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.
| 101. |
A cash book with discount and bank column is called as |
| A. | Single Column Cash Book |
| B. | Two Column Cash Book |
| C. | Three Column Cash Book |
| D. | Petty Cash Book |
| Answer» D. Petty Cash Book | |
| 102. |
……………. 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 | |
| 103. |
The amount of yearly depreciation under written down value method |
| A. | remains same over the years |
| B. | decreases year by year |
| C. | increases year by year |
| D. | fluctuates |
| Answer» B. decreases year by year | |
| 104. |
Cash book is a |
| A. | Subsidiary book |
| B. | Subsidiary book and a Ledger account |
| C. | Ledger account |
| D. | None of the above |
| Answer» C. Ledger account | |
| 105. |
When credit balance as per pass book is the starting point of a Bank ReconciliationStatement 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 | |
| 106. |
Which one of the following is an example of Personal Account? |
| A. | Machinery |
| B. | Rent |
| C. | Cash |
| D. | Creditor |
| Answer» E. | |
| 107. |
Which of the following lists the balance and the title of accounts in the ledger on a given date? |
| A. | P & L account |
| B. | Balance sheet |
| C. | Income statement |
| D. | Trial balance |
| Answer» E. | |
| 108. |
Which of these items are taken into consideration for preparation of adjusted cash book? |
| A. | Mistake in cash book |
| B. | Mistake in pass book |
| C. | Cheque issued but not presented for payment |
| D. | Cheque deposited but not cleared by bank |
| Answer» B. Mistake in pass book | |
| 109. |
Prepaid rent is a |
| A. | Nominal Account |
| B. | Representative Personal Account |
| C. | Tangible Assets Account |
| D. | None of the above |
| Answer» C. Tangible Assets Account | |
| 110. |
Capital expenditure provide ………………………… benefits |
| A. | Long period |
| B. | Short period |
| C. | Very short period |
| D. | None of the above |
| Answer» B. Short period | |
| 111. |
Goodwill is …………………………. |
| A. | Current account |
| B. | Fictitious asset |
| C. | Tangible asset |
| D. | Intangible asset |
| Answer» E. | |
| 112. |
Decrease in the amount of creditors results in |
| A. | Increase in assets |
| B. | Increase in cash |
| C. | Decrease in cash |
| D. | No change in assets |
| Answer» D. No change in assets | |
| 113. |
Loss leads to reduction in ………………………………….. |
| A. | Liability |
| B. | Capital |
| C. | Income |
| D. | Asset |
| Answer» C. Income | |
| 114. |
Which of the following is a transaction of contra entry? |
| A. | Sale goods to Y 12,500 |
| B. | Godown rent 7,000 paid by cheque. |
| C. | Received 12,000 in full settlement of 12,500 |
| D. | Cash deposited to bank 9,000. |
| Answer» E. | |
| 115. |
Bills Receivable books is part of the |
| A. | Journal |
| B. | Ledger |
| C. | Profit & Loss Account |
| D. | Balance Sheet |
| Answer» B. Ledger | |
| 116. |
Sales of 6,570 is recorded in the sales book as 6,750. Such Error is known as |
| A. | Error of Principle |
| B. | Error of Omission |
| C. | Error of Commission |
| D. | Compensating Error |
| Answer» D. Compensating Error | |
| 117. |
Aseets having definite shape and physical existensce are called………. |
| A. | Tangible asset |
| B. | Intangible asset |
| C. | Wasting asset |
| D. | Fictitious asset |
| Answer» B. Intangible asset | |
| 118. |
Financial statements are the part of ………………………… . |
| A. | Accounting |
| B. | Book keeping |
| C. | All of the above |
| D. | None of the above |
| Answer» B. Book keeping | |
| 119. |
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 | |
| 120. |
The balance of the Petty Cash is a / an |
| A. | expense |
| B. | income |
| C. | asset |
| D. | liability |
| Answer» D. liability | |
| 121. |
Assets acquired for short term use in the business are called…………….. |
| A. | Fixed assets |
| B. | Current assets |
| C. | Fictitious assets |
| D. | Liquid assets |
| Answer» C. Fictitious assets | |
| 122. |
Expenses paid but not accrued means |
| A. | Capital expenses |
| B. | Outstanding expenses |
| C. | Prepaid expenses |
| D. | Cash |
| Answer» B. Outstanding expenses | |
| 123. |
In case of depreciable assets are revalued, the provision for depreciation is based on |
| A. | Market value of the assets |
| B. | Historical cost of the asset |
| C. | Written down value of the asset |
| D. | the revalued amount over the estimate of the remaining useful life of such asset. |
| Answer» E. | |
| 124. |
On which of the following asset, depreciation is charged on ‘Depletion method’ |
| A. | Goodwill |
| B. | Plant and Machinery |
| C. | Land and Building |
| D. | Wasting asset like mine and quarries |
| Answer» E. | |
| 125. |
Cost of goods purchased for resale is an example of |
| A. | Revenue expenditure |
| B. | Capital expenditure |
| C. | Deferred revenue expenditure |
| D. | None of the above |
| Answer» B. Capital expenditure | |
| 126. |
5,000 incurred for up gradation of computer by installation of 128 MB Ram is |
| A. | Revenue expenditure |
| B. | Deferred revenue expenditure |
| C. | Capital expenditure |
| D. | None of the above |
| Answer» D. None of the above | |
| 127. |
Purchase of a fixed asset on credit basis is recorded in ……………. |
