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 .
| 101. |
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 | |
| 102. |
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 | |
| 103. |
Joint venture account is of the nature of |
| A. | Personal account |
| B. | Nominal account |
| C. | Real account |
| D. | Suspense account |
| Answer» B. Nominal account | |
| 104. |
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 | |
| 105. |
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 | |
| 106. |
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 | |
| 107. |
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 | |
| 108. |
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. | |
| 109. |
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 | |
| 110. |
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 | |
| 111. |
Amount set apart to meet loss due to bad debt is a |
| A. | Provision |
| B. | Appropriation |
| C. | Reserve |
| D. | Commission |
| Answer» A. Provision | |
| 112. |
Reduction in value of asset due to its continuous use is treated as |
| A. | Appreciation |
| B. | Depreciation |
| C. | Loss |
| D. | Profit |
| Answer» B. Depreciation | |
| 113. |
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 | |
| 114. |
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 | |
| 115. |
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 | |
| 116. |
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 | |
| 117. |
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 | |
| 118. |
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 | |
| 119. |
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 | |
| 120. |
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. | |
| 121. |
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 | |
| 122. |
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 | |
| 123. |
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 | |
| 124. |
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 | |
| 125. |
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. | |
| 126. |
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 | |
| 127. |
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 | |
| 128. |
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 | |
| 129. |
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. | |
| 130. |
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 | |
| 131. |
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 | |
| 132. |
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 | |
| 133. |
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 | |
| 134. |
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 | |
| 135. |
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 | |
| 136. |
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 | |
| 137. |
Ledger contains various _______ in it. |
| A. | transactions |
| B. | entries |
| C. | accounts |
| D. | None of the above |
| Answer» C. accounts | |
| 138. |
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 | |
| 139. |
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 | |
| 140. |
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 | |
| 141. |
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 | |
| 142. |
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 | |
| 143. |
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 | |
| 144. |
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 | |
| 145. |
Memorandum joint venture account is |
| A. | Personal Account |
| B. | Real Account |
| C. | Nominal Account |
| D. | None of the above |
| Answer» C. Nominal Account | |
| 146. |
The balance of the Petty Cash is a / an |
| A. | expense |
| B. | income |
| C. | asset |
| D. | liability |
| Answer» C. asset | |
| 147. |
Endowment fund receipt is treated as |
| A. | Capital Receipt |
| B. | Revenue Receipt |
| C. | Loss |
| D. | Expenses |
| Answer» A. Capital Receipt | |
| 148. |
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 | |
| 149. |
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 | |
| 150. |
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 | |
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