Book Keeping And Accountancy MCQ
(HSC Maharashtra Board)
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
Account.
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 __________
side.
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 __________
account.
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 ___________
ratio.
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
Tags:
Standard 12