Teaching Accountancy Accounting for Specific Business and Transactions Question Bank

done MCQ - Accounting for Specific Business and Transactions Total Questions - 117

• question_answer1)
  Which of the following is depleted?           
  A)
   Land                                        done clear
  B)
   Goodwill done clear
  C)
   Machinery                                 done clear
  D)
   Quarries done clear
  View Solution play_arrow

• question_answer2)
                                                  Obsolescence means decline in the value due to
  A)
   fall in the market price                done clear
  B)
   new technology, innovations and inventions done clear
  C)
   physical wear and tear done clear
  D)
   efflux of time done clear
  View Solution play_arrow

• question_answer3)
  Which method of depreciation takes into account the element of interest on capital outlay?      
  A)
   Depletion method                                   done clear
  B)
   Annuity method                         done clear
  C)
   SLM method                             done clear
  D)
   WDV method                            done clear
  View Solution play_arrow

• question_answer4)
  Depreciation is the process of       
  A)
   Allocation of cost of asset to the period of its life    done clear
  B)
   Verification of assets                   done clear
  C)
   Assets valuation                         done clear
  D)
   Decreasing the value of asset done clear
  View Solution play_arrow

• question_answer5)
  Under annuity method, asset account is debited by 
  A)
   Interest account                         done clear
  B)
   Depreciation fund account done clear
  C)
   Sinking fund account done clear
  D)
   None of the above                     done clear
  View Solution play_arrow

• question_answer6)
  Annuity method is designed for which of the following?       
  A)
   Leases                                      done clear
  B)
   Intangibles done clear
  C)
   Fixed assets done clear
  D)
   Any of the above done clear
  View Solution play_arrow

• question_answer7)
  A machine of ` 3000 was sold for ` 4200. Depreciation provision to  date was ` 400 and commission paid to selling agent was ` 420 and wages paid to workers for removing the machine was ` 30. Profit on sale of machine will be 
  A)
   ` 1200                                     done clear
  B)
   ` 1000                                     done clear
  C)
   ` 1150                                     done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer8)
                         Which of the following statement is wrong?
  A)
   Consignor is the owner of the consignment stock done clear
  B)
   Del-credre commission is allowed by consignor to protect himself from bad debts done clear
  C)
   Proportionate consignor’s expenses are added up with consignment stock done clear
  D)
   All proportionate consignee's expenses will be added up for valuation of consignment stock done clear
  View Solution play_arrow

• question_answer9)
  Consignment account is prepared in the books of
  A)
   Consignor                                 done clear
  B)
   consignee done clear
  C)
   Third party                                done clear
  D)
   none of these done clear
  View Solution play_arrow

• question_answer10)
  The consignor sends ......... along with the consigned goods to the consignee.
  A)
   Account sales                            done clear
  B)
   perform a invoice done clear
  C)
   Both [a] and [b]                         done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer11)
  What is the nature of joint venture with co-venture's account?
  A)
   Nominal account                       done clear
  B)
   Real account done clear
  C)
   Personal account                       done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer12)
  Following are the characteristics of joint venture except
  A)
   No common firm name done clear
  B)
   Contribution of funds done clear
  C)
   Sharing of profits/losses done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer13)
  Account sales indicates
  A)
   The net amount due from consignor to consignee by way of commission done clear
  B)
   The net amount due from consignee to consignor done clear
  C)
   Net sales affected by consignee done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer14)
  The stock lying unsold with the consignee belongs to
  A)
   consignor done clear
  B)
   Consignee, as he does not bear the risk done clear
  C)
   Both [a] and [b] done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer15)
  The abnormal loss on consignment is credited to
  A)
   Consignment account done clear
  B)
   Profit and loss account done clear
  C)
   Consignee’s personal account done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer16)
  Over-riding commission is calculated on
  A)
   Cash sales done clear
  B)
   Total sales done clear
  C)
   Credit sales done clear
  D)
   Credit sales less cash sales done clear
  View Solution play_arrow

