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.
| 501. |
Accounting standards in India are issued by |
| A. | Reserve Bank of India |
| B. | Central Government |
| C. | State Government |
| D. | Institute of Chartered Accountants of India |
| Answer» E. | |
| 502. |
Which of the following will not be recorded in the books of accounts? |
| A. | Paid rent for office premises ` 10000 |
| B. | Paid commission for purchase of raw material ` 200 |
| C. | Purchased goods on credit ` 15000 for resale |
| D. | Resignation of manager Mr. Mohan |
| Answer» E. | |
| 503. |
Which of the following is not an internal user of financial statements? |
| A. | Lenders |
| B. | Managers |
| C. | Board of Directors |
| D. | Employees |
| Answer» B. Managers | |
| 504. |
The basic function of financial accounting is to |
| A. | Record all business transactions |
| B. | Interpret financial data |
| C. | Assist the management in performing functions effectively |
| D. | None of the above |
| Answer» B. Interpret financial data | |
| 505. |
'Making provisions for bad debts in respect of doubtful debts' is an example of which accounting convention? |
| A. | Disclosure |
| B. | Consistency |
| C. | Materially |
| D. | Conservatism |
| Answer» E. | |
| 506. |
Which convention implies that the accounting practices should remain the same from year-to-year? |
| A. | Disclosure |
| B. | Consistency |
| C. | Materiality |
| D. | Conservatism |
| Answer» C. Materiality | |
| 507. |
The term 'matching' means |
| A. | Appropriate association of related revenues and expenses |
| B. | Appropriate association of relation losses and gains |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» B. Appropriate association of relation losses and gains | |
| 508. |
The accounting principles can be classified into |
| A. | Accounting concepts |
| B. | Accounting conventions |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» D. None of the above | |
| 509. |
Accrual system of accounting is also known as |
| A. | Mercantile system of accounting |
| B. | Ordinary system of accounting |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» B. Ordinary system of accounting | |
| 510. |
Which branch of accounting aims to ascertain the cost of a product and to help the management in the control of cost? |
| A. | Management Accounting |
| B. | Financial Accounting |
| C. | Cost Accounting |
| D. | None of the above |
| Answer» D. None of the above | |
| 511. |
Companies must prepare financial statements atleast yearly due to the assumption of |
| A. | Periodicity |
| B. | cost-benefit |
| C. | Conservatism |
| D. | matching |
| Answer» B. cost-benefit | |
| 512. |
The assumption that a business enterprise will not be sold or liquidated in the near future is known as |
| A. | Monetary unit |
| B. | going concern |
| C. | Conservatism |
| D. | periodicity |
| Answer» C. Conservatism | |
| 513. |
Revenue is generally recognised at the point of sale. Which principle is applied herein? |
| A. | Consistency |
| B. | Cost principle |
| C. | Revenue recognition |
| D. | None of these |
| Answer» D. None of these | |
| 514. |
The first stage of double entry system is |
| A. | Original records |
| B. | posting |
| C. | Classification |
| D. | trial Balance |
| Answer» B. posting | |
| 515. |
Which one of the following is not an objective of accounting? |
| A. | To keep systematic records |
| B. | To make profitable investment |
| C. | To ascertain profit or loss |
| D. | To know financial position |
| Answer» C. To ascertain profit or loss | |
| 516. |
Business transactions are recorded first of all in the |
| A. | Journal |
| B. | Ledger |
| C. | Trial Balance |
| D. | Final Accounts |
| Answer» B. Ledger | |
| 517. |
Which institution issues guideline regarding uniformity in accounting practices? |
| A. | Cabinet Committee on Accounting |
