McqMate
| 101. |
Which of the following errors affects the agreement of a trial balance? |
| A. | Mistake in balancing an account |
| B. | Omitting to record a transaction entirely in the subsidiary books 12 |
| C. | Recording of a wrong entry in the subsidiary book |
| D. | Posting an entry on the correct side but in the wrong account |
| Answer» A. Mistake in balancing an account | |
| 102. |
Difference in Bank Balance as per Pass book and Cash book may arise on account of |
| A. | Cheque issued but not presented |
| B. | Cheque issued but dishonoured |
| C. | Cheque deposited not credited by bank |
| D. | All of the above |
| Answer» D. All of the above | |
| 103. |
Which of these items are taken into consideration for preparation of adjusted cash book? |
| A. | Mistake in cash book |
| B. | Mistake in pass book |
| C. | Cheque issued but not presented for payment |
| D. | Cheque deposited but not cleared by bank |
| Answer» A. Mistake in cash book | |
| 104. |
Kasi draws a bi ll on Shyam for 5,000 and Kasi endorsed it to Ram. Ram endorese it to Rahul. The payee of the bill will be |
| A. | Kasi |
| B. | Ram |
| C. | Shyam |
| D. | Rahul |
| Answer» D. Rahul | |
| 105. |
On receipt of goods from the consignor the consignee debits which of these accounts? |
| A. | Purchase account |
| B. | Goods account |
| C. | Consignor account |
| D. | None of the above |
| Answer» D. None of the above | |
| 106. |
The Consignment Accounting is made on the following basis |
| A. | Cash basis |
| B. | Realisation basis |
| C. | Accrual basis |
| D. | None of the above |
| Answer» C. Accrual basis | |
| 107. |
Joint venture account is of the nature of |
| A. | Personal account |
| B. | Nominal account |
| C. | Real account |
| D. | Suspense account |
| Answer» B. Nominal account | |
| 108. |
If unsold goods costing 20,000 is taken over by venturer at 15,000, the joint venture account will be credited by |
| A. | 20,000 |
| B. | 15,000 |
| C. | 5,000 |
| D. | Nil |
| Answer» B. 15,000 | |
| 109. |
Closing stock appearing in the trial balance is shown in |
| A. | Trading A/c and Balance sheet |
| B. | Profit and Loss A/c |
| C. | Balance Sheet only |
| D. | Trading A/c only |
| Answer» C. Balance Sheet only | |
| 110. |
Which one of the following character is not related to Financial Accounting? |
| A. | Evaluates the financial strength of the whole business. |
| B. | Based on monetary transactions of the enterprise |
| C. | Reports are always subject to statutory audit. |
| D. | Reports are as per requirement of management. |
| Answer» D. Reports are as per requirement of management. | |
| 111. |
Which one of the following equation is correct? |
| A. | Owner’s Equity = Liability + Asset |
| B. | Owner’s Equity = Asset - Liability |
| C. | Liability = Owner’s Equity + Asset |
| D. | Asset = Owner’s Equity + Liability |
| Answer» B. Owner’s Equity = Asset - Liability | |
| 112. |
Identify the Personal Account from the following |
| A. | Salary Payable Account |
| B. | Taxes paid account |
| C. | Investment Account |
| D. | Trademark Account |
| Answer» A. Salary Payable Account | |
| 113. |
Which of the following is a transaction of contra entry? |
| A. | Sale goods to Y 12,500 |
| B. | Godown rent 7,000 paid by cheque. |
| C. | Received 12,000 in full settlement of 12,500 |
| D. | Cash deposited to bank 9,000. |
| Answer» D. Cash deposited to bank 9,000. | |
| 114. |
When Trial Balance will not tally/mismatch? |
| A. | Two errors those are compensating each other. |
| B. | A transaction recorded twice. |
| C. | Taking balance to the wrong side in the Trial balance |
| D. | If an entry is totally missed. |
| Answer» C. Taking balance to the wrong side in the Trial balance | |
| 115. |
An entry of 1,560 has been debited to a Debtor’s Personal Account at 1,650. It is an error of |