• question_answer17)
  Consignment account is a
  A)
   Real account done clear
  B)
   trading account done clear
  C)
   Nominal account                       done clear
  D)
   personal account done clear
  View Solution play_arrow

• question_answer18)
  If no del-credre commission is paid to the consignee............ account will be debited for credit sale.
  A)
   Consignment                                         done clear
  B)
   Consignee's done clear
  C)
   Consignor's                                            done clear
  D)
   Consignment debtor's done clear
  View Solution play_arrow

• question_answer19)
  When unsold stock is taken away by a co-venturer, then ............. account is debited.
  A)
   Joint stock                                done clear
  B)
   joint venture done clear
  C)
   Joint bank                                 done clear
  D)
   co-venturer's capital done clear
  View Solution play_arrow

• question_answer20)
  Memorandum joint venture account is prepared
  A)
   When each co-venturerss keeps record of all the transactions himself done clear
  B)
   When each co-venturer keeps records of their own joint venture transactions done clear
  C)
   When separate set of books are maintained done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer21)
  Joint venture accounting follows which concept?
  A)
   Accrual concept done clear
  B)
   Cash basis concept done clear
  C)
   Going concern concept done clear
  D)
   Cost concept done clear
  View Solution play_arrow

• question_answer22)
  Joint venture is a...........account.
  A)
   Personal                                   done clear
  B)
   nominal done clear
  C)
   Real                                         done clear
  D)
   capital done clear
  View Solution play_arrow

• question_answer23)
  When memorandum joint venture method is followed in the books of X, joint venture with Y A/c will be credited with...........for amount received by X.
  A)
   Y                                             done clear
  B)
   cash done clear
  C)
   Sales                                        done clear
  D)
   debtor done clear
  View Solution play_arrow

• question_answer24)
  Which of the following methods of valuation of closing stock is followed in joint venture accounting?
  A)
   Net realisable value done clear
  B)
   Cost price done clear
  C)
   Least of cost or net realisable value done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer25)
  Which of the following is incorrect?
  A)
   Joint venture can be formed with minor done clear
  B)
   Joint venture is not based on going concern done clear
  C)
   A bill of exchangers a negotiable instrument done clear
  D)
   Noting charges are the expenses of drawee done clear
  View Solution play_arrow

• question_answer26)
  Depreciation is a process of
  A)
   Valuation of an asset done clear
  B)
   Distribution of costs done clear
  C)
   Valuation and distribution of assets done clear
  D)
   None of the above      done clear
  View Solution play_arrow

• question_answer27)
  The drawer of a bill of exchange is a
  A)
   Debtor                                      done clear
  B)
   banker done clear
  C)
   Creditor                                    done clear
  D)
   holder done clear
  View Solution play_arrow

• question_answer28)
  Under the straight line method of charging depreciation, the amount of depreciation
  A)
   remains constant every year done clear
  B)
   Decreases every year done clear
  C)
   Increases every year done clear
  D)
   is not certain done clear
  View Solution play_arrow

• question_answer29)
  One, who draws the bill is called
  A)
   Debtor                                      done clear
  B)
   drawee done clear
  C)
   Payee                                       done clear
  D)
   drawer done clear
  View Solution play_arrow

• question_answer30)
  Which one of the following is not a cause of depreciation?
  A)
   Wear and tear                           done clear
  B)
   Efflux of time done clear
  C)
   Obsolescence                             done clear
  D)
   Inflation done clear
  View Solution play_arrow

• question_answer31)
  Depreciation does not arise in the value of this asset                
  A)
   Goodwill                                   done clear
  B)
   furniture                              done clear
  C)
   Machinery                                 done clear
  D)
   plant    done clear
  View Solution play_arrow

• question_answer32)
                        The cost of a machine is ` 55000 and its residual value is ` 5000. According to the straight line method the annual depreciation at the rate of 10% will be           
  A)
   ` 5500                                     done clear
  B)
   ` 6000 done clear
  C)
   ` 500                                       done clear
  D)
   ` 500   done clear
  View Solution play_arrow

