BBI Financial Accounting - I MCQ

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Question 201: AS 20 deals with _____ _____ _____.

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

Question 202: Goodwill is not a _____ asset.

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

Question 203: Wages paid for installation of machinery is a _____ expenditure.

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

Question 204: Depreciation is provided on _____ _____.

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

Question 205: Books of accounts can be produced as an _____ in a court of law.

  1. evidence
  2. Debtor
  3. Creditor
  4. None of the above
  

Question 206: What is surplus of income over expenses?

  1. Profit
  2. Financial position
  3. Loss
  4. None of the above
  

Question 207: Depreciation is charged on _____ assets.

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

Question 208: A book of daily records.

  1. Journal
  2. Ledger
  3. Cash book
  4. None of the above
  

Question 209: There are two types of standards _____ and _____.

  1. Consolidated financial statement
  2. Recommendatory, Mandatory
  3. Inventory Valuation
  4. None of the above
  

Question 210: Liquid assets are convertible into

  1. cash
  2. liability
  3. debtors
  4. All of the above
  

Question 211: The profit on re-issue of forfeited shares is credited to _____.

  1. calls in advance
  2. capital reserve
  3. uncalled capital
  4. All of the above
  

Question 212: AS 2 deals with _____ _____.

  1. Inventory Valuation
  2. Impairment of assets
  3. Borrowing Cost
  4. None of the above
  

Question 213: ASB was constituted on _____.

  1. 21st April,1978
  2. 21st April,1977
  3. 21st April,1987
  4. None of the above
  

Question 214: Under _____ method, fluctuations in prices are overcome.

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

Question 215: Unpaid money on shares is disclosed as _____ from share capital.

  1. deduction
  2. general reserve
  3. reserve capital
  4. None of the above
  

Question 216: _____ _____ is initial payment.

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

Question 217: Under capitalisation of super profit method, goodwill is equal to

  1. Capitalised value of super profit at normal rate of return.
  2. Super profit.
  3. Normal profit less super profit.
  4. Average profit.
  

Question 218: The goods remaining unsold are

  1. Stock
  2. purchases
  3. hares
  4. None of the above
  

Question 219: Calls in advance shown under _____.

  1. Article of Association
  2. Forfeited Shares
  3. other current liability
  4. None of the above
  

Question 220: Which concept does not recognise the realisable value, the replacement value or the real worth of an asset?

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

Question 221: Took loan from SBI ` 5,00,000

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

Question 222: A debit balance of the Pass Book represents _____.

  1. Bank Pass Book
  2. Credit Balance
  3. Overdraft
  4. None of the above
  

Question 223: Accounting principles are _____.

  1. Going Concern
  2. Consistency
  3. manmade
  4. None of the above
  

Question 224: _____ is an excess of assets over liabilities.

  1. Capital Fund
  2. Specifit Fund
  3. Providing services
  4. None of the above
  

Question 225: Fictitious assets are

  1. intangible
  2. convertible into cash
  3. tangible
  4. All of the above
  

Question 226: The asset which is expected to be converted into cash is called as _____ asset.

  1. copy rights
  2. current
  3. Profit-making
  4. All of the above
  

Question 227: A person who owes the amount to the business.

  1. Debtor
  2. Creditor
  3. Bad Debts
  4. None of the above
  

Question 228: Net sales is the difference between gross sales and _____.

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

Question 229: Bank Pass Book is an _____ of account holder's transactions with the bank.

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

Question 230: The amount of depreciation goes on decreasing under _____ method.

  1. WDV
  2. fixed
  3. written down value
  4. constant
  

Question 231: A Discount reserve on debtors has a _____ balance.

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

Question 232: The immediate recognition of loss is supported by the underlying principle of :

  1. Matching, Consistency
  2. Conservatism
  3. Going Concern
  4. None of the above
  

Question 233: _____ expenditure is shown in Profit & Loss Account.

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

Question 234: Gross Profit = (Sales + Closing Stock) - (Opening Stock + Purchases + _____ ).

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

Question 235: AS 19 deals with _____.

