Basic Accounting 27

Lets Crack Online Exam

Objective Questions and Answers of MBA: Basic Accounting 27

Subject: Objective Questions and Answers of MBA: Basic Accounting 27

Part 27: Objective questions and answers of Basic Accounting


Q1. Purchase of Typewriter would result in ______________ of fund.

a) Change

b) application

c) Service

d) no flow


Q2. Excess of income over expenditure in shown on the ______________ side of income and expenditure account.

a) Credit

b) Debit

c) Upper

d) Lower


Q3. Specific donations received by a non-trading concern are usually ______________.

a) revenue receipt

b) capital receipt

c) capital expenditure

d) revenue expenditure


Q4. Subscription received in advance is ______________.

a) an income

b) an asset

c) a liability

d) an expense


Q5. The basic function of financial accounting is to ______________

a) record all business transactions

b) interpret the financial data

c) assist the management in performing functions effectively

d) information to management


Q6. In triple column cash book, cash withdrawn from bank for office use will appear in___

a) debit side of the cash book only

b) both sides of the cash book

c) credit side of the cash book only

d) credit side of the bank account


Q7. Interest on drawings is ______________

a) expenditure for the business

b) expense for the business

c) gain for the business

d) loss for the business


Q8. Which of the following is related to nominal account?

a) Bank account

b) Commission account

c) Furniture account

d) Interest received account


Q9. Errors which affect one account can be ______________

a) errors of omission

b) errors of principle

c) errors of posting

d) error of commission


Q10. The Letter "c" is shown in the Cash book which means ______________

a) consignment

b) Commitment

c) Contra Entry

d) Cash entry


Q11. The person to whom the amount has to be paid is known as ______________

a) Drawee

b) Drawer

c) Acceptor

d) Payee


Q12. Which account is generally used for rectification of errors?

a) Memorandum account

b) Suspense account

c) Rectification account

d) Adjustment account


Q13. The preparation of a Trial balance helps in ______________.

a) locating errors in principle

b) locating errors of omission

c) locating clerical errors

d) locating compensatory errors


Q14. Interest on capital is credited to ______________ account.

a) Expenses account

b) Income account

c) Capital account

d) Asset account


Q15. Any amount received towards endowment fund is a ______________receipt.

a) Ordinary

b) Special

c) Revenue

d) Capital


Q16. Sale of old newspaper is to be shown on the credit side of the ______________.

a) cash book

b) income and expenditure

c) balance sheet

d) trading account


Q17. The process of recording financial transactions in the journal is called ______________

a) Journalizing

b) Utilizing

c) Posting

d) Balancing


Q18. Credit sales are recorded in ______________

a) sales book

b) cash book

c) journal proper

d) purchases book


Q19. The balance of the petty cash book is ______________.

a) an asset

b) a liability

c) an income

d) an expenditure


Q20. Preliminary expenses are an example of ______________

a) deferred Revenue Expenditure

b) revenue Expenditure

c) capital Expenditure

d) common expenditure


Part 27: Objective questions and answers of Basic Accounting


Q1. Answer c


Q2. Answer b


Q3. Answer b


Q4. Answer c


Q5. Answer a


Q6. Answer b


Q7. Answer c


Q8. Answer b


Q9. Answer c


Q10. Answer c


Q11. Answer d


Q12. Answer b


Q13. Answer c


Q14. Answer c


Q15. Answer d


Q16. Answer b


Q17. Answer a


Q18. Answer a


Q19. Answer a


Q20. Answer b

Be the first to comment

Leave a Reply