Top 250+ Solved Fundamentals of Accounting MCQ Questions Answer
Q. M/s. A.B. Enterprises has bank balance 8,800 as per cash book and the followings were found: (a) Three cheques deposited in bank for 5,800 but only one cheque for 2,000 was cleared. (b) Dividend collected by Bank 1,250 was wrongly entered in cash book as 1,520. What is balance as per pass book?
a. 3,480
b. 4,730
c. 2,730
d. 3,750
Q. House Building advance of 2.00 lakh paid to employees. It is a
a. Asset
b. Revenue Expenditure
c. Capital Expenditure
d. Deferred Revenue Expenditure
Q. Claims against company pending in court case. It is a
a. Current Liability
b. Current Asset
c. Contingent Liability
d. Un-secured Loan
Q. Which one of the following is not a negotiable instrument?
a. Currency Note
b. Promissory Note
c. Bill of Exchange
d. Crossed Cheque
Q. Which one of the following is not the feature of a joint venture business?
a. Co-venture may or may not contribute initial capital.
b. It has limited duration
c. It is done for specific purpose
d. Profit or loss on joint venture is shared as per their capital ratio.
Q. Del Credere Commission in consignment business is generally payable on
a. Total sales
b. only on credit sales.
c. other than credit sales
d. % on recovery of bad debt.
Q. When goods are purchased for the joint venture, the account to be debited is
a. Purchase account
b. Joint Venture account
c. Venture’s capital account
d. either Purchase account or Joint venture account
Q. The abnormal loss on consignment is credited to:
a. Profit and Loss Account
b. Consignee’s Account
c. Consignment Account
d. Insurance Company Account
Q. Fixed Assets and Current Assets are categorized as per concept of
a. Separate Entity
b. Going Concern
c. Consistency
d. Time period
Q. An expenditure is in capital nature when
a. the receiver of the amount is going to treat it for the purchase of fixed assets.
b. it increase the quantity of fixed assets.
c. it is paid as interests on loans for the business
d. it maintains a fixed assets
Q. Cash book is a
a. Subsidiary book
b. Subsidiary book and a Ledger account
c. Ledger account
d. None of the above
Q. The periodical total of the Sales Return Book is posted to the
a. Debit side of Sales Account
b. Debit side of Sales Return Account
c. Credit side of Sales Return Account
d. Debit side of Debtors Account
Q. Goods sent on consignment account is of the nature of
a. Personal Account
b. Nominal Account
c. Real Account
d. Sales Account
Q. Which of the following items are shown in the income and expenditure account?
a. Only items of capital nature.
b. Only items of revenue nature which are received during the period of accounts.
c. Only items of revenue nature pertaining to the period of accounts.
d. Both the items of capital and revenue nature.