McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
| 151. |
At the time of dissolution all the assets of firm are transferred to the realization A/c: |
| A. | market value |
| B. | book value |
| C. | cost value |
| D. | bale value |
| Answer» B. book value | |
| 152. |
Balance of realization A/c is transferred to the capital A/c of the partners in: |
| A. | capital ratio |
| B. | profit sharing ratio |
| C. | interest ratio |
| D. | equally |
| Answer» B. profit sharing ratio | |
| 153. |
The decision is Garner Vs Murray was given in: |
| A. | 1904 |
| B. | 1905 |
| C. | 1933 |
| D. | 1804 |
| Answer» A. 1904 | |
| 154. |
When an asset is acquired on hire purchase system, the asset account is debited with _______ of the assets in the books of the hire purchaser. |
| A. | hire purchase price |
| B. | cash price |
| C. | instalment price |
| D. | none of these |
| Answer» B. cash price | |
| 155. |
If the firm stops making repayments and the goods or assets are taken away from them as a result, this is known as: |
| A. | cancellation |
| B. | forfeiture |
| C. | repossession |
| D. | annulment |
| Answer» C. repossession | |
| 156. |
On the balance sheet of a company, the value of the asset bought through hire purchase will appear as: |
| A. | cost less depreciation to date less amount owing on hire purchase less interest owing |
| B. | cost less amounts owing on hire purchase |
| C. | cost less depreciation to date less amount owing on hire purchase |
| D. | cost less depreciation to date |
| Answer» D. cost less depreciation to date | |
| 157. |
The depreciation on an asset purchased through hire purchase should be: |
| A. | should be straight line only |
| B. | based on the cost price of the asset only |
| C. | based on the total cost including interest |
| D. | no depreciation should be provide until the final payment is made |
| Answer» B. based on the cost price of the asset only | |
| 158. |
The interest charged on the hire purchase should appear in the profit and loss account in what manner? |
| A. | the total interest levied should be divided equally over the total period the for purchase agreement |
| B. | the interest charged in that period only should be included |
| C. | interest should instead be capitalised on the balance sheet |
| D. | interest should be apportioned in proportion to the repayment totals |
| Answer» B. the interest charged in that period only should be included | |
| 159. |
Ownership of goods under hire purchase agreement is transferred at the time of: |
| A. | payment of down payment |
| B. | payment of first instalment |
| C. | payment of last instalment |
| D. | none of the above |
| Answer» C. payment of last instalment | |
| 160. |
Which of the following does not give a difference between a hire purchase and a normal purchase? |
| A. | timing of payment for asset |
| B. | legal ownership of asset |
| C. | quality of asset purchased |
| D. | total cost of asset. |
| Answer» C. quality of asset purchased | |
| 161. |
The act of buying an asset without having to make full payment in the immediate future is known as: |
| A. | hire purchase |
| B. | finance lease |
| C. | operating lease |
| D. | sale and leaseback |
| Answer» A. hire purchase | |
| 162. |
The amount of interest is credited by the buyer to ________ |
| A. | hire purchase account |
| B. | hire vendor account |
| C. | interest account |
| D. | cash account |
| Answer» B. hire vendor account | |
| 163. |
The depreciation in the books of buyer is charged on _________ |
| A. | hire purchase price |
| B. | market price |
| C. | total instalment amount |
| D. | cash price |
| Answer» D. cash price | |
| 164. |
Hirer charges depreciation on: |
| A. | hire purchase price |
| B. | cash price |
| C. | lower of the two |
| D. | none of these |
| Answer» B. cash price | |
| 165. |
What is transferred to Hirer under hire purchase system: |
| A. | ownership of assets |
| B. | possession of asset |
| C. | ownership and possession of asset |
| D. | none of these |
| Answer» B. possession of asset | |
| 166. |
Hire Purchase Act is passed in the year |
| A. | 1932 |
