BBI Financial Accounting - I MCQ

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Question 1: _____ fees are capitalised.

  1. Revenue
  2. Membership
  3. Capital Fund
  4. None of the above
  

Question 2: The fixed value of a share is called _____ value of a share.

  1. face value
  2. deducted
  3. uncalled capital
  4. All of the above
  

Question 3: _____ expenditure is non-recurring.

  1. Capital
  2. D.R. Expenses
  3. Revenue
  4. None of the above
  

Question 4: Super profit is

  1. Excess of future maintainable profit over normal profit.
  2. Average profit.
  3. Normal profit.
  4. Abnormal profit.
  

Question 5: The Profit and Loss Account is prepared to find out the _____.

  1. Net Profit or Net Loss
  2. Gross Profit
  3. Trial Balance
  4. All of the above
  

Question 6: Payment of penalty is a _____ expenditure.

  1. D.R. Expenses
  2. Revenue
  3. Capital
  4. None of the above
  

Question 7: Transaction which involves receipt or payment of cash is known as ______ transaction.

  1. Cash
  2. capital
  3. drawings
  4. None of the above
  

Question 8: AS 6 deals with _____.

  1. Depreciation
  2. Impairment of assets
  3. Presentation
  4. None of the above
  

Question 9: Amount spent on installation of machinery is a _____ expenditure.

  1. capital revenue
  2. deferred revenue
  3. revenue
  4. capital
  

Question 10: Liabilities + Capital at the end given = _____.

  1. Total Assets
  2. None of the above
  

Question 11: Hire purchase price includes _____ and _____.

  1. Cash Price, Interest
  2. Hire vendor
  3. Cash Price
  4. None of the above
  

Question 12: As per _____ _____ profit is earned when it is realized.

  1. Entity
  2. Realisation
  3. Conservatism
  4. None of the above
  

Question 13: Premium on issue of shares is disclosed in Balance Sheet under _____.

  1. reserves
  2. uncalled capital
  3. general reserve
  4. All of the above
  

Question 14: Which system of Book-Keeping under which records of both the aspects of transactions are recorded?

  1. Double Entry System
  2. Indian System
  3. Deshi System
  4. Hybrid System
  

Question 15: Machinery bought on credit for permanent use.

  1. Property
  2. Goods
  3. Journal
  4. None of the above
  

Question 16: Bank Reconciliation Statement is prepared to reconcile the difference in _____ and _____.

  1. Journal Proper
  2. Bank Reconciliation Statement
  3. Bank Balance as per Cash Book and Pass Book Balance
  4. All of the above
  

Question 17: Excess of credit side over debit side of a Profit & Loss Account represents _____.

  1. Net Profit
  2. Assets
  3. Gross Profit
  4. None of the above
  

Question 18: In case of commission charged by the Bank without the knowledge of the trader, the bank balance of the Cash Book will be _____ than that of the Pass Book.

  1. Less
  2. more
  3. Credit
  4. None of the above
  

Question 19: Notice of _____ days is must for payment of calls on shares.

  1. 11
  2. 15
  3. 14
  4. None of the above
  

Question 20: _____ expenditure is recurring.

  1. Revenue
  2. Capital Expenditure
  3. Providing services
  4. None of the above
  

Question 21: Expenses incurred for obtaining a licence to start the factory ` 10,000

  1. Capital
  2. Revenue
  3. D.R. Expenses
  4. None of the above
  

Question 22: Amount / goods withdrawn from business for personal use is called as ______.

  1. drawings
  2. goods
  3. intangible
  4. All of the above
  

Question 23: AS 16 deals with _____ _____.

  1. Earning per share
  2. Inventory Valuation
  3. Borrowing Cost
  4. None of the above
  

Question 24: AS 25 deals with _____ _____.

  1. Borrowing Cost
  2. Interim financial Reporting
  3. Earning per share
  4. None of the above
  

Question 25: _____ method is recognised by AS 2.

