MCQs (BCOM H 205)
Financial Accounting II [BCOM (H) 205]
MULTIPLE CHOICE QUESTIONS [SET 1]
[for End Semester Theory Examination]
1. When an asset is acquired on hire purchase system, the
asset account is debited
with _______ of the assets in the books of the hire
purchaser.
A. Hire purchase price
B. Cash price
C. Instalment price
D. None of these
2. If the firm stops making repayments and the goods or
assets are taken away
from them as a result, this is known as:
A. Cancellation
B. Forfeiture
C. Repossession
D. Annulment
3. Which of the following would not make a distinction
between a hire purchase
and a ‘normal’ purchase?
A. Trade discounts cannot be offered on hire purchase
B. Purchaser pays for item by instalments over a period
of time
C. Cost to buyer is likely to be higher than it would be
for a normal purchase
D. Asset does not belong to purchaser when delivery is
received from supplier
4. On the balance sheet of a company, the value of the
asset bought through hire
purchase will appear as:
A. Cost less depreciation to date less amount owing on
hire purchase less
interest owing
B. Cost less amounts owing on hire purchase
C. Cost less depreciation to date less amount owing on
hire purchase
D. Cost less depreciation to date
5. The depreciation on an asset purchased through hire purchase
should be:
A. Should be straight line only
B. Based on the cost price of the asset only
C. Based on the total cost including interest
D. No depreciation should be provide until the final
payment is made
6. The interest charged on the hire purchase should
appear in the profit and loss
account in what manner?
A. The total interest levied should be divided equally
over the total period the
for purchase agreement
B. The interest charged in that period only should be
included
C. Interest should instead be capitalised on the balance
sheet
D. Interest should be apportioned in proportion to the
repayment totals
7. Ownership of goods under hire purchase agreement is
transferred at the time of:
A. Payment of down payment
B. Payment of first instalment
C. Payment of last instalment
D. None of the above
8. Which of the following does not give a difference
between a hire purchase and
a normal purchase?
A. Timing of payment for asset.
B. Legal ownership of asset.
C. Quality of asset purchased.
D. Total cost of asset.
9. The act of buying an asset without having to make full
payment in the
immediate future is known as:
A. Hire purchase
B. Finance lease
C. Operating lease
D. Sale and leaseback
10. The
amount of interest is credited by the buyer to……………...
A. Hire purchase Account
B. Hire Vendor Account
C. Interest Account
D. Cash Account
11. The
depreciation in the books of buyer is charged on……………..
A. Hire Purchase Price
B. Market price
C. Total Instalment amount
D. Cash Price
12. Hirer charges depreciation on:
A. Hire purchase price
B. Cash price.
C. Lower of the two
D. None of these
13. What is transferred to Hirer under hire purchase
system :
A. Ownership of assets
B. Possession of asset
C. Ownership and possession of asset
D. None of these
14. Hire Purchase Act is passed in the year
A. 1932
B. 1956
C. 1972
D. 1872
15. The Sale of Goods Act is applicable in:
A. Credit Purchases
B. Cash Purchases
C. Cash Sales
D. None of these
16. Under which system, ownership is transferred on
payment of final installment
A. Installment system.
B. Credit system.
C. Hire purchase system.
D. Cash system.
17. Under hire purchase system the buyer is called
_________.
A. Buyer.
B. Hirer.
C. Hire vendor.
D. Debtor.
18. Under hire purchase system who has the right of sell
__________.
A. Buyer.
B. Hirer
C. Hire Vendor.
D. Debtor
19. Under hire purchase system, the agreement can be
_________.
A. Renewed.
B. Registered.
C. Terminated.
D. Endorsed.
20. Installment system is governed by _______
A. Hire Purchase Act.
B. Sale of Goods Act
C. Installment Act.
D. Properties Registration Act.
21. Under hire purchase system, the retail price of the
articles is called ________.
