R4RIN – MCQs, Mock Tests | MBA MBA Accounting MCQ Question Set 10

The Letter "c" is shown in the Cash book which means _______

1. consignment
2. Commitment
3. Contra Entry
4. Cash entry

✅ Correct Answer: 3

Daily Record of Transaction means

1. Ledger
2. Journal
3. Trial Balance
4. None of these

✅ Correct Answer: 2

The person to whom the amount has to be paid is known as _______

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

✅ Correct Answer: 4

The appropriate book to record credit purchase of machinery is _______

1. purchases book
2. journal
3. cash book
4. petty cash book.

✅ Correct Answer: 2

Which account is generally used for rectification of errors?

1. Memorandum account
2. Suspense account
3. Rectification account
4. Adjustment account

✅ Correct Answer: 2

Premium received on issue of shares is a ______________. tempor

1. capital receipt
2. revenue receipt
3. deferred capital receipt
4. deferred revenue receipt

✅ Correct Answer: 1

The preparation of a Trial balance helps in ______

1. locating errors in principle
2. locating errors of omission
3. locating clerical errors
4. locating compensatory errors

✅ Correct Answer: 3

Which one of the following is capital expenditure?

1. Cost of advertisement
2. Purchase of a delivery van
3. Purchase of raw material
4. Purchase of machine oil

✅ Correct Answer: 2

Interest on capital is credited to ______ account.

1. Expenses account
2. Income account
3. Capital account
4. Asset account

✅ Correct Answer: 3

Receipts and payments account is a _______

1. Personal account
2. Nominal account
3. Real account
4. Representative account

✅ Correct Answer: 2

Any amount received towards endowment fund is a ________receipt.

1. Ordinary
2. Special
3. Revenue
4. Capital

✅ Correct Answer: 4

Income and expenditure account is a _____

1. Real account
2. Nominal account
3. Personal account
4. Representative account

✅ Correct Answer: 2

Sale of old newspaper is to be shown on the credit side of the ______

1. cash book
2. income and expenditure
3. balance sheet
4. trading account

✅ Correct Answer: 2

Non-trading institutions prepare ________

1. profit and loss account
2. trading account
3. manufacturing account
4. income and expenditure account

✅ Correct Answer: 4

The process of recording financial transactions in the journal is called ______

1. Journalizing
2. Utilizing
3. Posting
4. Balancing

✅ Correct Answer: 1

Accounting principles are generally based on _______

1. practicability
2. Subjectivity
3. convenience in recording
4. Applicability

✅ Correct Answer: 1

Credit sales are recorded in ______

1. sales book
2. cash book
3. journal proper
4. purchases book

✅ Correct Answer: 1

Debit balance in cash book means ______

1. overdraft as per pass book
2. overdraft as per cash book
3. credit balance as per pass book
4. debit balance as per day book

✅ Correct Answer: 3

The balance of the petty cash book is ______

1. an asset
2. a liability
3. an income
4. an expenditure

✅ Correct Answer: 1

Preliminary expenses are an example of ________

1. deferred Revenue Expenditure
2. revenue Expenditure
3. capital Expenditure
4. common expenditure

✅ Correct Answer: 2

Wages is an example of ________

1. capital expenses
2. indirect expenses
3. direct expenses
4. revenue expenses

✅ Correct Answer: 3

A bill drawn and accepted for a genuine trade transaction is termed as a _______ bill.

1. Trade
2. Time
3. Inland
4. Personal

✅ Correct Answer: 1

Drawings account is related to ______

1. Nominal Account
2. Personal Account
3. Real Account
4. None of the above

✅ Correct Answer: 2

Returns outward book makes a record of _______

1. goods returned to the suppliers
2. goods returned to customers
3. goods returned to proprietor
4. goods returned to neighbors

✅ Correct Answer: 1

Error of commission do not allow _______

1. correct totalling of the balance sheet
2. correct totalling of the balance sheet
3. the trail balance to agree
4. correct totaling of the day book

✅ Correct Answer: 3

Cancelling the original bill and drawing a fresh acceptance is known as ______

1. retiring under rebate
2. Discounting
3. Renewal
4. bill sent to bank for collection

✅ Correct Answer: 3

In accounting, the benefit giving aspect is said to be

1. Debit
2. Credit
3. Debit and Credit
4. None of these

✅ Correct Answer: 2

The person who writes out the bill of exchange is known as

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

✅ Correct Answer: 3

The balance of the petty cash book is ______

1. an asset
2. a liability
3. an income
4. an expenditure

✅ Correct Answer: 1

Revenue expenditure is intended to benefit _______

1. current period
2. future period
3. past period
4. both (1) and (2)

✅ Correct Answer: 1

The person to whom the bill is endorsed is called ______

1. Endorse
2. Endorse
3. Drawe
4. Drawe

✅ Correct Answer: 2

Purchases made on credit not recorded at all would affect _______

1. Purchases account
2. Suppliers account
3. Purchases account and suppliers account
4. Wages account

✅ Correct Answer: 3

Which item is shown on the debit side of a trial balance?

1. Rent outstanding
2. Prepaid expenses
3. Purchases returns
4. Excess of income over expenses by the firm

✅ Correct Answer: 2

The assets of a business can be classified as _______

1. only fixed assets
2. only current assets
3. fixed and current assets
4. fictitious assets

✅ Correct Answer: 3

Non-trading institutions prepare _________

1. Income and expenditure account
2. Trading and profit and loss account
3. Only trading account
4. Only revenue account

✅ Correct Answer: 1

Sales of old material must be shown on the credit side of ______

1. cash book
2. income and expenditure account
3. balance sheet
4. Trading account

✅ Correct Answer: 2

The main aim of ______________ accounting is to ascertain cost relating to the various activities of the business and to have cost control.

1. financial accounting
2. cost accounting
3. management account
4. human resource accounting

✅ Correct Answer: 2

Bills payable book is to keep a record of __________

1. bills payable to creditors
2. bills received from supplier
3. credit purchases
4. credit sales

✅ Correct Answer: 1

The amount brought in by the proprietor in the business should be credited to:

1. cash account
2. capital account
3. drawing account
4. bank account

✅ Correct Answer: 2

If a cheque sent for collection is dishonoured, the debit is given to _______

1. suppliers account
2. bank account
3. customers account
4. cash account

✅ Correct Answer: 3

State which of the following errors will not be revealed by the trial balance _______

1. errors of complete omission
2. errors of carrying forward
3. wrong totaling of the purchases book
4. error of partial omission

✅ Correct Answer: 1

The balance of cash account indicates _______

1. . net income for the period
2. net loss for the period
3. net cash on hand
4. net worth of the business

✅ Correct Answer: 3

Outstanding salaries are shown as _______

1. an expense
2. a liability
3. an asset
4. an income

✅ Correct Answer: 2

Prepaid insurance is _______

1. Nominal account
2. Personal account
3. Real account
4. Prepaid account

✅ Correct Answer: 2

_______ is the person who prepares Bank Reconciliation Statement.

1. customer of the bank
2. ban
3. neither of the above two
4. reserve bank of India

✅ Correct Answer: 1

Provision for bad debts is calculated on _______

1. creditors
2. Sales
3. Purchases
4. Debtors

✅ Correct Answer: 4

The discount column of a triple column cash book records _______

1. trade discount
2. cash discount
3. quantity discount
4. seasonal discount

✅ Correct Answer: 2