Accounting for Managers Online MCQ Set 21

QN01. Donations received by a non-profit organisation are usually a ______________.

  1. revenue receipt
  2. capital receipt
  3. capital expenditure
  4. revenue expenditur
Answer

(A)revenue receipt

QN02. Errors of carry forward from one year to another year affect ______________

  1. personal account
  2. real account
  3. nominal account
  4. both personal and real account
Answer

(A)personal account

QN03. Average due date can be called as ______________

  1. mean due date
  2. median due date
  3. mode due date
  4. zero date
Answer

(A)mean due date

QN04. The person upon whom the bill of exchange is drawn is called ______________

  1. Drawer
  2. Drawer
  3. Payee
  4. Maker
Answer

(A)Drawer

QN05. When furniture is sold for cash, the entry should be made in ______________.

  1. sales book
  2. cash book
  3. Journal.
  4. petty cash book.
Answer

(B)cash book

QN06. A Cheque received and paid into the bank on the same day id recorded in the ______________.

  1. a. cash column of the cash book
  2. a. bank column of the cash book
  3. a. both the cash and bank columns of the book
  4. a. the credit balance as per pass book
Answer

(B)a. bank column of the cash book

QN07. Amount paid for acquiring goodwill is ______________.

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

(D)deferred capital expenditure

QN08. Purchase journal is kept to record ______________.

  1. cash sales
  2. credit sales of assets
  3. credit sales of goods
  4. credit purchase
Answer

(C)credit sales of goods

QN09. Petty cash may be used to pay ______________.

  1. the expenses relating to postage and conveyance
  2. salaries and wages to the final staff
  3. for the purchase of furniture and fittings
  4. other recurring expense
Answer

(A)the expenses relating to postage and conveyance

QN10. Expenditure incurred by a publisher for acquiring copyrights is a ______________.

  1. capital expenditure
  2. reserve expenditure
  3. deferred reserve expenditur
  4. capital receipts
Answer

(A)capital expenditure

QN11. A gross profit is transferred to the ______________side of the profit and loss account.

  1. Debit
  2. Credit
  3. Current
  4. Asset
Answer

(B)Credit

QN12. Subscription received in advance by a club is shown on the ______________ side of the balance sheet.

  1. Liabilities
  2. Assets
  3. credit
  4. debit
Answer

(A)Liabilities

QN13. Interest received on special fund investments will be added to ______________ fund in the balance sheet.

  1. investment fund
  2. bank fund
  3. General
  4. specia
Answer

(D)specia

QN14. The information for the preparation of receipt and payments account is taken from ______________.

  1. cash book
  2. income and expenditure
  3. cash book and balance sheet
  4. revenue account
Answer

(A)cash book

QN15. Any profit on the sale of furniture of a cricket club will be taken to ______________.

  1. income and expenditure account
  2. cash account
  3. profit and loss account
  4. furniture account
Answer

(A)income and expenditure account

QN16. The main purpose of this ______________ accounting is to ascertain profit or loss during a specific period, to show financial position of the business.

  1. financial accounting
  2. cost accounting
  3. management account
  4. human resource accounting
Answer

(A)financial accounting

QN17. ______________ is allowed to encourage early cash payment.

  1. Cash discount
  2. Trade discount
  3. Quantity discount
  4. Price discount
Answer

(A)Cash discount

QN18. The prime function of accounting is to ______________

  1. record economic data
  2. provide the informational basis for action
  3. classifying and recording business transactions
  4. attain non-economic goals
Answer

(C)classifying and recording business transactions

QN19. The system of recording transactions based on dual aspect concept is called ______________

  1. double account system
  2. double entry system
  3. single entry system
  4. single account system
Answer

(B)double entry system

QN20. The cash book records ______________

  1. all cash payments
  2. all cash receipts
  3. all cash receipts and payments
  4. only credit payments
Answer

(C)all cash receipts and payments

QN21. Bank reconciliation statement is prepared by the ______________

  1. bank
  2. creditors of a business
  3. customer of a bank
  4. Suppliers
Answer

(C)customer of a bank

QN22. Errors which affect one side of an account are called ______________

  1. single sided errors
  2. double sided errors
  3. triple sided errors
  4. a. compensation error
Answer

(A)single sided errors

QN23. Bills payable book is a ______________.

  1. subsidiary book
  2. principal book
  3. ledger
  4. memorandum book
Answer

(B)principal book

QN24. Trading account is prepared to find out ______________

  1. gross profit or loss
  2. net profit or loss
  3. financial position
  4. position of the partners
Answer

(A)gross profit or loss

QN25. A bill of exchange payable after a certain period is known as ______________ bill.

  1. Time
  2. accommodation
  3. revenue
  4. Dishonored
Answer

(A)Time

QN26. A bill which is not an inland bill is a ______________ bill.

  1. Outwar
  2. inwar
  3. Foreig
  4. Ne
Answer

(C)Foreig

QN27. Donations received for a special purpose will be taken to ______________

  1. income and expenditure account.
  2. asset side of the balance sheet.
  3. liabilities side of the balance sheet.
  4. debit side of the ledger.
Answer

(C)liabilities side of the balance sheet.

QN28. Which one of the following is Current Asset ______________

  1. Buildi
  2. Furnitu
  3. Sto
  4. Investme
Answer

(C)Furnitu

QN29. Accounts receivable includes ______________

  1. sundry debtors
  2. bill receivable
  3. promissory note
  4. all of the above
Answer

(D)all of the above

QN30. While discounting the bill, debit should be given to ______________

  1. bank account
  2. bill receivable account
  3. acceptors account
  4. cash account
Answer

(A)bank account

QN31. Account current is a journal:

  1. True
  2. False
  3. Partly true
  4. Partly false
Answer

(B)False

QN32. The holder of a bill who endorses it is called

  1. Endorse
  2. Endorse
  3. Accepto
  4. Paye
Answer

(A)Endorse

QN33. The balance of cash account indicates ______________.

  1. net income for the period
  2. net loss for the period
  3. net cash on hand
  4. net worth of the business
Answer

(C)net cash on hand

QN34. Wages paid for erection of machinery are debited to ______________.

  1. Wages account
  2. Machinery account
  3. Profit and loss account
  4. Deferred wages account
Answer

(B)Machinery account

QN35. A Cheque received and deposited in the bank on the same day is recorded in the ______________.

  1. cash column of the cash book
  2. bank column of the cash book
  3. credited in the cash book
  4. debited in the cash boo
Answer

(B)bank column of the cash book

QN36. Expenditure incurred on research is an example of ______________.

  1. capital expenditure
  2. revenue expenditure
  3. deferred revenue expenditure
  4. partly capital expenditur
Answer

(C)deferred revenue expenditure

QN37. Ledger is also called ______________.

  1. principal book of accounts
  2. cash book
  3. subsidiary books
  4. petty cash boo
Answer

(A)principal book of accounts

QN38. Rs. 500 spent on servicing office typewriter should be debited to ______________.

  1. Miscellaneous expenses account
  2. Typewriter account
  3. Repairs account
  4. Services account
Answer

(C)Repairs account

QN39. The receipts and payments account begins with ______________.

  1. debit balance
  2. credit balance
  3. no balance
  4. normal balance
Answer

(A)debit balance

QN40. A debit balance in the income and expenditure account denotes excess of ______________over______________.

  1. income, expenditure
  2. assets, liabilities
  3. liabilities, assets
  4. expenditure, income
Answer

(D)expenditure, income

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