BCOM-ACCOUNTANCY AND FINANCIAL MANAGEMENT II MCQ

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Question 1 : Under the 'Debtor' method, closing balance in the Branch account indicates

  1. amount due from the branch
  2. Profit or loss at the branch
  3. Closing stock at the branch
  4. Opening stock at the branch
  

Question 2 : The owner of the consignment stock is ___________.

  1. Consignor
  2. Consignee
  3. Debtors
  4. Suppliers
  

Question 3 : Head office sends the goods at invoice price to a dependent branch. The total of Cash remitted to HO + Cash balance with branch + Closing stock with branch (at invoice price) is more than the total (at invoice price) of Opening stock with branch and goods sent to branch. This indicates

  1. Likely fraud / error involving cash and / or stock
  2. Cash and stock on the last day of the year with the branch
  3. Profit for the year earned by the branch
  4. Loss for the year recorded by the branch
  

Question 4 : If total stock is Rs.50,000; the value of policy is Rs.70,000 and the entire stock is lost, the claim will be for _________.

  1. Rs. 70,000
  2. Rs. 35,714
  3. Rs. 50,000
  4. Rs. 60,000
  

Question 5 : If the consignor carries on Trading business, then the balance of goods sent on consignment A/c is transferred to __________.

  1. Profit & loss A/c
  2. Trading A/c
  3. Purchase A/c
  4. Consignment A/c
  

Question 6 : Sales Rs.2,00,000; Purchases Rs.1,30,000; Wages Rs.18,000; Closing stock Rs.22,000; Opening stock Rs.20,000. What was the Gross profit ?

  1. Rs.45,000
  2. Rs.72,000
  3. Rs.50,000
  4. Rs.54,000
  

Question 7 : Credit purchases can be ascertained by preparing _______ A/c.

  1. Debtors
  2. Creditors
  3. Bills receivables
  4. Bills payable
  

Question 8 : Total debtors A/c is prepared to find out ________.

  1. Credit purchases
  2. Cash Purchases
  3. Credit Purchases
  4. Credit sales
  

Question 9 : Profit can be ascertained from the incomplete records under Single entry by using ____________.

  1. Only Statement of affairs method
  2. Only Conversion method
  3. Either Statement of affairs or conversion method
  4. Neither Statement of affairs nor conversion method
  

Question 10 : In consignment Accounting, to consign means _________.

  1. to receive
  2. to purchase
  3. to send
  4. to transfer
  

Question 11 : If the consignee gets del credere commission, ___________.

  1. the consignee will bear the bad debts
  2. the consignor will bear the bad debts
  3. the consignee will pay the price immediately on receipt of consignment
  4. the consignee will bear all the expenses
  

Question 12 : As per average clause Insurance company pays compensation ________

  1. More than the loss
  2. Less than the loss
  3. Proportionally
  4. Exact the amount of loss
  

Question 13 : Unless otherwise agreed, Del-credere is allowed on _______.

  1. Net sales
  2. Gross sales
  3. Gross credit sales
  4. Net Credit sales
  

Question 14 : In signle entry to find out credit sale _______ is prepared.

  1. Debtors A/c
  2. Cash A/c
  3. Creditors A/c
  4. Bank A/c
  

Question 15 : If books are kept under single entry system, opening stock is ascertained by preparing ___________.

  1. Opening stock A/c
  2. Stock register
  3. Memorandum Trading A/c
  4. Opening statement of Affairs
  

Question 16 : Which of the following statement is True ?

  1. Book stock on date of fire + Goods not received, but not included in purchases = Stock destroyed by fire
  2. Book stock on date of fire - Goods not received, but not included in purchases = Stock destroyed by fire
  3. Book stock on date of fire + Goods not received, but not included in purchases = Stock destroyed fire
  4. Book stock on date of fire + Goods included in purchases but received = Stock destroyed fire
  

Question 17 : Proforma invoice is prepared by the ________.

