Book Keeping And Accountancy MCQ | HSC Maharashtra Board

Book Keeping And Accountancy MCQ

(HSC Maharashtra Board)

Book Keeping And Accountancy MCQ

Q.1) What type of expenses are paid out of Gross Profit?

A) General expenses
B) Financial expenses
C) Selling expenses
D) All of the above

Ans: All of the above

Q.2) Which of the following is NOT an example of intangible assets?

A) Franchise rights
B) Goodwill
C) Patents                
D) land

Ans : Land

Q.3) Which of the following is an example of business liability?

A) Land
B) Building
C) Cash
D) Creditors

Ans : Creditors

Q.4) The unfavorable balance of Profit and Loss account should be

A) Added to liabilities
B) Subtracted from current assets
C) Subtracted from capital
D) Subtracted from liabilities

Ans : Subtracted from capital
Q5) Which of the following account will be credited, if business bought goods on credit from Mr.Z?

A) Purchases account
B) Mr. Z account
C) Cash account
D) Sales account

Ans : Mr. Z account

Q.6) Interest on loan paid by business is an example of

A) Revenue expense
B) Income
C) Asset
D) Return outward

Ans : Revenue expense

Q.7) Which of the following account will be credited when a typewriter is sold that has been used in the office?

A) Office equipment account
B) Cash account
C) Sales account
D) Purchase account

Ans : Office equipment account 

Q.8) The allocation of the cost of a tangible plant asset to expense in the periods, in which
services are received from the asset, is termed as

A) Appreciation
B) Depreciation
C) Fluctuation
D) None of the above

Ans :  Appreciation
Q.9) Which of the following item will be shown on debit side of debtors account?

A) Discount received
B) Return inwards
C) Discount allowed
D) Credit sales 

Ans : Credit sales

Q.10) When one or both aspects of a transaction are recorded in the wrong class or category of account, it is called

A) Error of principle
B) Error of omission
C) Error of commission
D) Error of original entry 

Ans : Error of principle  

Q.11)When there is no partnership agreement between partners, the division of Profits takes
place in ________ ratio.

A) Equal
B) capital ratio
C) initial contribution
D) experience and tenure of partner

Ans : Equal

Q.12) To find out Net Profit or Net Loss of the business __________ account is prepared.

A) Trading
B) Capital
C) Current
D) Profit and Loss

Ans : Profit and Loss
Q.13) A ____________ is an Intangible Asset.

A) Goodwill
B) Stock
C) Cash
D) Furniture

Ans : Goodwill

Q.14) In the absence of an agreement, interest on loan advanced by the partner to the firm is
allowed at the rate of _____________

A) 5%
B) 6%
C) 10%
D) 9%

Ans : 6%

Q.15) Liability of partners in a partnership business is ________.

A) Limited
B) Unlimited
C) Limited and Unlimited
D) None of the above

Ans : Unlimited

Q.16) The Indian Partnership Act is in force since _______.

A) 1932
B) 1881
C) 1956
D) 1984

Ans : 1932 

Q.17)Maximum number of Partners in a firm are ____ according to Companies Act 2013.

A) 10
B) 25
C) 20
D) 50

Ans : 50

Q.18) Not for Profit Concern renders __________ services to public at large.

A) Commercial
B) Social
C) Individual
D) Group

Ans : Social

Q.19) Donation for Scholarship Fund is ______.

A) Capital Receipt
B )Revenue Receipt
C) Capital Expenditure
D) Revenue Expenditure

Ans : Capital Receipt
Q.20)Income and Expenditure Account is a ________ Account.

A) Capital
B) Real
C) Personal
D) Nominal

Ans : Nominal

Q.21) Outstanding subscription at the end of the Accounting Year represents _______.
A) Liability
B) An Expenditure
C) An Asset
D) Capital Fund

Ans : An Asset

Q.22) Subscription received in advance during the accounting year is _______.

A) An income
B) An expenditure
C) An asset
D) A liability

Ans : A liability 

Q.23) Excess of Income over Expenditure is termed as ___________.

A) Deficit
B) Profit
C) Surplus
D) Loss

Ans : Surplus

Q.24) Not for Profit Concerns prepares _________ account instead of Profit and Loss account to
know the result.

A) Trading
B) Income and Expenditure
C) Cash
D) Receipt and Payments

Ans : Income and Expenditure
Q.25) The closing balance of Receipts and Payments account usually represent _______.

A) Closing Stock
B) Cash and Bank Balance
C) Surplus
D) Deficit

Ans : Cash and Bank Balance

Q.26) Not for Profit Organization is also called __________ organization.

