BBI Financial Accounting - I MCQ

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Question 101: Which concept implies that amount paid or payable for acquisition of asset should be recorded at cost?

  1. Entity
  2. Cost concept
  3. Going Concern
  4. None of the above
  

Question 102: The method in which depreciation remains constant is known as ____ Method.

  1. Fixed Instalment
  2. WDV
  3. Fluctuating Line
  4. straight line method
  

Question 103: A person whose assets are greater than his liabilities.

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

Question 104: AS 28 deals with _____ _____ _____.

  1. Presentation
  2. Earning per share
  3. Impairment of assets
  4. None of the above
  

Question 105: The balance of a Trading Account is transferred to _____.

  1. Gross Profit
  2. Profit & Loss Account
  3. Gross Loss
  4. All of the above
  

Question 106: Under _____ method stock is valued after every transaction.

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

Question 107: As per _____ _____ concept financial results are ascertained every year.

  1. Accounting period
  2. Cost Concept
  3. Money measurement
  4. None of the above
  

Question 108: The account which shows actual receipts and payments is _____.

  1. Trading A/c
  2. Income & Exp. A/c
  3. Receipts and Payment A/c
  4. None of the above
  

Question 109: Purchase of tools for servicing.

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

Question 110: Amount received on forfeited shares is shown as part of _____.

  1. called-up
  2. uncalled capital
  3. securities premium
  4. All of the above
  

Question 111: Under _____ inventory system, stock is valued on the basis of stores ledger.

  1. Periodic
  2. Perpetual
  3. Physical
  4. All of the above
  

Question 112: (Opening Stock + Purchases + Direct Expenses + Gross Profit) - Sales gives _____.

  1. Gross Profit
  2. Closing Capital
  3. Closing Stock
  4. None of the above
  

Question 113: Which system enables ascertainment of financial position?

  1. Double Entry System
  2. Single Entry System
  3. Cash System
  4. Credit System
  

Question 114: Under which system only cash transactions are recorded.

  1. Barter System
  2. Cash System
  3. Accrual System
  4. Hybrid System
  

Question 115: AS 1 deals with _____ _____.

  1. Inventory Valuation
  2. Accounting policies
  3. Consolidated financial statement
  4. None of the above
  

Question 116: Under which system the businessman writes accounts in vernacular of Indian language?

  1. Indian System
  2. Cash System
  3. Credit System
  4. Accrual System
  

Question 117: A person whose assets are more than his liabilities ______.

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

Question 118: An exchange of money or money's worth between two parties.

  1. Transaction
  2. cash receipt
  3. Profit-making
  4. None of the above
  

Question 119: A company can issue _____ classes of shares.

  1. One
  2. Three
  3. two
  4. All of the above
  

Question 120: FMP – Normal Profit = _____.

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

Question 121: When money is overdrawn from the bank the Pass book shows a _____ balance.

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

Question 122: All items of income are shown on the credit side of the _____ Account.

  1. Gross Loss
  2. Gross Profit
  3. Profit & Loss A/c
  4. None of the above
  

Question 123: Cost of removal of stock from one place to another place.

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

Question 124: Amount invested into business.

  1. Capital
  2. Drawings
  3. Loan
  4. None of the above
  

Question 125: If the amount exceeds ` _____ a revenue stamp must be affixed.

  1. ` 5,000
  2. ` 15,000
  3. ` 25,000
  4. None of the above
  

Question 126: A new company cannot issue share at a _____.

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

Question 127: The part of uncalled capital, which a company decides to call only in case of liquidation is called _____.

  1. paid up capital
  2. reserve capital
  3. uncalled capital
  4. None of the above
  

Question 128: Interest on overdraft charged by the Bank is _____ to the Pass Book and _____ to the Cash Book.

  1. Debited, Credited
  2. Bank, Account holder
  3. Fixed Deposit Account
  4. None of the above
  

Question 129: The seller gets the right to take back _____ of goods in case of default in payment.

  1. Cash price
  2. Interest
  3. Possession
  4. None of the above
  

Question 130: AS 30 deals with _____.

  1. Earning per share
  2. Presentation
  3. Revenue Recognition
  4. None of the above
  

Question 131: Depreciation is not an _____ of profit but, is a charge on profit.

  1. appropriation
  2. charge
  3. set aside
  4. set off
  

Question 132: As per _____ _____ concept every transaction must be supported by documentary evidence.

