MCQOPTIONS
Saved Bookmarks
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.
| 401. |
All cash purchases are entered in the _____________book |
| A. | Cash |
| B. | Purchase |
| C. | Journal prope |
| Answer» B. Purchase | |
| 402. |
A___________ transaction is one where in items are exchanged for other items |
| A. | Cash |
| B. | Credit |
| C. | Barte |
| Answer» D. | |
| 403. |
Which of the following is not a cause of difference in balance as per cash book and balance as perbank pass book— |
| A. | Errors in cash book ; |
| B. | Errors in pass book ; |
| C. | Cheques deposited and cleared; |
| D. | Cheques issued but not presented for payment |
| Answer» D. Cheques issued but not presented for payment | |
| 404. |
Cash received from debtors would be deemed as ………… of funds. |
| A. | No flow ; |
| B. | Sources ; |
| C. | Uses ; |
| D. | Gain |
| Answer» B. Sources ; | |
| 405. |
Double entry system was propounded by |
| A. | Chanakya |
| B. | Lee |
| C. | Confucius |
| D. | Luca Pacioli |
| Answer» E. | |
| 406. |
Loss of goods in transit is borne by— |
| A. | Consignee ; |
| B. | Consignor ; |
| C. | Both (a) and (b) proportionately ; |
| D. | Insurance company |
| Answer» C. Both (a) and (b) proportionately ; | |
| 407. |
Going run concern concept is not followed in — |
| A. | Bank Accounts ; |
| B. | Joint Venture Accounting ; |
| C. | Partnership Accounting ; |
| D. | Proprietorship Concerns |
| Answer» C. Partnership Accounting ; | |
| 408. |
Capital expenditures are the expenditures incurred for the: |
| A. | Short term advantage of the business. |
| B. | Long term advantage of the business. |
| C. | No advantage |
| D. | Advantage after closure of business |
| Answer» C. No advantage | |
| 409. |
An account is said to have a debit balance if — |
| A. | The amount of the debits exceeds the amount of the credits |
| B. | There are more entries on the debit side than on the credit side |
| C. | Its normal balance is debit without regard to the amounts or number of entries on the debit side ; |
| D. | The last entry of the accounting period was posted on the debit side |
| Answer» B. There are more entries on the debit side than on the credit side | |
| 410. |
Financial statements are the part of _________ |
| A. | Book- keeping |
| B. | Accounting |
| C. | None of the abov |
| Answer» C. None of the abov | |
| 411. |
ABC holds an average inventory of ` 36,000(CP) with an inventory turnover of 5 times. If the firm makesa gross profit of 25% on sales, find the total sales of the company |
| A. | 2,40,000 ; |
| B. | 2,10,000 ; |
| C. | 2,00,000 ; |
| D. | 1,80,000 |
| Answer» B. 2,10,000 ; | |
| 412. |
A Company can issue share at a discount if: |
| A. | One year have been elapsed since the date at which the company was allowed to commence business |
| B. | Share issued at a discount must belong to a class of shares already issued |
| C. | Issue must take place within two months after the date of sanction by the court or within extended time |
| D. | All of the above |
| Answer» E. | |
| 413. |
The convention of conservatism is applicable ___________________ |
| A. | In providing for discount on creditors |
| B. | In making provision for bad and doubtful debts |
| C. | Providing for depreciation |
| D. | none |
| Answer» C. Providing for depreciation | |
| 414. |
Accounting procedures and accounting practices should remain same from year to year under which of the following accounting principles: |
| A. | Dual Aspect Principle |
| B. | Materiality Principle |
| C. | Timeliness Principle |
| D. | Consistency Principle |
| Answer» E. | |
| 415. |
An obligation which may or may not materialize is a/an _______________. |
| A. | Loss |
| B. | Asset |
| C. | Contingent Liability |
| D. | None of the above |
| Answer» D. None of the above | |
| 416. |
Royalty Account is ……Sol: |
| A. | Nominal account |
| B. | Real account |
| C. | Personal Account |
| D. | None of the above |
| Answer» B. Real account | |
| 417. |
Drawee means a person who – |
| A. | Makes the order ; |
