McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
| 51. |
Profit and loss is calculated at the stage of |
| A. | recording |
| B. | posting |
| C. | classifying |
| D. | summarising |
| Answer» D. summarising | |
| 52. |
Which of the following is not the main objective of accounting? |
| A. | systematic recording of transactions |
| B. | ascertaining profit or loss |
| C. | ascertainment of financial position |
| D. | solving tax disputes with tax authorities |
| Answer» D. solving tax disputes with tax authorities | |
| 53. |
The rule debit all expenses and losses and credit all income and gains relates to |
| A. | personal account |
| B. | real account |
| C. | nominal accounts |
| D. | all |
| Answer» C. nominal accounts | |
| 54. |
Matching concept means |
| A. | assets = capital + liabilities |
| B. | transactions recorded at accrual concept |
| C. | anticipate no profit but recognize all losses |
| D. | expenses should be matched with the revenue of the period. branch accounts |
| Answer» D. expenses should be matched with the revenue of the period. branch accounts | |
| 55. |
When Branch pays expenses for H.O. the following account is debited in the books of the branch _______ |
| A. | expenses is debited |
| B. | h.o. a/c is debited |
| C. | branch is debited |
| D. | none |
| Answer» B. h.o. a/c is debited | |
| 56. |
Under the stock and debtor system, Branch A/c is treated as ______ |
| A. | joint a/c |
| B. | nominal a/c |
| C. | personal a/c |
| D. | real a/c |
| Answer» D. real a/c | |
| 57. |
Goods are sent to branch at cost plus 20%. If closing stock of the branch is Rs 60,000 at invoice price, Rs ______ will be credited to stock reserve a/c. |
| A. | rs 10000 |
| B. | rs 12000 |
| C. | rs 6000 |
| D. | rs 12600 |
| Answer» A. rs 10000 | |
| 58. |
HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profit on cost comes to ______ |
| A. | 15% |
| B. | 25% |
| C. | 33.33% |
| D. | 20% |
| Answer» B. 25% | |
| 59. |
HO sends goods to branch at invoice price after adding 25% on cost price, so profit would be ___ % of invoice price |
| A. | 33.33% |
| B. | 40% |
| C. | 20% |
| D. | 25% |
| Answer» C. 20% | |
| 60. |
For finding the amount of sundry expenses paid by the branch, the following a/c should be prepared. |
| A. | computer a/c |
| B. | creditors |
| C. | petty cash a/c |
| D. | debtors |
| Answer» C. petty cash a/c | |
| 61. |
If the opening balance of petty cash is Rs 1000, closing balance is Rs 500 and the petty cash received from HO is Rs 700, then what will be the amount of sundry expenses _____ |
| A. | rs 1200 |
| B. | rs 800 |
| C. | rs 700 |
| D. | rs 500 |
| Answer» A. rs 1200 | |
| 62. |
H.O. sent Rs 5000 as petty cash to branch during the year. Opening and closing balances of petty cash was Rs 1400 and Rs 400 respectively. Then petty expenses of the branch during the year will be ______ |
| A. | rs 5000 |
| B. | rs 6400 |
| C. | rs 4600 |
| D. | rs 6000 |
| Answer» D. rs 6000 | |
| 63. |
Which of the following branches, taking into consideration the scope of authority and responsibility, prepares its own independent final accounts? |
| A. | independent branch |
| B. | foreign branch |
| C. | dependent branch |
| D. | independent and foreign branch both |
| Answer» A. independent branch | |
| 64. |
Opening balance of debtors a/c is Rs 1,40,000. Credit sales is Rs 10,74,000 and closing balance of Debtors a/c is Rs 1,90,000. What is the amount of cash collection from the debtors? |
| A. | rs 10,24,000 |
| B. | rs 8,84,000 |
| C. | rs 11, 52,000 |
| D. | rs 8,42,000 |
| Answer» A. rs 10,24,000 | |
| 65. |
Goods in transit are shown in the balance sheet at ______ |
| A. | head office |
| B. | branch |
| C. | both |
| D. | none of above |
| Answer» A. head office | |
| 66. |
H.O. has sent goods on invoice price worth Rs 2,40,000 which are 25% above cost price. What is the loading element? |