| A. | Omission |
| B. | Commission |
| C. | Principle |
| D. | Compensating |
| Answer» B. Commission | |
| 116. |
Amount set apart to meet loss due to bad debt is a |
| A. | Provision |
| B. | Appropriation |
| C. | Reserve |
| D. | Commission |
| Answer» A. Provision | |
| 117. |
Reduction in value of asset due to its continuous use is treated as |
| A. | Appreciation |
| B. | Depreciation |
| C. | Loss |
| D. | Profit |
| Answer» B. Depreciation | |
| 118. |
What happens when a bad debt is recovered? |
| A. | Current asset decreases |
| B. | Debtor’s balance decreases |
| C. | Profit increases |
| D. | Owner’s fund decreases |
| Answer» C. Profit increases | |
| 119. |
Which balance is not considered for closing entries on t he basis of trial balance for transferring to Trading and Profit & Loss Account? |
| A. | Salary and Wages |
| B. | Discount Received |
| C. | Commission Paid |
| D. | Cash in Hand |
| Answer» D. Cash in Hand | |
| 120. |
Select correct journal entry to rectify an error “An amount of 10,000, withdrawn by owner for personal use debited to Trade Expenses Account”. Debit Credit |
| A. | Drawing Account Trade Expenses a/c |
| B. | Trade Expenses a/c Drawing Account |
| C. | Drawing Account Cash Account |
| D. | Trade Expenses a/c Cash Account |
| Answer» B. Trade Expenses a/c Drawing Account | |
| 121. |
M/s. A.B. Enterprises has bank balance 8,800 as per cash book and the followings were found: (a) Three cheques deposited in bank for 5,800 but only one cheque for 2,000 was cleared. (b) Dividend collected by Bank 1,250 was wrongly entered in cash book as 1,520. What is balance as per pass book? |
| A. | 3,480 |
| B. | 4,730 |
| C. | 2,730 |
| D. | 3,750 |
| Answer» B. 4,730 | |
| 122. |
House Building advance of 2.00 lakh paid to employees. It is a |
| A. | Asset |
| B. | Revenue Expenditure |
| C. | Capital Expenditure |
| D. | Deferred Revenue Expenditure |
| Answer» A. Asset | |
| 123. |
Claims against company pending in court case. It is a |
| A. | Current Liability |
| B. | Current Asset |
| C. | Contingent Liability |
| D. | Un-secured Loan |
| Answer» C. Contingent Liability | |
| 124. |
Which one of the following is not a negotiable instrument? |
| A. | Currency Note |
| B. | Promissory Note |
| C. | Bill of Exchange |
| D. | Crossed Cheque |
| Answer» A. Currency Note | |
| 125. |
Which one of the following is not the feature of a joint venture business? |
| A. | Co-venture may or may not contribute initial capital. |
| B. | It has limited duration |
| C. | It is done for specific purpose |
| D. | Profit or loss on joint venture is shared as per their capital ratio. |
| Answer» D. Profit or loss on joint venture is shared as per their capital ratio. | |
| 126. |
Del Credere Commission in consignment business is generally payable on |
| A. | Total sales |
| B. | only on credit sales. |
| C. | other than credit sales |
| D. | % on recovery of bad debt. |
| Answer» A. Total sales | |
| 127. |
There are 250 members in the Srikrishna Clu b where annual subscription is 500. During 2016-17, subscription received 97,500 and subscription receivable is 47,500. What amount of subscription received in advance during 2016-17? |
| A. | 20,000 |
| B. | 25,000 |
| C. | 27,500 |
| D. | 50,000 |
| Answer» A. 20,000 | |
| 128. |
When goods are purchased for the joint venture, the account to be debited is |
| A. | Purchase account |
| B. | Joint Venture account |
| C. | Venture’s capital account |
| D. | either Purchase account or Joint venture account |
| Answer» D. either Purchase account or Joint venture account | |
| 129. |
The abnormal loss on consignment is credited to: |
| A. | Profit and Loss Account |
| B. | Consignee’s Account |
| C. | Consignment Account |
| D. | Insurance Company Account |
