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.
| 51. |
"The surplus of non-profit organisations are distributed among members". The above statement is |
| A. | False |
| B. | True |
| C. | Partly true |
| D. | Partly false |
| Answer» B. True | |
| 52. |
The income and expenditure account reveals |
| A. | surplus or deficiency |
| B. | cash in hand |
| C. | capital fund |
| D. | Both (1) and (2) |
| Answer» B. cash in hand | |
| 53. |
Final account is |
| A. | Ledger |
| B. | Account |
| C. | Statement |
| D. | Account and Statement |
| Answer» E. | |
| 54. |
Non-profit organisations prepare all of the following accounts except the |
| A. | income and expenditure account |
| B. | receipt and payment account |
| C. | balance sheet |
| D. | income statement |
| Answer» E. | |
| 55. |
Income and Expenditure account includes figures related to |
| A. | Previous year |
| B. | Current year |
| C. | future year |
| D. | All of these |
| Answer» C. future year | |
| 56. |
Receipt and payment account is |
| A. | a nominal account |
| B. | a real account |
| C. | a personal account |
| D. | a statement |
| Answer» C. a personal account | |
| 57. |
Non-trading institutions prepare |
| A. | Profit and Loss Account |
| B. | Manufacturing Account |
| C. | Income and Expenditure Account |
| D. | All of the above |
| Answer» D. All of the above | |
| 58. |
Receipts and payments account records receipts and payments of |
| A. | Capital nature only |
| B. | revenue nature only |
| C. | capital and revenue nature both |
| D. | None of the above |
| Answer» B. revenue nature only | |
| 59. |
Calculate gross profit if it is 20% on sales and cost of goods is ` 150000 |
| A. | ` 24000 |
| B. | ` 37500 |
| C. | ` 20000 |
| D. | None of the above |
| Answer» C. ` 20000 | |
| 60. |
Bad debt is shown on the debit side of the |
| A. | balance sheet |
| B. | trading account |
| C. | profit and loss account |
| D. | None of the above |
| Answer» D. None of the above | |
| 61. |
Which one of the following is not a current asset? |
| A. | Debtors |
| B. | Prepaid expense |
| C. | Stock |
| D. | Office furniture |
| Answer» E. | |
| 62. |
Direct expenses are debited to |
| A. | balance sheet |
| B. | trading account |
| C. | profit and loss account |
| D. | None of the above |
| Answer» C. profit and loss account | |
| 63. |
The debit side of the profit and loss account shows |
| A. | expenses and losses |
| B. | incomes |
| C. | losses |
| D. | profits |
| Answer» B. incomes | |
| 64. |
If the expense is recorded as 'salaries and wages', it will go to |
| A. | balance sheet |
| B. | trading account |
| C. | profit and loss account |
| D. | None of the above |
| Answer» D. None of the above | |
| 65. |
If the expense is recorded as 'wages and salaries', it will go to |
| A. | balance sheet |
| B. | Trading account |
| C. | Profit and loss account |
| D. | None of the above |
| Answer» C. Profit and loss account | |
| 66. |
Wages is shown on the .......... side of the trading account. |
| A. | Debit |
| B. | credit |
| C. | None of these |
| D. | All of these |
| Answer» B. credit | |
| 67. |
The revenue loss is usually accounted for in the |
| A. | previous years profit and loss account |
| B. | current years profit and loss account |
| C. | current years balance sheet |
| D. | All of the above |
| Answer» C. current years balance sheet | |
| 68. |
Sales are equal to |
| A. | Cost of goods sold + Profit |
| B. | Cost of goods sold - Gross profit |
| C. | Gross profit - Cost of goods sold |
| D. | Cost of goods sold + Closing Stock |
| Answer» B. Cost of goods sold - Gross profit | |
| 69. |
Expenditure incurred on extension to an existing property is treated as..... |
