Accounting For Management (MCQ Assignment)

MCQ ASSIGNMENT
UNIT-1
1. Which of the following asset is non-current asset?
A Debenture discount B Franchise
C Bills receivables D Debtors
2. Which is not recorded in the books of account?
A Discount received B Cash discount
C Discount allowed D Trade discount
3. What is bad debt for business?
A Loss B Income
C Expense D Profit
4. What is bad debt return for business?
A Expense B Asset
C Creditors D Income
5. What is the duration of current liability?
A More than 5 years B More than 1 year
C Less than 1 year D More than 10 years
6. Of which assets goodwill is illustration?
A Tangible asset B Current asset
C Liquid asset D Intangible asset
7. Expenses which are incurred regularly by the business are ....... .
A Capital expenses B Spread expenses
C Revenue expenses D Spread revenue expenses
8. How many types of accounting are categorised?
A Two B Four
C Five D Three
9. Which type of expense is the purchase of plant machinery?
A Revenue expense B Deferred expense
C Capital expense D Deferred revenue expense
10. When owner of business brings cash, goods or asset in the business, it is called as ..........
A Drawings B Debtor
C Capital D Creditor
11. When from assets, cash or goods is withdrawn by owner of business from the business it is called
..........
A Capital B Payable
C Receivable D Drawings
12. Which type of assets is land and buildings?
A Intangible asset B Tangible asset
C Current asset D Liquid asset
13. Which type of income is income raised from sale of asset?
A Capital income B Deferred revenue income
C Revenue income D Deferred capital income

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Accounting For Management (MCQ Assignment)

14. When a person has more assets than liabilities he/she is known as .......... .
A Insolvent B Solvent
C Creditor D Payable
15. When a person has more liabilities than assets he/she is known as ......... .
A Insolvent B Solvent
C Creditor D Payable
16. What is the nature of depreciation as expense of business?
A Cash expense B Non-cash expense
C Capital expense D Spread capital expense
17. Which type of liability is, when owner provides capital to the business?
A External Liability B Bills Payable
C Creditors of goods D Internal liability
18. Amount payable to third party on account of credit purchase of goods is known as
A Debtors B Internal Liability
C Bills Receivable D External Liability
19. What is the duration of long term / non-current liability?
A Less than 1 year B 1 day
C More than 1 year D 10 days
20. Which type of assets are goodwill, patent, copy right and trademark?
A Tangible assets B Intangible assets
C Current assets D Liquid assets
21. Which type of discount is cash discount which is arised at the time of cash purchase of goods?
A Discount allowed B Commission
C Discount received D Brokerage
22. Cash discount which is arised at the time of cash sale of goods is .......... .
A Brokerage B Discount allowed
C Commission D Discount received
23. Accounts are being written on the basis of certain principles and rules, hence it is .........
A Sculpture B Music
C Science D Art
24. A skill which is required for preparation and presentation of account within the boundaries of
accounting is known as .......... .
A Science B Entertainment
C Music D Art
25. The foundation of accounting is .......... .
A Voucher B Books
C Rough Note D Trial balance
26. Which transactions are not recorded in the books of accounts?
A Special B Cash
C Economic D Non-economic

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Accounting For Management (MCQ Assignment)

27. 'Wages are paid ₹ 100', what is the nature of this transaction?
A Cash transaction for goods B Cash transaction for service
C Cash transaction for asset D Credit transaction of service
28. Which transaction creates relationship of creditor and debtor?
A Cash B Special
C Non-economic D Credit
29. Under which transactions of business, third party is not required?
A Internal B External
C Credit D Cash
30. Which transactions of business, can not be measured in terms of money?
A Economic B Non-economic
C Credit D Special
31. How many sides are categorised for accounts in ledger?
A Eight B Five
C Two D Four
32. Which of the following account is legal artificial person account?
A Salary Account B Stationery
C Building D Shriji Traders
33. Which of the following transaction is special transaction of business?
A Goods purchased of ₹ 5000 B Rent paid to Aakash ₹ 100
C Goods of ₹ 600 were stolen D Electricity bill paid ₹ 1200
34. Which of the following transaction is external transaction of business?
A Salary paid ₹ 1200 to clerk Ramesh. B Depreciation charged on building ₹600.
C Patents written off ₹ 950. D Goods destroyed by fire ₹ 100.
35. Credit transaction always includes one account of .......... .
A goods B Personal
C asset D Service
36. How many minimum effects are given under double entry system for each transaction?
A Five B Two
C Four D Ten
37.
Written document of business transaction is ..........
A journal entry B Books
C voucher D
rough book
38.
What is the type of 'income tax account' of owner of sole proprietor firm?
A Personal B Real
C Income-expenditure D Other
39.
A transaction through which cash or bank balance affected is .......... .
A Credit transaction B
Special transaction
C Cash transaction D
Contra entry transaction
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Accounting For Management (MCQ Assignment)

