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.
| 51. |
From the following information, find out purchases when raw material consumed is 26,500;Closing stock 4,500 and opening stock 3,000. |
| A. | 26,500 |
| B. | 25,000 |
| C. | 28,000 |
| D. | 34,000 |
| Answer» D. 34,000 | |
| 52. |
Any income arising from special fund will be credited to |
| A. | General fund in the Balance Sheet |
| B. | Receipt and Payment account |
| C. | Income and Expenditure account |
| D. | Special fund in the Balance sheet |
| Answer» E. | |
| 53. |
________________________is not objective of accounting. |
| A. | Gives accurate information |
| B. | Keeps records in systematic manner |
| C. | Analyses recorded data |
| D. | Ascertain financial position of business |
| Answer» B. Keeps records in systematic manner | |
| 54. |
All of the following have debit balance except one. That account is ……… |
| A. | Wages account |
| B. | Debtors account |
| C. | Good will |
| D. | Bills payable account |
| Answer» E. | |
| 55. |
Which of the following is capital expenditure? |
| A. | Repairs of fixed asset |
| B. | Demolition cost |
| C. | Locker rent |
| D. | Annual subscription |
| Answer» E. | |
| 56. |
Which one of the following character is not related to Financial Accounting? |
| A. | Evaluates the financial strength of the whole business. |
| B. | Based on monetary transactions of the enterprise |
| C. | Reports are always subject to statutory audit. |
| D. | Reports are as per requirement of management. |
| Answer» E. | |
| 57. |
Which of the following will result in disagreement of Trial Balance? |
| A. | Sales return treated as purchase. |
| B. | Purchase return treated as sales. |
| C. | Ram a/c wrongly credited instead of Sham a/c |
| D. | Under casting cash book by 1,100 |
| Answer» E. | |
| 58. |
X of Delhi send out certain goods at cost + 25% of cost. Invoice value of goods is 1,20,000. 4/5th of the goods were sold by consignee at 1,00,000. Commission @ 2% up to invoice value and 10% of any surplus above invoice. The amount of commission will be |
| A. | 1,920 |
| B. | 2,320 |
| C. | 1,820 |
| D. | 2,020 |
| Answer» C. 1,820 | |
| 59. |
Goods purchased from Mr. A but wrongly entered in the account of Mr. B. The rec tificationof 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 | |
| 60. |
Ledger contains various _______ in it. |
| A. | transactions |
| B. | entries |
| C. | accounts |
| D. | None of the above |
| Answer» D. None of the above | |
| 61. |
Noting charges are paid by |
| A. | the drawee |
| B. | the drawer |
| C. | the payee |
| D. | the acceptor |
| Answer» B. the drawer | |
| 62. |
Goods taken from business for personal use by the proprietor should be credited to |
| A. | Drawing a/c |
| B. | Capital a/c |
| C. | Sales a/c |
| D. | Purchase a/c |
| Answer» E. | |
| 63. |
Payment of personal expenses of the owners of business need to be recorded as: |
| A. | Drawing |
| B. | Liabilities |
| C. | Expenses |
| D. | Gains |
| Answer» B. Liabilities | |
| 64. |
Drawings are deducted from …………………………. |
| A. | Sales |
| B. | Purchases |
| C. | Expenses |
| D. | Capital |
| Answer» E. | |
| 65. |
Narration are given at the end of |
| A. | Final Accounts |
| B. | Each Ledger Account in Trial Balance |
| C. | Each Ledger Account |
| D. | Each Journal Entry |
| Answer» E. | |
| 66. |
………………….. is the major source of revenue of any business. |
| A. | Investment |
| B. | Advances |
| C. | Loan |
| D. | Sales |
| Answer» E. | |
| 67. |
A purchase of 49,500 from Shiva was recorded in Purchases Book as 59,400, the profit would show |
| A. | an increase of 9,900 |
| B. | a decrease of 9,900 |
| C. | an increase of 59,400 |
| D. | neither an increase nor a decrease |
| Answer» C. an increase of 59,400 | |
| 68. |
Three column cash book records ………………………… |
| A. | Only cash transactions |
| B. | All transactions |
| C. | Cash bank and discount transactions |
| D. | Cash purchase and cash sales transactions |
| Answer» D. Cash purchase and cash sales transactions | |
| 69. |
Book debts normally has ……………………… balance. |
| A. | Credit |
| B. | Debit |
| C. | Unfavorable |
| D. | None of the above. |
| Answer» C. Unfavorable | |
| 70. |
Profit and loss account is prepared for a period of one year by following the concept of |
| A. | Consistency Concept |
| B. | Cost Concept |
| C. | Going Concern Concept |
| D. | Periodicity Concept |
| Answer» D. Periodicity Concept | |
| 71. |
Wages and salary is debited to: |
| A. | Trading account |
| B. | P/L Account |
| C. | Profit and loss appropriations account |
| D. | Balance sheet |
| Answer» B. P/L Account | |
| 72. |
Accounts receivable normally has ……………………. Balance |
| A. | Credit |
| B. | Debit |
| C. | Favorable |
| D. | Negative |
| Answer» C. Favorable | |
| 73. |
……………… is the collection of all accounts. |
| A. | Journal |
| B. | Voucher |
| C. | Invoices |
| D. | Ledger |
| Answer» E. | |
| 74. |
Carriage outward 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 | |
| 75. |
There are 250 members in the Srikrishna Clu b where annual subscription is 500. During 2016-17, subscription received 97,500 and subscription receivable is 47,500. What amount of subscription received in advance during 2016-17? |
| A. | 20,000 |
| B. | 25,000 |
| C. | 27,500 |
| D. | 50,000 |
| Answer» B. 25,000 | |
| 76. |
Which account is the odd one: |
