NONE Examination MCQs with solutions

1. With reference to Simon Commission`s recommendations, which one of the following statements is correct?

A

It recommended the replacement of diarchy with responsible government in the provinces.

B

It proposed the setting up of interprovincial council under the Home Department.

C

It recommended the creation of Indian Police Service with a provision for increased pay and allowances for British recruits as compared to Indian recruits.

D

It suggested the abolition of bicameral legislature at the Centre.

Hsitory NONE
Correct Answer: A
Explanation

Simon Commission came in 1927. Diarchy was proposed in the Government of India Act, 1919. It was replaced with the Provincial Autonomy in the Government of India Act, 1935.

Correct Answered :

Wrong Answered :

2. The famous rock-cut temple of Kailasa is at

A

Ajanta

B

Badami

C

Mahabalipuram

D

Ellora

Ancient History NONE
Correct Answer: D
Explanation

Kailashnath Temple is a famous temple, one of the 34 monasteries and temples, extending over more than 2 km, that were dug side by side in the wall of a high basalt cliff in the complex located at Ellora, Maharashtra, India. Of these 34 monasteries and temples, the Kailasa (cave 16) is a remarkable example of Dravidian architecture on account of its striking proportion; elaborate workmanship architectural content and sculptural ornamentation of rock-cut architecture. It is designed to recall Mount Kailash, the abode of Lord Shiva. It is a megalith carved out of one single rock. It was built in the 8th century by the Rashtrakuta king Krishna I.

Correct Answered :

Wrong Answered :

3. All of the following are functions of Accounting except?

A

Decision making

B

Measurement

C

Forecasting

D

Ledger Posting

ABK NONE
Correct Answer: D
Explanation

Ledger posting is a book-keeping exercise whereas the others are purely accounting in nature, which are done in accordance with various accounting standards, policies, etc.

Correct Answered :

Wrong Answered :

4. Financial position of the business is ascertained on the basis of

A

Records prepared uder book keeping process

B

Trial Balance

C

Balance Sheet

D

None of the above

ABK NONE
Correct Answer: C
Explanation

Balance sheet is a known as the positional statement as it shows the financial position of the business. Balance sheet is prepared at the particular date usually at the end of financial year. Balance shows the lists of all assets and liabilities of the business.

Correct Answered :

Wrong Answered :

5. Financial statements do not consider

A

Assets expressd in monetary terms

B

Liabilities expressed in monetary terms

C

Only assetts expressed in non monetary terms

D

Assets and liabilities expressed in non mometary terms

ABK NONE
Correct Answer: D
Explanation

Assets and liabilities expressed in non mometary terms

Correct Answered :

Wrong Answered :

6. Accounting standards in india are issued by

A

Central Govt

B

State Govt

C

Institute of chartere accountants of india

D

Rerved bank of india

ABK NONE
Correct Answer: C
Explanation

Institute of chartere accountants of india

Correct Answered :

Wrong Answered :

7. How many accounting standards have been issued by ICAI?

A

25

B

20

C

32

D

2

ABK NONE
Correct Answer: C
Explanation

32

Correct Answered :

Wrong Answered :

8. It is essential to standardize the accounting principles and policies in order to ensure

A

Transparency

B

Consistency

C

Comparability

D

All of the above

ABK NONE
Correct Answer: D
Explanation

All of the above

Correct Answered :

Wrong Answered :

9. In case of debit becoming bad, the amount should be credited to

A

Debtor account

B

Bad debts account

C

Cast account

D

Sales account

ABK NONE
Correct Answer: A
Explanation

In the normal course of business, there are certain customer who does not pay the amount to the business despite regular follow ups. The unrecoverable amount is considered as bad debts. Bad debts is a loss to the organization and should be debited to profit & loss account by crediting the customer account.
Accounting entry will be as under:
Bad Debts A/c Dr.
To Customer (Debtor) A/c

Correct Answered :

Wrong Answered :

10. Which financial statement represents the accounting equation Asset = Liabilities + Owner`s equity

A

Income statement

B

Statement of cash flows

C

Balance sheet

D

None of the above

ABK NONE
Correct Answer: C
Explanation

Balance sheet

Correct Answered :

