MCQOPTIONS
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MCQOPTIONS
This section includes 1706 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 551. |
Consider the following data pertaining to a firm: Credit balance as per bank column of cash book `13,000; Bank interest on overdraft appeared only in the pass book `2,600; Cheques deposited but not collected by the bank ` 5,000. The balance as per pass book is |
| A. | 20,600 (Dr. balance) ; |
| B. | 18,500 (Dr. balance) ; |
| C. | 18,500 (Cr. balance) ; |
| D. | 15,600 (Dr. balance) |
| Answer» B. 18,500 (Dr. balance) ; | |
| 552. |
Expenses which have become due during the accounting period for which the final accounts havebeen prepared but have not yet been paid is called |
| A. | Accrued |
| B. | Outstanding |
| C. | Arrears |
| D. | Non over dues |
| Answer» C. Arrears | |
| 553. |
Subscription received during the year 50,000 Rs. Subscriptions outstanding at the end ofthe year 8,000 Rs. Subscription outstanding at the beginning of the year 6,000 Rs. Net Incomefrom subscription will be : |
| A. | Rs 48000 |
| B. | RS 64000 |
| C. | RS 52000 |
| D. | RS 36000 |
| Answer» D. RS 36000 | |
| 554. |
The accounting measurement that is not consistent with the Going Concern concept is |
| A. | Historical Cost |
| B. | Realization |
| C. | The Transaction Approach |
| D. | Liquidation Value |
| Answer» D. Liquidation Value | |
| 555. |
In Hire Purchase system cash price plus interest is known as |
| A. | Capital value of asset |
| B. | Book value of asset |
| C. | Hire purchase price of asset |
| D. | Hire purchase charges |
| Answer» D. Hire purchase charges | |
| 556. |
A trade purchase of ` 5,500 from Y was passed through Sales Day Book as ` 550, what rectification entry would be passed if the mistake is detected before preparation of Trading and Profit & Loss A/c |
| A. | Sales A/c ….Dr. ` 550, Purchase A/c ….Dr. ` 5,500, Y‘s A/c Cr. ` 6,050 |
| B. | Profit and Loss Adjustment A/c ….Dr. ` 6,050, Y‘s A/c Cr. ` 6,050 |
| C. | Sales A/c ….Dr. ` 550, Purchase A/c ….Dr. ` 5,500, Suspense A/c Cr. ` 6,050 |
| D. | None |
| Answer» B. Profit and Loss Adjustment A/c ….Dr. ` 6,050, Y‘s A/c Cr. ` 6,050 | |
| 557. |
Shareholder’s funds include: |
| A. | Equity share capital and General Reserve |
| B. | Preference share capital and capital reserve |
| C. | Share capital and capital reserve |
| D. | Share capital and reserve and surplus |
| Answer» E. | |
| 558. |
Interim dividend paid is always shown |
| A. | In P/L Appropriation A/c |
| B. | On the asset side of the B/S |
| C. | On the liability side of the B/S |
| D. | None of these. |
| Answer» B. On the asset side of the B/S | |
| 559. |
Depreciation on branch assets under debtors system is |
| A. | not shown separately in branch account |
| B. | shown in branch account |
| C. | not accounted |
| D. | shown in the profit and loss account of head office |
| Answer» B. shown in branch account | |
| 560. |
The asset which is an exception from depreciation is |
| A. | Computer |
| B. | Furniture |
| C. | Land |
| D. | ATM Machine |
| Answer» D. ATM Machine | |
| 561. |
The fees received from life members is not a periodic subscription, hence are to becapitalized |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 562. |
As per the cost of concept an asset is recorded at its |
| A. | market cost |
| B. | actual cost |
| C. | normal cost |
| D. | purchase cost |
| Answer» C. normal cost | |
| 563. |
_______________ is prepared at the end of the accounting period to show the financialposition o f business |
| A. | Profit & low account |
| B. | Balance sheet |
| C. | Trail balanc |
| Answer» C. Trail balanc | |
| 564. |
Goods sent by the head office to the branch but not received by the branch before the close offinancial year are credited by head office to |
| A. | branch account |
| B. | trading account |
| C. | goods sent to branch account |
| D. | goods in transit account |
| Answer» B. trading account | |
| 565. |
Opening an account in a computerized accounting system is entirely different from opening an account in a manual system. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 566. |
