McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Cost Accounting .
| 1. |
Which of the following item is shown in the Receipt and Payment account? |
| A. | Only items of capital nature. |
| B. | Only items of revenue nature which are received during the period of accounts. |
| C. | Only items of revenue nature pertaining to the period of accounts. |
| D. | Both the items of capital and revenue nature which are received during the |
| Answer» D. Both the items of capital and revenue nature which are received during the | |
| 2. |
Any income arising from special fund will be credited to |
| A. | General fund in the Balance Sheet |
| B. | Receipt and Payment account |
| C. | Income and Expenditure account |
| D. | Special fund in the Balance sheet |
| Answer» D. Special fund in the Balance sheet | |
| 3. |
There are 100 members each p aying an annual subscription of 500. The Receipt and Payment account shows arrear subscription of 4,500, advance subscriptions 6,000 and current 44,500. How much amount to be credited in the Income and Expenditure account? |
| A. | 55,000 |
| B. | 49,000 |
| C. | 44,500 |
| D. | 50,000 |
| Answer» D. 50,000 | |
| 4. |
When opening stock 50,000; closing stock 40,000; purchases 1,90,000 profit margin is 16.67% on sales, the sales are: |
| A. | 2,40,000 |
| B. | 2,36,000 |
| C. | 2,00,000 |
| D. | 2,44,000 |
| Answer» A. 2,40,000 | |
| 5. |
Goods bought for 25,000 passed through sales day book will result in |
| A. | No effect on gross profit |
| B. | Decrease in gross profit |
| C. | Decrease in net profit |
| D. | Increase in gross profit |
| Answer» D. Increase in gross profit | |
| 6. |
Which of the following will result in disagreement of Trial Balance? |
| A. | Sales return treated as purchase. |
| B. | Purchase return treated as sales. |
| C. | Ram a/c wrongly credited instead of Sham a/c |
| D. | Under casting cash book by 1,100 |
| Answer» D. Under casting cash book by 1,100 | |
| 7. |
In a joint venture X and Y sharing p rofit and loss equally, X purchased goods costing of 40,000 and Y sold the goods for 50,000. X is entitled to get 1% commission on purchase and Y is entitled to get 5% commission on sales, the profit will be |
| A. | 7,200 |
| B. | 7,100 |
| C. | 6,800 |
| D. | 7,600 |
| Answer» B. 7,100 | |
| 8. |
What is the nature of joint venture with co-venture account? |
| A. | Nominal account |
| B. | Personal account 2 |
| C. | Real Account |
| D. | Memorandum Account |
| Answer» B. Personal account 2 | |
| 9. |
Which of the following term is applicable about consignment? |
| A. | Sale of goods |
| B. | Hypothecation of goods |
| C. | Shipment of goods |
| D. | Mortgage of goods |
| Answer» A. Sale of goods | |
| 10. |
Retirement of bill means |
| A. | sending the bill for collection |
| B. | cancellation of the bill |
| C. | endorsing the bill in favour of third party |
| D. | making payment before the due date. |
| Answer» D. making payment before the due date. | |
| 11. |
Which one of these documents is not required for bank reconciliation? |
| A. | Bank Column of cash book |
| B. | Bank pass book |
| C. | Previous year’s balance sheet |
| D. | Bank statement |
| Answer» C. Previous year’s balance sheet | |
| 12. |
In a overdraft balance as per cash book, a cheque of 1,250 deposited into bank but not recorded in cash book will be |
| A. | deducted by 1,250 |
| B. | added by 1,250 |
| C. | added by 2,500 |
| D. | deducted by 2,500 |
| Answer» A. deducted by 1,250 | |
| 13. |
Which of these errors affects only one account? |
| A. | Error of casting |
| B. | Error of posting |
| C. | Error of carry forward |
| D. | All of the above |
| Answer» D. All of the above | |
| 14. |
Which of the following error is an error of principle? |
| A. | 4,000 received from Sham credited to Shamu a/c |
| B. | 5,000 incurred on installation of new plant debited to salary a/c |
| C. | 6,000 paid for wages debited to salary a/c |
| D. | 7,000 being purchase of raw material debited to purchase a/c |
| Answer» B. 5,000 incurred on installation of new plant debited to salary a/c | |
| 15. |
In case of depreciable assets are revalued, the provision for depreciation is based on |
| A. | Market value of the assets |
| B. | Historical cost of the asset |
| C. | Written down value of the asset |
| D. | the revalued amount over the estimate of the remaining useful life of such asset. |
| Answer» D. the revalued amount over the estimate of the remaining useful life of such asset. | |
| 16. |
Trade discount is allowed at the time of sale of goods. |
| A. | is recorded in sales book |
| B. | is recorded in cash book |
| C. | is not recorded in books of accounts |
