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.
| 1051. |
Closing stock given in the trial balance will be taken to |
| A. | P&L account only |
| B. | Income and expenditure account only |
| C. | Trading account only |
| D. | Balance sheet only |
| Answer» E. | |
| 1052. |
Trading account is a ____________account |
| A. | Real |
| B. | Nominal |
| C. | Persona |
| Answer» C. Persona | |
| 1053. |
Cash remitted by branch but not received by the head office is debited by the head office to_____ |
| A. | goods in transit |
| B. | cash in transit |
| C. | branch account |
| D. | head office account |
| Answer» C. branch account | |
| 1054. |
Provision for bad debts is |
| A. | Real Account |
| B. | Nominal account |
| C. | Personal account |
| D. | None of the above |
| Answer» D. None of the above | |
| 1055. |
The amount of money owed by a business to outsider is called _____ |
| A. | Capital |
| B. | Asset |
| C. | Liabilities |
| D. | None of these |
| Answer» D. None of these | |
| 1056. |
` 1,250 paid for the residential telephone bill of the proprietor which of these accounts will be detailed |
| A. | Household A/c ; |
| B. | Drawing A/c ; |
| C. | Telephone A/c ; |
| D. | None |
| Answer» C. Telephone A/c ; | |
| 1057. |
When stock is valued at cost in one accounting period and at lower of cost and Net realizable value in another accounting period |
| A. | Prudence Principle conflicts with Consistency Principle. |
| B. | Matching Principle conflicts with Consistency principle. |
| C. | Consistency Principle conflicts with Accounting Period Assumption. |
| D. | None of the above |
| Answer» B. Matching Principle conflicts with Consistency principle. | |
| 1058. |
From the following details estimate the capital as on 31.03.2013, Capital as on 01.04.2012 ` 2,05,000.Drawing ` 20,000, Profit during the year ` 25,000 |
| A. | 2,05,000 ; |
| B. | 2,25,000 ; |
| C. | 2,10,000 ; |
| D. | 2,00,000 |
| Answer» D. 2,00,000 | |
| 1059. |
At the time of admission of a new partners general reserve appearning in the old BalanceSheet 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 | |
| 1060. |
If Ram's acceptance which was endorsed by us in favour of Saleem is dishonoured, then the amount will be debited in our books to |
| A. | Saleem |
| B. | Ram |
| C. | Bills Receivable Account |
| D. | None of the above |
| Answer» C. Bills Receivable Account | |
| 1061. |
On 31st March, 2018 (`) On 31st March, 2019 (`) Subscription Outstanding 55,000 72,000 Subscription Received in Advance 31,000 37,000 The amount of subscription received during the year 2018-19 would be |
| A. | 6,36,000 |
| B. | 6,02,000 |
| C. | 6,14,000 |
| D. | 6,48,000 |
| Answer» C. 6,14,000 | |
| 1062. |
In the books of Lessee , short working recovered amount is debited toSol: |
| A. | Profit and loss account |
| B. | Minimum rent Account |
| C. | Royalty Account |
| D. | Landlord’s Account |
| Answer» B. Minimum rent Account | |
| 1063. |
Receipts and payment accounts records all receipts and payments of |
| A. | Current year |
| B. | Previous year |
| C. | Subsequent year |
| D. | All of these |
| Answer» E. | |
| 1064. |
Nominal A/c represents- |
| A. | Profit/Gain ; |
| B. | Loss/Expenses ; |
| C. | None ; |
| D. | Both (a) and (b) |
| Answer» E. | |
| 1065. |
The statement of profit or loss is prepared according to _______ method to calculate profit orloss under single entry system |
| A. | Conversion method |
| B. | Statement of affairs method |
| C. | Conversion and statement of affairs method |
| D. | None of these |
| Answer» C. Conversion and statement of affairs method | |
| 1066. |
Which of the following accounts appear(s) in the Balance Sheet of a business? i. Stock at the end of the financial year ii. Stock at the beginning of the financial year iii. Drawings iv. Prepaid Rent v. Interest received but not yet earned |
| A. | Only (i) above |
| B. | Only (iii) above |
| C. | Both (i)and (iii) above |
| D. | (i), (iii), (iv) and (v) above |
| Answer» E. | |
| 1067. |
If outside liabilities and owners‘ equity are added we get……… |
| A. | Total Liabilities ; |
