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MCQOPTIONS
This section includes 743 Mcqs, each offering curated multiple-choice questions to sharpen your Teaching knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Match the following List I List II A. Reserves must be transferred in the .. 1. Goodwill B. A firm is dissolved, when the business of the firm is declared....... 2. Interest on loan C. ......should be compulsory revalued at the time of admission. 3. Old profit sharing ratio D. In the absence of an agreement partners are entitled to. 4. Illegal Codes |
| A. | A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 |
| B. | A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 |
| C. | A\[\to \]3, B\[\to \]4, C\[\to \]2, D\[\to \]1 |
| D. | A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 |
| Answer» B. A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 | |
| 2. |
Match the following List I List II A. Interest on partners capital is chargeable to the extent of available. 1. Competing B. The amount due to the retiring partner can be made by...... payment method. 2. Mutual C. A partner must not carry on a ...... business. 3. Profit D. Partners are mutual......for each other. 4. Lump-sum Codes |
| A. | A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 |
| B. | A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 |
| C. | A\[\to \]3, B\[\to \]4, C\[\to \]2, D\[\to \]1 |
| D. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| Answer» C. A\[\to \]3, B\[\to \]4, C\[\to \]2, D\[\to \]1 | |
| 3. |
Match the following List I List II A. A new partner can be admitted with the consent of...... existing partners. 1. Current B. Increase in liability at the time of retirement is debited to ......account. 2. All C. Buying and selling is ......power of partners 3. Revaluation D. The ...... account of partner may have a debit or credit balance. 4. Implied Codes |
| A. | A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 |
| B. | A\[\to \]2, B\[\to \]3, C\[\to \]4, D\[\to \]1 |
| C. | A\[\to \]2, B\[\to \]4, C\[\to \]1, D\[\to \]3 |
| D. | A\[\to \]2, B\[\to \]3, C\[\to \]4, D\[\to \]1 |
| Answer» E. | |
| 4. |
Match the following List I List II A. At the beginning of each month 1. 5 and 1/2 month B. At the end of each month 2. 6 and 1/2 month C. At the beginning of each quarter 3. 4 and 1/2 month D. At the end of each quarter 4. 7 and 1/2 month Codes |
| A. | A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 |
| B. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| C. | A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 |
| D. | A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 |
| Answer» B. A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 | |
| 5. |
When two or more existing companies go into liquidation and a new company is formed to take over their business, it is known as |
| A. | Amalgamation |
| B. | liquidation |
| C. | Reconstruction |
| D. | cartel |
| Answer» B. liquidation | |
| 6. |
A and B are partners in a firm sharing profits and losses in the ratio of 3: 2. A new partner C is admitted. A surrenders 1/5th share of his profit in favour of C and B surrenders 2/5th of his share in favour of C. Their new profit sharing ratio is |
| A. | 5:4:3 |
| B. | 5:5:2 |
| C. | 2: 1: 1 |
| D. | 12:6:7 |
| Answer» E. | |
| 7. |
The net profit shown by profit and loss account is transferred to |
| A. | profit and loss appropriation account |
| B. | trading account |
| C. | balance sheet |
| D. | income statement |
| Answer» B. trading account | |
| 8. |
If the partnership deed is silent on a certain point, the rules as contained in Section ......to.....of the Indian Partnership Act, 1932 apply. |
| A. | 12 to 17 |
| B. | 16 to19 |
| C. | 19 to 21 |
| D. | 12 to 15 |
| Answer» B. 16 to19 | |
| 9. |
The minimum number of partners to constitute a partnership firm must be |
| A. | 20 |
| B. | 10 |
| C. | 7 |
| D. | 2 |
| Answer» E. | |
| 10. |
Only a notice of this effect is sufficient for dissolution of the partnership if |
| A. | Partnership is for a limited period |
| B. | Partnership is not for a limited period |
| C. | Partnership is at will |
| D. | None of the above |
| Answer» D. None of the above | |
| 11. |
A and B are partners sharing profits and losses in the ratio of 2:1. They admit a new partner C whom they give 1/6th share in profits. Their new profit sharing ratio is |
| A. | 10:5:3 |
| B. | 2:10:5 |
| C. | 10:3:5 |
| D. | 3:10:2 |
| Answer» B. 2:10:5 | |
| 12. |
All the partners of a partnership firm |
| A. | have unlimited liability |
| B. | are jointly liable for the firms debts |
| C. | are severally liable for the firms obligations |
| D. | All of the above |
| Answer» E. | |
| 13. |
What is essential for the establishment of a partnership firm? |
| A. | An agreement among the partners |
| B. | Lawful business |
| C. | Consent of two or more persons |
| D. | All of the above |