Wrong Answered :

11. Which account is the odd one out?

A

Office furniture and equipment

B

Freehold land and buildings

C

Stock of raw materials

D

Plant and machinery

ABK NONE
Correct Answer: C
Explanation

Stock of raw materials

Correct Answered :

Wrong Answered :

12. In double entry system of book keeping every business transaction affects

A

Two accounts

B

Two sides of the same account

C

The account on two different dates

D

All of the above

ABK NONE
Correct Answer: A
Explanation

Two accounts

Correct Answered :

Wrong Answered :

13. Which of the following items is an asset?

A

Salary paid to manager

B

Accounts payable

C

Sales

D

Debtors

ABK NONE
Correct Answer: D
Explanation

Debtors

Correct Answered :

Wrong Answered :

14. Payment of personal expenses of the owners of the business need to be recorded as

A

Drawings

B

Liabilities

C

Expenses

D

None of the above

ABK NONE
Correct Answer: A
Explanation

Drawings

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Wrong Answered :

15. The petty cashier generally work on _____ system

A

Accural

B

Balancing

C

Imprest

D

None of the three

ABK NONE
Correct Answer: C
Explanation

Imprest

Correct Answered :

Wrong Answered :

16. Credit balance in the cash book means

A

Overdraft as per passbook

B

Favourable balance as per passbook

C

Both A and B

D

None of the above

ABK NONE
Correct Answer: A
Explanation

A credit balance in cash book is a overdraft as per pass book. The bank maintains the customer account which is further printed in the passbook. The passbook is made from the view point of the bank hence customer depositing money is a liability to the bank and is credited. Therefore when the balance is unfavourable it shows a debit balance because they will receive money from the customer. The debits and credit of pass book and cash book are opposite.

Correct Answered :

Wrong Answered :

17. Goodwill is ____

A

Current asset

B

Fictitious asset

C

Tangible asset

D

Intangible asset

ABK NONE
Correct Answer: D
Explanation

Intangible asset

Correct Answered :

Wrong Answered :

18. Loss leads to reduction in

A

Liability

B

Capital

C

Income

D

None of the above

ABK NONE
Correct Answer: B
Explanation

Capital

Correct Answered :

Wrong Answered :

19. The expired portion of capital expenditure is shown as

A

as an income

B

as an expense

C

as an asset

D

as a liability

ABK NONE
Correct Answer: B
Explanation

An expired cost is a cost that has been recognised as an expense. This happens when a business entity fully consumes or receives benefit from a cost . An expired cost may also be construed as the total loss in value of an asset.

Correct Answered :

Wrong Answered :

20. Income includes

A

Income received

B

Income receivable

C

Both A and B

D

None of the above

ABK NONE
Correct Answer: C
Explanation

Both A and B

Correct Answered :

Wrong Answered :

21. Income tax in case of a sole trader is treated as ___

A

Business expense

B

Personal expenses

C

Debtors expenses

D

None of the three

ABK NONE
Correct Answer: B
Explanation

Personal expenses

Correct Answered :

Wrong Answered :

22. Which of the following is correct

A

Capital is equal to assets minus liabilities

B

Capital is equal to assets plus liabilities

C

Assets are equal to liabilities minus capital

D

Liabilities is equal to capital plus assets

ABK NONE
Correct Answer: A
Explanation

Capital is equal to assets minus liabilities

Correct Answered :

Wrong Answered :

23. Which financial statement represents the accounting equation, Assets = Liabilities + Owners

A

Income statement

B

Balance sheet

C

Statement of cash flow

D

None of the above

ABK NONE
Correct Answer: B
Explanation

Balance sheet

Correct Answered :

Wrong Answered :

24. Cash column in cash book has always

A

Dr. balance

B

Cr. balance

C

Overdraft

D

Both Dr. and Cr. balance

ABK NONE
Correct Answer: A
Explanation

Dr. balance

Correct Answered :

Wrong Answered :

