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Accounting Multiple Choice Questions with answers | Download PDF for MCQs

  MCQs BASED ON " Reconstitution of A Partnership Firm-Change in Profit-Sharing Ratio among the Existing Partners " 1. Increase in the value of assets on reconstitution of the partnership firm results into— (a) Gain to the existing partners (b) Loss to the existing partners (c) Neither a gain nor a loss to the existing Partners 2. Recording of an unrecorded asset on the reconstitution of a partnership firm will be— (a) A gain to the existing partners (b) A loss to the existing partners (c) Neither a gain nor a loss to the existing partners 3. Recording of an unrecorded liability on the reconstitution of a partnership firm will be— (a) A gain to the existing partners (b) A loss to the existing partners (c) Neither a gain nor a loss to the existing partners 4. Revaluation Account or Profit and Loss Adjustment Account is a— (a) Personal Account (b) Real Account (c) Nominal Account 5. The balance of Revaluation Account is transferred to old Part

Accounting Multiple Choice Questions with answers | Download PDF for MCQs

  MCQs BASED ON "PARTNERSHIPS BASICS FUNDAMENTALS" 1. According to……., "The relation between persons who have agreed to share profits of a business carried on by all or any of them acting for all"— (a) Batliboi (b) L.H. Haney (c) Spicer and Pegler (d) Indian Partnership Act,1932. 2. Main characteristics of Indian Partnership Act 1932, are— (a) More than one person (b) To earn the profit object (c) Relation of owner and as an agent (d) All the above. 3. The relation of partner with the firm is— (a) As manager (b) As an agent and owner (c) As a servant (d) As a monopolist. 4. In the absence of Partnership Deed, the interest is allowed on the loan given by the partners to the firm— (a) 9% per annum (b) 8% per annum (c) 6% per annum (d) 5% per annum 5. In the absence of Partnership Deed, the interest is allowed on the capital of the partner— (a) No interest is allowed (b) @ 9% per annum (c) @ 5% per annum (d) @ 6% per a

Accounting Multiple Choice Questions with answers | Download PDF for MCQs

MCQs BASED ON "TRIAL BALANCE" 1 A trail balance is prepared (a) after preparation financial statement (b) after rewarding transactions in subsidiary books (c) after posting to ledger is complete (d) after posting to ledger is complete and accounts have been balanced 2 Trial balance shows the (a) final position of accounts (b) standard position of accounts (c) working position of accounts (d) None of the above 3 Trial balance is considered as the connecting link between accounting records and preparation of financial statements. It provides a basis for (a) auditing accounting reports (b) accuracy of the ledger account (c) further processing of accounting (d) All of the above 4 Agreement of trail balance is affected by (a) One sided errors only (b) Two sided errors only (c) Both (a) and (b) (d) None of the above 5 What will be the effect on trial balance if ₹ 2,000 received as rent and correctly entered in the cash book but not posted

Accounting Multiple Choice Questions with answers | Download PDF for MCQs

  MCQs BASED ON "CASHBOOK" 1 When affirm maintains a cash book, it does not need to maintain (a) Journal Proper (b) Purchases (Journal) Book (c) Sales (Journal) Book (d) Bank and cash account in the ledger 2 Double column cash book records (a) all transactions (b) cash and bank transactions (c) only cash transactions (d) only credit transactions 3 Which cash book is prepared to book small amounts by cashier to save valuable time to main cashier? (a) Three column cash book (b) Two column cash book (c) Petty cash book (d) None of the above 4 Purchase book is also known as (a) invoice book (b) bought book (c) sales book (d) Both (a) and (b) 5 Goods purchased on cash are recorded in the (a) Purchases (Journal) Book (b) Sales (Journal) Book (c) Cash Book (d) Purchases return (Journal Book) 6 Cash book does not record transactions of (a) cash nature (b) credit nature (c) cash and credit nature (d) None of above 7 Total

Accounting Multiple Choice Questions with answers | Download PDF for MCQs

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  MCQs BASED ON "FINANCIAL STATEMENTS" 1 The financial statements consist of (a) Tribal balance (b) Profit and Loss account (c) Balance sheet (d) Both (b) and (c) 2 Income statements includes (a) Trading account (b) Profit and Loss account (c) Both (a) and (b) (d) Balance sheet 3 Ram is the owner of a firm. He brought additional capital of ₹ 1,00,000 to the firm. The receipt of money in business is (a) revenue receipt (b) capital receipt (c) revenue expenditure (d) capital expenditure 4 Profit and loss account is prepared (a) for the whole year (b) for a particular period (c) on a particular date (d) None of the above 5 Choose the correct chronological order of ascertainment of the following profits from the profit and loss (a) Operating Profit, Net Profit, Gross Profit (b) Operating Profit, Gross Profit, Net Profit (c) Gross Profit, Net Profit, Operating Profit (d) Gross Profit, Net Profit, Operating Profit 6 Liability whi

Accounting Multiple Choice Questions with answers | Download PDF for MCQs

  MCQs BASED ON " INTRODUCTION TO RECONCILIATION STATEMENT" A Bank Reconciliation Statement is prepared by a) Creditors b) Bank c) Account holder in bank d) Debtors 2. A Bank Reconciliation Statement is prepared with the Balance of a) Passbook b) Cashbook c) Both (a) and (b) d) None of the above 3. Passbook is copy of a) Customer account b) Bank column of cash book c) Cash column of cash book d) Receipts and payments 4. Bank reconciliation Statement is prepared after adjusting a) Cash b) Bank c) Cashbook d) Bank overdraft 5. In case when Balance of Cash book is given, first item in Bank reconciliation Statement will be balance as per a) Cash b) Bank c) Bank book d) Cash book 6. In which approach, balance as per cash book or balance as per passbook is taken as starting item? a) In case of with adjusting cashbook b) In case of after adjusting cashbook c) In case of without adjusting cashbook d) None of the above 7.

Accounting Multiple Choice Questions with answers | Download PDF for MCQs

MCQs BASED ON "ACCOUNTING EQUATION, JOURNAL, and  VOUCHER " 1. Voucher is prepared for (a) cash received and paid (b) cash/credit sale (c) cash/credit purchase (d) All of the above 2. Voucher is prepare from a) documentary evidence b) journal entry c) ledger account d) All of the above 3. Which document is issued at the time of purchase return? a) Debit note b) Credit note c) ₹1,000 note d) None of these 4. Identify the transaction for which transfer voucher is prepared? a) A payment of ₹10,000 towards rent b) A receipt of ₹15,000 towards professional fee c) A credit sale of ₹5,000 to Ram d) None of the above 5. At the time of preparing voucher of sales, the accountant of Arihant publication requires original copy of sales bill. Identify the correct statement from the following. (a) No, the accountant is not correct with his stand (b) Yes, the accountant is correct with his stand (c) Somehow the accountant is correct (d) None