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.
| 251. |
Advertising expenses for launching a new product of the company is____________. |
| A. | Revenue expenditure |
| B. | Capital expenditure |
| C. | Deferred revenue expenditure |
| D. | Deferred capital expenditure |
| Answer» D. Deferred capital expenditure | |
| 252. |
Which one is not considered as capital expenditure? |
| A. | Depreciation |
| B. | Architect’s fees |
| C. | Demolition cost |
| D. | Legal cost for buying property |
| Answer» E. | |
| 253. |
When incomes recognised on cash basis and expenditure recognised on accrual basis, thesystem termed as |
| A. | Accrual basis of accounting |
| B. | Cash basis of accounting |
| C. | Mercantile basis of accounting |
| D. | Hybrid basis of accounting |
| Answer» E. | |
| 254. |
Which of the following is of capital nature: |
| A. | Purchase of goods |
| B. | Cost of repair |
| C. | Wages paid for installation of machinery |
| D. | Ret of factory |
| Answer» D. Ret of factory | |
| 255. |
Which of the following term is applicable about consignment? |
| A. | Sale of goods |
| B. | Hypothecation of goods |
| C. | Shipment of goods |
| D. | Mortgage of goods |
| Answer» B. Hypothecation of goods | |
| 256. |
Whenever errors are noticed in the accounting records, they should be rectified. |
| A. | at the time of preparation of Trial Balance. |
| B. | without waiting the accounting year to end. |
| C. | after the preparation of final accounts. |
| D. | in the next accounting year. |
| Answer» C. after the preparation of final accounts. | |
| 257. |
Which of the following items are shown in the income and expenditure 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. |
| Answer» D. Both the items of capital and revenue nature. | |
| 258. |
Difference of totals of both debit and credit side of the trial balance is transferred to: |
| A. | Suspense account |
| B. | Trading account |
| C. | P & L account |
| D. | Current account |
| Answer» B. Trading account | |
| 259. |
Which one of these documents is not required for bank reconciliation? |
| A. | Bank Column of cash book |
| B. | Bank pass book |
| C. | Previous year’s balance sheet |
| D. | Bank statement |
| Answer» D. Bank statement | |
| 260. |
Salary and wages is debited to: |
| A. | Trading account |
| B. | P/L account |
| C. | Profit and loss appropriation account |
| D. | Balance sheet |
| Answer» C. Profit and loss appropriation account | |
| 261. |
An expenditure is capital in nature when |
| A. | The receiver of the amount is going to treat it for the purchase of fixed assets. |
| B. | It increases the quantity of fixed assets. |
| C. | It is paid as interest on loans for the business. |
| D. | It maintains of fixed asset. |
| Answer» C. It is paid as interest on loans for the business. | |
| 262. |
If two or more transactions of the same nature are journalize together having either the debit or credit account common is known as: |
| A. | Compound journal entry |
| B. | Separate journal entry |
| C. | Posting |
| D. | Journalizing |
| Answer» B. Separate journal entry | |
| 263. |
Which of these errors affects only one account? |
| A. | Error of casting |
| B. | Error of posting |
| C. | Error of carry forward |
| D. | All of the above |
| Answer» E. | |
| 264. |
When preparing a bank reconciliation statement, if you start with debit balance as per cash book cheques sent to bank but not collected should be |
| A. | Added |
| B. | Deducted |
| C. | Not required to be adjusted |
| D. | None of the above |
| Answer» C. Not required to be adjusted | |
| 265. |
In case of debit balance , the words …………. are written on the debit side. |
| A. | To balance b/d |
| B. | To balance c/d |
| C. | By balance b/d |
| D. | By balance c/d |
| Answer» B. To balance c/d | |
| 266. |
Accounting does not record non-financial transactions because of |
| A. | Entity concept |
| B. | Accrual concept |
| C. | Cost concept |
| D. | Money measurement concept |
| Answer» B. Accrual concept | |
| 267. |
At the time of preparation of financial accounts, balance of Bad Debts Recovered Accountwill be transferred to |
| A. | Debtor’s Personal a/c |
| B. | Profit & Loss a/c |
| C. | Bad Debts a/c |