  1. Interim financial Reporting
  2. Leases
  3. Borrowing Cost
  4. None of the above
  

Question 236: Calls in advance can be received if it is authorised by _____.

  1. Share Application
  2. premium
  3. Article of Association
  4. None of the above
  

Question 237: Liability of shareholders is _____.

  1. limited
  2. owers
  3. premium
  4. None of the above
  

Question 238: Depreciation = Cost of the Asset less ______ / Estimated Working Life.

  1. Scrap Value
  2. Reduced Value
  3. Zero Value
  4. Increased Value
  

Question 239: Property Accounts show _____ balance.

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

Question 240: Under _____ method lots of stock should be identified.

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

Question 241: _____ method is suitable for perishable goods.

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

Question 242: Mistakes involving wrong posting are called as errors of _____.

  1. Suspense
  2. Posting
  3. Equal
  4. None of the above
  

Question 243: In fixed instalment method. the amount of depreciation is ____ year after year.

  1. fluctuating
  2. fixed
  3. changing
  4. inflating
  

Question 244: The account to which the difference in the trial balance is transferred is the _____ account.

  1. Sales Return
  2. Suspense
  3. Assets
  4. All of the above
  

Question 245: In _____ method, Balance Sheet shows current cost of stock.

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

Question 246: A concern established for carrying out charitable activities.

  1. Trading concern
  2. Non-Trading concern
  3. Goods
  4. All of the above
  

Question 247: _____ is a statement of assets and liabilities of a business on a particular date.

  1. Trial Balance
  2. Sales Return
  3. Balance sheet
  4. None of the above
  

Question 248: _____ indicates merely a temporary decrease or increase in value.

  1. Market Value
  2. Cost
  3. Realisable Value
  4. Mark up Value
  

Question 249: _____ _____ _____ method is known as credit purchase method.

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

Question 250: _____ _____ is made when payment of expenses is made.

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

Question 251: In _____ method, stock is over valued when the prices are rising.

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

Question 252: Hire purchase price = _____ _____.

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

Question 253: The commodity in which the proprietor is dealing is ______.

  1. goods
  2. expenses
  3. fictitious
  4. All of the above
  

Question 254: Totalling of journal or ledger.

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

Question 255: _____ expenditure is non-recurring.

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

Question 256: A Bills Receivable is

  1. an asset
  2. a liability
  3. capita
  4. None of the above
  

Question 257: The shares issued applied and allotted by a company is called _____.

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

Question 258: Book-Keeping is a systematic record of _____ transactions.

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

Question 259: Book-Keeping is an _____ of recording transactions in a systematic manner.

  1. Journal
  2. Ledger
  3. art
  4. None of the above
  

Question 260: The ICAI has issued _____ standards.

  1. 31
  2. 32
  3. 30
  4. 20
  

Question 261: Amount which is not recoverable.

  1. Bad Debts
  2. Debtors
  3. Debts
  4. None of the above
  

Question 262: _____ _____ _____ is used for depositing cash into Bank.

  1. cash receipt
  2. credit memo
  3. pay in slip
  4. None of the above
  

Question 263: Initial amount paid on signing the agreement is called _____ _____.

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

Question 264: Under _____ system, amount of depreciation changes every year.

  1. WDV
  2. written down value
  3. fluctuating
  4. constant
  

Question 265: The total capital of a company is divided into small parts of same value is called _____.

  1. general reserve
  2. shares
  3. deducted
  4. All of the above
  

Question 266: Depreciation is derived from a Latin word _____.

  1. Depretium
  2. Depreciation
  3. Deprica
  4. Deprecial
  

Question 267: AS 21 deals with _____ _____ _____.

  1. Borrowing Cost
  2. Interim financial Reporting
  3. Consolidated financial statement
  4. None of the above
  

Question 268: The amount of capital that a company asks its members to pay is called _____ capital.

  1. uncalled capital
  2. general reserve
  3. called-up
  4. None of the above
  

Question 269: Debit balance on Suspense Account is shown on _____ side of Balance Sheet.

