Accounting MCQ Ques and Ans Advanced Accountancy (Commerce)
1.
Accounting
provides information on
a.
Cost and income for managers
b.
Company's tax liability for a particular year
c.
Financial conditions of an institutions
d. All of the above
2.
The long term
assets that have no physical existence but are rights that have value is known
as
a.
Current assets
b.
Fixed assets
c. Intangible assets
d.
Investments
3.
The assets
that can be converted into cash within a short period (i.e. 1 year or less) are
known as
a. Current assets
b.
Fixed assets
c.
Intangible assets
d.
Investments
4.
Patents,
Copyrights and Trademarks are
a.
Current assets
b.
Fixed assets
c. Intangible assets
d.
Investments
5.
The debts
which are to be repaid within a short period (year or less) are known as
a. Current liabilities
b.
Fixed liabilities
c.
Contingent liabilities
d.
All of the above
6.
The sales
income (Credit and Cash) of a business during a given period is called
a.
Transactions
b.
Sales Returns
c. Turnover
d.
Purchase Returns
7.
Any written
evidence in support of a business transaction is called
a.
Journal
b.
Ledger
c.
Ledger posting
d. Voucher
8.
The account
that records expenses, gains and losses is
a.
Personal account
b.
Real account
c. Nominal account
d.
None of the above
9.
Real account records
a.
Dealings with creditors or debtors
b. Dealings in commodities
c.
Gains and losses
d.
All of the above
10.
In Journal, the business transaction is recorded
a. Same day
b.
Next day
c.
Once in a week
d.
Once in a month
11. The following is (are) the type(s) of Journal
a.
Purchase Journal
b.
Sales Journal
c.
Cash Journal
d. All of the above
12. The process of entering all transactions from the Journal
to Ledger is called
a. Posting
b.
Entry
c.
Accounting
d.
None of the above
13. The following is a statement showing the financial status
of the comapany at any given time
a.
Trading account
b.
Profit & Loss statement
c. Balance Sheet
d.
Cash Book
14. The following is a statement of revenues and expenses for
a specific period of time
a.
Trading account
b.
Trial Balance
c. Profit & Loss statements
d.
Balance Sheet
15. Balance sheet is a statement of
a.
Assets
b.
Liabilities
c.
Capital
d. All of the above
16. Balance sheets are prepared
a.
Daily
b.
Weekly
c.
Monthly
d. Annually
17.
The ratios that refer to the ability of the firm to meet
the short term obligations out of its short term resources
a. Liquidity ratio
b.
Leverage ratio
c.
Activity ratio
d.
Profitability ratio
18. The measure of how efficiently the assets resources are
employed by the firm is called
a.
Liquidity ratio
b.
Leverage ratio
c. Activity ratio
d.
Profitability ratio
19. The following is (are) the current liability (ies)
a.
Bills payable
b.
Outstanding expenses
c.
Bank Overdraft
d. All of the above
20. Current ratio =
a.
Quick assets/Current liabilities
b. Current assets/Current liabilities
c.
Debt/Equity
d.
Current assets/Equity
21. Liquid or Quick assets =
a. Current assets - (Stock + Work in
progress)
b.
Current assets + Stock + Work in progress
c.
(Current assets + Stock) + Work in progress
d.
(Current assets + Work in progress) - Stock
22. Lower the Debt Equity ratio
a.
Lower the protection to creditors
b. Higher the protection to creditors
c.
It does not affect the creditors
d.
None of the above
23. A higher inventory ratio indicates
a.
Better inventory management
b.
Quicker turnover
c. Both A and B
d.
None of the above
24. Return on Investment Ratio (ROI) =
a.
(Gross profit / Net sales) x 100
b.
(Gross profit x Sales / Fixed assets) x 100
c.
(Net profit / Sales) x 100
d. (Net profit / Total assets) x 100
25. A low Return on Investment Ratio (ROI) indicates
a.
Improper utilization of resources
b.
Over investment in assets
c. Both A and B
d.
None of the above
26. Sales expenditure budget is prepared by estimating the
expense(s) of
a.
Advertisement
b.
Market analysis
c.
Salesman's salary
d. All of the above
27. Budgeting is difficult to apply in the following cases
a.
Products subjected to rapid changes
b.
Job order manufacturing
c.
Uncertain market condition
d. All of the above
28. A Master Budget consists of
a.
Sales budget
b.
Production budget
c.
Material budget
d. All of the above
29. The accounting process involves recording
a. Quantifiable economic event
b.
Non Quantifiable economic event
c.
All of them
d.
None of them
30. In accounting, an economic event is referred to as
a.
Cash
b.
Bank statement
c. Transaction
d.
Exchange of money
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