25. ____ reserve is not shown in balance sheet

A

General

B

Capital

C

Secret

D

None of the above

ABK NONE
Correct Answer: C
Explanation

Secret

Correct Answered :

Wrong Answered :

26. Preliminary expenses are treated as

A

Miscellaneous expenditure

B

Intangible asset

C

Current asset

D

A liability

ABK NONE
Correct Answer: A
Explanation

Miscellaneous expenditure

Correct Answered :

Wrong Answered :

27. The balance of the petty cash book is

A

An expense

B

An income

C

An asset

D

A liability

ABK NONE
Correct Answer: C
Explanation

Petty cash book is used to record the day to day small value transactions. Balance lying in petty cash book is as good as cash balance. Cash is an asset for the business.

Correct Answered :

Wrong Answered :

28. Interest on drawing is ____ for the business

A

Expenditure

B

Expense

C

Gain

D

None of the above

ABK NONE VERIFIED
Correct Answer: C
Explanation

Interest on drawing is a gain for the firm. It is calculated at the agreed rate. The amount of interest on drawings will be credited to Profit and Loss Appropriation Account and will be debited to partner`s capital account/current account (individually).

Correct Answered :

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29. Preliminary expenses in connection with floatation of a new company is

A

Fixed asset

B

Current asset

C

Fictitious asset

D

None of the above

ABK NONE
Correct Answer: C
Explanation

Fictitious asset

Correct Answered :

Wrong Answered :

30. Which of the following is not a current asset

A

Bills receivable

B

Cash and Cash equivalents

C

Debtors

D

Furniture and Fittings

ABK NONE
Correct Answer: D
Explanation

Furniture and Fittings

Correct Answered :

Wrong Answered :

31. Income earned but not received is shown in

A

Asset side of the balance sheet

B

Liability of the balance sheet

C

Profit and loss account (Dr. balance)

D

None of the above

ABK NONE
Correct Answer: A
Explanation

Asset side of the balance sheet

Correct Answered :

Wrong Answered :

32. When goods are returned to a supplier

A

A debit note is sent to him

B

An account sale is sent to him

C

A receipt is sent to him

D

Either of B or C

ABK NONE
Correct Answer: A
Explanation

A debit note is sent to him

Correct Answered :

Wrong Answered :

33. Trade discount allowed at the time of sale of goods is

A

Recorded in Journal

B

Not recorded on book of accounts

C

Record in cash book

D

Recorded in sales book

ABK NONE
Correct Answer: B
Explanation

Not recorded on book of accounts

Correct Answered :

Wrong Answered :

34. Which of the following is long term liability

A

Outstanding expenses

B

Share capital

C

Debenture

D

All of the above

ABK NONE
Correct Answer: C
Explanation

Debenture

Correct Answered :

Wrong Answered :

35. Drawing a type of

A

Expenses

B

Withdrawal of capital

C

Income

D

None of the above

ABK NONE
Correct Answer: B
Explanation

Withdrawal of capital

Correct Answered :

Wrong Answered :

36. Which of the following is not an intangible asset

A

Land

B

Goodwil

C

Copyright

D

Patent rights

ABK NONE
Correct Answer: A
Explanation

An intangible asset or resource is an asset that isn`t physical in nature. Patent rights, goodwill, brand acknowledgment, and protected innovation, like licenses, brand names, and copyrights, are largely a part of intangible resources. Tangible resources incorporate land, vehicles, hardware, and stock.

Correct Answered :

Wrong Answered :

37. Profit is a part of

A

Income

B

Owner`s capital

C

Assets

D

All of the above

ABK NONE
Correct Answer: B
Explanation

Owner`s capital

Correct Answered :

Wrong Answered :

38. Which reserve is not shown in balance sheet

A

Secret reserve

B

Capital reserve

C

General reserve

D

All of the above

ABK NONE
Correct Answer: A
Explanation

Secret reserve

Correct Answered :

Wrong Answered :

39. Which of the following is a non cash expense

A

Depreciation

B

Salary paid

C

Rent paid

D

Carriage

ABK NONE
Correct Answer: A
Explanation

Depreciation

Correct Answered :

Wrong Answered :