| D. | Profit & Loss Appropriation a/c |
| Answer» E. | |
| 268. |
……………………… will generally show a debit balance. |
| A. | Bank loan |
| B. | Bad debt recovered |
| C. | Salary payable |
| D. | Drawings |
| Answer» E. | |
| 269. |
Journal proper records …………………………… |
| A. | Credit purchase |
| B. | Credit sales |
| C. | Purchase of asset on credit |
| D. | Sales return |
| Answer» D. Sales return | |
| 270. |
…………………………….. principle requires that the same method should be used from one accounting period to the next . |
| A. | Conservation |
| B. | Business entity |
| C. | Consistency |
| D. | Money measurement |
| Answer» D. Money measurement | |
| 271. |
The cost computed by dividing total manufacturing cost and total units manufactured is classified as |
| A. | per unit cost |
| B. | total cost |
| C. | total indirect cost |
| D. | total effective cost |
| Answer» B. total cost | |
| 272. |
The total manufacturing cost is $40000 and the total units manufactured is 500 units then the per unit cost is |
| A. | $80 |
| B. | $65 |
| C. | $7 |
| D. | $35 |
| Answer» B. $65 | |
| 273. |
The cost per unit is $70 and the total number of units manufactured in company are 6000 then the total manufacturing cost is |
| A. | $240,000.00 |
| B. | $320,000 |
| C. | $210,000 |
| D. | $420,000 |
| Answer» E. | |
| 274. |
The companies in the industry that purchase the finished goods and further sell the products into the market are classified as |
| A. | service sector companies |
| B. | raw material companies |
| C. | manufacturing sector companies |
| D. | merchandising sector companies |
| Answer» E. | |
| 275. |
The companies that are part industry of service providers are |
| A. | manufacturing sector companies |
| B. | merchandising sector companies |
| C. | service sector companies |
| D. | raw material companies |
| Answer» D. raw material companies | |
| 276. |
The companies that buys the raw materials and convert them into the finished goods for customers are included in |
| A. | manufacturing sector companies |
| B. | merchandising sector companies |
| C. | service sector companies |
| D. | raw material companies |
| Answer» B. merchandising sector companies | |
| 277. |
The normal activity range in which there is relationship between activity and costs is classified as |
| A. | relevant range |
| B. | irrelevant range |
| C. | cause range |
| D. | effective range |
| Answer» B. irrelevant range | |
| 278. |
The cost per unit is $50 and the total number of units manufactured in company are 5000 then the total manufacturing cost is |
| A. | $220,000 |
| B. | $232,000 |
| C. | $250,000 |
| D. | $25,000 |
| Answer» D. $25,000 | |
| 279. |
The inventory which consists of stock waiting to be used In the process of manufacturing is classified as |
| A. | finished goods inventory |
| B. | indirect material inventory |
| C. | direct materials inventory |
| D. | work in process inventory |
| Answer» D. work in process inventory | |
| 280. |
The service sector companies includes |
| A. | cellular phone producers |
| B. | mutual fund companies |
| C. | radio stations |
| D. | wholesalers |
| Answer» C. radio stations | |
| 281. |
The manufacturing sector companies includes |
| A. | distribution companies |
| B. | textile companies |
| C. | retailing companies |
| D. | internet service providers |
| Answer» C. retailing companies | |
| 282. |
In cost accounting the types of inventory does not include |
| A. | direct materials inventory |
| B. | work in process inventory |
| C. | finished goods inventory |
| D. | indirect material inventory |
| Answer» E. | |
| 283. |
The merchandising sector companies includes |
| A. | food processing companies |
| B. | automotive companies |
| C. | distribution companies |
| D. | advertising agencies |
| Answer» D. advertising agencies | |
| 284. |
The total manufacturing cost is $60000 and the total units manufactured is 3000 units then the per unit cost is |
| A. | $40 |
| B. | $20 |
| C. | $60 |
| D. | $80 |
| Answer» C. $60 | |
| 285. |
Q: The first Indian bank to open a branch on foreign soil? |
| A. | Bank of Baroda |
| B. | Bank of India |
| C. | Punjab National Bank |
| D. | Allahabad Bank |
| E. | State Bank of India |
| Answer» C. Punjab National Bank | |