| A. | revenue loss |
| B. | capital profit |
| C. | revenue expenditure |
| D. | capital expenditure |
| Answer» E. | |
| 70. |
The revenue expenditure is shown in |
| A. | Profit and loss account |
| B. | Trading account |
| C. | Balance sheet |
| D. | All of the above |
| Answer» B. Trading account | |
| 71. |
Those business expenses which affect directly the profits for the accounting period are called |
| A. | Revenue expenditure |
| B. | Capital expenditure |
| C. | Deferred revenue expenditure |
| D. | None of the above |
| Answer» B. Capital expenditure | |
| 72. |
Revenue expenditure is incurred |
| A. | to maintain the earning capacity of the business |
| B. | to prevent losses |
| C. | to maintain the reputation of the enterprise |
| D. | for satisfying the needs of the business |
| Answer» B. to prevent losses | |
| 73. |
Gross profit or gross loss is shown by |
| A. | trading account |
| B. | balance sheet |
| C. | profit and loss account |
| D. | All of the above |
| Answer» B. balance sheet | |
| 74. |
The excess of the credit side of profit and loss account would indicate |
| A. | profit |
| B. | net loss |
| C. | loss |
| D. | None of these |
| Answer» B. net loss | |
| 75. |
Which of the following equation is correct? |
| A. | Closing Stock + Purchases - Opening Stock - Cost of Goods Sold = Zero |
| B. | Opening Stock - Closing Stock - Purchases + Cost of Goods Sold = Zero |
| C. | Purchases + Opening Stock - Closing Stock - Cost of Goods Sold = Zero |
| D. | Cost of Goods Sold - Closing Stock - Purchases - Opening Stock = Zero |
| Answer» D. Cost of Goods Sold - Closing Stock - Purchases - Opening Stock = Zero | |
| 76. |
What is the purchase amount when opening stock is ` 3500, closing stock is ` 1500 and cost of goods sold is ` 22000? |
| A. | ` 20000 |
| B. | ` 27000 |
| C. | ` 24000 |
| D. | ` 17000 |
| Answer» B. ` 27000 | |
| 77. |
What is the amount of gross profit or loss when cost of goods sold is ` 7900, sales worth ` 11000 and purchases are ` 3000? |
| A. | ` 8000 |
| B. | ` 3100 |
| C. | ` 4900 |
| D. | ` 100 (loss) |
| Answer» C. ` 4900 | |
| 78. |
What is the amount of purchase when opening stock is ` 10000, closing stock is ` 8000, sales are ` 110000 and cost of goods sold is ` 80000? |
| A. | ` 78000 |
| B. | ` 82000 |
| C. | ` 30000 |
| D. | ` 92000 |
| Answer» B. ` 82000 | |
| 79. |
Which of the following is debited to Trading Account? |
| A. | Rent |
| B. | Wages and Salaries |
| C. | Commission |
| D. | Salaries and Wages |
| Answer» C. Commission | |
| 80. |
Entrance fee received (to be capitalised) ` 500, capital fund ` 40100. What amount will be posted in the income and expenditure account? |
| A. | ` 500 |
| B. | ` 40600 |
| C. | ` 40100 |
| D. | None of these |
| Answer» E. | |
| 81. |
Tournament expense should be |
| A. | Posted as expenditure |
| B. | Deducted from tournament fund |
| C. | Recorded as deferred revenue expenditure |
| D. | Recorded as capital asset |
| Answer» C. Recorded as deferred revenue expenditure | |
| 82. |
Represents the excess of assets over liabilities. |
| A. | Revenue fund |
| B. | Revenue expenditure |
| C. | Capital fund |
| D. | None of the above |
| Answer» D. None of the above | |
| 83. |
Expenditure is shown on which side of the income and expenditure account. |
| A. | Credit |
| B. | Debit |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» C. Both (a) and (b) | |
| 84. |
The closing balance of the receipts and payments account represents. |
| A. | closing cash in hand or cash at bank |
| B. | opening cash in hand |
| C. | Both and |
| D. | None of the above |
| Answer» B. opening cash in hand | |
| 85. |
If income is ` 16000 and deficit debited to capital fund is ` 4300, expenditure is |