| Answer» E. | |
| 14. |
Gaining ratio can be calculated as |
| A. | New Ratio - Old Ratio |
| B. | Old Ratio - New Ratio |
| C. | New Ratio + Old Ratio |
| D. | None of the above |
| Answer» B. Old Ratio - New Ratio | |
| 15. |
Goodwill is nothing more than the probability that the old customers will resort to the old place. Who states this statement? |
| A. | Dicksee |
| B. | Lord Macnaghten |
| C. | Lord Eldon |
| D. | None of the above |
| Answer» D. None of the above | |
| 16. |
A and B are partners in a firm, sharing profits in the ratio of 3:2. They admit X as a partner of 1/3rd share in the profits of the firm. The new profit sharing ratio of A, B and X is |
| A. | 3: 2: 1 |
| B. | 3: 2: 3 |
| C. | 3: 2: 2 |
| D. | 6: 4: 5 |
| Answer» E. | |
| 17. |
An example of intangible asset is |
| A. | goodwill |
| B. | debit balance of profit and loss account |
| C. | preliminary expenses |
| D. | deferred revenue expenditure |
| Answer» B. debit balance of profit and loss account | |
| 18. |
Sacrificing ratio is used at the time of |
| A. | admission of a partner |
| B. | retirement of a partner |
| C. | death of a partner |
| D. | dissolution of firm |
| Answer» B. retirement of a partner | |
| 19. |
New profit sharing ratio is calculated at the time of |
| A. | admission of a partner |
| B. | retirement of a partner |
| C. | death of a partner |
| D. | All of the above |
| Answer» E. | |
| 20. |
The partner of unregistered firm does not have a right to |
| A. | share in profit of the firm |
| B. | participate in the business of the firm |
| C. | demand accounts after the dissolution of the firm |
| D. | file a suit against this party on behalf of the firm |
| Answer» E. | |
| 21. |
In unregistered partnership, firm is |
| A. | an illegal association |
| B. | can do business after paying the penalty |
| C. | can do business only after taking special permission |
| D. | can do business under certain bindings |
| Answer» E. | |
| 22. |
The method of valuation of goodwill is given in the |
| A. | agreement |
| B. | partnership deed |
| C. | Both and |
| D. | None of the above |
| Answer» C. Both and | |
| 23. |
In the absence of partnership deed, profit and loss is shared |
| A. | in proportion to capital contributed |
| B. | equally among all the partners |
| C. | in proportion functional participation in day-to-day operation |
| D. | not well defined |
| Answer» C. in proportion functional participation in day-to-day operation | |
| 24. |
A partnership legally not recognised in India is |
| A. | general partnership |
| B. | specific partnership |
| C. | limited partnership |
| D. | voluntary partnership |
| Answer» D. voluntary partnership | |
| 25. |
Indian Partnership, Act was passed in |
| A. | 1956 |
| B. | 1957 |
| C. | 1932 |
| D. | 1872 |
| Answer» D. 1872 | |
| 26. |
Partner and firm are mutually related |
| A. | Management |
| B. | servant |
| C. | Agent |
| D. | shareholder |
| Answer» D. shareholder | |
| 27. |
Partnership ends with issuing information in this regard when |
| A. | there is no objective for such partnership |
| B. | partnership is based purely on will |
| C. | partnership is for a limited period |
| D. | the period of partnership is definite |
| Answer» C. partnership is for a limited period | |
| 28. |
Rate of interest for a partner on his debt account in the absence of a deed is |
| A. | 3% |
| B. | 6% |
| C. | 9% |
| D. | 12% |
| Answer» C. 9% | |
| 29. |
R, M and P are partners. P dies in an accident. It results into |
| A. | Dissolution of the firm |
| B. | Dissolution of partnership |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» C. Both (a) and (b) | |
| 30. |
A retired partner continues to be liable towards third party |
| A. | if he does not give a public notice to this effect |
| B. | if he has not cleared dues of the firm |
| C. | if only three months have passed after his retirement |
| D. | All of the above |
| Answer» B. if he has not cleared dues of the firm | |
| 31. |
Match the following List I List II A. Super profit method 1. 6% B. Revoluation account is prepared at the time of 2. Goodwill C. Interest on loan 3. Admission of a partner Codes |
| A. | A\[\to \]2, B\[\to \]3, C\[\to \]1 |
| B. | A\[\to \]3, B\[\to \]1, C\[\to \]2 |
| C. | A\[\to \]1, B\[\to \]2, C\[\to \]3 |
| D. | A\[\to \]3, B\[\to \]2, C\[\to \]1 |
| Answer» B. A\[\to \]3, B\[\to \]1, C\[\to \]2 | |
| 32. |
Match the following List I List II A. Partnership can be formed for that purpose of carrying....... 1. Incoming partner B. Guaranteed profit is generally given to....... 2. business C. Every partner is a joint ......of the partnership property. 3. nominal D. Partners, who do not contribute any capital and have no interest in the business are known as..... partners 4. owner Codes |
| A. | A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 |
| B. | A\[\to \]2, B\[\to \]4, C\[\to \]1, D\[\to \]3 |