  1. Seller
  2. Consignor
  3. Buyer
  4. Consignee
  

Question 18 : The cash and credit sales of a branch are Rs.5,000 and Rs.10,000 respectively. The amount collected from debtors is Rs.10,000. Under Debtors system the amount credited to branch will be _____

  1. Rs.20,000
  2. Rs.15,000
  3. Rs.25,000
  4. Rs.10,000
  

Question 19 : Bills Payable dishonoured are debited to ________ Account.

  1. Bills Receivables
  2. Bills Payable
  3. Sundry Debtors
  4. Sundry Creditors
  

Question 20 : Claim to be lodged with Insurance company is for _________.

  1. Policy amount - Salvaged goods
  2. Closing stock on the date of fire + salvaged goods
  3. Closing stock on the date of fire - salvaged goods
  4. Policy amount + Salvaged goods
  

Question 21 : When the consignor sends goods to consignee he prepares a __________.

  1. Account sales
  2. Cash memo
  3. Proforma Invoice
  4. Credit memo
  

Question 22 : Which of the following statement is True ?

  1. Under single entry system, only one journal entry is passed for all transactions during a day
  2. Under single entry system, all entries are passed as well as posted only by one person
  3. Under single entry system, it is not possible to ascertain the gross profit earned by the business.
  4. Under single entry system, Only one aspect of transaction is recorded for all transactions.
  

Question 23 : Closing balance of trade creditors can be ascertained from ___________.

  1. Total Creditors
  2. Total Debtors A/c
  3. Bills Payable A/c
  4. Cash A/c
  

Question 24 : Closing stock with consignee is shown in the Balance sheet of ___________.

  1. Consignee
  2. Consignor
  3. Agency
  4. Profit
  

Question 25 : The following entry is passed for a dependent branch at Pune following the Debtors method - Pune Branch A/c....................................................Dr To Goods sent to Pune Branch A/cThis entry may indicate -

  1. Goods sent to Pune branch by Head office
  2. Goods sends to Pune Branch by another branch
  3. Either Goods sent to Pune branch by Head office or Goods sends to Pune Branch by another branch
  4. Neither Goods sent to Pune branch by Head office nor Goods sends to Pune Branch by another branch
  

Question 26 : When consignee incurs expenses __________.

  1. No entry is passed in the books of the consignor
  2. Entry is passed in the books of both the consignor and the consignee
  3. Entry is passed in the books of only the consignor
  4. Entry is passed in the books of either the consignor or the consignee.
  

Question 27 : If there are any damaged or obsolete items in stock lost by fire, the Memorandum Trading A/c _____________.

  1. Should show only the normal items
  2. should have two amount columns on each side for Normal items and Abnormal items
  3. Should show only the abnormal items
  4. should have only one amount columns on either side for Normal items and Abnormal items
  

Question 28 : Which of the following statement is True ?

  1. The income, expenses, assets and liabilities of an independent branch can be ascertained only by HO
  2. Purchase of fixed assets by branch on credit will be recorded in the branch A/c kept under the Debtor method
  3. Receipts from branch debtors are not recorded in the Branch account kept under the Debtor method.
  4. Under stock and debtors method,branch stock A/c is opened in order to ascertain net profit/loss of branch
  

Question 29 : If books are kept under single entry system, Credit purchases are ascertained by preparing __________.

  1. Total Creditors A/c
  2. Credit sales A/c
  3. Trading A/c
  4. Total Debtos A/c
  

Question 30 : If books are kept under single entry system, Credit sales are ascertained by preparing __________.

  1. Total Creditors A/c
  2. Credit sales A/c
  3. Trading A/c
  4. Total Debtos A/c
  

Question 31 : Head Office at Mumbai keeps a single 'Pune Branch A/c' which is used to record all items relating to the branch.

