602 + Mcqs in Financial Accounting Page 8 McqOptions

351.	Recoupment of shortworking can be restricted or unrestricted Sol:
A.	True
B.	False
C.	none
D.	all
Answer» B. False

Discussion

352.	_________ is the systematic assignment of number to items to classify and organise them. Sol:
A.	Codification
B.	Coding
C.	Grouping
D.	Recording
Answer» C. Grouping

Discussion

353.	A unique name of symbol or design given to a product or service for easy identification and distinguishing it from the competitor is known as---------
A.	Patent Right
B.	Trade Secret
C.	Brand
D.	all
Answer» D. all

Discussion

354.	The legal ownership of the goods is not transferred till the goods are sold in the case of
A.	Sale
B.	Consignment
C.	Purchase
D.	Sale
Answer» C. Purchase

Discussion

355.	The individual field in the sheet is known as a _________. Sol:
A.	Row
B.	Cell
C.	Column
D.	Group
Answer» C. Column

Discussion

356.	A bundle of rights given by law to the creators of literary, artistic, dramatic, musical workis known asSol:
A.	Patent Rights
B.	Trade Rights
C.	Copyrights
D.	all
Answer» D. all

Discussion

357.	Under debtors system depreciation on fixed asset is:
A.	credited to branch A/c
B.	debited to branch A/c
C.	not shown in branch A/c
D.	shown in debtors A/c
Answer» D. shown in debtors A/c

Discussion

358.	Under debtors system depreciation on fixed asset is________ _______
A.	credited to branch A/c
B.	debited to branch A/c
C.	not shown in branch A/c
D.	shown in debtors A/c
Answer» D. shown in debtors A/c

Discussion

359.	Most organisations use __________ for coding their accounts. Sol:
A.	Block code
B.	Block number
C.	Block group
D.	Block section
Answer» B. Block number

Discussion

360.	An asset which does not have a physical form but has the potential to have a monetaryvalue is known as an -------------Sol:
A.	Fictitious Asset
B.	Physical Asset
C.	Intangible Asset
D.	all
Answer» D. all

Discussion

361.	An exclusive right given to an entity of individual or business firm to manufacture or sellan invention is known asSol:
A.	Copyright
B.	Trade right
C.	Patent right
D.	all
Answer» D. all

Discussion

362.	Goodwill will have no effect on business Financial status Sol:
A.	True
B.	False
C.	none
D.	all
Answer» B. False

Discussion

363.	Creation of company is the first step in Computerized Accounting process. Sol:
A.	True
B.	False
C.	none
D.	all
Answer» B. False

Discussion

364.	A firm s goodwill is not affected by Sol:
A.	Location of the firm
B.	The reputation of the Firm
C.	Better Customer Service
D.	None of the Above
Answer» E.

Discussion

365.	Income and expenses related to the prize fund is shown in: Sol:
A.	Income and Expenditure Account
B.	Assets side of the Balance Sheet
C.	Liabilities side of the Balance Sheet
D.	Cash Account
Answer» B. Assets side of the Balance Sheet

Discussion

366.	Under the capitalisation method, the formula for calculating the goodwill is Sol:
A.	Super profits multiplied by the rate of return
B.	Average profits multiplied by the rate of return
C.	Super profits divided by the rate of return
D.	Average profits divided by the rate of return
Answer» D. Average profits divided by the rate of return

Discussion

367.	A profit on the sale of furniture of a club will be taken to:
A.	Cash account
B.	Receipts and payment account
C.	Income and expenditure account
D.	Balance sheet
Answer» D. Balance sheet

Discussion

368.	Weighted average method of calculating goodwill is used when Sol:
A.	Profits are not equal
B.	Profits show a trend
C.	Profits are fluctuating
D.	None of the above
Answer» C. Profits are fluctuating

Discussion

369.	The monetary value of reputation of business is called Sol:
A.	Goodwill
B.	Suer profit
C.	Surplus
D.	None of the above
Answer» B. Suer profit

Discussion

370.	The amount of goodwill is paid by new partner : Sol:
A.	for the payment of capital
B.	for sharing the profit
C.	for purchase of assets
D.	None of these
Answer» C. for purchase of assets

Discussion

371.	When does need valuation of Goodwill Sol:
A.	On retirement or Death of a partner
B.	Admission of Partner
C.	None of the Above
D.	Both
Answer» E.