• question_answer33)
     An unfavourable balance means  
  A)
   Debit balance in cash book        done clear
  B)
   Debit balance of assets account    done clear
  C)
   Credit balance in pass book       done clear
  D)
   Debit balance in pass book        done clear
  View Solution play_arrow

• question_answer34)
  Match the following  

  List I		List II
  A.	Straight line method	1.	\[1-\sqrt{\frac{Residual\text{ }Value}{Cost\,of\,asset}}\times 100\]
  B.	Diminishing method	2.	\[\frac{n(n+1)}{2}\]
  C.	Sum of years digit method	3.	Depreciable amount \[\times \frac{Production\text{ }during\,the\text{ }period}{Estimated\text{ }total\,Production}\]
  D.	Production units method	4.	\[\frac{Cost\text{ }of\text{ }asset-Scrap\text{ }value}{Useful\text{ }life}\]

  Codes
  A)
                                   A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3    done clear
  B)
   A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 done clear
  C)
   A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 done clear
  D)
   A\[\to \]1, B\[\to \]4, C\[\to \]2, D\[\to \]3   done clear
  View Solution play_arrow

• question_answer35)
  When acceptor becomes insolvent, the drawer debits
  A)
   Bank account done clear
  B)
   Bill receivable account done clear
  C)
   Acceptor’s account done clear
  D)
   Bill payable account done clear
  View Solution play_arrow

• question_answer36)
  In bills of exchange if the payment is made before Average Due Date, the debtor is allowed
  A)
   Rebate                                      done clear
  B)
   Interest done clear
  C)
   Commission                              done clear
  D)
   Discount done clear
  View Solution play_arrow

• question_answer37)
  Decrease in the value of fixed assets is termed as
  A)
   Expenses                                  done clear
  B)
   Depreciation                      done clear
  C)
   Profit                                        done clear
  D)
   Loss                         done clear
  View Solution play_arrow

• question_answer38)
  For providing depreciation on leasehold property, the appropriate method of depreciation is
  A)
   Replacement method done clear
  B)
   Revaluation method done clear
  C)
   Fixed instalment method done clear
  D)
   Diminishing balance method done clear
  View Solution play_arrow

• question_answer39)
  Which method of Depreciation is must suitable in the case of mineral deposits?
  A)
   Depletion method done clear
  B)
   Revaluation method done clear
  C)
   Annuity method done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer40)
  The main objective of providing depreciation is
  A)
   To reduce the profit of the business done clear
  B)
   To increases the expenses of the business done clear
  C)
   To reduce tax burden done clear
  D)
   To calculate true profit done clear
  View Solution play_arrow

• question_answer41)
  Under Diminishing Balance Method, depreciation is calculated on
  A)
   Original cost done clear
  B)
   Written down value done clear
  C)
   Scrap value done clear
  D)
   Last value of the asset done clear
  View Solution play_arrow

• question_answer42)
  The WDV of an asset after three years of depreciation on the reducing balance method @ 15% per annum is ` 49130. What was its original value?
  A)
   ` 40000                                    done clear
  B)
   ` 80000 done clear
  C)
   ` 45000                                    done clear
  D)
   ` 70250 done clear
  View Solution play_arrow

• question_answer43)
  Which of the following is not true with regard to fixed assets?
  A)
   They are acquired for using them in the conduct of business operations done clear
  B)
   They are not meant for resale to earn profit done clear
  C)
   They can easily be converted into cash done clear
  D)
   Depreciation at specified rates is to be charged on most of the fixed assets done clear
  View Solution play_arrow

• question_answer44)
  Original cost = ` 100000, life = 5 years, expected salvage value = ` 5000, rate of depreciation per annum = `
  A)
   20.0%                                      done clear
  B)
   19.5% done clear
  C)
   19%                                         done clear
  D)
   19.4% done clear
  View Solution play_arrow

