R4RIN – MCQs, Mock Tests | MBA MBA Accounting MCQ Question Set 9

While discounting the bill, debit should be given to ______

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

✅ Correct Answer: 1

Account current is a journal:

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

✅ Correct Answer: 2

The holder of a bill who endorses it is called

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

✅ Correct Answer: 1

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

✅ Correct Answer: 3

Wages paid for erection of machinery are debited to _______

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

✅ Correct Answer: 2

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 book

✅ Correct Answer: 2

Expenditure incurred on research is an example of _______

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

✅ Correct Answer: 3

Ledger is also called ________

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

✅ Correct Answer: 1

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

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

✅ Correct Answer: 3

The receipts and payments account begins with ________

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

✅ Correct Answer: 1

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

✅ Correct Answer: 4

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

✅ Correct Answer: 2

Income and expenditure account reveals ________

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

✅ Correct Answer: 2

Any written document in support of a business transaction is called a ________

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

✅ Correct Answer: 1

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

✅ Correct Answer: 1

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

✅ Correct Answer: 1

Purchase of machinery is recorded in _______

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

✅ Correct Answer: 2

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

✅ Correct Answer: 3

Revenue receipts are ______________ in the business.

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

✅ Correct Answer: 2

Which account is generally used for rectification of errors?

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

✅ Correct Answer: 2

Balance sheet is a _______

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

✅ Correct Answer: 1

A person who draws a bill of exchange is known as the _____

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

✅ Correct Answer: 2

Bank account is _______

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

✅ Correct Answer: 3

Cash book prepared on imprest system is ________

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

✅ Correct Answer: 3

Heavy advertising to launch a new product is a _______

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

✅ Correct Answer: 3

When a bill is discharged, the acceptor debits ____

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

✅ Correct Answer: 3

Capital=

1. Asset - Liabilitie
2. Asset
3. Liabilities
4. All the abov

✅ Correct Answer: 1

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

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

✅ Correct Answer: 4

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

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

✅ Correct Answer: 1

Any expenditure incurred in order to reduce the operating expenses is _____

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

✅ Correct Answer: 1

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

✅ Correct Answer: 1

A credit sale of goods to Shiva should be debited to _______

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

✅ Correct Answer: 3

Any donation received for a specific purpose is a _________

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

✅ Correct Answer: 4

Purchase of Typewriter would result in ______________ of fund.

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

✅ Correct Answer: 3

Depreciation deducted from the concerned _______

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

✅ Correct Answer: 2

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

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

✅ Correct Answer: 2

Subscriptions received in advance will figure in the _________

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

✅ Correct Answer: 1

Specific donations received by a non-trading concern are usually ______

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

✅ Correct Answer: 2

Subscription received in advance is _______

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

✅ Correct Answer: 3

________ is given to promote sales.

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

✅ Correct Answer: 2

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

✅ Correct Answer: 1

Ledger is a book of ______________empor

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

✅ Correct Answer: 2

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

✅ Correct Answer: 2

The appropriate book to record credit purchase of machinery is _______

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

✅ Correct Answer: 1

Interest on drawings is ______

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

✅ Correct Answer: 3

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.

✅ Correct Answer: 3

Which of the following is related to nominal account?

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

✅ Correct Answer: 2

Goods destroyed by fire should be credited to _______

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

✅ Correct Answer: 1

Errors which affect one account can be _______

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

✅ Correct Answer: 3

Bills are drawn by ______

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

✅ Correct Answer: 3