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Q1. The adjusting entry for difference between the invoice price and cost price of goods are shown in —–
A. Balance sheet
B. P & L a/c
C. Branch adjustment a/c
D. None of above
Answer
C. Branch adjustment a/c
Q2. Stock and debtors system is generally used when goods are sent to the branch at —–
A. Cost price
B. Invoice price
C. Both
D. None
Answer
B. Invoice price
Q3. H.O. sent goods to branch at invoice price 50% plus on original price. How many percentage of profit will be on Invoice price?
A. 20%
B. 25%
C. 33.33%
D. 16.67%
Answer
C. 33.33%
Q4. Goods sent by HO but not received by branch before the end of the year, by debiting it to goods in transit, which account should be credited?
A. Cash a/c
B. H.O. a/c
C. Trading a/c
D. Branch a/c
Answer
D. Branch a/c
Q5. If the opening balance of debtors is Rs 16,000 and closing balance is Rs 80,000, cash received from debtors is Rs 35,000 and bad debts is Rs 1,000, then what will be the amount of credit sales?
A. Rs 95000
B. Rs 105000
C. Rs 100000
D. Rs 110000
Answer
C. Rs 100000
Q6. The system of keeping accounts generally adopted by small size branches are:
A. Debtors system
B. Stock & Debtors system
C. Wholesale branch system
D. Final account system
Answer
A. Debtors system
Q7. Goods are supplied by the head office to dependent branches are at:
A. Cost price
B. Invoice price
C. Market price
D. Cost or invoice price
Answer
D. Cost or invoice price
Q8. Under debtors system which account is prepared by head office to calculate profit or loss of each branch:
A. capital account
B. debtors account
C. branch account
D. branch adjustment account
Answer
C. branch account
Q9. Under debtors system depreciation on fixed asset is —–
A. credited to branch A/c
B. debited to branch A/c
C. not shown in branch A/c
D. shown in debtors A/c
Answer
C. not shown in branch A/c
Q10. Branch Trading &Profit & Loss A/c is only a —– account not forming part of the full accounting system.
A. Single
B. Memorandum
C. Capital
D. Double
Answer
B. Memorandum
Q11. In final account system, Branch Trading and Profit & Loss A/c is prepared at —–
A. invoice price
B. cost price
C. cost & invoice price
D. market price
Answer
C. cost & invoice price
Q12. Under Final A/c system, the profit or loss made by the branch is determined by preparing
A. Branch stock A/c
B. Branch Debtors A/c
C. Branch Adjustment A/c
D. Branch Trading & Profit &Loss A/c
Answer
D. Branch Trading & Profit &Loss A/c
Q13. The Branch Account prepared under Final Account System is the nature of:
A. Nominal Account
B. Real Account
C. Personal Account
D. General Account
Answer
A. Nominal Account
Q14. Dependent branch makes:
A. Cash sales only
B. Credit sales only
C. Cash & Credit sales
D. Instalment sales
Answer
C. Cash & Credit sales
Q15. All branch expenses such as rent, salary are paid by H.O in case of:
A. independent branch
B. local branch
C. dependent branch
D. foreign branch
Answer
C. dependent branch
Q16. Branch Trading & Profit & Loss A/c is prepared to incorporate all —–
A. Revenue items
B. Capital items
C. Asset items
D. Past items
Answer
A. Revenue items
Q17. The difference between goods sent by H.O. and received by branch is known as —–
A. Goods in transit
B. Goods in warehouse
C. Goods in production
D. Goods in godown
Answer
A. Goods in transit
Q18. The stock reserve for unrealised profit will be —– to the H.O profit & Loss A/C
A. Debited
B. Credited
C. First credited then debited
D. Not shown
Answer
D. Not shown
Q19. —– —– account is prepared to adjust the loads included in the value of opening stock and closing stock.
A. Branch stock
B. Branch adjustment
C. Stock reserve
D. Branch P&L
Answer
B. Branch adjustment
Q20. —– —– account shows the shortage or surplus of stock.
