McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 101. |
Interest earned, Miscellaneous income, Commission, Profit in non-credit businessare shown on the credit side of ……… |
| A. | profit and loss account |
| B. | trading account |
| C. | manufacturing account |
| D. | balance sheet |
| Answer» A. profit and loss account | |
| 102. |
………………are the expenses paid on account of rent, rates and taxes, insurance premiums, subscriptions membership fee etc. for periods that extent beyond the date of the balance sheet. |
| A. | prepaid expenses |
| B. | interest receivable |
| C. | deferred revenue expenditure |
| D. | outstanding expenses |
| Answer» A. prepaid expenses | |
| 103. |
Expenses incurred but not paid, are called…………. |
| A. | prepaid expenses |
| B. | interest receivable |
| C. | deferred revenue expenditure |
| D. | outstanding expenses |
| Answer» D. outstanding expenses | |
| 104. |
Interest accrued up to the date of balance sheet are known as ……………….. |
| A. | prepaid expenses |
| B. | interest receivable |
| C. | deferred revenue expenditure |
| D. | outstanding expenses |
| Answer» B. interest receivable | |
| 105. |
When heavy expenditure is incurred and the benefits of which extend to periods beyond the date of the balance sheet, such expenditure should be equitably spread over the period during which the benefits of such expenditure would be available and are known as …………………. |
| A. | prepaid expenses |
| B. | interest receivable |
| C. | deferred revenue expenditure |
| D. | outstanding expenses |
| Answer» C. deferred revenue expenditure | |
| 106. |
In the case of non trading societies such as Co-operative Education Societies, hospital, societies and similar other types of societies, which do not undertake trading activities, it is common to term the “Profit and Loss Account” as………….. |
| A. | revenue account |
| B. | income and expenditure account |
| C. | profit statement |
| D. | both (a) and (b) |
| Answer» D. both (a) and (b) | |
| 107. |
Realisable Value of an asset is…………… |
| A. | the estimated amount that the assets would fetch, if sold or disposed off. |
| B. | the amount that is estimated to replace the asset |
| C. | the amount that an asset costs, when purchased or acquired, less the provisions made for depreciation since its acquisition |
| D. | all of the above |
| Answer» A. the estimated amount that the assets would fetch, if sold or disposed off. | |
| 108. |
The written down value or going concern value of an asset is………. |
| A. | the estimated amount that the assets would fetch, if sold or disposed off. |
| B. | the amount that is estimated to replace the asset |
| C. | the amount that an asset costs, when purchased or acquired, less the provisions made for depreciation since its acquisition |
| D. | all of the above |
| Answer» C. the amount that an asset costs, when purchased or acquired, less the provisions made for depreciation since its acquisition | |
| 109. |
The replacement value of an asset is…………… |
| A. | the estimated amount that the assets would fetch, if sold or disposed off. |
| B. | the amount that is estimated to replace the asset |
| C. | the amount that an asset costs, when purchased or acquired, less the provisions made for depreciation since its acquisition |
| D. | all of the above |
| Answer» B. the amount that is estimated to replace the asset | |
| 110. |
Interest accrued on investment and loans, Stock in trade in case of trading concerns are known as ……………assets. |
| A. | current |
| B. | wasting |
| C. | floating |
| D. | both (a) and (c) |
| Answer» D. both (a) and (c) | |
| 111. |
……………..assets are those of a fixed nature and are gradually exhausted and used up in the course of working, such as a mine or quarry. |
| A. | current |
| B. | wasting |
| C. | floating |
| D. | both (a) and (c) |
| Answer» B. wasting | |
| 112. |
……………..will be acquired only by co-operatives which undertake publication of books. |
| A. | copy rights |
| B. | trade marks |
| C. | patents |
| D. | good will |
| Answer» A. copy rights | |
| 113. |
Registered debentures, stocks and shares, Government Securities, Inscribed stocks and Bearer bonds and share warrants are……… |
| A. | current assets |
| B. | floating assets |
| C. | investments |
| D. | fixed assets |
| Answer» C. investments | |
| 114. |
Valuation of stock in trade is at ………………………. |
| A. | cost |
| B. | market price |
| C. | cost or market price |
| D. | cost or market price whichever is lower |
| Answer» D. cost or market price whichever is lower | |
| 115. |
………………arises due to inefficiency, negligence, mischief or bad luck etc. |
| A. | normal loss |
| B. | abnormal loss |
| C. | loss |
| D. | cost |
| Answer» B. abnormal loss | |
| 116. |
In manufacturing and processing societies by-products may be valued at their …………………….. |
