MCQ on Indian Railways Administration and Finance An introduction(Bank reconciliation statement ,Inventories & Depreciation)-PC-11
Bank
reconciliation statement
1) Debit
balance in the Pass Book means:
A) Favourable
balance in the Cash Book
B) Unfavourable
balance in the Cash Book
C) Favourable
balance in the Pass Book
D) Unfavourable
balance in the Pass Book.
2) Bank
Reconciliation Statement is a
(A) Part of Cash Book
(B) Part of Bank Account
(C) Part of Financial statements
(D) None of the above.
3)
When balance as per Pass
Book is the starting point, interest allowed by bank is
(A) Added
(B) Subtracted
(C) Not required to be adjusted
(D) None of the above
4)
When the balance as per Cash Book is the
starting point, direct deposit by customer:
A) Added
B) Subtracted
C) Not
required to be adjusted
D) Neither
of the two
5) Credit
Balance in the Cash Book means:
A) Overdraft
as per Pass Book
B) Credit
balance as per Pass Book
C) Debit
balance in the Cash Book
D) Neither
of these.
6) Bank
reconciliation statement may be prepared with the balance of
(A) Cash book
(B) Pass book
(C) Either Cash book or Pass book
(D) Neither cash book or pass book
7) A Pass
book is a
(A) Copy of
banking transactions entered in the cash book
(B) Copy of
the customers’ ledger accounts maintained by the bank
(C) Record
of all cash transactions
(D) Copy of
firms receipts and payments.
8) Bank
reconciliation statement is prepared by
(A) Bank’s customers
(B) Bank
(C) Proprietor of the business
(D) Tax Authorities
Answer key
Bank reconciliation statement
1D 2D 3B 4A 5A 6C 7B 8A
1)
The amount of purchase if Cost of goods sold is
Rs. 80,700; Opening stock Rs.5,800; Closing stock Rs.6,000
(A) Rs.80,500
(B) Rs.
74,900
(C) Rs.
74,700
(D) Rs.
80,900
2) Stock
is
(A) Included
in the category of Fixed assets
(B) An
intangible fixed asset
(C) An
investment
(D) A part
of current assets
3)
Average stock = Rs. 12,000; closing stock is Rs.
3,000 more than the opening stock. The value of closing stock is ____
(A) Rs.12,000
(B) Rs.24,000
(C) Rs.10,500
(D) Rs.13,500
4) if the
profit is 25% of the cost price then it is
(A) 25% of the sales price
(B) 33% of the sales price
(C) 20% of the sales price
(D) 15% of the sales price
Answer key
Inventories
1D 2D 3C 4C
1)
Original cost = Rs.1,26,000; Salvage value = Rs.
6,000. Useful life = 6 Years. Annual depreciation under SLM =
(A) Rs.
21,000
(B) Rs.
20,000
(C) Rs.
15,000
(D) Rs.
14,000
2) In the case of downward
revaluation of an asset which is for the first time revalued , the account to
be debited is
(A) Fixed
asset
(B) Revaluation
Reserve
(C) Profit
& loss account
(D) General
reserve
3) Depreciation
provides funds for
A) Repairs
B) Depreciation
C) Replacement
D) Renewals.
4) Depreciation
is an expense resulting
A) from the
consumption of Current Assets
B) from the
consumption of Fixed Assets
C) From the
use of various services
D) None of
the above.
5) The
amount of Depreciation Charged is debited to:
A) Depreciation
Account
B) Machinery
Account
C) Cash
Account
D) None.
6) Discarding
of old machinery due to new invention is called.
A) Fictitious
B) Obsoleteness
C) Amortisation
D) None of
them.
7)
The following expense is not included in the
acquisition cost of Plant and Machinery
A) Cost of
site preparation
B) Delivery
and Handling charges
C) Installation
Charges
D)
Financing costs incurred subsequent to the
period after plant and equipment is put to use.
8) Which
of the following is not depreciated
A) Plant
and Machinery
B) Vehicles
C) Furniture
D) Land
9) Depreciation
is calculated on
(A) Current assets
(B) Fixed assets
(C) Fictitious Assets
(D) Wasting Assets
10) Diminishing
Value Method means a method by which
(A) The rate of depreciation falls year by year
(B) The amount on which depreciation is calculated falls year by year
(C) The rate as well as the amount to which it is applied fall year by
year
(D) None of the above.
11) Depreciation
according to straight line method is calculated on
(A) Opening
balance
(B) Closing
balance
(C) Market
value
(D) Original
cost.
12)
Under this method asset account is allowed to
stand in the books at its original cost from year to year
(A) Straight
line method
(B) Diminishing
Balance Method
(C) Depreciation
Fund Method
(D) Annuity
Method
Answer key
Depreciation
1B 2C 3C 4B 5A 6B 7D 8D 9B 10B 11D 12C
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