140+ Special Accounting Solved MCQs

101.

The claim lodged by the business to insurance company on happening the event

A. Claim
B. Loss of claim
C. discharge
D. insurance claim
Answer» D. insurance claim
102.

The account prepared to find out the stock as on the date of fire …..

A. Trading a/c
B. Stock a/c
C. Memorandum trading a/c
D. loss of stock a/c
Answer» C. Memorandum trading a/c
103.

The insurance claim due to loss of stock is reduced to the proportion that the policy value bears to the value of stock

A. Average clause
B. Minimum clause
C. Maximum clause
D. loss of profit clause
Answer» A. Average clause
104.

The insurance policy is less than the value of stock

A. Double insurance
B. re –insurance
C. under insurance
D. over insurance
Answer» C. under insurance
105.

The insurance indemnifies the insured any loss of profit arising from interruption of the normal activity

A. Loss of profit insurance
B. full insurance
C. total insurance
D. fire insurance
Answer» A. Loss of profit insurance
106.

The claim lodged by the business to the insurance company on happening the event of loss is called …………………..

A. Insurance policy
B. Insurance claim
C. Insurance premium
D. None of these
Answer» B. Insurance claim
107.

When a fixed asset is destroyed ,the loss of such asset on the date of fire can be ascertained from

A. record
B. accountant
C. books of accounts
D. None of these
Answer» C. books of accounts
108.

When stock is destroyed the ………………….. of loss is difficult

A. computation
B. reduction
C. deduction
D. allocation
Answer» A. computation
109.

Business concern often suffer …………… due to different reasons .such as fire, theft, flood, strike, etc

A. Normal losse
B. abnormal losses
C. natural losses
D. None of these
Answer» B. abnormal losses
110.

A set of ……………… is to be followed to file a claim with the insurance company

A. rule
B. policies
C. procedure
D. None of these
Answer» C. procedure
111.

Salvage value of stock to be ……….. from book value of stock

A. added
B. deducted
C. corrected
D. none of these
Answer» B. deducted
112.

Average clause is a …………… in the insurance company

A. reserve
B. fund
C. provision
D. none of these
Answer» C. provision
113.

Fire insurance policies contain an “………….” to discharge under insurance

A. Total clause
B. net clause
C. Gross clause
D. average clause
Answer» D. average clause
114.

Fire insurance policies contain an “average clause” to discourage ……………………………..

A. Over insurance
B. fire insurance
C. under insurance
D. None of these
Answer» C. under insurance
115.

Net claim on under insurance is equal to Loss of stock x value of stock On the date of fire

A. Policy value
B. Total value
C. total sales
D. none of these
Answer» A. Policy value
116.

Gross profit on short sales are calculated as

A. Gross profit x operating ratio
B. short sales x gross profit ratio
C. Short sales x net profit ratio
D. short sales x operating ratio
Answer» B. short sales x gross profit ratio
117.

Short sales is the difference between …………… and actual sales of dislocated period

A. net sale
B. gross sales
C. standard sales
D. total sales
Answer» C. standard sales
118.

The amount of insurance ………….. to be paid at regular intervals

A. policy
B. claim
C. commission
D. premium
Answer» D. premium
119.

At the time of calculating insurance claim , the average clause is ………………. If the value of stock at the date of fire was more than the policy value.

A. applicable
B. obtainable
C. receivable
D. payable
Answer» A. applicable
120.

On dissolution of firm creditors are paid --------

A. First
B. Second
C. Third
D. Last
Answer» A. First
121.

Realization account is a ---------- account

A. Personal
B. Real
C. Nominal
D. Both real and nominal
Answer» C. Nominal
122.

Firm’s debts are paid first out of ----------- assets

A. Partner’s
B. Firm’s
C. Shareholder’s
D. None of these
Answer» B. Firm’s
123.

On dissolution, all assets excepting cash are transferred to the ---------- side of realization account

A. Debit
B. Credit
C. Both
D. None of these
Answer» A. Debit
124.

Loss of realization is borne by the partners in their ------ ratio

A. Capital
B. Sacrificing
C. Profit sharing
D. None of these
Answer» C. Profit sharing
125.

On dissolution of firm -------- are paid first

A. Investors
B. Owners
C. Creditors
D. Banks
Answer» C. Creditors
126.

When a liability is assumed by a partner his capital account is ----------

A. Debited
B. Credited
C. deducted
D. None of these
Answer» B. Credited
127.

When an unrecorded asset is taken over by one of the partners, his capital account is ----------------

