Accounting mcq questions and answers for competitive exams

a

Fully exempt

b

Fully taxable

c

Partially exempt

d

None of the above

a

A company's balance sheet is prepared in the order of permanence whereas a partnership firm's balance sheet is usually, prepared in order of liquidity.

b

In case of a company's balance sheet, previous year's figures are required to be given, whereas, it is not so in the case of a partnership firm's balance sheet.

c

For a company's balance sheet, there are two standard forms prescribed under the Companies Act, 1956 whereas, there is no standard form prescribed under the Indian Partnership Act. 1932 for a partnership firm's balance sheet.

d

All of the above

a

swap

b

foreign exchange option

c

futures market contract

d

foreign exchange arbitrage

a

merchandise trade deficits

b

merchandise trade surpluses

c

capital/financial account deficits

d

capital/financial account surpluses

a

Cost of advertisement

b

Purchase of machine oil

c

Purchase of raw material

d

Purchase of a delivery van

a

Will not be shown anywhere

b

Will be credited to Profit and Loss Account

c

Will be shown on the liabilities side of the balance sheet only

d

Will be shown in Profit and Loss Account by way of deduction from the income received

a

Equity shares are easily saleable

b

Equity shares have higher risk than debt

c

Face value of debentures is more than face value of shares

d

All of the above

a

True

b

False

c

Cannot be said with certainty

d

Is decided by the Assessing Officer

a

Allowed to carryon business subject to certain disabilities

b

Allowed to carryon business subject to payment of penalty

c

Deemed to be an illegal association and is disallowed to carryon business

d

Allowed to carry on business only with the special permission of the Registrar of Firms

a

Rate of Dividend

b

After Tax Rate of Dividend

c

Discount Rate that equates PV of in- flows and outflows relating to capital

d

None of the above

a

Sunk cost

b

Allocated overheads

c

Both (a) and (b)

d

Opportunity cost

a

Cash system of accountancy

b

Credit system of accountancy

c

Mercantile system of accountancy

d

None of these

a

adds to the pre-existing productive capacity

b

gives rise to increased amounts of market power

c

yields cost reductions unavailable to parent firms

d

enters markets neither parent could have entered individually

a

Income Statement

b

Cash Flow Statement

c

Funds Flow Statement

d

None of the above

a

Profit made on redemption of debentures

b

Premium received on issue of shares or debentures

c

Profit set aside for redemption of preference shares

d

All of the above