• question_answer45)
  A Ltd purchased a machine on 01.01.2003 for ` 120000. Installation expenses were ` 30000. Residual value after 5 years was ` 5000. On 01.07.2003, expenses for repair were incurred to the extent of ` 2000. Depreciation is provided @ 10% per annum under written down value method. Total depreciation after 2 years will be
  A)
   ` 25000                                    done clear
  B)
   ` 13000 done clear
  C)
   ` 10500                                    done clear
  D)
   ` 28500 done clear
  View Solution play_arrow

• question_answer46)
  Useful life of an asset can be described as
  A)
   The period over which a depreciable asset is expected to be used by the enterprise done clear
  B)
   The number of production or similar units expected to be obtained from the use of the asset by the enterprise done clear
  C)
   10 years done clear
  D)
   Both [a] and [b] done clear
  View Solution play_arrow

• question_answer47)
  Which method of depreciation is effective if repairs and maintenance cost of an asset increase as it grows old?
  A)
   Straight line method done clear
  B)
   Sinking fund method done clear
  C)
   Annuity method done clear
  D)
   Reducing balance method done clear
  View Solution play_arrow

• question_answer48)
  A machine was bought at a cost of ` 500000 on 1.1.2002. During its life of 10 years, it will be depreciated on SLM basis. On 31.12.2009, the machine was sold for ` 150000. Find out the profit/loss.
  A)
   Loss of  ` 150000 done clear
  B)
   Profit of ` 50000 done clear
  C)
   Profit of ` 100000 done clear
  D)
   Profit of ` 150000 done clear
  View Solution play_arrow

• question_answer49)
  Ram purchased a computer on 1.04.2010 for ` 600000. He is charging depreciation on written down value method. On 31.03.2011, he sold the computer for ` 165000 and incurred a loss of ` 75000. The rate of depreciation per annum is
  A)
   10%                                                     done clear
  B)
   15% done clear
  C)
   60%                                                     done clear
  D)
   25% done clear
  View Solution play_arrow

• question_answer50)
  Depletion method of depreciation is normally applied in case of ............. assets.
  A)
   Wasting                                    done clear
  B)
   intangible done clear
  C)
   Tangible                                   done clear
  D)
   current done clear
  View Solution play_arrow

• question_answer51)
  Under annuity method, the amount of depreciation is
  A)
   Fixed done clear
  B)
   Decreasing every year done clear
  C)
   Revalued every year done clear
  D)
   Increasing every year done clear
  View Solution play_arrow

• question_answer52)
  If the rate of depreciation is same, then the amount of depreciation under straight line method vis-a-vis written down value method will be
  A)
   Equal in all years done clear
  B)
   Equal in first year but lower in subsequent years done clear
  C)
   Equal in first year but higher in subsequent years done clear
  D)
   lower in first year but equal in subsequent years done clear
  View Solution play_arrow

• question_answer53)
  A mine was taken on lease for ` 20000000. Its total production capacity is 400000 metric tonnes. What will be the depreciation in 2007, if it produced 40000 metric tonnes in 2007?
  A)
   ` 10 lakhs                                 done clear
  B)
   ` 20 lakhs done clear
  C)
   ` 50 lakhs                                 done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer54)
  A machinery is purchased for ` 15000 on 1st April, 2005 and depreciation @ 10% per annum is provided. Calculate the amount of difference in depreciation as per SLM and WDV basis in the year 2006-07.
  A)
   ` 150                                       done clear
  B)
   ` 1000 done clear
  C)
   Nil                                           done clear
  D)
   ` 200 done clear
  View Solution play_arrow

• question_answer55)

  Price of the computer = ` 50000

  Residual value = ` 10000

  Hours worked for the year = 4000 hrs

  Estimated life of the computer = 20000 hrs

  Calculate the amount of depreciation.

