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.
| 1551. |
The adjustment to be made for income received in advance is: |
| A. | Add income received in advance to respective income and show it as a liability |
| B. | Deduct income received in advance from respective income and show it as a liability |
| C. | Add income received in advance to respective income and show it as asset |
| D. | Deduct income received in advance from respective income and show it as an asset in the Balance Sheet |
| Answer» C. Add income received in advance to respective income and show it as asset | |
| 1552. |
The book that records small payment. |
| A. | Single column |
| B. | Double column |
| C. | Petty cash boo |
| Answer» D. | |
| 1553. |
The objectives od fixing dead rent is ………..Sol: |
| A. | Landlord should not get more than a certain amount per year |
| B. | Landlord must receive a minimum amount in case of low output or sales |
| C. | Both A and B |
| D. | None of the above |
| Answer» C. Both A and B | |
| 1554. |
All receipts of capital nature are shown in :Sol: |
| A. | Income and Expenditure A/c |
| B. | Balance Sheet |
| C. | P. & L. A/c |
| D. | None of these |
| Answer» C. P. & L. A/c | |
| 1555. |
Which of the following explains the imprest system of operating petty cash? |
| A. | Weekly expenses cannot exceed a set amount |
| B. | The exact amount of expenses is reimbursed at intervals to maintain a fixed float |
| C. | All expenses out of the petty cash must be properly authorized |
| D. | Regular equal amounts of cash are tr |
| Answer» E. | |
| 1556. |
Amount paid to Gagan posted to the credit side of his account would affect |
| A. | Gagan's account ; |
| B. | Cash account ; |
| C. | Cash account and Gagan's account ; |
| D. | None of these |
| Answer» B. Cash account ; | |
| 1557. |
Cost of fixed asset minus accumulated depreciation expenses of the fixed asset: |
| A. | Book value of a fixed asset |
| B. | Market value of a fixed asset |
| C. | Historical cost of a fixed asset |
| D. | Recoverable amount of a fixed asset |
| Answer» B. Market value of a fixed asset | |
| 1558. |
Amortization applies to |
| A. | Current assets. |
| B. | Wasting assets. |
| C. | Intangible assets. |
| D. | Fixed assets |
| Answer» D. Fixed assets | |
| 1559. |
Arrangement of Balance Sheet in a logical order is known as — |
| A. | Dressing Balance Sheet ; |
| B. | Marshalling Balance Sheet; |
| C. | Formatting Balance Sheet ; |
| D. | Make up of Balance Sheet |
| Answer» C. Formatting Balance Sheet ; | |
| 1560. |
Goodwill is to be calculated at one and half year’ purchase of average profit of last 5years. The firm earned profits during 3 years as ₹ 20,000 ₹ 18,000 and ₹ 9,000 and sufferedlosses of ₹ 2,000 and ₹5,000 in last 2 years. The amount of goodwill will be |
| A. | Rs 12000 |
| B. | Rs 10000 |
| C. | Rs 15000 |
| D. | None of the Above |
| Answer» B. Rs 10000 | |
| 1561. |
Sale of old newspapers is:Sol: |
| A. | Capital Receipt |
| B. | Revenue Receipt |
| C. | Asset |
| D. | Profit |
| Answer» C. Asset | |
| 1562. |
Which of these is not a special purpose journal |
| A. | Cash journal ; |
| B. | Purchase journal ; |
| C. | Debtors journal ; |
| D. | Sales journal |
| Answer» D. Sales journal | |
| 1563. |
Rs. 5000 spent on replacement of worn out part of the machine will be charged as: |
| A. | Capital expenditure |
| B. | Revenue Expenditure |
| C. | Deferred Revenue Expenditure |
| D. | none |
| Answer» C. Deferred Revenue Expenditure | |
| 1564. |
Credit sale can be obtained by preparing: |
| A. | Cash book |
| B. | Statement of affairs |
| C. | Debtors A/c |
| D. | Creditors A/c |
| Answer» D. Creditors A/c | |
| 1565. |
___________denote goods brought for sale. |
| A. | Sales |
| B. | Purchase |
| C. | Expense |
| Answer» C. Expense | |
| 1566. |
Goods distributed as free samples is debited to |
| A. | Advertisement A/c |
| B. | Charity A/c |
| C. | Purchases A/c |
| D. | Goods A/c |
| Answer» B. Charity A/c | |
| 1567. |
Survey expenses for marine insurance claim must be |
| A. | Added to claim; |
| B. | Added to legal charges; |
| C. | Added to administrative charges; |
| D. | None of the above. |
| Answer» B. Added to legal charges; | |
| 1568. |
Single entry system of accounts is maintained by ______ |
| A. | Partnership |
| B. | Company |
| C. | Sole trader |
| D. | None of these |
| Answer» D. None of these | |
| 1569. |
