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.
| 51. |
If the hire purchaser fails to make payment of any installment, it is called _______ |
| A. | default |
| B. | repossession |
| C. | sale |
| D. | purchase |
| Answer» B. repossession | |
| 52. |
Under hire purchase system, interest is calculated on _______ |
| A. | cash price |
| B. | hire purchase price |
| C. | mrp |
| D. | outstanding balance. |
| Answer» E. | |
| 53. |
The advance amount under hire purchase system is called __________ |
| A. | cash price |
| B. | retail price |
| C. | interest |
| D. | down payment |
| Answer» E. | |
| 54. |
Under hire purchase system, the retail price of the articles is called ________ |
| A. | mrp |
| B. | wholesale price |
| C. | retail price |
| D. | cash price |
| Answer» D. cash price | |
| 55. |
Installment system is governed by _______ |
| A. | hire purchase act |
| B. | sale of goods act |
| C. | installment act |
| D. | properties registration act |
| Answer» C. installment act | |
| 56. |
Under hire purchase system, the agreement can be _________ |
| A. | renewed |
| B. | registered |
| C. | terminated |
| D. | endorsed. |
| Answer» D. endorsed. | |
| 57. |
Under hire purchase system who has the right of sell __________ |
| A. | buyer |
| B. | hirer |
| C. | hire vendor |
| D. | debtor |
| Answer» D. debtor | |
| 58. |
Under hire purchase system the buyer is called _________ |
| A. | buyer |
| B. | hirer |
| C. | hire vendor |
| D. | debtor. |
| Answer» D. debtor. | |
| 59. |
Under which system, ownership is transferred on payment of final installment |
| A. | installment system |
| B. | credit system |
| C. | hire purchase system |
| D. | cash system |
| Answer» B. credit system | |
| 60. |
The Sale of Goods Act is applicable in: |
| A. | credit purchases |
| B. | cash purchases |
| C. | cash sales |
| D. | none of these |
| Answer» B. cash purchases | |
| 61. |
Hire Purchase Act is passed in the year |
| A. | 1932 |
| B. | 1956 |
| C. | 1972 |
| D. | 1872 |
| Answer» D. 1872 | |
| 62. |
Hirer charges depreciation on: |
| A. | hire purchase price |
| B. | cash price |
| C. | lower of the two |
| D. | none of these |
| Answer» C. lower of the two | |
| 63. |
The depreciation in the books of buyer is charged on _________ |
| A. | hire purchase price |
| B. | market price |
| C. | total instalment amount |
| D. | cash price |
| Answer» E. | |
| 64. |
What is transferred to Hirer under hire purchase system: |
| A. | ownership of assets |
| B. | possession of asset |
| C. | ownership and possession of asset |
| D. | none of these |
| Answer» C. ownership and possession of asset | |
| 65. |
The amount of interest is credited by the buyer to ________ |
| A. | hire purchase account |
| B. | hire vendor account |
| C. | interest account |
| D. | cash account |
| Answer» C. interest account | |
| 66. |
The act of buying an asset without having to make full payment in the immediate futureis known as: |
| A. | hire purchase |
| B. | finance lease |
| C. | operating lease |
| D. | sale and leaseback |
| Answer» B. finance lease | |
| 67. |
Which of the following does not give a difference between a hire purchase and a normalpurchase? |
| A. | timing of payment for asset |
| B. | legal ownership of asset |
| C. | quality of asset purchased |
| D. | total cost of asset. |
| Answer» D. total cost of asset. | |
| 68. |
The depreciation on an asset purchased through hire purchase should be: |
| A. | should be straight line only |
| B. | based on the cost price of the asset only |
| C. | based on the total cost including interest |
| D. | no depreciation should be provide until the final payment is made |
| Answer» C. based on the total cost including interest | |
| 69. |
Ownership of goods under hire purchase agreement is transferred at the time of: |
| A. | payment of down payment |
| B. | payment of first instalment |
| C. | payment of last instalment |
| D. | none of the above |
| Answer» D. none of the above | |
| 70. |
The interest charged on the hire purchase should appear in the profit and loss account inwhat manner? |
| A. | the total interest levied should be divided equally over the total period the for purchase agreement |
| B. | the interest charged in that period only should be included |
| C. | interest should instead be capitalised on the balance sheet |
| D. | interest should be apportioned in proportion to the repayment totals |
| Answer» C. interest should instead be capitalised on the balance sheet | |
| 71. |
If the firm stops making repayments and the goods or assets are taken away from them asa result, this is known as: |
| A. | cancellation |
| B. | forfeiture |
| C. | repossession |
| D. | annulment |
| Answer» D. annulment | |
| 72. |
On the balance sheet of a company, the value of the asset bought through hire purchasewill appear as: |
| A. | cost less depreciation to date less amount owing on hire purchase less interest owing |
| B. | cost less amounts owing on hire purchase |
| C. | cost less depreciation to date less amount owing on hire purchase |
| D. | cost less depreciation to date |
| Answer» E. | |
| 73. |
The decision is Garner Vs Murray was given in: |
| A. | 1904 |
| B. | 1905 |
| C. | 1933 |
| D. | 1804 |
| Answer» B. 1905 | |
| 74. |
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. | hire purchase price |
| B. | cash price |
| C. | instalment price |
| D. | none of these |
| Answer» C. instalment price | |
| 75. |
When a partner dies, firm will receive the: |
| A. | 1/2 amount of policy |
| B. | 1/4 amount of policy |
| C. | 3/4 amount of policy |
| D. | full amount of policy |
| Answer» E. | |
| 76. |
