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.
| 1251. |
Cash book is a ____________ |
| A. | Journal |
| B. | Ledger |
| C. | Journal & ledge |
| Answer» D. | |
| 1252. |
Which of the following is an example of Personal Account? |
| A. | Machinery |
| B. | Rent |
| C. | Cash |
| D. | Creditor |
| Answer» E. | |
| 1253. |
Accounting for Fixed Assets is related to |
| A. | AS 7 ; |
| B. | AS 14 ; |
| C. | AS 10 ; |
| D. | AS 21 |
| Answer» D. AS 21 | |
| 1254. |
In income & Expenditure accounts, we record |
| A. | Items of capital nature alone |
| B. | Items of revenue nature alone |
| C. | Both |
| D. | Items of expenditure |
| Answer» C. Both | |
| 1255. |
A person who owes money to the business is a __________ |
| A. | Debtor |
| B. | Creditor |
| C. | Investo |
| Answer» B. Creditor | |
| 1256. |
Noting charges are ultimately borne by— |
| A. | Drawee ; |
| B. | Drawer ; |
| C. | Payee ; |
| D. | None |
| Answer» B. Drawer ; | |
| 1257. |
The amount of share premium received by the company is shown in the Balance Sheet under the heading: |
| A. | Equity and Liabilities |
| B. | Reserves and Surplus |
| C. | Non-Current Assets |
| D. | All of above |
| Answer» C. Non-Current Assets | |
| 1258. |
Short working is ………….Sol: |
| A. | Excess of minimum rent over the actual royalty |
| B. | Excess of actual royalty over minimum rent |
| C. | Excess of standard output over Actual output |
| D. | None of the above |
| Answer» B. Excess of actual royalty over minimum rent | |
| 1259. |
The concept that business is assumed to exist for an indefinite period and is notestablished with the objective of closing down is referred to as |
| A. | Money Measurement concept |
| B. | Going Concern concept |
| C. | Full Disclosure concept |
| D. | Dual Aspect concept |
| Answer» C. Full Disclosure concept | |
| 1260. |
For the past 3 years, DK Ltd. has failed to accrue unpaid wages earned by workers during the last week of the year. The amounts omitted, which were considered material, were as follows: March 31,2010 - ` 56,000 March 31, 2011 - ` 51,000 March 31, 2012 - ` 64,000 The entry on March 31, 2012 to rectify these omissions would include a |
| A. | Credit to wage expense for ` 64,000 |
| B. | Debit to wage expense for ` 64,000 |
| C. | Debit to wage expense for ` 51,000 |
| D. | Debit to wage expense for ` 13,000 |
| Answer» E. | |
| 1261. |
Which of these items are taken into consideration for preparation of adjusted Cash Book |
| A. | Mistake in Cash Book ; |
| B. | Mistake in Pass Book ; |
| C. | Cheque issued but not presented for payment ; |
| D. | Cheques deposited but not cleared |
| Answer» B. Mistake in Pass Book ; | |
| 1262. |
In the Sale or Return Ledger |
| A. | All the customers are individually debited and the sale or return account is credited with the periodical total of the Sale or Return Day Book, |
| B. | All the customers are debited in total and the sale or return account is credited with the periodical total of the Sale or Return Day Book. |
| C. | All the customers are individually debited and the sale or return account is also credited with the individual total of the Sale or Return Day Book. |
| D. | None of the above. |
| Answer» B. All the customers are debited in total and the sale or return account is credited with the periodical total of the Sale or Return Day Book. | |
| 1263. |
Collection of all accounts us called |
| A. | Trial balance |
| B. | Journal |
| C. | Ledger |
| D. | Cash book |
| Answer» D. Cash book | |
| 1264. |
Sales of grass in the case of a sports club is |
| A. | A capital receipts |
| B. | A revenue receipts |
| C. | An asset |
| D. | A liability |
| Answer» C. An asset | |
| 1265. |
Which of these expenses are not included in valuation of closing stock lying with the consignee |
| A. | Freight and insurance ; |
| B. | Loading and unloading incurred ; |
| C. | Godown rent ; |
| D. | Custom duties |
| Answer» D. Custom duties | |
| 1266. |
In a non profit organizations cashbook shows________ in its debit side |
| A. | Assets |
| B. | Liabilities |
| C. | Receipts |
| D. | Payment |