| B. | 1956 |
| C. | 1972 |
| D. | 1872 |
| Answer» C. 1972 | |
| 167. |
The Sale of Goods Act is applicable in: |
| A. | credit purchases |
| B. | cash purchases |
| C. | cash sales |
| D. | none of these |
| Answer» A. credit purchases | |
| 168. |
Under which system, ownership is transferred on payment of final installment |
| A. | installment system |
| B. | credit system |
| C. | hire purchase system |
| D. | cash system |
| Answer» A. installment system | |
| 169. |
Under hire purchase system the buyer is called _________ |
| A. | buyer |
| B. | hirer |
| C. | hire vendor |
| D. | debtor. |
| Answer» C. hire vendor | |
| 170. |
Under hire purchase system who has the right of sell __________ |
| A. | buyer |
| B. | hirer |
| C. | hire vendor |
| D. | debtor |
| Answer» C. hire vendor | |
| 171. |
Under hire purchase system, the agreement can be _________ |
| A. | renewed |
| B. | registered |
| C. | terminated |
| D. | endorsed. |
| Answer» C. terminated | |
| 172. |
Installment system is governed by _______ |
| A. | hire purchase act |
| B. | sale of goods act |
| C. | installment act |
| D. | properties registration act |
| Answer» B. sale of goods act | |
| 173. |
Under hire purchase system, the retail price of the articles is called ________ |
| A. | mrp |
| B. | wholesale price |
| C. | retail price |
| D. | cash price |
| Answer» C. retail price | |
| 174. |
The advance amount under hire purchase system is called __________ |
| A. | cash price |
| B. | retail price |
| C. | interest |
| D. | down payment |
| Answer» D. down payment | |
| 175. |
Under hire purchase system, interest is calculated on _______ |
| A. | cash price |
| B. | hire purchase price |
| C. | mrp |
| D. | outstanding balance. |
| Answer» D. outstanding balance. | |
| 176. |
If the hire purchaser fails to make payment of any installment, it is called _______ |
| A. | default |
| B. | repossession |
| C. | sale |
| D. | purchase |
| Answer» A. default | |
| 177. |
If the hire vendor may take away all the goods on which there is default of installment it is called____________ |
| A. | repossession |
| B. | partial repossession |
| C. | complete repossession |
| D. | purchase. |
| Answer» C. complete repossession | |
| 178. |
The hire vendor takes away only a portion of the goods on which there is default of Installments it is called _________ |
| A. | repossession |
| B. | partial repossession |
| C. | complete repossession |
| D. | purchase |
| Answer» B. partial repossession | |
| 179. |
In the books of hirer, for payment of installment hire vendor account will be ________ |
| A. | debited |
| B. | credited |
| C. | rectified |
| D. | reversed |
| Answer» A. debited | |
| 180. |
In the books of hirer, for interest due at the end of the year hire vendor account will be _______ |
| A. | debited |
| B. | credited |
| C. | rectified |
| D. | reversed |
| Answer» B. credited | |
| 181. |
In the books of Hirer, the interest and depreciation account will be transferred to ______. |
| A. | trading account |
| B. | p & l account |
| C. | p & l appropriation account |
| D. | balance sheet |
| Answer» B. p & l account | |
| 182. |
Nature of hire purchase agreement is __________. |
| A. | agreement of sale |
| B. | option to transfer |
| C. | option to buy |
| D. | option to sell |
| Answer» C. option to buy | |
| 183. |
In case of Hire-Purchase the total sum payable by the hire-purchaser as per terms in order to complete the transactions is |
| A. | net cash price |
| B. | net hire-purchase charges |
| C. | hire-purchase price |
| D. | cash price instalment |
| Answer» C. hire-purchase price | |
| 184. |
Under ______ system the buyer does not get ownership of goods immediately |
| A. | installment |
| B. | hp |
| C. | installment and hp |
| D. | none of these |
| Answer» B. hp | |
| 185. |
________ means the price at which the goods can be purchased by the hirer for ready cash. |
| A. | hp price |
| B. | installment price |
| C. | cash price |
| D. | down payment |
| Answer» C. cash price | |
| 186. |
________ is the initial payment made at the time of signing the hire purchase agreement |
| A. | hp price |
