MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Fixing the value of an employee depending upon his productivity, promotability transferability and retainability is the core of the |
| A. | Certainty equivalent model |
| B. | Stochastic reward valuation model |
| C. | Human asset multiplier model |
| D. | Present value of future earnings model |
| Answer» C. Human asset multiplier model | |
| 2. |
Which of the following statement is wrong? |
| A. | Consignor is the owner of the consignment stock |
| B. | Del-credre commission is allowed by consignor to protect himself from bad debts |
| C. | Proportionate consignors expenses are added up with consignment stock |
| D. | All proportionate consignee's expenses will be added up for valuation of consignment stock |
| Answer» E. | |
| 3. |
A machine of ` 3000 was sold for ` 4200. Depreciation provision to date was ` 400 and commission paid to selling agent was ` 420 and wages paid to workers for removing the machine was ` 30. Profit on sale of machine will be |
| A. | ` 1200 |
| B. | ` 1000 |
| C. | ` 1150 |
| D. | None of the above |
| Answer» D. None of the above | |
| 4. |
Annuity method is designed for which of the following? |
| A. | Leases |
| B. | Intangibles |
| C. | Fixed assets |
| D. | Any of the above |
| Answer» B. Intangibles | |
| 5. |
Single entry system cannot be a maintained by |
| A. | Joint stock company |
| B. | Partnership A/c |
| C. | Sole-tradership A/c |
| D. | All of the above |
| Answer» B. Partnership A/c | |
| 6. |
In single entry system only accounts are opened |
| A. | Personal A/c |
| B. | Real A/c |
| C. | Nominal A/c |
| D. | Real and Nominal A/c |
| Answer» B. Real A/c | |
| 7. |
In single entry system profit is calculate as follow |
| A. | Opening Capital + Drawing + Fresh Capital - Ending capital |
| B. | Capital at the end - Drawing - Fresh capital - Opening capital |
| C. | Capital at the end + Drawing - Fresh capital - Opening capital |
| D. | None of the above |
| Answer» D. None of the above | |
| 8. |
A machinery is purchased for ` 15000 on 1st April, 2005 and depreciation @ 10% per annum is provided. Calculate the amount of difference in depreciation as per SLM and WDV basis in the year 2006-07. |
| A. | ` 150 |
| B. | ` 1000 |
| C. | Nil |
| D. | ` 200 |
| Answer» B. ` 1000 | |
| 9. |
A mine was taken on lease for ` 20000000. Its total production capacity is 400000 metric tonnes. What will be the depreciation in 2007, if it produced 40000 metric tonnes in 2007? |
| A. | ` 10 lakhs |
| B. | ` 20 lakhs |
| C. | ` 50 lakhs |
| D. | None of these |
| Answer» C. ` 50 lakhs | |
| 10. |
If the rate of depreciation is same, then the amount of depreciation under straight line method vis-a-vis written down value method will be |
| A. | Equal in all years |
| B. | Equal in first year but lower in subsequent years |
| C. | Equal in first year but higher in subsequent years |
| D. | lower in first year but equal in subsequent years |
| Answer» D. lower in first year but equal in subsequent years | |
| 11. |
A Ltd purchased a machine on 01.01.2003 for ` 120000. Installation expenses were ` 30000. Residual value after 5 years was ` 5000. On 01.07.2003, expenses for repair were incurred to the extent of ` 2000. Depreciation is provided @ 10% per annum under written down value method. Total depreciation after 2 years will be |
| A. | ` 25000 |
| B. | ` 13000 |
| C. | ` 10500 |
| D. | ` 28500 |
| Answer» E. | |
| 12. |
Original cost = ` 100000, life = 5 years, expected salvage value = ` 5000, rate of depreciation per annum = ` |
| A. | 0.2 |
| B. | 0.195 |
| C. | 0.19 |
| D. | 0.194 |
| Answer» D. 0.194 | |
| 13. |
Which of the following is not true with regard to fixed assets? |