| 286. |
An auditor who accepts an audit but does not posses the industry expertise of the business entity should ______________. |
| A. | engage experts. |
| B. | obtain knowledge of matters that relate to the nature of entity business. |
| C. | inform management about it. |
| D. | take help of other auditors. |
| Answer» C. inform management about it. | |
| 287. |
An amount of Rs. 200 received from Mr. "P" but credited to Mr. "Q" would affect: |
| A. | Accounts of P & Q |
| B. | Only Cash Account |
| C. | Only P’s account |
| D. | Only Q’s account |
| Answer» B. Only Cash Account | |
| 288. |
Goods of Rs. 1,000 purchased from Mr. “A” were recorded in sales book. The rectification of this error will: |
| A. | Increase the gross profit |
| B. | Reduce the gross profit |
| C. | Have no effect on gross Profit |
| D. | None of the given options |
| Answer» C. Have no effect on gross Profit | |
| 289. |
Money spent to acquire or upgrade physical assets is known as: |
| A. | Revenue expense |
| B. | Capital Expense |
| C. | Administrative Expense |
| D. | Operating Expense |
| Answer» C. Administrative Expense | |
| 290. |
Which of the following is TRUE about a merchandising company? |
| A. | A merchandising companys business is to buy and sell products. |
| B. | A merchandising company must use the perpetual system to account for merchandising inventory. |
| C. | A merchandising companys business is to provide services. |
| D. | None of the given options |
| Answer» B. A merchandising company must use the perpetual system to account for merchandising inventory. | |
| 291. |
Sale of goods to Amir is wrongly debited to Umair A/c instead of Amir A/c. Both are debtors of business, this is an example of: |
| A. | Error of Omission |
| B. | Error of Commission |
| C. | Error of Principle |
| D. | Error of Original entry |
| Answer» C. Error of Principle | |
| 292. |
If Assets = Rs. 99,500 and Owner's equity = Rs. 50,500 then Liabilities = ? |
| A. | Rs. 49,000 |
| B. | Rs. 55,000 |
| C. | Rs. 125,000 |
| D. | Rs. 115,700 |
| Answer» B. Rs. 55,000 | |
| 293. |
Any expense that gives benefit for a period of less than twelve months is called ________. |
| A. | Capital Expense |
| B. | Revenue Expense |
| C. | Revenue Receipt |
| D. | Deferred Expense |
| Answer» C. Revenue Receipt | |
| 294. |
What is the nature of an expense account? |
| A. | Debit |
| B. | Credit |
| C. | Revenue |
| D. | None of the given options |
| Answer» B. Credit | |
| 295. |
Which of the following financial statement summarizes the profitability of an organization for a particular period? |
| A. | Balance Sheet |
| B. | Trading and Profit & Loss account |
| C. | Cash Flow Statement |
| D. | Statement of Retained Earnings |
| Answer» C. Cash Flow Statement | |
| 296. |
Which of the following summarizes the cash movements during a specified period? |
| A. | Trading account |
| B. | Profit & Loss account |
| C. | Receipts & Payments account |
| D. | Balance Sheet |
| Answer» D. Balance Sheet | |
| 297. |
Which of the following shows summary of a company's financial position at a specific date? |
| A. | Profit & Loss Account |
| B. | Cash Flow Statement |
| C. | Balance Sheet |
| D. | Income & Expenditure Account |
| Answer» D. Income & Expenditure Account | |
| 298. |
Which of the following is NOT an item of a Balance Sheet? |
| A. | Accounts Receivable |
| B. | Accounts Payable |
| C. | Sales Revenue |
| D. | Marketable Securities |
| Answer» D. Marketable Securities | |
| 299. |
Which of the following journal entry will be recorded, if the goods are sold on credit to Mr. 'B'? |
| A. | Mr. “B” / Accounts Receivable account (Dr) and Sales account (Cr) |
| B. | Cash account (Dr) and sales account (Cr) |
| C. | Sales account (Dr) and Mr. B / Accounts Receivable account (Cr) |
| D. | Goods Sold account (Dr) and Mr. B / Accounts Receivable account (Cr) |
| Answer» B. Cash account (Dr) and sales account (Cr) | |
| 300. |
The net income calculated in the income statement for the accounting period is reported on: |
| A. | Bank Statement |
| B. | Statement of retained earnings |
| C. | Statement of cash flows |
| D. | None of the given options |
| Answer» D. None of the given options | |