  1. Pune branch is an independent branch whose accounts are kept under the 'Debtors' method.
  2. Pune branch is dependent branch whose accounts are kept under the 'Debtors' method.
  3. Pune branch is a dependent branch whose accounts are kept under the 'Stock and Debtors' method.
  4. Pune branch is a independent branch whose accounts are kept under the 'Stock and Debtors' method.
  

Question 32 : In Branch Accounts, Depreciation on branch assets under debtors system is ___________.

  1. Not shown separately in branch A/c
  2. Shown in Branch A/c
  3. Not accounted
  4. Shown in the Profit & loss A/c of head office
  

Question 33 : The average clause in a loss of profit protects the __________.

  1. Insured
  2. Insurer
  3. Workers
  4. CEO's
  

Question 34 : Sales Rs.2,00,000; Purchases Rs.1,30,000; Wages Rs.18,000; Closing stock Rs.22,000; Opening stock Rs.20,000. What was the Rate of Gross profit ?

  1. 0.36
  2. 0.27
  3. 0.25
  4. 0.2
  

Question 35 : Del credere commission is paid then __________ A/c should be debited for credit sales.

  1. Consigneee
  2. Consignment
  3. Consignment Debtors
  4. Consignor
  

Question 36 : Carriage on Purchases should be _________.

  1. Debited to Memorandum Trading A/c
  2. Credited to Memorandum Trading A/c
  3. Deducted from Sales
  4. Ignored
  

Question 37 : Abnormal items included in closing stock should be ________.

  1. Deducted from closing stock
  2. Added to closing stock
  3. Added to Sales
  4. Deducted from sales
  

Question 38 : Goods saved from fire are called as __________.

  1. Abnormal goods
  2. Claim
  3. Salvage
  4. Normal goods
  

Question 39 : Goods costing Rs.2,10,000 were sent to branch at 25% margin on selling price. Its value to be charged to the Branch account is at _____________.

  1. Rs.3,00,000
  2. Rs.2,50,000
  3. Rs.2,75,000
  4. Rs.2,80,000
  

Question 40 : Consignor sends to consignee __________.

  1. Sales A/c
  2. Account Sales
  3. Proforma Invoice
  4. Invoice
  

Question 41 : In Consignment Accounts, Bad debts are ___________.

  1. Debited to general commission A/c and credited to consignment Debtor's A/c, when there is no del credere commission.
  2. Debited to consignment debtors A/c and credited to Consignor's A/c, when there is no del credere commission
  3. No entry is passed
  4. Debited to Consignor's A/c and credited to Consignment Debtor's A/c, when there is no del credere commission
  

Question 42 : Goods recovered in good condition at the time of fire accident is called ________.

  1. Puchased goods
  2. Damaged goods
  3. Saved Goods
  4. Salvaged goods
  

Question 43 : The following entry is passed for a dependent branch at Pune following the Debtors method - Pune Branch A/c....................................................Dr To Cash / Bank A/c This entry may indicate -

  1. Cash sent to Pune Branch by HO
  2. Cash received from Pune branch by another branch
  3. Cash received from Pune branch by HO
  4. Expenses of HO paid by Pune branch
  

Question 44 : _______________ is required to find out closing stock lying in the godown on the date of fire.

  1. Net profit ratio
  2. Gross profit ratio
  3. Expenses ratio
  4. Income ratio
  

Question 45 : Consignor-consignee relationship is _____________.

  1. Employeremployee relationship
  2. Principal-agent relationship
  3. Master-servant relationship
  4. Merchant-seller relationship
  

Question 46 : Fire Insurance policy is taken up to indemnify _________.

  1. Capital losses to tangible property
  2. Revenue losses to tangible property
  3. Capital gains to tangible property
  4. Revenue gains to tangible property
  

Question 47 : In Fire Insurance claims, Misapprotioned cash sales should be ________.

  1. Ignored for a while
  2. Deducted from sales A/c
  3. Added to Puchases A/c
  4. Added to sales A/c
  

Question 48 : Branch Account under debtors system is a __________.

