R4RIN – MCQs, Mock Tests | CBES Board Class 11 MCQ for Class 11 Accountancy Set-2

Depreciation charged under diminishing method

1. Increase every year
2. Decrease every year
3. Increase in one year and decrease another year
4. Same every year

✅ Correct Answer: 2

An alternative term used for accumulated depreciation expenses?

1. Provision for depreciation
2. Cumulative depreciation
3. Targeted depreciation
4. Depletion

✅ Correct Answer: 1

Which of the following is not a type of reserve

1. Provision for bad debt
2. General reserve
3. Workmen compensation fund
4. Retained earnings

✅ Correct Answer: 1

Depreciation helps in determining

1. Accurate level of profit
2. Increases the value of asset
3. Revenue generation
4. Increase the burden of tax

✅ Correct Answer: 1

What is the rate of charging depreciation under diminishing method?

1. 12% p.a.
2. 15% p.a.
3. 10% p.a.
4. Not fixed

✅ Correct Answer: 4

Under which depreciation method the amount of depreciation expenses remains same throughout the useful life of a fixed asset

1. Straight line method
2. Reducing balance method
3. Number of units produced method
4. Machine hours method

✅ Correct Answer: 1

On dishonor of a discounted bill whom does the bank look for payment

1. Drawer
2. Drawee
3. Endorser
4. Payee

✅ Correct Answer: 1

The act for signing by the drawer on the book of the instruments for the purpose of transfer

1. Acceptance of bill
2. Cheque
3. Endorsement
4. Bill

✅ Correct Answer: 3

Which balance is shown by a B/R Book

1. Credit
2. None
3. Both
4. Debit

✅ Correct Answer: 4

On whom the trade bill drawn

1. Seller
2. Creditor
3. Debtor
4. Owner

✅ Correct Answer: 3

The party who is entitled to receive the cash of a bill receivable is called

1. Drawer
2. Drawee
3. Capitalist
4. Bank

✅ Correct Answer: 1

Discounting Charges =

1. Amount of Bill Discounted × Rate × Unexpired Period
2. Amount of Bill Discounted × Rate / Unexpired Period
3. Amount of Bill Discounted × Rate + Unexpired Period
4. Amount of Bill Discounted + Rate × Unexpired Period

✅ Correct Answer: 4

According to Negotiable Instrument Act, 1881, which of the following refers to “an instrument in writing (not being a bank note or a currency note) containing unconditional undertaking, signed by the maker to pay on demand or at a fixed or determinable future time a certain sum of money only to or to the order of a certain person, or to the bearer of the instrument”?

1. Promissory note
2. Bearer debentures
3. Cheque
4. Bill of exchange

✅ Correct Answer: 4

If the due date is public holiday what will be the due date of the bill

1. Preceding day
2. Following day
3. The same day
4. After two days

✅ Correct Answer: 1

Fee paid in cash to Notary Public is charged by

1. Holder of bill of exchange
2. Drawee
3. Drawer
4. None

✅ Correct Answer: 1

Kamal draws a bill on Sahil for Rs.3000. Kamal endorsed it to Rohan. Rohan endorsed it to Rakesh. The payee of the bill will be

1. Kamal
2. Rakesh
3. Sahil
4. Rohan

✅ Correct Answer: 2

Noting charges are paid by the ___ but these are recordable from the ____

1. Drawer, Drawer
2. Drawer, Drawee
3. Drawee, Drawer
4. Drawee, Drawee

✅ Correct Answer: 3

Person to whom the bill is endorsed called ____

1. Endorsement
2. Endorser
3. Endorsee
4. None

✅ Correct Answer: 2

What are the parties to a bill of exchange

1. Drawee, Drawer, Payee
2. Drawee, Drawer, Debtor
3. Payer, Drawee, Drawer
4. Drawee, Drawer, Creditor

✅ Correct Answer: 1

Which bill is not allowed 3 days of grace

1. Bill at the time of due date
2. Bill at sight
3. Bill after due date
4. Bill before due date

✅ Correct Answer: 2

The purpose of accommodation bill is :

1. To finance actual purchase
2. When both parties are in need of funds
3. To facilitate trade transmission
4. None

✅ Correct Answer: 2

It is a period of time after which a bill becomes payable?

1. Grace days
2. Maturity
3. Usance
4. Tenor

✅ Correct Answer: 4

If the drawer is in need of money and cannot wait till due date and receive the money form bank is called?

