MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 466 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 251. |
_A credit balance in cash book indicates$? |
| A. | Bank balance |
| B. | Cash at bank |
| C. | Bank overdraft |
| D. | Bank underdraft |
| Answer» D. Bank underdraft | |
| 252. |
_A cash book that is used to record the small payments of cash is generally referred to as$? |
| A. | Simple cash book |
| B. | Two columns cash book |
| C. | Three columns cash book |
| D. | Petty cash book |
| Answer» E. | |
| 253. |
_The most common imprest system is the ______ system$? |
| A. | Petty cash |
| B. | Cash book |
| C. | Cash receipts journal |
| D. | Discount |
| Answer» B. Cash book | |
| 254. |
_Which of the following is the effect on net income if a business decreases its provision for bad debts?$? |
| A. | It will increase net income |
| B. | It will decrease net income |
| C. | No effect |
| D. | It will increase gross profit and net income |
| Answer» B. It will decrease net income | |
| 255. |
_Term 'Credit' means _____ by the business$? |
| A. | Receiving of benefits |
| B. | It has no effect on business |
| C. | Providing benefits |
| D. | It depends upon items |
| Answer» B. It has no effect on business | |
| 256. |
_The value of inventories or stock is figured out at the lower of cost and$? |
| A. | Purchase price |
| B. | Opportunity cost |
| C. | Realizable value |
| D. | Net realizable value |
| Answer» E. | |
| 257. |
_Which of the following is the most common cause of bad debt?$? |
| A. | Debtor refusal to repayment |
| B. | Debtor left the country |
| C. | Debtor committed a crime |
| D. | Debtor declared to be a bankrupt |
| Answer» E. | |
| 258. |
A current asset that is convertible to cash within 3 months can be referred to as$? |
| A. | Cash asset |
| B. | Operating asset |
| C. | Intangible assets |
| D. | Cash equivalent |
| Answer» E. | |
| 259. |
Which of the following financial statements shows the movement of cash and cash equivalents during an accounting period?$? |
| A. | Income statement |
| B. | Balance sheet |
| C. | Cash flow statement |
| D. | Statement of changes in equity |
| Answer» D. Statement of changes in equity | |
| 260. |
Financial statements mainly help in$? |
| A. | Assumption of economic events |
| B. | Anticipation of economic events |
| C. | Recording of economic events |
| D. | Communication of economic events |
| Answer» E. | |
| 261. |
In the calculation of depreciation, all of the following items are actually estimates except:$? |
| A. | Useful life |
| B. | Residual value |
| C. | Historical cost |
| D. | Salvage value |
| Answer» D. Salvage value | |
| 262. |
Land on lease should be shown in Blance sheet contrary to the fact that the company does not own that piece of land is the implementation of which accounting concept?$? |
| A. | Matchig concept |
| B. | Accrual concept |
| C. | Prudence concept |
| D. | Substance over form concept |
| Answer» E. | |
| 263. |
American companies prepare their financial statement in Dollars whereas Japanese companies produce financial statement in Yen. This is an example of:$? |
| A. | Stable monetary unit concept |
| B. | Unit of measurement concept |
| C. | Money value concept |
| D. | Current swap concept |
| Answer» C. Money value concept | |
| 264. |
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as$? |
| A. | Current assets |
| B. | Fixed assets |
| C. | Intangible assets |
| D. | Investments |
| Answer» B. Fixed assets | |
| 265. |
The parties to joint venture are called$? |
| A. | Friends |
| B. | Principal and agent |
| C. | Partners |
| D. | Co-ventures |
| Answer» E. | |
| 266. |
Revenue expenditures are recorded in the$? |
| A. | Manufacturing account |
| B. | Trading account |
| C. | Profit & loss account |
| D. | All of the above |
| Answer» E. | |
| 267. |
Profit is a part of$? |
| A. | Income |
| B. | Owner's capital |
| C. | Assets |
| D. | All of the above |
| Answer» C. Assets | |
| 268. |
Profit & Loss account is prepared for a period of one year by following$? |
| A. | Periodicity concept |
| B. | Business entity concept |
| C. | Accrual concept |
| D. | None of the above |
| Answer» B. Business entity concept | |
| 269. |
The owner of consignment stock is$? |
| A. | Consignor |
| B. | Consignee |
| C. | Debtors |
| D. | None of the above |
| Answer» B. Consignee | |
| 270. |
Bills receivable is a$? |
| A. | Intangible fixed asset |
| B. | Tangible fixed asset |
| C. | Current asset |
| D. | Investment |
| Answer» D. Investment | |
| 271. |
Difference of total of debit and credit side of the trial balance is transferred to$? |
| A. | Suspense A/c |
| B. | Difference A/c |
| C. | P & L A/c |
| D. | Trading A/c |
| Answer» B. Difference A/c | |
| 272. |
The accounting equation is based on$? |
| A. | Dual aspect |
| B. | Business entity |
| C. | Going concern concept |
| D. | All of the above |
| Answer» B. Business entity | |
| 273. |
The installation expenses for a new machinery will be debited to$? |
| A. | Cash A/c |
| B. | Profit & Loss A/c |
| C. | Machinery A/c |
| D. | Installation expenses A/c |
| Answer» D. Installation expenses A/c | |
| 274. |
Dividends are usually paid as a percentage of$? |
| A. | Net profit |
| B. | Authorized share capital |
| C. | Called up capital |
| D. | Paid up capital |
| Answer» E. | |
| 275. |
Loss leads to reduction in$? |
| A. | Capital |
| B. | Income |
| C. | Liabilities |
| D. | None of the above |
| Answer» B. Income | |
| 276. |