| Answer» C. Consignment Account | |
| 130. |
Fixed Assets and Current Assets are categorized as per concept of |
| A. | Separate Entity |
| B. | Going Concern |
| C. | Consistency |
| D. | Time period |
| Answer» B. Going Concern | |
| 131. |
An expenditure is in capital nature when |
| A. | the receiver of the amount is going to treat it for the purchase of fixed assets. |
| B. | it increase the quantity of fixed assets. |
| C. | it is paid as interests on loans for the business |
| D. | it maintains a fixed assets |
| Answer» A. the receiver of the amount is going to treat it for the purchase of fixed assets. | |
| 132. |
Cash book is a |
| A. | Subsidiary book |
| B. | Subsidiary book and a Ledger account |
| C. | Ledger account |
| D. | None of the above |
| Answer» B. Subsidiary book and a Ledger account | |
| 133. |
The periodical total of the Sales Return Book is posted to the |
| A. | Debit side of Sales Account |
| B. | Debit side of Sales Return Account |
| C. | Credit side of Sales Return Account |
| D. | Debit side of Debtors Account |
| Answer» B. Debit side of Sales Return Account | |
| 134. |
Goods sent on consignment account is of the nature of |
| A. | Personal Account |
| B. | Nominal Account |
| C. | Real Account |
| D. | Sales Account |
| Answer» C. Real Account | |
| 135. |
Which of the following items are shown in the income and expenditure 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. |
| Answer» C. Only items of revenue nature pertaining to the period of accounts. | |
| 136. |
Income tax of the sole trade paid is shown |
| A. | Debited to P & L Account |
| B. | Debited to Trading Account |
| C. | Debited to his Capital Account |
| D. | None of the above |
| Answer» C. Debited to his Capital Account | |
| 137. |
Narration are given at the end of |
| A. | Final Accounts |
| B. | Each Ledger Account in Trial Balance |
| C. | Each Ledger Account |
| D. | Each Journal Entry |
| Answer» D. Each Journal Entry | |
| 138. |
Life membership fees received by a club is a |
| A. | Revenue Expenditure |
| B. | Capital Expenditure |
| C. | Deferred Revenue Expenditure |
| D. | Capital Receipt |
| Answer» D. Capital Receipt | |
| 139. |
A bad debt recovered during the year will be |
| A. | Capital Expenditure |
| B. | Revenue Expenditure |
| C. | Capital Receipt |
| D. | Revenue Receipt |
| Answer» D. Revenue Receipt | |
| 140. |
Nominal Account represents |
| A. | Profit & Gain |
| B. | Loss / Expenses |
| C. | Both (A) and (B) |
| D. | None of the above |
| Answer» C. Both (A) and (B) | |
| 141. |
Prepaid rent is a |
| A. | Nominal Account |
| B. | Representative Personal Account |
| C. | Tangible Assets Account |
| D. | None of the above |
| Answer» B. Representative Personal Account | |
| 142. |
Purchases book is used to record |
| A. | All purchases of goods |
| B. | All credit purchases |
| C. | All credit purchases of goods |
| D. | All credit purchases of assets other than goods |
| Answer» C. All credit purchases of goods | |
| 143. |
The source document or voucher used for recording entries in Sales Book is |
| A. | invoice recieved |
| B. | invoice sent out |
| C. | credit notes sent out |
| D. | debit notes received |
| Answer» B. invoice sent out | |
| 144. |
Ledger contains various _______ in it. |
| A. | transactions |
| B. | entries |
| C. | accounts |
| D. | None of the above |
| Answer» C. accounts | |
| 145. |
Purchase price of Machine 8,90,000; Freight and Cartage 7,000; Installation charges 30,000; Insurance charges 20,000; Residual value is 40,000; estimated useful life 5 years. The amount of annual depreciation under straight line method will be |
| A. | 1,77,400 |
| B. | 1,81,400 |
| C. | 1,97,400 |
| D. | 1,77,900 |
| Answer» A. 1,77,400 | |
| 146. |
The value of an asset after deducting depreciation from the historical cost is known as |