A. MRP.
B. Wholesale Price
C. Retail Price.
D. Cash Price.
22. Cash price plus interest is _________.
A. Installment Price.
B. Hire Purchase Price
C. Maximum Retail Price.
D. Retail Price.
23. The advance amount under hire purchase system is
called __________.
A. Cash Price.
B. Retail Price.
C. Interest
D. Down Payment
24. Under hire purchase system, interest is calculated on
_______.
A. Cash Price.
B. Hire Purchase Price
C. MRP.
D. Outstanding Balance.
25. If the hire purchaser fails to make payment of any
installment, it is called
_______.
A. Default.
B. Repossession.
C. Sale.
D. Purchase.
26. If the hire vendor may take away all the goods on
which there is default of
installment it is called____________.
A. Repossession .
B. Partial Repossession.
C. Complete Repossession.
D. Purchase.
27. The hire vendor takes away only a portion of the
goods on which there is
default of Installments it is called _________.
A. Repossession
B. Partial Repossession
C. Complete Repossession.
D. Purchase.
28. In the books of hirer, for payment of installment
hire vendor account will be
___________.
A. Debited.
B. Credited.
C. Rectified
D. Reversed.
29. In the books of hirer, for interest due at the end of
the year hire vendor account
will be _______.
A. Debited.
B. Credited.
C. Rectified.
D. Reversed.
30. In the books of Hirer, the interest and depreciation
account will be transferred
to ______.
A. Trading account
B. P & L account
C. P & L appropriation account
D. Balance sheet.
31. . In the books of hirer, when the asset is
repossessed hire vendor account will
be ______.
A. Debited.
B. Credited.
C. Rectified.
D. Reversed.
32. In the books of hirer, when the asset is repossessed,
asset account will be
______.
A. Debited.
B. Credited.
C. Rectified.
D. Reversed.
33. In the books of hire vendor, when down payment is
received, the hirer
accounts will be_________.
A. Debited
B. Credited
C. Rectified.
D. Reversed.
34. Under hire purchase system is interest is calculated
on _______.
A. Outstanding Balance .
B. Hire Purchase Price
C. Cash Price.
D. Down Payment.
35. Nature of hire purchase agreement is __________.
A. Agreement of sale
B. Option to transfer.
C. Option to buy.
D. Option to sell.
36. In case of Hire-Purchase the total sum payable by the
hire-purchaser as per
terms in order to complete the transactions is
A. Net Cash Price
B. Net Hire-Purchase Charges
C. Hire-Purchase Price
D. Cash Price Instalment
37. Under ______ system the buyer does not get ownership
of goods immediately
A. Installment
B. HP
C. Installment and HP
D. None of these
38. ________ means the price at which the goods can be
purchased by the hirer for
ready cash.
A. HP price
B. Installment price
C. Cash price
D. Down payment
39. ________ is the initial payment made at the time of
signing the hire purchase
agreement
A. HP price
B. Installment price
C. Cash price
D. Down payment
40. The difference between hire purchase price and the
cash price is called ______
A. Hire charges
B. Cost of the asset
C. Installment price
D. Cash price
41. In order to deal with the re possession the hire
vendor operates an account
called _______
A. Asset account
B. Goods account
C. Goods repossessed account
D. None of these
42. Hire Purchase price =
A. Cash price + Down payment
B. Cash price + Total interest
C. Cash price
D. Sum of total instalments
43. Cash Price =
A. Hire purchase price – total interest
B. Down payment in cash
C. Down payment + Interest
D. None of the above
44. The system of keeping accounts generally adopted by
small size branches
are:
a) Debtors system
b) Stock & Debtors system
c) Wholesale branch system
d) Final account system
45. Goods are supplied by the head office to dependent
branches are at:
a) Cost price
b) Invoice price
c) Market price
d) Cost or invoice price
46. Under debtors system which account is prepared by
head office to
calculate profit or loss of each branch:
a) capital account
b) debtors account
c) branch account
d) branch adjustment account
47. Under debtors system depreciation on fixed asset
is________ _______
a) credited to branch A/c
b) debited to branch A/c
c) not shown in branch A/c
d) shown in debtors A/c
48. Branch Trading &Profit & Loss A/c is only
a_________ account not
forming part of the full accounting system.