___________ is specially suited to mines, oil wells, quarries, sandpits and similar assetsof a wasting character. |
| A. | Depletion |
| B. | Depreciation |
| C. | Amortisation |
| D. | Dilapidation |
| Answer» B. Depreciation | |
| 1570. |
This software is a package which is used for managing the entire organisation in acomprehensive. |
| A. | Enterprise Resource Planning software |
| B. | Pre-packaged accounting software |
| C. | Spreadsheet software |
| D. | Customised accounting packages |
| Answer» B. Pre-packaged accounting software | |
| 1571. |
Depletion applies to____ |
| A. | Current assets. |
| B. | Wasting assets |
| C. | Intangible assets |
| D. | Fixed assets |
| Answer» E. | |
| 1572. |
Profit or loss on joint venture business is shared by the co-venturers —— |
| A. | Equally ; |
| B. | In the ratio of capital contributed ; |
| C. | In the agreed upon ratio ; |
| D. | A per seniority |
| Answer» D. A per seniority | |
| 1573. |
Sale of grass in the case of a sports club is |
| A. | An assets |
| B. | Revenue receipt |
| C. | Capital receipt |
| D. | Income |
| Answer» C. Capital receipt | |
| 1574. |
Wages paid on for the erection of machinery is debited to |
| A. | Machinery accounting |
| B. | Wage accounting |
| C. | Cash accountin |
| Answer» B. Wage accounting | |
| 1575. |
` 4,500 paid to Madan as salary for the month of December‘12, this was debited to his A/c, this is a/an ……………………… error. |
| A. | Principle ; |
| B. | Omission ; |
| C. | Commission ; |
| D. | Compensating |
| Answer» D. Compensating | |
| 1576. |
loose tools are shown in the B/S under the head. |
| A. | Fixed asset |
| B. | Investment |
| C. | Current asset |
| D. | Miscellaneous expenditure |
| Answer» D. Miscellaneous expenditure | |
| 1577. |
The ……….of a vendor is also an important factor to consider while opting for acomputerized accounting software |
| A. | Level of profit |
| B. | Honesty |
| C. | Capability |
| D. | None of the above |
| Answer» D. None of the above | |
| 1578. |
The rate of discount on shares cannot exceed |
| A. | 5% |
| B. | 10% |
| C. | 6% |
| D. | None of these |
| Answer» C. 6% | |
| 1579. |
Which of the following is true with respect to providing depreciation under diminishing balance method? |
| A. | The amount of depreciation keeps increasing every year while the rate of depreciation keeps decreasing |
| B. | The amount of depreciation and the rate of depreciation decrease every year |
| C. | The amount of depreciation decreases while the rate of depreciation remains the same |
| D. | The amount of depreciation and the rate of depreciation increases every year |
| Answer» D. The amount of depreciation and the rate of depreciation increases every year | |
| 1580. |
Grouping of Accounts means the classification of data from:Sol: |
| A. | Assets, Capital, and Liabilities |
| B. | Assets, Capital, Liabilities, Revenues & Expenses |
| C. | Assets, Owners equity, Revenue & Expenses |
| D. | Capital, Liabilities, Revenues, & Expenses |
| Answer» C. Assets, Owners equity, Revenue & Expenses | |
| 1581. |
Which of the following statements best describes the purpose of depreciation? |
| A. | Regular reduction of asset value to correspond to changes in market value as the asset ages |
| B. | A process of correlating the market value of an asset with its gradual decline in physical efficiency |
| C. | Allocation of cost in a manner that will ensure that Plant and Equipment items are not carried on the Balance Sheet in excess of net realizable value |
| D. | Allocation of the cost of an asset to the periods in which services are received from the asset |
| Answer» E. | |
| 1582. |
It refers to the system of recording, organising, summarising, analysing, interpreting andcommunicating the financial data of a business.Sol: |
| A. | Manual Accounting |
| B. | Computerised Accounting |
| C. | Auditing |
| D. | Human Resource Accounting |
| Answer» C. Auditing | |
| 1583. |
How many parties are generally found in a Bill of Exchange |
| A. | 4 ; |
| B. | 2 ; |
| C. | 3 ; |
| D. | 5 |
| Answer» D. 5 | |
| 1584. |
Payment received from Debtor |
| A. | Decreases the Total Assets |
| B. | Increases the Total Assets |
| C. | Results in no change in the Total Assets |
| D. | Increases the Total Liabilities |
| Answer» D. Increases the Total Liabilities | |
| 1585. |
Revenue is generally recognized as being earned at the point of time |
| A. | Sale is effected |
| B. | Cash is effected |