| A. | rs 60000 |
| B. | rs 240000 |
| C. | rs 48000 |
| D. | rs 160000 |
| Answer» C. rs 48000 | |
| 67. |
The adjusting entry for difference between the invoice price and cost price of goods are shown in ________ |
| A. | balance sheet |
| B. | p & l a/c |
| C. | branch adjustment a/c |
| D. | none of above |
| Answer» C. branch adjustment a/c | |
| 68. |
Stock and debtors system is generally used when goods are sent to the branch at _____ |
| A. | cost price |
| B. | invoice price |
| C. | both |
| D. | none |
| Answer» B. invoice price | |
| 69. |
H.O. sent goods to branch at invoice price 50% plus on original price. How many percentage of profit will be on Invoice price? |
| A. | 20% |
| B. | 25% |
| C. | 33.33% |
| D. | 16.67% |
| Answer» C. 33.33% | |
| 70. |
Goods sent by HO but not received by branch before the end of the year, by debiting it to goods in transit, which account should be credited? |
| A. | cash a/c |
| B. | h.o. a/c |
| C. | trading a/c |
| D. | branch a/c |
| Answer» D. branch a/c | |
| 71. |
If the opening balance of debtors is Rs 16,000 and closing balance is Rs 80,000, cash received from debtors is Rs 35,000 and bad debts is Rs 1,000, then what will be the amount of credit sales? |
| A. | rs 95000 |
| B. | rs 105000 |
| C. | rs 100000 |
| D. | rs 110000 |
| Answer» C. rs 100000 | |
| 72. |
The system of keeping accounts generally adopted by small size branches are: |
| A. | debtors system |
| B. | stock & debtors system |
| C. | wholesale branch system |
| D. | final account system |
| Answer» A. debtors system | |
| 73. |
Goods are supplied by the head office to dependent branches are at: |
| A. | cost price |
| B. | invoice price |
| C. | market price |
| D. | cost or invoice price |
| Answer» D. cost or invoice price | |
| 74. |
Under debtors system which account is prepared by head office to calculate profit or loss of each branch: |
| A. | capital account |
| B. | debtors account |
| C. | branch account |
| D. | branch adjustment account |
| Answer» C. branch account | |
| 75. |
Under debtors system depreciation on fixed asset is ________ |
| A. | credited to branch a/c |
| B. | debited to branch a/c |
| C. | not shown in branch a/c |
| D. | shown in debtors a/c |
| Answer» C. not shown in branch a/c | |
| 76. |
Branch Trading &Profit & Loss A/c is only a _________ account not forming part of the full accounting system. |
| A. | single |
| B. | memorandum |
| C. | capital |
| D. | double |
| Answer» B. memorandum | |
| 77. |
In final account system, Branch Trading and Profit & Loss A/c is prepared at ________ |
| A. | invoice price |
| B. | cost price |
| C. | cost & invoice price |
| D. | market price |
| Answer» C. cost & invoice price | |
| 78. |
Under Final A/c system, the profit or loss made by the branch is determined by preparing |
| A. | branch stock a/c |
| B. | branch debtors a/c |
| C. | branch adjustment a/c |
| D. | branch trading & profit &loss a/c |
| Answer» D. branch trading & profit &loss a/c | |
| 79. |
The Branch Account prepared under Final Account System is the nature of: |
| A. | nominal account |
| B. | real account |
| C. | personal account |
| D. | general account |
| Answer» A. nominal account | |
| 80. |
Dependent branch makes: |
| A. | cash sales only |
| B. | credit sales only |
| C. | cash & credit sales |
| D. | instalment sales |
| Answer» C. cash & credit sales | |
| 81. |
All branch expenses such as rent, salary are paid by H.O in case of: |
| A. | independent branch |
| B. | local branch |
| C. | dependent branch |
| D. | foreign branch |
| Answer» C. dependent branch | |
| 82. |
Branch Trading & Profit & Loss A/c is prepared to incorporate all _____ |
| A. | revenue items |
| B. | capital items |
| C. | asset items |
| D. | past items |
| Answer» A. revenue items | |