a) Single
b) Memorandum
c) Capital
d) Double
49. In final account system branch Trading & Profit
&Loss A/c is prepared at
____________.
a) invoice price
b) cost price
c) cost & invoice price
d) market price
50. Under Final A/c system , the profit or loss made by
the branch is
determined by preparing.
a) Branch stock A/c
b) Branch Debtors A/c
c) Branch Adjustment A/c
d) Branch Trading & Profit &Loss A/c
51. The Branch Account prepared under Final Account
System is the nature
of:
a) Nominal Account
b) Real Account
c) Personal Account
d) General Account
52. Branch which doesnot maintain its own set of books
is__________.
a) Dependent branch
b) Independent branch
c) Foreign branch
d) Local branch
53. Dependent branch makes :
a) Cash sales only
b) Credit sales only
c) Cash & Credit sales
d) Instalment sales
54. All branch expenses such as rent, salary are paid by
H.O in case of:
a) independent branch
b) local branch
c) dependent branch
d) foreign branch
55. Under Stock & Debtors system ________ account is
prepare by H.O to
ascertain the Gross Profit earned by the branch.
a) Branch stock A/c
b) Branch Adjustment A/c
c) Branch expenses A/c
d) Branch P&L A/c
56. In branch Account ,goods sent by branch P to branch Q
will be debited
to;
a) branch X
b) branch P
c) branch Q
d) branch Y
57. Under stock &debtors system ________account is
prepared by H.O to
ascertain the Net Profit.
a) Branch stock A/c
b) Branch Adjustment A/c
c) Branch expenses A/c
d) Branch P&L A/c
58. Branch Trading & Profit & Loss A/c is
prepared to incorporate all____.
a) Revenue items
b) Capital items
c) Asset items
d) Past items
59. Under Stock and Debtors system of branch Account
branch adjustment
account is opened when goods sent to branch is at:
a) Cost price
b) Invoice price
c) Market price
d) Normal price
60. Under debtors system ,the cash sales are
a) Debited to branch account
b) Credited to branch account
c) Debited to debtors account
d) Credited to creditors account
61. Under stock & debtors system of branch A/c the
account prepared to
record all the transactions relating to branch debtors is
recorded in ____.
a) Branch Account
b) Branch adjustment account
c) Branch debtors account
d) Branch expenses account
62. Under debtors system of branch account ,both cash and
credit sales are :
a) Shown in debit side
b) Shown in credit side
c) Shown in asset side
d) Not shown
63. The difference between goods sent by H.O and received
by branch is
known as_______
a) Goods in transit
b) Goods in warehouse
c) Goods in production
d) Goods in godown
64. Which account is used for recording transactions
relating to H.O
supplying resources to the branch?
a) Capital account
b) Branch account
c) Current account
d) Joint venture account
65. If a branch has purchased fixed asset on credit basis
the liability from
such purchase is __________ branch account.
a) Debited to
b) Credited to
c) Not shown in
d) Decreased from fixed asset in
66. In case of H.O having many branches , transactions
among the branches
are called.
a) Branch-H.O transaction
b) H.O- Branch Transaction
c) Inter-branch transaction
d) Intra branch transaction
67. The stock reserve for unrealised profit will be
________ to the H.O profit
& Loss A/C
a) Debited
b) Credited
c) First credited then debited
d) Not shown
68. When a bill is drawn by Branch X on Branch Y, then
the books of Branch
X is debited by:
a) Bills receivable
b) Head Office
c) Bills Payable
d) Branch Y
69. When goods are supplied by branch X to Branch Y, the
Head Office
books is debited by:
a) Branch X
b) Branch Y
c) Goods supplied to other branches
d) Goods received from other branches
70. When branch has paid some cash on behalf of the Head
Office, for purchases made by H.O, the books of head office is debited by:
a) Cash account
b) Sales account
c) Purchases account
d) Branch account
71. When branch has collected some cash on behalf of H.O,
the books of
branch is credited by:
a) Cash account
b) H.O account
c) Calls in arrear account
d) Purchases account
72. In case of goods in transit the H.O will make an
adjusting entry by
debiting__________ at the end of the accounting period.