| B. | Audit and Accounts Committee |
| C. | Institute of Chartered Accountants of India |
| D. | Institute of coast and Accounting |
| Answer» D. Institute of coast and Accounting | |
| 518. |
Which of the following concept would help in realisation of revenue generation? |
| A. | Accrual concept |
| B. | Objectivity concept |
| C. | Matching concept |
| D. | Realisation concept |
| Answer» D. Realisation concept | |
| 519. |
The financial health of a business, can be explained best in term of |
| A. | Profit and loss account |
| B. | Trade accounts |
| C. | Balance sheet |
| D. | Sundary accounts |
| Answer» D. Sundary accounts | |
| 520. |
Which of the following legislation requires companies to follow accrual basis of accounting? |
| A. | Accrual Base Accounting Act, 2007 |
| B. | Company Act, 2013 |
| C. | Indian Accounting Legislation Act, 2009 |
| D. | Audit and Accounts Act, 2010 |
| Answer» C. Indian Accounting Legislation Act, 2009 | |
| 521. |
Cost of goods sold = ` 2000000, Gross Profit = 20% on sales. Calculate the amount of Sales. |
| A. | ` 1825000 |
| B. | ` 2500000 |
| C. | ` 2400000 |
| D. | ` 3000000 |
| Answer» C. ` 2400000 | |
| 522. |
A person started a business with capital of ` 50000 and he takes loan from his relative ` 5000. Profit for the year is ` 20000 and drawings ` 4000. What will be the amount of closing capital? |
| A. | ` 60000 |
| B. | ` 51000 |
| C. | ` 56000 |
| D. | ` 66000 |
| Answer» E. | |
| 523. |
Sales =.........+ Gross Profit |
| A. | Purchase |
| B. | Opening stock |
| C. | Cost of goods sold |
| D. | None of the above |
| Answer» D. None of the above | |
| 524. |
Receipts and payments account does not show |
| A. | rent paid during the year |
| B. | rent received during the year |
| C. | outstanding rent |
| D. | prepaid rent |
| Answer» D. prepaid rent | |
| 525. |
Capital fund of non-profit organisations represents |
| A. | excess of expenditure over income |
| B. | excess of income over expenditure |
| C. | equality between income and expenditure |
| D. | None of the above |
| Answer» C. equality between income and expenditure | |
| 526. |
Which of the following accounts will not be prepared by a non-profit organisation? |
| A. | Income arid expenditure account |
| B. | Receipt and payment account |
| C. | Trading and profit & loss account |
| D. | None of the above |
| Answer» D. None of the above | |
| 527. |
Receipt and payment account is a summary of |
| A. | income and expenses |
| B. | cash receipts and payments |
| C. | balances of various ledger accounts |
| D. | None of the above |
| Answer» C. balances of various ledger accounts | |
| 528. |
Final accounts of not-for-profit organisation includes |
| A. | receipt and payment account |
| B. | trading and profit and loss account |
| C. | income and expenditure account |
| D. | Both (1) and (3) |
| Answer» E. | |
| 529. |
The receipt and payment account is ...... account |
| A. | nominal |
| B. | real |
| C. | personal |
| D. | None of these |
| Answer» C. personal | |
| 530. |
Goodwill is |
| A. | Floating asset |
| B. | wasting asset |
| C. | Fictitious asset |
| D. | intangible asset |
| Answer» C. Fictitious asset | |
| 531. |
Outstanding wages account is shown in the balance sheet on the ......... side. |
| A. | Assets |
| B. | liabilities |
| C. | Both and |
| D. | None of the above |
| Answer» C. Both and | |
| 532. |
If discount allowed appears in the trial balance, it will be shown at the debit side of |
| A. | profit and loss account |
| B. | trading account |
| C. | balance sheet |
| D. | None of the above |
| Answer» B. trading account | |
| 533. |
The business man purchased goods for ` 2000 but at present, its market value is ` 2500. It will be valued at |
| A. | ` 2000 |
| B. | ` 4500 |
| C. | ` 2500 |
| D. | ` 500 |
| Answer» B. ` 4500 | |
| 534. |
Closing stock is added to the |