Balance of realization A/c is transferred to the capital A/c of the partners in: |
| A. | capital ratio |
| B. | profit sharing ratio |
| C. | interest ratio |
| D. | equally |
| Answer» C. interest ratio | |
| 77. |
At the time of dissolution all the assets of firm are transferred to the realization A/c: |
| A. | market value |
| B. | book value |
| C. | cost value |
| D. | bale value |
| Answer» C. cost value | |
| 78. |
Section 37 of partnership act provided interest on the amount left by retiring or decreasedpartner at: |
| A. | 5% |
| B. | 10% |
| C. | 6% |
| D. | bank rate |
| Answer» D. bank rate | |
| 79. |
A is drawing Rs. 500 regularly on the 16th of every month, he will have to pay interest ina year on Rs. 6000 for the total period of @ given rate of interest): |
| A. | 5 months |
| B. | 6 months |
| C. | 7 months |
| D. | 12 months |
| Answer» C. 7 months | |
| 80. |
When good will is brought in cash by new partner, method is known as: |
| A. | premium method |
| B. | revolution method |
| C. | memorandum revolution method |
| D. | none |
| Answer» B. revolution method | |
| 81. |
Old profit sharing ratio minus new profit sharing ration is equal to: |
| A. | sacrificing ratio |
| B. | ratio of gain |
| C. | capital ratio |
| D. | none |
| Answer» B. ratio of gain | |
| 82. |
Revolution A/c is a: |
| A. | real a/c |
| B. | personal a/c |
| C. | cash a/c |
| D. | nominal a/c |
| Answer» E. | |
| 83. |
For any decrease in the value of liability, revolution A/c is to be: |
| A. | debited |
| B. | credited |
| C. | both (cr.) & (dr.) |
| D. | neither (dr.) & (cr.) |
| Answer» C. both (cr.) & (dr.) | |
| 84. |
A credit balance on a partner’s current A/c is. |
| A. | fixed capital |
| B. | part of capital |
| C. | a current asset |
| D. | long – term liability |
| Answer» C. a current asset | |
| 85. |
For the firm interest on drawing is: |
| A. | expense |
| B. | income |
| C. | liability |
| D. | none |
| Answer» C. liability | |
| 86. |
Every partner has a right to be consulted in all matters affecting the business of: |
| A. | sole-tradership |
| B. | partnership |
| C. | jsc |
| D. | both (a) and (b) |
| Answer» C. jsc | |
| 87. |
The agreement among partners which set out the terms on which they had agreed to forma partnership is called: |
| A. | partnership deed |
| B. | partnership at will |
| C. | none of these |
| D. | arbitration clause |
| Answer» B. partnership at will | |
| 88. |
A person who receives a share of profits from one of the regular partner is called: |
| A. | secret partner |
| B. | quasi |
| C. | partner in profit only |
| D. | sub – partner |
| Answer» E. | |
| 89. |
A person who declares by word of mouth as partner of the firm is called: |
| A. | active partner |
| B. | estople partner |
| C. | dormant partner |
| D. | nominal partner |
| Answer» C. dormant partner | |
| 90. |
If no provision is made in agreement regarding the duration of the partnership: |
| A. | limited partnership |
| B. | partnership at will |
| C. | none |
| D. | particular partnership |
| Answer» C. none | |
| 91. |
The persons who have entered into a partnership business are individually called: |
| A. | vender |
| B. | agents |
| C. | partners |
| D. | a firm |
| Answer» D. a firm | |
| 92. |
Loss on realization is: |
| A. | debited to partners capital a/c |
| B. | credited to partners capital a/c |
| C. | debited to realization a/c |
| D. | credited to realization a/c |
| Answer» B. credited to partners capital a/c | |
| 93. |
When all partners are insolvent creditors will be: |
| A. | paid fully |
| B. | paid rate ably |
| C. | taken over by the partners |
| D. | paid by government |
| Answer» C. taken over by the partners | |
| 94. |
At the time of dissolution non – cash assets are credited with: |
| A. | market value |
| B. | book value |
| C. | as the agreed amount among the partners |
| D. | cost or market whichever is low |
| Answer» C. as the agreed amount among the partners | |
| 95. |
If a partner takes over an asset of the firm, his capital account: |
| A. | will be debited with the amount as agreed |
| B. | will be credited with the market value of the asset |
| C. | will be debited with book value of the asset |
| D. | none of above |
| Answer» B. will be credited with the market value of the asset | |
| 96. |
Loss on realization is distributed among partners: |
| A. | according to profit and loss ratio |
| B. | according to capital ratio |
| C. | as decided among them |
| D. | none of above |
| Answer» B. according to capital ratio | |
| 97. |
At the time of dissolution: |
| A. | all the assets are transferred to realization a/c |
| B. | only current assets are transferred to realization a/c |
| C. | non cash assets are transferred to realization a/c |
| D. | only liquid and current asset are transferred to realization a/c |
| Answer» D. only liquid and current asset are transferred to realization a/c | |
| 98. |
If all the partners, but one, are solvent it is: |
| A. | dissolution of partnership agreement |
| B. | dissolution of firm |
| C. | may or may not cause dissolution |
| D. | none of above |
| Answer» C. may or may not cause dissolution | |
| 99. |
If all the partners, but one are insolvent it is: |
| A. | dissolution of an agreement |
| B. | dissolution of firm |
| C. | may or may not cause dissolution |
| D. | none of above |
| Answer» C. may or may not cause dissolution | |
| 100. |
Retirement or death of a partner. |
| A. | is dissolution of partnership agreement |
| B. | is dissolution of a firm |
| C. | may or may not be a dissolution of partnership agreement |
| D. | none of above |
| Answer» B. is dissolution of a firm | |