  1. Accrual concept
  2. Objective Evidence
  3. Disclosure concept
  4. None of the above
  

Question 133: Carriage on purchase of furniture is _____ expenditure.

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

Question 134: The method of writing every financial transaction in two accounts is called as _____ system of Book-keeping.

  1. double entry
  2. single entry
  3. multiple entry
  4. no entry
  

Question 135: Drawings are shown by way of deductions from _____ in a Balance Sheet.

  1. Assets
  2. Trial Balance
  3. Capital
  4. None of the above
  

Question 136: Sale refers to sale of

  1. goods
  2. assets
  3. scrap
  4. None of the above
  

Question 137: The assets which cannot be seen are called as _____ assets.

  1. cash receipt
  2. intangible
  3. tangible
  4. None of the above
  

Question 138: In hire purchase ownership is transferred on payment of _____ _____.

  1. Down Payment
  2. Last Instalment
  3. Interest
  4. None of the above
  

Question 139: The seller of goods on H.P. is _____ _____.

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

Question 140: Paid to an advocate to defend a suit claiming that the factory site belongs to the firm, the suit was

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

Question 141: Which concept provides a link between present and future?

  1. Going Concern
  2. Cost Concept
  3. Entity
  4. None of the above
  

Question 142: A _____ is issued for payment through Bank.

  1. cash receipt
  2. cheque
  3. voucher
  4. None of the above
  

Question 143: Scope of accounting is _____ than that of Book-keeping.

  1. Bad Debts
  2. wider
  3. Casting
  4. None of the above
  

Question 144: Call money not paid by shareholders is called _____.

  1. called-up
  2. calls in arrears
  3. Escrow
  4. All of the above
  

Question 145: In an error of principle, the debit and the credit are _____.

  1. two-sided error
  2. Equal
  3. One-sided error
  4. None of the above
  

Question 146: The company making up an I.P.O. has to open _____ Account with bank

  1. Escrow
  2. calls in advance
  3. capital reserve
  4. None of the above
  

Question 147: Preference shareholders are _____ of the company.

  1. owers
  2. uncalled capital
  3. premium
  4. None of the above
  

Question 148: _____ expenditure is shown in the Balance Sheet on asset side.

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

Question 149: The date of implementation of IFRS is _____.

  1. 01-07-2005 12.00.00 AM
  2. 01-04-2016 12.00.00 AM
  3. 31-03-2017 12.00.00 AM
  4. None of the above
  

Question 150: Investments are

  1. Non-trading assets.
  2. Intangible assets.
  3. Fictitious assets.
  4. Capital employed.
  

Question 151: Difference in trial balance may be transferred to _____ Account.

  1. principle
  2. commission
  3. Suspense
  4. None of the above
  

Question 152: The capital which carries right to dividend at fixed rate is called ____ share capital.

  1. calls in arrears
  2. deduction
  3. preference
  4. All of the above
  

Question 153: Exchange of goods for goods.

  1. Transaction
  2. Barter transaction
  3. Property
  4. None of the above
  

Question 154: Rent _____ is an income but rent _____ is an expense.

  1. Closing Capital
  2. Received, paid
  3. All of the above
  

Question 155: Selling a bill before the due date is known as _____.

  1. Assets
  2. Discounting
  3. Closing Capital
  4. All of the above
  

Question 156: Under _____ method balance sheet does not show stock at current price.

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

Question 157: The avoidance of charging depreciation render the profit _____.

  1. inaccurate
  2. accurate
  3. fictitious
  4. right
  

Question 158: Liabilities + Capital at the end = _____.

  1. Assets
  2. None of the above
  

Question 159: As per _____ concept fixed assets are distinguished from current assets.

  1. going concern
  2. Disclosure concept
  3. Cost Concept
  4. None of the above
  

Question 160: Under _____ method closing inventory is valued at latest rate.

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

Question 161: Under _____ method it is assumed that stock received first is issued first.

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

Question 162: Hire charges of a special machine ` 20,500

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

Question 163: Benefit of revenue expenditure is accrued during the current year only.

  1. Current year
  2. more than one year
  3. two year
  4. None of the above
  

Question 164: Goodwill is an _____ asset.

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

Question 165: _____ equity shares can be issued at discount.

  1. general reserve
  2. sweet
  3. discount
  4. All of the above
  

Question 166: Bills payable is a

  1. Liability
  2. capital
  3. asset
  4. None of the above
  

Question 167: _____ is expenditure on asset held for generation of interest / dividend.