A. Branch adjustment
B. Branch stock
C. Goods sent to branch
D. Branch P&L
Answer
B. Branch stock
Q21. The profit included in surplus or shortage of stock is transferred to —– account
A. Branch stock
B. Branch expenses
C. Branch adjustment
D. Branch P&L
Answer
C. Branch adjustment
Q22. The balance of branch adjustment account is transferred to —– account
A. Branch stock
B. Branch P&L
C. Branch Debtors
D. Branch expenses
Answer
B. Branch P&L
Q23. An ordinary partnership business can have:
A. Not more than 50 partners
B. Not more than 20 partners.
C. Any number of partners.
D. Any number than 2 partners.
Answer
B. Not more than 20 partners.
Q24. In the absence of an agreement profit and loss are divided by partners in the ratio of:
A. Capital
B. Equally
C. Time devoted by each partners
D. None of these.
Answer
B. Equally
Q25. In the absence of an agreement, Interest on loan advanced by the partner to the firm is allowed at the rate of:
A. 6%
B. 5%
C. 12%
D. 9%
Answer
A. 6%
Q26. Current accounts of the partners should be opened when the capitals are:
A. Fluctuating
B. Fixed
C. Either fixed or fluctuating
D. None of these
Answer
B. Fixed
Q27. Investment in partnership is made by introducing:
A. Cash
B. None – cash assets
C. Cash or non – cash assets
D. None of these.
Answer
C. Cash or non – cash assets
Q28. Partnership is formed by the partners by:
A. Written agreement
B. Oral agreement
C. Written or oral
D. None of these
Answer
C. Written or oral
Q29. Any partner who investments in the business but does not take active part in the business is:
A. Secret partner
B. Sleeping partner
C. Active partner
D. Nominal partner
Answer
B. Sleeping partner
Q30. The written agreement of partnership is called:
A. Partnership deed
B. Articles of association
C. Memorandum of association
D. Certificate of incorporation
Answer
A. Partnership deed
Q31. Under fixed capital methods, profit will be credited to:
A. Capital Account
B. Drawings
C. Current A/c
D. Profit & Loss
Answer
C. Current A/c
Q32. The members of partnership firm are individually called as:
A. Director
B. Investor
C. Partner
D. Manager
Answer
C. Partner
Q33. Liability of partners in a partnership business is:
A. Limited
B. Un-limited
C. Limited & unlimited
D. None of these
Answer
B. Un-limited
Q34. Capital of the partners are maintained by:
A. Fixed capital method
B. Fluctuating capital methods
C. By any two above methods
D. None of them.
Answer
C. By any two above methods
Q35. Drawings of the partners are:
A. Debited to profit & loss A/c
B. Credited to profit & loss A/c
C. Credited to capital A/c
D. Debited to capital A/c
Answer
D. Debited to capital A/c
Q36. A partners has to pay interest on drawings what is the entry in the personal A/c of the partner?
A. Credit partners capital A/c
B. Credit partners current A/c
C. Debit the partners current A/c
D. Debit partners current A/c
Answer
D. Debit partners current A/c
Q37. Salary paid to partner should be:
A. Debited to his current A/c
B. Credited to his current A/c
C. Credited to profit & loss appropriation A/c
D. None of above
Answer
D. None of above
Q38. Interest on capital Account:
A. Debited to profit & loss A/c
B. Credit to profit & loss A/c
C. Debit to profit & loss and credited to partners capital A/c
D. Only credited to partners capital A/c
Answer
C. Debit to profit & loss and credited to partners capital A/c
Q39. At the time of admission of a new partner the firm is:
A. Dissolved
B. Continued
C. Not effected
D. Re-organized
Answer
A. Dissolved
Q40. At the time of admission an incoming partner contributes as goodwill:
A. In cash
B. Does not pay cash
C. May or may not pay cash for goodwill
D. None of these.
Answer
C. May or may not pay cash for goodwill
Essentials of Financial Accounting BBA MCQs
- Essentials of Financial Accounting BBA MCQs Set 1
- Essentials of Financial Accounting BBA MCQs Set 2
- Essentials of Financial Accounting BBA MCQs Set 3
- Essentials of Financial Accounting BBA MCQs Set 4
- Essentials of Financial Accounting BBA MCQs Set 5
- Essentials of Financial Accounting BBA MCQs Set 6
- Essentials of Financial Accounting BBA MCQs Set 7
- Essentials of Financial Accounting BBA MCQs Set 8
