MCQOPTIONS
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MCQOPTIONS
This section includes 209 Mcqs, each offering curated multiple-choice questions to sharpen your Cost Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 151. |
When goodwill of the firm is sold upon dissolution, and a partner carries on a competing business, which of the following is permissible? |
| A. | Use of firm's name |
| B. | Holding out as carrying on the business of the firm. |
| C. | Soliciting the custom of the firm's customers/suppliers etc. |
| D. | None of the above |
| Answer» E. | |
| 152. |
A, B and C are partners. C is a sleeping partner who is not known to the creditors. C retires without giving public notice of his retirement. Is C liable for subsequent debts incurred by A and B. |
| A. | No, since he is a sleeping partner |
| B. | Yes, since public notice of retirement must be given |
| C. | Difficult to say |
| D. | None of the above |
| Answer» B. Yes, since public notice of retirement must be given | |
| 153. |
If the seller delivers to the buyer goods ordered mixed with goods of a different description, the buyer may - |
| A. | reject the whole |
| B. | accept the agreed goods and reject the remaining goods |
| C. | either 'a' or 'b' |
| D. | neither 'a' nor 'b' |
| Answer» D. neither 'a' nor 'b' | |
| 154. |
Where goods are bought by description from a seller who deals in goods of that description, what is the implied condition? |
| A. | that goods shall be of merchantable quality |
| B. | that the buyer shall have reasonable opportunity of comparing the bulk with the sample |
| C. | the goods shall be in excellent quality |
| D. | the goods shall be free from defects |
| Answer» B. that the buyer shall have reasonable opportunity of comparing the bulk with the sample | |
| 155. |
The provision of section 147 of the Negotiable Instruments Act, 1881, that every offence punishable under this Act shall be compoundable was inserted by the |
| A. | amending Act of 1988 |
| B. | amending Act of 1980 |
| C. | amending Act of 2002 |
| D. | none of the above |
| Answer» D. none of the above | |
| 156. |
Under section 97, of the Negotiable Instruments Act when the party to whom notice of dishonour is dispatched is dead, but the party despatching the notice is ignorant of his death, the notice is |
| A. | Sufficient |
| B. | not sufficient |
| C. | null and void and has no effect |
| D. | none of the above |
| Answer» B. not sufficient | |
| 157. |
For the purpose of ascertaining the intention of the parties for the purpose of transfer of property in goods from the seller to the buyer regard shall be had to: |
| A. | The terms of the contract |
| B. | The conduct of the parties |
| C. | The circumstances of the case |
| D. | All the above |
| Answer» E. | |
| 158. |
.is a form of combination of buyers to prevent competition among themselves at an auction sale. |
| A. | Knock-out agreement |
| B. | monopoly agreement |
| C. | oligopoly agreement |
| D. | puffing agreement |
| Answer» B. monopoly agreement | |
| 159. |
When a bill of exchange in sent together with documents of title, the property in goods passes when the buyer. |
| A. | Receives the Bill of Exchange |
| B. | Returns the Bill of Exchange |
| C. | Accepts the Bill of Exchange |
| D. | None of these |
| Answer» D. None of these | |
| 160. |
Under the provisions of section 143 of the Negotiable Instruments Act, 1881, all offences under the Act are to be tried by |
| A. | any Judicial Magistrate |
| B. | Judicial Magistrate of the First Class or by a Metropolitan Magistrate |
| C. | only a District Judge |
| D. | none of the above |
| Answer» C. only a District Judge | |
| 161. |
As per section 38 when constitution of the firm is changed, the continuing guarantee given to the firm or to a third party in respect to the transactions of the firm: |
| A. | Is not affected at all |
| B. | Is revoked as to future transactions |
| C. | Is revoked with retrospective effect |
| D. | Ceases to be continuing guarantee |
| Answer» B. Is revoked as to future transactions | |
| 162. |
"Warehouse - Keeper's Certificate" is a document of title to 'goods' within the meaning of section 2(4) of the Sale of Goods Act. |
| A. | True |
| B. | False |
| C. | Partly True |
| D. | Conditionally True |
| Answer» B. False | |
| 163. |
Subject to contract between the partners, and pursuant to section 13 of the Indian partnership, the following statement is correct: |