A. Debited
B. Credited
C. Added
D. None of these
Answer» A. Debited
128.

The account opened to close the various assets and liabilities of the firm on dissolution is called ------------- account

A. Revaluation
B. Amalgamation
C. Realization
D. Reduction
Answer» C. Realization
129.

When a firm is dissolved, project or loss on realization is shared by the partner’s in their ------------- ratio

A. Profit sharing ratio
B. Capital contribution
C. Asset
D. None of these
Answer» A. Profit sharing ratio
130.

In the event of dissolution of firm the partners personal assets are first used for payment of -------------- liabilities

A. Firm’s
B. Outsiders
C. External
D. Personal
Answer» D. Personal
131.

Goodwill appearing in the balance sheet at Rs. 10,000 proved to be valueless, is not to be recorded on the ------------------ side of realization account

A. Debit
B. Credit
C. Both
D. None of these
Answer» B. Credit
132.

On dissolution, partners loan, if any, will be paid ---------

A. First
B. Second
C. Third
D. Lastly
Answer» B. Second
133.

-----------of partnership firm means closing the business of the firm

A. Admission
B. Retirement
C. Insolvency
D. Dissolution
Answer» D. Dissolution
134.

On dissolution, all assets except cash are transferred to ----------- of realization account

A. Debit
B. Credit
C. Both
D. None of these
Answer» A. Debit
135.

If a partner takes over some assets for value on dissolution, realization account should be -----------

A. Debited
B. Credited
C. Both
D. None of these
Answer» B. Credited
136.

In the case of dissolution of the firm , the account opened for closing various items in the balance sheet is called ----------------

A. Deficiency account
B. Revolution account
C. Realization account
D. None of these
Answer» C. Realization account
137.

A partnership which can be dissolved at any time by giving notice to other partners is known as ------------------

A. Particular partnership
B. Partnership at will
C. General partnership
D. None of these
Answer» B. Partnership at will
138.

Liabilities to third parties are paid -------------

A. First
B. Second
C. Third
D. Lastly
Answer» A. First
139.

The ------ has distinguished the ‘dissolution of partnership’ from ‘dissolution of firm’.

A. Companies act 1956
B. Banking regulation act 1949
C. Indian partnership act 1932
D. Insurance act 1938
Answer» C. Indian partnership act 1932
140.

Dissolution of a firm leads to

A. Continuing of business with the remaining partners
B. Closure of business
C. Merger with another firm
D. None of these
Answer» B. Closure of business
141.

Amount advanced by partner over and above the capital is paid

A. Before paying outside debts
B. After paying outside debts
C. Along with outside debts
D. Last along with capital
Answer» B. After paying outside debts
142.

The nominal account prepared to close the account of business is --------------

A. Revaluation account
B. Realization account
C. Profit & Loss appropriation account
D. None of these
Answer» B. Realization account
143.

Realization account is closed by transfer of profit/loss to

A. Cash account
B. Balance sheet
C. Capital accounts
D. Profit and loss account
Answer» C. Capital accounts
144.

Realization account Dr. To partner’s capital a/c; this entry is recorded when

A. Profit is transferred
B. Unrecorded liability is discharged
C. Asset taken over
D. (a) and (b)
Answer» D. (a) and (b)
145.

Realization account Dr. To asset a/c, this entry is written

A. To open the asset account
B. To close the asset account
C. To transfer the profit on asset account
D. None of these
Answer» B. To close the asset account
146.

Find the odd one

A. Retirement of a partner
B. Death of a partner
C. All the partners except one become insolvent
D. Admission of a partner
Answer» C. All the partners except one become insolvent
147.

-------------- is a situation where in existing state of arrangement is changed.

A. Re- possession
B. Insolvency
C. Reconstruction
D. Dissolution
Answer» D. Dissolution
148.

---------------- of the Indian Partnership Act, 1932 states that when the partnership between all the partners of a firm comes to an end, it is called dissolution of the firm

A. Section 5
B. Section 39
C. Section 50
D. Section 93
Answer» B. Section 39
149.

When the relation of partnership among different partners changes without affecting the entity of the firm it is called------

A. Dissolution of partnership
B. Dissolution of firm
C. Dissolved by mutual agreement
D. Termination
Answer» A. Dissolution of partnership
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