| A. | current ruling prices |
| B. | cost |
| C. | predetermined prices |
| D. | average price |
| Answer» A. current ruling prices | |
| 117. |
In farming societies producing crops with an annual cycle the basis of valuation of by products may be ………………… |
| A. | the selling price |
| B. | cost |
| C. | predetermined prices |
| D. | average prices |
| Answer» A. the selling price | |
| 118. |
……………are certain assets which represent capital expenditure which may not have resulted in identifiable profit earning assets and which still remain to be written off. |
| A. | fixed assets |
| B. | intangible assets |
| C. | fictitious assets |
| D. | floating assets |
| Answer» C. fictitious assets | |
| 119. |
The word ‘Auditor’ is derived from the Latin word …………..meaning to hear. |
| A. | audire |
| B. | audio |
| C. | perceive |
| D. | to listen |
| Answer» A. audire | |
| 120. |
The main object of audit today is to ………. |
| A. | find out whether the accounts of a particular concern exhibits a true and fair view of the financial state of affairs. |
| B. | to detect errors, fraud etc |
| C. | both (a) and (b) |
| D. | none of the above |
| Answer» A. find out whether the accounts of a particular concern exhibits a true and fair view of the financial state of affairs. | |
| 121. |
………………… is a written record of queries made, replies furnished there against, correspondence entered into, observations made at the time of checking etc. |
| A. | audit note book |
| B. | working papers |
| C. | audit program |
| D. | both (a) and (b) |
| Answer» A. audit note book | |
| 122. |
are lists of audit procedures to be performed by audit staff in order to obtain sufficient appropriate evidence. |
| A. | audit program |
| B. | working papers |
| C. | audit note book |
| D. | both (a) and (b) |
| Answer» A. audit program | |
| 123. |
…………………………. is a detailed plan of the auditing work to be performed, specifying the item in the financial statements and allocating tentative time required. |
| A. | audit programme |
| B. | working papers |
| C. | audit note book |
| D. | both (a) and (b) |
| Answer» A. audit programme | |
| 124. |
………………………….provides a guide in arranging and distributing the work and in checking against the possibility of omissions. |
| A. | audit programme |
| B. | working papers |
| C. | audit note book |
| D. | both (a) and (b) |
| Answer» A. audit programme | |
| 125. |
…………….. are those papers which contain essential facts about the accounts so that the auditors may not have again to go over the accounts. |
| A. | working papers |
| B. | audit note book |
| C. | audit programme |
| D. | both (a) and (b) |
| Answer» A. working papers | |
| 126. |
A ………….. is documentary evidence in support of a transaction in the Books of account |
| A. | bill |
| B. | voucher |
| C. | file |
| D. | ledger |
| Answer» B. voucher | |
| 127. |
The act of establishing the accuracy and authenticity of entries in the account books is called ………… |
| A. | checking |
| B. | vouching |
| C. | balancing |
| Answer» B. vouching | |
| 128. |
The Society which requires no help from official and non-official staff for its working (excepting annual audit) comes under…………….. |
| A. | ‘b’ class |
| B. | ‘a’ class |
| C. | ‘c’ class |
| D. | ‘d’ class |
| Answer» B. ‘a’ class | |
| 129. |
An…………………………… Society does not want any supervision from the Union or Central Banks. |
| A. | ‘b’ class |
| B. | ‘a’ class |
| C. | ‘c’ class |
| D. | ‘d’ class |
| Answer» B. ‘a’ class | |
| 130. |
Societies the overdues of which exceed 40% and which are moribund are to be classified as ……………….. |
| A. | a |
| B. | b |
| C. | c |
| D. | d |
| Answer» D. d | |
| 131. |
The overdues in a……………… Class Society should not be above 25%. |
| A. | a |
| B. | b |
| C. | c |
| D. | d |
| Answer» B. b | |
| 132. |
The overdues in a ‘B’ Class Society should not be above…………. |
| A. | 10% |
| B. | 30% |
| C. | 25% |
| D. | 50% |
| Answer» C. 25% | |
| 133. |
In ……………………….. Central Banks, the arrears under principal should not exceed 20% of demand and arrears under interest should not exceed 5% of the demand. |
| A. | ‘b’ class |
| B. | ‘a’ class |
| C. | ‘c’ class |
| D. | ‘d’ class |
| Answer» B. ‘a’ class | |
| 134. |
In ………………………. Central Banks, the arrears under principal may exceed 20% but should not exceed 40% of the demand. There may be interest overdues but it should not exceed 10% of the demand. |
| A. | ‘b’ class |
| B. | ‘a’ class |
| C. | ‘c’ class |
| D. | ‘d’ class |
| Answer» A. ‘b’ class | |
| 135. |
In ………………………………..Central Banks, the overdues under principal exceed 60% of the demand and under interest exceed 15% of the demand. |
| A. | ‘b’ class |
| B. | ‘a’ class |
| C. | ‘c’ class |
| D. | ‘d’ class |
| Answer» D. ‘d’ class | |
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