40. Which is fundamental or basic book of accounting?

A Ledger B Journal
C Cashbook D Trial balance
41. Which account will be credited on receipt of income tax refund?
A Drawings B Income tax
C Bank D Capital
42. Which account will be credited when goods stolen, of ₹ 300, received back during police
investigation?
A Goods returned account B Goods stolen account
C purchase account D Loss on goods stolen account
43. Goods of ₹ 1000 is received as free sample. What is the nature of transaction?
A Debit B Cash
C Economic D Non-economic
44. .......... is expense of business.
A Dividend B Bad debt return
C Bad debt D Salary
45. Which account will be debited when ₹ 20000 are paid by cheque for shares purchase of
Jagrat Limited?
A Commission account B Bank account
C Brokerage account D Share investment account
46. Bank has credited ₹ 100 to our bank account. Which is correct for journal entry?
A Debited to interest account B Debited to bank account
C Credit to bank account D No entry will be passed
47. What amount will be debited to purchase account, if goods of ₹ 10,000 purchased at 10 %
trade discount and at 5 % cash discount from Rishita?
A ₹9000 B ₹ 8550
C ₹10,000 D ₹ 9500
48. Which amount will be recorded to sales account, if goods of₹ 1000 purchased at 10 % trade
discount and at 5 % cash discount, out of which half goods sold to Ankita to earn 10 % profit
on selling price?
A ₹ 11,000 B ₹ 495
C ₹9900 D ₹ 500
49. Which account will be credited when life insurance premium of₹ 500 is paid by cheque?
A Drawings B Life insurance premium
C Bank D Cash
50. Which balance and what effect would take place when interest on bank balance is occurred?
A Increase in cash balance B Decrease in cash balance
C Decrease in bank balance D Increase in bank balance

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Accounting For Management (MCQ Assignment)
51. Goods of ₹ 6000 purchased from Shreya on cash at 10 % trade discount and 5 % cash discount.
How much amount of discount will be recorded in the journal entry?
A ₹ 300 B ₹ 270
C ₹0 D ₹ 600
52. Goods of ₹ 5000 purchased from Keval at 10 % trade discount and at 5 % cash discount where
50 % amount paid by cheque. What amount will be credited to bank account?
A ₹ 250 B ₹ 500
C ₹ 112.50 D ₹ 2137.50
53. Life insurance premium is debited to .......... .
A capital amount B insurance premium account
C Drawings account D Cash account
54. On account of purchase of furniture, which account will be debited for inward and installation
expense?
A Installation expense B Purchase expense
C Furniture expense D Cash account
55. The nature of equation of capital - liabilities and assets means .......... .
A Capital = Assets + Liability B Liability = Assets + Capital
C Receivables = Assets + Capital D Assets = Capital + Liability
56. Presenting accounts in equation form is .......... .
A British system B Italian system
C American system D Japanese system
57. Under equation system which transactions are not pertaining to goods?
A Purchase of material B Sale of goods
C Sales return D Commission received
58. When cash is withdrawn by the owner from business, then .......... .
A Decrease in capital - Increase in liability B Decrease in capital - Increase in asset
C Decrease in capital - Decrease in asset D Increase in one asset and decrease in
other asset
59. When goods is purchased on cash .......... .
A Increase in one asset and decrease in B Increase in asset - Decrease in liability
other asset
C Decrease in asset - Decrease in D Decrease in capital - Increase in asset
liability
60. When sales is made on cash .......... .
A Increase in one asset and decrease in B Increase in asset - Decrease in liability
other asset
C Increase in asset - Increase in liability D Decrease in capital - Increase in asset
61. When sales returned happens .......... .
A Increase in one liability and decrease in B Increase in one asset and decrease in
other liability other asset
C Increase in liability - Decrease in asset D Decrease in capital - Increase in liability

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Accounting For Management (MCQ Assignment)

62. When purchase returned happens .......... .

A Increase in one liability and decrease in B Increase in one asset and decrease in
other liability other asset
C Decrease in asset - Increase in liability D Decrease in asset - Decrease in liability
63. Accounting means…..
A Only a science B Only an art
C Financial Accounting D Both, an art and a science
64. Accounting is the language of ……….
A Ledger B Journal
C Books of Account D Business
65. Which of the following is interested in accounts?
A Proprietor B Creditors
C Employees D All of these
66. Accounting keeps record of financial position and financial performance.
A Cost B Financial
C Management D None of these
67. Journal is book of:
A Credit transaction B Cash transaction
C Original entry D Secondary entry
68. A person who owes debt to business is called:
A Investor B Debtor
C Creditor D Owner
69. A person to whom debts is owed by business due to purchase of goods from him or services
rendered by him is called:
A Owner B Debtor
C Customer D Creditor
70. Which of the following equations is not correct?
A Liabilities = Assets - Capital B Capital = Assets – Liabilities
C Assets = Capital + Liabilities D Liabilities = Assets + Capital
71. The assets and capital as on 31-3-2022 is ₹ 1,00,000 and ₹ 80,000 respectively. Hence, liabilities
would be as one 31-3-2022:
A ₹ 1,00,000 B ