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.
| 1501. |
Which of the following is not depreciated |
| A. | Building ; |
| B. | Land ; |
| C. | Plant and Machinery ; |
| D. | Office equipment |
| Answer» C. Plant and Machinery ; | |
| 1502. |
The appropriation account is also called: |
| A. | Statement of changes in owner’s equity |
| B. | Balance sheet |
| C. | Cash Flow statement |
| D. | Trading and Profit and Loss account |
| Answer» B. Balance sheet | |
| 1503. |
Tick the correct statement |
| A. | Petty cash is an expense ; |
| B. | Balance Sheet is also known as a positional statement ; |
| C. | Revaluation A/c is Real A/c ; |
| D. | Depreciation is a process of valuation |
| Answer» C. Revaluation A/c is Real A/c ; | |
| 1504. |
When there is a change in the current partners’ association that results in ending the existingagreement and initiate a formation of a new agreement is known asSol: |
| A. | Revaluation of Partnership |
| B. | Reconstitution of Partnership |
| C. | Realisation of Partnership |
| D. | None of the Above |
| Answer» C. Realisation of Partnership | |
| 1505. |
On early retirement of a B/E who suffers loss of interest – |
| A. | Drawee ; |
| B. | Drawer ; |
| C. | Payee ; |
| D. | None |
| Answer» C. Payee ; | |
| 1506. |
A collection of all accounts is a ___________ |
| A. | Journal |
| B. | Ledger |
| C. | Balance shee |
| Answer» C. Balance shee | |
| 1507. |
Purchase of a laptop for office use wrongly debited to Purchase Account. It is an error of |
| A. | Omission |
| B. | Commission |
| C. | Principle |
| D. | Misposting |
| Answer» D. Misposting | |
| 1508. |
Which of the following is a Nominal A/c |
| A. | Outstanding Salary A/c ; |
| B. | Rent A/c ; |
| C. | SBI A/c ; |
| D. | Debtors A/c |
| Answer» C. SBI A/c ; | |
| 1509. |
Outstanding expenditure is a __________ account. |
| A. | Nominal |
| B. | Personnel |
| C. | Real |
| D. | Current |
| Answer» C. Real | |
| 1510. |
Which book the work classification is done |
| A. | trial balance |
| B. | ledger |
| C. | balance sheet |
| D. | Journal |
| Answer» C. balance sheet | |
| 1511. |
Find the value of opening stock from the following data.Purchases ` 1,50,000, Closing stock ` 30,000 , Sales `2,20,000, Gross profit ` 40,000. |
| A. | 50,000 ; |
| B. | 55,000 ; |
| C. | 60,000 ; |
| D. | 65,000 |
| Answer» D. 65,000 | |
| 1512. |
An Investment in one asset A/c may lead to – |
| A. | Increase in liability A/c ; |
| B. | Decrease in A/c asset ; |
| C. | Each a or b ; |
| D. | Both a/b. |
| Answer» D. Both a/b. | |
| 1513. |
The balance of the forfeited shares account after re-issue of forfeited shares is transferred to : |
| A. | Statement of Profit & Loss |
| B. | Share Capital A/c |
| C. | Capital Reserve A/c |
| D. | General Reserve A/c |
| Answer» D. General Reserve A/c | |
| 1514. |
If the amount of super profit is negative ,what des it indicateSol: |
| A. | There is no goodwill |
| B. | There is average goodwill |
| C. | Both |
| D. | None |
| Answer» B. There is average goodwill | |
| 1515. |
On the debit side of a Sales A/c entry can be for which of these reasons |
| A. | Sales returns ; |
| B. | Discount allowed ; |
| C. | Both ; |
| D. | Additional sales |
| Answer» D. Additional sales | |
| 1516. |
Which of the following is an one sided error |
| A. | 500 purchase of old equipment not recorded in the books of A/c at all; |
| B. | 500 being expense on travelling expense credited to travelling expenses; |
| C. | Both ; |
| D. | None |
| Answer» C. Both ; | |
| 1517. |
Goods sent by branch X to branch Y will be debited to ______ |
| A. | branch Y |
| B. | branch X |
| C. | head office |
| D. | goods sent account |
| Answer» B. branch X | |
| 1518. |
At the end of the year 2017-18, Prepaid Insurance Premium `7,500 appeared in theTrial Balance, it will be shown |
| A. | only in Profit & Loss Account. |
| B. | only in Balance Sheet. |
| C. | both in Profit & Loss Account and in Balance Sheet. |
| D. | not in Both in Profit & Loss Account and in Balance Sheet. |
| Answer» C. both in Profit & Loss Account and in Balance Sheet. | |
| 1519. |
A second hand truck was purchased for `75,000, `10,000 was spent on its repair, `2,000 to get the truck registered in the name of the firm and `1,000 as dealers commission. The capitalized value of truck will be- |
| A. | 88,000 ; |
| B. | 87,000 ; |
| C. | 85,000 ; |
| D. | 75,000 |
| Answer» B. 87,000 ; | |
| 1520. |
Closing stock appearing in the Trial Balance is shown in – |
| A. | Trading A/c and Balance Sheet ; |
| B. | Profit and Loss A/c ; |
| C. | Balance Sheet only |
| D. | Trading A/c only |
| Answer» D. Trading A/c only | |
| 1521. |
Carriage on goods purchased is shown in — |
| A. | Profit and Loss A/c ; |
| B. | Capitalized with work in progress ; |
| C. | Trading A/c; |
| D. | Shown in Balance Sheet |
| Answer» D. Shown in Balance Sheet | |
| 1522. |
If debentures of the nominal value of Rs. 1,00,000 are issued at discount of 10% for net assets worth Rs. 80,000, the balance of Rs. 10,000 will be debited to: |
| A. | Goodwill Account |
| B. | Capital Reserve Account |
| C. | Profit & Loss Account |
| D. | Suspense account |
| Answer» B. Capital Reserve Account | |
| 1523. |
A sent some goods to B to be sold on consignment basis. 1/10 of the goods valued ` 25,000 were lost in transit. Find the value of goods sent of consignment basis — |
| A. | 2,50,000 ; |
| B. | 25,000 ; |
| C. | 2,500 ; |
| D. | None |
| Answer» B. 25,000 ; | |
| 1524. |
An exclusive legal right in the form of Logo, Brand, Symbol, Name of Design is known as ---- Sol: |
| A. | Trademark |
| B. | Patent Right |
| C. | Copy Right |
| D. | all |
| Answer» B. Patent Right | |
| 1525. |
Rules of revenue recognition determine that earning process should be either complete ornear completion under: |
| A. | Realization Concept |
| B. | Materiality Concept |
| C. | Historical Record Concept |
| D. | Accounting Period Concept |
| Answer» B. Materiality Concept | |
| 1526. |
Which of the following cannot be detected by Trial Balance? |
| A. | Errors of Omission; |
| B. | Errors of Principal; |
| C. | Errors of Misposting; |
| D. | All of the above. |
| Answer» E. | |
| 1527. |
The total of debit side of discount column of Cash Book is- |
| A. | Balanced with credit side of discount column ; |
| B. | Posted to Discount Allowed A/c; |
| C. | Posted to Discount Received A/c ; |
| D. | Posted to Profit & Loss A/c |
| Answer» C. Posted to Discount Received A/c ; | |
| 1528. |
Receipts and payment accounts includes all receipts and payments of |
| A. | Capital nature |
| B. | Revenue nature |
| C. | Cash nature |
| D. | None of these |
| Answer» C. Cash nature | |
| 1529. |
Business expenses excludes… |
| A. | Fire insurance premium of office building ; |
| B. | LIC premium on the life of proprietor ; |
| C. | Interest on capital ; |
| D. | Repair of office furniture |
| Answer» C. Interest on capital ; | |
| 1530. |
Educational institutions are |
| A. | Profit organizations |
| B. | Non profit organizations |
| C. | Wealth organization |
| D. | Social organization |
| Answer» C. Wealth organization | |
| 1531. |
The type of A/c with a named credit balance is- |
| A. | Expenses A/c ; |
| B. | Assets A/c ; |
| C. | Revenue A/c ; |
| D. | Suspense A/c |
| Answer» D. Suspense A/c | |
| 1532. |
Which of the following fixed asset is not depreciated in ordinary circumstances: |
| A. | Plant and Machinery |
| B. | Building |
| C. | Land |
| D. | Equipment |
| Answer» D. Equipment | |
| 1533. |
Which of these accounts are not opened in a joint venture |
| A. | Stock reserve ; |
| B. | Joint bank A/c ; |
| C. | Joint venture A/c ; |
| D. | Co-venturers personal A/c |
| Answer» B. Joint bank A/c ; | |
| 1534. |
On liquidation of company, principal amount of debentures is returned : |
| A. | First of All |
| B. | Last of All |
| C. | Before Equity Capital |
| D. | After Equity Capital |
| Answer» D. After Equity Capital | |
| 1535. |
Sales return account is a _______ account |
| A. | Personal |
| B. | Nominal |
| C. | Real |
| D. | Current |
| Answer» C. Real | |
| 1536. |
Which one of the following is a capital expenditure? |
| A. | Compensation paid to Directors on termination of their services |
| B. | Expenditure incurred in connection with the renewal of a Trade Mark. |
