Basic Accounting 4

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Objective Questions and Answers of MBA: Basic Accounting 4

Subject: Objective Questions and Answers of MBA: Basic Accounting 4

Part 4: Objective questions and answers of Basic Accounting


Q1. Marginal costing is concerned with:

a) Fixed cost

b) Variable cost

c) Semi variable cost

d) None of the above


Q2. Which of the following equation is related with dual aspect concept?

a) Total assets = total liabilities

b) Total assets = capital + outsider’s liabilities

c) Capital = total assets – outsider’s liabilities

d) All of the above


Q3. According to schedule vi companies act which item is not shown on asset side of balance sheet

a) Investment

b) Current loan & advances

c) Provision

d) Lease holds


Q4. Salary paid to factory manager is an item of:

a) Prime cost

b) Factory overhead

c) Selling overhead

d) Office overhead


Q5. Payment received from debtor

a) Decreases the total assets

b) Increases the total assets

c) Results in no change in the total assets

d) Increases the total liabilities


Q6. Which one of the following is not an example of intangible assets?

a) Patents

b) Trade marks

c) Copyright

d) Land


Q7. Debit what come in credit what goes out rule for

a) Real a/c

b) Personal a/c

c) Nominal a/c

d) None of these


Q8. Going concern concept assumes

a) Business as a dissolving concern

b) Business on relishing values

c) Business as a going concern

d) Asset = liability


Q9. Which items does not come under the balance sheet

a) Sales

b) Share capital

c) Reserves and surplus

d) Unsecured loan


Q10. Depreciation is a charge against

a) Profit

b) Assets

c) Company

d) Books of a/c


Q11. Management accounting is applicable to

a) Service entities

b) Manufacturing entities

c) Nonprofit entities

d) All of these


Q12. Financial accounting is concerned with

a) Recording of business expenses and revenue

b) Recording of costs of products and services

c) Recording of day to day business transactions

d) None of the above


Q13. Investment of x company profit in shares of other company pqr pvt. Ltd are recorded in

a) Asset side of balance sheet

b) Liability side of balance sheet

c) Profit & loss a/c

d) Not recorded in balance sheet


Q14. Income tax paid by a sole proprietor on his business income should be:

a) Debited to trading account

b) Debited to profit and loss account

c) Deducted from capital account in the balance sheet

d) None of the above


Q15. This of the following is not an example of real a/c:

a) Machinery

b) Building

c) Cash

d) Creditor


Q16. The transferring of debit and credit items from journal to the respective accounts in the ledger is called as

a) Ledger

b) Posting

c) Forward journal

d) None of these


Q17. Sunk costs are:

a) Relevant for decision making

b) Not relevant for decision making

c) Cost to be incurred in future

d) Future costs


Q18. Rent paid to landlord should be credited to

a) Landlords account

b) Rent account

c) Cash account

d) Expense account


Q19. Current liability does not include

a) Sundry creditors

b) Acceptances

c) Unclaimed dividend

d) Short term investment


Q20. All direct & indirect expenses related to business are charged:

a) Profit and loss account

b) Trading account

c) Trading account profit and loss account

d) Directly to balance sheet


Part 4: Objective questions and answers of Basic Accounting


Q1. Answer b


Q2. Answer d


Q3. Answer c


Q4. Answer b


Q5. Answer c


Q6. Answer d


Q7. Answer a


Q8. Answer c


Q9. Answer a


Q10. Answer a


Q11. Answer d


Q12. Answer c


Q13. Answer a


Q14. Answer c


Q15. Answer d


Q16. Answer b


Q17. Answer b


Q18. Answer c


Q19. Answer d


Q20. Answer c

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