McqMate
Chapters
1301. |
Interest received in advance account is a |
A. | Nominal Account |
B. | Real Account |
C. | Artificial Personal Account |
D. | Representative Personal Account |
Answer» D. Representative Personal Account |
1302. |
Shiva draws a bill on Sanat on 25th October, 2018 for 90 days, the maturity date of the bill will be |
A. | 27th January, 2019 |
B. | 26th January, 2019 |
C. | 25th January, 2019 |
D. | 28th January, 2019 |
Answer» C. 25th January, 2019 |
1303. |
Peeru and Simu entered in the business of buy and sale of food grain for a period of one year and sharing the profit in the ratio of 3:2, this agreement is a |
A. | Partnership |
B. | Consignment |
C. | Joint-venture |
D. | Lease |
Answer» C. Joint-venture |
1304. |
At the end of the year 2017-18, Prepaid Insurance Premium `7,500 appeared in the Trial Balance, it will be shown |
A. | only in Profit & Loss Account. |
B. | only in Balance Sheet. |
C. | both in Profit & Loss Account and in Balance Sheet. |
D. | not in Both in Profit & Loss Account and in Balance Sheet. |
Answer» B. only in Balance Sheet. |
1305. |
Contingent Liability would appear |
A. | on the liabilities side of the Balance Sheet. |
B. | on the assets side of the Balance Sheet. |
C. | as a note in the Balance Sheet. |
D. | None of the above |
Answer» C. as a note in the Balance Sheet. |
1306. |
Debtors Ledger Adjustment Account is opened in the |
A. | Debtors Ledger |
B. | Creditors Ledger |
C. | General Ledger |
D. | Both Creditors Ledger and General Ledger |
Answer» C. General Ledger |
1307. |
Generally sacrifice ratio is concerned with the situation of |
A. | Admission of a new partner |
B. | Retirement of a partner |
C. | Dissolution of firm |
D. | Conversion of firm into company |
Answer» A. Admission of a new partner |
1308. |
KCS purchased a machine from JPS on hire purchase system, whose cash price was `8,64,000. ` 2,16,000 being paid on delivery and balance in three annual instalments of `2,88,000 each. The amount of interest included in first installment would be |
A. | 72,000 |
B. | 57,600 |
C. | 1,08,000 |
D. | 36,000 |
Answer» C. 1,08,000 |
1309. |
Which of the following is a resource owned by the business with the purpose of using it for generating future profits? |
A. | Loan from Bank |
B. | Owner's Capital |
C. | Trade Mark |
D. | All of the above |
Answer» C. Trade Mark |
1310. |
Chandu & Co.'s Account is a |
A. | Real Account |
B. | Nominal Account |
C. | Representative Personal Account |
D. | Artificial Personal Accounts |
Answer» D. Artificial Personal Accounts |
1311. |
Purchase of a laptop for office use wrongly debited to Purchase Account. It is an error of |
A. | Omission |
B. | Commission |
C. | Principle |
D. | Misposting |
Answer» C. Principle |
1312. |
Which of the following term is most suitable for writing off Patent? |
A. | Depletion |
B. | Amortization |
C. | Depreciation |
D. | All of the above |
Answer» B. Amortization |
1313. |
Memorandum Joint Venture Account is prepared when |
A. | the separate set of books is maintained for Joint Venture. |
B. | each Co-venturer keeps records of all transactions. |
C. | each Co-venturer keeps records of their own transactions only. |
D. | All of the above cases |
Answer» C. each Co-venturer keeps records of their own transactions only. |
1314. |
Which of the following commission is allowed by the consignor to the consignee to encourage the consignee for putting-up hard work in introducing new product in the market? |
A. | Del-credere Commission |
B. | Over-riding Commission |
C. | Hard work Commission |
D. | Ordinary Commission |
Answer» B. Over-riding Commission |
1315. |
If Ram's acceptance which was endorsed by us in favour of Saleem is dishonoured, then the amount will be debited in our books to |
A. | Saleem |
B. | Ram |
C. | Bills Receivable Account |
D. | None of the above |
Answer» B. Ram |
1316. |
In case of a Club, the excess of expenditure over income is called as |
A. | Surplus |
B. | Deficit |
C. | Capital Fund |
D. | Investment in Fixed Assets |
Answer» B. Deficit |
1317. |
A Charitable Institution has 250 members with a annual subscription of `5,000 each. The subscription received during 2018-19 were `11,25,000, which include ` 65,000 and `25,000 for the years of 2017-18 and 2019-20 respectively. Amount of outstanding subscription for the 2018-19 will be |
A. | 90,000 |
B. | 1,25,000 |
C. | 2,15,000 |
D. | 1,90,000 |
Answer» C. 2,15,000 |
1318. |
The following are details of closing stock items in Aarvi Limited: Items Historical Cost (` in Lakh) Net Realizable Value (` in Lakh) (a) 30 27 (b) 15 18 (c) 35 35 (d) 40 45 The value of Closing Stock will be |
A. | 120 Lakh |
B. | 125 Lakh |
C. | 117 Lakh |
D. | 128 Lakh |
Answer» C. 117 Lakh |
1319. |
When stock is valued at cost in one accounting period and at lower of cost and Net realizable value in another accounting period |
A. | Prudence Principle conflicts with Consistency Principle. |
B. | Matching Principle conflicts with Consistency principle. |
C. | Consistency Principle conflicts with Accounting Period Assumption. |
D. | None of the above |
Answer» A. Prudence Principle conflicts with Consistency Principle. |
1320. |
Materiality Principle is an exception to the |
A. | Consistency principle |
B. | Full disclosure Principle |
C. | Accounting Period Assumption |
D. | Prudence Principle |
Answer» B. Full disclosure Principle |
1321. |
In a Cash Book Debit balance of `112 brought forward as credit balance of ` 121, while preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the starting point: |
A. | 112 to be added |
B. | 121 to be added |
C. | 233 to be added |
D. | 112 to be subtracted |
Answer» C. 233 to be added |
1322. |
______________ represents a potential obligation that could be created depending on the outcome of an event. |
A. | Internal Liability |
B. | Current Liability |
C. | Contingent Liability |
D. | Non-current Liability |
Answer» C. Contingent Liability |
1323. |
Opening Debtors, Collection from Debtors and Discount Allowed were `3,15,000; `18,30,000 and `35,000 respectively. If the closing debtors were 20% of credit sales of the period then closing debtors and credit sales would be |
A. | 3,51,667 and`17,58,333 |
B. | 3,63,333 and `18,16,667 |
C. | 3,87,500 and `19,37,500 |
D. | 3,10,000 and `15,50,000 |
Answer» C. 3,87,500 and `19,37,500 |
1324. |
Following information is given ` Opening Stock 2,13,000 Purchase 16,55,000 Sales 21,32,000 Carriage Inwards 32,500 Carriage Outwards 38,600 Return Inwards 38,000 If the rate of gross profit is 25% on cost then value of closing stock will be |
A. | 2,57,800 |
B. | 1,94,900 |
C. | 2,25,300 |
D. | 3,30,000 |
Answer» C. 2,25,300 |
1325. |
Provision for Doubtful Debt on 1st April, 2018 was `21,500. During the year 2018 – 19 the Bad-debt and Recovery of Bad-debt were ` 10,500 and ` 2,100 respectively. The Sundry Debtors on 31st March, 2019 were `2,25,000. Provision is to be made @ 5% on Debtors. If on 31st March, 2019, there was additional Bad-debt of ` 2,500 then Provision for doubtful-debt will be |
A. | debited to Profit & Loss Account by `11,250. |
B. | debited to Profit & Loss Account by `2,625. |
C. | debited to Profit & Loss Account by `3,000. |
D. | debited to Profit & Loss Account by `900. |
Answer» B. debited to Profit & Loss Account by `2,625. |
1326. |
A and B enter into a joint venture sharing profit and losses in the ratio of 3:2. A purchased goods costing `2,00,000. B sold 95% goods for ` 2,50,000. A is entitled to get 1% commission on purchase and B is entitled to get 5% commission on sales. A drew a bill on B for an amount equivalent to 80% of original cost of goods. A got it discounted at `1,50,000. What is A's share of profit? |
A. | 15,300 |
B. | 21,300 |
C. | 18,900 |
D. | None of the above |
Answer» B. 21,300 |
1327. |
On 31st March, 2018 (`) On 31st March, 2019 (`) Subscription Outstanding 55,000 72,000 Subscription Received in Advance 31,000 37,000 The amount of subscription received during the year 2018-19 would be |
A. | 6,36,000 |
B. | 6,02,000 |
C. | 6,14,000 |
D. | 6,48,000 |
Answer» B. 6,02,000 |
1328. |
_______________ is prepared at the end of the accounting period to show the financial position o f business |
A. | Profit & low account |
B. | Balance sheet |
C. | Trail balanc |
Answer» B. Balance sheet |
1329. |
Payment of monthly rent to land cord is |
A. | Economic event |
B. | Non-economic event |
C. | None of thes |
Answer» A. Economic event |
1330. |
_____________is the original form of accounting |
A. | Financial accounting |
B. | Cost accounting |
C. | Management accountin |
Answer» C. Management accountin |
1331. |
_____________is an example of fixed asset |
A. | Receivable |
B. | Stock |
C. | Land & building |
Answer» C. Land & building |
1332. |
The term _________denotes the cost of services and things used for earning revenue |
A. | Income |
B. | Expense |
C. | Los |
Answer» B. Expense |
1333. |
A person who owes money to the business is a __________ |
A. | Debtor |
B. | Creditor |
C. | Investo |
Answer» A. Debtor |
1334. |
A _________ is a person to whom business owes money |
A. | Creditor |
B. | Debtor |
C. | proprieto |
Answer» A. Creditor |
1335. |
___________denote goods brought for sale. |
A. | Sales |
B. | Purchase |
C. | Expense |
Answer» B. Purchase |
1336. |
________________ is an example of wasting asset |
A. | Mines |
B. | Land |
C. | Closing stoc |
Answer» A. Mines |
1337. |
Asset acquired for long period of time in the business is known as ___________ |
A. | Fixed asset |
B. | Current asset |
C. | Fictitious asse |
Answer» A. Fixed asset |
1338. |
Things which are purchased by the business for resale are called________ |
A. | Purchase |
B. | Sale |
C. | Liabilit |
Answer» A. Purchase |
1339. |
____________ expenditure is increased to maintain the business or to keep the assets in good working condition |
A. | Revenue |
B. | Capital |
C. | Both of ther |
Answer» A. Revenue |
1340. |
______________ is the major source of revenue of any business |
A. | Purchase |
B. | Sale |
C. | Interes |
Answer» B. Sale |
1341. |
_______________ represent the amount invested by the owner into business. |
A. | Capital |
B. | Revenue |
C. | Asse |
Answer» A. Capital |
1342. |
A___________ transaction is one where in items are exchanged for other items |
A. | Cash |
B. | Credit |
C. | Barte |
Answer» C. Barte |
1343. |
Excess of current asset over current liabilities is known as _________ capital |
A. | Fixed |
B. | Working |
C. | Curren |
Answer» B. Working |
1344. |
___________ is not a tangible asset |
A. | Goodwill |
B. | Land |
C. | Closing stoc |
Answer» A. Goodwill |
1345. |
According to _________ concept it is assumed that the business will last for long time |
A. | Accounting entity |
B. | Going concern |
C. | Accounting perio |
Answer» B. Going concern |
1346. |
Accounting is concerned with |
A. | Monetary |
B. | Non- monetary |
C. | Monetary & Nonmonetar |
Answer» A. Monetary |
1347. |
Transaction& events not capable of being expressed in terms of money are not to be recorded in accounting due to |
A. | Going concern |
B. | Accounting entity |
C. | Money measuremen |
Answer» C. Money measuremen |
1348. |
Income is measured on the basics of |
A. | Entity concept |
B. | Accounting period concept |
C. | Going concern concep |
Answer» B. Accounting period concept |
1349. |
The policy of anticipate no profit and provide for all possible losses is followed due to |
A. | Conservation concept |
B. | Consistency concept |
C. | Cost concep |
Answer» B. Consistency concept |
1350. |
In every business transaction at least ______parties are involved |
A. | Two |
B. | Three |
C. | Fou |
Answer» A. Two |
1351. |
All those to whom business owes to money are |
A. | Debtor |
B. | Creditor |
C. | Investo |
Answer» B. Creditor |
1352. |
Accounts receivable normally has ________ balance |
A. | Credit |
B. | Debit |
C. | Negativ |
Answer» B. Debit |
1353. |
Financial statements are the part of _________ |
A. | Book- keeping |
B. | Accounting |
C. | None of the abov |
Answer» B. Accounting |
1354. |
Bank account is a _________ |
A. | Personal accounting |
B. | Real account |
C. | Nominal accoun |
Answer» A. Personal accounting |
1355. |
Cost of goods old can be calculated by: |
A. | Balance sheet |
B. | Profit& loss account |
C. | Trading accoun |
Answer» C. Trading accoun |
1356. |
Capital expenditure are recorded in the __________ |
A. | Balance sheet |
B. | Profit & loss account |
C. | Trading accoun |
Answer» A. Balance sheet |
1357. |
Nominal accounts are related to |
A. | Assets& liability |
B. | Expenses & losses |
C. | Debtors & creditor |
Answer» B. Expenses & losses |
1358. |
Sales journal is used for recording |
A. | Cash sales |
B. | Credit sales |
C. | Total sal |
Answer» B. Credit sales |
1359. |
Trading account is a ____________account |
A. | Real |
B. | Nominal |
C. | Persona |
Answer» B. Nominal |
1360. |
Closing stock is valued at ____________ |
A. | Market price |
B. | Cost price |
C. | Cost price or market price whichever is les |
Answer» C. Cost price or market price whichever is les |
1361. |
Balance sheet is an ______________ |
A. | Statement |
B. | Account |
C. | Bot |
Answer» A. Statement |
1362. |
Wages paid on for the erection of machinery is debited to |
A. | Machinery accounting |
B. | Wage accounting |
C. | Cash accountin |
Answer» A. Machinery accounting |
1363. |
Income tax is debited to ________________ |
A. | Profit and loss account |
B. | Cash accounting |
C. | Drawings accoun |
Answer» C. Drawings accoun |
1364. |
Goods taken by the proprietor for personal is shown as a deduction from_____________ |
A. | Sales |
B. | Capital |
C. | Purchas |
Answer» C. Purchas |
1365. |
Asset that can be converted into cash within a year are called _________asset |
A. | Current |
B. | Fixed asset |
C. | Wasting asse |
Answer» A. Current |
1366. |
Balance sheet is prepared for a ____________ |
A. | Period |
B. | On a particular date |
C. | Entire life of busines |
Answer» B. On a particular date |
1367. |
Income received in advance is an ___________ |
A. | Asset |
B. | Liability |
C. | Expense |
Answer» B. Liability |
1368. |
If goods are destroyed by fire , the total value of loss is __________ to trading account. |
A. | Debited |
B. | Credited |
C. | Not take |
Answer» B. Credited |
1369. |
Provision for account on creditors has a _________________balance |
A. | Debit |
B. | Credit |
C. | None of thes |
Answer» A. Debit |
1370. |
Income earned but not received to known as _______________ income |
A. | Accrued |
B. | Prepaid |
C. | Nomina |
Answer» A. Accrued |
1371. |
Prepaid expense is _________ to the business |
A. | Asset |
B. | Liability |
C. | Expense |
Answer» A. Asset |
1372. |
Withdrawing more amount from bank than the deposit in the account is termed as____ |
A. | Fixed deposit |
B. | Current deposit |
C. | overdraf |
Answer» C. overdraf |
1373. |
Income of overdraft, pass book will show __________balance |
A. | Debit |
B. | Credit |
C. | None of thes |
Answer» A. Debit |
1374. |
Cash book shows ___________balance when there is an O.D. |
A. | Debit |
B. | Credit |
C. | None of thes |
Answer» B. Credit |
1375. |
When bank charge incurred, overdraft will be __________________________ |
A. | increased |
B. | decreased |
C. | no charg |
Answer» A. increased |
1376. |
__________________ balance in cash book indicate deposit balance |
A. | Credit |
B. | Debit |
C. | Any balanc |
Answer» B. Debit |
1377. |
Special journal are also called________________ |
A. | Journal |
B. | Ledger |
C. | Day boo |
Answer» C. Day boo |
1378. |
Cash book is a ____________ |
A. | Journal |
B. | Ledger |
C. | Journal & ledge |
Answer» C. Journal & ledge |
1379. |
All cash purchases are entered in the _____________book |
A. | Cash |
B. | Purchase |
C. | Journal prope |
Answer» A. Cash |
1380. |
Discount columns in the cash book are |
A. | Totaled |
B. | Balanced |
C. | Not show |
Answer» A. Totaled |
1381. |
The book that records small payment. |
A. | Single column |
B. | Double column |
C. | Petty cash boo |
Answer» C. Petty cash boo |
1382. |
A petty cash book is usually kept under system |
A. | Mercantile |
B. | Cash system |
C. | Import syste |
Answer» C. Import syste |
1383. |
If both the aspects of a same transaction appear in one account, it is called _______entry |
A. | Simple journal entry |
B. | Compound |
C. | Contra entr |
Answer» B. Compound |
1384. |
Journal is a book of ______entry |
A. | Original |
B. | Secondary |
C. | None of thes |
Answer» A. Original |
1385. |
Ledger is a book of ___________entry |
A. | Original |
B. | Secondary |
C. | None of these |
Answer» B. Secondary |
1386. |
Recording of transaction in the journal is called |
A. | Journalizing |
B. | Posting |
C. | Recordin |
Answer» A. Journalizing |
1387. |
Recording of transaction in ledger is called as |
A. | Journalizing |
B. | Posting |
C. | Recordin |
Answer» B. Posting |
1388. |
Capital account is ________________ account |
A. | Personal |
B. | Real |
C. | Nomina |
Answer» A. Personal |
1389. |
Old furniture sold should be credited to __________ |
A. | Sales account |
B. | Furniture account |
C. | Cash accoun |
Answer» B. Furniture account |
1390. |
When salary paid by cheque ,____________account is credited |
A. | Salary |
B. | Personal |
C. | Ban |
Answer» C. Ban |
1391. |
A statement of debt & credit balance of account is ___________ |
A. | Ledger |
B. | Profit & loss account |
C. | Trial balanc |
Answer» C. Trial balanc |
1392. |
A collection of all accounts is a ___________ |
A. | Journal |
B. | Ledger |
C. | Balance shee |
Answer» B. Ledger |
1393. |
Debit is the asset means |
A. | Increase |
B. | Decrease |
C. | No charg |
Answer» A. Increase |
1394. |
Credit in the liability means |
A. | Increase |
B. | Decrease |
C. | No charg |
Answer» A. Increase |
1395. |
Capital always have a __________balance |
A. | Debit |
B. | Credit |
C. | Either a or |
Answer» B. Credit |
1396. |
A short description of every transaction made in the journal is called |
A. | Summary |
B. | Description |
C. | Narratio |
Answer» C. Narratio |
1397. |
Capital expenditure are recorded in the __________ |
A. | Balance sheet |
B. | Trading account |
C. | Profit & loss accoun |
Answer» A. Balance sheet |
1398. |
Bills receivable is a ___________ |
A. | Tangible asset |
B. | Fixed asset |
C. | Current asse |
Answer» C. Current asse |
1399. |
Carriage outward is debited to___________ |
A. | Trading accounting |
B. | Profit & loss account |
C. | Balance shee |
Answer» B. Profit & loss account |
1400. |
Sales return appearing in the trail balance are deducted from |
A. | Capital |
B. | Sales |
C. | Purchas |
Answer» B. Sales |
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