McqMate
Chapters
601. |
Receipts and payment account contains |
A. | Only receipts and payment of current year |
B. | All receipts and payments |
C. | Income and expenditure |
D. | All the above |
Answer» B. All receipts and payments |
602. |
Balance of receipts and payments account represents |
A. | Cash in hand or at bank |
B. | Surplus |
C. | Deficit |
D. | Reserve |
Answer» A. Cash in hand or at bank |
603. |
Income and expenditure account is a ________ |
A. | Real |
B. | Nominal |
C. | Personal |
D. | None of these |
Answer» B. Nominal |
604. |
Any profit on sale of a cricket bat of a club will be taken to ________ |
A. | Income and expenditure( credits side) |
B. | Income and expenditure debit side |
C. | Balance sheet assets side |
D. | Balance sheet liability side |
Answer» A. Income and expenditure( credits side) |
605. |
Educational institutions are |
A. | Profit organizations |
B. | Non profit organizations |
C. | Wealth organization |
D. | Social organization |
Answer» B. Non profit organizations |
606. |
Non profit organizations trial balance shows |
A. | Debit |
B. | Credit |
C. | Equal balance |
D. | Suspense account |
Answer» C. Equal balance |
607. |
Receipts and payment accounts, I & E account and balance sheet are the financial statement of |
A. | Company |
B. | Partnership firm |
C. | Sole trader concern |
D. | Nonprofit organization |
Answer» D. Nonprofit organization |
608. |
Purchase of assets are entered in nonprofit organization’s book is called |
A. | Stock register |
B. | Purchase register |
C. | Asset register |
D. | Cash register |
Answer» A. Stock register |
609. |
Receipts and payment account is a ________ account |
A. | Personal |
B. | Real |
C. | Nominal |
D. | General |
Answer» B. Real |
610. |
In a non profit organizations cashbook shows________ in its debit side |
A. | Assets |
B. | Liabilities |
C. | Receipts |
D. | Payment |
Answer» C. Receipts |
611. |
Receipts and payment account begins with opening balance of |
A. | Receipts |
B. | Payments |
C. | Creditors |
D. | Cash |
Answer» D. Cash |
612. |
Receipts and payment accounts includes all receipts and payments of |
A. | Capital nature |
B. | Revenue nature |
C. | Cash nature |
D. | None of these |
Answer» B. Revenue nature |
613. |
Receipts and payment accounts records all receipts and payments of |
A. | Current year |
B. | Previous year |
C. | Subsequent year |
D. | All of these |
Answer» D. All of these |
614. |
While preparing the final a accounts of non trading concerns where do you show receipts and payments of special nature |
A. | Balance sheet |
B. | P & L account |
C. | I & E account |
D. | R & P account |
Answer» A. Balance sheet |
615. |
What does the balance of income and expenditure account shows |
A. | Cash |
B. | Debit or credit |
C. | Profit or loss |
D. | Surplus or deficit |
Answer» D. Surplus or deficit |
616. |
Donation of Rs 1000 is |
A. | Income |
B. | Capital |
C. | Liability |
D. | Asset |
Answer» A. Income |
617. |
Specific donation of Rs 1000 is |
A. | Income |
B. | Capital |
C. | Liability |
D. | Asset |
Answer» B. Capital |
618. |
Donation which is given as per will is known as |
A. | Special donation |
B. | Gift |
C. | Legacy |
D. | Secret donation |
Answer» C. Legacy |
619. |
Loss on sale of asset is taken to |
A. | Receipts and payments account |
B. | Income and expenditure account |
C. | Balance sheet |
D. | Trial balance |
Answer» B. Income and expenditure account |
620. |
Honorarium is taken to |
A. | Receipts and payment account |
B. | Income and expenditure account |
C. | Balance sheet |
D. | Trial balance |
Answer» B. Income and expenditure account |
621. |
Honorarium is |
A. | Revenue income |
B. | Capital income |
C. | Revenue expenditure |
D. | Capital expenditure |
Answer» A. Revenue income |
622. |
Sales of grass in the case of a sports club is |
A. | A capital receipts |
B. | A revenue receipts |
C. | An asset |
D. | A liability |
Answer» B. A revenue receipts |
623. |
Life membership fees received by a club is treated as |
A. | Revenue receipts |
B. | Capital receipts |
C. | Assets |
D. | Special receipts |
Answer» B. Capital receipts |
624. |
The system of keeping incomplete record is termed as |
A. | Double entry system |
B. | Original entry system |
C. | Single entry system |
D. | journal entry system |
Answer» C. Single entry system |
625. |
The trial balance of the accounts of incomplete records shows |
A. | debit balance |
B. | credit balance |
C. | equal balance |
D. | none of these |
Answer» D. none of these |
626. |
Opening statement of affairs is prepared to find out |
A. | opening capital |
B. | opening profit |
C. | opening assets |
D. | opening liability |
Answer» A. opening capital |
627. |
In capital comparison method gross profit= |
A. | excess of opening capital over closing capital |
