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.
| 201. |
Which one of the following is not a negotiable instrument? |
| A. | Currency Note |
| B. | Promissory Note |
| C. | Bill of Exchange |
| D. | Crossed Cheque |
| Answer» B. Promissory Note | |
| 202. |
All of the following have debit balance except: |
| A. | 6% debentures |
| B. | Loan to contractor |
| C. | Interest on debentures |
| D. | Audit fees |
| Answer» B. Loan to contractor | |
| 203. |
At the end of the year Bad Debts Recovered Account is |
| A. | Debited to Debtors Account 4 |
| B. | Credited to Debtors Account |
| C. | Credited to Profit & Loss Account |
| D. | Debited to Profit & Loss Account |
| Answer» D. Debited to Profit & Loss Account | |
| 204. |
Goods sent on consignment account is of the nature of |
| A. | Personal Account |
| B. | Nominal Account |
| C. | Real Account |
| D. | Sales Account |
| Answer» D. Sales Account | |
| 205. |
The periodical total of Returns Inward Day Book is posted to 5 |
| A. | Debit of Sales Account |
| B. | Debit of Sales Return Account |
| C. | Credit of Sales Return Account |
| D. | Debit of Debtors Account |
| Answer» C. Credit of Sales Return Account | |
| 206. |
Which of the following error is an error of principle? |
| A. | 4,000 received from Sham credited to Shamu a/c |
| B. | 5,000 incurred on installation of new plant debited to salary a/c |
| C. | 6,000 paid for wages debited to salary a/c |
| D. | 7,000 being purchase of raw material debited to purchase a/c |
| Answer» C. 6,000 paid for wages debited to salary a/c | |
| 207. |
Select correct journal entry to rectify an error “An amount of 10,000, withdrawn by owner for personal use debited to Trade Expenses Account”. Debit Credit |
| A. | Drawing Account Trade Expenses a/c |
| B. | Trade Expenses a/c Drawing Account |
| C. | Drawing Account Cash Account |
| D. | Trade Expenses a/c Cash Account |
| Answer» C. Drawing Account Cash Account | |
| 208. |
Capital expenditures are shown in the |
| A. | Balance Sheet |
| B. | Profit & Loss a/c |
| C. | Trading a/c |
| D. | Manufacturing a/c |
| Answer» B. Profit & Loss a/c | |
| 209. |
Double column cash book records : |
| A. | Only cash transactions |
| B. | All transactions |
| C. | Cash and bank transactions |
| D. | Cash purchase and cash sales transactions |
| Answer» D. Cash purchase and cash sales transactions | |
| 210. |
Income tax of the sole trade paid is shown |
| A. | Debited to P & L Account |
| B. | Debited to Trading Account |
| C. | Debited to his Capital Account |
| D. | None of the above |
| Answer» D. None of the above | |
| 211. |
Cash book is a form of |
| A. | Ledger |
| B. | Journal |
| C. | Trial Balance |
| D. | All of the above |
| Answer» B. Journal | |
| 212. |
Assets acquired for long use in the business are called …………………. |
| A. | Fixed assets |
| B. | Current assets |
| C. | Fictitious asset |
| D. | Liquid asset |
| Answer» B. Current assets | |
| 213. |
What is the nature of joint venture with co-venture account? |
| A. | Nominal account |
| B. | Personal account 2 |
| C. | Real Account |
| D. | Memorandum Account |
| Answer» C. Real Account | |
| 214. |
The debts written off earlier as bad, subsequently recovered are |
| A. | Debited to profit and loss A/c |
| B. | Credited to bad debt recovery A/c |
| C. | Credited to trade receivable A/c |
| D. | Credited to debtors A/c |
| Answer» C. Credited to trade receivable A/c | |
| 215. |
Amount set apart to meet loss due to bad debt is a |
| A. | Provision |
| B. | Appropriation |
| C. | Reserve |
| D. | Commission |
| Answer» B. Appropriation | |
| 216. |
Retirement of bill means |
| A. | sending the bill for collection |
| B. | cancellation of the bill |
| C. | endorsing the bill in favour of third party |
| D. | making payment before the due date. |
| Answer» E. | |
| 217. |
Life Insurance Corporation Account is a |
| A. | Nominal Account |
| B. | Artificial Personal Account |
| C. | Representative Personal Account |
| D. | Real Account |
| Answer» C. Representative Personal Account | |
| 218. |
X sends out goods to Y, costing 3,60,000. Goods are to be sold at cost plus 25% on sales. The consignor asked consignee to pay an advance for an amount equivalent to 60% of sales value. The amount of advance will be |
| A. | 2,88,000 |
| B. | 2,16,000 |
| C. | 2,70,000 |
| D. | 3,36,000 |
| Answer» D. 3,36,000 | |
| 219. |
Which one of the following is an external cause for depreciation |
| A. | Over use |
| B. | Abnormal occurrence |
| C. | Time element |
| D. | Obsolescence |
| Answer» E. | |
| 220. |
Identify the Personal Account from the following |
| A. | Salary Payable Account |
| B. | Taxes paid account |
| C. | Investment Account |
| D. | Trademark Account |
| Answer» B. Taxes paid account | |
| 221. |
Goods of the invoice value of 2,40,000 sent out to consignee at 20% profit on cost, theloading amount will be |
| A. | 40,000 |
| B. | 48,000 |
| C. | 50,000 |
| D. | None of the above |
| Answer» B. 48,000 | |
| 222. |
Bank overdraft has a ………………………….. balance |
| A. | Debit |
| B. | Credit |
| C. | Negative |
| D. | Favorable |
| Answer» C. Negative | |
| 223. |
Credit purchase of fixed asset is recorded in |
| A. | Journal Proper |
| B. | Purchase book |
| C. | Cash book |
| D. | Petty Cash Book |
| Answer» D. Petty Cash Book | |
| 224. |
Bank pass book is also known as ………………………………….. |
| A. | Bank book |
| B. | Bank account |
| C. | Bank column |
| D. | Bank statement |
| Answer» E. | |
| 225. |
……………….. is an example for fictitious asset. |
| A. | Machinery |
| B. | Stock |
| C. | Patent |
| D. | Preliminary expenses |
| Answer» E. | |
| 226. |
……………….. refers the amount invested by the owner into business. |
| A. | Loan |
| B. | Advance |
| C. | Capital |
| D. | Prepaid expences |
| Answer» D. Prepaid expences | |
| 227. |
In a joint venture X and Y sharing p rofit and loss equally, X purchased goods costing of 40,000 and Y sold the goods for 50,000. X is entitled to get 1% commission on purchase and Y is entitled to get 5% commission on sales, the profit will be |
| A. | 7,200 |
| B. | 7,100 |
| C. | 6,800 |
| D. | 7,600 |
| Answer» C. 6,800 | |
| 228. |
The source document or voucher used for recording entries in Sales Book is |
| A. | invoice recieved |
| B. | invoice sent out |
| C. | credit notes sent out |
| D. | debit notes received |
| Answer» C. credit notes sent out | |
| 229. |
House Building advance of 2.00 lakh paid to employees. It is a |
| A. | Asset |
| B. | Revenue Expenditure |
| C. | Capital Expenditure |
| D. | Deferred Revenue Expenditure |
| Answer» B. Revenue Expenditure | |
| 230. |
The value of an asset after deducting depreciation from the historical cost is known as |
| A. | Fair value |
| B. | Market value |
| C. | Net realizable value |
| D. | Book value |
| Answer» E. | |
| 231. |
Which one of the following equation is correct? |
| A. | Owner’s Equity = Liability + Asset |
| B. | Owner’s Equity = Asset - Liability |
| C. | Liability = Owner’s Equity + Asset |
| D. | Asset = Owner’s Equity + Liability |
| Answer» C. Liability = Owner’s Equity + Asset | |
| 232. |
…………………… is the book of original entry. |
| A. | Journal |
| B. | Voucher |
| C. | Invoices |
| D. | Ledger |
| Answer» B. Voucher | |
| 233. |
The valuation procedure for stock is cost or net realisable value, whichever is lower. Theprocedure follows as per |
| A. | Historical Cost Concept |
| B. | Going Concern Concept |
| C. | Money Measurement Concept |
| D. | Conservatism Concept |
| Answer» D. Conservatism Concept | |
| 234. |
From the following details ascertain the adjusted bank balance as per Cash Book – overdraft as per Cash Book 1,60,000; cheque received entered twice in the Cash Book 10,000; credit side of bank column cash short by 1,000; bank charges amounting to 400 entered twice: |