| A. | Cash book |
| B. | Purchase book |
| C. | Journal proper |
| D. | None of these |
| Answer» D. None of these | |
| 128. |
A person who owes money to the business is a ………………………… |
| A. | Debtor |
| B. | Creditor |
| C. | Investor |
| D. | Supplier |
| Answer» B. Creditor | |
| 129. |
In case credit balance , the words ………….. are written on the credit side. |
| A. | To balance b/d |
| B. | To balance c/d |
| C. | By balance b/d |
| D. | By balance c/d |
| Answer» D. By balance c/d | |
| 130. |
Goods bought for 25,000 passed through sales day book will result in |
| A. | No effect on gross profit |
| B. | Decrease in gross profit |
| C. | Decrease in net profit |
| D. | Increase in gross profit |
| Answer» E. | |
| 131. |
It goods worth 1,750 returned to suppler is wrongly entered in sales returned book as1,570 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 | |
| 132. |
Kasi draws a bi ll on Shyam for 5,000 and Kasi endorsed it to Ram. Ram endorese it toRahul. The payee of the bill will be |
| A. | Kasi |
| B. | Ram |
| C. | Shyam |
| D. | Rahul |
| Answer» E. | |
| 133. |
The Consignment Accounting is made on the following basis |
| A. | Cash basis |
| B. | Realisation basis |
| C. | Accrual basis |
| D. | None of the above |
| Answer» D. None of the above | |
| 134. |
Which financial statement represents the accounting equation “assets = liabilities + owners’ equity” |
| A. | Trading account |
| B. | Profit &loss account |
| C. | Balance sheet |
| D. | Statement of cash flows |
| Answer» D. Statement of cash flows | |
| 135. |
Land & building is a ………………………………… |
| A. | Fixed asset |
| B. | Current asset |
| C. | Fictitious asset |
| D. | Intangible asset |
| Answer» B. Current asset | |
| 136. |
Accounts payable normally has ……………………….. balnce. |
| A. | Credit |
| B. | Debit |
| C. | Unfavorable |
| D. | None of the above |
| Answer» B. Debit | |
| 137. |
Which of these is/are recurring (indirect) expenses? |
| A. | Transit Insurance and Freight |
| B. | Octroi |
| C. | Loading and Unloading |
| D. | Godown Rent and Insurance |
| Answer» E. | |
| 138. |
A ……………………….. is person to whom business owes money. |
| A. | Debtor |
| B. | Creditor |
| C. | Investor |
| D. | Propriator |
| Answer» C. Investor | |
| 139. |
Stock in the hand of the consignee is valued |
| A. | at market price or cost price whichever is less. |
| B. | at selling price. |
| C. | at cost price after inclusion of proportionate non-recurring expenses. |
| D. | at consignment price. |
| Answer» E. | |
| 140. |
Journal proper records : |
| A. | Bills receivables |
| B. | Bills payables |
| C. | Cash payments |
| D. | Opening entry |
| Answer» E. | |
| 141. |
The process of transfer of entries from day book to ledger is called as |
| A. | Balancing |
| B. | Journal Posting |
| C. | Transaction |
| D. | Ledger Posting |
| Answer» E. | |
| 142. |
As regards the accounting treatment, Legacy should be |
| A. | treated as loss |
| B. | capitalized |
| C. | treated Revenue Expenses |
| D. | treated Deferred Revenue |
| Answer» C. treated Revenue Expenses | |
| 143. |
A bank reconciliation statement is prepared to know the causes for the differences between: |
| A. | The balances as per cash column of cash book and the pass book |
| B. | The balances as per bank column of cash book and the pass book |
| C. | The balances as per bank column of cash book and cash column of cash book |
| D. | None of the above |
| Answer» C. The balances as per bank column of cash book and cash column of cash book | |
| 144. |
Payment of Bills of Exchange is received |
| A. | by drawer |
| B. | by holder in due course of due date |
| C. | by endorsee |
| D. | by bank |
| Answer» C. by endorsee | |
| 145. |
There are 100 members each p aying an annual subscription of 500. The Receipt and Payment account shows arrear subscription of 4,500, advance subscriptions 6,000 and current 44,500. How much amount to be credited in the Income and Expenditure account? |
| A. | 55,000 |
| B. | 49,000 |
| C. | 44,500 |
| D. | 50,000 |
| Answer» E. | |
| 146. |
Import duty of raw material purchased is a |
| A. | Revenue Expenditure |
| B. | Capital Expenditure |
| C. | Deferred Revenue Expenditure |
| D. | None of the above |
| Answer» B. Capital Expenditure | |
| 147. |
Which balance is not considered for closing entries on t he basis of trial balance fortransferring to Trading and Profit & Loss Account? |
| A. | Salary and Wages |
| B. | Discount Received |
| C. | Commission Paid |
| D. | Cash in Hand |
| Answer» E. | |
| 148. |
The trial balance shows closing stock of Rs.30,000 .it will be recorded in ……………….. |
| A. | Trading account |
| B. | Profit and loss account |
| C. | Profit and loss appropriation account |
| D. | Balance sheet |
| Answer» E. | |
| 149. |
“Business unit separate and distinct from the owner of it ”,is based on: |
| A. | Money measurement |
| B. | Going concern concept |
| C. | Business entity concept |
| D. | Dual aspect concept |
| Answer» D. Dual aspect concept | |
| 150. |
Which of the following is artificial personal account? |
| A. | SBI account |
| B. | Wages paid account |
| C. | Discount received account |
| D. | Drawings account |
| Answer» B. Wages paid account | |