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MCQ on Indian Railways Administration and Finance An introduction(Bank reconciliation statement ,Inventories & Depreciation)-PC-11

 

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


 



Inventories

 

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


 Depreciation

 

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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