| C. | Production is completed |
| D. | All of the above |
| Answer» B. Cash is effected | |
| 1586. |
Over statement of sales may lead to- |
| A. | Over statement of profit of current year; |
| B. | Over statements of profit of next year; |
| C. | Under statement of profit of current year ; |
| D. | All the three |
| Answer» B. Over statements of profit of next year; | |
| 1587. |
Which of the following is NOT a characteristic of Cash Book? |
| A. | It has two identical sides—left hand side, the debit side and right hand side, the credit side |
| B. | It verifies the arithmetic accuracy of posting of entries from the Journal to the Ledger |
| C. | The difference between the total of two sides of cash book shows cash in hand |
| D. | It always shows debit balance. It can never show credit balance |
| Answer» E. | |
| 1588. |
A short description of every transaction made in the journal is called |
| A. | Summary |
| B. | Description |
| C. | Narratio |
| Answer» D. | |
| 1589. |
Credit balance as per Cash Book mean- |
| A. | Surplus cash ; |
| B. | Bank overdraft ; |
| C. | Terms deposits with bank ; |
| D. | None of these |
| Answer» C. Terms deposits with bank ; | |
| 1590. |
Old furniture sold should be credited to __________ |
| A. | Sales account |
| B. | Furniture account |
| C. | Cash accoun |
| Answer» C. Cash accoun | |
| 1591. |
What does the balance in Memorandum Joint Venture A/c shows— |
| A. | Profit or Loss ; |
| B. | Closing Stock ; |
| C. | Balance due from other Co-venturer |
| D. | Difference in Trial Balance |
| Answer» B. Closing Stock ; | |
| 1592. |
While finalizing the current year‘s accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by ` 50,000. As a result |
| A. | Previous year‘s profit is overstated and current year‘s profit is also overstated. |
| B. | Previous year‘s profit is understated and current year‘s profit is overstated. |
| C. | Previous year‘s profit is overstated and current year‘s profit is understated. |
| D. | There will be no impact on the profit of either the previous year or the current year. |
| Answer» D. There will be no impact on the profit of either the previous year or the current year. | |
| 1593. |
AB Ltd. has signed at 31st December, 2017 the Balance Sheet date, a contract where the Total Revenue is estimated at ` 15 Crores and Total Cost is estimated at ` 20 Crores. No work began on the contract. Is the Contractor required to give any accounting effect for the year ended 31st December, 2017? |
| A. | Recognize expected loss of `5 Crores |
| B. | Recognize `15 Crores as Profit |
| C. | No entry |
| D. | None of the above |
| Answer» B. Recognize `15 Crores as Profit | |
| 1594. |
Under ______ system , the buyer gets ownership of goods immediately |
| A. | Installment |
| B. | HP |
| C. | Installment and HP |
| D. | None of these |
| Answer» B. HP | |
| 1595. |
In a Cash Book Debit balance of `112 brought forward as credit balance of ` 121, while preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the starting point: |
| A. | 112 to be added |
| B. | 121 to be added |
| C. | 233 to be added |
| D. | 112 to be subtracted |
| Answer» D. 112 to be subtracted | |
| 1596. |
The amount paid as premium for an insurance policy taken for redemption of debentures is credited at the end of the accounting period to: |
| A. | Insurance Policy Account |
| B. | Debentures Redemption Fund Account |
| C. | Profit and Loss Appropriation Account |
| D. | Insurance Premium |
| Answer» C. Profit and Loss Appropriation Account | |
| 1597. |
Fixed payment made for the used of an assets is called Financial LeaseSol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 1598. |
In which of the following methods, the cost of the asset is spread over in equal proportion during itsuseful economic life? |
| A. | Straight-line method |
| B. | Written down value method |
| C. | Units-of-production method |
| D. | Sum-of-the years‘-digits method |
| Answer» B. Written down value method | |
| 1599. |
Income and Expenditure Account is a |
| A. | Nominal Account |
| B. | Real Account |
| C. | Personal Account |
| D. | Artificial Personal Account |
| Answer» B. Real Account | |
| 1600. |
Which of the following account is mainly prepared at the time of dissolution of thefirm |
| A. | Revaluation A/c |
| B. | Goodwill A/c |
| C. | Realization A/c |
| D. | Memorandum Revaluation A/c |
| Answer» D. Memorandum Revaluation A/c | |