| C. | Gratuities paid to Directors on termination of their services. |
| D. | Royalty paid in installments for the purchase of rights to manufacture and sell patient medicines. |
| Answer» B. Expenditure incurred in connection with the renewal of a Trade Mark. | |
| 1537. |
An expenditure incurred to derive long term advantage is |
| A. | Revenue expenditure |
| B. | Expense |
| C. | Capital expenditure |
| D. | Deferred capital expenditure |
| Answer» D. Deferred capital expenditure | |
| 1538. |
Shortworking means……Sol: |
| A. | Excess of Minimum rent over royalty |
| B. | Excess of royalty over minimum rent |
| C. | None of the above |
| D. | all |
| Answer» B. Excess of royalty over minimum rent | |
| 1539. |
Mr. Rohit, owner of Rohit Furniture Ltd., owns a personal residence that cost ` 6,00,000, but has a market value of ` 9,00,000. During preparation of the financial statement for the business, the entire value of property was ignored and was not shown in the financial statements. The principle that was followed was |
| A. | The concept of the Business Entity |
| B. | The concept of the Cost Principle |
| C. | The concept of Going Concern Principle |
| D. | The concept of Duality Principle |
| Answer» E. | |
| 1540. |
In this method depreciation is charged on the cost of asset every year: |
| A. | Straight Line Method |
| B. | Written Down Value Method |
| C. | Sum of Years digit method |
| D. | none |
| Answer» B. Written Down Value Method | |
| 1541. |
Income statement of a Charitable Institution is known as |
| A. | Statement of profit and loss |
| B. | Receipts and Payments Account |
| C. | Income and Expenditure Account |
| D. | Profit and Loss Account |
| Answer» D. Profit and Loss Account | |
| 1542. |
Kuntal draws a bill on shyam for ` 7,000.Kuntal endorsed it to Ram. Ram endorsed itto Rahim. The payee of the bill will be: |
| A. | Kuntal |
| B. | Ram |
| C. | Shyam |
| D. | Rahim |
| Answer» E. | |
| 1543. |
Which of the following is an item of capital expenditure? |
| A. | Research and development costs during the year |
| B. | Interest on borrowed fund utilized for acquisition of Office Furniture |
| C. | Installation charges paid in conjunction with the purchase of Office Equipment |
| D. | Monthly rent of a machinery used in the business |
| Answer» D. Monthly rent of a machinery used in the business | |
| 1544. |
Depletion Method of depreciation is used in: |
| A. | Cattle, Loose tools etc. |
| B. | Mines, Quarries etc. |
| C. | Machinery, Building, Furniture etc. |
| D. | none |
| Answer» C. Machinery, Building, Furniture etc. | |
| 1545. |
The fees are collected only once at the time of admission of a member, hence Entrance Fees should be treated as 'Revenue Receipt'. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 1546. |
Balance of receipts and payments account represents |
| A. | Cash in hand or at bank |
| B. | Surplus |
| C. | Deficit |
| D. | Reserve |
| Answer» B. Surplus | |
| 1547. |
Which of these is not a feature of a Joint venture |
| A. | Continuing business ; |
| B. | No firm name ; |
| C. | Partners called co-venturer; |
| D. | Partnership for limited purpose |
| Answer» B. No firm name ; | |
| 1548. |
When there is no Goodwill Account in the books and goodwill israised,…………….account will be debitedSol: |
| A. | Partner’s Capital |
| B. | Goodwill |
| C. | Cash |
| D. | Reserve |
| Answer» C. Cash | |
| 1549. |
From the following details ascertain the adjusted Bank balance as per Cash Book — Overdraft as per Cash Book ` 80,000; Cheque received entered twice in the Cash Book ` 5,000; Credit side of bank column cast short by ` 500; Bank charges amounting to ` 200 entered twice; Cheque issued but dishonoured ` 2,000 |
| A. | 80,500 ; |
| B. | 85,500 ; |
| C. | 85,000 ; |
| D. | 85,300 |
| Answer» E. | |
| 1550. |
When a machinery is purchased for cash, the cash balance is reduced and to that extent, the amount of machinery as an asset is recorded. This is done to follow which of the following accounting principles: |
| A. | Dual Aspect Principle |
| B. | Materiality Principle |
| C. | Timeliness Principle |
| D. | Consistency Principle |
| Answer» B. Materiality Principle | |