  1. Real A/c
  2. Nominal A/c
  3. Personal A/c
  4. Representative personal A/c
  

Question 49 : Cash received from debtors needed for the construction of cash account can be ascertained from ___________.

  1. Total Creditors
  2. Total Debtors A/c
  3. Analysis of cash book
  4. Balance sheet
  

Question 50 : Which of the following expenses is not considered as part of cost of stock ?

  1. Packing, loading and insurance paid by the consignor
  2. Inward consignment freight paid by the consignee
  3. Transport charges upto godown paid by consignee
  4. Insurance charges paid by consignee
  

Question 51 : The branch is said to be _____ when its accounts are maintained by Head office.

  1. Home
  2. Foreign
  3. Independent
  4. Dependent
  

Question 52 : A fire insurance policy usually includes an ________ to discourage the under insurance of stock or any asset.

  1. Weighted clause
  2. Average clause
  3. Closing stock
  4. Opening stock
  

Question 53 : Goods are sent to the Branch at 20% margin on selling price. When Branch stocks disclose a surplus of Rs.2,000 the amount to be credited to Branch Adjustement A/c will be ________.

  1. Rs.2,000
  2. Rs.333
  3. Rs.1,600
  4. Rs.400
  

Question 54 : Branch Adjustment Account is opened __________.

  1. Under debtors method, when goods are sent by HO to branch at cost
  2. Under stock and debtors method, when goods are sent by HO to branch at cost
  3. Under debtors method, when goods are sent by HO to branch at invoice price
  4. Under stock and debtors method, when goods are sent by HO to branch at invoice price
  

Question 55 : An estimate of assets and liabilities as on a date is called __________.

  1. Balance sheet
  2. Statement of affairs
  3. Statement of Capital
  4. Trial Balance
  

Question 56 : With the available information a trader need to convert the incomplete records into complete records, it is known as _________.

  1. Complete records method
  2. Statement of affairs method
  3. Conversion method
  4. Random method
  

Question 57 : Which of the following statement is not True ?

  1. If Del-credere commission is allowed, bad debt will not be recorded in the books of consignor
  2. If Del-credere commission is allowed, bad debt will be debited in consignment account
  3. Del-credere commission is allowed by consignor to consignee
  4. Del-credere commission is generally relevant for credit sales
  

Question 58 : On loss of goods by fire, a trader can claim compensation for __________.

  1. The cost of actual physical stock destroyed by fire less salvage, if any
  2. The market value of actual physical stock destroyed by fire.
  3. The cost of book stock on date of fire.
  4. The cost of actual physical stock destroyed or the cost of book stock on date of fire as per stock records whichever is lower.
  

Question 59 : Average clause is an Insurance policy applies only in case of ___________.

  1. Life-insurance
  2. Over-insurance
  3. Under-insurance
  4. Car-insurance
  

Question 60 : The following entry is passed for a dependent branch at Pune following the Debtors method - Goods sent to Pune Branch A/c....................................................Dr To Pune Branch A/cThis entry may indicate -

  1. Goods returned to HO by the Pune Branch
  2. Goods returned to HO directly by the Pune branch customers
  3. Goods sent by Pune branch to another branch
  4. All of the above
  

Question 61 : Under the 'Debtor' method, Goods returned by debtors to branch

  1. Will not be recorded by the HO in the Branch A/c
  2. Will be debited to Goods sent Branch A/c and credited to the Branch A/c
  3. Will be debited to Goods sent Branch A/c and credited to the Branch Debtors A/c
  4. Will be debited to Branch Stock A/c and credited to the Branch Debtors A/c
  

Question 62 : The relationship between the "Consignor" and the "Consignee" is that of ________.

  1. "Principal and Principal"
  2. "Agent and Principal"
  3. "Principal and Agent"
  4. "Agent and Subagent"
  

Question 63 : Goods sent on consignment are the property of ________.

  1. the consignee
  2. both the consignor and the consignee equally
  3. either the consignor or the consignee
  4. the consignor
  

Question 64 : Stock reserve in relation to cloaing stock appears ___________.