If the opening inventory of a business is undercast, it will$? |
| A. | Increase gross profit and decrease net profit |
| B. | Decrease gross profit as well as net profit |
| C. | Increase value of assets |
| D. | Increase gross profit as well as net profit |
| Answer» E. | |
| 277. |
Under cash basis of accounting, revenue is recognized when$? |
| A. | Sale is made |
| B. | Cash is received |
| C. | Goods are delivered |
| D. | Services are rendered |
| Answer» C. Goods are delivered | |
| 278. |
Reserve capital means$? |
| A. | Part of subscribed uncalled capital |
| B. | Accumulated profit |
| C. | Part of Capital Reserve |
| D. | Part of Capital Redemption Reserve |
| Answer» B. Accumulated profit | |
| 279. |
Del-credere Commission is allowed to cover$? |
| A. | All types losses |
| B. | Abnormal loss |
| C. | Normal loss |
| D. | None of the above |
| Answer» E. | |
| 280. |
Overriding commission is generally calculated on$? |
| A. | Cash sale only |
| B. | Total sales exceeding invoice value/cost |
| C. | Credit sales |
| D. | None of the above |
| Answer» C. Credit sales | |
| 281. |
Which of the following subsidiary books serves the purpose of ledger too, in addition to the recording of accounting transaction?$? |
| A. | Purchases book |
| B. | Sales book |
| C. | Bills receivable book |
| D. | Cash Book |
| Answer» E. | |
| 282. |
A document sent to customer when he returns the goods is called$? |
| A. | Promissory note |
| B. | Invoice |
| C. | Credit note |
| D. | Debit note |
| Answer» D. Debit note | |
| 283. |
Which of the following appears in the profit and loss appropriation account?$? |
| A. | Interest on debentures |
| B. | Dividend |
| C. | Provision for taxation |
| D. | Provision for bad debts |
| Answer» C. Provision for taxation | |
| 284. |
Right shares are the shares$? |
| A. | Issued by a newly formed company |
| B. | Legally issued to the public at large |
| C. | Offered to the existing equity shareholders |
| D. | That have a right of redemption |
| Answer» D. That have a right of redemption | |
| 285. |
The persons who sign Articles ans Memorandum of the company and contribute in the initial share capital of the company are called$? |
| A. | Subscribers |
| B. | Shareholders |
| C. | Managers |
| D. | Directors |
| Answer» B. Shareholders | |
| 286. |
Which of the following account will be credited when the goods are purchased on cash?$? |
| A. | Stock account |
| B. | Cash account |
| C. | Supplier account |
| D. | Work in progress account |
| Answer» C. Supplier account | |
| 287. |
Which of the following can be distributed among the shareholders?$? |
| A. | Capital reserve |
| B. | General reserve |
| C. | Revaluation reserve |
| D. | All of the above |
| Answer» C. Revaluation reserve | |
| 288. |
In which of the following interim dividend is treated?$? |
| A. | In profit and loss account |
| B. | In profit and loss appropriation account |
| C. | On the asset side of the Balance sheet |
| D. | In trading account |
| Answer» C. On the asset side of the Balance sheet | |
| 289. |
Authorized share capital is also known as$? |
| A. | Registered capital |
| B. | Issued capital |
| C. | Paid up capital |
| D. | Called up capital |
| Answer» B. Issued capital | |
| 290. |
Outsider's claim against the assets of the business is called$? |
| A. | Liability |
| B. | Expense |
| C. | Income |
| D. | Capital |
| Answer» B. Expense | |
| 291. |
Money spent to acquire or upgrade physical assets is known as$? |
| A. | Revenue expense |
| B. | Capital expense |
| C. | Administrative expense |
| D. | Operating expense |
| Answer» C. Administrative expense | |
| 292. |
Which one of the following is NOT true about capital expenditure?$? |
| A. | Creates future benefits |
| B. | Incurred to acquire fixed assets |
| C. | Incurred to increase the economic life of existing fixed assets |
| D. | Reduce the profit of the concern |
| Answer» E. | |
| 293. |
Double entry accounting system includes$? |
| A. | Accrual accounting only |
| B. | Cash accounting only |
| C. | Both cash and accrual accounting |
| D. | None of the above |
| Answer» D. None of the above | |
| 294. |
A decrease in value of a fixed asset due to age, wear and tear is known as$? |
| A. | Depreciation |
| B. | Accumulated depreciation |
| C. | Appreciation |
| D. | Written Down Value (WDV) |
| Answer» B. Accumulated depreciation | |
| 295. |
The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the asset, is termed as$? |
| A. | Appreciation |
| B. | Depreciation |
| C. | Fluctuation |
| D. | None of the above |
| Answer» C. Fluctuation | |
| 296. |
Which of the following is (are) type(s) of Public Limited Companies?$? |
| A. | Listed companies |
| B. | Non listed companies |
| C. | Private limited companies |
| D. | Both listed and non listed companies |
| Answer» E. | |
| 297. |
Prepaid expenses are considered as$? |
| A. | Asset |
| B. | Liability |
| C. | Loss |
| D. | Capital |
| Answer» B. Liability | |
| 298. |
In which of the following order, data is entered into the Journal?$? |
| A. | Alphabetical order |
| B. | Numeric order |
| C. | Bullets order |
| D. | Chronological order |
| Answer» E. | |
| 299. |
The concept of 'separate entity' is applicable to which of the following types of businesses?$? |
| A. | Sole proprietorship |
| B. | Corporation |
| C. | Partnership |
| D. | All of the above |
| Answer» E. | |
| 300. |
Which of the following is NOT an example of intangible assets?$? |
| A. | Franchise rights |
| B. | Goodwill |
| C. | Patents |
| D. | Land |
| Answer» E. | |