A) Service
B) Trading
C) Profit Making
D) Commercial

Ans : Service

Q.27) Expenditure on Purchase of Building is a ________ Expenditure.

A) Capital
B) Revenue
C) General
D) Recurring

Ans : Capital

Q.28) Anuj and Eeshan are two partners sharing profits and losses in the ratio of 3:2. They
decided to admit Aaroh for 1/5th share, the new profit sharing ratio will be ____________

A) 12:8:5
B) 4:3:1
C) 12: 8:1
D)12: 3:1

Ans : 12:8:5 

Q.29) Excess of proportionate capital over actual capital represents _________.

A) Equal capital
B) Surplus Capital
C) Deficit Capital
D) Gain

Ans : Surplus Capital

Q.30)__________ is credited when an unrecorded asset is brought into the business.

A) Revaluation Account
B) Balance Sheet
C) Trading Account
D) Partners capital Account

Ans : Revaluation Account 
Q.31)When goodwill is withdrawn by the partner ________ account is credited. 

A) Revaluation 
B) Cash/Bank
C) Current
D) Profit and Loss Adjustment

Ans :  Cash/Bank

Q.32) If the asset is taken over by the partner _________ account is debited.

A) Revaluation
B) Capital
C) Asset
D) Balance Sheet

Ans :  Capital

Q.33) The Profit or Loss from revaluation on the retirement of a partner is shared by ______.

A) The remaining partners
B) All the partners
C) Only retiring partner
D) Bank

Ans : All the partners 

Q.34)Decrease in the value of assets should be __________ to Profit and Loss Adjustment

A) Debited
B) Credited
C) Added
D) Equal

Ans : Debited

Q.35) The balance of the capital account of retired partner is transferred to his _________
account if it is not paid.

A) Loan
B) Personal
C) Current
D) Son's

Ans : Loan 

Q.36) Gain ratio _______ Ratio less Old Ratio.

A) New
B) Equal
C) Capital
D) Sacrifice

Ans : New 

Q.37) New Ratio = Old Ratio + _____ Ratio

A) Gain
B) Capital
C) Sacrifice
D) Current

Ans : Gain  

Q.38) The ratio by which existing partners are benefited ________.

A) Gain Ratio
B) Sacrifice Ratio
C) Profit Ratio
D) Capital Ratio

Ans : Gain Ratio 

Q.39) Profit and Loss Suspense Account is shown in the new Balance Sheet on __________

A) Debit
B) Credit
C) Asset
D) Liabilities

Ans : Asset

Q.40) Death is a compulsory_________.

A) Dissolution
B) Admission
C) Retirement
D) Winding-up

Ans : Retirement
Q.41)The balance on the capital account of partners, on his death, is transferred to __________

A) Relatives
B) Legal Heir’s loan/Executors loan
C) Partner's capital
D) Partners Loan

Ans : Legal Heir’s loan/Executors loan  

Q.42) In case of dissolution assets and liabilities are transferred to ______ A/c.

A) Bank A/c
B) Partner’s capital A/c
C) Realisation A/c
D) Partner’s current A/c

Ans :Realisation A/c

Q.43) Dissolution expenses are credited to _________.

A) Realisation account
B) Cash/Bank account 
C) Partners’ capital account
D) Partners’ loan account

Ans : Cash/Bank account

Q.44) Deficiency of Insolvent partner will be suffered by solvent partners in their ___________

A) capital ratio
B) profit-sharing ratio
C) sale ratio
D) liquidity ratio

Ans : Cash/Bank account 

Q.45) If an asset is taken over by partner from firm his capital account will be ___________.

A) credited
B) debited
C) added
D) none of these

Ans : Debited

Q.46) If any unrecorded liability is paid on dissolution of the firm ___________ is debited.

A) Cash/Bank Account
B) Realization Account
C) Partners' Capital Account
D) Partners' Loan Account

Ans : Realization Account

Q.47) Partnership is completely dissolved when the partners of the firm become _________.

A) Solvent
B) Insolvent
C) Creditor
D) Debtors

Ans :Insolvent 

Q.48) Assets and liabilities are transferred to Realisation Account at their ______ value.

A) Market
B) Purchase
C) sale
D) book

Ans : Book
Q.49) If the number of partners in a firm falls below two, the firm stands_________.

A) Dissolved
B) Established
C) Realisation
D )None of these

Ans : Dissolved

Q.50)Realisation account is __________ on realisation of assets.

A) Debited
B) Credited
C) Deducted
D) Closed

Ans : Credited

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