  1. LIFO
  2. FIFO
  3. Weighted Average
  4. All of the above
  

Question 26: _____ _____ _____ is followed when there are fluctuations in prices.

  1. WAM
  2. FIFO
  3. LIFO
  4. All of the above
  

Question 27: Commodity in which a trader deals

  1. Goods
  2. Property
  3. non-profit making
  4. None of the above
  

Question 28: Opening stock is entered in a Trading Account on the _____ side.

  1. Credit side
  2. Debit side
  3. Gross Profit
  4. None of the above
  

Question 29: _____ is the option giving to the employees to subscribe to shares.

  1. owers
  2. discount
  3. ESOP
  4. All of the above
  

Question 30: Under _____ Method, depreciation is calculated on written down value.

  1. Reducing Balance
  2. Fixed Instalment
  3. Changing Value
  4. Constant Value
  

Question 31: The object of providing depreciation is to set aside a certain sum every year to _____ that asset when it is unserviceable.

  1. replace
  2. recharge
  3. recast
  4. reallocate
  

Question 32: Depreciation is charged at a certain rate on _____ _____ of the asset.

  1. Cash Price
  2. Possession
  3. Hire vendor
  4. None of the above
  

Question 33: _____ receipts are shown in Balance Sheet.

  1. Capital
  2. Revenue
  3. D.R. Expenses
  4. None of the above
  

Question 34: Spent on making an entrance for a cinema house 1,50,000

  1. Revenue expenditure
  2. Capital expenditure
  3. Deferred revenue expenditure
  4. None of the above
  

Question 35: Concepts provide a _____ to accounting process.

  1. Entity
  2. Foundation
  3. None of the above
  

Question 36: Amount invested in business is ______.

  1. capital
  2. Trading concern
  3. Non-Trading concern
  4. None of the above
  

Question 37: A person who owes something to us is a ______.

  1. debtor
  2. creditor
  3. Goodwill
  4. All of the above
  

Question 38: In _____ method, stock is valued at oldest rate.

  1. LIFO
  2. FIFO
  3. Weighted Average
  4. None of the above
  

Question 39: The Bank Reconciliation Statement is prepared to reconcile the balances of the (a) _____ and the (b) _____.

  1. Debited, Credited
  2. Cash Book, Pass Book
  3. Balance with Bank
  4. All of the above
  

Question 40: Assets held for immediate conversion into money are known as _____ assets.

  1. Closing Capital
  2. Current
  3. Trial Balance
  4. All of the above
  

Question 41: Basic motive of non-trading concern is not to make profit.

  1. Profit-making
  2. non-profit making
  3. Profit
  4. All of the above
  

Question 42: The maximum amount of capital which a company can raise is called _____ share capital.

  1. general reserve
  2. subscribed
  3. authorized
  4. None of the above
  

Question 43: In valuation of inventory _____ concept is followed.

  1. Perpetual
  2. Realisation
  3. FIFO
  4. None of the above
  

Question 44: As per _____ _____ concept every transaction has dual aspects.

  1. Conservatism
  2. Dual Aspect
  3. Disclosure concept
  4. None of the above
  

Question 45: Excess of capital at the end over the capital at the beginning shows _____.

  1. Net Profit
  2. Closing Capital
  3. Balance sheet
  4. None of the above
  

Question 46: A Capital Account is shown in the balance sheet on the _____ side.

  1. Balance sheet
  2. Net Profit
  3. Liabilities
  4. None of the above
  

Question 47: _____ _____ is prepared for adjustments.

  1. credit memo
  2. voucher
  3. Journal voucher
  4. None of the above
  

Question 48: Possession of goods is transferred on _____ the agreement.

  1. Cash Price
  2. Possession
  3. Signing
  4. None of the above
  

Question 49: The shares offered to existing shareholders are called _____ shares.

  1. general reserve
  2. discount
  3. right shares
  4. None of the above
  

Question 50: Intangible assets which cannot be converted into cash are called as _____ assets.

