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.
| 251. |
Which one of the following is not a part of the Memorandum of Association? |
| A. | Name Clause |
| B. | Object Clause |
| C. | Capital Clause |
| D. | Rules and Bylaws |
| Answer» E. | |
| 252. |
Interest paid on debentures is shown in |
| A. | The profit and loss account |
| B. | The profit and loss appropriation account |
| C. | The liability side of the balance sheet under the head 'Current Liabilities' |
| D. | The balance sheet by adding to the debentures account |
| Answer» B. The profit and loss appropriation account | |
| 253. |
Balance of share forfeited account is a |
| A. | Capital reserve |
| B. | ratio reserve |
| C. | Revenue reserve |
| D. | None of the above |
| Answer» B. ratio reserve | |
| 254. |
When shares are forfeited, the share capital account is debited with the |
| A. | Nominal value of shares |
| B. | Paid-up value of shares |
| C. | called-up value of shares |
| D. | Maximum value of shares |
| Answer» D. Maximum value of shares | |
| 255. |
Debentures are shown in the balance sheet of a company under the head |
| A. | Secured loans |
| B. | current liabilities |
| C. | Unsecured loans |
| D. | current assets |
| Answer» B. current liabilities | |
| 256. |
Which one of the following in not a characteristic of a company? |
| A. | Voluntary association |
| B. | Perpetual existence |
| C. | Unlimited liability |
| D. | Common seal |
| Answer» D. Common seal | |
| 257. |
Equity shareholders are |
| A. | Customers of company |
| B. | Owners of company |
| C. | Creditors of company |
| D. | Debtors of company |
| Answer» C. Creditors of company | |
| 258. |
Which of the following statements is/are correct regarding the accrual basis of accounting? I. The method of accounting take in the real and gross value of revenue. II. It show dismal profit and loss of company. Select the correct answers using the codes given below. |
| A. | Only I |
| B. | Only II |
| C. | I and II |
| D. | Neither I nor II |
| Answer» B. Only II | |
| 259. |
Which of the following statements is/are correct? I. Balance sheet is the best tools to show the financial health of a business. II. Profit and loss accounts considered as the tool to measure net worth of business. Select the correct answer using the codes given below. |
| A. | Only I |
| B. | Only II |
| C. | Both I and II |
| D. | None of these |
| Answer» B. Only II | |
| 260. |
Accounting standards can override statute. |
| A. | True |
| B. | False |
| C. | Incomplete statement |
| D. | None of the above |
| Answer» C. Incomplete statement | |
| 261. |
. covers procedural aspects of accounting work and includes record keeping function. |
| A. | Accounting |
| B. | Book-keeping |
| C. | Posting |
| D. | Journalising |
| Answer» C. Posting | |
| 262. |
Which of the following is the characteristic of accounting principle? |
| A. | Objectivity |
| B. | Value neutrality |
| C. | Consistency |
| D. | Hypothesis |
| Answer» B. Value neutrality | |
| 263. |
Which of the following is not the conventions under accounting? |
| A. | Materiality |
| B. | Consistency |
| C. | Prodence |
| D. | Objectivity |
| Answer» C. Prodence | |
| 264. |
Which of the following is not the limitation of accounting? |
| A. | Based on accounting conventions |
| B. | Evidence in legal matters |
| C. | Incomplete information |
| D. | Omission of qualitative information |
| Answer» C. Incomplete information | |
| 265. |
Select the odd one out in relation to users of accounting information. |
| A. | Debtors |
| B. | officers |
| C. | Managers |
| D. | board of directors |
| Answer» B. officers | |
| 266. |
The underlying accounting concept which necessitates amortisation of intangible assets is/are |
| A. | Realisation concept |
| B. | matching concept |
| C. | Cost concept |
| D. | Both b and c |
| Answer» C. Cost concept | |
| 267. |