| B. | Accepts it ; |
| C. | Takes the payment on due date ; |
| D. | Creditor |
| Answer» C. Takes the payment on due date ; | |
| 418. |
Which of these is not a function of Financial Accounting |
| A. | To provide financial information to the users of the financial statements |
| B. | To portray gloomy picture of the business in order to evade tax liabilities |
| C. | To keep a systematic record of business transactions |
| D. | To depict a true and fair view of the financial position of the business |
| Answer» C. To keep a systematic record of business transactions | |
| 419. |
Trial balance will detect |
| A. | Errors of commission |
| B. | Errors of omission |
| C. | Errors of principle |
| D. | Compensating errors |
| Answer» B. Errors of omission | |
| 420. |
What is minimum Rent?Sol: |
| A. | Payment for use of land which is fixed |
| B. | Payment for the use of land on the basis of output |
| C. | A payment made to owner |
| D. | None of the above |
| Answer» B. Payment for the use of land on the basis of output | |
| 421. |
Which of the following transactions does not decrease cash? |
| A. | Purchasing inventory for cash |
| B. | Accruing operating expenses |
| C. | Paying trade accounts payable |
| D. | Purchasing securities that are not cash equivalents |
| Answer» C. Paying trade accounts payable | |
| 422. |
Payments received in advance from a customer for a contract can be |
| A. | Shown as a deduction from contract work-in-progress on asset side |
| B. | Shown as a liability |
| C. | Credited to P&L A/c |
| D. | Either (a) or (b) above |
| Answer» E. | |
| 423. |
When an asset is acquired on hire purchase system, the asset account is debited with _______ ofthe assets in the books of the hire purchaser. |
| A. | Hp price |
| B. | Cash price |
| C. | Installment price |
| D. | None of these |
| Answer» C. Installment price | |
| 424. |
Income is the output of excess or deficiency of revenue over related: |
| A. | Expired Cost |
| B. | Unexpired Cost |
| C. | Sunk Cost |
| D. | none |
| Answer» B. Unexpired Cost | |
| 425. |
The Principal amount of debentures will be repaid by the company either at the end of aspecified period or by instalments during the life time of the company. Such types of debentures are called : |
| A. | Redeemable Debentures |
| B. | Irredeemable Debentures |
| C. | Convertible Debentures |
| D. | Bearer Debentures |
| Answer» B. Irredeemable Debentures | |
| 426. |
Trading account is a _______ account |
| A. | Personal |
| B. | Real |
| C. | Nominal |
| D. | Expenses |
| Answer» D. Expenses | |
| 427. |
Debit balance of all personal accounts are collectively called |
| A. | Sundry creditors |
| B. | Sundry debtors |
| C. | Personal account balance |
| D. | Total of personal accounts |
| Answer» C. Personal account balance | |
| 428. |
In question no. 361 above find the total profit on consignment if the consignee expenses amounted to ` 8,000 |
| A. | 30,000 ; |
| B. | 28,000 ; |
| C. | 25,000 ; |
| D. | 38,000 |
| Answer» B. 28,000 ; | |
| 429. |
Who is the person take the property on the lessee agreement |
| A. | Lessor |
| B. | Lessee |
| C. | Payee |
| D. | None of these |
| Answer» C. Payee | |
| 430. |
Excess of current asset over current liabilities is known as _________ capital |
| A. | Fixed |
| B. | Working |
| C. | Curren |
| Answer» C. Curren | |
| 431. |
Which of the following statements is/are true?(i) Drawings Account is a Nominal Account (ii) Capital Account is a Real Account (iii) Sales Account is a Nominal Account (iv) Outstanding salaries account is a Nominal Account (v) Patents Account is a Personal Account |
| A. | Only (i) above |
| B. | Only (iii) above |
| C. | Both (ii) and (iii) above |
| D. | Both (ii) ,(iv) and (v)above |
| Answer» C. Both (ii) and (iii) above | |
| 432. |
Which of the following should be deducted from the share capital to find out paid up capital |
| A. | Calls in advance |
| B. | Calls in arrear |
| C. | Shares forfeited account |
| D. | Discount on issue of shares. |
| Answer» C. Shares forfeited account | |