  1. Asset
  2. principle
  3. Error of Commission
  4. None of the above
  

Question 270: Discount received for prompt payment is recorded in the Cash Book on _____ side.

  1. Balance sheet
  2. Credit side
  3. Assets
  4. All of the above
  

Question 271: Every business transaction has effect on at least _____ accounts.

  1. three
  2. two
  3. cash
  4. capital
  

Question 272: _____ expenditure does not give any future benefits.

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

Question 273: US GAAP are issued by _____.

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

Question 274: As per ____ concept business is separated from the proprietor.

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

Question 275: Goodwill is

  1. An intangible asset.
  2. An intangible fixed asset.
  3. An intangible fixed asset having a realisable value.
  4. Fictitious asset.
  

Question 276: A sole proprietor decided to use the same bank account for his personal affairs as for his business. Which of the accounting principle is violated?

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

Question 277: ____ value is the value which an asset realises at the expiry of its working life.

  1. Market
  2. Cost
  3. Patent
  4. Scrap
  

Question 278: Goodwill may be valued on _____ of a partner.

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

Question 279: Profit & Loss Account is _____ by the amount of depreciation.

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

Question 280: Rectification entries are passed in the _____.

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

Question 281: Erection of a gas boiler to replace the old

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

Question 282: Sales - Cost of Goods sold = _____.

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

Question 283: Issue of shares at a price higher than the face value is called as issue at a _____.

  1. premium
  2. equity
  3. owers
  4. None of the above
  

Question 284: Closing stock is entered in a Trading Account on the _____ side.

  1. Gross Profit
  2. Credit side
  3. Debit side
  4. All of the above
  

Question 285: Under _____ System, the amount of depreciation remains constant every year.

  1. Fixed Instalment
  2. Reducing
  3. WDV
  4. Cash
  

Question 286: Normal profit is decided on the basis of _____ _____ of return.

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

Question 287: A company receiving amount less than face is called issue of shares at _____.

  1. over subscription
  2. discount
  3. Share Application
  4. All of the above
  

Question 288: Under _____ inventory system, stock is valued by physical stock taking.

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

Question 289: Cost incurred for production of goods or services is called as an _____.

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

Question 290: Errors which compensate the effect of each others are called as _____.

  1. Error of principle
  2. Error of commission
  3. Compensating errors
  4. None of the above
  

Question 291: _____ receipts are shown as income in Profit & Loss Account.

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

Question 292: Excess of expenses over revenue is

  1. Loss
  2. income
  3. Profit
  4. None of the above
  

Question 293: Cancellation of shares for non-payment of call is called _____ of shares.

  1. forfeiture
  2. uncalled capital
  3. Escrow
  4. None of the above
  

Question 294: The evidence of a transaction is

  1. a voucher
  2. a cash memo
  3. a bill
  4. All of the above
  

Question 295: Cost of business connection is called as ______.

  1. cash receipt
  2. goodwill
  3. copy rights
  4. None of the above
  

Question 296: The obligation which is payable within one year is a _____ liability.

  1. expenses
  2. fictitious
  3. current
  4. All of the above
  

Question 297: The expenditure which gives benefit for a longer period is called as _____ expenditure.

  1. capital
  2. expenses
  3. fictitious
  4. None of the above
  

Question 298: Employee stock options outstanding appear in Balance Sheet under _____.

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

Question 299: Under straight line method the asset is reduced to its _____ by the end of its estimated life.

  1. zero
  2. nil
  3. negative figure
  4. positive figure
  

Question 300: Depreciation = Cost of Asset less Scrap Value/______of Asset

  1. Scrap Value, Economic Life
  2. Life
  3. Span
  4. Cost
  

Question 301: (Opening Capital + Interest on Capital + Profit) - (Drawings) gives _____.

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

Question 302: Profit / Loss is ascertained by _____ revenue with expenses.

  1. Money measurement
  2. Matching
  3. Entity
  4. None of the above
  

Question 303: Suspense a/c is created for recording the _____.

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

Question 304: _____ is a dealings between two or more persons.