| Answer» D. Payment | |
| 1267. |
Journal is a book of ______entry |
| A. | Original |
| B. | Secondary |
| C. | None of thes |
| Answer» B. Secondary | |
| 1268. |
A person who take property on lease is called customerSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 1269. |
Who bears noting charges in case of dishonor of a bill of exchange. |
| A. | Drawer ; |
| B. | Drawee ; |
| C. | Both ; |
| D. | Bank |
| Answer» C. Both ; | |
| 1270. |
If goods worth ` 1,750 returned to a supplier is wrongly entered in sales return book as ` 1,570 , then |
| A. | Net Profit will decrease by ` 3,140 ; |
| B. | Gross Profit will increase by ` 3,320 |
| C. | Gross Profit will decrease by ` 3,500 ; |
| D. | Gross Profit will decrease by ` 3,320 |
| Answer» E. | |
| 1271. |
The entry to record the collection of cash from Sundry Debtors would involve a(i) Debit to Sundry Debtors (ii) Debit to Cash Account (iii) Credit to Sundry Debtors (iv) Credit to Cash Account |
| A. | Only (i) above |
| B. | Only (iii) above |
| C. | Both (ii) and (iii) above |
| D. | Both (i) and (iv) above |
| Answer» D. Both (i) and (iv) above | |
| 1272. |
The document listing the latest balances of all Real and Personal A/c in the ledger on a given date is known as — |
| A. | Trial Balance ; |
| B. | Positional Statement ; |
| C. | Income Statement ; |
| D. | Charter of Accounts |
| Answer» C. Income Statement ; | |
| 1273. |
Which column of Cash Book is never balanced. |
| A. | Discount Column ; |
| B. | Cash ; |
| C. | Bank ; |
| D. | Petty Cash |
| Answer» B. Cash ; | |
| 1274. |
Life membership fees received by a club is treated as |
| A. | Revenue receipts |
| B. | Capital receipts |
| C. | Assets |
| D. | Special receipts |
| Answer» C. Assets | |
| 1275. |
Any profit on sale of a cricket bat of a club will be taken to ________ |
| A. | Income and expenditure( credits side) |
| B. | Income and expenditure debit side |
| C. | Balance sheet assets side |
| D. | Balance sheet liability side |
| Answer» B. Income and expenditure debit side | |
| 1276. |
Credit Purchase can be calculated by preparing: |
| A. | Cash book |
| B. | Statement of affairs |
| C. | Debtors A/c |
| D. | Creditors A/c |
| Answer» E. | |
| 1277. |
The ____________ in a ledger helps in locating the accounts contained in it |
| A. | Folio ; |
| B. | Pages ; |
| C. | Serial Number ; |
| D. | None of these |
| Answer» B. Pages ; | |
| 1278. |
Which of the following is not a not-for-profit organisation:Sol: |
| A. | School |
| B. | Hospital |
| C. | Club |
| D. | Partnership Firm |
| Answer» E. | |
| 1279. |
Which of these transactions will not be recorded in cash book— |
| A. | Cash received from debtors ; |
| B. | Cash paid to creditors ; |
| C. | Salary remained outstanding |
| D. | Cash deposited with bank |
| Answer» D. Cash deposited with bank | |
| 1280. |
Peeru and Simu entered in the business of buy and sale of food grain for a period ofone year and sharing the profit in the ratio of 3:2, this agreement is a |
| A. | Partnership |
| B. | Consignment |
| C. | Joint-venture |
| D. | Lease |
| Answer» D. Lease | |
| 1281. |
Which of the following statement is false?Sol: |
| A. | Recoupable short working is a current assets |
| B. | Lapsed short working is a real account |
| C. | Short working is the part of minimum rent not represent by the use of right |
| D. | Both A and B |
| Answer» C. Short working is the part of minimum rent not represent by the use of right | |
| 1282. |
______________ is the major source of revenue of any business |
| A. | Purchase |
| B. | Sale |
| C. | Interes |
| Answer» C. Interes | |
| 1283. |
Prepaid expenses appearing in trial balance will appear in _____ |
| A. | Profit and loss account debit side |
| B. | Profit and loss account credit side |
| C. | Balance sheet asset side |
| D. | Balance sheet liability side |
| Answer» D. Balance sheet liability side | |
| 1284. |
Expenditures in respect of certain types of assets whose usefulness does not expiresin the year of their occurrence but generally expires in the near future are called |
| A. | Revenue Expenditure |
