McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
| 1. |
All the transactions measurable in the terms of money are recorded in accounts is according to |
| A. | business entity concept |
| B. | going concern concept |
| C. | money measurement concept |
| D. | accounting period concept |
| Answer» C. money measurement concept | |
| 2. |
Dividing the expenditure into capital and revenue is according to |
| A. | business entity concept |
| B. | going concern concept |
| C. | money measurement concept |
| D. | accounting period concept |
| Answer» D. accounting period concept | |
| 3. |
While putting the value or price of an entity in financial records the lowest price is recorded not the current price or current market value. This is known as |
| A. | business entity concept |
| B. | conservatism |
| C. | cost concept |
| D. | money measurement concept |
| Answer» B. conservatism | |
| 4. |
Co-operative societies is an example of |
| A. | personal account |
| B. | real account |
| C. | nominal account |
| D. | representative personal account |
| Answer» A. personal account | |
| 5. |
Outstanding salary account is a |
| A. | natural personal account |
| B. | artificial personal account |
| C. | representative personal account |
| D. | real account |
| Answer» C. representative personal account | |
| 6. |
Interest earned is a |
| A. | personal account |
| B. | real account |
| C. | nominal account |
| D. | representative personal account |
| Answer» C. nominal account | |
| 7. |
Commission paid is a |
| A. | personal account |
| B. | real account |
| C. | nominal account |
| D. | representative personal account |
| Answer» C. nominal account | |
| 8. |
Trading account is a |
| A. | personal account |
| B. | real account |
| C. | nominal account |
| D. | representative personal account |
| Answer» C. nominal account | |
| 9. |
Profit and loss account is a |
| A. | personal account |
| B. | real account |
| C. | nominal account |
| D. | representative personal account |
| Answer» C. nominal account | |
| 10. |
All revenue incomes are credited to |
| A. | manufacturing account |
| B. | trading account |
| C. | profit and loss account |
| D. | balance sheet |
| Answer» C. profit and loss account | |
| 11. |
In profit and loss account, if credit is more than the debit, the difference is |
| A. | net profit |
| B. | net loss |
| C. | gross profit |
| D. | gross loss |
| Answer» A. net profit | |
| 12. |
The process of recording financial data upto trial balance is |
| A. | book keeping |
| B. | classifying |
| C. | summarising |
| D. | analyzing |
| Answer» A. book keeping | |
| 13. |
In income measurement & recognisation of assets & liabilities which of the following concepts goes together? |
| A. | periodicity, accural, matching |
| B. | cost, accural, matching |
| C. | going concern, cost, realization |
| D. | going concern, periodicity, reliability |
| Answer» A. periodicity, accural, matching | |
| 14. |
Interpretation means |
| A. | explanation of meaning and significance of the data in financial statements. |
| B. | concerned with preparation and presentation of classified data |
| C. | systematic analysis of recorded data |
| D. | methodical classification of data given in financial statements. |
| Answer» A. explanation of meaning and significance of the data in financial statements. | |
| 15. |
Which of the following is wrong? |
| A. | all real and personal accounts are transferred to balance sheet |
| B. | nominal accounts are transferred to p & l account |
| C. | each account is opened separately in ledger |
| D. | rent is a personal account, outstanding rent is nominal account |
| Answer» D. rent is a personal account, outstanding rent is nominal account | |
| 16. |
_______ is root cause for financial accounting |
| A. | stewardship accounting |
| B. | social accounting |
| C. | management accounting |
| D. | human resource accounting |
| Answer» A. stewardship accounting | |
| 17. |
The proprietor of the business is treated as creditor for the capital introduced by him due to_____ concept. |
| A. | money measurement |
| B. | cost |
| C. | entity |
| D. | dual aspect |
| Answer» C. entity | |
| 18. |
Fixed assets are held by business for _____ |
| A. | converting into cash |
| B. | generating revenue |
| C. | resale |
| D. | none of the above |
| Answer» B. generating revenue | |
| 19. |
Which accounting concept specifies the practice of crediting closing stock to the trading account? |
| A. | cost |
| B. | realisation |
| C. | going concern |
| D. | matching |
| Answer» D. matching | |
| 20. |
Amount spent to increasing the earning capacity is a ______ expenditure |
| A. | capital |
| B. | revenue |
| C. | deferred revenue |
| D. | capital loss |
| Answer» A. capital | |
| 21. |
Human resources will not appear in the balance sheet according to ______ concept. |
| A. | accrual |
| B. | going concern |
| C. | money measurement concept |
| D. | none |
| Answer» C. money measurement concept | |
| 22. |
Provision for discount on debtors is calculated on the amount of debtors. |
| A. | before deducting provision for doubtful debts. |
| B. | after deducting provision for doubtful debts. |
| C. | before deducting actual debts and provision for doubtful debts. |
| D. | after adding actual bad and doubtful debts. |
| Answer» B. after deducting provision for doubtful debts. | |
| 23. |
Which of the following is not a Real Account? |
| A. | cash a/c |
| B. | investments a/c |
| C. | outstanding rent a/c |
| D. | purchases a/c |
| Answer» C. outstanding rent a/c | |
| 24. |
Value of goods withdrawn by the proprietor for his personal use should be credited to ____ |
| A. | capital a/c |
| B. | sales a/c |
| C. | drawings a/c |