40. Which of the following is a fixed asset

A

Cash

B

Building

C

Stock

D

Debtors

ABK NONE
Correct Answer: B
Explanation

Buidling

Correct Answered :

Wrong Answered :

41. Which of the following is a current asset

A

Plant & machinery

B

Land & building

C

Debtors

D

Furniture

ABK NONE
Correct Answer: C
Explanation

Debtors

Correct Answered :

Wrong Answered :

42. Purchase of goods on credit

A

Increased liability

B

Decrease assets

C

Decrease in total assets

D

No effect of total of assets

ABK NONE
Correct Answer: A
Explanation

Assets - Increase
Liabilities - Increase
Capital - No effect
When goods are purchased on credit, stock increases which is an asset and creditors increase, which is a liability.

Correct Answered :

Wrong Answered :

43. Purchase of office equipment on credit will lead to

A

Decrease in Capital

B

Decrease in liability

C

Increase in assets

D

All of the above

ABK NONE
Correct Answer: C
Explanation

Increase in assets

Correct Answered :

Wrong Answered :

44. Purchase of building from bank

A

Decrease in total liabilities

B

Increase in total assets

C

Decrease in total assets

D

No effect of total asets

ABK NONE
Correct Answer: D
Explanation

No effect of total assets

Correct Answered :

Wrong Answered :

45. Journal is a book of

A

Original entry

B

All cash transactions

C

Secondary Entry

D

All non cash transaction

ABK NONE
Correct Answer: A
Explanation

Original entry

Correct Answered :

Wrong Answered :

46. If two or more transactions of the same nature are journalized together having wither the debit of the credit account common is known as

A

Compound journal entry

B

Separate journal entry

C

Posting

D

None of the above

ABK NONE
Correct Answer: A
Explanation

Compound journal entry

Correct Answered :

Wrong Answered :

47. In journal there are

A

4 columns

B

5 columns

C

6 columns

D

7 columns

ABK NONE
Correct Answer: B
Explanation

5 columns

Correct Answered :

Wrong Answered :

48. Income tax paid by the sole proprietor from business bank account is debited to

A

Income tax account

B

Bank Account

C

Capital Account

D

Not to be shown in the business books

ABK NONE VERIFIED
Correct Answer: A
Explanation

The entries to be passed after payment of income tax are
Income Tax A/c Dr.
To Bank A/c 
Therefore, income tax paid, is debited to Income Tax Account.

Correct Answered :

Wrong Answered :

49. Recording of a transaction in a journal is called

A

Posting

B

Entry

C

Transfer

D

Ruler

ABK NONE
Correct Answer: B
Explanation

Entry

Correct Answered :

Wrong Answered :

50. Narrations are given at the end of

A

Final accounts

B

Trial balance

C

Each Ledger account

D

Each journal entry

ABK NONE
Correct Answer: D
Explanation

Each journal entry

Correct Answered :

Wrong Answered :

51. Sunset Tours has a Rs. 3500 account receivable from Mohan On January 20, the alter makes a partial payment of Rs 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes

A

A credit to the cash received account of Rs 2100

B

A credit to the accounts receivable amount of Rs 2100

C

A debit to the cash account of Rs 1400

D

A debit to the accounts receivable account of Rs 1400

ABK NONE
Correct Answer: B
Explanation

A credit to the accounts receivable amount of Rs 2100

Correct Answered :

Wrong Answered :

52. Journal entry for Rs 6000 stolen from the sale of the firm will be

A

Dr. P & L a/c and Cr. Cash embezzlement a/c Rs 6000

B

Dr. Cash embezzlement a/c and cr. cash a/c Rs 6000

C

Dr. cash a/c and Cr. P & L a/c rs 6000

D

None of the above

ABK NONE
Correct Answer: B
Explanation

Dr. Cash embezzlement a/c and cr. cash a/c Rs 6000

Correct Answered :

Wrong Answered :

