BEST HIGHER SECONDARY SCHOOL [Type text] [Type text]

BEST HIGHER SECONDARY SCHOOL

MCQ ASSIGNMENT
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1. Which of the following is not a limitation of accounting?
(A) Based on accounting conventions
(B) Evidence in Legal Matters
(C) Incomplete Information
(D) Omission of Qualitative Informations
2. Which one of the following is not an objective of accounting?
(A) To provide information about the assets, liabilities and capital of the enterprise.
(B) To provide information about the private assets and liabilities of the proprietor
(C) To provide information regarding the profit and loss of the enterprise.
3. Which of the following transactions is of a financial character and will be recorded in the business?
(A) Goods taken from the business by the proprietor for her personal use
(B) Interviewing the candidates for employment
(C) Sale of Household furniture ^5,000
(D) Received an order for sales of goods

4. Book-keeping is mainly concerned with :
(A) Recording of financial data
(B) Designing the systems of summarising the recorded data
(C) Interpreting the data for internal and external users
(D) Preparation of financial statements of the business enterprise


5. Which of the following is the most relevant accounting information for taxation authorities?
(A) Cash Balance of the firm (B) Book Value of the Fixed Assets
(C) Credit Sales of the year (D) Profit generated during the year

6. Current Liabilities include :
(A) Bills Payable (B) Creditors
(C) Outstanding Expenses (D) All of the above

7. Which of the following is capital expenditure?
(A) Wages (B) Wages paid for building construction
(C) Repair expenses of building (D) Advertisement Expenses

8. A person who owes money to the firm is called .............................
(A) Debtor (B) Creditor
(C) Supplier (D) None of these

9. Goods means :
(A) Commodity to be bought and sold
(B) Commodity to be bought but not to be sold
(C) Commodity to be used as an asset
(D) All of the above

10. Trade Discount is :
(A) Which is allowed at the time of receiving the payment
(B) Which is allowed at the time of sale of goods
(C) Which is allowed both at the time of receiving payment and sale of goods
(D) Allowed in all of the above

BEST HIGHER SECONDARY SCHOOL [Type text] [Type text]
11. Cash Discount is :
(A) Which is received at the time of making the payment
(B) Which is allowed at the time of sale of goods
(C) Which is received at the time of purchase of goods
(D) Which is received both at the time of making payment and purchase of goods
12. Current assets do not include :
(A) Debtors (B) Motor Car
(C) Bank Balance (D) Prepaid Expenses
13. Tangible Assets do not include :
(A) Goodwill (B) Furniture
(C) Stock (D) Cash
14. Which of the following will be treated as drawings :
(A) Withdrawing money for payment of salary to employees
(B) Withdrawing money for payment to creditors -
(C) Withdrawing money from business for private expenses
(D) Withdrawing money for purchase of asset

15. Main feature of business transaction is :
(A) It involves an economic activity
(B) It results in a change in the financial position of the firm
(C) Change must be capable of being expressed in terms of money
(D) All of the above
16. Current Liabilities do not include :
(A) Bills Payable (B) Creditors
(C) OutstandingExp. (D) Debentures
17. Purchases refers to the buying of
(A) Stationery for office use (B) Assets for the factory
(C) Goods of resale (D) Investment
18. The term sales is used only for the sales of.......... and is never used for the sale of ...........
(A) Assets, Investments (B) Assets, Goods
(C) Intangible Assets, Goods (D) Goods, Assets
19. Out of the following assets which one is NOT an intangible asset?
(A) Patents (B) Investments
(C) Goodwill (D) Trademark