| 433. |
For a non-trading concern, honorarium paid is:Sol: |
| A. | An Income |
| B. | An Assets |
| C. | An Expense |
| D. | None of these |
| Answer» D. None of these | |
| 434. |
From the following details find out the amount to be debited to Profit and Loss A/c as fresh provision for doubtful debts during 2012-13 Debtors ` 30,000 as on 31.03.2013; Bad debt during the year ` 1,500; Provision for bad debts as on 01.04.2012 ` 2,000; Provision for doubtful debts to be kept at 5% of total debtors |
| A. | 1,500 ; |
| B. | 1,000 ; |
| C. | 3,000 ; |
| D. | 2,000 |
| Answer» C. 3,000 ; | |
| 435. |
The manufacturing account is prepared |
| A. | To ascertain the profit or loss on the goods purchased |
| B. | To ascertain the cost of manufactured goods |
| C. | To show the sale proceeds from the goods produced during the year |
| D. | None of the above. |
| Answer» C. To show the sale proceeds from the goods produced during the year | |
| 436. |
In calculation of depreciation, all of the following items are actually estimates except: |
| A. | Useful Life |
| B. | Residual Value |
| C. | Historical Cost |
| D. | Salvage Value |
| Answer» D. Salvage Value | |
| 437. |
Outward Invoice issued is a source document of |
| A. | Purchase Book |
| B. | Sales Book |
| C. | Return Inward Book |
| D. | Return Outward Book |
| Answer» C. Return Inward Book | |
| 438. |
The balance of royalty payable account is transferred to—Sol: |
| A. | Profit and loss account |
| B. | Royalties suspense account |
| C. | Production account |
| D. | all |
| Answer» D. all | |
| 439. |
` 500 paid as cartage on new Plant and Machinery, this was debited to Carriage Inward A/c. This is an error of- |
| A. | Principle ; |
| B. | Omission ; |
| C. | Commission ; |
| D. | Compensating |
| Answer» B. Omission ; | |
| 440. |
Bills receivable as endorsed is debited to |
| A. | creditors account |
| B. | bills receivable account |
| C. | debtors account |
| D. | bills payable account |
| Answer» B. bills receivable account | |
| 441. |
When an existing company offers it shares for sale to the existing shareholders, it is knownas |
| A. | Private placement |
| B. | Bonus issue. |
| C. | Right issue |
| D. | Offer for sale |
| Answer» D. Offer for sale | |
| 442. |
AS-6 (revised) is applicable to which one of the following assets? |
| A. | Goodwill |
| B. | Live stock |
| C. | Plantation |
| D. | Plant and Machinery |
| Answer» E. | |
| 443. |
Fixed assets are held by business for _____: |
| A. | Converting into cash |
| B. | Generating revenue |
| C. | Resale |
| D. | None of the above |
| Answer» C. Resale | |
| 444. |
Hirer charges depreciation on |
| A. | hire purchase price |
| B. | cash price |
| C. | lower of the two |
| D. | none of these |
| Answer» C. lower of the two | |
| 445. |
Rent outstanding for the month of December‘12 will appear on- |
| A. | Debit side of Cash Book ; |
| B. | Credit side of Cash Book ; |
| C. | Either side ; |
| D. | Nowhere |
| Answer» E. | |
| 446. |
The cash discount allowed to a debtor should be credited to |
| A. | Discount Account |
| B. | Customer’s Account |
| C. | Sales Account |
| D. | Suspense Account |
| Answer» C. Sales Account | |
| 447. |
An amount spent in connection with obtaining a License for starting the factory is |
| A. | Revenue Expenditure |
| B. | Capital Expenditure |
| C. | Pre-paid Expenditure |
| D. | None of the above |
| Answer» C. Pre-paid Expenditure | |
| 448. |
Which of the following is a current liability? |
| A. | Prepaid expenses |
| B. | Trademark |
| C. | Discount on issue of shares |
| D. | Outstanding Salaries |
| Answer» E. | |
| 449. |
Normally value of closing stock ________ in the trial balance |
| A. | Appears |
| B. | Does not appear |
| C. | May or may not appear |
| D. | Sometime appear |
| Answer» C. May or may not appear | |
| 450. |
Reduction in the book value of an asset over a period of time is called |
| A. | Appreciation |
| B. | Depreciation |
| C. | Proportion |
| D. | Depletion |
| Answer» C. Proportion | |