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.
| 951. |
Interest payable on debentures is : |
| A. | an appropriation of profits of the company |
| B. | a charge against profits of the company |
| C. | transferred to sinking fund investment account |
| D. | transferred to general reserve |
| Answer» C. transferred to sinking fund investment account | |
| 952. |
Following information is given ` Opening Stock 2,13,000 Purchase 16,55,000 Sales 21,32,000 Carriage Inwards 32,500 Carriage Outwards 38,600 Return Inwards 38,000 If the rate of gross profit is 25% on cost then value of closing stock will be |
| A. | 2,57,800 |
| B. | 1,94,900 |
| C. | 2,25,300 |
| D. | 3,30,000 |
| Answer» D. 3,30,000 | |
| 953. |
Discount columns in the cash book are |
| A. | Totaled |
| B. | Balanced |
| C. | Not show |
| Answer» B. Balanced | |
| 954. |
As per Partnership Act, which of these rights are available to a partner —— |
| A. | Bonus ; |
| B. | Salary ; |
| C. | Commission ; |
| D. | Equal profit |
| Answer» C. Commission ; | |
| 955. |
In the above question if the depreciation is charged @10% on written down value method, find theprofit or loss on sale of the Second hand car. |
| A. | Loss of ` 20,000 ; |
| B. | Loss of ` 22,000 ; |
| C. | Loss of ` 11,000 ; |
| D. | Profit of ` 11,000 |
| Answer» C. Loss of ` 11,000 ; | |
| 956. |
Which of the following statements is/are true?(i) Cash Book records all cash receipts and cash payments (ii) Cash Book records all sale and purchase transactions of goods both in cash and on credit (iii) Cash Book records discount on Cash Payments |
| A. | Only (i) above |
| B. | Only (ii) above |
| C. | Only (iii) above |
| D. | Both (i) and (iii) above |
| Answer» E. | |
| 957. |
Accounting software requiresSol: |
| 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 | |
| 958. |
A unique name of symbol or design given to a product or service for easy identificationand distinguishing it from the competitor is known as--------- |
| A. | Patent Right |
| B. | Trade Secret |
| C. | Brand |
| D. | all |
| Answer» D. all | |
| 959. |
Sundry debtors as per Trial Balance is ` 43,000 which includes ` 2,200 due from ‗H‘ in respect of goodssent to him on approval basis, the cost price of which is ` 1,800. Rectification would involve: |
| A. | Adding ` 2,200 to closing stock |
| B. | Deducting ` 1,800 from closing stock and deducting ` 2,200 each from debtors and sales |
| C. | Adding ` 1,800 to closing stock and deducting ` 2,200 each from debtors and sales |
| D. | Deducting ` 1,800 from debtors |
| Answer» D. Deducting ` 1,800 from debtors | |
| 960. |
On 1st January 2013 X paid `120,000 being rent upto 31.12.2013. If the accounts are closed on31.03.12. `90,000 will be shown as – |
| A. | Accrued rent ; |
| B. | Prepaid rent / Expenses ; |
| C. | Accrued expenses ; |
| D. | Accrued income |
| Answer» C. Accrued expenses ; | |
| 961. |
Withdrawing more amount from bank than the deposit in the account is termed as____ |
| A. | Fixed deposit |
| B. | Current deposit |
| C. | overdraf |
| Answer» D. | |
| 962. |
From which account, expenses on issue of shares will be written off first of all: |
| A. | Statement of Profit and Loss |
| B. | Miscellaneous Expenditure Account |
| C. | Share Issue Expenses Account |
| D. | Securities Premium Reserve Account |
| Answer» E. | |
| 963. |
Cash Account is a – |
| A. | Personal A/c ; |
| B. | Nominal A/c ; |
| C. | Real A/c ; |
| D. | Dummy A/c |
| Answer» D. Dummy A/c | |
| 964. |
The final accounts , when adjustment entry is passed ,it affects the minimum ________ |
| A. | One account |
| B. | Two account |
| C. | Three account |
| D. | Entire account |
| Answer» C. Three account | |
| 965. |
Rs 280 received from Roy is credited to his account as Rs 208,this error is called |
| A. | Compensating errors |
| B. | Errors of principle |
| C. | Errors of omission |
| D. | Errors of commission |
| Answer» B. Errors of principle | |
| 966. |
Royalty is Rs 44,000, Minimum rent Rs 50,000. Strike is for 2 months with no work done,Minimum rent to be reduced in proportion of time, find the amount paid to Landlord. |
| A. | Rs 5000 |
| B. | Rs 50000 |
| C. | Rs 44000 |
| D. | Rs 6000 |
| Answer» C. Rs 44000 | |
| 967. |
If any stock is taken by a co-venturer, it will be treated as |
| A. | an income of the joint venture. |