| A. | They are acquired for using them in the conduct of business operations |
| B. | They are not meant for resale to earn profit |
| C. | They can easily be converted into cash |
| D. | Depreciation at specified rates is to be charged on most of the fixed assets |
| Answer» D. Depreciation at specified rates is to be charged on most of the fixed assets | |
| 14. |
Under Diminishing Balance Method, depreciation is calculated on |
| A. | Original cost |
| B. | Written down value |
| C. | Scrap value |
| D. | Last value of the asset |
| Answer» C. Scrap value | |
| 15. |
The main objective of providing depreciation is |
| A. | To reduce the profit of the business |
| B. | To increases the expenses of the business |
| C. | To reduce tax burden |
| D. | To calculate true profit |
| Answer» E. | |
| 16. |
Which method of Depreciation is must suitable in the case of mineral deposits? |
| A. | Depletion method |
| B. | Revaluation method |
| C. | Annuity method |
| D. | None of the above |
| Answer» B. Revaluation method | |
| 17. |
In bills of exchange if the payment is made before Average Due Date, the debtor is allowed |
| A. | Rebate |
| B. | Interest |
| C. | Commission |
| D. | Discount |
| Answer» B. Interest | |
| 18. |
When acceptor becomes insolvent, the drawer debits |
| A. | Bank account |
| B. | Bill receivable account |
| C. | Acceptors account |
| D. | Bill payable account |
| Answer» D. Bill payable account | |
| 19. |
Match the following List I List II A. Straight line method 1. \[1-\sqrt{\frac{Residual\text{ }Value}{Cost\,of\,asset}}\times 100\] B. Diminishing method 2. \[\frac{n(n+1)}{2}\] C. Sum of years digit method 3. Depreciable amount \[\times \frac{Production\text{ }during\,the\text{ }period}{Estimated\text{ }total\,Production}\] D. Production units method 4. \[\frac{Cost\text{ }of\text{ }asset-Scrap\text{ }value}{Useful\text{ }life}\] Codes |
| A. | A\[\to \]4, B\[\to \]1, C\[\to \]2, 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\[\to \]1, B\[\to \]4, C\[\to \]2, D\[\to \]3 |
| Answer» B. A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 | |
| 20. |
The cost of a machine is ` 55000 and its residual value is ` 5000. According to the straight line method the annual depreciation at the rate of 10% will be |
| A. | ` 5500 |
| B. | ` 6000 |
| C. | ` 500 |
| D. | ` 500 |
| Answer» D. ` 500 | |
| 21. |
Depreciation does not arise in the value of this asset |
| A. | Goodwill |
| B. | furniture |
| C. | Machinery |
| D. | plant |
| Answer» B. furniture | |
| 22. |
Which one of the following is not a cause of depreciation? |
| A. | Wear and tear |
| B. | Efflux of time |
| C. | Obsolescence |
| D. | Inflation |
| Answer» E. | |
| 23. |
Depreciation is the process of |
| A. | Allocation of cost of asset to the period of its life |
| B. | Verification of assets |
| C. | Assets valuation |
| D. | Decreasing the value of asset |
| Answer» B. Verification of assets | |
| 24. |
Which method of depreciation takes into account the element of interest on capital outlay? |
| A. | Depletion method |
| B. | Annuity method |
| C. | SLM method |
| D. | WDV method |
| Answer» C. SLM method | |
| 25. |
Obsolescence means decline in the value due to |
| A. | fall in the market price |
| B. | new technology, innovations and inventions |
| C. | physical wear and tear |
| D. | efflux of time |
| Answer» C. physical wear and tear | |
| 26. |
Under the straight line method of charging depreciation, the amount of depreciation |
| A. | remains constant every year |
| B. | Decreases every year |
| C. | Increases every year |
| D. | is not certain |
| Answer» B. Decreases every year | |
| 27. |
The drawer of a bill of exchange is a |
| A. | Debtor |