a) Branch account
b) Purchases account
c) Goods in transit account
d) Sales account
73. In case of cash in transit the books of branch
__________ account is
debited to reconcile the difference.
a) Head office
b) Cash in transit
c) Bank
d) Branch
74. When an asset is purchased if payment is made by
branch the H.O books
is debited by ________ account:
a) Branch fixed asset
b) Branch
c) Cash
d) P&L
75. ____________ account is prepared to adjust the loads
included in the
value of opening stock and closing stock.
a) Branch stock
b) Branch adjustment
c) Stock reserve
d) Branch P&L
76. The balance of goods sent to branch account is
transferred to_________
account
a) Trading
b) Stock
c) Sales
d) Branch expenses
77. ____________ account shows the shortage or surplus of
stock.
a) Branch adjustment
b) Branch stock
c) Goods sent to branch
d) Branch P&L
78. The profit included in surplus or shortage of stock
is transferred to
______ account
a) Branch stock
b) Branch expenses
c) Branch adjustment
d) Branch P&L
79. The balance of branch adjustment account is
transferred to _________
account
a) Branch stock
b) Branch P&L
c) Branch Debtors
d) Branch expenses
80. Under debtors system the opening balance of assets
are __________ to
branch account.
a) Debited
b) Credited
c) First debited then credited
d) First credited then debited
81. Under debtors system the opening balance of
liabilities are_________ to
branch account.
a) Debited
b) Credited
c) First debited then credited
d) First credited then debited
82. Under debtors system the closing balance of assets
are ___________ to
branch account.
a) Debited
b) Credited
c) First debited then credited
d) First credited then debited
83. Under debtors system the closing balance of
liabilities are _________ to
branch account.
a) Debited
b) Credited
c) First debited then credited
d) First credited then debited.
84. Departments are located in
a) same place
b)next city
c)outside state
d)in a foreign country
85. Departmental Accounts are prepared to ascertain
a)departmental efficiency
b) workers efficiency
c) sales income
d)share value
86.which of the following is a method of departmental
accounting?
a)debtors system
b) stock and debtors system
c) Independent method
d) single entry system
87. In departmental accounting,Advertisement is
apportioned on the basis of
a)sales
b)goods manufactured
c) purchases
d)value of plant
88. in departmental accounting canteen expenses are
apportioned onthe basis of
a)food items purchased
b)food items sold
c)no.of employees
d)average stock
89. Work Managers salary is apportioned on the basis of
a)purchases of each dept
b)sales of each department
c)value of plant and machinery
d)time spent in each department
90. In departmental accounting,where separate books are
kept for each Department, it is commonly referred to as
a) Independent accounting
b)columnar accounting
b) Consolidated accounting
d) single entry system
91. Selling expenses are apportioned on the basis of
a)sales
b)purchases
c) no of customers
d) no.of employees
92. Group Insurance premium is apportioned on the basis
of
a)no.of employees
b) no.of Managers
c) no.of supervisors
d)Direct wages
93.Depreciation is apportioned on the basis of
a)purchases
b)sales
c)advertisement
d) none of these
94. Sales is the basis of apportionment in the case of
a)travelling salesman’s commission
b)freight outwards
c)after sales service
d)all of the above
95. Find the Loading which is 20% of the invoice price of
goods if the cost
price of goods is 20,000
a)2000
b)3000
c)4000
d)6000
96. If the Invoice price of Closing stock is Rs3,60000
what amount
should be transferred to Stock Reserve given Loading is
20% of
Invoice price
a)60,000
b) 1,20,000
c)40,000
d)10,000
97. Departmental Accounting facilitates
a.comparison of trading results
b.intelligent planning and control
c.evaluating departmental performance
d.all of the above
98. such items of expenditure and income which cannot be
reasonably
allocated to any particular department are taken in
a.debtors book
b.creditors book
c.Balance sheet
d.General Profit and Loss Acount
99. When the accounts of all departments are maintained
together, in
columnar form, it is known as -------
a.Unitary method
b.Independent form
c.single entry
d.columnar form
100. Insurance on stock is apportioned on the basis of
a.purchases
b.sales
c.average stock carried
d.average stock sold
101. Rent rates and taxes are apportioned on the basis of
a.area
b.sales
c.purchases
d.no.of employees
102.Discount allowed is apportioned on the basis of
a.purchases
b.sales
c.goods manufactured
d.no of customers
103. how many methods are there in recording departmental
transactions?
