MCQOPTIONS
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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.
| 451. |
On dissolution, all assets are transferred to realization account at |
| A. | book value |
| B. | market value |
| C. | cost or market value, whichever is less |
| D. | None of the above |
| Answer» B. market value | |
| 452. |
In partnership, aim of a joint life policy is to |
| A. | make profit on the death of a partner |
| B. | make sufficient cash available to settle the claims of heirs of the deceased partner |
| C. | strengthen the financial position of the firm |
| D. | None or the above |
| Answer» C. strengthen the financial position of the firm | |
| 453. |
In the absence of an agreement to the contrary, it is implied that old partners will contribute to new partners share of profit in the ratio of |
| A. | capital |
| B. | old profit sharing ratio |
| C. | sacrificing ratio |
| D. | equal proportion |
| Answer» C. sacrificing ratio | |
| 454. |
In the realisation account prepared on the dissolution of a firm, if debit side is more than the credit side, then it indicates |
| A. | profit |
| B. | loss |
| C. | liabilities are mere than assets |
| D. | assets are more than liabilities |
| Answer» C. liabilities are mere than assets | |
| 455. |
A partnership firm can be registered at |
| A. | the time of establishment |
| B. | the time of separation of a partner |
| C. | within the year of commencement of the business |
| D. | any time after the establishment of the firm |
| Answer» E. | |
| 456. |
Which of the following factor does not include in a partnership firm? |
| A. | Confidentiality |
| B. | Individual management |
| C. | Continuous existence |
| D. | Unlimited liabilities |
| Answer» C. Continuous existence | |
| 457. |
A partnership firm arranges capital |
| A. | through floating share in the market |
| B. | through floating debentures in the capital market |
| C. | through mutually employed capital |
| D. | All of the above |
| Answer» D. All of the above | |
| 458. |
Profit sharing is ...... characteristic of partnership. |
| A. | an essential |
| B. | the only objective |
| C. | a final result |
| D. | not well defined |
| Answer» B. the only objective | |
| 459. |
A minor in a firm |
| A. | cannot be made a partner |
| B. | can be made a partner with the consent of his parents |
| C. | can be made a partner as adults are made |
| D. | can be made a partner only if it is mentioned in the contract |
| Answer» D. can be made a partner only if it is mentioned in the contract | |
| 460. |
Who cannot become a partner in the firm? |
| A. | A minor |
| B. | A married woman |
| C. | A lunatic |
| D. | None of these |
| Answer» D. None of these | |
| 461. |
Who can become the member of a partnership firm? |
| A. | A company |
| B. | An individual |
| C. | A joint Hindu family firm |
| D. | None of the above |
| Answer» C. A joint Hindu family firm | |
| 462. |
A partnership is an association of two or more persons formed to carry on business together for the purpose of |
| A. | earning profit |
| B. | rendering service to the society |
| C. | discharging social responsibility |
| D. | None of the above |
| Answer» B. rendering service to the society | |
| 463. |
A written agreement among partners for mutually conduct of business is called |
| A. | contract |
| B. | deed |
| C. | mutual consent |
| D. | promissory note |
| Answer» C. mutual consent | |
| 464. |
A and B bring capital in the firm according to their profit sharing ratio, i.e. 2:3. If A brings ` 50000 as capital, what will be the Bs capital? |
| A. | ` 60000 |
| B. | ` 70000 |
| C. | ` 72500 |
| D. | ` 75000 |
| Answer» E. | |
| 465. |
X and Y share profits and losses in the ratio of 3: 2. They admit Z for \[\frac{1}{2}th\]share in profit. The new ratio of distribution of profits will be |
| A. | \[3:2:1\] |
| B. | \[3:2:2\] |
| C. | \[4:1:1\] |
| D. | \[3:2:3\] |
| Answer» B. \[3:2:2\] | |
| 466. |
A partner having no stocks in the firm is known as |
| A. | inactive partner |
| B. | nominal partner |
| C. | minor partner |
| D. | actual partner |
| Answer» B. nominal partner | |
| 467. |
A group of 20 persons doing business without any registration, then it will be called |
| A. | partnership |
| B. | public company |
| C. | private company |
| D. | illegal association |
| Answer» B. public company | |
| 468. |
Partnership for a specific purpose is known as |
