Accountancy 2 Solved MCQs

1.

While selling securities, brokerage is generally calculated on following price-

A. Face value
B. Sales price
C. Average of face value and sales price.
D. Book value
Answer» B. Sales price
2.

In case of ex-interest transaction, the amount of interest is calculated for the following period.

A. Upto the date of next interest payment
B. For the whole year
C. From the last date of interest payment till the date of transaction
D. For full 6 months.
Answer» C. From the last date of interest payment till the date of transaction
3.

Interest on security is calculated on -

A. It Face value
B. Its Market price
C. Its Purchase Price
D. None of these
Answer» A. It Face value
4.

Capital value in case of cum-interest purchase means -

A. The total amount paid to broker as purchase price.
B. Purchase price- Interest included + Brokerage
C. Market price on the date of purchase
D. Selling price + interest included
Answer» B. Purchase price- Interest included + Brokerage
5.

Investment Accounts are kept

A. Only by Brokers
B. only by Companies
C. By any person who is an investor
D. By stock exchange only
Answer» C. By any person who is an investor
6.

The interest on fixed dates are received only on following securities :

A. Equity shares of companies
B. Government securities
C. Shares of foreign companies
D. preference share of companies.
Answer» B. Government securities
7.

In case of purchase and sales of securities ex- interest -

A. Interest is payable in addition to market price
B. Market price includes interest also
C. No separate calculation for interest is made
D. The seller gets interest on the next interest date.
Answer» A. Interest is payable in addition to market price
8.

The Closing stock of investment is valued -

A. Always at purchase price
B. At cost or market price whichever is less
C. Always at market price
D. Purchase price less likely reduction in market price.
Answer» B. At cost or market price whichever is less
9.

Cum interest price of security is               than ex- interest price.

A. Less
B. More
C. May be more or less
D. None of these
Answer» B. More
10.

The Capital Value of Investments in case of ex- interest purchase (subject to Brokerage) means :

A. Market price on the date of purchase
B. Purchase Price + Interest + Brokerage
C. Purchase price - Interest + Brokerage
D. None of these
Answer» D. None of these
11.

Cost of Investment does not include

A. Interset
B. Brokerage
C. Stamp Duty
D. None of these
Answer» A. Interset
12.

Total amount payable less its cash price is equal to              -

A. Depreciation
B. Interest
C. Market Price
D. Purchase Price
Answer» B. Interest
13.

Cash price of asset + Interest =            price

A. Contract
B. Market
C. After Depreciation
D. Purchase
Answer» A. Contract
14.

Under hire-purchase system the amount of interest is charged to                 Account

A. Asset
B. Purchaser
C. Profit and Loss
D. Seller
Answer» C. Profit and Loss
15.

At the end of the year, the interest paid and depreciation charged are transferred to the account

A. Asset
B. Profit and Loss
C. Purchaser
D. Seller
Answer» B. Profit and Loss
16.

In which of the following method of sales, if the purchaser can't pay the amount of instalment, the vendor can get the assets as return back ?

A. Cash Method
B. Sales or Return based sale
C. Instalment system
D. Hire purchase system
Answer» D. Hire purchase system
17.

By deducting cash price from the contract price of assets, the difference of the amount is called

A. Original Price
B. Sales price
C. Interest
D. Istalment
Answer» C. Interest
18.

Which of the following is not included in the hire purchase agreement ?

A. Interest rate
B. Instalment amount
C. Methods for depreciation
D. Number of Instalment
Answer» C. Methods for depreciation
19.

In case of Hire purchase system, Interest is not included in-

A. Down payment
B. Hire purchase price
C. Intalment
D. None of these
Answer» A. Down payment
20.

Under the Hire purchase system, goods are delivered to the hirer when -

A. First Instalment is paid
B. Agreement is signed
C. Last instalment is paid
D. None of these
Answer» B. Agreement is signed
21.

Interest is calculated on                 under hire purchase agreement.

A. Cash Price
B. Hire purchase price
C. Balance of cash price outstanding at the beginning of instalment
D. None of these
Answer» C. Balance of cash price outstanding at the beginning of instalment
22.

Under the Hire purchase system, ownership of goods is transferred to the hirer when -

A. First Instalment is paid
B. Agreement is signed
C. Last instalment is paid
D. None of these
Answer» C. Last instalment is paid
23.

In case of Hire purchases, the depreciation is calculated on -

A. Hire purchase price
B. Contract Price
C. Cash price
D. None of these
Answer» C. Cash price
24.

The main difference between sale under Hire purchase agreement and sales under Installment system is regarding

A. Delivery of the goods
B. Ownership of the goods
C. Sales price of the goods
D. None of these
Answer» B. Ownership of the goods
25.

In pure single entry

A. Purchase and sales book is kept
B. Only cash book is kept
C. All susidiary books are kept
D. Certain subsidiary books are kept
Answer» B. Only cash book is kept
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