  A)
   ` 15000                                    done clear
  B)
   ` 8000 done clear
  C)
   ` 20000                                    done clear
  D)
   ` 24000 done clear
  View Solution play_arrow

• question_answer56)
  Amortisation refers to writing-off
  A)
   Depleting assets                         done clear
  B)
   wasting assets done clear
  C)
   Intangible assets                         done clear
  D)
   fictitious assests        done clear
  View Solution play_arrow

• question_answer57)
      

  Cost of a machine = ` 500000

  Salvage value = ` 20000

  Useful life = 5 years

  Depreciation for the last year using the sum of digits method will be

  A)
   ` 32000                                    done clear
  B)
   ` 20400 done clear
  C)
   ` 34000                                    done clear
  D)
   ` 27200 done clear
  View Solution play_arrow

• question_answer58)
  According to Income Tax Act, which method of providing depreciation should be followed?
  A)
   Reducing balance method done clear
  B)
   Sinking fund method done clear
  C)
   Annuity method done clear
  D)
   Straight line method done clear
  View Solution play_arrow

• question_answer59)
  The opening capital is oscerbaised by preparing.
  A)
   Cash book done clear
  B)
   Debtors A/c done clear
  C)
   Creditors A/c done clear
  D)
   Opening statement of affairs done clear
  View Solution play_arrow

• question_answer60)
  A single entry system is
  A)
   Complete and scientific done clear
  B)
   Incomplete and scientific done clear
  C)
   Incomplete and unscientific done clear
  D)
   Complete and unscientific done clear
  View Solution play_arrow

• question_answer61)
  In single entry system profit is calculate as follow
  A)
   Opening Capital + Drawing + Fresh Capital - Ending capital done clear
  B)
   Capital at the end - Drawing - Fresh capital - Opening capital done clear
  C)
   Capital at the end + Drawing - Fresh capital - Opening capital done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer62)
  In single entry system only accounts are opened
  A)
   Personal A/c done clear
  B)
   Real A/c done clear
  C)
   Nominal A/c                              done clear
  D)
   Real and Nominal A/c done clear
  View Solution play_arrow

• question_answer63)
  Single entry system cannot be a maintained by
  A)
   Joint stock company                  done clear
  B)
   Partnership A/c done clear
  C)
   Sole-tradership A/c                     done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer64)
  Single entry system of bookkeeping is generally followed by
  A)
   Small business                           done clear
  B)
   Non-trading done clear
  C)
   Large business                           done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer65)
  A statement of assets and liabilities prepared under the single entry system is called      
  A)
   Balance sheet                            done clear
  B)
   financial statement      done clear
  C)
   Cash statement                          done clear
  D)
   statement of affairs     done clear
  View Solution play_arrow

• question_answer66)
             When the cost incurred on recruiting, training and developing the employees is considered for determining the value of employees, it is called    
  A)
   The replacement cost approach    done clear
  B)
   The historical cost approach done clear
  C)
   The opportunity cost approach   done clear
  D)
   None of the above        done clear
  View Solution play_arrow

• question_answer67)
          The opportunity cost approach in human resource accounting was introduced by                  
  A)
   Hekimian and Jones                   done clear
  B)
   Rensis Likert                    done clear
  C)
   Eric G. Flamholtz                       done clear
  D)
   William C Pyle     done clear
  View Solution play_arrow

• question_answer68)
                    The aggregate payment approach in human resource accounting was developed by
  A)
   Myers and Flowers                     done clear
  B)
   Hermanson done clear
  C)
   S K Chakraborty                        done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer69)
  The value of human resources is the function of the average salary of the employees and their average employment tenure in the organisation. This is the essence of the                
  A)
   Aggregate payment model done clear
  B)
   Five-dimensional model done clear
  C)
   Causal, intervening and end-result model done clear
  D)
   Unpurchased goodwill model done clear
  View Solution play_arrow

• question_answer70)
  Fixing the value of an employee depending upon his productivity, promotability transferability and retainability is the core of the
  A)
   Certainty equivalent model done clear
  B)
   Stochastic reward valuation model done clear
  C)
   Human asset multiplier model done clear
  D)
   Present value of future earnings model done clear
  View Solution play_arrow

• question_answer71)
  A Bank Reconciliation statements is
  A)
   A part of pass book done clear
  B)
   A statement prepared by bank done clear
  C)
   Cash book relating to cash column done clear
  D)
   A statement prepared by customer done clear
  View Solution play_arrow