Window dressing of accounts means |
| A. | Presenting accounts in beautiful manner |
| B. | Showing more losses to avoid income tax |
| C. | Showing more profits to attract investment |
| D. | All of the above |
| Answer» D. All of the above | |
| 268. |
Generally, we ignore paise and show the round figures in financial statements. This is in line with |
| A. | Consistency concept |
| B. | Materiality concept |
| C. | Conservatism concept |
| D. | Realisation concept |
| Answer» C. Conservatism concept | |
| 269. |
As per accrual concept, which of the following is not true? |
| A. | Revenue - Profit = Expenses |
| B. | Collection from customers - Expenses = Profit |
| C. | Revenue = Profit + Expenses |
| D. | None of the above |
| Answer» C. Revenue = Profit + Expenses | |
| 270. |
The concept of conservatism when applied to the balance sheet, results in |
| A. | Overstatement of capital |
| B. | Overstatement of assets |
| C. | Understatement of capital |
| D. | Understatement of assets |
| Answer» E. | |
| 271. |
According to the prudence concept, closing stock shall be valued at cost or ......... whichever is less. |
| A. | Net realisable value |
| B. | market price |
| C. | Accounting price |
| D. | standard price |
| Answer» B. market price | |
| 272. |
Outstanding expenses are included in the profit and loss account at the end of the year according to which concept? |
| A. | Matching |
| B. | Accrual |
| C. | Going concern |
| D. | Full disclosure |
| Answer» C. Going concern | |
| 273. |
In the accounting period, according to which concept, cost incurred to acquire an asset is shown in the balance sheet? |
| A. | Cost concept |
| B. | Business concept |
| C. | Realisation concept |
| D. | Accounting period concept |
| Answer» B. Business concept | |
| 274. |
What is the objective of conservatism? |
| A. | Consider all losses |
| B. | Consider all incomes and losses |
| C. | Anticipate losses but not profits |
| D. | None of the above |
| Answer» D. None of the above | |
| 275. |
Fundamental accounting assumptions are |
| A. | Going concern, conservatism, accrual |
| B. | Going concern, matching, consistency |
| C. | Going concern, consistency, accrual |
| D. | Going concern, entity, periodicity |
| Answer» D. Going concern, entity, periodicity | |
| 276. |
The determination of the amount of provision of bad debts is an accounting |
| A. | Estimate |
| B. | parameter |
| C. | Policy |
| D. | None of the above |
| Answer» B. parameter | |
| 277. |
Which of the following is an example of an accounting policy? |
| A. | Valuation of investments |
| B. | Realisation |
| C. | Materiality |
| D. | Dual aspect |
| Answer» B. Realisation | |
| 278. |
IASB stands for |
| A. | International Accounting Standards Board |
| B. | Indian Accounting Standards Boards |
| C. | International Accounting Standards Bulletin |
| D. | Indian Accounting Standards Bulletin |
| Answer» B. Indian Accounting Standards Boards | |
| 279. |
Accounting standards .......... the statue. |
| A. | Can over-ride |
| B. | may over-ride |
| C. | Cannot over-ride |
| D. | None of the above |
| Answer» D. None of the above | |
| 280. |
Accounting standard for fixed assets is |
| A. | AS10 |
| B. | AS 11 |
| C. | AS 12 |
| D. | AS 22 |
| Answer» B. AS 11 | |
| 281. |
AS 2 is on |
| A. | Revenue recognition |
| B. | Disclosure of accounting policies |
| C. | Valuation of inventories |
| D. | Depreciation accounting |
| Answer» D. Depreciation accounting | |
| 282. |
The system of recording transactions based on dual aspect concept is called |
| A. | Double account system |
| B. | Single account system |
| C. | Double entry system |
| D. | Single entry system |
| Answer» D. Single entry system | |
| 283. |
The accounting standards are mandatory for |
| A. | Partnership concerns |
| B. | Charitable organisations |
| C. | Companies |
| D. | Sole proprietorship |
| Answer» D. Sole proprietorship | |