| B. | banker |
| C. | Creditor |
| D. | holder |
| Answer» D. holder | |
| 28. |
Depreciation is a process of |
| A. | Valuation of an asset |
| B. | Distribution of costs |
| C. | Valuation and distribution of assets |
| D. | None of the above |
| Answer» D. None of the above | |
| 29. |
When memorandum joint venture method is followed in the books of X, joint venture with Y A/c will be credited with...........for amount received by X. |
| A. | Y |
| B. | cash |
| C. | Sales |
| D. | debtor |
| Answer» C. Sales | |
| 30. |
Joint venture is a...........account. |
| A. | Personal |
| B. | nominal |
| C. | Real |
| D. | capital |
| Answer» C. Real | |
| 31. |
Joint venture accounting follows which concept? |
| A. | Accrual concept |
| B. | Cash basis concept |
| C. | Going concern concept |
| D. | Cost concept |
| Answer» C. Going concern concept | |
| 32. |
If no del-credre commission is paid to the consignee............ account will be debited for credit sale. |
| A. | Consignment |
| B. | Consignee's |
| C. | Consignor's |
| D. | Consignment debtor's |
| Answer» E. | |
| 33. |
Consignment account is a |
| A. | Real account |
| B. | trading account |
| C. | Nominal account |
| D. | personal account |
| Answer» D. personal account | |
| 34. |
Over-riding commission is calculated on |
| A. | Cash sales |
| B. | Total sales |
| C. | Credit sales |
| D. | Credit sales less cash sales |
| Answer» C. Credit sales | |
| 35. |
The stock lying unsold with the consignee belongs to |
| A. | consignor |
| B. | Consignee, as he does not bear the risk |
| C. | Both [a] and [b] |
| D. | None of the above |
| Answer» B. Consignee, as he does not bear the risk | |
| 36. |
Account sales indicates |
| A. | The net amount due from consignor to consignee by way of commission |
| B. | The net amount due from consignee to consignor |
| C. | Net sales affected by consignee |
| D. | None of the above |
| Answer» C. Net sales affected by consignee | |
| 37. |
Following are the characteristics of joint venture except |
| A. | No common firm name |
| B. | Contribution of funds |
| C. | Sharing of profits/losses |
| D. | None of the above |
| Answer» E. | |
| 38. |
Endorsement of bills means |
| A. | Transfer of right on the bill from the drawer to the creditors |
| B. | Transfer of right on the bill from the creditors to the drawee |
| C. | Transfer of right on the bill from the drawee to the creditors |
| D. | Transfer of right on the bill from the creditors to the drawer |
| Answer» B. Transfer of right on the bill from the creditors to the drawee | |
| 39. |
Indian currency is a |
| A. | Hundi |
| B. | Bill of exchange |
| C. | Promissory note |
| D. | Cheque |
| Answer» D. Cheque | |
| 40. |
The nothing charges levied on dishonour of an endorsed bill by the Notary Public are to be born by |
| A. | drawer of the bill |
| B. | Person responsible for dishonour |
| C. | Endorser of the bill |
| D. | Holder of the bill |
| Answer» C. Endorser of the bill | |
| 41. |
The purpose of accommodation bills is |
| A. | To finance actual purchase or sale of goods |
| B. | When both parties are in need of funds |
| C. | to facilitate trade transmission |
| D. | None of the above |
| Answer» C. to facilitate trade transmission | |
| 42. |
If the bill is accepted and the amount is given before the due date (i.e. maturity), then the bill is said to be |
| A. | Cancelled |
| B. | accepted |
| C. | Retired |
| D. | dishonor |
| Answer» D. dishonor | |
| 43. |
A bill of exchange is drawn on 1st April, 2003 payable after 3 months. The due date of the bill is |
| A. | 1st April, 2003 |
| B. | 30th June, 2003 |
| C. | 4th July, 2003 |
| D. | 1st July, 2003 |
| Answer» D. 1st July, 2003 | |