• question_answer72)
  Overdraft as per cash book means
  A)
   Credit balance in the cash book done clear
  B)
   Credit balances in the bank column of the cash book done clear
  C)
   Decrease in liability done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer73)
  Bank balance shown in trial balance
  A)
   Balance as per pass book done clear
  B)
   Balance as per cash book         done clear
  C)
   Balance as per purchase book     done clear
  D)
   Both [a] and [b]     done clear
  View Solution play_arrow

• question_answer74)
                Unfavourable bank balance means
  A)
   Credit balance in cash book        done clear
  B)
   Credit balance in pass book        done clear
  C)
   Debit balance in cash book        done clear
  D)
   Favourable balance in cash book   done clear
  View Solution play_arrow

• question_answer75)
  When favourable balance as per cash book is the starting point, wrong debit by the bank to the     firm will be                    
  A)
   Added                                      done clear
  B)
   subtracted                       done clear
  C)
   Both [a] and [b]                         done clear
  D)
   None of the above              done clear
  View Solution play_arrow

• question_answer76)
                           

  	(`)
  Balance shown by cash book cheques issued but	10000
  not presented for payment	4000
  Cheques deposited but not yet collected	3000

  Balance as per Pass book will be
  A)
   ` 9000             done clear
  B)
   ` 10000 done clear
  C)
   ` 11000                        done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer77)
  When money is withdrawn from bank, the bank                
  A)
   Credit customer A/c              done clear
  B)
   Debits customers account        done clear
  C)
   Credit an debits customers       done clear
  D)
   None of the above      done clear
  View Solution play_arrow

• question_answer78)
            A bank reconciliation statement if prepared to know the causes for the difference between
  A)
   The balance as per cash column of cash book and the pass book done clear
  B)
   The balance as per bank column of cash book and the pass and the pass book done clear
  C)
   The balance as per cash column of cash book and balance as per cash column of cash book        done clear
  D)
   None of the above             done clear
  View Solution play_arrow

• question_answer79)
     In arriving at adjusted cash balance which of the following is not taken into account
  A)
   amount deposited by our customer directly in our account done clear
  B)
   Errors in the cash book done clear
  C)
   Errors in the pass book done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer80)
  When the overdraft as per the cash book is made the starting point for making the Bank Reconciliation statement. Interest charged by the bank will be
  A)
   Deducted                                  done clear
  B)
   Added done clear
  C)
   No treatment                             done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer81)
  If we take balance as per pass book which of the following will be deducted to get balance as per cash book
  A)
   Interest given by bank             done clear
  B)
   Interest charged by bank         done clear
  C)
   Cheque deposited but not cleared                      done clear
  D)
   Payment made by bank understanding instruction         done clear
  View Solution play_arrow

• question_answer82)
       Error of commission do not allow
  A)
   Trial balance to agree              done clear
  B)
   Correct totalling of balance sheet  done clear
  C)
   Both [a] and [b]                   done clear
  D)
   None of the above     done clear
  View Solution play_arrow

• question_answer83)
            Wages paid for the construction of office building debited to wages A/c. It is an
  A)
   Clerical error done clear
  B)
   Error of omission                done clear
  C)
   Error of principle done clear
  D)
   Error of commission done clear
  View Solution play_arrow

• question_answer84)
  When the total of trial balance is not reconciled, the account opened to temporary tallying the trial balance is
  A)
   Profit and loss account done clear
  B)
   Trading account                done clear
  C)
   Suspense account             done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer85)
  Sale of old machinery is wrongly transferred to sales Account. Which type of error is this?
  A)
                                   Error of Omission done clear
  B)
   Error of Principle                done clear
  C)
   Compensating Error           done clear
  D)
   Error of Commission           done clear
  View Solution play_arrow

• question_answer86)
  The preparation of a trial balance is for
  A)
   Locating errors of commission done clear
  B)
   Locating errors of principles done clear
  C)
   Locating clerical errors done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer87)
  A purchase of car was debited to vehicle expenditure account. This is an error of
  A)
   Compensatory error done clear
  B)
   Omission done clear
  C)
   Commission done clear
  D)
   Principle done clear
  View Solution play_arrow

