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.
| 401. |
Depletion method of depreciation is normally applied in case of ............. assets. |
| A. | Wasting |
| B. | intangible |
| C. | Tangible |
| D. | current |
| Answer» B. intangible | |
| 402. |
Ram purchased a computer on 1.04.2010 for ` 600000. He is charging depreciation on written down value method. On 31.03.2011, he sold the computer for ` 165000 and incurred a loss of ` 75000. The rate of depreciation per annum is |
| A. | 10% |
| B. | 15% |
| C. | 60% |
| D. | 25% |
| Answer» D. 25% | |
| 403. |
A machine was bought at a cost of ` 500000 on 1.1.2002. During its life of 10 years, it will be depreciated on SLM basis. On 31.12.2009, the machine was sold for ` 150000. Find out the profit/loss. |
| A. | Loss of ` 150000 |
| B. | Profit of ` 50000 |
| C. | Profit of ` 100000 |
| D. | Profit of ` 150000 |
| Answer» C. Profit of ` 100000 | |
| 404. |
Which method of depreciation is effective if repairs and maintenance cost of an asset increase as it grows old? |
| A. | Straight line method |
| B. | Sinking fund method |
| C. | Annuity method |
| D. | Reducing balance method |
| Answer» E. | |
| 405. |
Useful life of an asset can be described as |
| A. | The period over which a depreciable asset is expected to be used by the enterprise |
| B. | The number of production or similar units expected to be obtained from the use of the asset by the enterprise |
| C. | 10 years |
| D. | Both [a] and [b] |
| Answer» E. | |
| 406. |
The WDV of an asset after three years of depreciation on the reducing balance method @ 15% per annum is ` 49130. What was its original value? |
| A. | ` 40000 |
| B. | ` 80000 |
| C. | ` 45000 |
| D. | ` 70250 |
| Answer» C. ` 45000 | |
| 407. |
Under annuity method, asset account is debited by |
| A. | Interest account |
| B. | Depreciation fund account |
| C. | Sinking fund account |
| D. | None of the above |
| Answer» B. Depreciation fund account | |
| 408. |
For providing depreciation on leasehold property, the appropriate method of depreciation is |
| A. | Replacement method |
| B. | Revaluation method |
| C. | Fixed instalment method |
| D. | Diminishing balance method |
| Answer» D. Diminishing balance method | |
| 409. |
Decrease in the value of fixed assets is termed as |
| A. | Expenses |
| B. | Depreciation |
| C. | Profit |
| D. | Loss |
| Answer» C. Profit | |
| 410. |
An unfavourable balance means |
| A. | Debit balance in cash book |
| B. | Debit balance of assets account |
| C. | Credit balance in pass book |
| D. | Debit balance in pass book |
| Answer» E. | |
| 411. |
One, who draws the bill is called |
| A. | Debtor |
| B. | drawee |
| C. | Payee |
| D. | drawer |
| Answer» E. | |
| 412. |
Which of the following methods of valuation of closing stock is followed in joint venture accounting? |
| A. | Net realisable value |
| B. | Cost price |
| C. | Least of cost or net realisable value |
| D. | None of the above |
| Answer» E. | |
| 413. |
Memorandum joint venture account is prepared |
| A. | When each co-venturerss keeps record of all the transactions himself |
| B. | When each co-venturer keeps records of their own joint venture transactions |
| C. | When separate set of books are maintained |
| D. | None of the above |
| Answer» C. When separate set of books are maintained | |
| 414. |
When unsold stock is taken away by a co-venturer, then ............. account is debited. |
| A. | Joint stock |
| B. | joint venture |
| C. | Joint bank |
| D. | co-venturer's capital |
| Answer» E. | |
| 415. |
The abnormal loss on consignment is credited to |
| A. | Consignment account |
| B. | Profit and loss account |
| C. | Consignees personal account |
| D. | All of the above |
| Answer» B. Profit and loss account | |
| 416. |
If a bill is drawn on 1st January, 2010 and accepted on 08th January, 2010, if the term of bill is 30 days, what will be the due date? |
| A. | 7th January, 2010 |
| B. | 11th February, 2010 |
