Accounting for Managers Online MCQ Set 22

QN01. Which of the following items should not be entered in receipts and payments account of a club?

  1. Sale of old newspaper
  2. Loss on sale of old furniture
  3. Subscriptions received in advance
  4. Expenses for previous year
Answer

(B)Loss on sale of old furniture

QN02. Income and expenditure account reveals ______________.

  1. cash in hand
  2. surplus or deficiency
  3. capital account
  4. a. revenue account
Answer

(B)surplus or deficiency

QN03. Any written document in support of a business transaction is called a ______________.

  1. Voucher
  2. Bill
  3. Carbon copy
  4. Expense bill
Answer

(A)Voucher

QN04. Bills Receivable book is to keep record of ______________.

  1. a. bills received from customers
  2. a. bills received from supplier
  3. a. credit purchases
  4. a. credit sales
Answer

(A)bills received from customers

QN05. Book-keeping is mainly concerned with ______________

  1. recording of financial data relating to business operations
  2. designing the system in recording, classifying, summarizing the recorded data
  3. interpreting the data for internal and external end users
  4. only for internal purposes
Answer

(A)recording of financial data relating to business operations

QN06. Purchase of machinery is recorded in ______________

  1. sales book
  2. journal proper
  3. purchases book
  4. sales returns book
Answer

(B)journal proper

QN07. A bank pass book is a copy of ______________

  1. the cash column of a customers cash book
  2. the bank column of a customers cash book
  3. the customers account in the banks ledger
  4. the customer account in the suppliers ledger
Answer

(C)the customers account in the banks ledger

QN08. Revenue receipts are ______________ in the business.

  1. non-recurring
  2. Recurring
  3. Accumulating
  4. non-accumulating
Answer

(B)Recurring

QN09. Which account is generally used for rectification of errors?

  1. Memorandum account
  2. Suspense account
  3. Rectification account
  4. Adjustment account
Answer

(B)Suspense account

QN10. Balance sheet is a ______________

  1. statement
  2. Account
  3. Ledger
  4. Book
Answer

(A)statement

QN11. A person who draws a bill of exchange is known as the ______________

  1. Drawee.
  2. Drawer.
  3. Payer.
  4. Payee.
Answer

(B)Drawer.

QN12. Bank account is ______________

  1. Nominal account
  2. Real account
  3. Personal account
  4. none of these above
Answer

(C)Personal account

QN13. Cash book prepared on imprest system is ______________

  1. two column cash book
  2. cash book
  3. petty cash book
  4. purchase book
Answer

(C)petty cash book

QN14. Heavy advertising to launch a new product is a ______________

  1. capital expenditure
  2. deferred revenue expenditur
  3. other expenditure
  4. revenue expendtur
Answer

(C)other expenditure

QN15. When a bill is discharged, the acceptor debits ______________

  1. Creditors account
  2. Cash account
  3. Bills payable account
  4. Bills receivable account
Answer

(C)Bills payable account

QN16. Capital=

  1. Asset – Liabilitie
  2. Asse
  3. Liabilitie
  4. All the abov
Answer

(A)Asset – Liabilitie

QN17. Which one the following is an example of an intangible asset?

  1. Preliminary expenses
  2. Discount on issue of debentures
  3. Investments
  4. Copyrights
Answer

(D)Copyrights

QN18. Which one of the following is an example of personal account?

  1. Capital account
  2. Building account
  3. Cash account
  4. Investment account
Answer

(A)Capital account

QN19. Any expenditure incurred in order to reduce the operating expenses is ______________.

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

(A)capital expenditure

QN20. The method of account current usually employed by the banker is known as ______________.

  1. Daily balance method
  2. Red ink interest
  3. Current account
  4. Product method
Answer

(A)Daily balance method

QN21. A credit sale of goods to Shiva should be debited to ______________.

  1. Sales account
  2. Goods account
  3. Shiva account
  4. Purchase account
Answer

(C)Shiva account

QN22. Any donation received for a specific purpose is a ______________.

  1. Liability
  2. Assets
  3. revenue receipt
  4. capital receipts
Answer

(D)capital receipts

QN23. Purchase of Typewriter would result in ______________ of fund.

  1. Change
  2. application
  3. Service
  4. no flow
Answer

(C)Service

QN24. Depreciation deducted from the concerned ______________.

  1. Liability
  2. Asset
  3. Expenses
  4. Incomes
Answer

(B)Asset

QN25. Excess of income over expenditure in shown on the ______________ side of income and expenditure account.

  1. Credit
  2. Debit
  3. Upper
  4. Lower
Answer

(B)Debit

QN26. Subscriptions received in advance will figure in the ______________.

  1. balance sheet
  2. receipts and payment account
  3. income and expenditure account
  4. revenue account
Answer

(A)balance sheet

QN27. Specific donations received by a non-trading concern are usually ______________.

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

(B)capital receipt

QN28. Subscription received in advance is ______________.

  1. an income
  2. an asset
  3. a liability
  4. an expense
Answer

(C)a liability

QN29. ______________ is given to promote sales.

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

(B)Trade discount

QN30. The basic function of financial accounting is to ______________

  1. record all business transactions
  2. interpret the financial data
  3. assist the management in performing functions effectively
  4. information to management
Answer

(A)record all business transactions

QN31. Ledger is a book of ______________empor

  1. original entry
  2. final entry
  3. all cash entry
  4. all credit entry
Answer

(B)final entry

QN32. In triple column cash book, cash withdrawn from bank for office use will appear in ______________

  1. debit side of the cash book only
  2. both sides of the cash book
  3. credit side of the cash book only
  4. credit side of the bank account
Answer

(B)both sides of the cash book

QN33. The appropriate book to record credit purchase of machinery is ______________.

  1. purchases book
  2. journal
  3. cash book
  4. petty cash book
Answer

(A)purchases book

QN34. Interest on drawings is ______________

  1. expenditure for the business
  2. expense for the business
  3. gain for the business
  4. loss for the business
Answer

(C)gain for the business

QN35. A bill drawn and accepted for providing funds to a friend in need is known as ______________

  1. Cheque.
  2. promissory note.
  3. accommodation bill.
  4. demand bill.
Answer

(C)accommodation bill.

QN36. Which of the following is related to nominal account?

  1. Bank account
  2. Commission account
  3. Furniture account
  4. Interest received account
Answer

(B)Commission account

QN37. Goods destroyed by fire should be credited to ______________

  1. Purchases account
  2. Sales account
  3. Loss of goods by fire account
  4. Insurance account
Answer

(A)Purchases account

QN38. Errors which affect one account can be ______________

  1. errors of omission
  2. errors of principle
  3. errors of posting
  4. error of commission
Answer

(C)errors of posting

QN39. Bills are drawn by ______________

  1. Creditors
  2. Debtors
  3. Agent
  4. Brokers
Answer

(C)Agent

QN40. The Letter “c” is shown in the Cash book which means ______________

  1. consignment
  2. Commitment
  3. Contra Entry
  4. Cash entry
Answer

(C)Contra Entry

ed010d383e1f191bdb025d5985cc03fc?s=120&d=mm&r=g

DistPub Team

Distance Publisher (DistPub.com) provide project writing help from year 2007 and provide writing and editing help to hundreds student every year.