Discussion

372.	Which methods of valuation of Goodwill Sol:
A.	Super profits
B.	Average profits
C.	Both
D.	None
Answer» D. None

Discussion

373.	Goodwill is defined as Sol:
A.	Intangible asset
B.	Fictitious asset
C.	Current asset
D.	Liquid asset
Answer» B. Fictitious asset

Discussion

374.	A person who take property on lease is called customer Sol:
A.	True
B.	False
C.	none
D.	all
Answer» C. none

Discussion

375.	Royalty is an income to lessee Sol:
A.	True
B.	False
C.	none
D.	all
Answer» C. none

Discussion

376.	Valuation of ------------- Assets is difficult. Sol:
A.	Intangible
B.	Wasting
C.	Current
D.	all
Answer» B. Wasting

Discussion

377.	Short working is a type of taxes paid by the lessee Sol:
A.	True
B.	False
C.	none
D.	all
Answer» C. none

Discussion

378.	The value of Intangible assets is ------------- over a period of time. Sol:
A.	Amortized
B.	Added
C.	Depreciated
D.	all
Answer» B. Added

Discussion

379.	Goodwill is an intangible Assets Sol:
A.	True
B.	False
C.	none
D.	all
Answer» B. False

Discussion

380.	This is the feature of Intangible assets Sol:
A.	They are valuable to internal and external entities.
B.	They are always acquired.
C.	They may be internally created or purchased
D.	all
Answer» D. all

Discussion

381.	In which of the following methods, the cost of the asset is spread over in equal proportion during its useful economic life?
A.	Straight-line method
B.	Written down value method
C.	Units-of-production method
D.	Sum-of-the years -digits method
Answer» B. Written down value method

Discussion

382.	Not-for-profit organisations are based on theory. Sol:
A.	Fund
B.	Surplus
C.	Profit
D.	Expenses
Answer» B. Surplus

Discussion

383.	The content of single entry system is
A.	Double entry
B.	Single entry
C.	No entry
D.	A mixture of all the above
Answer» E.

Discussion

384.	Not for profit organisations 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

Discussion

385.	Following are forms of Intangible assets. Sol:
A.	Brand, Goodwill, Furniture, Design
B.	Goodwill, Patent Rights, Machinery
C.	Brand, Trademark, Copyrights, Know how
D.	all
Answer» D. all

Discussion

386.	Branches not keeping full system of accounting is called________.
A.	Independent branches
B.	Partial branches
C.	Dependent branches
D.	None of these
Answer» D. None of these

Discussion

387.	Such systems also generate reports which allow the accounting professionals to have a proper view of different transactions in a comprehensive manner.
A.	Enterprise Resource Planning software
B.	Pre-packaged accounting software
C.	Spreadsheet software
D.	Customised accounting packages
Answer» C. Spreadsheet software

Discussion

388.	Such kind of software offers various functionalities such as cell content, pivot table, formulas and macros.
A.	Enterprise Resource Planning software
B.	Pre-packaged accounting software
C.	Spreadsheet software
D.	Customised accounting packages
Answer» D. Customised accounting packages

Discussion

389.	In not-for-profit organisations, excess of expenditure over income is called
A.	Loss
B.	Profit
C.	Deficit
D.	Surplus
Answer» D. Surplus

Discussion

390.	Receipts and Payments Account usually indicates
A.	Surplus
B.	Capital Fund
C.	Debit Balance
D.	Credit Balance
Answer» D. Credit Balance

Discussion

391.	The minimum share application money is
A.	Rs.5 per share
B.	5% of nominal value of shares
C.	10% of nominal value of shares
D.	20% of nominal value of shares.
Answer» C. 10% of nominal value of shares

Discussion

392.	The expenses which have been incurred to bring the goods or making the goods ready for sales is called
A.	Administrative expenses
B.	Direct expenses
C.	Indirect expenses
D.	Revenue expenses
Answer» C. Indirect expenses

Discussion

393.	is a person who is designated as such in the incorporation documents of the limited liability partnership agreement
A.	Director
B.	Manager
C.	Designated Partner
D.	Partner
Answer» D. Partner

Discussion

394.	When an existing company offers it shares for sale to the existing shareholders, it is known as
A.	Private placement
B.	Bonus issue.
C.	Right issue
D.	Offer for sale
Answer» D. Offer for sale

Discussion

395.	This is the kind of software which is specifically designed for meeting the requirements ofa particular business.Sol:
A.	Enterprise Resource Planning software
B.	Customised accounting packages
C.	Pre-packaged accounting software
D.	Spreadsheet software
Answer» C. Pre-packaged accounting software

