R4RIN – MCQs, Mock Tests | MBA MBA Accounting MCQ Question Set 8

Goodwill account is related to _______

1. Nominal account
2. Personal account
3. Real account
4. Tangible account

✅ Correct Answer: 3

The credit balance of bank account indicates _______

1. amount payable by the bank
2. amount payable to the bank
3. cash at bank
4. loan from bank

✅ Correct Answer: 2

The statement sent along with purchase return is ________

1. credit note
2. bills payable book
3. debit note
4. purchases return book

✅ Correct Answer: 1

Depreciation is provided on ______________

1. working capita
2. current asset
3. fixed asset
4. intangible assets

✅ Correct Answer: 3

An example of revenue expenditure is ______

1. Purchase of land
2. Salaries
3. Lease
4. Purchase of buildings

✅ Correct Answer: 2

At the time of endorsement of a bill, the drawer credits ______

1. the .drawee
2. endorsees personal account
3. bills receivable account
4. bills for collection account

✅ Correct Answer: 3

In accounting the benefit receiving aspect is said to be

1. Debi
2. Credi
3. Debit and Credi
4. None of these

✅ Correct Answer: 1

Summary of all balances is known as

1. Ledge
2. Journa
3. Subsidiary book
4. Trial balance.

✅ Correct Answer: 4

The excess of current assets over current liabilities is called ________

1. Net tangible worth
2. Networth
3. Gross working capital
4. Net working capital

✅ Correct Answer: 3

Bills payable book is a ________

1. subsidiar
2. a. principal book
3. a. ledger
4. a. memorandum book

✅ Correct Answer: 1

Bank Reconciliation statement is _________

1. ledger account
2. part of the cash book
3. separate statement
4. a sub division of the journal

✅ Correct Answer: 3

The distinction between capital and revenue is necessary for the preparation of ______

1. fund flow statement
2. receipts and payment account
3. final accounts
4. cash flow statement

✅ Correct Answer: 4

If payment is made on the average due date it results in ______

1. loss of interest to the creditor
2. loss of interest to the debtor
3. no loss of interest to either of them
4. loss of interest to both the creditor and debtor

✅ Correct Answer: 3

A sale of goods to vidhya for cash should be debited to ______________.

1. Vidhya account
2. Cash account
3. Sale of goods account
4. Purchases account

✅ Correct Answer: 2

Purchases for office furniture on account is recorded in _________

1. general journal
2. cash book
3. purchases book
4. sales book

✅ Correct Answer: 2

Payment of compensation to a worker who has been discharged from service is a ___________

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

✅ Correct Answer: 2

The following items are shown in profit and loss appropriation account _________

1. Dividend declared
2. Discount on issue of shares
3. Non-operating expenses
4. Current assets

✅ Correct Answer: 1

Wages paid to workers must be debited to ______________ account

1. Wages
2. Machinery
3. Factory expenses
4. Offices expenses

✅ Correct Answer: 1

Receipts and payment account record receipt and payments of _______

1. revenue nature only
2. capital nature only
3. both revenue and capital nature
4. capital receipts

✅ Correct Answer: 3

In a receipts and payments account the payments are recorded on the ______________ side.

1. credit
2. debit
3. Upper
4. Lower

✅ Correct Answer: 1

Any revenue expense for when a separate fund is available will be _________

1. debited to the separate fund
2. debited to income and expenditure account
3. capital issued and shown in the balance sheet
4. credited to the separate fund

✅ Correct Answer: 1

Donations received by a non-profit organisation are usually a ______

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

✅ Correct Answer: 1

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

✅ Correct Answer: 1

Average due date can be called as _______

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

✅ Correct Answer: 1

The person upon whom the bill of exchange is drawn is called _______

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

✅ Correct Answer: 1

When furniture is sold for cash, the entry should be made in _______

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

✅ Correct Answer: 2

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

✅ Correct Answer: 2

Amount paid for acquiring goodwill is _______

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

✅ Correct Answer: 4

Purchase journal is kept to record _______

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

✅ Correct Answer: 3

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

✅ Correct Answer: 1

Expenditure incurred by a publisher for acquiring copyrights is a ________

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

✅ Correct Answer: 1

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

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

✅ Correct Answer: 2

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

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

✅ Correct Answer: 1

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

1. investment fund
2. bank fund
3. General
4. Special

✅ Correct Answer: 4

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

✅ Correct Answer: 1

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

✅ Correct Answer: 1

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

✅ Correct Answer: 1

______ is allowed to encourage early cash payment.

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

✅ Correct Answer: 1

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

✅ Correct Answer: 3

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

✅ Correct Answer: 2

The cash book records _______

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

✅ Correct Answer: 3

Bank reconciliation statement is prepared by the _______

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

✅ Correct Answer: 3

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

✅ Correct Answer: 1

Bills payable book is a ___________

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

✅ Correct Answer: 2

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

✅ Correct Answer: 1

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

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

✅ Correct Answer: 1

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

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

✅ Correct Answer: 3

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.

✅ Correct Answer: 3

Which one of the following is Current Asset ______

1. Buildi
2. Furniture
3. Sto
4. Investment

✅ Correct Answer: 3

Accounts receivable includes ________

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

✅ Correct Answer: 4