More MCQs
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
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