| A. | general partnership |
| B. | specific partnership |
| C. | voluntary partnership |
| D. | limited partnership |
| Answer» C. voluntary partnership | |
| 469. |
Partnership firm is in existence only on |
| A. | the will of partnership |
| B. | the will of management |
| C. | Both and |
| D. | None of the above |
| Answer» B. the will of management | |
| 470. |
If a partnership firm is not registered, then |
| A. | firm cannot file a case against any partner |
| B. | no partner can file a case against firm |
| C. | no partner can file a case against any other partner |
| D. | All of the above |
| Answer» E. | |
| 471. |
Under partnership business, a partner can transfer his interest |
| A. | Voluntarily |
| B. | With the consent of other partners |
| C. | Under the pressure of other partners |
| D. | None of the above |
| Answer» C. Under the pressure of other partners | |
| 472. |
Match the following List I List II A. Admission 1. Gaining ratio B. Retirement 2. Equal ratio C. Revaluation 3. Sacrificing ratio D. No partnership deed 4. Old ratio Codes |
| A. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| B. | A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 |
| C. | A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 |
| D. | A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 |
| Answer» E. | |
| 473. |
J, K, L and M are equal partners. J, K and M died in a rail accident. The accident results into |
| A. | dissolution of firm |
| B. | dissolution of partnership |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» D. None of the above | |
| 474. |
A firm is dissolved when |
| A. | the term is over |
| B. | on the death of partner |
| C. | on the retirement of a partner |
| D. | in the case of death of all but one partner |
| Answer» E. | |
| 475. |
Which of the following statements is/are correct regarding the nature of accounting standard? I. Accounting standard are in consonance with the current law of the land. II. It facilitate reliability and comparability to financial statements. Select the correct answer using the codes given below. |
| A. | Only I |
| B. | only II |
| C. | Both I and II |
| D. | Neither I nor II |
| Answer» D. Neither I nor II | |
| 476. |
Which of the following is repercussions of not following the standard accounting practices? |
| A. | Acceptability |
| B. | Non-Comparability |
| C. | Readability |
| D. | Feasibility |
| Answer» C. Readability | |
| 477. |
Which of the following statements is/are correct? I. Cost concept is based on historical cost. II. Cost concept is highly objective in nature. Select the correct answer using the codes given below. |
| A. | Only I |
| B. | Only II |
| C. | Both I and II |
| D. | None of the above |
| Answer» D. None of the above | |
| 478. |
Accounting concepts are based on |
| A. | Certain assumptions |
| B. | Certain facts and figures |
| C. | Certain accounting records |
| D. | Government guidelines |
| Answer» B. Certain facts and figures | |
| 479. |
Which of the following is not an accounting concept? |
| A. | Matching Concepts |
| B. | Dual Aspect Concepts |
| C. | True and Fair Concepts |
| D. | Going Concern Concepts |
| Answer» D. Going Concern Concepts | |
| 480. |
Accrual concept relates to the determination of |
| A. | Expenses and losses |
| B. | Incomes and gains |
| C. | Expenses and incomes |
| D. | Losses |
| Answer» D. Losses | |
| 481. |
As per Revenue Recognition Concept, revenue is deemed to be realised |
| A. | When purchase order is received from the purchaser |
| B. | When goods are delivered to the purchaser |
| C. | When the title of the goods has been transferred to the purchaser |
| D. | When cash is received from the purchaser |
| Answer» D. When cash is received from the purchaser | |
| 482. |
Consider the following statements I. The entity concept of accounting is not applicable to sole trading concerns and partnership concerns. II. Assets are to be shown in the balance sheet at their replacement cost on liquidation. III. Money measurement concept takes into account changes in the value of monetary unit. IV. When a creditor is paid, this result in decrease of one asset and a corresponding increase in other asset. Which of the statements given above are Correct? |
| A. | I and II |
| B. | II and III |
| C. | III and IV |
| D. | None of these |
| Answer» E. | |
| 483. |