Discussion

396.	The software may also allow for graphical rendering of data, which is useful for carryingout analysis.Sol:
A.	Enterprise Resource Planning software
B.	Spreadsheet software
C.	Pre-packaged accounting software
D.	Customised accounting packages
Answer» C. Pre-packaged accounting software

Discussion

397.	Schedule XIV of the Companies Act specifies as minimum rate of depreciation (WDV) on ship fishing vessels
A.	27% ;
B.	33% ;
C.	10% ;
D.	15%
Answer» B. 33% ;

Discussion

398.	Receipts and Payments Account usually indicates: Sol:
A.	Surplus
B.	Capital fund
C.	Debit Balance
D.	Credit Balance
Answer» D. Credit Balance

Discussion

399.	Receipts and Payments Account is a : Sol:
A.	Personal Account
B.	Real Account
C.	Nominal Account
D.	None of these
Answer» C. Nominal Account

Discussion

400.	In not-for-profit organisation, excess of expenditure over income is called : Sol:
A.	Loss
B.	Profit
C.	Deficit
D.	Surplus
Answer» D. Surplus

Discussion

Explore topic-wise MCQs in Bachelor of Business Administration in Computer Applications (BBA [CA]).

Recoupment of shortworking can be restricted or unrestricted Sol:

_________ is the systematic assignment of number to items to classify and organise them. Sol:

A unique name of symbol or design given to a product or service for easy identification and distinguishing it from the competitor is known as---------

The legal ownership of the goods is not transferred till the goods are sold in the case of

The individual field in the sheet is known as a _________. Sol:

A bundle of rights given by law to the creators of literary, artistic, dramatic, musical workis known asSol:

Under debtors system depreciation on fixed asset is:

Under debtors system depreciation on fixed asset is________ _______

Most organisations use __________ for coding their accounts. Sol:

An asset which does not have a physical form but has the potential to have a monetaryvalue is known as an -------------Sol:

An exclusive right given to an entity of individual or business firm to manufacture or sellan invention is known asSol:

Goodwill will have no effect on business Financial status Sol:

Creation of company is the first step in Computerized Accounting process. Sol:

A firm s goodwill is not affected by Sol:

Income and expenses related to the prize fund is shown in: Sol:

Under the capitalisation method, the formula for calculating the goodwill is Sol:

A profit on the sale of furniture of a club will be taken to:

Weighted average method of calculating goodwill is used when Sol:

The monetary value of reputation of business is called Sol:

The amount of goodwill is paid by new partner : Sol:

When does need valuation of Goodwill Sol:

Which methods of valuation of Goodwill Sol:

Goodwill is defined as Sol:

A person who take property on lease is called customer Sol:

Royalty is an income to lessee Sol:

Valuation of ------------- Assets is difficult. Sol:

Short working is a type of taxes paid by the lessee Sol:

The value of Intangible assets is ------------- over a period of time. Sol:

Goodwill is an intangible Assets Sol:

This is the feature of Intangible assets Sol:

In which of the following methods, the cost of the asset is spread over in equal proportion during its useful economic life?

Not-for-profit organisations are based on theory. Sol:

The content of single entry system is

Not for profit organisations institutions prepare

Following are forms of Intangible assets. Sol:

Branches not keeping full system of accounting is called________.

Such systems also generate reports which allow the accounting professionals to have a proper view of different transactions in a comprehensive manner.

Such kind of software offers various functionalities such as cell content, pivot table, formulas and macros.

In not-for-profit organisations, excess of expenditure over income is called

Receipts and Payments Account usually indicates

The minimum share application money is

The expenses which have been incurred to bring the goods or making the goods ready for sales is called

is a person who is designated as such in the incorporation documents of the limited liability partnership agreement

When an existing company offers it shares for sale to the existing shareholders, it is known as

This is the kind of software which is specifically designed for meeting the requirements ofa particular business.Sol:

The software may also allow for graphical rendering of data, which is useful for carryingout analysis.Sol:

Schedule XIV of the Companies Act specifies as minimum rate of depreciation (WDV) on ship fishing vessels

Receipts and Payments Account usually indicates: Sol:

Receipts and Payments Account is a : Sol:

In not-for-profit organisation, excess of expenditure over income is called : Sol:

Under debtors system depreciation on fixed asset is__ _