| A. | Furniture |
| B. | Materiality |
| C. | Matching |
| D. | Periodicity |
| Answer» B. Materiality | |
| 77. |
Which of the following account(s) is (are) maintained in the joint venture when separate setof 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 | |
| 78. |
In the ledger there are …………………….. columns. |
| A. | 4 |
| B. | 6 |
| C. | 8 |
| D. | 10 |
| Answer» D. 10 | |
| 79. |
Which one of the following is not a financial statement? |
| A. | Trial Balance |
| B. | Profit and Loss account |
| C. | Balance Sheet |
| D. | Fund Flow statement |
| Answer» B. Profit and Loss account | |
| 80. |
………………………….denote goods brought for sale. |
| A. | Sale |
| B. | Expense |
| C. | Purchase |
| D. | Revenue |
| Answer» D. Revenue | |
| 81. |
Errors in carry forward of closing balances from one year to another which affects |
| A. | Nominal accounts |
| B. | Real accounts |
| C. | Personal accounts |
| D. | Both (B) and (C) |
| Answer» E. | |
| 82. |
Depreciations arises because of : |
| A. | Fall in the market value of the asset |
| B. | Fall in the value of money |
| C. | Physical wear and tear of asset |
| D. | Inflation in the market |
| Answer» D. Inflation in the market | |
| 83. |
Income and Expenditure account shows subscription at 2,50,000. Subscriptions accrued in the beginning of the year and at the end of the year were 25,000 and 37,500 respectively. The amount of subscriptions received appearing in re ceipts and payments account will be |
| A. | 2,37,500 |
| B. | 2,75,000 |
| C. | 1,87,500 |
| D. | 2,62,500 |
| Answer» C. 1,87,500 | |
| 84. |
Purchase price of Machine 8,90,000; Freight and Cartage 7,000; Installation charges 30,000; Insurance charges 20,000; Residual value is 40,000; estimated useful life 5 years. The amount of annual depreciation under straight line method will be |
| A. | 1,77,400 |
| B. | 1,81,400 |
| C. | 1,97,400 |
| D. | 1,77,900 |
| Answer» B. 1,81,400 | |
| 85. |
Trial balance is prepared according to : |
| A. | Total method |
| B. | Balance method |
| C. | Total and balance method |
| D. | All the three |
| Answer» C. Total and balance method | |
| 86. |
Which of the following transaction is not recorded in cash book? |
| A. | Bad debts recovered |
| B. | Prepaid expenses |
| C. | Trade discount allowed |
| D. | Freight paid for acquiring an asset |
| Answer» B. Prepaid expenses | |
| 87. |
The process of ascertaining the balance of a particular account on a given date is : |
| A. | Posting |
| B. | Journalizing |
| C. | Balancing |
| D. | Accounting |
| Answer» D. Accounting | |
| 88. |
The Depreciation Account is closed at the end of the year by transfer to the |
| A. | General Reserve a/c |
| B. | Profit and Loss a/c |
| C. | Provision for Depreciation a/c |
| D. | Fixed Asset a/c |
| Answer» C. Provision for Depreciation a/c | |
| 89. |
Endowment fund receipt is treated as |
| A. | Capital Receipt |
| B. | Revenue Receipt |
| C. | Loss |
| D. | Expenses |
| Answer» B. Revenue Receipt | |
| 90. |
Journal proper uses to record _________________. |
| A. | bad debts recovered |
| B. | all cash purchases of assets other than goods |
| C. | writing of bad debts |
| D. | purchase of goods on credit |
| Answer» C. writing of bad debts | |
| 91. |
Stock is ………………………………………. |
| A. | Fixed asset |
| B. | Current asset |
| C. | Investments |
| D. | Intangible asset |
| Answer» C. Investments | |
| 92. |
Capital expenditure are recorded in the ……………….. |
| A. | Balance sheet |
| B. | Profit & loss account |
| C. | Trading account |
| D. | Manufacturing account |
| Answer» B. Profit & loss account | |
| 93. |
If a sum of 1,500 received from Laxman (debtor) has not been recorded in the books, the |
| A. | Profit would show an increase of 1,500 |
| B. | Profit would show a decrease of 1,500 |
| C. | Assets would show a decrease of 1,500 |
| D. | None of the above |
| Answer» E. | |
| 94. |
Any revenue expense for which a separate fund is available will be |
| A. | capitalised and shown in the balance sheet. |
| B. | debited to income and expenditure account. |
| C. | debited to the separate fu |
| Answer» D. | |
| 95. |
A ………………. Is sent to a customer when he returns the goods |
| A. | Debit note |
| B. | Credit note |
| C. | Proforma invoice |
| D. | Bill |
| Answer» C. Proforma invoice | |
| 96. |
Joint venture account is of the nature of |
| A. | Personal account |
| B. | Nominal account |
| C. | Real account |
| D. | Suspense account |
| Answer» C. Real account | |
| 97. |
Trade discount is allowed at the time of sale of goods. |
| A. | is recorded in sales book |
| B. | is recorded in cash book |
| C. | is not recorded in books of accounts |
| D. | is recorded in journal |
| Answer» D. is recorded in journal | |
| 98. |
When goods are purchased for the joint venture, the account to be debited is |
| A. | Purchase account |
| B. | Joint Venture account |
| C. | Venture’s capital account |
| D. | either Purchase account or Joint venture account |
| Answer» E. | |
| 99. |
In a overdraft balance as per cash book, a cheque of 1,250 deposited into bank but notrecorded 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 | |
| 100. |
An entry of 1,560 has been debited to a Debtor’s Personal Account at 1,650. It is an errorof |
| A. | Omission |
| B. | Commission |
| C. | Principle |
| D. | Compensating |
| Answer» C. Principle | |