53. Income tax liability of the proprietor Rs 1200 was paid out of petty cash. Journal entry will be

A

Dr drawings and Cr. cash a/c Rs 1200

B

Dr. drawings and Cr. petty cash a/c Rs 1200

C

Dr income tax and Cr cash a/c Rs 1200

D

None of the above

ABK NONE
Correct Answer: B
Explanation

Dr. drawings and Cr. petty cash a/c Rs 1200

Correct Answered :

Wrong Answered :

54. Journal entry for wages paid Rs 3000 for installation of plant will be

A

Dr. plant repairs a/c and Cr. cash a/c rs 3000

B

Dr wages a/c and Cr. cash a/c 3000

C

Dr. plant a/c and Cr. cash a/c 3000

D

None of the above

ABK NONE
Correct Answer: C
Explanation

Dr. plant a/c and Cr. cash a/c 3000

Correct Answered :

Wrong Answered :

55. Interest earned but not received, adjustment entry will be

A

Accured interest Dr. to customer

B

Accrued interest A/C dr To interest A/C.

C

Cash a/c Dr. to interest

D

None of the these

ABK NONE
Correct Answer: B
Explanation

Accrued interest A/C dr To interest A/C.

Correct Answered :

Wrong Answered :

56. Carriage charges paid for a new plant purchased if debited to carriage account would effect

A

Plant Account

B

Carriage Account

C

Plant and Carriage Accounts

D

None of the above

ABK NONE
Correct Answer: A
Explanation

Plant Account

Correct Answered :

Wrong Answered :

57. The debts written off as bad, if recovered subsequently are

A

Credited to bad debts recovered account

B

Credited to debtors account

C

Debited to profit and loss account

D

None of the above

ABK NONE
Correct Answer: A
Explanation

While journalizing for bad debts debtor`s personal account is credited and bad debts account is debited because bad debts written off are treated as a loss to the business and now when they are recovered it is seen as a fresh gain.

Correct Answered :

Wrong Answered :

58. Which of the following types of information are found in subsidiary ledgers, but not in the general ledger?

A

Total cost of goods sold for the period.

B

The quantity of a particular product sold during the period.

C

The amount owed to a particular creditor.

D

The portion of total current assets that consist of cash

ABK None
Correct Answer: B
Explanation

The quantity of a particular sold during the period.

Correct Answered :

Wrong Answered :

59. Cash book is a form of

A

Trial balance

B

Journal

C

Ledger

D

Both B and C

ABK NONE
Correct Answer: D
Explanation

All cash transactions are primarily recorded in it as soon as they take place; so it is a journal (a book of original entry). On the other hand, the cash aspect of all cash transactions is finally recorded in the Cash Book (no posting in Ledger); so a Cash Book is also a Ledger (a book of final entry).

Correct Answered :

Wrong Answered :

60. Journal proper records

A

Bills receivables

B

Bills payable

C

Cash payments

D

Opening entry

ABK NONE
Correct Answer: D
Explanation

Opening entry

Correct Answered :

Wrong Answered :

61. Sales return book records ____

A

Credit sales return

B

Cash sales return

C

Both A and B

D

Purchase return

ABK NONE
Correct Answer: A
Explanation

Goods sold on credit when returned by the customer is recorded in returned inward book or sales return book. Sales return book shows a debit balance as it is reverse to the sales, which has credit balance. When the goods are returned by the customer one note is prepared which is called as "Credit note". The returned outward book is used to record return of goods purchased on credit.

Correct Answered :

Wrong Answered :

62. Bad debts entry is passed in

A

Sales Book

B

Cash Book

C

Journal Book

D

None of the above

ABK NONE
Correct Answer: C
Explanation

Journal book

Correct Answered :

Wrong Answered :

63. Three column cash book records

A

Only cash transaction

B

All transactions

C

Cash, Bank and Discount transactions

D

Cash purchases and cash sales transactions

ABK NONE
Correct Answer: C
Explanation

Cash, Bank and Discount transactions

Correct Answered :

Wrong Answered :

64. Environmental studies aims at developing

A

Understanding local environment/environmental issues

B

Understanding global environment/environmental issues

C

To develop positive attitude towards environment

D

All of the above

E-Science NONE
Correct Answer: D
Explanation

All of the above

Correct Answered :

Wrong Answered :

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