| A. | Fair value |
| B. | Market value |
| C. | Net realizable value |
| D. | Book value |
| Answer» D. Book value | |
| 147. |
Goods worth 272 returned by Lala passed through the books as 722. In the rectification entry |
| A. | Lala will be debited by 450 |
| B. | Lala will be debited by 272 |
| C. | Lala will be credited by 722 |
| D. | Lala will be credited by 272 |
| Answer» A. Lala will be debited by 450 | |
| 148. |
When preparing a bank reconciliation statement, if you start with debit balance as per cash book cheques sent to bank but not collected should be |
| A. | Added |
| B. | Deducted |
| C. | Not required to be adjusted |
| D. | None of the above |
| Answer» B. Deducted | |
| 149. |
Payment of Bills of Exchange is received |
| A. | by drawer |
| B. | by holder in due course of due date |
| C. | by endorsee |
| D. | by bank |
| Answer» B. by holder in due course of due date | |
| 150. |
Which of these is/are recurring (indirect) expenses? |
| A. | Transit Insurance and Freight |
| B. | Octroi |
| C. | Loading and Unloading |
| D. | Godown Rent and Insurance |
| Answer» D. Godown Rent and Insurance | |
| 151. |
Goods of the invoice value of 2,40,000 sent out to consignee at 20% profit on cost, the loading amount will be |
| A. | 40,000 |
| B. | 48,000 |
| C. | 50,000 |
| D. | None of the above |
| Answer» A. 40,000 | |
| 152. |
Memorandum joint venture account is |
| A. | Personal Account |
| B. | Real Account |
| C. | Nominal Account |
| D. | None of the above |
| Answer» C. Nominal Account | |
| 153. |
The balance of the Petty Cash is a / an |
| A. | expense |
| B. | income |
| C. | asset |
| D. | liability |
| Answer» C. asset | |
| 154. |
Endowment fund receipt is treated as |
| A. | Capital Receipt |
| B. | Revenue Receipt |
| C. | Loss |
| D. | Expenses |
| Answer» A. Capital Receipt | |
| 155. |
Purchase book records: |
| A. | All cash purchases |
| B. | All credit purchases |
| C. | Credit purchase of goods in trade |
| D. | None of the above |
| Answer» C. Credit purchase of goods in trade | |
| 156. |
A bank reconciliation statement is prepared to know the causes for the differences between: |
| A. | The balances as per cash column of cash book and the pass book |
| B. | The balances as per bank column of cash book and the pass book |
| C. | The balances as per bank column of cash book and cash column of cash book |
| D. | None of the above |
| Answer» B. The balances as per bank column of cash book and the pass book | |
| 157. |
Which of the following is of capital nature: |
| A. | Purchase of goods |
| B. | Cost of repair |
| C. | Wages paid for installation of machinery |
| D. | Ret of factory |
| Answer» C. Wages paid for installation of machinery | |
| 158. |
Which account is the odd one: |
| A. | Furniture |
| B. | Materiality |
| C. | Matching |
| D. | Periodicity |
| Answer» A. Furniture | |
| 159. |
Which financial statement represents the accounting equation “assets = liabilities + owners’ equity” |
| A. | Trading account |
| B. | Profit &loss account |
| C. | Balance sheet |
| D. | Statement of cash flows |
| Answer» C. Balance sheet | |
| 160. |
“Business unit separate and distinct from the owner of it ”,is based on: |
| A. | Money measurement |
| B. | Going concern concept |
| C. | Business entity concept |
| D. | Dual aspect concept |
| Answer» C. Business entity concept | |
| 161. |
If two or more transactions of the same nature are journalize together having either the debit or credit account common is known as: |
| A. | Compound journal entry |
| B. | Separate journal entry |
| C. | Posting |
| D. | Journalizing |
| Answer» A. Compound journal entry | |
| 162. |
A ………………. Is sent to a customer when he returns the goods |
| A. | Debit note |
| B. | Credit note |