  1. Profit-making
  2. non-profit making
  3. fictitious
  4. All of the above
  

Question 51: Under hire purchase agreement interest is charged on _____ cash price.

  1. Last intalment
  2. Interest
  3. Outstanding
  4. None of the above
  

Question 52: A trial balance _____ inspite of several errors.

  1. Subsidiary books
  2. Posting
  3. Tallies
  4. None of the above
  

Question 53: If the number of shares for which application is received exceeds issued shares, it is called _____.

  1. calls in advance
  2. Share Application
  3. over subscription
  4. None of the above
  

Question 54: Discount allowed on re-issue of forfeited shares is debited to _____ Account.

  1. Forfeited Shares
  2. general reserve
  3. Forfeited Shares
  4. None of the above
  

Question 55: Excess of H.P. price over cash price is _____.

  1. Interest
  2. Outstanding
  3. Possession
  4. None of the above
  

Question 56: The Bank balance in the Pass Book differs from the bank balance in the Cash Book when a cheque is issued but not _____ in the Bank.

  1. Credit Balance
  2. presented
  3. Overdraft
  4. None of the above
  

Question 57: Received from X Ltd. an invoice for ` 3,500 for repairs of walls of the office premises

  1. Revenue expenditure
  2. Capital expenditure
  3. Deferred revenue expenditure
  4. None of the above
  

Question 58: Double Entry Book-keeping enables us to check the _____ accuracy of the books of accounts.

  1. arithmetical
  2. algebric
  3. geometric
  4. scientific
  

Question 59: Loss on Sale of Machinery is _____ to Machinery Account.

  1. credited
  2. debited
  3. added
  4. deducted
  

Question 60: _____ expenditure is recurring.

  1. Revenue
  2. Capital
  3. D.R. Expenses
  4. None of the above
  

Question 61: Heavy advertising expenditure for launching a new product.

  1. Capital expenditure
  2. revenue expenditure
  3. deferred revenue expenditure
  4. None of the above
  

Question 62: Discount which is recorded in the books of accounts is

  1. trade discount
  2. cash discount
  3. quantity discount
  4. All of the above
  

Question 63: When a transaction is omitted from the books of accounts, it is called as an error of _____.

  1. rectification
  2. Omission
  3. Commission
  4. None of the above
  

Question 64: Wages paid for installation of machinery should be debited to _____ Account.

  1. Sales A/c
  2. Cash A/c
  3. Machinery Account
  4. None of the above
  

Question 65: _____ is a statement of financial position.

  1. Surplus
  2. Providing services
  3. Balance Sheet
  4. None of the above
  

Question 66: A person whose assets are lesser than his liabilities.

  1. Insolvent
  2. Solvent
  3. Goods
  4. None of the above
  

Question 67: Received on account of issue of debentures ` 4,00,000

  1. Revenue receipt
  2. Capital receipt
  3. Deferred revenue expenditure
  4. None of the above
  

Question 68: The first reporting period as per IFRS is _____.

  1. 2016-2017
  2. 2015-2016
  3. 2017-2018
  4. None of the above
  

Question 69: For the purpose of reconciliation only the _____ column of the Cash Book is to be considered.

  1. Overdraft
  2. Journal Proper
  3. Bank
  4. None of the above
  

Question 70: Net Sales = Total Sales _____.

  1. Profit & Loss Account
  2. Trial Balance
  3. minus sales return
  4. None of the above
  

Question 71: In every transaction at least _____ parties are involved.

  1. two
  2. three
  3. four
  4. one
  

Question 72: Repairs of machinery is a _____ expenditure.

  1. Capital
  2. Revenue
  3. D.R. Expenses
  4. None of the above
  

Question 73: Under _____ method stock is valued at oldest rate.

  1. FIFO
  2. Weighted Average
  3. LIFO
  4. All of the above
  

Question 74: The Goods remaining unsold is called as _____.

  1. intangible
  2. tangible
  3. stock
  4. None of the above
  

Question 75: In the case of an overdraft, the bank column of the Cash Book will show a _____ balance.