20. At the end of financial year, during which sale of goods was wroth 2,00,000, the closing stock is valued at
10,000. This is ..........
(A) An event
(B) A transaction
(C) Both an event as well as transaction
(D) None of (A) and (B)
21. Whichof the following is the Capital expenditure?
(A) Wages paid for repair of building
(B) Wages paid for white washing of building
(C) Wages paid for construction of building
(D) Wages paid for cleaning of building
22. Cash discount received will be recorded in cash book in :
(a) Discount column on debit side
(b) Discount column on credit side
(c) Cash column on debit side
(d) Cash column on credit side
23. When a cheque deposited into bank is dishonoured by bank, it will be recorded in cash book in :
(a) Bank column on debit side (b) Bank column on credit side
(c) Cash column on debit side (d) Cash column on credit side
24. On 1st April 2006, balance of cash column of cash book was 10,000. After receiving 2,000 from Anil,
BEST HIGHER SECONDARY SCHOOL [Type text] [Type text]
giving a cheque of 3,200 to Sunil and making payment of wages 500, balance of cash will be :
(a) 11,500 (b) 8,300 (c) 8,800 (d) 6,300
25. On 1st May 2006, cash book bank overdraft balance was 2,000. On depositing 10,000 into bank and giving a
cheque of 7,200 for rent, the balance will be : (a) 4,800 Dr. (b) 4,800 Cr. (c)800 Dr. (d)800 Cr.

26. Which of the following is not recorded in cash book :
(a) Trade Discount (b) Bad Debts (c) Credit Purchases (d) All of the above
27. Which is not contra entry in the cash book
(a) Cash deposited into bank
(b) Cash withdrawn from bank
(c) Cash withdrawn from bank for personal use
(d) None of these
28. If the debit as well as credit aspects of a transaction are recorded in the cash book, it is called ..............
(a) Contra Entry (b) Compound Entry
(c) Opening Entry (d) Adjustment Entry
30. Cash book is a type of................... but can be treated as a ............. of account.
(a) Subsidiary Book, Principal Book
(b) Principal Book, Subsidiary Book
(c) Subsidiary Book, Subsidiary Book
(d) Principal Book, Principal Book
31. Which of the following may have both Dr. or Cr. Balance
(a) Only cash column of cash book
(b) Only bank column of cash book
(c) Both cash and bank column
(d) Neither bank nor cash column
32. Imprest amount 5,000. What will be the amount of re-imbursement if following expenses were
incurred by the petty cashier during the month-Telephone = 1,450, Tiffin = 1,050, small Repairs =
500, General expenses = 400.
(a) 1,600 (b) 3,400
(c) 3,050 (d) 3,000
33. A trader entered into following transactions. As a result, total of will be :
(i) Goods purchased from Gaurav 8,000
(ii) Goods purchased from Sudhir for Cash 10,000
(iii) Goods purchased from Kamal on credit 25,000
(iv) Machinery purchased from Dinesh on credit 40,000
(A) 83,000 (B) 73,000
(C) 33,000 (D) 25,000
34. When the goods are sold in cash, the entry will be recorded in :
(a) Cash Book (b) Purchases Book (c) Profit & Loss A/c (d) Sales Book

35. Following are some examples of contra transactions. State which of them is not correct:
(a) Withdrew from bank for personal expenses
(b) Deposited into bank
(c) Withdrew cash from bank for office
(d)None of these

36. Which of the following is recorded in the cash book ?
(a) Goods purchased for 500 (b) Credit sales of 500
(c) Goods purchased from Ram Lal for 500 (d) All of these

37. The balance of cash column of cash book is :
(a) Debit balance (b) Credit balance
(c) Either debit or credit (d) Not Balanced

BEST HIGHER SECONDARY SCHOOL [Type text] [Type text]
38. Outstanding expenses, when paid, will appear :
(a) On the receipt side of the cash book
(b) On the payment side of the cash book
( c) As a contra entry
(d) In balance Sheet

39. If goods were sold to Ankit, the entry will be recorded :
(a) In the Cash Book (b) In the Sales Book
(c) In the Journal Proper (d) In the Stock Book
40. If Mohan has sold goods for 3,000; 2,000 received in cash and balance through c the transaction will be
recorded in the cash book as :
(a) 3,000 on the credit side
(b) 3,000 on the debit side
(c) 2,000 in cash column and ? 1,000 in bank column of the cash book
(d) 3,000 in the cash column debit side
41. If Sohan has purchased goods for 5,000; 4,000 paid in cash and 1,000 paid cheque, the transaction will be
recorded in the cash book as :
(a) 5,000 on the credit side
(b) 4,000 in cash column and 1,000 in bank column, debit side
(c) 4,000 in cash column and 1,000 in bank column, credit side
(d) 4,000 in bank column and 1,000 in cash column, credit side
42. The negative balance of cash column in cash book is shown as :
(a) Credit balance (b) Debit balance
(c) Either debit or credit (d) Statement is wrong
43. Negative balance of bank is known as:
(a) Cash in hand (b) Cash at bank (c) Bank Loan (d) Bank Overdr
44. Which of the following is contra entry ?
(a) Withdrew from bank for private use
(b) Direct deposit by the customer
(c) Cash deposited into the bank
(d) Cheque received from the customer and deposited into the bank on the same day
45. Following are the kind of cash book except:
(a) Sales book (b) Three-column cash book
(c) Double column cash book (d) None of these
46. Balance of cash book is shown in :
(a) Profit and Loss A/c (b) Trading account (c) Balance Sheet (d) None of these
47. Balance of petty cash is :
(a) Profit (b) Loss (c) Recouped (d) Asset
48. A cheque received and deposited in the bank on the same day is recorded in the :
(a) Cash column of the cash book
(b) Cash column and Bank column of the cash book
(c) Bank column of the cash book
(d) None of these

