602 + Mcqs in Financial Accounting Page 9 McqOptions

401.	Which of the following is a non-profitable organisation ? Sol:
A.	Jharkhand Academic Council
B.	Tata Steel
C.	Air India
D.	Reliance
Answer» B. Tata Steel

Discussion

402.	A Receipts and Payments Account record only non-cash items. Sol:
A.	True
B.	False
C.	none
D.	all
Answer» C. none

Discussion

403.	The comparison of the results of one accounting period with that in the past is possible when the following convention is followed:
A.	Convention of Consistency
B.	Convention of Full Disclosure
C.	Convention of Materiality
D.	Convention of Prudence
Answer» B. Convention of Full Disclosure

Discussion

404.	Which of the following software is not operating software? Sol:
A.	MS DOS
B.	Windows XP
C.	MS Word
D.	None of these
Answer» D. None of these

Discussion

405.	Process of spreading cost 3. Profit and Loss A/c 4. Check arithmetic accuracy 4. Accounting for Fixed Asset
A.	(1, 2), (2, 3), (3, 4), (4,1)
B.	(1, 3), (2, 4), (3, 2), (4, 1)
C.	(1, 4) (2, 2) (3, 1), (4, 3)
D.	(1, 4), (2, 3), (3, 2), (4, 1)
Answer» D. (1, 4), (2, 3), (3, 2), (4, 1)

Discussion

406.	Out of the following items, which one is shown in the Receipts and Payments Account? Sol:
A.	Outstanding Salary
B.	Depreciation
C.	Life Membership Fees
D.	Accrued Subscription
Answer» D. Accrued Subscription

Discussion

407.	Which of the following is not a not-for-profit organisation ? Sol:
A.	College
B.	Sports Club
C.	Tata Automobiles
D.	Hospital
Answer» D. Hospital

Discussion

408.	Which of the following is not a not-for-profit organisation: Sol:
A.	School
B.	Hospital
C.	Club
D.	Partnership Firm
Answer» E.

Discussion

409.	The Charter document or the formation document of LLP is called as
A.	Memorandum
B.	articles of association
C.	LLP agreement
D.	Partnership agreement
Answer» D. Partnership agreement

Discussion

410.	Accounting standards issued by ICAI are mandatory in India. Sol:
A.	True
B.	False
C.	none
D.	all
Answer» B. False

Discussion

411.	The minimum application money to be paid by an applicant must not be less than as per Companies Act.
A.	10%
B.	5%
C.	15%
D.	20%
Answer» C. 15%

Discussion

412.	Out of the following items, which one is shown in the Receipts and Payments Account:
A.	Outstanding Salary
B.	Depreciation
C.	Life Membership Fees
D.	Accrued Subscription
Answer» D. Accrued Subscription

Discussion

413.	According to AS-15 (Revised) superannuation scheme which has relevance only to the final salary and number of years of service is
A.	Defined Benefit Scheme
B.	Defined Contribution Scheme
C.	Non-Contributory Scheme
D.	Both (a) and (b)
Answer» B. Defined Contribution Scheme

Discussion

414.	Accounting software requires Sol:
A.	Transactions to be entered once
B.	Transactions to be entered at each stage i.e. recording and posting into accounts
C.	Both a and b
D.	None of the above
Answer» B. Transactions to be entered at each stage i.e. recording and posting into accounts

Discussion

415.	The principle of recognizing revenue proportionately on the basis of work actually done is generally followed in case of:
A.	Long term contracts
B.	Short term contracts
C.	Not done
D.	Casual Contracts
Answer» B. Short term contracts

Discussion

416.	Peeru and Simu entered in the business of buy and sale of food grain for a period of one year and sharing the profit in the ratio of 3:2, this agreement is a
A.	Partnership
B.	Consignment
C.	Joint-venture
D.	Lease
Answer» D. Lease

Discussion

417.	In case of inter-branch transactions, each branch
A.	Opens separate accounts for other branches
B.	Passes no entry
C.	May treat such transactions as the transactions with the Head office
D.	All the above
Answer» D. All the above

Discussion

418.	Buy Back must be completed within_______________
A.	3 months
B.	6 months
C.	2 months
D.	12 months
Answer» E.

Discussion

419.	_________ contains the transactions relating to goods that are returned by us to our creditors
A.	Return Inward;
B.	Return Outward;
C.	Sales Daybook;
D.	None of the above.
Answer» C. Sales Daybook;

Discussion

420.	The main reasons of keeping branch accounts
A.	to find out the profit or loss of each branch for the accounting period
B.	to ascertain the financial position of each branch at the end of the accounting year
C.	to evaluate the progress and performance of each branch
D.	All of these
Answer» E.