  1. Credit
  2. Debit
  3. Bank
  4. None of the above
  

Question 76: Normal profit is

  1. Average profit earned by similar concerns in the industry.
  2. Extra profit earned by similar companies.
  3. Profit earned under exceptional circumstances.
  4. Profit earned under normal circumstances.
  

Question 77: In reducing Balance method the amount of depreciation _____ year after year.

  1. reduces
  2. charges
  3. increases
  4. remains constant
  

Question 78: The amount of calls in arrears is _____ from share capital.

  1. deducted
  2. face value
  3. uncalled capital
  4. All of the above
  

Question 79: IFRS are issued by _____.

  1. FASB
  2. IASB
  3. Both (a) and (b)
  4. None of the above
  

Question 80: A Drawings account is closed by transferring the balance to the _____ account.

  1. Capital
  2. Assets
  3. Closing Capital
  4. None of the above
  

Question 81: Current assets are

  1. short term
  2. medium term
  3. long term
  4. None of the above
  

Question 82: A list of balances of all the accounts in the ledger is called _____.

  1. Trial Balance
  2. Sales Return
  3. Net Profit or Net Loss
  4. None of the above
  

Question 83: Spent to get a licence to run the factory ` 60,000

  1. Revenue expenditure
  2. Capital expenditure
  3. Deferred revenue expenditure
  4. None of the above
  

Question 84: Hire purchase price is _____ than cash price.

  1. Buyer
  2. Customer
  3. Higher
  4. None of the above
  

Question 85: Depreciation Account is a _____ Account.

  1. Nominal
  2. Real
  3. Personal
  4. Valuation
  

Question 86: Expenditure incurred for acquisition of fixed assets.

  1. Capital expenditure
  2. revenue expenditure
  3. deferred revenue expenditure
  4. All of the above
  

Question 87: Under _____ stock taking stock is valued periodically.

  1. Periodic
  2. Physical
  3. Perpetual
  4. None of the above
  

Question 88: Goodwill has _____ value.

  1. Fictious
  2. Intangible
  3. Realisable
  4. None of the above
  

Question 89: Fixed instalment method is used for assets like _____.

  1. patents
  2. machinery
  3. building
  4. goodwill
  

Question 90: Capital employed is _____ _____ capital.

  1. Normal Rate
  2. Tangible Trading
  3. Super Profit
  4. None of the above
  

Question 91: Sweat shares are issued to _____.

  1. subscribed
  2. employees
  3. securities premium
  4. All of the above
  

Question 92: At the end of the year, depreciation is transferred to _____ Account.

  1. Receipt & Payment
  2. Profit & Loss Appropriation
  3. Balance Sheet
  4. Profit & Loss
  

Question 93: Interest on capital is charged to _____ account.

  1. Trial Balance
  2. Closing Capital
  3. Profit & Loss Account
  4. All of the above
  

Question 94: All the _____ assets depreciate.

  1. fixed
  2. current
  3. floating
  4. intangible
  

Question 95: Money received along with application or allotment of shares is credited to _____ Account.

  1. over subscription
  2. calls in advance
  3. Share Application
  4. None of the above
  

Question 96: On Hire Purchase the ownership is transferred on payment of _____ instalment.

  1. First
  2. Hirer
  3. Last
  4. None of the above
  

Question 97: Under the _____ System of depreciation, the amount of depreciation does not change from year to year.

  1. Fixed Instalment
  2. Reducing Balance
  3. WDV
  4. Cost
  

Question 98: Direct deposits by customers are entered in the Pass Book on the _____ side.

  1. Credit
  2. Less
  3. Debit
  4. None of the above
  

Question 99: In _____ method, stock is valued at current rate.

  1. FIFO
  2. Weighted Average
  3. LIFO
  4. None of the above
  

Question 100: Gross loss is shown on the _____ side of a Profit and Loss Account.

  1. Credit
  2. Debit
  3. Capital
  4. None of the above
  
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