McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 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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