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.
| 801. |
Ledger contains various ___________ in it |
| A. | Transactions ; |
| B. | Entries ; |
| C. | Accounts ; |
| D. | None of these |
| Answer» D. None of these | |
| 802. |
The Primary objective of providing depreciation is: |
| A. | To calculate true profit ; |
| B. | To show the asset on market value ; |
| C. | To reduce tax Burdon ; |
| D. | To provide funds for replacement |
| Answer» C. To reduce tax Burdon ; | |
| 803. |
The opening stock is shown in: |
| A. | Trading Account |
| B. | Profit and Loss Account |
| C. | Balance Sheet |
| D. | Both (a) and (c) |
| Answer» B. Profit and Loss Account | |
| 804. |
Accounts receivable normally has ________ balance |
| A. | Credit |
| B. | Debit |
| C. | Negativ |
| Answer» C. Negativ | |
| 805. |
Asset acquired for long period of time in the business is known as ___________ |
| A. | Fixed asset |
| B. | Current asset |
| C. | Fictitious asse |
| Answer» B. Current asset | |
| 806. |
Depreciation is calculated on the |
| A. | Cost price of asset ; |
| B. | Market price ; |
| C. | Cost+ Transport+ Installation expenses; |
| D. | Cost or market values whichever is less |
| Answer» D. Cost or market values whichever is less | |
| 807. |
What are the advantages of tailor-made software?Sol: |
| A. | These are ready made softwares |
| B. | Low cost |
| C. | High secrecy of data |
| D. | None of the above |
| Answer» D. None of the above | |
| 808. |
Balance sheet is a _______ |
| A. | Ledger |
| B. | Account |
| C. | Statement |
| D. | Subsidiary book |
| Answer» D. Subsidiary book | |
| 809. |
Which of the following is (are) characteristic(s) of Bad Debt? |
| A. | It is a definite loss to the business ; |
| B. | It must be shown in Profit & loss account ; |
| C. | No provision is necessary for it ; |
| D. | All of the given options |
| Answer» E. | |
| 810. |
Special journal is also called |
| A. | Journal proper |
| B. | Subsidiary books |
| C. | Original books |
| D. | Ledger |
| Answer» C. Original books | |
| 811. |
Which of these will not affect Bank and Cash balance |
| A. | Cash received from X credited to Y; |
| B. | Cheques issued to A but debited to B; |
| C. | Cheques deposited and cleared on the same date ; |
| D. | All the three |
| Answer» E. | |
| 812. |
The process of recording transactions in a journal is known as _______ |
| A. | Journalizing |
| B. | Journal |
| C. | Posting |
| D. | Journal entry |
| Answer» B. Journal | |
| 813. |
Debentures are shown in the B/S under head. |
| A. | Current assets, loans and advances |
| B. | Investment |
| C. | Non current liabilities |
| D. | Unsecured loan |
| Answer» D. Unsecured loan | |
| 814. |
Provision for depreciation account appears on the _____ |
| A. | Asset side |
| B. | Liability side |
| C. | P & L account debit side |
| D. | P & L account credit side |
| Answer» B. Liability side | |
| 815. |
For providing depreciation on leasehold property, the appropriate method of depreciationis: |
| A. | Replacement Method |
| B. | Revaluation Method |
| C. | Fixed Installment Method |
| D. | none |
| Answer» D. none | |
| 816. |
If an organisation want to develop a computerised accounting system according to its needas the business of organisation is complex. Which software it should opt for : |
| A. | Ready to use Software |
| B. | Customized Software |
| C. | Tailor-made Software |
| D. | Any of above |
| Answer» D. Any of above | |
| 817. |
Accounting softwares available areSol: |
| A. | Readymade or off-the-shelf software |
| B. | Tailor-made software |
| C. | Customised Software |
| D. | All of these |
| Answer» E. | |
| 818. |
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 | |
| 819. |
If an employee of the business files a legal suit on business, it is considered in thebooks as |
| A. | Legal Expense |
| B. | Liability |
| C. | Contingent Asset |
| D. | Contingent Liability |
| Answer» E. | |
| 820. |
Which of the following are/is not a fixed asset? |
| A. | Stock ; |
| B. | Vehicle ; |
| C. | Fixed deposit in bank ; |
| D. | Both (a) and (c) above |
| Answer» E. | |
| 821. |
Share application account is classified as |
| A. | Real account |
| B. | Personal account |
| C. | Impersonal account |
| D. | Nominal account |
| Answer» B. Personal account | |
| 822. |
minimum rent is also term as dead rentSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 823. |
Which of the following transactions would cause a change in ―owners‘ equity‖? |
| A. | Repayment of a Bank Loan |
| B. | Payment of Dividends and Unprofitable Operations |
| C. | Sale of Land on Credit |
| D. | Purchase of Assets and incurrence of Liabilities |
| Answer» C. Sale of Land on Credit | |
| 824. |
S issued cheque worth ` 35,000 in March 2013 out of which cheques worth ` 15,000 were presented forpayment after by 31st march, 2013. What amount should be added to balance as per pass book |
| A. | 15,000 ; |
| B. | 10,000 ; |
| C. | 25,000 ; |
| D. | None of the above |
| Answer» B. 10,000 ; | |
| 825. |
The balance of Revaluation Reserve pertaining to an asset that has been disposed off or retired canbe transferred to |
