| C. | Donation |
| D. | Subscription |
| Answer» B. Honorarium | |
| 211. |
Under which of the following concepts are shareholders treated as creditors for the amount they paid on the shares they subscribed to? |
| A. | Cost Concept |
| B. | Duality Concept |
| C. | Business Entity Concept |
| D. | Since the shareholders own the business, they are not treated as creditors |
| Answer» C. Business Entity Concept | |
| 212. |
An Example of cash flow from financing activity is : |
| A. | Payment of dividend |
| B. | Receipt of dividend on investment |
| C. | Cash received from customer |
| D. | Purchase of fixed asset |
| Answer» B. Receipt of dividend on investment | |
| 213. |
Cash payment to suppliers for goods and services are classified as cash flow from ____________ activities. |
| A. | operating |
| B. | financing |
| C. | investing |
| D. | all of the above. |
| Answer» B. financing | |
| 214. |
` 5,500 incurred on sundry expenses inadvertently recorded in the books of account as ` 550. This is an example of |
| A. | Fraud ; |
| B. | Error of Commission ; |
| C. | Error of Principle ; |
| D. | Compensatory Error |
| Answer» C. Error of Principle ; | |
| 215. |
While calculating cash flow from operating activities which will be deducted: |
| A. | Decrease in Prepaid Expenses |
| B. | Increase in Trade Payables |
| C. | Increase in Trade Receivables |
| D. | Decrease in Trade Receivables |
| Answer» D. Decrease in Trade Receivables | |
| 216. |
The following statement stands true when intangible assets are compared to the currentassetsSol: |
| A. | Useful life is short |
| B. | Useful life is moderate |
| C. | Useful life is long |
| D. | all |
| Answer» D. all | |
| 217. |
In cash flows, when a firm invests in fixed assets and short-term financial investments results in |
| A. | Increased Equity |
| B. | Increased Liabilities |
| C. | Decreased Cash |
| D. | Increased Cash |
| Answer» D. Increased Cash | |
| 218. |
The components of Computerised Accounting System are : Sol: |
| A. | Data, Report, Ledger, Hardware, Software |
| B. | Data, People, Procedure, Hardware, Software |
| C. | People, Procedure, Ledger, Data, Chart of Accounts |
| D. | Data, Coding, Procedure, Rules, Output |
| Answer» C. People, Procedure, Ledger, Data, Chart of Accounts | |
| 219. |
Balance of X's account in creditors ledger is transferred to X's account in debtors ledger, in this case |
| A. | X's account in debtors ledger will be debited. |
| B. | X's account in creditors ledger will be debited. |
| C. | Suspense account will be debit |
| Answer» C. Suspense account will be debit | |
| 220. |
The Computerised Accounting System refers to : Sol: |
| A. | Printing of Balance Sheet and Profit and Loss Accounts using computer |
| B. | Processing of accounting transaction through computer and produce records and reports |
| C. | Processing of accounting related data and printing reports |
| D. | None of the above |
| Answer» C. Processing of accounting related data and printing reports | |
| 221. |
The Buy Back of equity shares is governed by________________ of Companies Act |
| A. | section 117 c |
| B. | section 80 |
| C. | section 100 to 104 |
| D. | section 68 |
| Answer» B. section 80 | |
| 222. |
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. | Hp price |
| B. | Cash price |
| C. | Installment price |
| D. | None of these |
| Answer» C. Installment price | |
| 223. |
Donation received for a special purpose: Sol: |
| A. | Should be credited to Income and Expenditure A/c |
| B. | Should be credited to a separate account and shown in the Balance Sheet |
| C. | Should be shown on the Assets side of the Balance Sheet |
| D. | None of these |
| Answer» C. Should be shown on the Assets side of the Balance Sheet | |
| 224. |
Raw material and components purchased and used at the time of installation of new Plant and Machinery will be debited to |
| A. | Plant and Machinery A/c ; |
| B. | Raw Material Consumed A/c ; |
| C. | Purchase A/c ; |
| D. | Profit ;and Loss A/c |
| Answer» B. Raw Material Consumed A/c ; | |
| 225. |
On amalgamation, Share issue Expenses A/c appearing on Assets side of the balance sheet of the vendor company |
| A. | (a) is closed by debit to Realisation A/c |
| B. | (b) is closed by debit to Equity Shareholders A/c |
| C. | (c) is closed by debit to Profit & Loss A/c |
| D. | (d) is closed by credit to Equity Shareholders A/c |
| Answer» C. (c) is closed by debit to Profit & Loss A/c | |
| 226. |
The excess of assets over liabilities in non-trading concerns is termed as: Sol: |
| A. | Capital Fund |
| B. | Capital |
| C. | Profit |
| D. | Net profit |
| Answer» B. Capital | |
| 227. |
According to the money measurement concept, the following will be recorded in the books of account of the business: |
| A. | Health of Managing Director of the company |
| B. | Quality of company s goods |
| C. | Value of Plant & Machinery |
| D. | Strike by employees |
| Answer» D. Strike by employees | |
| 228. |
Transaction& events not capable of being expressed in terms of money are not to be recorded in accounting due to |
| A. | Going concern |
| B. | Accounting entity |
| C. | Money measuremen |
| Answer» D. | |
| 229. |
Which goodwill is recorded in the books of Accounts Sol: |
| A. | Purchase Goodwill |
| B. | Self Generated |
| C. | Both |
| D. | None |
| Answer» B. Self Generated | |
| 230. |
Donation received for a special purpose: |
| A. | Should be credited to Income and Expenditure Account |
