MCQOPTIONS
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MCQOPTIONS
This section includes 410 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 151. |
What happens when a bad debt is recovered? |
| A. | Current asset decreases |
| B. | Debtor’s balance decreases |
| C. | Profit increases |
| D. | Owner’s fund decreases |
| Answer» D. Owner’s fund decreases | |
| 152. |
When opening stock 50,000; closing stock 40,000; purchases 1,90,000 profit margin is 16.67% on sales, the sales are: |
| A. | 2,40,000 |
| B. | 2,36,000 |
| C. | 2,00,000 |
| D. | 2,44,000 |
| Answer» B. 2,36,000 | |
| 153. |
Writing of the transactions in the ledger is called…………………… |
| A. | Posting |
| B. | Journalizing |
| C. | Balancing |
| D. | Auditing |
| Answer» B. Journalizing | |
| 154. |
Assets which get exhausted to the extent of extraction are called ………. |
| A. | Tangible asset |
| B. | Intangible asset |
| C. | Wasting asset |
| D. | Fictitious asset |
| Answer» D. Fictitious asset | |
| 155. |
Narration is given at the end of |
| A. | Final accounts |
| B. | Trial balance |
| C. | Each ledger account |
| D. | Each journal entry |
| Answer» E. | |
| 156. |
Till the discounted bill is paid by the acceptor, it remains as |
| A. | a contingent liability |
| B. | a current liability |
| C. | an asset |
| D. | an expense |
| Answer» D. an expense | |
| 157. |
Which financial statement represents the a ccounting equation as – Assets = Liabilities +Owner’s equity? |
| A. | Income Statement |
| B. | Statement of Cash Flows |
| C. | Balance Sheet |
| D. | Either (A) or (B) |
| Answer» D. Either (A) or (B) | |
| 158. |
Which of the following is not an transaction? |
| A. | Goods are purchased on cash basis for Rs.1000 |
| B. | Salaries paid for the month of may 2009 |
| C. | Land is purchased for Rs.10 lacs |
| D. | An employee is dismissed from the job |
| Answer» E. | |
| 159. |
Any donation received for a specific purpose should be credited to |
| A. | Income and Expenditure Account |
| B. | Capital Fund |
| C. | Special Fund |
| D. | Either (A) or (B) |
| Answer» B. Capital Fund | |
| 160. |
Life membership fees received by a club is a |
| A. | Revenue Expenditure |
| B. | Capital Expenditure |
| C. | Deferred Revenue Expenditure |
| D. | Capital Receipt |
| Answer» E. | |
| 161. |
The abnormal loss on consignment is credited to: |
| A. | Profit and Loss Account |
| B. | Consignee’s Account |
| C. | Consignment Account |
| D. | Insurance Company Account |
| Answer» D. Insurance Company Account | |
| 162. |
Narrations are given at the end of ……………………………. |
| A. | Final accounts |
| B. | Trial balance |
| C. | Each ledger accounts |
| D. | Each journal entry |
| Answer» E. | |
| 163. |
A sale of goods to Laxman for cash should be debited to |
| A. | Laxman A/c |
| B. | Cash A/c |
| C. | Sales A/c |
| D. | Capital A/c |
| Answer» C. Sales A/c | |
| 164. |
Which of the following item is shown in the Receipt and Payment account? |
| A. | Only items of capital nature. |
| B. | Only items of revenue nature which are received during the period of accounts. |
| C. | Only items of revenue nature pertaining to the period of accounts. |
| D. | Both the items of capital and revenue nature which are received during the |
| Answer» E. | |
| 165. |
Interest on drawings is …………………………….. for the business.3 |
| A. | Expense |
| B. | Capital |
| C. | Gain |
| D. | None of the abve |
| Answer» D. None of the abve | |
| 166. |
If unsold goods costing 20,000 is taken over by venturer at 15,000, the joint ventureaccount will be credited by |
| A. | 20,000 |
| B. | 15,000 |
| C. | 5,000 |
| D. | Nil |
| Answer» C. 5,000 | |
| 167. |
Reduction in value of asset due to its continuous use is treated as |