• question_answer88)
  A purchase of computer was debited to Office expenditure account. This is an error of
  A)
   Compensatory error                    done clear
  B)
   omission done clear
  C)
   Commission                              done clear
  D)
   principle done clear
  View Solution play_arrow

• question_answer89)
  Total of sales book was understated by ` 200 Rectification entry will be
  A)
   Suspense account debit, sales account credit done clear
  B)
   Debtor account debit, sales account credit     done clear
  C)
   Sales account debit, suspense account credit done clear
  D)
   Sales account debit, debtors account credit done clear
  View Solution play_arrow

• question_answer90)
  Which type of error occurs when credit sales is wrongly posted to purchase Day book
  A)
   Error of omission                        done clear
  B)
   Error of principle done clear
  C)
   Compensatory error                    done clear
  D)
   Error of commission done clear
  View Solution play_arrow

• question_answer91)
  ` 2000 received form A, is credited in the account B. It is an error of
  A)
   Principle                                   done clear
  B)
   compensatory done clear
  C)
   Commission                              done clear
  D)
   omission done clear
  View Solution play_arrow

• question_answer92)
  It is easy to detect.....than to......
  A)
   Frauds, errors                            done clear
  B)
   mistakes, frauds done clear
  C)
   Errors, frauds                             done clear
  D)
   errors, mistakes done clear
  View Solution play_arrow

• question_answer93)
  'X' sold goods to 'Y' on credit for ` 15000 but debited to 'Z' instead to 'Y'. The entry would effect
  A)
   Individual ledgers                       done clear
  B)
   balance sheet done clear
  C)
   Trial balance                             done clear
  D)
   total debtors done clear
  View Solution play_arrow

• question_answer94)
                        Goods sold to Ram of ` 4000 was not recorded at all. What will be its effect on the trial Balance?
  A)
   Will tally                                   done clear
  B)
   Will not tally     done clear
  C)
   Will have no effect                     done clear
  D)
   none of the above done clear
  View Solution play_arrow

• question_answer95)
  Error relating to fundamental aspect of accounting is known as
  A)
   Error or omission                        done clear
  B)
   error of commission done clear
  C)
   Error of principle                        done clear
  D)
   compensating error done clear
  View Solution play_arrow

• question_answer96)
  Which of the following statement is false?
  A)
   Bill Receivable is a negotiable instrument done clear
  B)
   Bill Receivable must be accepted by drawee done clear
  C)
   There can be three parties in respect of bills of exchange drawer, drawee and payee done clear
  D)
   Oral bill of exchange is also valid done clear
  View Solution play_arrow

• question_answer97)
  On 1.1.05 X draws a bill on Y for ` 20000. At maturity, Y to renew the bill for 2 months @ 12% pa interest. Amount of interest will be
  A)
   ` 400                                       done clear
  B)
   ` 300 done clear
  C)
   ` 360                                       done clear
  D)
   ` 380 done clear
  View Solution play_arrow

• question_answer98)
  Which of the following statement is true?
  A)
   Nothing charge is an expense to be borne by drawer done clear
  B)
   Nothing charge is an expense to be borne by bank done clear
  C)
   Nothing charge is an expense to be borne by payee done clear
  D)
   Nothing charge is an expense to be borne by drawee done clear
  View Solution play_arrow

• question_answer99)
  How long is the period of days of grace in case of a bill
  A)
   four days                                  done clear
  B)
   two days done clear
  C)
   three days                                 done clear
  D)
   one day done clear
  View Solution play_arrow

• question_answer100)
  A bill not paid by drawee on due date is called
  A)
   Nothing of bill done clear
  B)
   Renewable of bill done clear
  C)
   Dishonour of bill done clear
  D)
   Discounting of bill done clear
  View Solution play_arrow

• question_answer101)
   Which account is to be credited when an endorsed cheque is dishonoured?
  A)
   Debtor                                      done clear
  B)
   Bill receivable done clear
  C)
   Endorsee                                   done clear
  D)
   Payee done clear
  View Solution play_arrow