| A. | General Reserve A/c |
| B. | Profit & Loss A/c |
| C. | Asset A/c |
| D. | Capital Reserve A/c |
| Answer» E. | |
| 826. |
_________ is the systematic assignment of number to items to classify and organise them.Sol: |
| A. | Codification |
| B. | Coding |
| C. | Grouping |
| D. | Recording |
| Answer» C. Grouping | |
| 827. |
Resources which are invested in permanent asset are called |
| A. | Investment |
| B. | Working capital |
| C. | Block capital |
| D. | Intangible capital |
| Answer» D. Intangible capital | |
| 828. |
Depreciation applies to___ |
| A. | Current assets |
| B. | Wasting assets |
| C. | Intangible assets |
| D. | Fixed assets |
| Answer» C. Intangible assets | |
| 829. |
A of Assam sent goods costing ` 45,000 to K of Kolkata at cost plus 331/3%. 1/5 of the goods were lostin 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 | |
| 830. |
Which of the following errors is not disclosed by a Trial Balance? |
| A. | Errors of Omission |
| B. | Errors of Commission |
| C. | Compensating Errors |
| D. | All of the above |
| Answer» E. | |
| 831. |
When benefit of a revenue expense extend beyond an accounting year, it is called |
| A. | Revenue Expenditure ; |
| B. | Capital expenditure ; |
| C. | Deferred Revenue Expenditure; |
| D. | Recurring profit |
| Answer» D. Recurring profit | |
| 832. |
Preference shares, in case the holders of these have a right to convert their preference sharesinto 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 | |
| 833. |
Income is measured on the basics of |
| A. | Entity concept |
| B. | Accounting period concept |
| C. | Going concern concep |
| Answer» C. Going concern concep | |
| 834. |
Accounting does not record non- financial transactions because of |
| A. | Entity Concept |
| B. | Accrual Concept |
| C. | Cost Concept |
| D. | Money Measurement Concept |
| Answer» C. Cost Concept | |
| 835. |
Life membership fee received by a club is:Sol: |
| A. | Revenue Receipt |
| B. | Capital Receipt |
| C. | (a) and (b) |
| D. | None of these |
| Answer» C. (a) and (b) | |
| 836. |
Following records are made in single entry system , give correct answer |
| A. | only in cashbook |
| B. | in ledger, posting of personal accounts only |
| C. | records in cashbook and posting of only personal accounts in ledger |
| D. | none of these |
| Answer» D. none of these | |
| 837. |
A consignor is entitled to —————— |
| A. | Profit on consignment ; |
| B. | Commission on Sales ; |
| C. | Reimbursement of expenses |
| D. | Interest on capital |
| Answer» B. Commission on Sales ; | |
| 838. |
Ground rent or surface rent means |
| A. | Minimum rent |
| B. | Maximum royalty payable |
| C. | Minimum royalty payable |
| D. | Fixed rent payable in addition to minimum rent |
| Answer» E. | |
| 839. |
In depreciation calculation the life of an asset is: |
| A. | A certain figure |
| B. | An estimate |
| C. | A predetermined figure for all fixed assets |
| D. | none |
| Answer» C. A predetermined figure for all fixed assets | |
| 840. |
Cash loaned to a company is called: |
| A. | Dividends |
| B. | Debentures |
| C. | Shares |
| D. | Reserves |
| Answer» C. Shares | |
| 841. |
Premium on issue of shares can be used for |
| A. | Issue of bonus shares |
| B. | Distribution of profit |
| C. | Transferring to general reserve. |
| D. | None of these |
| Answer» B. Distribution of profit | |
| 842. |
The balance in consignment account shows |
| A. | Amount receivable from consignee |
| B. | Amount payable to consignee |
| C. | Profit/ loss on consignment |
| D. | Closing stock with consignee |
| Answer» D. Closing stock with consignee | |
| 843. |
In Indian Accounting Standards are mandatory for — |
| A. | Corporate bodies ; |
| B. | Proprietorship concerns ; |
| C. | Co-operative societies |
| D. | All the three |
| Answer» B. Proprietorship concerns ; | |
| 844. |
When a branch purchases fixed assets and the assets account is to be kept in the books of thehead office, the branch makes the following entry |
| A. | debits head office credits bank |
| B. | debits branch credits head office |
| C. | debits head office credits branch asset |
| D. | debit branch assets credit banks |
| Answer» B. debits branch credits head office | |
| 845. |
What type of Software is an Accounting Package?Sol: |
| A. | System Software |
| B. | Application Software |
| C. | Utility Software |
| D. | Basic |
| Answer» C. Utility Software | |
| 846. |
Negotiable Instrument Act was enacted in— |
| A. | 1981 ; |
| B. | 1881 ; |
| C. | 1871 ; |
| D. | 2001 |
| Answer» C. 1871 ; | |
| 847. |
XYZ has imported a machine from abroad. Which of the following is not the element of a machine’s cost? |
| A. | Purchase price of machine |
| B. | Import duty |
| C. | Dismantling charges |
| D. | Refundable Tax |
| Answer» E. | |
| 848. |
Which of the following bodies is presented in ASB |
| A. | CBI ; |
| B. | CAG ; |
| C. | RBI ; |
| D. | Trade union |
| Answer» C. RBI ; | |
| 849. |
Goodwill be purchasedSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 850. |
Debenture holders are the: |
| A. | Owners |
| B. | Creditors |
| C. | Directors |
| D. | Suppliers |
| Answer» C. Directors | |