Top 50+ Solved Accounting for Leases MCQ Questions Answer
Q. When the royalty are less than the minimum rent ?Sol:
a. Royalties account is debited with the actual amount of royalties earned
b. Royalties account is debited with minimum rent
c. Royalties account is debited with the amount paid to landlord
d. Royalties account is debited with the excess of minimum rent over actual rent
Q. Which of the following statement is false?Sol:
a. Recoupable short working is a current assets
b. Lapsed short working is a real account
c. Short working is the part of minimum rent not represent by the use of right
d. Both A and B
Q. Which of the following statement is falseSol:
a. If a lessee leases a part of the leased property to another person , it is called sublease
b. Royalty receivable account is opened in the books of Lessor
c. Recoupable short working is a current assets
d. None of the above
Q. In the books of Lessee , short working recovered amount is debited toSol:
a. Profit and loss account
b. Minimum rent Account
c. Royalty Account
d. Landlord’s Account
Q. If the royalty is less than minimum rent , the balance of royalty account at the end of theyear has to be transfer toSol:
a. Capital reserve account.
b. Reserve capita account
c. Profit and loss account
d. None of the above
Q. In case f recoupment of shortworking, the lessee:Sol:
a. Debits Shortworking Account
b. Credit Profit and loss account
c. Credit short working Account
d. None of the above
Q. Shortworking means……Sol:
a. Excess of Minimum rent over royalty
b. Excess of royalty over minimum rent
c. None of the above
d. all
Q. Royalties are connected with the following types of businessSol:
a. Mining
b. Construction
c. Textile
d. All of the above
Q. royalty is an agreement between the following personSol:
a. Seller and buyer
b. Banker and customer
c. Among all partners
d. Lessor and lessee
Q. Dead rent is also called …………Sol:
a. Outstanding rent
b. Minimum rent
c. Prepaid rent
d. All of the above
Q. The objectives od fixing dead rent is ………..Sol:
a. Landlord should not get more than a certain amount per year
b. Landlord must receive a minimum amount in case of low output or sales
c. Both A and B
d. None of the above
Q. Shortworking can be recouped only out of ………………..Sol:
a. Surplus
b. Loss
c. Extra Income
d. Taxes
Q. Royalties is calculated either on the basis of ………………..Sol:
a. Production
b. Sales
c. Output
d. Both A and B