| C. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| D. | A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 |
| Answer» B. A\[\to \]2, B\[\to \]4, C\[\to \]1, D\[\to \]3 | |
| 33. |
What is a sleeping partner? |
| A. | The partner who does not participate in operation of business of the firm |
| B. | The partner who has been retired from the firm |
| C. | The partner who does not demand the share of profit |
| D. | All of the above |
| Answer» B. The partner who has been retired from the firm | |
| 34. |
A partnership is created by |
| A. | registration |
| B. | circumstances |
| C. | contract |
| D. | law of succession |
| Answer» D. law of succession | |
| 35. |
Which of the following acts contains the rule as to the maximum number of partners in a firm? |
| A. | Indian Contract, Act |
| B. | Indian Partnership, Act |
| C. | Companies, Act |
| D. | Banking Companies Regulation, Act |
| Answer» C. Companies, Act | |
| 36. |
A partnership agreement may be |
| A. | oral |
| B. | written |
| C. | Either oral or written |
| D. | None of the above |
| Answer» D. None of the above | |
| 37. |
Every partner is a |
| A. | proprietor or owner of the firm |
| B. | agent of the firm |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» D. None of the above | |
| 38. |
The maximum number of partners in any business can be |
| A. | 7 |
| B. | 15 |
| C. | 50 |
| D. | None of these |
| Answer» D. None of these | |
| 39. |
In the absence of an agreement, the partners are not entitled to get this |
| A. | Profit and loss |
| B. | Interest of loan |
| C. | Salary |
| D. | None of the above |
| Answer» D. None of the above | |
| 40. |
Calculate the value of closing stock from the following Particular Amount (`) Opening stock 60000 Purchase 90000 Sales 120000 Gross Profit on Cost 33 1/3% Due to fire stock costing ` 25000 destroyed and insurance claim was accepted for ` 8000. |
| A. | ` 40000 |
| B. | ` 35000 |
| C. | ` 55000 |
| D. | ` 60000 |
| Answer» C. ` 55000 | |
| 41. |
If closing stock appears in the trial balance then it appears in |
| A. | Trading account |
| B. | Profit and loss account |
| C. | Balance sheet |
| D. | Profit and loss appropriation |
| Answer» D. Profit and loss appropriation | |
| 42. |
(`) Opening stock 15000 Purchase 60000 Wages 46000 Fuel 15000 Sale 145000 The balance in books of X, a sole proprietor were Closing Stock ` 26,000 whose net realisable value was ` 28,000. Find the gross profit. |
| A. | ` 35,000 |
| B. | ` 42,500 |
| C. | ` 54,500 |
| D. | ` 57,000 |
| Answer» B. ` 42,500 | |
| 43. |
(`) Opening stock 5000 Purchase 15000 Direct expenses 2000 Closing stock 2500 |
| A. | ` 20000 |
| B. | ` 19500 |
| C. | ` 21500 |
| D. | ` 22000 |
| Answer» C. ` 21500 | |
| 44. |
Match the following List I List II A. Final accounts are prepared after preparation of 1. Land B. Trading account and profit and loss arestatements. 2. Trial Balance C. is a tangible fixed assets 3. Balance Sheet D. Suspense account appearing in trial balance is shown in 4. Periodic Codes |
| A. | A\[\to \]2, B\[\to \]4, C\[\to \]1, D\[\to \]3 |
| B. | A\[\to \]1, B\[\to \]2, C\[\to \]3, D\[\to \]3 |
| C. | A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]3 |
| D. | A\[\to \]1, B\[\to \]1, C\[\to \]2, D\[\to \]3 |
| Answer» B. A\[\to \]1, B\[\to \]2, C\[\to \]3, D\[\to \]3 | |
| 45. |
Match the following List I List II A. Finished goods 1. Are in the process of production B. Work -in-progress 2. To be consumed in the production process C. Raw material 3. Held for sale in ordinary course of business Codes |
| A. | A\[\to \]3, B\[\to \]2, C\[\to \]1 |
| B. | A\[\to \]3, B\[\to \]1, C\[\to \]2 |
| C. | A\[\to \]2, B\[\to \]3, C\[\to \]1 |
| D. | A\[\to \]2, B\[\to \]1, C\[\to \]3 |
| Answer» C. A\[\to \]2, B\[\to \]3, C\[\to \]1 | |
| 46. |
Income and expenditure account is prepared by |
| A. | a partnership film |
| B. | a bank |
| C. | a trading concern |
| D. | a non-trading concern |
| Answer» E. | |
| 47. |
Expenditure of Get Well hospital is ` 2, 50,000 and surplus credited to capital fund is ` 80,000. Income of the hospital is |
| A. | ` 330000 |
| B. | ` 170000 |
| C. | ` 250000 |
| D. | None of these |
| Answer» B. ` 170000 | |
| 48. |
Excess of income over expenditure is ......... capital fund in the balance sheet. |
| A. | added to |
| B. | deducted from |
| C. | not added to |
| D. | not deducted from |
| Answer» B. deducted from | |
| 49. |
Credit balance in the income and expenditure account indicates excess of...........over.......... |
| A. | expenditure, income |
| B. | cash income, cash expenses |
| C. | income, expenditure |
| D. | cash expenses, cash income |
| Answer» D. cash expenses, cash income | |
| 50. |
An amount or property received 'by a non-profit organisation as stated by the will of a deceased person is commonly referred to as |
| A. | endownment |
| B. | honorarium |
| C. | legacy |
| D. | donation |
| Answer» D. donation | |