Life Membership Fees received by a club is shown in :Sol: |
| A. | Income and Expenditure A/c |
| B. | Balance Sheet |
| C. | Receipts and Payments A/c |
| D. | None of these |
| Answer» C. Receipts and Payments A/c | |
| 567. |
The Profit and Loss Account shows the |
| A. | Financial results of the concern for a period |
| B. | Financial position of the concern on a particular date |
| C. | Financial results of the concern on a particular date |
| D. | Cost of goods sold during the period |
| Answer» B. Financial position of the concern on a particular date | |
| 568. |
The primary motive of Charitable Trust organizations is to provide…………………….Sol: |
| A. | Fund |
| B. | Servive |
| C. | Profit |
| D. | Loss |
| Answer» C. Profit | |
| 569. |
Which types of errors will effect net profit |
| A. | Affecting Nominal Account ; |
| B. | Affecting Personal Account ; |
| C. | Affecting Real Account |
| D. | None |
| Answer» B. Affecting Personal Account ; | |
| 570. |
From the following details estimate the capital as on 31.03.2017. Capital as on01.04.2016 - `4,10,000. Drawings `40,000, Profit during the year ` 50,000 |
| A. | 4,10,000 |
| B. | 4,50,000 |
| C. | 4,20,000 |
| D. | 4,00,000 |
| Answer» D. 4,00,000 | |
| 571. |
How does depreciation effect basic accounting equation |
| A. | Leads to decreases in assets and shareholders equity |
| B. | Leads to decrease in asset only |
| C. | Leads to increase in liability and decrease in assets |
| D. | Leads to decrease in shareholders equity |
| Answer» B. Leads to decrease in asset only | |
| 572. |
When a Fixed Asset is obtained as a gift, the account to be credited is |
| A. | Goodwill A/c |
| B. | Capital Reserve A/c |
| C. | Donor‘s A/c |
| D. | General Reserve A/c |
| Answer» C. Donor‘s A/c | |
| 573. |
` 8,000 is spent of travelling expenses of the partner to a foreign trip for purchased of an asset to be used for the business is a/an — |
| A. | Capital Expenditure ; |
| B. | Revenue Expenditure ; |
| C. | Revenue Loss ; |
| D. | Capital Loss |
| Answer» B. Revenue Expenditure ; | |
| 574. |
A reserve created for redemption of debentures at a future date: |
| A. | Debentures Sinking Fund |
| B. | Debentures Redemption Reserve |
| C. | Profit & Loss Appropriation Account |
| D. | Suspense Account |
| Answer» C. Profit & Loss Appropriation Account | |
| 575. |
Balance sheet is prepared for a ____________ |
| A. | Period |
| B. | On a particular date |
| C. | Entire life of busines |
| Answer» C. Entire life of busines | |
| 576. |
Which of the following concepts assumes that a business will last indefinitely? |
| A. | Business Entity |
| B. | Going Concern |
| C. | Periodicity |
| D. | Consistency |
| Answer» C. Periodicity | |
| 577. |
Which of the following is not a Fundamental Accounting Assumption? |
| A. | Going Concern |
| B. | Consistency |
| C. | Accrual |
| D. | Materiality |
| Answer» E. | |
| 578. |
Which of the following is NOT normally considered to be an asset? |
| A. | Retained earnings. |
| B. | Cash. |
| C. | Buildings. |
| D. | Accounts receivable. |
| Answer» B. Cash. | |
| 579. |
While preparing the final a accounts of non trading concerns where do you show receipts andpayments of special nature |
| A. | Balance sheet |
| B. | P & L account |
| C. | I & E account |
| D. | R & P account |
| Answer» B. P & L account | |
| 580. |
The income earned but not yet received: |
| A. | Accrued income |
| B. | Outstanding Income |
| C. | Unearned Income |
| D. | none |
| Answer» D. none | |
| 581. |
Depreciation on machinery this transaction initially shown on |
| A. | Trading account |
| B. | Profit and loss account |
| C. | Balance sheet |
| D. | All of these |
| Answer» C. Balance sheet | |
| 582. |
Opening Debtors, Collection from Debtors and Discount Allowed were `3,15,000; `18,30,000 and `35,000 respectively. If the closing debtors were 20% of credit sales of the period then closing debtors and credit sales would be |
| A. | 3,51,667 and`17,58,333 |
| B. | 3,63,333 and `18,16,667 |
| C. | 3,87,500 and `19,37,500 |