a.4
b.3
c.2
d.1
104.Retirement and death of a partner:
a.is dissolution of partnership agreement
b. is dissolution of a firm
c.may or may not be a dissolution of partnership
agreement
d.None of these
105.The partnership may come to an end due to the:
a.Death of a partner
b.Insolvency of a partner
c.Both of above
d.None of these
106.If all the partners, but one are insolvent it is:
a.Dissolution of an agreement
b.Dissolution of a firm
c.May or may not cause dissolution
d.all
107.At the time of dissolution:
a.all the assets are transferred to realization account
b.Only current assets are transfered to realization
account
c.Non-cash assets are tranferred to realization account
d.All the above must be done.
108.At the time of dissolution non-cash assets are
credited with:
a.Market value
b.Book value
c.As the agreed amount among partners
d.None of these
109.If a partner takes over an asset of the firm, his
capital account:
a.will be debited with the amount as agreed
b.will be credited with the market value of the asset
c.will be debited with book value of asset
d.None of these
110.If a liability is settled at higher value than shown
on the balance sheet and a
partner takes the responsibility to pay that:
a.It causes a loss of realization
b.It causes gain on realization
c.It is loss for the partner
d.None of these
111.Loss on realization is distributed among partners:
a.According to income sharing ratio
b.According to capital ratio
c.As decided among them
d.according to equal ratio
112.Loss on realization is:
a.Debited to partners capital account
b.Credited to partners capital account
c.Debited to realisation account
d.Credited to realisation account
113.When all the partners are insolvent accounts payable
will be:
a.Paid fully
b.Paid rateably
c.Taken over by partner
d. paid equally
114.All the time of admission, partnership firm is
dissolved if business is
a.Discontinued
b.Suffering loss
c.Not to the liking of new partner
d.None of these
115. All the accounts are settled among partners and
creditors at the time
of ……………… of a business.
a.dissolution
b.commencement
c.admission
d.retirement
116.First of all …………….. of the firms will be
settled out of sources of the
business:
a.Liabilities
b.Assets
c.Capital
d.all
117.Admission of a partner is termination of ……………… and
not a
dissolution of firm
a.Business
b.Agreement
c.Dissolution
d.None of these
118.Court may also dissolve a firm, if a partner files a
suit, that one of the
partners is ……………………..
a.Not active partner
b.Not willing to share responsibilities
c.Of unsound mind
d.sleeping partner
119.Partners are liable to settle the account of accounts
payable even from
their …………….., if they are solvent.
a.Private sources
b.Capital portion
c.Profit share
d.out of salary
120.…………. of partner will be paid off, before the
settlement of partner's
capital.
a.Capital
b.Profit share
c.loan
d.salay
121.On dissolution partner's capital balance will be
a.paid to them rateably
b.forfeited
c.withheld
d.None of these
122. Retirement/death of a partner will not be
dissolution if :
a.remaining partners are agreed on continuing it
b.there is no consensus on future
c.deed does not specify anything on it.