Discussion

421.	Buy Back refers to______________
A.	refund of debentures
B.	refund of preference share capital
C.	refund of equity share capital
D.	purchase of own debenture
Answer» D. purchase of own debenture

Discussion

422.	What is Royalty? Sol:
A.	A payment is made for the use of Assets
B.	A fixed payment for the use of Fixed Assets
C.	Payment made by owners
D.	None of the above
Answer» B. A fixed payment for the use of Fixed Assets

Discussion

423.	Debtors system of keeping branch accounts are generally
A.	Branch fairly small in size
B.	Branch big in size
C.	Branch with multiple transactions
D.	All the above
Answer» B. Branch big in size

Discussion

424.	Under single entry system the main account book kept is
A.	Purchases book
B.	Sales book
C.	Cash book
D.	Returns Inwards Book
Answer» D. Returns Inwards Book

Discussion

425.	Patent Royalty is based in Sales of a Product Sol:
A.	True
B.	False
C.	none
D.	all
Answer» C. none

Discussion

426.	Mining Royalty is based on Sol:
A.	Production
B.	Sales
C.	Purchase
D.	Both A and B
Answer» B. Sales

Discussion

427.	Patent Royalty is based on Sol:
A.	Production
B.	Sales
C.	Purchase
D.	Both A and B
Answer» B. Sales

Discussion

428.	Depreciation on fixed assets implies
A.	an application of funds
B.	a sources of fund
C.	no flow of funds
D.	none of these
Answer» D. none of these

Discussion

429.	The single entry system cannot be adopted by
A.	Sole proprietorship
B.	Partnership concern
C.	Joint stock companies
D.	All of the above
Answer» D. All of the above

Discussion

430.	The system of keeping incomplete record is known as
A.	Single entry
B.	Double entry
C.	Dual entry
D.	None of these.
Answer» B. Double entry

Discussion

431.	Single entry book-keeping means
A.	Incomplete records
B.	Loose and defective system of recording
C.	No proper record of accounting
D.	All the above
Answer» E.

Discussion

432.	For depreciation on fixed assets, whose accounts are maintained by the head office, the head office
A.	Debit Fixed assets account and credit Branch account
B.	Debit Branch account and credit Fixed assets account
C.	Debit Branch account only
D.	Credit fixed assets.
Answer» C. Debit Branch account only

Discussion

433.	Single entry can be adopted by :
A.	Small firms
B.	Joint stock company
C.	Registered co-operative societies
D.	All of the above
Answer» B. Joint stock company

Discussion

434.	X a debtor is declared insolvent and only 25 paise in a rupee is recovered from his estate. If X owes ` 5,000 to Y, Y would debit Cash A/c by
A.	5,000 ;
B.	25 ;
C.	1,250 ;
D.	2,500
Answer» D. 2,500

Discussion

435.	Under Incomplete records only _____ accounts are maintained.
A.	personal
B.	impersonal
C.	real
D.	nominal
Answer» B. impersonal

Discussion

436.	To obtain the amount of credit sales made during an accounting period, which account is generally used in single entry and incomplete records?
A.	Payable Account ;
B.	Total Revenue Account ;
C.	Debtors Account ;
D.	Stock Account
Answer» D. Stock Account

Discussion

437.	From incomplete records, it is possible to prepare
A.	Ledger accounts
B.	Trial balance
C.	Statement of affairs
D.	All of the above
Answer» D. All of the above

Discussion

438.	At the time of admission of a new partners general reserve appearning in the old Balance Sheet is transferred to:
A.	All Partner s Capital Accounts
B.	New Partner s Capital Account
C.	Old Partners . Capital Accounts
D.	None of these
Answer» D. None of these

Discussion

439.	If an employee of the business files a legal suit on business, it is considered in the books as
A.	Legal Expense
B.	Liability
C.	Contingent Asset
D.	Contingent Liability
Answer» E.

Discussion

440.	The balance of Revaluation Reserve pertaining to an asset that has been disposed off or retired can be transferred to
A.	General Reserve A/c
B.	Profit & Loss A/c
C.	Asset A/c
D.	Capital Reserve A/c
Answer» E.