| D. | purchases a/c |
| Answer» D. purchases a/c | |
| 25. |
Which of the following is incorrect? |
| A. | good will – intangible asset |
| B. | sundry debtors – current asset |
| C. | loose tools - tangible fixed asset |
| D. | outstanding expenses – current asset |
| Answer» D. outstanding expenses – current asset | |
| 26. |
M/s Stationery Mart will debit the purchase of stationery to _______ |
| A. | purchases a/c |
| B. | general expenses a/c |
| C. | stationery a/c |
| D. | none |
| Answer» A. purchases a/c | |
| 27. |
Small items like, pencils, pens, files, etc. are written off within a year according to ___ concept. |
| A. | materiality |
| B. | consistency |
| C. | conservatism |
| D. | realisation |
| Answer» A. materiality | |
| 28. |
Business enterprise is separate from its owner according to _____ concept. |
| A. | money measurement concept |
| B. | matching concept |
| C. | entity concept |
| D. | dual aspect concept |
| Answer» C. entity concept | |
| 29. |
The policy of anticipate no profit and provide for all possible losses arise due to the concept of _____ |
| A. | consistency |
| B. | disclosure |
| C. | conservatism |
| D. | matching |
| Answer» C. conservatism | |
| 30. |
According to which concept, the proprietor pays interest on drawings |
| A. | accrual concept |
| B. | conservatism concept |
| C. | entity concept |
| D. | dual aspect concept |
| Answer» C. entity concept | |
| 31. |
Cost concept basically recognises ____ |
| A. | fair market value |
| B. | historical cost |
| C. | realisable value |
| D. | replacement cost |
| Answer» B. historical cost | |
| 32. |
If the Market value of closing Inventory is less than its cost price, inventory will he shown at ____ |
| A. | marketable value |
| B. | fair market value |
| C. | both |
| D. | none |
| Answer» A. marketable value | |
| 33. |
The Market price of good declined than the cost price. Then the concept that plays a key role is ____ |
| A. | materiality |
| B. | going concern concept |
| C. | realization |
| D. | consistency |
| Answer» C. realization | |
| 34. |
Fixed assets are double the current assets and half the capital. The current assets are Rs.3,00,000 and investments are Rs.4,00,000. Then the current liabilities recorded in balance sheet will be |
| A. | 2,00,000 |
| B. | 1,00,000 |
| C. | 3,00,000 |
| D. | 4,00,000 |
| Answer» B. 1,00,000 | |
| 35. |
Which of the following provide frame work and accounting policies so that the financial statements of different enterprises become comparable. |
| A. | business standards |
| B. | accounting standards |
| C. | market standards |
| D. | none |
| Answer» B. accounting standards | |
| 36. |
Which of the following factor is not considered while selecting accounting policies? |
| A. | prudence |
| B. | substance over form |
| C. | accountancy |
| D. | materiality |
| Answer» C. accountancy | |
| 37. |
Debit the receiver & credit the giver is _____ account |
| A. | personal |
| B. | real |
| C. | nominal |
| D. | all the above |
| Answer» A. personal | |
| 38. |
Cash a/c is a ______ |
| A. | real a/c |
| B. | nominal |
| C. | personal |
| D. | none |
| Answer» A. real a/c | |
| 39. |
As per accrual concept, which of the followings is not true |
| A. | revenue – expenditure = profit |
| B. | revenue – profit = expenditure |
| C. | sales + gross profit = revenue |
| D. | revenue = profit + expenditure |
| Answer» C. sales + gross profit = revenue | |
| 40. |
Mr. X sold goods to Mr. Y ask Mr. X to keep the goods with him for some time |
| A. | symbolic delivery |
| B. | actual delivery |
| C. | constructive delivery |
| D. | none of these |
| Answer» A. symbolic delivery | |
| 41. |
If nothing is written about the accounting assumption to be followed it is presumed that |
| A. | they have been followed |
| B. | they have not been followed |
| C. | they are followed to some extent |
| D. | none of these |
| Answer» B. they have not been followed | |
| 42. |
Capital A/c is a _______ A/c. |
| A. | personal |
| B. | real |
| C. | nominal |
| D. | none |
| Answer» A. personal | |
| 43. |
Cash A/c is a ________ A/c. |
| A. | personal |
| B. | real |
| C. | nominal |
| D. | none |
| Answer» B. real | |
| 44. |
The principle “Debit the receiver and credit the giver” is related to_____ |
| A. | personal a/c |
| B. | real a/c |
| C. | nominal a/c |
| D. | none |
| Answer» A. personal a/c | |
| 45. |
Which of the following is a Real A/c? |
| A. | building a/c |
| B. | capital a/c |
| C. | shyam a/c |
| D. | rent a/c |
| Answer» A. building a/c | |
| 46. |
Valuation of stock in accounting follows the principle of cost price or ____ whichever is lower. |
| A. | market price |
| B. | average price |
| C. | net realizable value |
| D. | none of these. |
| Answer» C. net realizable value | |
| 47. |
Which of the following is not a nominal Account? |
| A. | outstanding salaries account |
| B. | salaries account |
| C. | interest paid |
| D. | commission received |
| Answer» A. outstanding salaries account | |
| 48. |
For every debit there will be an equal credit according to |
| A. | matching concept |
| B. | cost concept |
| C. | money measurement concept |
| D. | dual aspect concept |
| Answer» D. dual aspect concept | |
| 49. |
Historical cost concept requires the valuation of an asset at |
| A. | original cost |
| B. | replacement value |
| C. | net realizable value |
| D. | market value |
| Answer» A. original cost | |
| 50. |
The comparison of financial statement of one year with that of another is possible only when _______ concept is followed |
| A. | going concern |
| B. | accrual |
| C. | consistency |
| D. | materiality |
| Answer» C. consistency | |
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