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Objective Type Set
Online MCQ Assignment
Question Solution
Solved Question

Q1:  Which of the following items is shown in the Income and Expenditure Account?
(A) Only items of capital nature
(B) Only items of revenue nature which are received during the year
(C) Only items of revenue nature pertaining to the period of accounts [Ans]
(D) Both the items of capital and revenue nature
Q2: A heavy revenue expenditure, which helps to generate revenue over more than one accounting year is termed as
(A) Preliminary Expenditure
(B) Revenue Expenditure
(C) Prepaid Expenditure
(D) Deferred Revenue Expenditure [Ans]
Q3: During the year Rs.96,000 was Debited as salary in the Income Expenditure Account. There was outstanding on Salary Account at the beginning and at the end of the year were Rs.12,000 and Rs.15,000 respectively. The amount of salary paid shown in Receipt and Payments Account would be
(A) Rs.84,000
(B) Rs.81,000
(C) Rs.93,000 [Ans]
(D) None of the above
Q4: Bank Reconciliation Statement is
(A) Ledger Account
(B) Part of Cash Book
(C) A separate statement [Ans]
(D) A sub-division of Journal
Q5: A firm employs Rs.2,00,000 as Capital and the normal rate of return is 10%. If the firm makes an average profit of Rs.30,000 per year, the value of Goodwill by considering it as the purchase of 3 years super profit will be :
(A) Rs.25,000
(B) Rs.20,000
(C) Rs.30,000 [Ans]
(D) None of the above
Q6: The capital of a Company comprises of equity shares of Rs.10 each amounting to Rs.10 lakhs and 10% Preference Shares of Rs.2 lakhs. Profit after tax for the year is Rs.4 lakhs. Dividend declared is @ 25% and current market price of Equity Share is Rs.80 each. The Price-earning ratio is
(A) 20 times
(B) 21.5 times
(C) 22.1 times
(D) None of the above [Ans]
Q7: Goods are sent to the Branch at cost plus 25%. The loading on invoice price is
(A) 20% [Ans]
(B) 25%
(C) 30%
(D) None of the above
Q8: Dual concept in accounting results in the following equation :
(A) Capital + Liability = Assets [Ans]
(B) Revenue = Expenses
(C) Capital + Profit = Assets
(D) Total Assets = Total Liability
Q9: Under which of the following heads is claims against a Company not acknowledged as debts shown?
(A) Unsecured Loan
(B) Current Liability
(C) Current Assets
(D) Contingent Liability [Ans]
Q10: Which of the following will be the highest amount?
(A) Paid-up Capital
(B) Authorised Capital [Ans]
(C) Subscribed Capital
(D) Reserve Capital
State whether the following statements are TRUE (T) or FALSE (F) :
Q1: Excess of hire-purchase price over cash price is known as penalty imposed on hire purchaser by the vendor.
Ans: False
Q2: Every Banking Company incorporated in India is required to transfer at least 20% of its profit to Reserve fund.
Ans: True
Q3: One of the objectives achieved by providing depreciation is saving cash resources for future replacement of assets.
Ans: True
Q4: As per concept of conservatism, the Accountant should provide for all possible losses but should not anticipate profit.
Ans: True
Q5: Wages incurred by departmental workers of a factory in installing a new machinery is a revenue expenditure.
Ans: False
Fill in the blanks in the following sentences by using the more appropriate word(s) from the alternatives shown in bracket :
Q1:  When there is no agreement among the partners, the profit or loss of the firm will be shared in their ____________ (capital ratio/equally).
Ans: Equally
Q2: In Hire Purchase transaction the right to sell or transfer of the goods remains with (Seller/ Hirer).
Ans: Seller
Q3: As per the going concern concept, the enterprise should continue to exist ____________ (in the foreseeable future/for limited period of time).
Ans: in the foreseeable future
Q4: Inauguration expenses on opening of a new Branch of an existing business will be ____________ (capital/revenue) expenditure.
Ans: Capital
Q5: Trail balance would not disclose ____________ (error of omission/omission of posting)
Ans: Error of omission
Match the following
(1) AS-3                                              (A) Accounting for Government grants
(2) AS-20                                            (B) Segmental Reporting
(3) Garner Vs Murray Rule                 (C) Cash Flow Statement
(4) AS-17                                            (D) Dissolution of Partnership
(5) AS-12                                            (E) Earning per Share
(F) No matching statements found
Ans :
(1) AS-3                                  —        (C) Cash Flow statement
(2) AS-20                                —        (E) Earning per share
(3) Garner Vs Murray Rule     —        (D) Dissolution of Partnership
(4) AS-17                                —        (B) Segmental Reporting
(5) AS-12                                —        (A) Accounting for Government grants

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