| C. | Proforma invoice |
| D. | Bill |
| Answer» B. Credit note | |
| 163. |
Writing of the transactions in the ledger is called…………………… |
| A. | Posting |
| B. | Journalizing |
| C. | Balancing |
| D. | Auditing |
| Answer» A. Posting | |
| 164. |
A withdrawal of cash from the business by the proprietor should be Credited to: |
| A. | Drawings A/c |
| B. | Capital A/c |
| C. | Cash A/c |
| D. | Current A/c |
| Answer» A. Drawings A/c | |
| 165. |
Narrations are given at the end of ……………………………. |
| A. | Final accounts |
| B. | Trial balance |
| C. | Each ledger accounts |
| D. | Each journal entry |
| Answer» D. Each journal entry | |
| 166. |
Which of the following lists the balance and the title of accounts in the ledger on a given date? |
| A. | P & L account |
| B. | Balance sheet |
| C. | Income statement |
| D. | Trial balance |
| Answer» D. Trial balance | |
| 167. |
Which of the following is not an transaction? |
| A. | Goods are purchased on cash basis for Rs.1000 |
| B. | Salaries paid for the month of may 2009 |
| C. | Land is purchased for Rs.10 lacs |
| D. | An employee is dismissed from the job |
| Answer» D. An employee is dismissed from the job | |
| 168. |
Payment of personal expenses of the owners of business need to be recorded as: |
| A. | Drawing |
| B. | Liabilities |
| C. | Expenses |
| D. | Gains |
| Answer» A. Drawing | |
| 169. |
…………………………….. principle requires that the same method should be used from one accounting period to the next . |
| A. | Conservation |
| B. | Business entity |
| C. | Consistency |
| D. | Money measurement |
| Answer» C. Consistency | |
| 170. |
The petty cashier generally works on ……………………. System |
| A. | Accrual |
| B. | Imprest |
| C. | Balancing |
| D. | None of these |
| Answer» B. Imprest | |
| 171. |
Difference of totals of both debit and credit side of the trial balance is transferred to: |
| A. | Suspense account |
| B. | Trading account |
| C. | P & L account |
| D. | Current account |
| Answer» A. Suspense account | |
| 172. |
Carriage inward is debited to : |
| A. | Suspense account |
| B. | Trading account |
| C. | P & L account |
| D. | P & L appropriation account |
| Answer» B. Trading account | |
| 173. |
Double column cash book records : |
| A. | Only cash transactions |
| B. | All transactions |
| C. | Cash and bank transactions |
| D. | Cash purchase and cash sales transactions |
| Answer» C. Cash and bank transactions | |
| 174. |
All of the following have debit balance except one. That account is ……… |
| A. | Wages account |
| B. | Debtors account |
| C. | Good will |
| D. | Bills payable account |
| Answer» D. Bills payable account | |
| 175. |
Drawings are deducted from …………………………. |
| A. | Sales |
| B. | Purchases |
| C. | Expenses |
| D. | Capital |
| Answer» D. Capital | |
| 176. |
……………………… will generally show a debit balance. |
| A. | Bank loan |
| B. | Bad debt recovered |
| C. | Salary payable |
| D. | Drawings |
| Answer» D. Drawings | |
| 177. |
Purchase of a fixed asset on credit basis is recorded in ……………. |
| A. | Cash book |
| B. | Purchase book |
| C. | Journal proper |
| D. | None of these |
| Answer» C. Journal proper | |
| 178. |
Which of the following account will have credit balance? |
| A. | Sales return |
| B. | Bills receivable |
| C. | Carriage inward |
| D. | Outstanding wages |
| Answer» D. Outstanding wages | |
| 179. |
Depreciations arises because of : |
| A. | Fall in the market value of the asset |
| B. | Fall in the value of money |
| C. | Physical wear and tear of asset |
| D. | Inflation in the market |
| Answer» C. Physical wear and tear of asset | |
| 180. |
Goodwill is …………………………. |
| A. | Current account |
| B. | Fictitious asset |
| C. | Tangible asset |
| D. | Intangible asset |
| Answer» D. Intangible asset | |
| 181. |
