Basic Accounting 25

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Objective Questions and Answers of MBA: Basic Accounting 25

Subject: Objective Questions and Answers of MBA: Basic Accounting 25

Part 25: Objective questions and answers of Basic Accounting


Q1. Income and expenditure account reveals ______________.

a) cash in hand

b) surplus or deficiency

c) capital account

d) revenue account


Q2. Bills Receivable book is to keep record of ______________.

a) bills received from customers

b) bills received from supplier

c) credit purchases

d) credit sales


Q3. Purchase of machinery is recorded in ______________

a) sales book

b) journal proper

c) purchases book

d) sales returns book


Q4. Revenue receipts are ______________ in the business.

a) non-recurring

b) Recurring

c) Accumulating

d) non-accumulating


Q5. Balance sheet is a ______________

a) statement

b) Account

c) Ledger

d) Book


Q6. Bank account is ______________

a) Nominal account

b) Real account

c) Personal account

d) none of these above


Q7. When a bill is discharged, the acceptor debits ______________

a) Creditors account

b) Cash account

c) Bills payable account

d) Bills receivable account


Q8. Which one the following is an example of an intangible asset?

a) Preliminary expenses

b) Discount on issue of debentures

c) Investments

d) Copyrights


Q9. Any expenditure incurred in order to reduce the operating expenses is______.

a) capital expenditure

b) revenue expenditure

c) deferred revenue expenditure

d) promotional expenditure


Q10. A credit sale of goods to Shiva should be debited to ______________.

a) Sales account

b) Goods account

c) Shiva account

d) Purchase account


Q11. Any written document in support of a business transaction is called a ______________.

a) Voucher

b) Bill

c) Carbon copy

d) Expense bill


Q12. Book-keeping is mainly concerned with ______________

a) recording of financial data relating to business operations

b) designing the system in recording, classifying, summarizing the recorded data

c) interpreting the data for internal and external end users

d) only for internal purposes


Q13. A bank pass book is a copy of ______________

a) the cash column of a customer’s cash book

b) the bank column of a customer’s cash book

c) the customer’s account in the banks ledger

d) the customer account in the suppliers ledger


Q14. Which account is generally used for rectification of errors?

a) Memorandum account

b) Suspense account

c) Rectification account

d) Adjustment account


Q15. A person who draws a bill of exchange is known as the ______________

a) Drawee.

b) Drawer.

c) Payer.

d) Payee.


Q16. Cash book prepared on imprest system is ______________

a) two column cash book

b) cash book

c) petty cash book

d) purchase book


Q17. Heavy advertising to launch a new product is a ______________

a) capital expenditure

b) deferred revenue expenditure

c) other expenditure

d) revenue expenditure


Q18. Capital=

a) Asset – Liabilities

b) Asset

c) Liabilities

d) All the above


Q19. Which one of the following is an example of personal account?

a) Capital account

b) Building account

c) Cash account

d) Investment account


Q20. The method of account current usually employed by the banker is known as____.

a) Daily balance method

b) Red ink interest

c) Current account

d) Product method


Part 25: Objective questions and answers of Basic Accounting


Q1. Answer b


Q2. Answer a


Q3. Answer b


Q4. Answer b


Q5. Answer a


Q6. Answer c


Q7. Answer c


Q8. Answer d


Q9. Answer a


Q10. Answer c


Q11. Answer a


Q12. Answer a


Q13. Answer c


Q14. Answer b


Q15. Answer b


Q16. Answer c


Q17. Answer c


Q18. Answer a


Q19. Answer a


Q20. Answer a

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