| A. | purchase |
| B. | freight |
| C. | sales |
| D. | opening stock |
| Answer» D. opening stock | |
| 535. |
Opening stock is added to the |
| A. | sales |
| B. | freight |
| C. | sales return |
| D. | purchase |
| Answer» E. | |
| 536. |
'Amount from sale of goods' is an example of |
| A. | revenue receipt |
| B. | capital receipt |
| C. | recurring receipt |
| D. | None of the above |
| Answer» B. capital receipt | |
| 537. |
'Conversion into cash of any asset except stock' is a |
| A. | revenue receipt |
| B. | capital receipt |
| C. | recurring receipt |
| D. | None of the above |
| Answer» C. recurring receipt | |
| 538. |
If a revenue expenditure is incurred during the year but paid as advance for the coming years, such expenditure is called |
| A. | Capital expenditure |
| B. | Revenue expenditure |
| C. | Deferred revenue expenditure |
| D. | All of the above |
| Answer» D. All of the above | |
| 539. |
All the accounts pertaining to revenue and expenditure are |
| A. | Real accounts |
| B. | nominal accounts |
| C. | Personal accounts |
| D. | None of the above |
| Answer» C. Personal accounts | |
| 540. |
For an engineering concern, the expenditure on plant and machinery is a ......... expenditure, if the plant is meant for resale. |
| A. | Capital |
| B. | deferred revenue |
| C. | Revenue |
| D. | None of these |
| Answer» D. None of these | |
| 541. |
Capital expenditure is incurred |
| A. | to prevent unforeseen losses |
| B. | to improve the earning capacity of the business |
| C. | to maintain goodwill in the market |
| D. | None of the above |
| Answer» C. to maintain goodwill in the market | |
| 542. |
Capital expenditure are also called |
| A. | deferred revenue expenditure |
| B. | recurring expenditure |
| C. | fixed expenditure |
| D. | balance sheet expenditure |
| Answer» E. | |
| 543. |
The capital expenditure is shown in |
| A. | journal |
| B. | trading account |
| C. | profit and loss account |
| D. | balance sheet |
| Answer» E. | |
| 544. |
Net profit or net loss is shown by |
| A. | trading account |
| B. | balance sheet |
| C. | profit and loss account |
| D. | All of the above |
| Answer» D. All of the above | |
| 545. |
What is the amount of closing stock when opening stock is ` 4500, cost of goods sold is ` 54500, purchase is ` 60000? |
| A. | ` 19000 |
| B. | ` 9000 |
| C. | ` 10000 |
| D. | Nil |
| Answer» D. Nil | |
| 546. |
What is the amount of gross profit when opening stock is ` 1200, closing stock is ` 750, sales is ` 30000, cost of goods sold is ` 22750? |
| A. | ` 6500 |
| B. | ` 7700 |
| C. | ` 7250 |
| D. | ` 5300 |
| Answer» D. ` 5300 | |
| 547. |
If cost of goods sold is ` 1116000 and sales is these ` 1240000 then the amount of gross profit will be |
| A. | ` 130000 |
| B. | ` 124000 |
| C. | ` 240000 |
| D. | ` 84000 |
| Answer» C. ` 240000 | |
| 548. |
Which of the following statements is not correct in relation to non-profit organisation? |
| A. | A non-profit organisation never undertakes trading activities |
| B. | A public library is a non-profit seeking accounting entity |
| C. | Revenue items are shown in the income and expenditure account |
| D. | Donations received for construction of an auditorium by a club is to be credited to a separate building fund account |
| Answer» B. A public library is a non-profit seeking accounting entity | |
| 549. |
At the beginning of an accounting year, a club has assets worth ` 19000, liabilities ` 5000 and ` 1800 as the debit balance of the income and expenditure account. The opening capital is |
| A. | ` 18000 |
| B. | ` 15800 |
| C. | ` 11200 |
| D. | ` 24800 |
| Answer» C. ` 11200 | |
| 550. |
Income and expenditure account shows a balance of |
| A. | cash in hand |
| B. | capital account |
| C. | net profit |
| D. | excess of revenue over expenditure or vice-versa |
| Answer» E. | |