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MBA Accounting MCQ Question Set 9
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1. While discounting the bill, debit should be given to ______
bank account
bill receivable account
acceptors account
cash account
2. Account current is a journal:
True
False
Partly true
Partly false
3. The holder of a bill who endorses it is called
Endorse
Endorse
Accepto
Paye
4. The balance of cash account indicates __________
net income for the period
net loss for the period
net cash on hand
net worth of the business
5. Wages paid for erection of machinery are debited to _______
Wages account
Machinery account
Profit and loss account
Deferred wages account
6. A Cheque received and deposited in the bank on the same day is recorded in the _______
cash column of the cash book
bank column of the cash book
credited in the cash book
debited in the cash book
7. Expenditure incurred on research is an example of _______
capital expenditure
revenue expenditure
deferred revenue expenditure
partly capital expenditure
8. Ledger is also called ________
principal book of accounts
cash book
subsidiary books
petty cash book.
9. Rs. 500 spent on servicing office typewriter should be debited to _________
Miscellaneous expenses account
Typewriter account
Repairs account
Services account
10. The receipts and payments account begins with ________
debit balance
credit balance
no balance
normal balance
11. A debit balance in the income and expenditure account denotes excess of ____ over______.
income, expenditure
assets, liabilities
liabilities, assets
expenditure, income
12. Which of the following items should not be entered in receipts and payments account of a club?
Sale of old newspaper
Loss on sale of old furniture
Subscriptions received in advance
Expenses for previous year
13. Income and expenditure account reveals ________
cash in hand
surplus or deficiency
capital account
a. revenue account
14. Any written document in support of a business transaction is called a ________
Voucher
Bill
Carbon copy
Expense bill
15. Bills Receivable book is to keep record of _______
a. bills received from customers
a. bills received from supplier
a. credit purchases
a. credit sales
16. Book-keeping is mainly concerned with __________
recording of financial data relating to business operations
designing the system in recording, classifying, summarizing the recorded data
interpreting the data for internal and external end users
only for internal purposes
17. Purchase of machinery is recorded in _______
sales book
journal proper
purchases book
sales returns book
18. A bank pass book is a copy of ________
the cash column of a customers cash book
the bank column of a customers cash book
the customers account in the banks ledger
the customer account in the suppliers ledger
19. Revenue receipts are ______________ in the business.
non-recurring
Recurring
Accumulating
non-accumulating
20. Which account is generally used for rectification of errors?
Memorandum account
Suspense account
Rectification account
Adjustment account
21. Balance sheet is a _______
statement
Account
Ledger
Book
22. A person who draws a bill of exchange is known as the _____
Drawee.
Drawer.
Payer.
Payee.
23. Bank account is _______
Nominal account
Real account
Personal account
none of these above
24. Cash book prepared on imprest system is ________
two column cash book
cash book
petty cash book
purchase book
25. Heavy advertising to launch a new product is a _______
capital expenditure
deferred revenue expenditure
other expenditure
revenue expendture
26. When a bill is discharged, the acceptor debits ____
Creditors account
Cash account
Bills payable account
Bills receivable account
27. Capital=
Asset - Liabilitie
Asset
Liabilities
All the abov
28. Which one the following is an example of an intangible asset?
Preliminary expenses
Discount on issue of debentures
Investments
Copyrights
29. Which one of the following is an example of personal account?
Capital account
Building account
Cash account
Investment account
30. Any expenditure incurred in order to reduce the operating expenses is _____
capital expenditure
revenue expenditure
deferred revenue expenditure
promotional expenditure
31. The method of account current usually employed by the banker is known as _______
Daily balance method
Red ink interest
Current account
Product method
32. A credit sale of goods to Shiva should be debited to _______
Sales account
Goods account
Shiva account
Purchase account
33. Any donation received for a specific purpose is a _________
Liability
Assets
revenue receipt
capital receipts
34. Purchase of Typewriter would result in ______________ of fund.
Change
application
Service
no flow
35. Depreciation deducted from the concerned _______
Liability
Asset
Expenses
Incomes
36. Excess of income over expenditure in shown on the ______________ side of income and expenditure account.
Credit
Debit
Upper
Lower
37. Subscriptions received in advance will figure in the _________
balance sheet
receipts and payment account
income and expenditure account
revenue account
38. Specific donations received by a non-trading concern are usually ______
revenue receipt
capital receipt
capital expenditure
revenue expenditure
39. Subscription received in advance is _______
an income
an asset
a liability
an expense
40. ________ is given to promote sales.
Cash discount
Trade discount
Quantity discount
Price discount
41. The basic function of financial accounting is to ______
record all business transactions
interpret the financial data
assist the management in performing functions effectively
information to management
42. Ledger is a book of ______________empor
original entry
final entry
all cash entry
all credit entry
43. In triple column cash book, cash withdrawn from bank for office use will appear in ______
debit side of the cash book only
both sides of the cash book
credit side of the cash book only
credit side of the bank account
44. The appropriate book to record credit purchase of machinery is _______
purchases book
journal
cash book
petty cash book
45. Interest on drawings is ______
expenditure for the business
expense for the business
gain for the business
loss for the business
46. A bill drawn and accepted for providing funds to a friend in need is known as _______
Cheque.
promissory note.
accommodation bill.
demand bill.
47. Which of the following is related to nominal account?
Bank account
Commission account
Furniture account
Interest received account
48. Goods destroyed by fire should be credited to _______
Purchases account
Sales account
Loss of goods by fire account
Insurance account
49. Errors which affect one account can be _______
errors of omission
errors of principle
errors of posting
error of commission
50. Bills are drawn by ______
Creditors
Debtors
Agent
Brokers
Submit