B. | excess of closing capital over opening capital |
C. | excess of sales over purchase |
D. | excess of income over expenditure |
Answer» B. excess of closing capital over opening capital |
628. |
Incomplete records are maintained usually by a |
A. | company |
B. | government |
C. | sole trader |
D. | partnership firm |
Answer» C. sole trader |
629. |
Creditors account is prepared to ascertain |
A. | cash purchases |
B. | cash sales |
C. | credit sales |
D. | credit purchases |
Answer» A. cash purchases |
630. |
To find out credit sales which account should be prepared |
A. | debtors account |
B. | creditors account |
C. | sales account |
D. | purchases account |
Answer» A. debtors account |
631. |
Cash paid to creditors + closing creditors – opening creditors = |
A. | total purchase |
B. | cash purchase |
C. | credit purchases |
D. | total debtors |
Answer» C. credit purchases |
632. |
Bills receivable as endorsed is debited to |
A. | creditors account |
B. | bills receivable account |
C. | debtors account |
D. | bills payable account |
Answer» A. creditors account |
633. |
Bills payable honored during the year will be debited to ______ |
A. | cash account |
B. | bills payable |
C. | bills receivable |
D. | creditors |
Answer» B. bills payable |
634. |
Cash paid to creditors can be calculated from |
A. | debtors account |
B. | creditors account |
C. | bills receivable account |
D. | bills payable account |
Answer» B. creditors account |
635. |
Bills payable dishonored during g the year will be credited to |
A. | bills payable |
B. | creditors |
C. | bills receivable |
D. | debtors |
Answer» A. bills payable |
636. |
Rent and rates are apportioned to different departments on the basis of |
A. | floor area occupied |
B. | no of workers |
C. | sales of each dept |
D. | value of the assets kept |
Answer» A. floor area occupied |
637. |
The turn over ratio is used for the allocation of |
A. | income tax |
B. | bad debts |
C. | depreciation |
D. | staff welfare expenses |
Answer» B. bad debts |
638. |
Provision for unrealized profit with respect to stock when transfers are affected at transfer price is to be charged to |
A. | dept trading account |
B. | dept profit and loss account |
C. | either a or b |
D. | general profit and loss account |
Answer» D. general profit and loss account |
639. |
Branch account under debtors system is a _______ account |
A. | real |
B. | nominal |
C. | personal |
D. | representative personal |
Answer» B. nominal |
640. |
Branch account under stock and debtors system is a ________ account |
A. | real |
B. | nominal |
C. | personal |
D. | representative personal |
Answer» A. real |
641. |
When branch A sent goods to branch B in the books of branch A debit is given to |
A. | head office account |
B. | branch B account |
C. | sales returns account |
D. | purchase returns account |
Answer» A. head office account |
642. |
Goods sent by the head office to the branch but not received by the branch before the close of financial year are credited by head office to |
A. | branch account |
B. | trading account |
C. | goods sent to branch account |
D. | goods in transit account |
Answer» A. branch account |
643. |
When a branch purchases fixed assets and the assets account is to be kept in the books of the head office, the branch makes the following entry |
A. | debits head office credits bank |
B. | debits branch credits head office |
C. | debits head office credits branch asset |
D. | debit branch assets credit banks |
Answer» A. debits head office credits bank |
644. |
Depreciation on branch assets under debtors system is |
A. | not shown separately in branch account |
B. | shown in branch account |
C. | not accounted |
D. | shown in the profit and loss account of head office |
Answer» A. not shown separately in branch account |
645. |
Stock reserve in relation to closing stock appears |
A. | on the debit side of branch account |
B. | on the credit side of branch account |
C. | on the debit side of profit and loss account |
D. | on the credit side of profit and loss account |
Answer» A. on the debit side of branch account |
646. |
Branch adjustment account is in the nature of ______ |
A. | nominal |
B. | personal |
C. | real |
D. | none of these |
Answer» A. nominal |
647. |
Cash remitted by branch but not received by the head office is debited by the head office to _____ |
A. | goods in transit |
B. | cash in transit |
C. | branch account |
D. | head office account |
Answer» B. cash in transit |
648. |
Goods sent by branch X to branch Y will be debited to ______ |
A. | branch Y |
B. | branch X |
C. | head office |
D. | goods sent account |
Answer» A. branch Y |
649. |
Under hire purchase system depreciation is charged: |
A. | on cash price |
B. | hire purchase price |
C. | market price |
D. | none of these |