Discussion

441.	Copyright royalty is based on Sol:
A.	Sales
B.	Production
C.	Purchase
D.	Both A and B
Answer» B. Production

Discussion

442.	A heavy balance in the Receipts and Payments Account means
A.	Heavy Surplus
B.	Heavy profit
C.	Heavy Cash
D.	All of the above
Answer» D. All of the above

Discussion

443.	On 1st January 2013 X paid `120,000 being rent upto 31.12.2013. If the accounts are closed on 31.03.12. `90,000 will be shown as
A.	Accrued rent ;
B.	Prepaid rent / Expenses ;
C.	Accrued expenses ;
D.	Accrued income
Answer» C. Accrued expenses ;

Discussion

444.	Insurance business in India is regulated by . A. LIC B. IRDA C. RBI D. SEBI 193. Under ., the sum assured is given to the beneficiary only on death of policyholder.
A.	Whole Life Policy
B.	Endowment Policy
C.	Annuity
D.	None of these
Answer» C. Annuity

Discussion

445.	Normally single entry system is suitable for:
A.	Small scale business
B.	Large scale business
C.	Both of them
D.	None of them
Answer» B. Large scale business

Discussion

446.	Royalty accounting is covered under Companies Act 1956 Sol:
A.	True
B.	False
C.	none
D.	all
Answer» C. none

Discussion

447.	Opening balance of Receipts and Payments accounts in the credit side shows
A.	Bank balance at the beginning of the year
B.	Bank overdraft at the beginning of the year
C.	Capital at the beginning of the year
D.	Cash in hand at the beginning of the year
Answer» C. Capital at the beginning of the year

Discussion

448.	All receipts of capital nature are shown in : Sol:
A.	Income and Expenditure A/c
B.	Balance Sheet
C.	P. & L. A/c
D.	None of these
Answer» C. P. & L. A/c

Discussion

449.	Purchase of new machinery is shown in
A.	Cash flow from Operating Activities
B.	Cash flow from Financing Activities
C.	Cash flow from Investing Activities
D.	All of the above
Answer» D. All of the above

Discussion

450.	Computer Accounting System is used for recording the financial transaction. Sol:
A.	True
B.	False
C.	none
D.	all
Answer» B. False

Discussion

Explore topic-wise MCQs in Bachelor of Business Administration in Computer Applications (BBA [CA]).

Which of the following is a non-profitable organisation ? Sol:

A Receipts and Payments Account record only non-cash items. Sol:

The comparison of the results of one accounting period with that in the past is possible when the following convention is followed:

Which of the following software is not operating software? Sol:

Process of spreading cost 3. Profit and Loss A/c 4. Check arithmetic accuracy 4. Accounting for Fixed Asset

Out of the following items, which one is shown in the Receipts and Payments Account? Sol:

Which of the following is not a not-for-profit organisation ? Sol:

Which of the following is not a not-for-profit organisation: Sol:

The Charter document or the formation document of LLP is called as

Accounting standards issued by ICAI are mandatory in India. Sol:

The minimum application money to be paid by an applicant must not be less than as per Companies Act.

Out of the following items, which one is shown in the Receipts and Payments Account:

According to AS-15 (Revised) superannuation scheme which has relevance only to the final salary and number of years of service is

Accounting software requires Sol:

The principle of recognizing revenue proportionately on the basis of work actually done is generally followed in case of:

Peeru and Simu entered in the business of buy and sale of food grain for a period of one year and sharing the profit in the ratio of 3:2, this agreement is a

In case of inter-branch transactions, each branch

Buy Back must be completed within_______________

_________ contains the transactions relating to goods that are returned by us to our creditors

The main reasons of keeping branch accounts

Buy Back refers to______________

What is Royalty? Sol:

Debtors system of keeping branch accounts are generally

Under single entry system the main account book kept is

Patent Royalty is based in Sales of a Product Sol:

Mining Royalty is based on Sol:

Patent Royalty is based on Sol:

Depreciation on fixed assets implies

The single entry system cannot be adopted by

The system of keeping incomplete record is known as

Single entry book-keeping means

For depreciation on fixed assets, whose accounts are maintained by the head office, the head office

Single entry can be adopted by :

X a debtor is declared insolvent and only 25 paise in a rupee is recovered from his estate. If X owes ` 5,000 to Y, Y would debit Cash A/c by

Under Incomplete records only _____ accounts are maintained.

To obtain the amount of credit sales made during an accounting period, which account is generally used in single entry and incomplete records?

From incomplete records, it is possible to prepare

At the time of admission of a new partners general reserve appearning in the old Balance Sheet is transferred to:

If an employee of the business files a legal suit on business, it is considered in the books as

The balance of Revaluation Reserve pertaining to an asset that has been disposed off or retired can be transferred to

Copyright royalty is based on Sol:

A heavy balance in the Receipts and Payments Account means

On 1st January 2013 X paid `120,000 being rent upto 31.12.2013. If the accounts are closed on 31.03.12. `90,000 will be shown as

Insurance business in India is regulated by . A. LIC B. IRDA C. RBI D. SEBI 193. Under ., the sum assured is given to the beneficiary only on death of policyholder.

Normally single entry system is suitable for:

Royalty accounting is covered under Companies Act 1956 Sol:

Opening balance of Receipts and Payments accounts in the credit side shows

All receipts of capital nature are shown in : Sol:

Purchase of new machinery is shown in

Computer Accounting System is used for recording the financial transaction. Sol: