More MCQs
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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