| A. | 1,61,000 |
| B. | 1,71,000 |
| C. | 1,70,000 |
| D. | 1,70,600 |
| Answer» E. | |
| 235. |
Which one of the following is not the feature of a joint venture business? |
| A. | Co-venture may or may not contribute initial capital. |
| B. | It has limited duration |
| C. | It is done for specific purpose |
| D. | Profit or loss on joint venture is shared as per their capital ratio. |
| Answer» E. | |
| 236. |
The determination of expenses for an accounting period is based on the concept of 3 |
| A. | Consistency concept |
| B. | Periodicity concept |
| C. | Timelines concept |
| D. | Industry practice |
| Answer» C. Timelines concept | |
| 237. |
When cash received for services rendered in the past |
| A. | Owner’s equity increases |
| B. | Current asset increases |
| C. | Profit increases |
| D. | None of the above |
| Answer» D. None of the above | |
| 238. |
The original cost of the machine is 19,00,000; machine installation charges are 1,00,000; working life of the machine is 5 years and residual value is 40,000. If the depreciation is charged on Straight Line basis then 4th year’s depreciation will be: |
| A. | 3,72,000 |
| B. | 4,00,000 |
| C. | 3,92,000 |
| D. | 3,52,000 |
| Answer» D. 3,52,000 | |
| 239. |
Users of accounting information include ……………………… |
| A. | Creditors |
| B. | Lenders |
| C. | Customers |
| D. | All of the above |
| Answer» E. | |
| 240. |
An expenditure is in capital nature when |
| A. | the receiver of the amount is going to treat it for the purchase of fixed assets. |
| B. | it increase the quantity of fixed assets. |
| C. | it is paid as interests on loans for the business |
| D. | it maintains a fixed assets |
| Answer» B. it increase the quantity of fixed assets. | |
| 241. |
Y-draws a trade bill of 12,000 for 6 months on X. After holding the bill for 2.5 months, Ydiscount 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 | |
| 242. |
M/s. A.B. Enterprises has bank balance 8,800 as per cash book and the followings were found: (a) Three cheques deposited in bank for 5,800 but only one cheque for 2,000 was cleared. (b) Dividend collected by Bank 1,250 was wrongly entered in cash book as 1,520. What is balance as per pass book? |
| A. | 3,480 |
| B. | 4,730 |
| C. | 2,730 |
| D. | 3,750 |
| Answer» C. 2,730 | |
| 243. |
Accounting cycle ends with preparation of______________. |
| A. | the journal/ledger |
| B. | the trial balance |
| C. | the financial statement |
| D. | the closing entries record |
| Answer» E. | |
| 244. |
Which of the following account will have credit balance? |
| A. | Sales return |
| B. | Bills receivable |
| C. | Carriage inward |
| D. | Outstanding wages |
| Answer» E. | |
| 245. |
Purchase book records: |
| A. | All cash purchases |
| B. | All credit purchases |
| C. | Credit purchase of goods in trade |
| D. | None of the above |
| Answer» D. None of the above | |
| 246. |
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 | |
| 247. |
Current assets does not include : |
| A. | Cash |
| B. | Stock |
| C. | Debtors |
| D. | Furniture |
| Answer» E. | |
| 248. |
Which of the following is an accounting equation? |
| A. | Capital = Assets + Liabilities |
| B. | Capital = Assets – Liabilities |
| C. | Assets = Liabilities – Capital |
| D. | Liabilities = Assets + Capital |
| Answer» C. Assets = Liabilities – Capital | |
| 249. |
Carriage inward is debited to : |
| A. | Suspense account |
| B. | Trading account |
| C. | P & L account |
| D. | P & L appropriation account |
| Answer» C. P & L account | |
| 250. |
AS – 09 deals with |
| A. | Inventory Valuation |
| B. | Depreciation Accounting |
| C. | Revenue Recognition |
| D. | Cash Flow Statement |
| Answer» D. Cash Flow Statement | |