  1. On the credit side of branch A/c
  2. On the debit side of branch A/c
  3. On the debit side of Profit & loss A/c
  4. On the credit side of profit & loss A/c
  

Question 65 : Which of the following statement is False

  1. Consignor is the owner of the consignment A/c
  2. Del-credere commission is allowed by consignor to protect himself for bad debt
  3. Proportionate consignor's expenses is added up with consignment stock
  4. All proportioante consignee's expenses will be added up for valuation of consignment stock
  

Question 66 : When the Head Office sends the goods at Invoice price to a dependent branch, the loading on goods sent by HO to branch is adjusted by passing the following entry

  1. Branch A/c _______________ Dr To Stock reserve A/c
  2. Goods sent to branch A/c___________Dr To Branch A/c
  3. Stock Reserve A/c ______________Dr To Branch A/c
  4. Branch A/c ______ Dr To Goods sent to Branch A/c
  

Question 67 : When the consignee receives the goods on consignment, __________.

  1. The consignee buys the goods
  2. The consignee merely agrees to sell them on behalf of the consignor
  3. The consignee and the consignor become equal partners
  4. The consignee and the consignor become coventures
  

Question 68 : The amount to be paid by insurance company in the event of loss is called as ________.

  1. Premium
  2. Sum assured
  3. Insurance
  4. Cost
  

Question 69 : When Branch 'A' sends goods to Branch 'B' in the books of Branch 'A' debit is given to

  1. Sales return A/c
  2. Branch B A/c
  3. Head office A/c
  4. Purchase return A/c
  

Question 70 : The Head office sends goods to its branch at a loading of 25% on sales

  1. The loading is 1/3rd of cost
  2. The loading is 1/4th of cost
  3. The loading is 50% of cost
  4. The loading 20% of sales
  

Question 71 : Under stock and Debtors method, Branch stock account helps to ___________.

  1. Ascertain net profit / loss of the branch
  2. Ascertain cost of goods sent to the branch
  3. Ascertain closing stock at the branch
  4. Ascertain Gross profit/loss of the branch
  

Question 72 : If the consignee gets _________, he will bear bad debts.

  1. Discount
  2. Commission
  3. Del Credere Commission
  4. Interest
  

Question 73 : With reference to consignment, loading is the difference between ________.

  1. Selling price and cost price
  2. Selling Price and Invoice price
  3. Invoice price and cost price
  4. Invoice price and Net realisable value
  

Question 74 : If there are damaged or absolete items in stock lost by fire, the amount of loss will be ___________.

  1. Equal to the Cost of normal items
  2. Equal to the Cost of Abnormal items
  3. Equal to the Cost of Normal items + Cost of abnormal items
  4. Equal to the Cost of Normal items - Cost of abnormal items
  

Question 75 : For recording closing stock held by consignee which account must be debited _______.

  1. Consignment A/c
  2. Consignee A/c
  3. Sales A/c
  4. Consignment stock A/c
  

Question 76 : In fire insurance compensation is __________.

  1. Equal to policy amount
  2. Stock on the date of fire
  3. Actual loss incurred
  4. Ignored
  

Question 77 : In consignment Accounting, if discount is treated as "Consignment expenses" it is debited to ___________.

  1. Consignee A/c
  2. Consignment A/c
  3. Profit & loss A/c
  4. Consignor A/c
  

Question 78 : The Balancing figure in Memorandum Trading A/c prepared by a trader who has lost goods in fire indicates ___________.

  1. Gross profit on stock lost
  2. Estimated closing stock as on date of fire
  3. Value of fire insurance policy
  4. Amount of claim to be made from Insurance company
  

Question 79 : Usually, in a single entry system _____________.

  1. Only manual accounts are maintained
  2. Only cash and personal accounts are maintained
  3. Only real accounts are maintained
  4. Only nominal accounts are maintained
  
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