| D. | is recorded in journal |
| Answer» C. is not recorded in books of accounts | |
| 17. |
A debit note issued to a creditor for goods returned is to be recorded in the |
| A. | Purchase return book |
| B. | Journal Proper |
| C. | Purchase book |
| D. | Bill Receivable book |
| Answer» A. Purchase return book | |
| 18. |
The determination of expenses for an accounting period is based on the concept of 3 |
| A. | Consistency concept |
| B. | Periodicity concept |
| C. | Timelines concept |
| D. | Industry practice |
| Answer» B. Periodicity concept | |
| 19. |
Decrease in the amount of creditors results in |
| A. | Increase in assets |
| B. | Increase in cash |
| C. | Decrease in cash |
| D. | No change in assets |
| Answer» C. Decrease in cash | |
| 20. |
Subscription received in advance to be shown in |
| A. | Liability side of the balance sheet |
| B. | Asset side of the balance sheet |
| C. | Income and Expenditure account |
| D. | Journal |
| Answer» A. Liability side of the balance sheet | |
| 21. |
AS – 09 deals with |
| A. | Inventory Valuation |
| B. | Depreciation Accounting |
| C. | Revenue Recognition |
| D. | Cash Flow Statement |
| Answer» C. Revenue Recognition | |
| 22. |
Y-draws a trade bill of 12,000 for 6 months on X. After holding the bill for 2.5 months, Y discount the bill with bank @ 10% p.a. The amount of discount on bill is |
| A. | 100 |
| B. | 350 |
| C. | 600 |
| D. | 250 |
| Answer» B. 350 | |
| 23. |
Bills Receivable books is part of the |
| A. | Journal |
| B. | Ledger |
| C. | Profit & Loss Account |
| D. | Balance Sheet |
| Answer» A. Journal | |
| 24. |
X of Delhi send out certain goods at cost + 25% of cost. Invoice value of goods is 1,20,000. 4/5th of the goods were sold by consignee at 1,00,000. Commission @ 2% up to invoice value and 10% of any surplus above invoice. The amount of commission will be |
| A. | 1,920 |
| B. | 2,320 |
| C. | 1,820 |
| D. | 2,020 |
| Answer» B. 2,320 | |
| 25. |
If X co-venture takes away of goods under memorandum Joint Venture Method then he will debit these goods in his books to |
| A. | Sales Account |
| B. | Purchase Account |
| C. | Personal Account |
| D. | Joint Venture Account |
| Answer» C. Personal Account | |
| 26. |
At the end of the year Bad Debts Recovered Account is |
| A. | Debited to Debtors Account 4 |
| B. | Credited to Debtors Account |
| C. | Credited to Profit & Loss Account |
| D. | Debited to Profit & Loss Account |
| Answer» C. Credited to Profit & Loss Account | |
| 27. |
As regards the accounting treatment, Legacy should be |
| A. | treated as loss |
| B. | capitalized |
| C. | treated Revenue Expenses |
| D. | treated Deferred Revenue |
| Answer» B. capitalized | |
| 28. |
Sales of 6,570 is recorded in the sales book as 6,750. Such Error is known as |
| A. | Error of Principle |
| B. | Error of Omission |
| C. | Error of Commission |
| D. | Compensating Error |
| Answer» C. Error of Commission | |
| 29. |
Which of the following is correct? |
| A. | Cost of Goods Sold – Opening Stock + Purchases = Closing Stock |
| B. | Purchase + Cost of Goods Sold – Opening Stock = Closing Stock |
| C. | Cost of Goods Sold + Closing Stock – Opening Stock = Purchase |
| D. | Opening Stock + Closing Stock – Purchase = Cost of Goods sold |
| Answer» C. Cost of Goods Sold + Closing Stock – Opening Stock = Purchase | |
| 30. |
Provision for bad debt is made as per the |
| A. | Entity concept |
| B. | Conservatism concept |
| C. | Cost concept |
| D. | Going concern concept |
| Answer» B. Conservatism concept | |
| 31. |
Capital expenditures are shown in the |
| A. | Balance Sheet |
| B. | Profit & Loss a/c |
| C. | Trading a/c |
| D. | Manufacturing a/c |
| Answer» A. Balance Sheet | |
| 32. |
Import duty of raw material purchased is a |
| A. | Revenue Expenditure |
| B. | Capital Expenditure |
| C. | Deferred Revenue Expenditure |
| D. | None of the above |
| Answer» A. Revenue Expenditure | |
| 33. |
Life Insurance Corporation Account is a |
| A. | Nominal Account |
| B. | Artificial Personal Account |
| C. | Representative Personal Account |
| D. | Real Account |
| Answer» B. Artificial Personal Account | |
| 34. |
Goods taken from business for personal use by the proprietor should be credited to |
| A. | Drawing a/c |
| B. | Capital a/c |
| C. | Sales a/c |
| D. | Purchase a/c |
| Answer» D. Purchase a/c | |
| 35. |
A cash book with discount and bank column is called as |
| A. | Single Column Cash Book |
| B. | Two Column Cash Book |
| C. | Three Column Cash Book |
| D. | Petty Cash Book |
| Answer» C. Three Column Cash Book | |
| 36. |
The periodical total of Returns Inward Day Book is posted to 5 |