d.None of these
123.If all partners mutually decide for the dissolution,
it will be
a.dissolution of the firm
b.dissolution of deed
c.dissolution of business activity
d.None of the above
124. A dissolution of a partnership take place due to any
of the following
causes:
a.By the mutual agreement between the partners to
dissolve
b.At the death of a partner
c.Both of the above
d.None of the above
125. On the dissolution of the firm following steps are
necessary:
a.Pay off the debts and liabilities of the firm
b.Pay the loan of the partner
c.both of the above
d. pay off capital
126. The process of disposing off the assets and paying
off the liabilities is
called:
a.Realization
b.Disinvestment
c.reconciliation
d.None of these
127.If one partner become insolvent, in what ratio
solvent partners bear the
deficiency?
a.New ratio is decided
b.In the ratio of their capital as it stood just before
the liquidation
c.Solvent partners do not bear deficiency
d.All the above
128. What will be passed, for creditor's liabilities at
the time of dissolution,
when all partners are insolvent?
a.Liabilities a/c debited, Cash a/c credited, Deficiency
a/c credited
b.Liabilities a/c credited, Cash a/c credited, Deficiency
a/c credited
c.Liabilities a/c debited, Cash a/c debited, Deficiency
a/c credited
d. None of the above
129. In Garner VS Murray, insolvency loss on borne by
solvent partners in:
a.Capital ratio
b.Profit sharing ratio
c.Final claims ratio
d. None of the above
130.A firm is unable to pay debts when:
a.Partner is insolvent
b.Partner has debit balance
c.Firm is insolvent
d.All the above
131.Realization account is a:
a.Real account
b.Nominal account
c.Personal account
d.Capitalaccount
132. When realization expenses are borne by partner, it
is credited to:
a.Partners capital account
b.Cash account
c.Profit and loss account
d.Profit and loss appropriation account
133. At the time of dissolution of firm, the assets taken
over by partner should
be:
a.Credit to realization account
b.Debited to realization account
c.Nothing happens to realization account
d.Debited to drawings account
134. An unrecorded asset realized at the time of
realization is credit to:
a.Capital account
b.Realization account
c.No accounting entry is made
d. drawings account
135. An unrecorded liability paid at the time of
realization is debited to:
a.Capital account
b.Realization account
c.No accounting entry is made
d.drawings account
136. Profit or loss on realization should be divided
among partners in the:
a.Profit sharing ratio
b.Capital ratio
c.equally
d.None of these
137. Provision for doubtful debts at the time of
dissolution ins transferred to :
a.Debtors account
b.Realization account
c.Cash account
d.capital account
138. General reserve account at the time of dissolution
is transferred to:
a.Bank account
b.Realization account
c.Capital account
d.drawings account
139. Goodwill account is closed at the time of
dissolution by transferring it to :
a.Realization account
b.capital account
c.Liability account
d.drawings account
140. Realization made in part is called:
a.Distribution of capital
b.Piece meal distribution
c.Equal share
d.All of the above
141. At the time of dissolution, assets are transferred
to realization account at:
a.Book value
b.Market value
c.Replacement value
d.None of these
142. The first step in dissolution is:
a.Prepare balance sheet on date of dissolution
b.Distribute cash to partners
c.None of these
143. After the dissolution of a firm, the authority of a
partner to bind the firm:
a.Does not continue at all.
b.Continues so far as may be necessary to wind up the
affairs of the firm .
c. New agreement created
d. None of these
144. Loss arising out of partner’s insolvency can be
recouped from:
a.Solvent partners
b.The firm itself
c.Partner’s estate
d.Partner’s Legal Heirs
145. _________________ is a selected set of accounting
policies or broad
guidelines regarding the principles and methods to be
chosen out of several
alternatives.