| B. | Net worth ; |
| C. | Shareholders Fund ; |
| D. | Gross Block |
| Answer» B. Net worth ; | |
| 1068. |
In accounting only ________ discount is recorded |
| A. | Trade |
| B. | Cash |
| C. | Real |
| D. | None of these |
| Answer» C. Real | |
| 1069. |
Under estimation of useful life of a depreciable asset will lead to — |
| A. | Overstatement of profit ; |
| B. | Excess charging of depreciation every year ; |
| C. | Over valuation of assets in Balance Sheet ; |
| D. | Short charging of depreciation every year |
| Answer» C. Over valuation of assets in Balance Sheet ; | |
| 1070. |
Under the average clause, the loss is suffered by both insurer and insured in the ratio ofrisk coveredSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 1071. |
The balance of petty cash is? |
| A. | An asset |
| B. | A liability |
| C. | An expense |
| D. | An income |
| Answer» B. A liability | |
| 1072. |
Any change in the accounting policy relating to inventories which has a material effect in the current or later periods should be disclosed. This is in accordance with the accounting principle of: |
| A. | Going Concern |
| B. | Conservatism |
| C. | Consistency |
| D. | Disclosure |
| Answer» D. Disclosure | |
| 1073. |
Cash book records— |
| A. | Only cash sales ; |
| B. | All types of cash receipts and payments ; |
| C. | Only revenue receipts |
| D. | Only capital receipts |
| Answer» C. Only revenue receipts | |
| 1074. |
Joint Venture with…………..(another co-venturer) A/c is a —— |
| A. | Personal A/c ; |
| B. | Nominal A/c ; |
| C. | Real A/c ; |
| D. | Memorandum A/c |
| Answer» C. Real A/c ; | |
| 1075. |
The receipts and payments account of a non-profit organization is a |
| A. | Nominal Account ; |
| B. | Real Account ; |
| C. | Income Statement Account ; |
| D. | Financial Account |
| Answer» C. Income Statement Account ; | |
| 1076. |
If any transaction is not recorded in the primary books the same is recorded in_______ |
| A. | Journal Proper |
| B. | Sales Day Book |
| C. | Cash Book |
| D. | None of the above |
| Answer» B. Sales Day Book | |
| 1077. |
Which of these errors affect only one account |
| A. | Errors of casting ; |
| B. | Errors of carry forward ; |
| C. | Errors of posting ; |
| D. | All the three |
| Answer» E. | |
| 1078. |
The drawer of a trade bill passes relevant entries with regard to the transaction involved in it. But, in case of an accommodation bill, he passes an entry in addition to the usual entries. The additional entry so passed is with respect to |
| A. | Discounting of the bill with the bank |
| B. | Payment of the bill on due date |
| C. | Remitting or receiving the amount |
| D. | Sending the bill to bank for collection |
| Answer» D. Sending the bill to bank for collection | |
| 1079. |
Benefits of preparing Bank Reconciliation Statement includes — |
| A. | It bring out any errors committed in preparation of Cash book / Bank Pass Book |
| B. | Highlights under delay in clearance of cheques deposited but not credited |
| C. | Help know actual bank balance ; |
| D. | All the three |
| Answer» E. | |
| 1080. |
Balance left in Consignment A/c shows — |
| A. | Profit or loss on consignment ; |
| B. | Stock lying with the consignee ; |
| C. | Stock lying with the debtors ; |
| D. | Stock awaiting approval |
| Answer» B. Stock lying with the consignee ; | |
| 1081. |
Branch account under stock and debtors system is a ________ account |
| A. | real |
| B. | nominal |
| C. | personal |
| D. | representative personal |
| Answer» B. nominal | |
| 1082. |
According to AS-15 (Revised) superannuation scheme which has relevance only tothe 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 | |
| 1083. |
Company has …………… |
| A. | Separate Legal Entity |
| B. | Perpetual Existence |
| C. | Limited Liability |
| D. | All of the Above |
| Answer» E. | |
| 1084. |
To find out credit sales which account should be prepared |
| A. | debtors account |
| B. | creditors account |
| C. | sales account |
| D. | purchases account |
| Answer» B. creditors account | |
| 1085. |