| 284. |
How many accounting standards in India are issued by ICAI? |
| A. | 30 |
| B. | 31 |
| C. | 32 |
| D. | 29 |
| Answer» D. 29 | |
| 285. |
Two primary qualitative characteristics of financial statements are |
| A. | Materiality and reliability |
| B. | Understandability and materiality |
| C. | Relevance and reliability |
| D. | Relevance and understandability |
| Answer» D. Relevance and understandability | |
| 286. |
Contingent liabilities are shown in footnote of balance sheet as per which concept? |
| A. | Disclosure |
| B. | Dual aspect |
| C. | Realisation |
| D. | Materiality |
| Answer» B. Dual aspect | |
| 287. |
The direct advantages of accounting do not include |
| A. | Preparation of financial statements |
| B. | Ascertainment of profit or loss |
| C. | Competitive advantage |
| D. | Information to interested groups |
| Answer» D. Information to interested groups | |
| 288. |
Financial statements are a part of |
| A. | book-keeping |
| B. | accounting |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» C. Both (a) and (b) | |
| 289. |
The main objective (s) of book-keeping is/are |
| A. | Complete recording of transactions |
| B. | Ascertainment of financial effect on the business |
| C. | Analysis and interpretation of data |
| D. | Both (a) and (b) |
| Answer» E. | |
| 290. |
AS 26 is related to |
| A. | Intangible assets |
| B. | investments |
| C. | Depreciation |
| D. | net profit |
| Answer» B. investments | |
| 291. |
Which of the following Accounting Standards is related to fixed assets? |
| A. | AS7 |
| B. | AS 8 |
| C. | AS 9 |
| D. | AS 10 |
| Answer» E. | |
| 292. |
Book-keeping is mainly concerned with |
| A. | Designing for systems of recording, classifying and summarizing recorded data |
| B. | Recording financial data relating to business operations |
| C. | Interpreting data for internal and external users |
| D. | All of the above |
| Answer» C. Interpreting data for internal and external users | |
| 293. |
Dual aspect concept is based on |
| A. | Single entry book keeping |
| B. | Triple entry system |
| C. | Double entry book keeping |
| D. | None of the above |
| Answer» D. None of the above | |
| 294. |
The common denominator chosen in accounting is |
| A. | Monetary unit |
| B. | Revenue matching |
| C. | Mercantile |
| D. | None of the above |
| Answer» B. Revenue matching | |
| 295. |
Which of the following branch of accounting is concerned with record keeping directed towards the preparation of trial balance, profit and loss account, balance sheet? |
| A. | Management Accounting |
| B. | Cost Accounting |
| C. | Financial Accounting |
| D. | All of the above |
| Answer» D. All of the above | |
| 296. |
The branch of accounting is |
| A. | Management accounting |
| B. | Cost accounting |
| C. | Financial accounting |
| D. | All of the above |
| Answer» E. | |
| 297. |
A business transaction affects |
| A. | At least one account |
| B. | At least two accounts |
| C. | Maximum of two accounts |
| D. | Maximum of three accounts |
| Answer» C. Maximum of two accounts | |
| 298. |
According to a going concern concept, a business is viewed as having |
| A. | a limited life |
| B. | an indefinite life |
| C. | a very long life |
| D. | None of the above |
| Answer» C. a very long life | |
| 299. |
The primary qualities that make accounting information useful for decision-making are |
| A. | Comparability and consistency |
| B. | Materiality and. timeliness |
| C. | Relevance and reliability |
| D. | Reliability and comparability |
| Answer» D. Reliability and comparability | |
| 300. |
'Following the WDV method of depreciating a particular asset year after year'. State the name of the relevant accounting principle applied herein. |
| A. | Conservatism principle |
| B. | Materiality principle |
| C. | Full disclosure principle |
| D. | Consistency principle |
| Answer» E. | |