a.Accounting Rules
b. Accounting Policies
c.Accounting Standards
d. Accounting Laws
146.ASB stands for____________
a.American Standard Board
b.Accounting Standard Board
c. American Standard Books
d. Accounting System Books
147.ASB was constituted by____________
a.ICAI
b.ICWAI
c.ICSI
d. NOTA
148. AS-10 deals with_____________
a.Accounting for Fixed Assets
b.Accounting for Current Assets
c.Accounting for Inventory
d.Accounting for Govt Grants
149. As per AS-2 inventories consist of____________
a. Finished goods
b.Work in progress
c.Stores, Spares, Consumables
d.All of the above
150. As-9 is not applicable to
a.Revenue from construction contract
b. Revenue from hire purchase
c.Revenue from govt grants
d.All of the above
151. AS-19 deals with_______________
a.Revenue realization
b.Accounting policies
c. Lease
d.NOTA
152.AS-1 deals with------
a. Cash flow Statement
b.Lease
c.Valuation of inventory
d. Disclosure
of Accounting Policies
153. AS-2 deals with----
a.Fixed Assets
b.Valuation of inventory
c.Revenue realization
d. NOTA
ANSWER KEY TO MCQs [SET 1]
1 B 26 C 51 A 76 A 101 A 126 A 151 C
2 C 27 B 52 A 77 B 102 B 127 B 152 D
3 A 28 A 53 C 78 C 103 C 128 A 153 B
4 D 29 B 54 C 79 B 104 A 129 A
5 B 30 B 55 B 80 A 105 C 130 C
6 B 31 A 56 C 81 B 106 C 131 B
7 C 32 B 57 D 82 B 107 C 132 A
8 C 33 B 58 A 83 A 108 B 133 A
9 A 34 C 59 B 84 A 109 A 134 B
10 B 35 C 60 B 85 A 110 A 135 B
11 D 36 C 61 C 86 C 111 A 136 A
12 B 37 B 62 D 87 A 112 A 137 B
13 B 38 C 63 A 88 C 113 B 138 C
14 C 39 D 64 B 89 D 114 C 139 A
15 A 40 A 65 A 90 A 115 A 140 B
16 A 41 C 66 C 91 A 116 A 141 A
17 C 42 B 67 D 92 D 117 B 142 A
18 C 43 A 68 A 93 D 118 B 143 B
19 C 44 A 69 B 94 D 119 A 144 A
20 B 45 D 70 D 95 C 120 C 145 C
21 C 46 C 71 B 96 A 121 A 146 B
22 B 47 C 72 C 97 D 122 A 147 A
23 D 48 B 73 B 98 D 123 A 148 A
24 D 49 C 74 A 99 D 124 C 149 D
25
A 50 D 75 B 100 C 125 c 150 D
MCQs ||SET 2 ||
(a)
Current ratio is:
(i)
Short term solvency ratio
(ii)
Long term solvency ratio
(iii)
Turnover ratio
(iv)
Profitability ratio
(b)
Turnover ratios are expressed in:
(i)
Percentage
(ii)
Times
(iii)
Numbers
(c)
None of these
Under stock &debtors system ________account is prepared by H.O to ascertain the Net Profit.
Under stock &debtors system ________account is prepared by H.O to ascertain the Net Profit.
(i)
Branch stock A/c
(ii)
Branch Adjustment A/c
(iii)
Branch expenses A/c
(iv)
Branch P&L A/c
(d)
Branch Trading & Profit & Loss
A/c is prepared to incorporate all____.
(i)
Revenue items
(ii)
Capital items
(iii)
Asset items
(iv)
Past items
(e)
The act of buying an asset without
having to make full payment in the immediate future is known as:
(i)
Hire purchase
(ii)
Finance lease
(iii)
Operating lease
(iv)
Sale and leaseback
(f)
The amount of interest is credited by
the buyer to……………...
