Top 150+ Solved Advance Accounting MCQ Questions Answer
Q. Transfer of money from one place to another i.e. mail transfer is an item to be excluded from bills payable.
a. True
b. False
c. May be false
d. May be true
Q. An assets become non-performing when it ceases to generate income for a Bank.
a. True
b. False
c. May be false
d. May be true
Q. Banks are to recognize their income on cash basis in respect of income on performing assets.
a. true
b. false
c. may be true
d. may be false
Q. Sub-standard assets is one which has been classified as non performing asset for a period not exceeding three years.
a. true
b. false
c. may be true
d. only true
Q. A business takes a……………insurance policy to cover the claims for loss of stocks and loss of profit.
a. Fire
b. Life insurance
c. Car insurance
d. health insurance
Q. The computation of loss by fire is very simple taken when a --------------asset is destroyed
a. current
b. long-term
c. fire
d. intangible
Q. The value of stock on the date of fire can be ascertained more precisely bypreparation of a…………… Account
a. Trading A/c
b. memorandum transaction A/c
c. Balance sheet
d. P & L A/c
Q. ……………..clause is applicable in case of under insurance
a. average
b. Normal
c. short sales
d. indemnity period
Q. …………………policy cover loss of gross profit sustained as a consequence of business interruption.
a. loss of profit
b. loss of stocks
c. average clause
d. loss of fixed assets
Q. The period for which a policy is taken known ……………….as period
a. indemnity
b. short sales
c. long
d. fixed
Q. A ---------- policy covers loss of stock, fixed asset, profit, expenses etc.
a. compact
b. comprehensive
c. horizontal
d. operating
Q. Insured standing charges are the --------------
a. fixed charges
b. horizontal charges
c. fluctuating
d. current charges
Q. ……………… ratio indicates the relationship of gross profit to net sales interms of percentage.
a. Gross profit
b. Net profit
c. debtors turnover
d. capital employed
Q. Due to the inclusion of average clause in the fire insurance policy , an insuredbecomes a……………….in the event of under insurance.
a. co-insurer
b. provision
c. profit
d. loss