  1. Revenue
  2. Investment
  3. Capital
  4. None of the above
  

Question 168: Depreciation is essential to arrive at a true _____ or _____.

  1. profit, loss
  2. income, expenses
  3. gain, loss
  4. receipt, payment
  

Question 169: Total Assets are = _____.

  1. Total Liabilities + Capital
  2. Net Profit
  3. Closing Capital
  4. All of the above
  

Question 170: AS–2 recognises _____ and _____ Methods.

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

Question 171: What is called monetary value of reputation?

  1. Goodwill
  2. copy rights
  3. medium term
  4. None of the above
  

Question 172: Rectification entries are done in ____.

  1. Journal proper
  2. Sales A/c
  3. Cash A/c
  4. None of the above
  

Question 173: Which concept stipulates that accounts must be honestly prepared and they must disclose all material information?

  1. Disclosure concept
  2. Entity concept
  3. Consistency concept
  4. None of the above
  

Question 174: The total of all _____ must agree with the total of all _____.

  1. debits, credits
  2. assets, liabilities
  3. income, expense
  4. gain, loss
  

Question 175: A _____ cheque can not be paid at the counter.

  1. credit memo
  2. crossed
  3. cash receipt
  4. None of the above
  

Question 176: The amount received in excess of face value of shares is called _____.

  1. securities premium
  2. general reserve
  3. All of the above
  

Question 177: _____ method assumes that stock received last is issued first.

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

Question 178: Balance of depreciation account is transferred to _____.

  1. Trading Account
  2. Profit & Loss Account
  3. Profit & Loss Appropriation Account
  4. Balance Sheet
  

Question 179: Transactions which are expressed in terms of money are called as _____ transactions.

  1. monetary
  2. Conservatism
  3. Cost Concept
  4. None of the above
  

Question 180: Two sided errors originate in the _____ _____.

  1. Journal
  2. Subsidiary books
  3. Suspense
  4. None of the above
  

Question 181: Assets minus liabilities is _____.

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

Question 182: Which is the system of Book-Keeping under which only records of cash and personal accounts are maintained?

  1. Single Entry System
  2. Double Entry System
  3. Cash System
  4. Hybrid System
  

Question 183: Replacement of old tyres by new one

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

Question 184: Purchased a lathe machine ` 1.50 as

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

Question 185: IASC was formed on _____.

  1. 31-03-2017 12.00.00 AM
  2. 01-04-2016 12.00.00 AM
  3. 01-07-2005 12.00.00 AM
  4. None of the above
  

Question 186: Sales - _____ = Gross Profit.

  1. Gross Profit
  2. Profit & Loss Account
  3. Cost of goods sold
  4. All of the above
  

Question 187: A person to whom we owe something is a ______.

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

Question 188: Capital employed for valuation of goodwill is equal to

  1. Average capital employed in business.
  2. Capital employed at the end of the year.
  3. Capital employed at the beginning of the year.
  4. Intangible capital employed.
  

Question 189: _____ method is not recognised by AS 2.

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

Question 190: Cash price method is known as _____ _____ method.

  1. Signing the agreement
  2. Payment of last instalment
  3. Asset Accrual Method
  4. None of the above
  

Question 191: _____ method assumes that stock received first is issued first.

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

Question 192: The shares issued on capitalisation of reserves are called _____.

  1. Share Application
  2. bonus shares
  3. capital reserve
  4. All of the above
  

Question 193: A debit balance in Trading Account represents _____.

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

Question 194: As per _____ convention the organisation should follow the same method year after year.

  1. Disclosure concept
  2. Consistency
  3. Entity
  4. None of the above
  

Question 195: Recovery of bad debts during the year ` 3,500

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

Question 196: Bank charges increase _____ balance.

  1. Fixed Deposit Account
  2. Bank Pass Book
  3. Credit Balance
  4. None of the above
  

Question 197: Wages paid for installation of machinery should be debited to _____.

  1. Machinery Account
  2. Wages Account
  3. Profit & Loss Account
  4. Balance Sheet
  

Question 198: By the amount of depreciation, the value of asset _____.

  1. decreases
  2. increases
  3. changes
  4. remains constant
  

Question 199: A documentary evidence of a transaction is called as _____.

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

Question 200: A credit balance in Trading Account represents _____.

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