Commerce MCQ Question and Answer
Commerce MCQ Question and Answer
31. Which of the following is affected by treatment of an accrued item in accounting ?
- Profit and Loss A/c only
- Profit and Loss Appropriation A/c
- Balance Sheet only
- Profit and Loss A/c and Balance Sheet
32. 33. Income and expenses for the year 2006 are—
Fee Received in Cash — Rs.24,000
Accrued Fee — Rs.6,000
Rent for Chamber Paid — Rs.6,000
Outstanding Rent — Rs.2,000
Salary Paid to Staff — Rs.6,000
Miscellaneous Expenses Paid — Rs.200
Salary paid in advance to staff included in the above : Rs. 1,000.
What is the income under accrual basis ?
Fee Received in Cash — Rs.24,000
Accrued Fee — Rs.6,000
Rent for Chamber Paid — Rs.6,000
Outstanding Rent — Rs.2,000
Salary Paid to Staff — Rs.6,000
Miscellaneous Expenses Paid — Rs.200
Salary paid in advance to staff included in the above : Rs. 1,000.
What is the income under accrual basis ?
- Rs. 11,800
- Rs. 13,200
- Rs. 16,800
- Rs. 30,000
33. If Opening Stock — Rs.15,000
Purchases — Rs.37,500
Direct Expenses — Rs.1,500
Closing Stock — Rs.7,500
Operating Expenses — Rs.3,000
Sales are Rs. 60,000 during the year, what is the net profit ?
Purchases — Rs.37,500
Direct Expenses — Rs.1,500
Closing Stock — Rs.7,500
Operating Expenses — Rs.3,000
Sales are Rs. 60,000 during the year, what is the net profit ?
- Rs. 12,000
- Rs. 10,500
- Rs. 7,500
- Rs. 3,000
34. On 1.4.2007, a firm's capital was Rs. 2,00,000, Assets Rs. 2,40,000 and Liabilities Rs. 40,000. It sold goods costing
Rs. 10,000 for Rs. 12,000. What will be the position of accounting equation after this transaction has been recorded in accounts ?
Assets = Capital + Liabilities
Rs. 10,000 for Rs. 12,000. What will be the position of accounting equation after this transaction has been recorded in accounts ?
Assets = Capital + Liabilities
- 2,42,000 = 2,02,000 + 40,000
- 2,52,000 = 2,12,000 + 40,000
- 2,30,000 = 2,00,000 + 30,000
- 2,22,000 = 1,82,000 + 40,000
35. Which one of the following statements about preparation of financial statements of a limited liability company is correct ?
- Financial statements should be prepared according to the cash basis of accounting only
- Financial statements should be prepared according to the accrual basis of accounting only
- Financial statements should be prepared according to either the cash basis or accrual basis of accounting
- Financial statements should be prepared according to both the accrual and cash basis of accounting
36. 37. Expenses need to be recorded in the period in which the associated revenues are recognised. This is to be ensured as
per which one of the following accounting principles ?
per which one of the following accounting principles ?
- Revenue recognition
- Cost benefit
- Matching
- Periodicity
37. How is profit prior to incorporation treated as ?
- Revenue reserve
- Secret reserve
- Capital reserve
- General reserve
38. Which one of the following has replaced the Budla system in India ?
- Rolling settlement
- Trading in equity derivatives
- Depository system
- Online trading
39. Which one of the following is not correct ?
- Mutual Fund ensures its participants a professional management of portfolio selection
- Mutual Fund schemes can be open-ended and/or closeended
- Balanced Mutual Fund aims at earning current income and capital appreciation
- Mutual Fund is an investment company and a merchant banker
40. Which one of the following statements is not correct ?
- Business firms combine to avoid wasteful competition
- Business combination is possible only among joint stock companies
- Business firms may combine to take advantage of patent rights of individual firms
- During economic depression, small firms are absorbed by financially sound large firms