• question_answer102)
  A promissory note is an instrument in writing containing an .........undertaking.
  A)
   Conditional                               done clear
  B)
   unconditional done clear
  C)
   Both [a] and [b]                         done clear
  D)
   Either [a] or [b] done clear
  View Solution play_arrow

• question_answer103)
  On 1.8.05 X draws a bill on Y "for 30 days after sight"- The date of acceptance is 8.8.05 The due date of the bill will be
  A)
   8.9.05                                      done clear
  B)
   10.9.05 done clear
  C)
   11.9.05                                    done clear
  D)
   9.9.05 done clear
  View Solution play_arrow

• question_answer104)
  When a bill is renewed, then entry will be
  A)
   No entry will be passed done clear
  B)
   Entry for renewal of bill done clear
  C)
   Entries for cancellation of old bill and renewal of bill done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer105)
  A bill of exchange is drawn on 1st April, 2003 payable after 3 months. The due date of the bill is
  A)
   1st April, 2003                           done clear
  B)
   30th June, 2003 done clear
  C)
   4th July, 2003                           done clear
  D)
   1st July, 2003 done clear
  View Solution play_arrow

• question_answer106)
  If the bill is accepted and the amount is given before the due date (i.e. maturity), then the bill is said to be
  A)
   Cancelled                                              done clear
  B)
   accepted done clear
  C)
   Retired                                                  done clear
  D)
   dishonor done clear
  View Solution play_arrow

• question_answer107)
  The purpose of accommodation bills is
  A)
   To finance actual purchase or sale of goods done clear
  B)
   When both parties are in need of funds done clear
  C)
   to facilitate trade transmission done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer108)
  Fees paid in cash to notary public is charged by
  A)
   drawer done clear
  B)
   Drawee done clear
  C)
   Holder of bill of exchange done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer109)
  If due date of a bill is public holiday then its due date will be
  A)
   Following day                            done clear
  B)
   preceding day done clear
  C)
   Same day                                 done clear
  D)
   one month later done clear
  View Solution play_arrow

• question_answer110)
  A promissory not is drawn by.....in favour of his.....
  A)
   Drawer, drawee done clear
  B)
   payer, payee done clear
  C)
   Maker, payee                            done clear
  D)
   drawer, payee done clear
  View Solution play_arrow

• question_answer111)
  In case of sudden holiday, maturity date falls on
  A)
   On the same day                       done clear
  B)
   previous day done clear
  C)
   Next following day                     done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer112)
  A promissory note does not require
  A)
   Acceptance                               done clear
  B)
   discounting done clear
  C)
   Nothing                                    done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer113)
  Bill receivable account is a
  A)
   Nominal account done clear
  B)
   Real account done clear
  C)
   Personal account done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer114)
  The nothing charges levied on dishonour of an endorsed bill by the Notary Public are to be born by
  A)
   drawer of the bill done clear
  B)
   Person responsible for dishonour done clear
  C)
   Endorser of the bill done clear
  D)
   Holder of the bill done clear
  View Solution play_arrow

• question_answer115)
  Indian currency is a
  A)
   Hundi done clear
  B)
   Bill of exchange done clear
  C)
   Promissory note done clear
  D)
   Cheque done clear
  View Solution play_arrow

• question_answer116)
  Endorsement of bills means
  A)
   Transfer of right on the bill from the drawer to the creditors done clear
  B)
   Transfer of right on the bill from the creditors to the drawee done clear
  C)
   Transfer of right on the bill from the drawee to the creditors done clear
  D)
   Transfer of right on the bill from the creditors to the drawer done clear
  View Solution play_arrow

• question_answer117)
  If a bill is drawn on 1st January, 2010 and accepted on 08th January, 2010, if the term of bill is 30 days, what will be the due date?
  A)
   7th January, 2010 done clear
  B)
   11th February, 2010 done clear
  C)
   10th February, 2010 done clear
  D)
   None of the above done clear
  View Solution play_arrow