| A. | Debit of Sales Account |
| B. | Debit of Sales Return Account |
| C. | Credit of Sales Return Account |
| D. | Debit of Debtors Account |
| Answer» B. Debit of Sales Return Account | |
| 37. |
The process of transfer of entries from day book to ledger is called as |
| A. | Balancing |
| B. | Journal Posting |
| C. | Transaction |
| D. | Ledger Posting |
| Answer» D. Ledger Posting | |
| 38. |
The Depreciation Account is closed at the end of the year by transfer to the |
| A. | General Reserve a/c |
| B. | Profit and Loss a/c |
| C. | Provision for Depreciation a/c |
| D. | Fixed Asset a/c |
| Answer» B. Profit and Loss a/c | |
| 39. |
The original cost of the machine is 19,00,000; machine installation charges are 1,00,000; working life of the machine is 5 years and residual value is 40,000. If the depreciation is charged on Straight Line basis then 4th year’s depreciation will be: |
| A. | 3,72,000 |
| B. | 4,00,000 |
| C. | 3,92,000 |
| D. | 3,52,000 |
| Answer» C. 3,92,000 | |
| 40. |
Whenever errors are noticed in the accounting records, they should be rectified. |
| A. | at the time of preparation of Trial Balance. |
| B. | without waiting the accounting year to end. |
| C. | after the preparation of final accounts. |
| D. | in the next accounting year. |
| Answer» B. without waiting the accounting year to end. | |
| 41. |
A purchase of 49,500 from Shiva was recorded in Purchases Book as 59,400, the profit would show |
| A. | an increase of 9,900 |
| B. | a decrease of 9,900 |
| C. | an increase of 59,400 |
| D. | neither an increase nor a decrease |
| Answer» B. a decrease of 9,900 | |
| 42. |
From the following details ascertain the adjusted bank balance as per Cash Book – overdraft as per Cash Book 1,60,000; cheque received entered twice in the Cash Book 10,000; credit side of bank column cash short by 1,000; bank charges amounting to 400 entered twice: |
| A. | 1,61,000 |
| B. | 1,71,000 |
| C. | 1,70,000 |
| D. | 1,70,600 |
| Answer» D. 1,70,600 | |
| 43. |
When credit balance as per pass book is the starting point of a Bank Reconciliation Statement then bank charges are |
| A. | Subtracted |
| B. | Added |
| C. | Either (A) or (B) 6 |
| D. | None of the above |
| Answer» B. Added | |
| 44. |
At the time of dishonor of an endorsed bill, which account would be credited by the drawee? |
| A. | Bills Payable Account |
| B. | Drawer’s Account |
| C. | Bank Account |
| D. | Bills Dishonoured Account |
| Answer» B. Drawer’s Account | |
| 45. |
At the en d of the accounting year bills receivable discounted were 32,000 would be shown |
| A. | on Liabilities side of the Balance Sheet |
| B. | on Assets side of the Balance Sheet |
| C. | by way of a note with Balance Sheet |
| D. | Not appeared anywhere |
| Answer» B. on Assets side of the Balance Sheet | |
| 46. |
X sends out goods to Y, costing 3,60,000. Goods are to be sold at cost plus 25% on sales. The consignor asked consignee to pay an advance for an amount equivalent to 60% of sales value. The amount of advance will be |
| A. | 2,88,000 |
| B. | 2,16,000 |
| C. | 2,70,000 |
| D. | 3,36,000 |
| Answer» A. 2,88,000 | |
|
Explanation: The sales value of the goods is 3,60,000 / (100 - 25) = 4,80,000. The advance payment requested by the consignor is equivalent to 60% of the sales value, so the amount of the advance will be 4,80,000 x 60% = 288,000. |
|
| 47. |
X sends out certain goods to Y, costing 1,50,000 at cost plus 25% on invoice price. ¾ of the goods were sold by R at 1,76,000. Commission 5% upto invoice value a nd 10% of any surplus above invoice value. The amount of commission will be |
| A. | 10,100 |
| B. | 11,975 |
| C. | 10,568.75 |
| D. | 9,350 |
| Answer» C. 10,568.75 | |
| 48. |
A purchased goods costing 2,60,000 for joint venture with B. B sold a major part of the goods at cost plus 25% on cost, for 2,50,000. Balance of goods were taken over by B at cost less 10%. Find out profit/loss on Joint Venture. |
| A. | (Loss) 10,000 |
| B. | 55,250 |
| C. | 44,000 |
| D. | 50,000 |
| Answer» C. 44,000 | |
| 49. |
Which of the following account(s) is (are) maintained in the joint venture when separate set of books are maintained? |
| A. | Joint Bank a/c |
| B. | Joint Venture a/c |
| C. | Co-venturer a/c |
| D. | All of the above |
| Answer» C. Co-venturer a/c | |
| 50. |
At the time of preparation of financial accounts, balance of Bad Debts Recovered Account will be transferred to |
| A. | Debtor’s Personal a/c |
| B. | Profit & Loss a/c |
| C. | Bad Debts a/c |
| D. | Profit & Loss Appropriation a/c |
| Answer» D. Profit & Loss Appropriation a/c | |
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