| B. | Should be credited to separate account and shown in the Balance Sheet |
| C. | Should be shown on the assets side of the Balance Sheet |
| D. | Should not be recorded at all |
| Answer» C. Should be shown on the assets side of the Balance Sheet | |
| 231. |
Donations received for a special purpose will be taken to the |
| A. | Income and Expenditure A/c |
| B. | Assets side of the B/S |
| C. | Liabilities side of the B/S |
| D. | None of the above |
| Answer» D. None of the above | |
| 232. |
Donations received for a special purpose are |
| A. | Asset |
| B. | Revenue receipt |
| C. | Capital Receipt |
| D. | None of the above |
| Answer» D. None of the above | |
| 233. |
Under single entry system, certain transactions are recorded : |
| A. | At regular intervals |
| B. | At the end of the accounting period |
| C. | Totally |
| D. | None of the above |
| Answer» D. None of the above | |
| 234. |
According to which concept, proprietor of a business is treated as a creditors to the extent of his capital |
| A. | Money measurement |
| B. | Cost |
| C. | Dual aspect |
| D. | Business entity |
| Answer» E. | |
| 235. |
When the benefits of revenue expenditure is available for a period of two or three years, the expenditure is known as- |
| A. | Revenue Expenditure ; |
| B. | Deferred Revenue Expenditure ; |
| C. | Capital Expenditure ; |
| D. | Depreciation. |
| Answer» C. Capital Expenditure ; | |
| 236. |
Receipts and Payments Account of non-trading concerns is a |
| A. | Nominal Account |
| B. | Real Account |
| C. | Personal Account |
| D. | All of the above |
| Answer» C. Personal Account | |
| 237. |
While preparing the final a accounts of non trading concerns where do you show receipts and payments of special nature |
| A. | Balance sheet |
| B. | P & L account |
| C. | I & E account |
| D. | R & P account |
| Answer» B. P & L account | |
| 238. |
Procedure of conversion of Single entry books into Double entry |
| A. | Depends upon the nature of the records maintained in the single entry |
| B. | To prepare a statement of affairs at the starting date of the selected accounting |
| C. | Some items like allowance, bad debt, dishonoured bills must be included |
| D. | All the above |
| Answer» E. | |
| 239. |
General donations of relatively large amount is recorded on the |
| A. | Income side of Income and Expenditure Account |
| B. | Liabilities side of Balance Sheet |
| C. | Receipts side of Receipts and Payments Account |
| D. | both b. and c. |
| Answer» E. | |
| 240. |
If Office Equipment is purchased for cash, what effect will this transaction have on the financial position of the company? |
| A. | There is no change in the Assets, Liabilities and Owners Equity |
| B. | There is a decrease in Assets, increase in Liabilities and no change in Owners Equity |
| C. | There is a decrease in Assets, no change in Liabilities and a decrease in Owners Equity |
| D. | There is an increase in Assets, decrease in Liabilities and no change in Owners Equity |
| Answer» B. There is a decrease in Assets, increase in Liabilities and no change in Owners Equity | |
| 241. |
_______________ is prepared at the end of the accounting period to show the financial position o f business |
| A. | Profit & low account |
| B. | Balance sheet |
| C. | Trail balanc |
| Answer» C. Trail balanc | |
| 242. |
The process of converting foreign subsidiary financial statements into the home currency is known as------------ |
| A. | Transmission |
| B. | Translation |
| C. | Consolidation |
| D. | Reconstruction |
| Answer» C. Consolidation | |
| 243. |
The process of converting foreign subsidiary financial statements into the home currency is known as ------- |
| A. | Transmission |
| B. | Translation |
| C. | Consolidation |
| D. | Reconstruction |
| Answer» C. Consolidation | |
| 244. |
When Branch assets a/c is kept in the books of H.O., the H.O. will debit following a/c for its depreciation- |
| A. | Branch P & L A/c |
| B. | Depreciation A/c |
| C. | Branch A/c |
| D. | None of the above |
| Answer» D. None of the above | |
| 245. |
A heavy balance in the Income and Expenditure Account means |
| A. | Heavy Surplus |
| B. | Heavy profit |
| C. | Heavy Cash |
| D. | All of the above |
| Answer» B. Heavy profit | |
| 246. |
Income and Expenditure Account is: Sol: |
| A. | Personal Account |
| B. | Real Account |
| C. | Nominal Account |
| D. | None of these |
| Answer» D. None of these | |
| 247. |
Non-trading organization prepares |
| A. | Income and Expenditure A/c |
| B. | Trading and profit and loss A/c |
| C. | Trading A/c only |
| D. | Profit and loss A/c only |
| Answer» B. Trading and profit and loss A/c | |
| 248. |
Income and expenditure Account shows a balance of: |
| A. | Cash in in hand |
| B. | Capital Account |
| C. | Net Profit |
| D. | Excess of revenue over expenditure or vice versa. |
| Answer» E. | |
| 249. |
The Head office account in the books of branch is debited with |
| A. | Cash sent to the head office and goods returned to the head office |
| B. | Cash and goods received from the head office |
| C. | Head office expenses allocated to branch by the head office |
| D. | None of the above |
| Answer» B. Cash and goods received from the head office | |
| 250. |
Income and Expenditure Account records transactions of: Sol: |
| A. | Capital nature only |
| B. | Revenue nature only |
| C. | (a) and (b) both |
| D. | None of these |
| Answer» C. (a) and (b) both | |