| A. | Appreciation |
| B. | Depreciation |
| C. | Loss |
| D. | Profit |
| Answer» C. Loss | |
| 168. |
At the time of dishonor of an endorsed bill, which account would be credited by thedrawee? |
| A. | Bills Payable Account |
| B. | Drawer’s Account |
| C. | Bank Account |
| D. | Bills Dishonoured Account |
| Answer» C. Bank Account | |
| 169. |
Nominal Account represents |
| A. | Profit & Gain |
| B. | Loss / Expenses |
| C. | Both (A) and (B) |
| D. | None of the above |
| Answer» D. None of the above | |
| 170. |
At the en d of the accounting year bills receivable discounted were 32,000 would beshown |
| A. | on Liabilities side of the Balance Sheet |
| B. | on Assets side of the Balance Sheet |
| C. | by way of a note with Balance Sheet |
| D. | Not appeared anywhere |
| Answer» C. by way of a note with Balance Sheet | |
| 171. |
On receipt of goods from the consignor the consignee debits which of these accounts? |
| A. | Purchase account |
| B. | Goods account |
| C. | Consignor account |
| D. | None of the above |
| Answer» E. | |
| 172. |
If a bill drawn on 13th July 2018 for 60 days, payment must be made on |
| A. | 15th September, 2018 |
| B. | 14th September, 2018 9 |
| C. | 13th September, 2018 |
| D. | 12th September, 2018 |
| Answer» E. | |
| 173. |
Claims against company pending in court case. It is a |
| A. | Current Liability |
| B. | Current Asset |
| C. | Contingent Liability |
| D. | Un-secured Loan |
| Answer» D. Un-secured Loan | |
| 174. |
X sends out certain goods to Y, costing 1,50,000 at cost plus 25% on invoice price. ¾ of the goods were sold by R at 1,76,000. Commission 5% upto invoice value a nd 10% of any surplus above invoice value. The amount of commission will be |
| A. | 10,100 |
| B. | 11,975 |
| C. | 10,568.75 |
| D. | 9,350 |
| Answer» D. 9,350 | |
| 175. |
A withdrawal of cash from business by the proprietor should be credited to |
| A. | Drawing Account |
| B. | Capital Account |
| C. | Cash Account |
| D. | Purchase Account |
| Answer» D. Purchase Account | |
| 176. |
Legal charges paid to defend a suit on firm’s factory site is |
| A. | Capital expenditure |
| B. | Revenue expenditure |
| C. | Deferred revenue expenditure |
| D. | Prepaid expenditure |
| Answer» D. Prepaid expenditure | |
| 177. |
Petty expenses paid in cash are recorded in: |
| A. | Purchase book |
| B. | Sales book |
| C. | Petty cash book |
| D. | Purchase return book |
| Answer» D. Purchase return book | |
| 178. |
…………….. is an example of wasting asset |
| A. | Cash |
| B. | Company man |
| C. | Mines |
| D. | Loan |
| Answer» D. Loan | |
| 179. |
When Trial Balance will not tally/mismatch? |
| A. | Two errors those are compensating each other. |
| B. | A transaction recorded twice. |
| C. | Taking balance to the wrong side in the Trial balance |
| D. | If an entry is totally missed. |
| Answer» D. If an entry is totally missed. | |
| 180. |
Goods worth 272 returned by Lala passed through the books as 722. In the rectification entry |
| A. | Lala will be debited by 450 |
| B. | Lala will be debited by 272 |
| C. | Lala will be credited by 722 |
| D. | Lala will be credited by 272 |
| Answer» B. Lala will be debited by 272 | |
| 181. |
Memorandum joint venture account is |
| A. | Personal Account |
| B. | Real Account |
| C. | Nominal Account |
| D. | None of the above |
| Answer» D. None of the above | |
| 182. |
Del Credere Commission in consignment business is generally payable on |
| A. | Total sales |
| B. | only on credit sales. |
| C. | other than credit sales |
| D. | % on recovery of bad debt. |
| Answer» B. only on credit sales. | |
| 183. |
A bad debt recovered during the year will be |
| A. | Capital Expenditure |