| D. | 3,10,000 and `15,50,000 |
| Answer» D. 3,10,000 and `15,50,000 | |
| 583. |
The shares on which there is no any pre-fixed rate of dividend is decided, but the rate ofdividend is fluctuating every year according to the availability of profits, such share are called : |
| A. | Equity Share |
| B. | Non-cumulative preference share |
| C. | Non-convertible preference share |
| D. | Non-guaranteed preference share |
| Answer» B. Non-cumulative preference share | |
| 584. |
Undercasting of the total of Sales A/c will affect — |
| A. | Gross Profit and Loss ; |
| B. | Debtors A/c ; |
| C. | Closing Stock ; |
| D. | Working Capital |
| Answer» B. Debtors A/c ; | |
| 585. |
Mining Royalty is based onSol: |
| A. | Production |
| B. | Sales |
| C. | Purchase |
| D. | Both A and B |
| Answer» B. Sales | |
| 586. |
When Fixed Assets are sold |
| A. | The Total Assets will increase |
| B. | The Total Liabilities will increase |
| C. | The Total Assets will decrease |
| D. | There is no change in the Total Assets |
| Answer» E. | |
| 587. |
A Charitable Institution has 250 members with a annual subscription of `5,000 each. The subscription received during 2018-19 were `11,25,000, which include ` 65,000 and `25,000 for the years of 2017-18 and 2019-20 respectively. Amount of outstanding subscription for the 2018-19 will be |
| A. | 90,000 |
| B. | 1,25,000 |
| C. | 2,15,000 |
| D. | 1,90,000 |
| Answer» D. 1,90,000 | |
| 588. |
The turn over ratio is used for the allocation of |
| A. | income tax |
| B. | bad debts |
| C. | depreciation |
| D. | staff welfare expenses |
| Answer» C. depreciation | |
| 589. |
This is the feature of Intangible assetsSol: |
| A. | They are valuable to internal and external entities. |
| B. | They are always acquired. |
| C. | They may be internally created or purchased |
| D. | all |
| Answer» D. all | |
| 590. |
Rent prepaid is |
| A. | Assets |
| B. | Liability |
| C. | Income |
| D. | Expense |
| Answer» B. Liability | |
| 591. |
Residual value is the — |
| A. | value of the asset when it is purchased |
| B. | value of the asset at the end of its useful life |
| C. | cost of the asset ; |
| D. | allocation of the cost |
| Answer» C. cost of the asset ; | |
| 592. |
Creation of company is the first step in Computerized Accounting process.Sol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 593. |
Sales journal is used for recording |
| A. | Cash sales |
| B. | Credit sales |
| C. | Total sal |
| Answer» C. Total sal | |
| 594. |
In a three column cash book ---------- does not exist |
| A. | Cash column ; |
| B. | Bank column ; |
| C. | Petty cash column ; |
| D. | Discount column |
| Answer» D. Discount column | |
| 595. |
Intangibility refers to ------------------Sol: |
| A. | Economic benefit |
| B. | Absence of future value |
| C. | Absence of physical form and creation. |
| D. | all |
| Answer» D. all | |
| 596. |
Software must be easy to…….Sol: |
| A. | Install |
| B. | Adapt |
| C. | Understand |
| D. | All of the above |
| Answer» E. | |
| 597. |
XYZ Ltd. Paid wages of ` 8,000 for erection of machinery. The journal entry for the transaction is |
| A. | Debit wages and credit cash |
| B. | Debit machinery and credit cash |
| C. | Debit wages and credit erection charges |
| D. | Debit machinery and credit erection charges |
| Answer» C. Debit wages and credit erection charges | |
| 598. |
Which among the following deals with generation of reports that are vital for managementdecision making?Sol: |
| A. | Costing sub system |
| B. | Pay Roll Accounting Sub system |
| C. | Budget Sub System |
| D. | Management Information System |
| Answer» E. | |
| 599. |
If unexpired insurance appears in the Trial Balance, it should be |
| A. | Credited to the Profit & Loss Account |
| B. | Debited to the Profit & Loss Account |
| C. | Shown on the liabilities side of the Balance Sheet |
| D. | Shown on the assets side of the Balance Sheet |
| Answer» E. | |
| 600. |
If applicants for 80,000 shares were allotted 60,000 shares on prorata basis, the shareholderwho 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 | |