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

Question 305: AS 3 deals with _____ _____.

  1. Cash Flow statement
  2. Earning per share
  3. Impairment of assets
  4. None of the above
  

Question 306: Non-Profit Organisation is established for _____ _____.

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

Question 307: A person to whom the amount is payable.

  1. Debtor
  2. Creditor
  3. Bad Debts
  4. None of the above
  

Question 308: As per Table F, interest on calls in arrears is charged @ _____.

  1. 0.12
  2. 0.15
  3. 0.14
  4. All of the above
  

Question 309: Pulling out old building and rebuilding it ` 2,50,000

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

Question 310: Under which concept comparison of one accounting period with the other is possible?

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

Question 311: Legal expenses incurred in raising debenture loans

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

Question 312: Purchases refer to purchases of _____.

  1. Transaction
  2. cash receipt
  3. goods
  4. None of the above
  

Question 313: _____ _____ is the price at which goods are purchased today for full payment.

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

Question 314: Excess of revenue over expenses is called as _____.

  1. profit
  2. loss
  3. stock
  4. All of the above
  

Question 315: Interest on Bank Deposit is entered in the Cash Book on _____ side.

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

Question 316: AS 9 deals with _____ _____.

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

Question 317: Total Sales of the year = _____. sales _____. sales.

  1. Cash, Net Credit
  2. Gross Profit
  3. Net Profit
  4. None of the above
  

Question 318: Generally _____ items are sold on hire purchase basis.

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

Question 319: Normal advertising expenditure

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

Question 320: The buyer of goods on H.P. basis is _____.

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

Question 321: Gradual and permanent decrease in the value of asset is known as _____.

  1. fluctuation
  2. depreciation
  3. appreciation
  4. gradual
  

Question 322: Expenses decrease

  1. Net worth
  2. Loss
  3. drawing
  4. All of the above
  

Question 323: Depreciation is _____ in the value of asset.

  1. appreciation
  2. change
  3. increase
  4. decline
  

Question 324: _____ _____ is issued when cash is received.

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

Question 325: In the event of part allotment of shares excess application money can be _____.

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

Question 326: The money received in excess of called up amount is credited to _____.

  1. uncalled capital
  2. calls in advance
  3. face value
  4. All of the above
  

Question 327: Excess of expenditure over income is _____.

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

Question 328: Excess of income over expenditure is _____.

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

Question 329: _____ discount is recorded in the books of accounts.

  1. cash
  2. voucher
  3. profit
  4. None of the above
  

Question 330: The Bank Statement is sent by _____ to _____.

  1. Bank, Account holder
  2. Cheque, Cash
  3. Both
  4. None of the above
  

Question 331: Interest = Hire purchase price – _____ _____.

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

Question 332: Total Assets - Capital = _____.

  1. Liabilities
  2. Net Profit
  3. Trial Balance
  4. All of the above
  

Question 333: If the application is not accepted the money received should be _____.

  1. capital reserve
  2. refunded
  3. retained
  4. All of the above
  

Question 334: Double entry system of book-keeping denotes that every business transaction has _____ effects.

  1. two-fold
  2. three-fold
  3. no
  4. one-fold
  

Question 335: _____ method is applied when the lots of goods are not identifiable.

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

Question 336: The first reporting date as per IFRS_____.

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

Question 337: _____ _____ is issued when goods are sold for cash.

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

Question 338: Addition of a computer lab to the building ` 60,000

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

Question 339: Documentation charges regarding purchase of building is a _____ expenditure.

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

Question 340: _____ is a fund established for specific purpose.

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

Question 341: Interest on calls in advance should not exceed _____.

  1. 0.06
  2. 0.07
  3. 0.1
  4. None of the above
  

Question 342: Under _____ method, the cost of asset cannot be reduced to Zero.

  1. WDV
  2. written down value
  3. Straight Line
  4. Constant
  

Question 343: The method in which rate of depreciation remains constant but not amount of depreciation is known as _____.

  1. WDV
  2. Straight Line
  3. written down value method
  4. Constant
  

Question 344: Cost of repairing the building

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