| A. | Partner is not entitled to interest on the capital subscribed by him |
| B. | Partner is not entitled to interest on the advance made over and above the share of capital |
| C. | Partner is not entitled to remuneration for taking part in the conduct of the business |
| D. | All the above |
| Answer» D. All the above | |
| 164. |
'A' threatened to commit suicide if his wife did not execute a sale deed in favour of this brother. The wife executed the sale deed. This transaction is: |
| A. | Voidable due to under influence |
| B. | Voidable due to coercion |
| C. | Void being immoral |
| D. | Void being forbidden by law |
| Answer» C. Void being immoral | |
| 165. |
In case of contract for the sale of specific or ascertained goods the property in goods passes to the buyer: |
| A. | At such time as the parties to the contract intend it to be transferred |
| B. | When the price is paid |
| C. | When delivery is given |
| D. | When the contract is made |
| Answer» B. When the price is paid | |
| 166. |
For passing of property in respect of specific or ascertained goods, the intention of the parties can be ascertained from |
| A. | Terms of the contract |
| B. | Conduct of the parties |
| C. | Circumstances of the case |
| D. | All of the above |
| Answer» E. | |
| 167. |
If an unregistered firm intends to file a suit against a third party, it should get itself registered before filing the suit. |
| A. | False, as such disability can never be removed. |
| B. | True, as after registration firm's disability to file such suit is removed. |
| C. | It should take permission of the court before filing the suit. |
| D. | Either (b) or (c) |
| Answer» C. It should take permission of the court before filing the suit. | |
| 168. |
A, B and C are partners of an unregistered firm. D owns this firm ` 1000 on a contract. The firm filed a suit against D the suit is dismissed for non-registration of the firm. The firm is registered later on. In this case which one of the following statements is MOST appropriate. |
| A. | The firm can successfully bring the suit against D |
| B. | Registration must have been effected by the firm, before a suit is filed in the court |
| C. | The firm cannot file suit against D |
| D. | None of the above |
| Answer» B. Registration must have been effected by the firm, before a suit is filed in the court | |
| 169. |
The relation of partnership arises from contract and not from status and in particular the Indian Partnership Act does not apply to the family business carried on by: |
| A. | Cutchi-Memons |
| B. | Christians |
| C. | Burmese Buddhist husband and wife |
| D. | Mohammedans |
| Answer» D. Mohammedans | |
| 170. |
X, Y and Z are partners in a firm. X, without the authority of Y and Z buys certain shares in his name out of partnership money. Will 'shares' constitute partnership property? |
| A. | Yes |
| B. | No |
| C. | Can't say |
| D. | Depends on the facts of the case |
| Answer» B. No | |
| 171. |
In case of an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes: |
| A. | At such time as the parties to the contract intend it to be transferred |
| B. | When the price is paid |
| C. | When delivery is given |
| D. | When the contract is made |
| Answer» E. | |
| 172. |
Where the Unpaid Seller has parted with the goods by handing it over to a carrier for transmission, and the goods are in transit, he can reclaim possession thereof. This right is called |
| A. | Right of Lien |
| B. | Right of Stoppage of goods in transit |
| C. | Right of withholding delivery of goods |
| D. | Right of Re-sale |
| Answer» C. Right of withholding delivery of goods | |
| 173. |
The right of lien is available to the Unpaid Seller, u/s 47 of the Sale of Goods Act, when he is in possession of goods |
| A. | as an agent of the Buyer |
| B. | as a Bailee for the buyer |
| C. | in his own right |
| D. | all of the above |
| Answer» E. | |
| 174. |
The Seller of Goods is deemed to be an Unpaid Seller when the of the price has not been paid or tendered. |
| A. | Whole |
| B. | part |
| C. | substantial portion |
| D. | minimal portion |
| Answer» B. part | |
| 175. |
In case of interest by way of damages and special damages in a suit by the seller u/s 61, the interest may be calculated from |
| A. | date of tender of goods |
| B. | date on which the price was payable |
| C. | either (a) or (b) |
| D. | both (a) and (b) |