| 83. |
The difference between goods sent by H.O. and received by branch is known as _______ |
| A. | goods in transit |
| B. | goods in warehouse |
| C. | goods in production |
| D. | goods in godown |
| Answer» A. goods in transit | |
| 84. |
The stock reserve for unrealised profit will be ________ to the H.O profit & Loss A/C |
| A. | debited |
| B. | credited |
| C. | first credited then debited |
| D. | not shown |
| Answer» D. not shown | |
| 85. |
____________ account is prepared to adjust the loads included in the value of opening stock and closing stock. |
| A. | branch stock |
| B. | branch adjustment |
| C. | stock reserve |
| D. | branch p&l |
| Answer» B. branch adjustment | |
| 86. |
____________ account shows the shortage or surplus of stock. |
| A. | branch adjustment |
| B. | branch stock |
| C. | goods sent to branch |
| D. | branch p&l |
| Answer» B. branch stock | |
| 87. |
The profit included in surplus or shortage of stock is transferred to ______ account |
| A. | branch stock |
| B. | branch expenses |
| C. | branch adjustment |
| D. | branch p&l |
| Answer» C. branch adjustment | |
| 88. |
The balance of branch adjustment account is transferred to _________ account |
| A. | branch stock |
| B. | branch p&l |
| C. | branch debtors |
| D. | branch expenses |
| Answer» B. branch p&l | |
| 89. |
An ordinary partnership business can have: |
| A. | not more than 50 partners |
| B. | not more than 20 partners. |
| C. | any number of partners. |
| D. | any number than 2 partners. |
| Answer» B. not more than 20 partners. | |
| 90. |
In the absence of an agreement profit and loss are divided by partners in the ratio of: |
| A. | capital |
| B. | equally |
| C. | time devoted by each partners |
| D. | none of these. |
| Answer» B. equally | |
| 91. |
In the absence of an agreement, Interest on loan advanced by the partner to the firm is allowed at the rate of: |
| A. | 6% |
| B. | 5% |
| C. | 12% |
| D. | 9% |
| Answer» A. 6% | |
| 92. |
Current accounts of the partners should be opened when the capitals are: |
| A. | fluctuating |
| B. | fixed |
| C. | either fixed or fluctuating |
| D. | none of these |
| Answer» B. fixed | |
| 93. |
Investment in partnership is made by introducing: |
| A. | cash |
| B. | none – cash assets |
| C. | cash or non – cash assets |
| D. | none of these. |
| Answer» C. cash or non – cash assets | |
| 94. |
Partnership is formed by the partners by: |
| A. | written agreement |
| B. | oral agreement |
| C. | written or oral |
| D. | none of these |
| Answer» C. written or oral | |
| 95. |
Any partner who investments in the business but does not take active part in the business is: |
| A. | secret partner |
| B. | sleeping partner |
| C. | active partner |
| D. | nominal partner |
| Answer» B. sleeping partner | |
| 96. |
The written agreement of partnership is called: |
| A. | partnership deed |
| B. | articles of association |
| C. | memorandum of association |
| D. | certificate of incorporation |
| Answer» A. partnership deed | |
| 97. |
Under fixed capital methods, profit will be credited to: |
| A. | capital account |
| B. | drawings |
| C. | current a/c |
| D. | profit & loss |
| Answer» C. current a/c | |
| 98. |
The members of partnership firm are individually called as: |
| A. | director |
| B. | investor |
| C. | partner |
| D. | manager |
| Answer» C. partner | |
| 99. |
Liability of partners in a partnership business is: |
| A. | limited |
| B. | un-limited |
| C. | limited & unlimited |
| D. | none of these |
| Answer» B. un-limited | |
| 100. |
Capital of the partners are maintained by: |
| A. | fixed capital method |
| B. | fluctuating capital methods |
| C. | by any two above methods |
| D. | none of them. |
| Answer» C. by any two above methods | |
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