49. B became insolvent and a sum of 4.000 out of 10,000 could be recovered from his estate. The entry will be passed
in
(a) at Cash Book (b) Journal Proper
( c) Both in (a) and (b) (d) None of these


50. Purchase of goods from , X for Cash should be credited to :
(a) Purchase (b) Cash (c) X (d) none
51. Main object of preparing a 'Journal' is :
BEST HIGHER SECONDARY SCHOOL [Type text] [Type text]
(a) To ascertain the financial position of the business.
(b) To journalise the cash transactions
(c) To make posting in the ledger
(d) To record the business transactions first of all.
52. Personal accounts are related to :
(a) Assets and Liabilities (b) Expenses, losses and incomes (c) Debtors, Creditors etc.
53. Real accounts are related to
(a) Assets (b) Expenses, losses and incomes (c) Debtors, Creditors
etc.
54. Nominal Accounts are related to :
(a) Assets and Liabilities (b) Expenses, losses and incomes (c) Debtors, Creditors
etc.
55. Goods worth 7,000 given away as charity would be credited to :
(a) Sales A/c (b) Purchases A/c
(c) Charity A/c (d) Trustee A/c
56. Payment of 6,000 as wages to workmen for installation of a machine should be debited to :
(a) Wages A/c (b) Repairs A/c (c) Machinery A/c
57. What shall be the amount of Capital if Cash is 5,000; Furniture 12,000; Stock 30000 and
Creditors 6,000.
(a) 53,000 (b) 47,000 (c) 41,000
58. Gopal is our debtor for 10,000. He became insolvent and only 60 paise in a is received from him.
The balance of 4,000 would be entered to the :
(a) Debit of Discount A/c (b) Credit of Discount A/c
(c) Debit of Bad-Debts A/c (d) Credit of Bad-Debts A/c
59. 5,000 received from Mohan whose account was written off as bad in the previous year should be
credited to :
(a) Mohan'sA/c (b) Bad-Debts A/c
(c) Bad-Debts Recovered A/c (d) None of these
60. Cash received from Kajal 36,000 after allowing her discount @10%. Amount debited to discount
account will be :
a) 3,600 (b) 4,000 (c) 4,400 . (d) 40,000
61. Loss of goods by fire should be credited to :
(a) Sales A/c (b) LossA/c (c) Profit & Loss A/c (d) Purchase
A/c
62. Goods costing ?30,000 supplied to Mohan at a profit of 25% of sales price less Trade discount @5%
will be credited to Sales A/c with :
(a) 35,625 (b) 38,000 (c) 37,500 (d) 4,200
63. Goods costing 20,000 is sold at a profit of 20% on cost and trade discount is allowed @ 10% and
cash discount of 10% is also allowed. Half the payment was received at the time of sale. What is the
amount of cash received at the time ' of sale?
(a) 9,720 (b) 10,800
(c) 11.880 (d) 10,820
64. Paid to Rahul on behalf of Sanjay 12,000 will be debited to
(a) Kabul's Personal Account (b) Sanjay
J
s Account
(c) Drawings Account (d) Cash Account
65. Sold goods worth list price of 8,000 at 10% trade discount and 2% cash discount. 25%
received at the time of transaction only. The amount posted to discount account will be :
(a) 36 on Debit side (b) 144 on Credit side
(c) 144 on Debit side (d) 40 on Credit side