The basic concept related to profit and loss account is/are |
| A. | Realisation concept |
| B. | matching concept |
| C. | cost concept |
| D. | Both (a) and (b) |
| Answer» E. | |
| 484. |
Match the following List I List II A. Income and financial position assessed 1. Consistency concept B. Anticipate no profit and provide for all possible losses 2. Going concern concept C. Assets are depreciated on the basis of expected life rather than on the basis of market value 3. Conservatism concept D. The comparison of one accounting period with that in the past is possible 4. Matching concept Codes |
| A. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| B. | A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 |
| 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\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 | |
| 485. |
This is the most scientific, complete and accurate system of accounting |
| A. | Single Entry System |
| B. | Double Entry System |
| C. | Hindustani System |
| D. | Cash System |
| Answer» C. Hindustani System | |
| 486. |
Which one of the following is not a part of accounting process? |
| A. | Recording |
| B. | Classification |
| C. | Distribution |
| D. | Interpretation |
| Answer» D. Interpretation | |
| 487. |
The following accounting standard is applied for providing depreciation. |
| A. | AS 3 |
| B. | AS 4 |
| C. | AS 5 |
| D. | AS 6 |
| Answer» E. | |
| 488. |
Which of the following practices is not in consonance with the convention of conservatism? |
| A. | Creating provision for bad debts |
| B. | Creating provision for discount on creditors |
| C. | Creating provision for discount on debtors |
| D. | Creating provision for tax |
| Answer» C. Creating provision for discount on debtors | |
| 489. |
How many accounting standards have been issued by ICAI? |
| A. | 12 |
| B. | 20 |
| C. | 22 |
| D. | 32 |
| Answer» E. | |
| 490. |
Everything a firm owns, it also owes out to somebody. This co-incidence is explained by the concept. |
| A. | Dual aspect |
| B. | prudence |
| C. | Money measurement |
| D. | revenue recognition |
| Answer» B. prudence | |
| 491. |
If accounting information is based on facts and it is verifiable by documents it has the quality of |
| A. | Relevance |
| B. | understandability |
| C. | Reliability |
| D. | comparability |
| Answer» D. comparability | |
| 492. |
According to AS-6 'Depreciation Accounting', issued by the ICAI, change in method is permitted. |
| A. | Prospectively |
| B. | retrospectively |
| C. | Negatively |
| D. | All of the above |
| Answer» C. Negatively | |
| 493. |
According to which concept, income tax paid by proprietor is debited to drawings account? |
| A. | Conservatism |
| B. | Cost |
| C. | Going concern |
| D. | Entity concept |
| Answer» E. | |
| 494. |
Advance received from customers is not taken as sale, is based on |
| A. | Money measurement concept |
| B. | Conservatism concept |
| C. | Accrual concept |
| D. | Consistency concept |
| Answer» D. Consistency concept | |
| 495. |
Provision for bad debts is made due to the principle of |
| A. | Conservatism |
| B. | materiality |
| C. | Consistency |
| D. | full disclosure |
| Answer» B. materiality | |
| 496. |
A change in accounting policy is justified to |
| A. | Comply with law |
| B. | Comply with accounting standard |
| C. | Ensure more appropriate presentation of financial statements |
| D. | All of the above |
| Answer» E. | |
| 497. |
AS 1 disclosure should form a part of |
| A. | The auditors report |
| B. | The directors report |
| C. | The final accounts |
| D. | The books of accounts |
| Answer» D. The books of accounts | |
| 498. |
In Accounting Standard 1, fundamental accounting assumptions should |
| A. | Be disclosed, if not followed |
| B. | Be disclosed in notes to accounts |
| C. | Always be disclosed |
| D. | be disclosed in auditors report |
| Answer» B. Be disclosed in notes to accounts | |
| 499. |
AS 8 on accounting for research and development |
| A. | is applicable only to listed companies |
| B. | is replaced by AS 26 |
| C. | is mandatory for research institutions |
| D. | is still in use |
| Answer» C. is mandatory for research institutions | |
| 500. |
The purpose of accounting standard is to |
| A. | Harmonise accounting policies |
| B. | Eliminate the non-comparability of financial statements |
| C. | Improve reliability of financial statements |
| D. | All of the above |
| Answer» E. | |