| B. | installment price |
| C. | cash price |
| D. | down payment |
| Answer» D. down payment | |
| 187. |
The difference between hire purchase price and the cash price is called ______ |
| A. | hire charges |
| B. | cost of the asset |
| C. | installment price |
| D. | cash price |
| Answer» A. hire charges | |
| 188. |
In order to deal with the re possession the hire vendor operates an account called _______ |
| A. | asset account |
| B. | goods account |
| C. | goods repossessed account |
| D. | none of these |
| Answer» C. goods repossessed account | |
| 189. |
Hire Purchase price = |
| A. | cash price + down payment |
| B. | cash price + total interest |
| C. | cash price |
| D. | sum of total instalments |
| Answer» B. cash price + total interest | |
| 190. |
Cash Price = |
| A. | hire purchase price – total interest |
| B. | down payment in cash |
| C. | down payment + interest |
| D. | none of the above |
| Answer» A. hire purchase price – total interest | |
| 191. |
Which of the following statement is false: |
| A. | a company is a legal entity quite distinct from its members |
| B. | a company can buy its own share |
| C. | a shareholder is the agent of the company |
| D. | same person can agent and creditor of the company |
| Answer» C. a shareholder is the agent of the company | |
| 192. |
Which of the following are the characteristics of a company |
| A. | liability of the members is limited up to the face value of shares held by them |
| B. | it is a voluntary association of persons |
| C. | a company is a separate body can sue and be sued in its own name |
| D. | perpetual succession |
| Answer» C. a company is a separate body can sue and be sued in its own name | |
| 193. |
Share application and allotment account is a: |
| A. | personal account |
| B. | real account |
| C. | nominal account |
| D. | none of the above |
| Answer» A. personal account | |
| 194. |
Securities premium account is shown on the liabilities side of the balance sheet under the head: |
| A. | share capital |
| B. | reserves and surplus |
| C. | current liabilities |
| D. | non-current liabilities |
| Answer» B. reserves and surplus | |
| 195. |
As per section 78 of the companies act, amount collected as premium on securities cannot be utilized for: |
| A. | issuing fully paid bonus shares to the members |
| B. | purchase of fixed assets |
| C. | writing off preliminary expenses |
| D. | buy back of it’s own shares |
| Answer» B. purchase of fixed assets | |
| 196. |
The portion of the authorised capital which can be called-up only on the liquidation of the company is called |
| A. | authorised capital |
| B. | reserve capital |
| C. | issued capital |
| D. | called up capital |
| Answer» B. reserve capital | |
| 197. |
Which of the following statement is false: |
| A. | buy back must be authorised by articles of company |
| B. | a special resolution must be passed for buy back |
| C. | shares can be partly paid up |
| D. | the ratio of debt owed by the company is not more than twice the capital and its |
| Answer» C. shares can be partly paid up | |
| 198. |
If shares are bought back out of free reserves then a sum equal to nominal value of the shares so bought back is transferred to: |
| A. | capital reserve account |
| B. | capital redemption reserve account (crr) |
| C. | general reserve account |
| D. | statutory reserve account |
| Answer» B. capital redemption reserve account (crr) | |
| 199. |
Maximum buy back limit in any year is ______ of total paid up equity capital and free reserves. |
| A. | 25% |
| B. | 10% |
| C. | 20% |
| D. | no limit |
| Answer» A. 25% | |
| 200. |
Which of the following statement in false: |
| A. | bonus issue is made out of free reserves or securities premium collected in cash only |
| B. | bonus shares can be issued out revaluation profit |
| C. | no bonus issue shall be made within 12 months of any public or right issue |
| D. | company can issue bonus shares in any ratio. |
| Answer» B. bonus shares can be issued out revaluation profit | |
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