The expenses and incomes pertaining to full trading period are taken to the Profit and Loss Account of a business, irrespective of their payment or receipt. This is in recognition of |
| A. | Time period Concept |
| B. | Going Concern Concept |
| C. | Accrual Concept |
| D. | Duality Concept |
| Answer» D. Duality Concept | |
| 1086. |
The amount of Owners‘ equity in a business is not affected by |
| A. | The percentage of Total Assets held in cash |
| B. | Investments made in the business by the owner |
| C. | The profitability of the business |
| D. | The amount of dividends paid to Stock holders |
| Answer» B. Investments made in the business by the owner | |
| 1087. |
Which of the following is not true with regard to preparation of Profit & Loss Account? |
| A. | Profit & Loss Account is prepared for a certain period and hence it is an interim statement |
| B. | Profit & Loss Account does not disclose the effect of non-financial items |
| C. | Net Profits are ascertained on the basis of current costs |
| D. | Net Profits as disclosed by P&L Account is not absolute |
| Answer» B. Profit & Loss Account does not disclose the effect of non-financial items | |
| 1088. |
Ledger is also called |
| A. | Principal book of accounts ; |
| B. | Cash books ; |
| C. | Subsidiary book ; |
| D. | None of these |
| Answer» B. Cash books ; | |
| 1089. |
Transferability of share is permitted by: |
| A. | All companies |
| B. | Only private companies |
| C. | All public companies |
| D. | Only Government companies |
| Answer» D. Only Government companies | |
| 1090. |
Find the closing stock from the following details.Opening Stock ` 80,000, Purchases ` 1,40,000, Wages ` 60,000, Sales ` 3,20,000, GP on sales 25% |
| A. | 60,000 ; |
| B. | 40,000 ; |
| C. | 45,000 ; |
| D. | 30,000 |
| Answer» C. 45,000 ; | |
| 1091. |
On scrutiny of a firm‘s books of accounts, it was observed that the following errors have occurred in the previous years but have not yet been rectified. i. Depreciation for 2011-2012- ` 7,000 understated ii. Accrued expenses as at March 31, 2013 - ` 10,000 understated The impact of this on the reported net income for the year ending March 31, 2013 is |
| A. | 7,000 Overstated |
| B. | 10,000 Overstated |
| C. | 17,000 Understated |
| D. | 17,000 Overstated |
| Answer» C. 17,000 Understated | |
| 1092. |
The cost of a Fixed Assets of a business has to be written off over its |
| A. | Natural Life |
| B. | Accounting Life |
| C. | Physical Life |
| D. | Estimated Economic Life |
| Answer» E. | |
| 1093. |
Which of the following is the example of contingencies? |
| A. | Compulsory acquisition of part of land of the company by the Government |
| B. | A suit filed by the employee against the company |
| C. | A debtor of the company is declared insolvent, resulting in bad debts to the company |
| D. | All of (a), (b) and (c) above. |
| Answer» E. | |
| 1094. |
Which of the term is used to write off in reference to tangible fixed assets. |
| A. | Depreciation |
| B. | Depletion |
| C. | Amortization |
| D. | Both (B) and (C) |
| Answer» B. Depletion | |
| 1095. |
Dead rent is also called …………Sol: |
| A. | Outstanding rent |
| B. | Minimum rent |
| C. | Prepaid rent |
| D. | All of the above |
| Answer» C. Prepaid rent | |
| 1096. |
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 | |
| 1097. |
Goodwill A/c is a/an — |
| A. | Nominal A/c ; |
| B. | Tangible Asset ; |
| C. | Intangible Asset ; |
| D. | Fictitious Asset |
| Answer» D. Fictitious Asset | |
| 1098. |
Depreciation is a process of — |
| A. | Valuation of fixed assets ; |
| B. | Allocation of cost over the useful life of assets |
| C. | Generating funds replacements of the assets ; |
| D. | Avoidance of tax |
| Answer» C. Generating funds replacements of the assets ; | |
| 1099. |
Specific donation is:Sol: |
| A. | Capital receipt |
| B. | Revenue Receipt |
| C. | Assets |
| D. | Liabilities |
| Answer» B. Revenue Receipt | |
| 1100. |
Cost of goods sold plus selling expenses equals |
| A. | Cost of production |
| B. | Gross profit |
| C. | Sales |
| D. | Cost of sales |
| Answer» C. Sales | |