| C. | 10th February, 2010 |
| D. | None of the above |
| Answer» D. None of the above | |
| 417. |
Bill receivable account is a |
| A. | Nominal account |
| B. | Real account |
| C. | Personal account |
| D. | None of the above |
| Answer» D. None of the above | |
| 418. |
A promissory note does not require |
| A. | Acceptance |
| B. | discounting |
| C. | Nothing |
| D. | None of these |
| Answer» D. None of these | |
| 419. |
In case of sudden holiday, maturity date falls on |
| A. | On the same day |
| B. | previous day |
| C. | Next following day |
| D. | None of the above |
| Answer» D. None of the above | |
| 420. |
A promissory not is drawn by.....in favour of his..... |
| A. | Drawer, drawee |
| B. | payer, payee |
| C. | Maker, payee |
| D. | drawer, payee |
| Answer» D. drawer, payee | |
| 421. |
If due date of a bill is public holiday then its due date will be |
| A. | Following day |
| B. | preceding day |
| C. | Same day |
| D. | one month later |
| Answer» C. Same day | |
| 422. |
Fees paid in cash to notary public is charged by |
| A. | drawer |
| B. | Drawee |
| C. | Holder of bill of exchange |
| D. | None of the above |
| Answer» D. None of the above | |
| 423. |
When a bill is renewed, then entry will be |
| A. | No entry will be passed |
| B. | Entry for renewal of bill |
| C. | Entries for cancellation of old bill and renewal of bill |
| D. | None of the above |
| Answer» D. None of the above | |
| 424. |
On 1.8.05 X draws a bill on Y "for 30 days after sight"- The date of acceptance is 8.8.05 The due date of the bill will be |
| A. | 8.9.05 |
| B. | 10.9.05 |
| C. | 11.9.05 |
| D. | 9.9.05 |
| Answer» C. 11.9.05 | |
| 425. |
A promissory note is an instrument in writing containing an .........undertaking. |
| A. | Conditional |
| B. | unconditional |
| C. | Both [a] and [b] |
| D. | Either [a] or [b] |
| Answer» C. Both [a] and [b] | |
| 426. |
A bill not paid by drawee on due date is called |
| A. | Nothing of bill |
| B. | Renewable of bill |
| C. | Dishonour of bill |
| D. | Discounting of bill |
| Answer» D. Discounting of bill | |
| 427. |
Which account is to be credited when an endorsed cheque is dishonoured? |
| A. | Debtor |
| B. | Bill receivable |
| C. | Endorsee |
| D. | Payee |
| Answer» D. Payee | |
| 428. |
The consignor sends ......... along with the consigned goods to the consignee. |
| A. | Account sales |
| B. | perform a invoice |
| C. | Both [a] and [b] |
| D. | None of the above |
| Answer» C. Both [a] and [b] | |
| 429. |
What is the nature of joint venture with co-venture's account? |
| A. | Nominal account |
| B. | Real account |
| C. | Personal account |
| D. | None of the above |
| Answer» D. None of the above | |
| 430. |
Consignment account is prepared in the books of |
| A. | Consignor |
| B. | consignee |
| C. | Third party |
| D. | none of these |
| Answer» B. consignee | |
| 431. |
Which of the following is depleted? |
| A. | Land |
| B. | Goodwill |
| C. | Machinery |
| D. | Quarries |
| Answer» E. | |
| 432. |
Match the following List I List II A. ......is difference between old ratio and new ratio. 1. Dissolution B. Dissolution of partnership among all the partners of firm is called ...... of firm. 2. Admitted C. A minor can be ...... to the benefits 3. Duties D. Every partner is bound to attend diligently to his..... 4. Sacrificing ratio Codes |
| A. | A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 |
| B. | A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 |
| C. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| D. | A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 |
| Answer» C. A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 | |
| 433. |
Arrange the steps of adjustment of partners capital on the admission of a new partner in sequence. 1. Calculate the adjusted capital of old partners. 2. Calculate the proportionate capital of new partner. 3. All adjustments should be made. 4. Calculate the total capital of new firm. Codes |