| Answer» C. either (a) or (b) | |
| 176. |
Which one of the following is relevant in normal circumstances in determining the amount of damages for breach of contract? |
| A. | Normally expected loss |
| B. | Difference between market price and contract price |
| C. | Sudden closure of production |
| D. | Additional expenses for procuring the goods |
| Answer» B. Difference between market price and contract price | |
| 177. |
The Seller of Goods is deemed to be an Unpaid Seller when a bill of exchange or other negotiable instrument has been received as conditional payment and the condition |
| A. | has been fulfilled |
| B. | has not been fulfilled |
| C. | has been waived |
| D. | has not be waived |
| Answer» C. has been waived | |
| 178. |
A contracts with B to construct a building for a fixed price, B supplying the necessary timber. This reciprocal promise is |
| A. | Mutual and Independent |
| B. | Mutual and Dependent |
| C. | Mutual and Concurrent |
| D. | None of the above |
| Answer» C. Mutual and Concurrent | |
| 179. |
Where a partnership contract is rescinded on grounds of fraud or misrepresentation, the party entitled to rescind, is also entitled to rank, in respect of any payment made by him for the firm's debts as a: |
| A. | Creditor |
| B. | Debtor |
| C. | Lender |
| D. | Guarantor |
| Answer» B. Debtor | |
| 180. |
Where under a contract of sale the property in goods is transferred from the seller to the buyer, the contract is called. |
| A. | an agreement to sell |
| B. | a sale |
| C. | both 'a' and 'b' |
| D. | either 'a' or 'b' |
| Answer» C. both 'a' and 'b' | |
| 181. |
If a contract of sale stipulates that price will be fixed by a third party on valuation of the goods, and the third party shows inability to do so, then, |
| A. | the agreement is void |
| B. | the buyer shall pay reasonable price |
| C. | the buyer shall pay market price |
| D. | the agreement is valid |
| Answer» B. the buyer shall pay reasonable price | |
| 182. |
Which one of the following conditions must be satisfied for making claim under 'Necessaries supplied to a person incapable of contracting?' |
| A. | The articles supplied should be necessaries |
| B. | The articles supplied should be necessaries at the time of sale and not delivery |
| C. | Necessaries must have been supplied gratuitously out of mere kindness |
| D. | Necessaries should be supplied only to person in competent to contract |
| Answer» E. | |
| 183. |
A and B agree that A shall pay ` 1000 for which B shall afterwards deliver to an either rice or smuggled opium. In this case |
| A. | The first agreement is void and the second voidable |
| B. | The first is voidable and the second is void |
| C. | The first is valid and the second is void |
| D. | The first is void and the second is valid |
| Answer» D. The first is void and the second is valid | |
| 184. |
In case of remote and indirect loss or damage sustained by reason of breach of contract, the aggrieved party is entitled to |
| A. | Ordinary damages |
| B. | Special damages |
| C. | No damages |
| D. | Exemplary damages |
| Answer» D. Exemplary damages | |
| 185. |
If loss or damage arose naturally and directly in the usual course of things from a breach of contract, the aggrieved party would be eligible for |
| A. | Special damages |
| B. | Nominal damages |
| C. | Ordinary damages |
| D. | Exemplary damages |
| Answer» D. Exemplary damages | |
| 186. |
Where a contact of sale is subject to any condition to be fulfilled by the seller and the seller commits a breach of that condition |
| A. | the buyer has to compulsorily treat the breach of condition as breach of warranty only |
| B. | the buyer may voluntarily waive the condition |
| C. | the buyer may do nothing |
| D. | the buyer may contact another seller |
| Answer» C. the buyer may do nothing | |
| 187. |
Stipulations in a contract providing for enhanced rate of interest from date of default of payment of principal or compound interest are considered to be in the nature of |
| A. | Liquidated damages |
| B. | Penalty |
| C. | Unliquidated damages |
| D. | None of these |
| Answer» C. Unliquidated damages | |
| 188. |
Contingent contract dependent on the non-happening of the event within a fixed time can be enforced, if the event:- |
| A. | Does not happen within the fixed time |
| B. | Before the time fixed such event becomes impossible |
| C. | Both (a) & (b) |
| D. | None of the above |
| Answer» D. None of the above | |
| 189. |
When 'at the desire of the promisor, the promisee or any other person has done or abstained from doing or does or abstain from doing some thing'- such act or abstinence or promise is called |
| A. | Agreement |
| B. | Contract |
| C. | Consideration |
| D. | Proposal |
| Answer» D. Proposal | |
| 190. |
A and B agree that law of limitation shall not apply to them. A debt becomes time barred and A refuses to pay the amount. Can B recover the amount under the terms of the agreement? |
| A. | Yes, the agreement between them is valid and enforceable |
| B. | No, the agreement is opposed to public policy |
| C. | No, the agreement is a voidable agreement and can be avoided by A |
| D. | No, the agreement falls under section 23 and hence illegal |
| Answer» E. | |
| 191. |
Which section, of Indian Contract Act defines "performance of the conditions of a proposal is an acceptance of the proposal"? |
| A. | Section 6 |
| B. | Section 7 |
| C. | Section 8 |
| D. | Section 9 |
| Answer» D. Section 9 | |
| 192. |
A paid `500 to a Government servant to get him a contract for the canteen. The Government servant could not get the contract. Can A recover `500 paid by him to the Government servant? |
| A. | yes, the agreement between them is valid and enforceable |
| B. | yes, the agreement is not opposed to public policy |
| C. | no, the agreement is a voidable agreement and can be avoided by A |
| D. | no, the agreement is void |
| Answer» E. | |
| 193. |
A paid ` 500 to a Government servant to get him a contract for the canteen. The Government servant could not get the contract. Can A recover ` 500 paid by him to the Government servant? |
| A. | yes, the agreement is opposed to public policy |
| B. | no, the agreement is opposed to public policy |
| C. | no, the agreement is a voidable agreement and can be avoided by A |
| D. | no, the agreement falls under section 23 and hence illegal |
| Answer» E. | |
| 194. |
X, Y and Z are under a joint promise to pay ` 8,000 to W. Z is unable to pay anything and Y is compelled to pay the entire amount. What amount can Y successfully claim from X? |
| A. | Y can claim ` 8,000 from X by way of contribution |
| B. | Y can claim ` 4,000 from X by way of contribution |
| C. | Y can claim ` 6,000 from X by way of contribution |
| D. | Y cannot claim anything from X |
| Answer» C. Y can claim ` 6,000 from X by way of contribution | |
| 195. |
When both the parties to an agreement are under a mistake as to a matter of fact essential to an agreement, the agreement is: |
| A. | Void |
| B. | Valid |
| C. | Voidable |
| D. | Illegal |
| Answer» B. Valid | |
| 196. |
A promised B to obtain an employment for him in a public office. B promised to pay `2,000 to A for this. B gets a job through A but refuses to pay the money. A can |
| A. | Challenge B's appointment on the ground of non-payment of money |
| B. | Sue B for `2,000 |
| C. | Do nothing |
| D. | Do both given at (a) and (b) above |
| Answer» D. Do both given at (a) and (b) above | |
| 197. |
A enters into an agreement with B who has robbed A of `10,000 to drop prosecution against him (B) in consideration of B's returning ` 8,000. Afterwards B refused to pay. A can get from B |
| A. | ` 8,000 |
| B. | ` 100 |
| C. | Nothing |
| D. | ` 10,000 plus damages |
| Answer» D. ` 10,000 plus damages | |
| 198. |
In a contract of debt when a sum is expressed to be payable on a certain date and a further sum is stipulated to be payable in the event of default, then latter sum is by way of |
| A. | Liquidated damages |
| B. | Penalty |
| C. | Special damages |
| D. | None of the above |
| Answer» C. Special damages | |
| 199. |
Where a party to a contract fails to perform at or before a specified time and it was the intention of the parties that time should be of the essence |
| A. | The contract becomes voidable |
| B. | The contract does not become voidable but the aggrieved party is entitled to compensation |
| C. | The contract becomes void |
| D. | None of these |
| Answer» B. The contract does not become voidable but the aggrieved party is entitled to compensation | |
| 200. |
A contracts to sing for B for a consideration of ` 5,000 which amount is paid in advance. A becomes unwell and is not able to perform. B suffers a loss of ` 10,000. A is liable to pay B |
| A. | ` 15,000 |
| B. | ` 10,000 |
| C. | ` 5,000 |
| D. | Nothing |
| Answer» C. ` 5,000 | |