| A. | ` 20400 |
| B. | ` 20300 |
| C. | ` 43500 |
| D. | ` 24400 |
| Answer» C. ` 43500 | |
| 86. |
Subscription received in advance during the accounting year is |
| A. | an income |
| B. | an expense |
| C. | an asset |
| D. | a liability |
| Answer» E. | |
| 87. |
The financial position of a business is ascertained by preparing |
| A. | trading account |
| B. | manufacturing account |
| C. | Balance sheet |
| D. | trial balance |
| Answer» C. Balance sheet | |
| 88. |
Expenditure which results in acquisition of a permanent asset is a |
| A. | capital expenditure |
| B. | deferred revenue expenditure |
| C. | revenue expenditure |
| D. | None of the above |
| Answer» B. deferred revenue expenditure | |
| 89. |
A trial balance as at 31st December, 2002 contains the following information 12% bank loan ` 40000, interest paid as ` 3800. Interest debited to the profit and loss account is |
| A. | ` 44000 |
| B. | ` 5000 |
| C. | ` 4800 |
| D. | ` 1000 |
| Answer» D. ` 1000 | |
| 90. |
Fs capital on 1st January, 2002 is ` 45000 interest on drawings is ` 5000 interest on capital is ` 2000 drawings are ` 14000, profit for the year is ` 15000. His capital as on 31.12.2002 is |
| A. | ` 67000 |
| B. | ` 47000 |
| C. | ` 43000 |
| D. | ` 69000 |
| Answer» D. ` 69000 | |
| 91. |
Income tax paid by Mr. A amounts to ` 3000. Its accounting treatment is |
| A. | to be credited to the profit and loss account |
| B. | to be ignored altogether |
| C. | to be deducted from capital |
| D. | to be debited to the trading account |
| Answer» D. to be debited to the trading account | |
| 92. |
Drawings are deducted from |
| A. | sales |
| B. | purchases |
| C. | return outward |
| D. | capital |
| Answer» C. return outward | |
| 93. |
Assets are held in the business for the purpose of |
| A. | earning revenue |
| B. | resale |
| C. | conversion into cash |
| D. | appreciation in the value |
| Answer» B. resale | |
| 94. |
Which of the following is a capital expenditure? |
| A. | Carriage paid on goods purchased |
| B. | Payment of compensation to a discharged employee |
| C. | Cost of formation of a new company |
| D. | Legal expenses incurred for abuse of trademark |
| Answer» D. Legal expenses incurred for abuse of trademark | |
| 95. |
Balance sheet shows |
| A. | Gross profit of financial period |
| B. | Net profit of financial period |
| C. | Financial position on a particular data |
| D. | All real, personal and nominal accounts |
| Answer» D. All real, personal and nominal accounts | |
| 96. |
The cost of abnormal idle time is transferred to |
| A. | Costing manufacturing A/c |
| B. | Costing profit and loss A/c |
| C. | Costing trading A/c |
| D. | None of the above |
| Answer» C. Costing trading A/c | |
| 97. |
Method to measure labour turnover is |
| A. | Separation method |
| B. | Replacement method |
| C. | Flux method |
| D. | All of the above |
| Answer» E. | |
| 98. |
A manufacturer uses 7500 units of a material 'Z' per year. The material cost is ` 15 per unit and carrying cost is 40% per annum of average inventory cost. The cost of placing order is ` 36. Calculate EOQ and number of orders placed per annum. |
| A. | 250 units, 30 times |
| B. | 300 units, 25 times |
| C. | 500 units, 15 times |
| D. | 150 units, 50 times |
| Answer» C. 500 units, 15 times | |
| 99. |
ABC analysis is a technique of |
| A. | Cost control |
| B. | budgetary control |
| C. | Inventory control |
| D. | None of the above |
| Answer» D. None of the above | |
| 100. |
In case of inter-departmental issue of material ......is issued. |
| A. | credit note |
| B. | Debit note |
| C. | Material transfer note |
| D. | Stores requisition note |
| Answer» E. | |