1. Endorsement of bill
2. Discounting of bill
3. Retirement of bill
4. Dishonor of bill

✅ Correct Answer: 2

In case if endorsement of bill the endorser debits?

1. Creditor account
2. Cash account
3. Bill receivable account
4. Bill payable account

✅ Correct Answer: 1

When an acceptor refuses to pay the amount of bill to the holder of bill on its maturity is called?

1. Honored bill
2. Dishonored bill
3. Retired bill
4. Endorsed bill

✅ Correct Answer: 2

A bill of exchange is an?

1. A promise
2. Unconditional order
3. A request
4. A order

✅ Correct Answer: 2

A person who writes out the order to pay is called?

1. Drawer
2. Acceptor
3. Payee
4. Drawee

✅ Correct Answer: 1

When a drawer discounts the bill, he gets?

1. More than face value
2. Less than face value
3. Equal to face value
4. None of above

✅ Correct Answer: 2

In case of term bill extra three days are given to acceptor are called?

1. Days of bill payable
2. Days if bill receivable
3. Days of grace
4. Days of tenor

✅ Correct Answer: 3

How many parties are involved in case of discounting of bill?

1. Two
2. Three
3. Four
4. Unlimited

✅ Correct Answer: 1

Bill of Exchange has parties :

1. 6
2. 2
3. 3
4. 4

✅ Correct Answer: 3

The party which is ordered to pay the amount of bill of exchange is called :

1. Drawee
2. Payee
3. Drawer
4. None of these

✅ Correct Answer: 1

The party which is entitled to receive the payment of bill of exchange is known as :

1. Drawer
2. Payee
3. Drawee
4. None of these

✅ Correct Answer: 2

Due date of a bill of exchange drawn on 30th January, 2011 for one month will be :

1. 5 Mar
2. 3 Mar
3. 29 Feb
4. 4 Mar

✅ Correct Answer: 2

The promissory note should be signed by

1. Payee
2. Drawee
3. Drawer
4. Promiser

✅ Correct Answer: 4

On dishonor of a discounted bill who does the bank look for payment?

1. Drawer
2. Payee
3. Endorser
4. None

✅ Correct Answer: 1

While calculating the due date of the bill, how many days are added to the period of the bill :

1. 4 days
2. 3 days
3. 5 days
4. Neither of these

✅ Correct Answer: 2

Encashing the bill before the date of its maturity is called :

1. Dishonour of Bill
2. Retirement of Bill
3. Discounting of Bill
4. Endorsement of Bill

✅ Correct Answer: 3

A bill of exchange renewed generally at the request of

1. Drawee
2. Bank
3. Drawer
4. None

✅ Correct Answer: 1

A bill of exchange can not be

1. Endorsed
2. Accepted
3. Refused
4. Crossed

✅ Correct Answer: 3

Trading Account discloses-

1. Gross profit
2. Net profit
3. Net loss
4. Gross profit or Gross loss

✅ Correct Answer: 4

Direct Expenses are entered in:

1. Trading Account
2. profit & Loss Account
3. Balance sheet
4. None of these

✅ Correct Answer: 1

Profit and loss Account discloses:

1. Gross profit
2. Gross profit or Gross loss
3. Gross profit or Gross loss
4. None of these

✅ Correct Answer: 2

Goodwill is a-

1. Fixed Asset
2. Current Asset
3. Fictitious Asset
4. None of these

✅ Correct Answer: 1

Drawing is deducted from:

1. Sales
2. Purchase
3. Returns outward
4. Capital

✅ Correct Answer: 2

Outstanding Expenses are related to-

1. Current year
2. Next year
3. Last year
4. None of these.

✅ Correct Answer: 1

Prepaid expenses are shown in-

1. Liability side
2. Asset side
3. Assets or Liability side
4. None of these.

✅ Correct Answer: 2

Charity of goods is-

1. Expenses
2. Loss
3. Profit
4. None of these.

✅ Correct Answer: 2

If a person fails to pay his debt, such amount is considered as-

1. Bad debts
2. Bad debts recovered
3. Provision for Bad debt
4. None of these.

✅ Correct Answer: 1

The object of non – trading concerns-

1. Social service
2. Profit earning
3. Both of these
4. None of the above.

✅ Correct Answer: 1