| B. | an expense of the joint venture. |
| C. | to be ignored from joint venture. |
| D. | it will be treated in the personal books of the co-venturer. |
| Answer» B. an expense of the joint venture. | |
| 968. |
The portion of the capital which can be called-up only on the winding up of the Company iscalled |
| A. | Authorised Capital |
| B. | Called up Capital |
| C. | Uncalled Capital |
| D. | Reserve Capital |
| Answer» E. | |
| 969. |
Receipts and Payments Account usually indicates:Sol: |
| A. | Surplus |
| B. | Capital fund |
| C. | Debit Balance |
| D. | Credit Balance |
| Answer» D. Credit Balance | |
| 970. |
Which of these is not true about a promissory note |
| A. | Unconditional promise ; |
| B. | Crossing ; |
| C. | Certainty of amount ; |
| D. | Payee to a certain person |
| Answer» C. Certainty of amount ; | |
| 971. |
Sold machinery worth Rs 10000 to Ramesh.it is entered in the |
| A. | Sales account |
| B. | Cash account |
| C. | Sales return account |
| D. | Machinery account |
| Answer» E. | |
| 972. |
Which of the following is not a method of charging depreciation? |
| A. | Sinking Fund Method |
| B. | Sum of years Digit Method |
| C. | Working hours Method |
| D. | Asset's Life-cycle Method |
| Answer» E. | |
| 973. |
An ink-stand has been purchased by a firm for a nominal amount that is to last for 4 year. It should not be classified as a fixed asset under which of the following accounting principles: |
| A. | Dual Aspect Principle |
| B. | Materiality Principle |
| C. | Timeliness Principle |
| D. | Consistency Principle |
| Answer» C. Timeliness Principle | |
| 974. |
Goods sent to branch account is closed by transferring the balance to_____ account |
| A. | Branch debtors |
| B. | Branch stock |
| C. | Trading account |
| D. | Branch expenses |
| Answer» D. Branch expenses | |
| 975. |
Which of the following errors is an error of principle? |
| A. | Total sales figure was taken as ` 19,373 instead of ` 19,733 |
| B. | A discount of ` 30 allowed to Mr. A was not recorded in the discount allowed account |
| C. | Legal charges for acquisition of building for ` 500 was entered in the Legal Expenses Account |
| D. | 1,000 received from Mr. X was posted to the credit of Mr. M |
| Answer» D. 1,000 received from Mr. X was posted to the credit of Mr. M | |
| 976. |
Under the capitalisation method, the formula for calculating the goodwill isSol: |
| A. | Super profits multiplied by the rate of return |
| B. | Average profits multiplied by the rate of return |
| C. | Super profits divided by the rate of return |
| D. | Average profits divided by the rate of return |
| Answer» D. Average profits divided by the rate of return | |
| 977. |
The account to which the difference in the trial balance is temporarily placed , so that the trialbalance is made totally, such an account is called |
| A. | Customers account |
| B. | Suspense account |
| C. | Bank account |
| D. | Capital account |
| Answer» C. Bank account | |
| 978. |
Journal proper is meant for recording |
| A. | Credit purchase of fixed assets ; |
| B. | Return of goods |
| C. | All such transactions for which no special journal has been kept by the business |
| D. | None of these |
| Answer» D. None of these | |
| 979. |
Calculate units manufactured during the year; Units Sold – 500, Opening stock – 100;Closing stock – 200Sol: |
| A. | 500 |
| B. | 700 |
| C. | 550 |
| D. | 600 |
| Answer» E. | |
| 980. |
Debenture Application Account is in the nature of |
| A. | Real Account |
| B. | Personal Account |
| C. | Nominal Account |
| D. | None of the above |
| Answer» C. Nominal Account | |
| 981. |
When does need valuation of GoodwillSol: |
| A. | On retirement or Death of a partner |
| B. | Admission of Partner |
| C. | None of the Above |
| D. | Both |
| Answer» E. | |
| 982. |
Three column cashbook contains |
| A. | Cash ,credit ,bank |
| B. | Cash, discount, bank |
| C. | Cash, petty cash, expenses |
| D. | Cash, bank, income |
| Answer» C. Cash, petty cash, expenses | |
| 983. |
Which of the following shall not be deducted from net profit while calculating managerialremuneration? |
| A. | Loss on sale of undertaking |
| B. | Debts considered bad and written off |
| C. | Liability arising from a breach of contract |
| D. | Director‘s remuneration |
| Answer» E. | |
