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.
| 651. |
Purchase consideration can be calculated as |
| A. | Value of Asset - Liabilities Assumed |
| B. | Value of Asset + Liabilities Assumed |
| C. | Liabilities Assumed - Value of Asset |
| D. | Liabilities Assumed + Current Assets |
| Answer» B. Value of Asset + Liabilities Assumed | |
| 652. |
Premium received on debentures is credited to |
| A. | Premium on debentures account |
| B. | Loss on debentures account |
| C. | Securities premium account |
| D. | None of the above |
| Answer» D. None of the above | |
| 653. |
Company will have to pay interest @ .......... on calls-in-advance. |
| A. | 0.07 |
| B. | 0.08 |
| C. | 0.1 |
| D. | 0.12 |
| Answer» E. | |
| 654. |
A company can buy back its |
| A. | Preference shares |
| B. | securities |
| C. | Debentures |
| D. | equity shares |
| Answer» E. | |
| 655. |
Capital reserve is disclosed on the liability side of balance sheet under the head |
| A. | Provisions |
| B. | reserves and surplus |
| C. | Share capital |
| D. | current liabilities |
| Answer» C. Share capital | |
| 656. |
The maximum number of members of a private company limits to |
| A. | 10 |
| B. | 200 |
| C. | 30 |
| D. | 70 |
| Answer» C. 30 | |
| 657. |
In a private company, the minimum number of members must be |
| A. | 1 |
| B. | 2 |
| C. | 5 |
| D. | 10 |
| Answer» C. 5 | |
| 658. |
A joint stock company is |
| A. | an artificial institution |
| B. | a natural person |
| C. | an artificial legal person |
| D. | trust |
| Answer» D. trust | |
| 659. |
For which of the following purposes, share premium can be used? |
| A. | In writing off the discount on debentures of the company |
| B. | In writing off the preliminary expenses of the company |
| C. | In providing for the premium payable on the redemption of preference shares, |
| D. | All of the above |
| Answer» E. | |
| 660. |
When a company issues shares at a premium, the amount of premium may be received by the company |
| A. | Along with application money |
| B. | Along with allotment money |
| C. | Along with calls |
| D. | All of the above |
| Answer» E. | |
| 661. |
Any balance in the share forfeiture account, after all the forfeited shares are reissued, should be |
| A. | Added to the paid-up capital |
| B. | Transferred to the goodwill account |
| C. | Transferred to the capital reserve account |
| D. | None of the above |
| Answer» D. None of the above | |
| 662. |
Debentures can be redeemed by |
| A. | Purchase of own debentures in the open market |
| B. | Converting them into shares |
| C. | Converting them into new class of debentures |
| D. | Any of the above |
| Answer» E. | |
| 663. |
Share premium received by a company can be used for |
| A. | The issue of bonus shares |
| B. | Payment of dividends |
| C. | Remuneration of management |
| D. | Any business purpose |
| Answer» B. Payment of dividends | |
| 664. |
A joint stock company has a |
| A. | Distinct legal entity |
| B. | Perpetual succession |
| C. | Common seal as a substitute of its signature |
| D. | All of the above |
| Answer» E. | |
| 665. |
Premium on redemption of debentures account is |
| A. | Personal account |
| B. | real account |
| C. | Nominal account |
| D. | None of the above |
| Answer» B. real account | |
| 666. |
When shares are forfeited, capital account is debited by |
| A. | Nominal value of shares |
| B. | Paid-up amount on shares |
| C. | called-up amount on shares |
| D. | Forfeited amount |
| Answer» D. Forfeited amount | |
| 667. |
The balance of the share forfeiture account, after the re-issue of forfeited shares, is transferred to |
| A. | Capital redemption reserve account |
| B. | Capital reserve |
| C. | General reserve |
| D. | Profit and loss account |
| Answer» B. Capital reserve | |
| 668. |
The income statement of limited company is known as |
| A. | Manufacturing account |
| B. | Trading and profit and loss account |
| C. | Statement of profit and loss |
| D. | Profit and loss appropriation account |
| Answer» D. Profit and loss appropriation account | |
| 669. |
The balance sheet of a company |
| A. | Must be prepared in the form set out by law |
| B. | May be prepared in any form |
| C. | Should be prepared in any form so as to give a true and fair picture of the state of affairs of the company |
| D. | Atleast be prepared in the form set by law |
| Answer» B. May be prepared in any form | |
| 670. |
Share forfeited account is shown on the liability side of the balance sheet |
| A. | Under the heading Reserves and Surplus |
| B. | By adding to the paid-up capital |
| C. | Under the heading Current Liabilities and Provisions |
| D. | Under the heading Miscellaneous Expenses |
| Answer» C. Under the heading Current Liabilities and Provisions | |
| 671. |
The minimum number of members in a public company must be |
| A. | 2 |
| B. | 5 |
| C. | 7 |
| D. | 50 |
| Answer» D. 50 | |
| 672. |
Secret Reserve will be shown in |
| A. | Profit and Loss Account |
| B. | Profit and Loss Appropriation Account |
| C. | Balance Sheet |
| D. | None of the above |
| Answer» E. | |
| 673. |
This document is not required to be submitted to the registrar at the time of registration of the company |
| A. | Memorandum of Association |
| B. | Association of Articles |
| C. | Prospectus |
| D. | Statutory Declaration |
| Answer» D. Statutory Declaration | |
| 674. |
Promoter of a company is |
| A. | A trustee |
| B. | An agent |
| C. | Trustee and agent both |
| D. | None of the above |
| Answer» E. | |
| 675. |
The risk involved in equity share is...... |
| A. | Maximum |
| B. | minimum |
| C. | Normal |
| D. | None of these |
| Answer» B. minimum | |
| 676. |
Share premium account is shown |