| A. | 3, 1, 4, 2 |
| B. | 3, 4, 1, 2 |
| C. | 4, 3, 2, 1 |
| D. | 3, 4, 2, 1 |
| Answer» D. 3, 4, 2, 1 | |
| 434. |
Which of the following is not the purpose of admission of a partner? |
| A. | For procuring additional capital |
| B. | For acquiring additional managerial skill |
| C. | For progress of the firm |
| D. | For increasing competition |
| Answer» E. | |
| 435. |
Particular partnership is a.................. partnership. |
| A. | permanent |
| B. | incidental |
| C. | temporary |
| D. | accidental |
| Answer» D. accidental | |
| 436. |
Partnership for a fixed period automatically comes to an end after |
| A. | the partners agreed |
| B. | the expiry of that period |
| C. | the permission of the court granted |
| D. | All of the above |
| Answer» C. the permission of the court granted | |
| 437. |
The partnership in which there is no agreement among the partners as to its duration is called. |
| A. | partnership for a fixed period |
| B. | partnership at will |
| C. | particular partnership |
| D. | All of the above |
| Answer» C. particular partnership | |
| 438. |
A manager of a firm is given 1/4th share in profit. He is a |
| A. | partner by operation of law |
| B. | partner by implied agreement |
| C. | partner by status |
| D. | servant of the firm |
| Answer» C. partner by status | |
| 439. |
Limited partnership means |
| A. | number of partners is limited |
| B. | liability of some partners is limited |
| C. | liability of all partners is limited |
| D. | limited amount of capital can be raised |
| Answer» C. liability of all partners is limited | |
| 440. |
R, M and P are partners. P dies in an accident. Now |
| A. | the firm would be dissolved |
| B. | the partnership would be dissolved |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» C. Both (a) and (b) | |
| 441. |
The balance of the current account of a partner is shown in |
| A. | trading account |
| B. | balance sheet |
| C. | income statement |
| D. | All of the above |
| Answer» C. income statement | |
| 442. |
A partner can transfer, his proprietory interest |
| A. | with the unanimous consent of other partners |
| B. | under the influence of other partners |
| C. | independently |
| D. | None of the above |
| Answer» B. under the influence of other partners | |
| 443. |
The business of the firm may be carried on by |
| A. | all partners |
| B. | any one of them acting for all |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» D. None of the above | |
| 444. |
In case of partnership, partner is |
| A. | an agent |
| B. | the principal |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» D. None of the above | |
| 445. |
The agreement may be |
| A. | express |
| B. | implied |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» D. None of the above | |
| 446. |
Realisation account is a |
| A. | Personal account |
| B. | nominal account |
| C. | Real account |
| D. | None of the above |
| Answer» C. Real account | |
| 447. |
Partners current accounts are opened when their capital accounts are |
| A. | fixed |
| B. | fluctuating |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» B. fluctuating | |
| 448. |
A and B are partners sharing profits in the ratio of 7:3. X was admitted on 3/7 share in the profits, the new profit sharing ratio of the partners will be |
| A. | 0.587673611111111 |
| B. | 0.293784722222222 |
| C. | 7: 6: 7 |
| D. | 0.210451388888889 |
| Answer» B. 0.293784722222222 | |
| 449. |
A and B axe partners in the ratio of 2:1. They admit C for 1/4th share who contributes ` 3000 for this share of goodwill. The total value of goodwill of the firm is |
| A. | ` 3000 |
| B. | ` 12000 |
| C. | ` 9000 |
| D. | ` 15000 |
| Answer» C. ` 9000 | |
| 450. |
Provision for bad and doubtful debts appearing in the books at the time of dissolution of firm is transferred to |
| A. | capital accounts of the partners |
| B. | debtors account |
| C. | bad debts account |
| D. | realisation account |
| Answer» E. | |