| 984. |
Honorarium is taken to |
| A. | Receipts and payment account |
| B. | Income and expenditure account |
| C. | Balance sheet |
| D. | Trial balance |
| Answer» C. Balance sheet | |
| 985. |
What does the balance of income and expenditure account shows |
| A. | Cash |
| B. | Debit or credit |
| C. | Profit or loss |
| D. | Surplus or deficit |
| Answer» E. | |
| 986. |
Opening Stock ` 15,000, Closing Stock ` 6,000, Total Purchase during the year ` 30,000. Given thatOpening Stock inadvertently includes postage stamps of ` 1,500. Find the cost of goods sold |
| A. | 40,000 ; |
| B. | 39,000 ; |
| C. | 37,500 ; |
| D. | 36,000 |
| Answer» D. 36,000 | |
| 987. |
Provision for unrealized profit with respect to stock when transfers are affected at transfer price isto be charged to |
| A. | dept trading account |
| B. | dept profit and loss account |
| C. | either a or b |
| D. | general profit and loss account |
| Answer» E. | |
| 988. |
Debit balance as per bank pass book mean — |
| A. | Surplus cash ; |
| B. | Bank Overdraft ; |
| C. | Terms deposits with bank ; |
| D. | None of these |
| Answer» C. Terms deposits with bank ; | |
| 989. |
Which of the following is not a method of charging depreciation |
| A. | Straight line Method ; |
| B. | Written down value Method ; |
| C. | Discounted present value Method ; |
| D. | Sum of digits Method |
| Answer» D. Sum of digits Method | |
| 990. |
A firm earns ₹1,00,000. The normal rate of return is 10%. The assets of the companyamounted to ₹11,00,000 and liabilities to ₹1,00,000. Value of goodwill by the capitalisation ofaverage actual profit will be |
| A. | Rs 200000 |
| B. | Rs 10000 |
| C. | Rs 5000 |
| D. | Rs 100000 |
| Answer» E. | |
| 991. |
Carriage out expenses are come under |
| A. | Administrative expenses |
| B. | Financial expenses |
| C. | Manufacturing expenses |
| D. | Distribution expenses |
| Answer» E. | |
| 992. |
The person in whose favour the bill is endorsed is known as __________. |
| A. | Endorsee |
| B. | Drawee |
| C. | Drawer |
| D. | None of the above |
| Answer» B. Drawee | |
| 993. |
Loss on Joint venture is — |
| A. | Credited to Profit and Loss A/c ; |
| B. | Debited to co-venturers capital A/c; |
| C. | Credited to Capital Fund A/c ; |
| D. | Debited to Suspense A/c |
| Answer» C. Credited to Capital Fund A/c ; | |
| 994. |
Which of the following is/are revenue expenditure? |
| A. | Consumable Stores |
| B. | Taxes and legal expenses |
| C. | Rent of factory building |
| D. | All of Above |
| Answer» E. | |
| 995. |
ABC Ltd. makes payments to its Sundry Creditors through cheques and the Cash Discount received on these payments is recorded in the Triple-columnar Cash Book. In the event of dishonour of any such cheques, the discount so received should be written back through (i) A debit to discount column of the Cash Book (ii) A credit to discount column of the Cash Book (iii) A credit to bank column of the Cash Book (iv) A debit to Discount Account through Journal Proper (v) A credit to Creditor‘s Account through Journal Proper |
| A. | Only (i) above |
| B. | Only (ii) above |
| C. | Both (i) and (iii) above |
| D. | Both (iv) and (v) above |
| Answer» E. | |
| 996. |
If Office Equipment is purchased for cash, what effect will this transaction have on the financialposition 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 | |
| 997. |
Retirement of a bill of exchange means — |
| A. | Cancellation of bill ; |
| B. | Premature payment of bill ; |
| C. | Discounting of bill; |
| D. | Endorsement of bill |
| Answer» C. Discounting of bill; | |
| 998. |
Special journal are also called________________ |
| A. | Journal |
| B. | Ledger |
| C. | Day boo |
| Answer» D. | |
| 999. |
The total of the ‘Discounts Allowed’ column in the Cash Book is posted to? |
| A. | The debit of the Discounts Received account |
| B. | The debit of the Discounts Allowed account |
| C. | The credit of the Discounts Allowed account |
| D. | The credit of the Discounts Received account |
| Answer» C. The credit of the Discounts Allowed account | |
| 1000. |
Which of the following is a resource owned by the business with the purpose of using itfor generating future profits? |
| A. | Loan from Bank |
| B. | Owner's Capital |
| C. | Trade Mark |
| D. | All of the above |
| Answer» D. All of the above | |