| A. | On the asset side under the heading 'Current Assets' |
| B. | On the liability side under the heading 'Current Liabilities and Provisions' |
| C. | On the liability side under the heading 'Share Capital' |
| D. | On the liability side under the heading 'Reserves and Surplus' |
| Answer» E. | |
| 677. |
The book containing a chronological record of transactions is called |
| A. | Journal |
| B. | ledger |
| C. | Trial balance |
| D. | balance sheet |
| Answer» B. ledger | |
| 678. |
Balance of the cash book is........ |
| A. | Debit and credit |
| B. | debit or credit |
| C. | Debit |
| D. | credit |
| Answer» D. credit | |
| 679. |
Match the following List I List II A. A person who owes something is called 1. Ledger B. Balance sheet is not a .account. 2. Personal accounts C. An obligation of business is......... 3. Debtor D. The rule Debit the receiver and credit the given is for.......... 4. Liability 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\[\to \]1, C\[\to \]4, D\[\to \]2 |
| D. | A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 |
| Answer» D. A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 | |
| 680. |
Arrange the following is chronological order about the accounting transactions and events are recorded in the books. I. Ledger II. Trial Balance III. Journal IV. Subsidiary Books Codes |
| A. | III. IV, I, II |
| B. | III, I, IV, II |
| C. | IV, III, II, I |
| D. | III, I, II, IV |
| Answer» B. III, I, IV, II | |
| 681. |
Machinery purchased on account is recorded in |
| A. | purchase book |
| B. | cash book |
| C. | journal |
| D. | None of the above |
| Answer» D. None of the above | |
| 682. |
The main object of ledger is to ascertain |
| A. | Total sales |
| B. | Total purchases |
| C. | profit or loss of the business |
| D. | Net effect of all the similar nature transactions |
| Answer» E. | |
| 683. |
No Journal entry is made for |
| A. | Brokerage |
| B. | cash discount |
| C. | Trade discount |
| D. | commission |
| Answer» D. commission | |
| 684. |
How many columns are there in a journal? |
| A. | Three |
| B. | Four |
| C. | Five |
| D. | Six |
| Answer» D. Six | |
| 685. |
Credit balance of nominal accounts indicates |
| A. | expenses and losses in business |
| B. | profit of the business |
| C. | income and gains in the business |
| D. | assets of business |
| Answer» B. profit of the business | |
| 686. |
A loss arising due to fire is |
| A. | Real Account |
| B. | Personal Account |
| C. | Suspense Account |
| D. | Nominal Account |
| Answer» E. | |
| 687. |
An entry with more than one debit and credit is called |
| A. | opening entry |
| B. | transfer entry |
| C. | compound entry |
| D. | closing entry |
| Answer» D. closing entry | |
| 688. |
Purchases account is a |
| A. | real account |
| B. | nominal account |
| C. | personal account |
| D. | None of the above |
| Answer» B. nominal account | |
| 689. |
Bank account is a |
| A. | personal account |
| B. | real account |
| C. | nominal account |
| D. | None of the above |
| Answer» B. real account | |
| 690. |
0. r Practice Drawing account of the proprietor is a |
| A. | personal account |
| B. | real account |
| C. | nominal account |
| D. | None of the above |
| Answer» B. real account | |
| 691. |
How long is the period of days of grace in case of a bill |
| A. | four days |
| B. | two days |
| C. | three days |
| D. | one day |
| Answer» D. one day | |
| 692. |
On 1.1.05 X draws a bill on Y for ` 20000. At maturity, Y to renew the bill for 2 months @ 12% pa interest. Amount of interest will be |
| A. | ` 400 |
| B. | ` 300 |
| C. | ` 360 |
| D. | ` 380 |
| Answer» B. ` 300 | |
| 693. |
Which type of error occurs when credit sales is wrongly posted to purchase Day book |
| A. | Error of omission |
| B. | Error of principle |
| C. | Compensatory error |
| D. | Error of commission |
| Answer» E. | |
| 694. |
Total of sales book was understated by ` 200 Rectification entry will be |
| A. | Suspense account debit, sales account credit |
| B. | Debtor account debit, sales account credit |
| C. | Sales account debit, suspense account credit |
| D. | Sales account debit, debtors account credit |
| Answer» B. Debtor account debit, sales account credit | |
| 695. |
A purchase of computer was debited to Office expenditure account. This is an error of |
| A. | Compensatory error |
| B. | omission |
| C. | Commission |
| D. | principle |
| Answer» E. | |
| 696. |
If we take balance as per pass book which of the following will be deducted to get balance as per cash book |
| A. | Interest given by bank |
| B. | Interest charged by bank |
| C. | Cheque deposited but not cleared |
| D. | Payment made by bank understanding instruction |
| Answer» B. Interest charged by bank | |
| 697. |
When the overdraft as per the cash book is made the starting point for making the Bank Reconciliation statement. Interest charged by the bank will be |
| A. | Deducted |
| B. | Added |
| C. | No treatment |
| D. | None of the above |
| Answer» C. No treatment | |
| 698. |
In arriving at adjusted cash balance which of the following is not taken into account |
| A. | amount deposited by our customer directly in our account |
| B. | Errors in the cash book |
| C. | Errors in the pass book |
| D. | All of the above |
| Answer» D. All of the above | |
| 699. |
Overdraft as per cash book means |
| A. | Credit balance in the cash book |
| B. | Credit balances in the bank column of the cash book |
| C. | Decrease in liability |
| D. | None of the above |
| Answer» C. Decrease in liability | |
| 700. |
A Bank Reconciliation statements is |
| A. | A part of pass book |
| B. | A statement prepared by bank |
| C. | Cash book relating to cash column |
| D. | A statement prepared by customer |
| Answer» E. | |