Answer» A. on cash price |
650. |
Hirer charges depreciation on |
A. | hire purchase price |
B. | cash price |
C. | lower of the two |
D. | none of these |
Answer» B. cash price |
651. |
What is transferred to hirer under hire purchase system |
A. | ownership of asset |
B. | possession of assets |
C. | ownership and possession of asset |
D. | none of these |
Answer» B. possession of assets |
652. |
Hire purchase act is |
A. | 1932 |
B. | 1956 |
C. | 1972 |
D. | 1872 |
Answer» C. 1972 |
653. |
The sale of goods act is applicable in |
A. | Credit purchase |
B. | Cash purchases |
C. | Cash sales |
D. | None of these |
Answer» B. Cash purchases |
654. |
What is transferred to hirer under installment payment system |
A. | Ownership of assets |
B. | Possession of assets |
C. | ownership and possession of asset |
D. | none of these |
Answer» C. ownership and possession of asset |
655. |
Which account is prepared to find out the amount of closing stock |
A. | head office account |
B. | branch account |
C. | memorandum stock account |
D. | none of these |
Answer» C. memorandum stock account |
656. |
In foreign branch fixed asset shall be converted at |
A. | opening rate |
B. | average rate |
C. | rate of the date of purchase |
D. | none of these |
Answer» A. opening rate |
657. |
By what rate the balance of head office account is converted in foreign branch |
A. | opening rate |
B. | closing rate |
C. | average rate |
D. | none of these |
Answer» D. none of these |
658. |
Excess of asset over liability is called |
A. | creditors |
B. | profit |
C. | capital |
D. | goodwill |
Answer» C. capital |
659. |
Following records are made in single entry system , give correct answer |
A. | only in cashbook |
B. | in ledger, posting of personal accounts only |
C. | records in cashbook and posting of only personal accounts in ledger |
D. | none of these |
Answer» C. records in cashbook and posting of only personal accounts in ledger |
660. |
Meaning of single entry system of book keeping is |
A. | only one entry for each transaction |
B. | incomplete double entry system |
C. | both entries only in accounts |
D. | none of these |
Answer» B. incomplete double entry system |
661. |
Single entry system of book keeping system |
A. | is best system |
B. | is scientific system |
C. | is incomplete system |
D. | is most popular system |
Answer» C. is incomplete system |
662. |
The liabilities and assets respectively are rs 87000 and rs 92000.amount of difference will be |
A. | creditors |
B. | debentures |
C. | capital |
D. | none of these |
Answer» D. none of these |
663. |
To find out the opening and closing capitals statement of affairs are prepared |
A. | one |
B. | two |
C. | three |
D. | four |
Answer» B. two |
664. |
In which book the transactions are recorded originally |
A. | cashbook |
B. | balance sheet |
C. | journal |
D. | subsidiary book |
Answer» C. journal |
665. |
Floating asset is known as |
A. | fixed asset |
B. | current assets |
C. | non current assets |
D. | long term asset |
Answer» B. current assets |
666. |
As per the cost of concept an asset is recorded at its |
A. | market cost |
B. | actual cost |
C. | normal cost |
D. | purchase cost |
Answer» B. actual cost |
667. |
The business will continue to operate for an indefinitely long period in the future, unless there is a good evidence to the contrary this assumption is related to |
A. | cost concept |
B. | dual aspect concept |
C. | matching concept |
D. | none of these |
Answer» D. none of these |
668. |
Which book the work classification is done |
A. | trial balance |
B. | ledger |
C. | balance sheet |
D. | Journal |
Answer» B. ledger |
669. |
A person who owes money to the firm is called |
A. | Debtors |
B. | Creditors |
C. | Owners |
D. | Bankers |
Answer» A. Debtors |
670. |
Debit the losses and expenses and credit the gain and income is applicable to ______ |
A. | Personal account |
B. | Real account |
C. | Nominal account |
D. | Owners account |
Answer» C. Nominal account |
671. |
Trade mark account is |
A. | Real account |
B. | Personal account |
C. | Nominal account |
D. | Non personal account |
Answer» A. Real account |
672. |
Goodwill is a |
A. | Personal account |
B. | Nominal account |
C. | Real account |
D. | Non personal account |
Answer» C. Real account |
673. |
Purchase goods from ram this is a |
A. | Cash purchase |
B. | Credit purchase |
C. | Partly cash purchase |
D. | Bulk purchase |
Answer» B. Credit purchase |
674. |
Sold machinery worth Rs 10000 to Ramesh.it is entered in the |
A. | Sales account |
B. | Cash account |
C. | Sales return account |
D. | Machinery account |
Answer» D. Machinery account |
675. |
Return outwards book is known as |
A. | Purchase return journal |
B. | Sales return book |
C. | Purchase from outsiders |
D. | Return inwards |