| B. | Capital Expenditure |
| C. | Deferred Revenue Expenditure |
| D. | None of the above |
| Answer» D. None of the above | |
| 1285. |
12.2012 — |
| A. | 1,25,000 ; |
| B. | 1,35,000 ; |
| C. | 1,05,000 ; |
| D. | 1,50,000 |
| Answer» C. 1,05,000 ; | |
| 1286. |
Provision for Doubtful Debt on 1st April, 2018 was `21,500. During the year 2018 – 19 the Bad-debt and Recovery of Bad-debt were ` 10,500 and ` 2,100 respectively. The Sundry Debtors on 31st March, 2019 were `2,25,000. Provision is to be made @ 5% on Debtors. If on 31st March, 2019, there was additional Bad-debt of ` 2,500 then Provision for doubtful-debt will be |
| A. | debited to Profit & Loss Account by `11,250. |
| B. | debited to Profit & Loss Account by `2,625. |
| C. | debited to Profit & Loss Account by `3,000. |
| D. | debited to Profit & Loss Account by `900. |
| Answer» C. debited to Profit & Loss Account by `3,000. | |
| 1287. |
Under______ system branch profit or loss is ascertained by preparing branch accounts |
| A. | Debtors |
| B. | Stock and debtors |
| C. | Wholesale |
| D. | Final accounts |
| Answer» B. Stock and debtors | |
| 1288. |
The Income and Expenditure Account is a summary of cash transactions.Sol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 1289. |
Which of the following accounting treatments is/are true in respect of accrued commission appearingon the debit side of a Trial Balance? |
| A. | It is shown on the debit side of the Profit and Loss Account |
| B. | It is shown on the credit side of the Profit and Loss Account |
| C. | It is shown on the liabilities side of the Balance Sheet |
| D. | It is shown on the assets side of the Balance Sheet |
| Answer» E. | |
| 1290. |
Goods received from other co-venturer is debited to …… |
| A. | Joint Venture A/c ; |
| B. | Joint Bank A/c ; |
| C. | Memorandum Joint Venture A/c ; |
| D. | Other Co- venture A/c |
| Answer» B. Joint Bank A/c ; | |
| 1291. |
A Receipts and Payments Account record only non-cash items.Sol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 1292. |
By what rate the balance of head office account is converted in foreign branch |
| A. | opening rate |
| B. | closing rate |
| C. | average rate |
| D. | none of these |
| Answer» E. | |
| 1293. |
A cashbook which contain only one column is |
| A. | Double column cashbook |
| B. | Three column cashbook |
| C. | Simple cashbook |
| D. | Petty cashbook |
| Answer» D. Petty cashbook | |
| 1294. |
Creditors for goods purchase come within the category of________________ |
| A. | Fixed Liabilities |
| B. | Current Liabilities |
| C. | Capital |
| D. | none |
| Answer» C. Capital | |
| 1295. |
Loss on sale of asset is taken to |
| A. | Receipts and payments account |
| B. | Income and expenditure account |
| C. | Balance sheet |
| D. | Trial balance |
| Answer» C. Balance sheet | |
| 1296. |
The process of transfer of entries from day book to ledgers is called _______________ |
| A. | Simple posting ; |
| B. | Journal posting ; |
| C. | Transaction ; |
| D. | Ledger posting |
| Answer» E. | |
| 1297. |
Unclaimed dividend is shown in the B/S under the head |
| A. | Current liability |
| B. | Unsecured loan |
| C. | Reserve and surplus |
| D. | Provisions |
| Answer» B. Unsecured loan | |
| 1298. |
Current Liabilities mean — |
| A. | Liabilities which are payable within 12 months |
| B. | Liabilities which are payable immediately |
| C. | Liabilities which payable after one accounting year |
| D. | Liabilities which are readable within 3 months |
| Answer» B. Liabilities which are payable immediately | |
| 1299. |
The main objective of average clause contained in a fire insurance policy is to |
| A. | Encourage full Insurance |
| B. | Discourage full Insurance |
| C. | Encourage under Insurance |
| D. | Encourage full Insurance and Discourage under Insurance |
| Answer» E. | |
| 1300. |
The portion of the Authorized Capital which can be called-up only on the liquidation ofthe Company is called: |
| A. | Authorized Capital |
| B. | Reserve Capital |
| C. | Issued Capital |
| D. | Called up Capital |
| Answer» C. Issued Capital | |