When money is withdrawn from the bank ……….. the account of the customer. |
| A. | Credits |
| B. | Debits |
| C. | Either (a) or (b) |
| D. | None of these |
| Answer» B. Debits | |
| 182. |
In case of debit balance , the words …………. are written on the debit side. |
| A. | To balance b/d |
| B. | To balance c/d |
| C. | By balance b/d |
| D. | By balance c/d |
| Answer» A. To balance b/d | |
| 183. |
Bank pass book is also known as ………………………………….. |
| A. | Bank book |
| B. | Bank account |
| C. | Bank column |
| D. | Bank statement |
| Answer» D. Bank statement | |
| 184. |
Capital expenditure are recorded in the ……………….. |
| A. | Balance sheet |
| B. | Profit & loss account |
| C. | Trading account |
| D. | Manufacturing account |
| Answer» A. Balance sheet | |
| 185. |
Accounts receivable normally has ……………………. Balance |
| A. | Credit |
| B. | Debit |
| C. | Favorable |
| D. | Negative |
| Answer» B. Debit | |
| 186. |
Financial statements are the part of ………………………… . |
| A. | Accounting |
| B. | Book keeping |
| C. | All of the above |
| D. | None of the above |
| Answer» A. Accounting | |
| 187. |
Total of purchase return boo is posted periodically to the credit of …… |
| A. | Purchase return book |
| B. | Cash book |
| C. | Journal proper |
| D. | None of these |
| Answer» A. Purchase return book | |
| 188. |
In case credit balance , the words ………….. are written on the credit side. |
| A. | To balance b/d |
| B. | To balance c/d |
| C. | By balance b/d |
| D. | By balance c/d |
| Answer» C. By balance b/d | |
| 189. |
Bank overdraft has a ………………………….. balance |
| A. | Debit |
| B. | Credit |
| C. | Negative |
| D. | Favorable |
| Answer» B. Credit | |
| 190. |
Journal proper records : |
| A. | Bills receivables |
| B. | Bills payables |
| C. | Cash payments |
| D. | Opening entry |
| Answer» D. Opening entry | |
| 191. |
Following is not the example of external users |
| A. | Government |
| B. | Management |
| C. | Investors |
| D. | Suppliers and other creditors |
| Answer» B. Management | |
| 192. |
B/R is a …………………………. |
| A. | Tangible asset |
| B. | Intangible asset |
| C. | Fixed asset |
| D. | Current asset |
| Answer» D. Current asset | |
| 193. |
The trial balance shows closing stock of Rs.30,000 .it will be recorded in ……………….. |
| A. | Trading account |
| B. | Profit and loss account |
| C. | Profit and loss appropriation account |
| D. | Balance sheet |
| Answer» D. Balance sheet | |
| 194. |
Carriage outward is debited to ……………………………….. |
| A. | Trading account |
| B. | P/L account |
| C. | Profit and loss appropriation account |
| D. | Balance sheet |
| Answer» B. P/L account | |
| 195. |
Which of the following is correct? |
| A. | Capital = Asset – Liabilities |
| B. | Capital = Asset + Liabilities |
| C. | Asset = Liabilities – capital |
| D. | Liabilities = Asset + capital |
| Answer» A. Capital = Asset – Liabilities | |
| 196. |
In the ledger there are …………………….. columns. |
| A. | 4 |
| B. | 6 |
| C. | 8 |
| D. | 10 |
| Answer» C. 8 | |
| 197. |
Users of accounting information include ……………………… |
| A. | Creditors |
| B. | Lenders |
| C. | Customers |
| D. | All of the above |
| Answer» D. All of the above | |
| 198. |
Accounting standards in India are issued by …………………… |
| A. | Central Govt. |
| B. | State Govt. |
| C. | Institute of chartered accountants in India |
| D. | RBI |
| Answer» C. Institute of chartered accountants in India | |
| 199. |
Book debts normally has ……………………… balance. |
| A. | Credit |
| B. | Debit |
| C. | Unfavorable |
| D. | None of the above. |
| Answer» B. Debit | |
| 200. |
Capital expenditure provide ………………………… benefits |
| A. | Long period |
| B. | Short period |
| C. | Very short period |
| D. | None of the above |
| Answer» A. Long period | |
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