Answer» A. Purchase return journal |
676. |
Debt notice prepared by the purchase of goods when ____ |
A. | He return the goods |
B. | He purchases the goods |
C. | He purchases For credit |
D. | He purchases for cash |
Answer» A. He return the goods |
677. |
_____ from the source document for sales returns |
A. | Credit note |
B. | Debit note |
C. | Sales note |
D. | Sales return note |
Answer» A. Credit note |
678. |
A cashbook which contain only one column is |
A. | Double column cashbook |
B. | Three column cashbook |
C. | Simple cashbook |
D. | Petty cashbook |
Answer» C. Simple cashbook |
679. |
Entries come both on the debit side and credit side of cashbook called |
A. | Dual entries |
B. | Contra entries |
C. | Double column entries |
D. | Cash entries |
Answer» B. Contra entries |
680. |
In cashbooks “C” means |
A. | Cash |
B. | Column |
C. | Credit |
D. | Contra |
Answer» D. Contra |
681. |
Three column cashbook contains |
A. | Cash ,credit ,bank |
B. | Cash, discount, bank |
C. | Cash, petty cash, expenses |
D. | Cash, bank, income |
Answer» B. Cash, discount, bank |
682. |
Small payments are entered in |
A. | Simple cashbook |
B. | Petty cash book] |
C. | Double column cashbook |
D. | Three column cashbook |
Answer» B. Petty cash book] |
683. |
Imprest system is used in |
A. | Petty cashbook |
B. | Simple cashbook |
C. | Double column cashbook |
D. | Three column cashbook |
Answer» A. Petty cashbook |
684. |
An error which violates the fundamentals of book keeping is called |
A. | Errors of omission |
B. | Errors of amount in original book |
C. | Compensating error |
D. | Error of principle |
Answer» D. Error of principle |
685. |
Which error does not affect the trial balance |
A. | Errors of omission |
B. | Errors of amount in original book |
C. | Compensating error |
D. | Error of principle |
Answer» A. Errors of omission |
686. |
The account to which the difference in the trial balance is temporarily placed , so that the trial balance is made totally, such an account is called |
A. | Customers account |
B. | Suspense account |
C. | Bank account |
D. | Capital account |
Answer» B. Suspense account |
687. |
Journal entries passed to correct the errors are called |
A. | Closing entry |
B. | Opening entries |
C. | Adjusting entry |
D. | Rectifying entry |
Answer» D. Rectifying entry |
688. |
Errors cancelled by themselves are called |
A. | Compensating errors |
B. | Errors of principle |
C. | Errors of omission |
D. | Errors of commission |
Answer» A. Compensating errors |
689. |
Rs 280 received from Roy is credited to his account as Rs 208,this error is called |
A. | Compensating errors |
B. | Errors of principle |
C. | Errors of omission |
D. | Errors of commission |
Answer» A. Compensating errors |
690. |
A suspense account is created when the _______ of the trial balance does not agree |
A. | Debit side |
B. | Credit side |
C. | Asset side |
D. | balance |
Answer» D. balance |
691. |
The balance of trading account is called |
A. | Balance carried down |
B. | Net profit |
C. | Gross profit |
D. | Suspense account |
Answer» C. Gross profit |
692. |
Advertisement is a |
A. | Revenue expense |
B. | Capital expense |
C. | Day today expense |
D. | Deferred revenue expense |
Answer» D. Deferred revenue expense |
693. |
Direct expenses are debited in the |
A. | Balance sheet |
B. | Trial balance |
C. | Profit and loss account |
D. | Trading account |
Answer» B. Trial balance |
694. |
The stock is valued at |
A. | Cost price |
B. | Market price |
C. | Cost price or market price whichever is higher |
D. | Cost price or market price whichever is lower |
Answer» D. Cost price or market price whichever is lower |
695. |
Adjusted purchase means |
A. | Purchase |
B. | Purchase + opening stock |
C. | Purchase‐ closing stock |
D. | Closing stock + opening stock |
Answer» D. Closing stock + opening stock |
696. |
The main purpose of accounting is to provide financial info to |
A. | Shareholder |
B. | Board of directors |
C. | Tax authorities |
D. | All of these |
Answer» D. All of these |
697. |
Which of the following is an operating expenses |
A. | Bad debt |
B. | Salary to manager |
C. | Depreciation |
D. | Expired insurance |
Answer» B. Salary to manager |
698. |
Branch stock is always prepared at _______ price |
A. | Cost |
B. | Invoice |
C. | Market price |
D. | Cost or market price whichever is less |
Answer» B. Invoice |
699. |
Under______ system branch profit or loss is ascertained by preparing branch accounts |
A. | Debtors |
B. | Stock and debtors |
C. | Wholesale |
D. | Final accounts |
Answer» A. Debtors |
700. |
Goods sent to branch account is closed by transferring the balance to_____ account |
A. | Branch debtors |
B. | Branch stock |
C. | Trading account |
D. | Branch expenses |
Answer» C. Trading account |
Done Reading?