Basic Accounting 28

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Objective Questions and Answers of MBA: Basic Accounting 28

Subject: Objective Questions and Answers of MBA: Basic Accounting 28

Part 28: Objective questions and answers of Basic Accounting

 

Q1. A bill drawn and accepted for a genuine trade transaction is termed as a_______ bill.

a) Trade

b) Time

c) Inland

d) Personal

 

Q2. Error of commission do not allow ______________

a) Correct totaling of the balance sheet

b) Correct totaling of the trial balance

c) The trail balance to agree

d) Correct totaling of the day book

 

Q3. In accounting, the benefit giving aspect is said to be

a) Debit

b) Credit

c) Debit and Credit

d) None of these

 

Q4. The balance of the petty cash book is ______________.

a) An asset

b) A liability

c) An income

d) An expenditure

 

Q5. The person to whom the bill is endorsed is called ______________

a) Drawer

b) Endorse

 

Q6. Which item is shown on the debit side of a trial balance?

a) Rent outstanding

b) Prepaid expenses

c) Purchases returns

d) Excess of income over expenses by the firm

 

Q7. Non-trading institutions prepare ______________.

a) Income and expenditure account

b) Trading and profit and loss account

c) Only trading account

d) Only revenue account

 

Q8. The main aim of ______________ accounting is to ascertain cost relating to the various activities of the business and to have cost control.

a) Financial accounting

b) Cost accounting

c) Management account

d) Human resource accounting

 

Q9. The amount brought in by the proprietor in the business should be credited to:

a) Cash account

b) Capital account

c) Drawing account

d) Bank account

 

Q10. State which of the following errors will not be revealed by the trial balance______

a) Errors of complete omission

b) Errors of carrying forward

c) Wrong totaling of the purchases book

d) Error of partial omission

 

Q11. Returns outward book makes a record of ______________

a) Goods returned to the suppliers

b) Goods returned to customers

c) Goods returned to proprietor

d) Goods returned to neighbors

 

Q12. Cancelling the original bill and drawing a fresh acceptance is known as_______.

a) Retiring under rebate

b) Discounting

c) Renewal

d) Bill sent to bank for collection

 

Q13. The person who writes out the bill of exchange is known as

a) Payee

b) Drawee

c) Drawer

d) Acceptor

 

Q14. Revenue expenditure is intended to benefit ______________.

a) Current period

b) Future period

c) Past period

d) Both (1) and (2)

 

Q15. Purchases made on credit not recorded at all would affect ______________.

a) Purchases account

b) Suppliers account

c) Purchases account and suppliers account

d) Wages account

 

Q16. The ______________ in a ledger helps in locating the accounts contained in it.

a) Folio

b) Pages

c) Serial number

d) Part number

 

Q17. The assets of a business can be classified as ______________.

a) Only fixed assets

b) Only current assets

c) Fixed and current assets

d) Fictitious assets

 

Q18. Sales of old material must be shown on the credit side of ______________.

a) Cash book

b) Income and expenditure account

c) Balance sheet

d) Trading account

 

Q19. Bills payable book is to keep a record of ______________.

a) Bills payable to creditors

b) Bills received from supplier

c) Credit purchases

d) Credit sales

 

Q20. If a cheque sent for collection is dishonored, the debit is given to ______________

a) Suppliers account

b) Bank account

c) Customers account

d) Cash account

 

Part 28: Objective questions and answers of Basic Accounting

 

Q1. Answer a

 

Q2. Answer c

 

Q3. Answer b

 

Q4. Answer a

 

Q5. Answer b

 

Q6. Answer b

 

Q7. Answer a

 

Q8. Answer b

 

Q9. Answer b

 

Q10. Answer a

 

Q11. Answer a

 

Q12. Answer c

 

Q13. Answer c

 

Q14. Answer a

 

Q15. Answer c

 

Q16. Answer a

 

Q17. Answer c

 

Q18. Answer b

 

Q19. Answer a

 

Q20. Answer c

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