MCQOPTIONS
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MCQOPTIONS
This section includes 21 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
In a overdraft balance as per cash book, a cheque of 1,250 deposited into bank but not recorded in cash book will be |
| A. | deducted by 1,250 |
| B. | added by 1,250 |
| C. | added by 2,500 |
| D. | deducted by 2,500 |
| Answer» B. added by 1,250 | |
| 2. |
Y-draws a trade bill of 12,000 for 6 months on X. After holding the bill for 2.5 months, Y discount the bill with bank @ 10% p.a. The amount of discount on bill is |
| A. | 100 |
| B. | 350 |
| C. | 600 |
| D. | 250 |
| Answer» C. 600 | |
| 3. |
Goods of the invoice value of 2,40,000 sent out to consignee at 20% profit on cost, the loading amount will be |
| A. | 40,000 |
| B. | 48,000 |
| C. | 50,000 |
| D. | None of the above |
| Answer» B. 48,000 | |
| 4. |
Which balance is not considered for closing entries on t he basis of trial balance for transferring to Trading and Profit & Loss Account? |
| A. | Salary and Wages |
| B. | Discount Received |
| C. | Commission Paid |
| D. | Cash in Hand |
| Answer» E. | |
| 5. |
The valuation procedure for stock is cost or net realisable value, whichever is lower. The procedure follows as per |
| A. | Historical Cost Concept |
| B. | Going Concern Concept |
| C. | Money Measurement Concept |
| D. | Conservatism Concept |
| Answer» D. Conservatism Concept | |
| 6. |
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) | |
| 7. |
It goods worth 1,750 returned to suppler is wrongly entered in sales returned book as 1,570 then |
| A. | Gross profit will decrease by 3,320 |
| B. | Gross profit will decrease by 3,500 |
| C. | Gross profit will increase by 3,320 |
| D. | Net profit will decrease by 3,140 |
| Answer» B. Gross profit will decrease by 3,500 | |
| 8. |
When credit balance as per pass book is the starting point of a Bank Reconciliation Statement then bank charges are |
| A. | Subtracted |
| B. | Added |
| C. | Either (A) or (B) 6 |
| D. | None of the above |
| Answer» C. Either (A) or (B) 6 | |
| 9. |
At the time of dishonor of an endorsed bill, which account would be credited by the drawee? |
| A. | Bills Payable Account |
| B. | Drawer s Account |
| C. | Bank Account |
| D. | Bills Dishonoured Account |
| Answer» C. Bank Account | |
| 10. |
Kasi draws a bi ll on Shyam for 5,000 and Kasi endorsed it to Ram. Ram endorese it to Rahul. The payee of the bill will be |
| A. | Kasi |
| B. | Ram |
| C. | Shyam |
| D. | Rahul |
| Answer» E. | |
| 11. |
When incomes recognised on cash basis and expenditure recognised on accrual basis, the system termed as |
| A. | Accrual basis of accounting |
| B. | Cash basis of accounting |
| C. | Mercantile basis of accounting |
| D. | Hybrid basis of accounting |
| Answer» E. | |
| 12. |
. are liabilities which become due and payable within a short period. |
| A. | Fixed liabilities |
| B. | Long term liabilities |
| C. | Current liabilities |
| D. | Contingent liabilities |
| Answer» D. Contingent liabilities | |
| 13. |
At the en d of the accounting year bills receivable discounted were 32,000 would be shown |
| 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 | |
| 14. |
An entry of 1,560 has been debited to a Debtor s Personal Account at 1,650. It is an error of |
| A. | Omission |
| B. | Commission |
| C. | Principle |
| D. | Compensating |
| Answer» C. Principle | |
| 15. |
At the time of preparation of financial accounts, balance of Bad Debts Recovered Account will 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. | |
| 16. |
In case of, deposited of c heque into bank but not collected, the balance is less as per ________________. |
| A. | Cash book |
| B. | Pass book |
| C. | Pass book overdraft |
| D. | Both (A) and (B) |
| Answer» C. Pass book overdraft | |
| 17. |
Goods purchased from Mr. A but wrongly entered in the account of Mr. B. The rec tification of error will result in |
| A. | increase in gross profit |
| B. | decrease in gross profit |
| C. | no effect on gross profit |
| D. | either A or B |
| Answer» C. no effect on gross profit | |
| 18. |
Which of the following account(s) is (are) maintained in the joint venture when separate set of books are maintained? |
| A. | Joint Bank a/c |
| B. | Joint Venture a/c |
| C. | Co-venturer a/c |
| D. | All of the above |
| Answer» D. All of the above | |
| 19. |
If unsold goods costing 20,000 is taken over by venturer at 15,000, the joint venture account will be credited by |
| A. | 20,000 |
| B. | 15,000 |
| C. | 5,000 |
| D. | Nil |
| Answer» C. 5,000 | |
| 20. |
If X co-venture takes away of goods under memorandum Joint Venture Method then he will debit these goods in his books to |
| A. | Sales Account |
| B. | Purchase Account |
| C. | Personal Account |
| D. | Joint Venture Account |
| Answer» D. Joint Venture Account | |
| 21. |
Original cost of a machine is 1,50,000, residual value 10,000, if depreciation is charged @ 105 per annum under WDV method then depreciation for 3rd year will be |
| A. | 12,240 |
| B. | 11,340 |
| C. | 12,150 |
| D. | 14,000 |
| Answer» D. 14,000 | |