| B. | Revenue Expenditure |
| C. | Capital Receipt |
| D. | Revenue Receipt |
| Answer» E. | |
| 184. |
When money is withdrawn from the bank ……….. the account of the customer. |
| A. | Credits |
| B. | Debits |
| C. | Either (a) or (b) |
| D. | None of these |
| Answer» C. Either (a) or (b) | |
| 185. |
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 | |
| 186. |
Total of purchase return boo is posted periodically to the credit of …… |
| A. | Purchase return book |
| B. | Cash book |
| C. | Journal proper |
| D. | None of these |
| Answer» B. Cash book | |
| 187. |
Which of the following is not a paper transaction? |
| A. | Charge of depreciation |
| B. | Discount received |
| C. | Bad debts written off |
| D. | Cash stolen from office |
| Answer» B. Discount received | |
| 188. |
Purchases book is used to record |
| A. | All purchases of goods |
| B. | All credit purchases |
| C. | All credit purchases of goods |
| D. | All credit purchases of assets other than goods |
| Answer» D. All credit purchases of assets other than goods | |
| 189. |
A withdrawal of cash from the business by the proprietor should be Credited to: |
| A. | Drawings A/c |
| B. | Capital A/c |
| C. | Cash A/c |
| D. | Current A/c |
| Answer» B. Capital A/c | |
| 190. |
The petty cashier generally works on ……………………. System |
| A. | Accrual |
| B. | Imprest |
| C. | Balancing |
| D. | None of these |
| Answer» C. Balancing | |
| 191. |
In case of not for profit making concern, endowment fund receipt is treated as |
| A. | Capital Receipt |
| B. | Revenue Receipt |
| C. | Either (A) or (B) |
| D. | Neither (A) nor (B) |
| Answer» C. Either (A) or (B) | |
| 192. |
A debit note issued to a creditor for goods returned is to be recorded in the |
| A. | Purchase return book |
| B. | Journal Proper |
| C. | Purchase book |
| D. | Bill Receivable book |
| Answer» B. Journal Proper | |
| 193. |
Accounting standards in India are issued by …………………… |
| A. | Central Govt. |
| B. | State Govt. |
| C. | Institute of chartered accountants in India |
| D. | RBI |
| Answer» D. RBI | |
| 194. |
Following is not the example of external users |
| A. | Government |
| B. | Management |
| C. | Investors |
| D. | Suppliers and other creditors |
| Answer» C. Investors | |
| 195. |
If X co-venture takes away of goods under memorandum Joint Venture Method then he willdebit these goods in his books to |
| A. | Sales Account |
| B. | Purchase Account |
| C. | Personal Account |
| D. | Joint Venture Account |
| Answer» D. Joint Venture Account | |
| 196. |
A purchased goods costing 2,60,000 for joint venture with B. B sold a major part of the goods at cost plus 25% on cost, for 2,50,000. Balance of goods were taken over by B at cost less 10%. Find out profit/loss on Joint Venture. |
| A. | (Loss) 10,000 |
| B. | 55,250 |
| C. | 44,000 |
| D. | 50,000 |
| Answer» D. 50,000 | |
| 197. |
Insurance claim received on account of machinery damaged completely by fire is |
| A. | Capital receipt |
| B. | Revenue receipt |
| C. | Capital expenditure |
| D. | Revenue expenditure |
| Answer» B. Revenue receipt | |
| 198. |
___________________does fulfill the function of both a journal and a ledger. |
| A. | Purchase book |
| B. | Cash book |
| C. | Sales book |
| D. | Bills Payable book |
| Answer» C. Sales book | |
| 199. |
Subscription received in advance to be shown in |
| A. | Liability side of the balance sheet |
| B. | Asset side of the balance sheet |
| C. | Income and Expenditure account |
| D. | Journal |
| Answer» B. Asset side of the balance sheet | |
| 200. |
B/R is a …………………………. |
| A. | Tangible asset |
| B. | Intangible asset |
| C. | Fixed asset |
| D. | Current asset |
| Answer» E. | |