(i)
Hire purchase Account
(ii)
Hire Vendor Account
(iii)
Interest Account
(iv)
Cash Account
(g)
The depreciation in the books of buyer
is charged on……………..
(i)
Hire Purchase Price
(ii)
Market price
(iii)
Total Instalment amount
(iv)
Cash Price
(h)
Cash Price is equals to:
(i)
Hire purchase price – total interest
(ii)
Down payment in cash
(iii)
Down payment + Interest
(iv)
None of the above
(i)
Which of the following is non-current
liability?
(i)
Mortgage loan
(ii)
Bank overdraft
(iii)
Outstanding wages
(iv)
Bills payable
(j)
Depreciation on Machinery is:
(i)
Use of fund
(ii)
Sources of fund
(iii)
No flow of fund
(iv)
None of these
(k)
Which of the following will increase working
capital?
(i)
Paying cash to
Debtors
(ii)
Payment to the
creditors by cheque
(iii)
Writing off
goodwill
(iv)
Sale of old
furniture for cash
(l)
Which of the following will not change
working capital?
(i)
Purchase of goods
for cash
(ii)
Purchase of machinery
for cash
(iii)
Purchase of
machinery against cheque
(iv)
Sale of old machine
against cheque
(m) Which
of the following is an application of fund?
(i)
Payment of salaries
(ii)
Writing off
depreciation
(iii)
Sale of fixed
assets
(iv)
Payment of dividend
(n)
Cash from operations and cash flow from
operating activities is equal to:
(i)
Net Profit +
Increase in current assets
(ii)
Net Profit +
Decrease in Current Liabilities
(iii)
Operating Profit +-
Adjustment in Current Assets and Current Liabilities
Net Profit after
Tax
(o)
Which of the following
is not a Cash Inflow?
(i)
Purchase of fixed
assets
(ii)
Sale of goods
(iii)
Issue of Debentures
(iv)
Sale of Fixed
Assets
(p)
According to AS-3
(Revised), purchase of fixed assets is treated as:
(i)
Operating activity
(ii)
Investing activity
(iii)
Financing activity
(iv)
None of these
(q)
Which of the following
is an example of non cash expenses?
(i)
Depreciation
(ii)
Wages and salaries
(iii)
Telephone expenses
(iv)
None of these
(r)
Cash flow statement helps in which form
of financial planning?
(i)
Short term
(ii)
Long term
(iii)
Very short term
(iv)
Very long term
(s)
In common size statement of profit and
loss, percentage is calculated on:
(i)
Revenue from
operations
(ii)
Total revenue
(iii)
Cost of goods sold
(iv)
None of these
(t)
Accounting records only:
(i)
Monetary
transactions
(ii)
Non monetary
transactions
(iii)
Monetary events
(iv)
Both (i) and (iii)
KEY
TO MCQs [SET 2]
Question No.
|
Answer
|
(a)
|
(i)
Short term solvency ratio
|
(b)
|
(ii)
Times
|
(c)
|
(iv)
Branch P&L A/c
|
(d)
|
(i)
Revenue items
|
(e)
|
(i)
Hire purchase
|
(f)
|
(ii)
Hire Vendor Account
|
(g)
|
(iv)
Cash Price
|
(h)
|
(i)
Hire purchase price – total interest
|
(i)
|
(i)
Mortgage loan
|
(j)
|
(ii)
Sources of fund
|
(k)
|
(iv)
Sale of old
furniture for cash
|
(l)
|
(i)
Purchase of goods
for cash
|
(m)
|
(iii)
Sale of fixed
assets
|
(n)
|
(iii)
Operating Profit
+- Adjustment in Current Assets and Current Liabilities
|
(o)
|
(i)
Purchase of fixed
assets
|
(p)
|
(ii)
Investing
activity
|
(q)
|
(i)
Depreciation
|
(r)
|
(iii)
Very short term
|
(s)
|
(i)
Revenue from
operations
|
(t)
|
(iv)
Both (i) and
(iii)
|
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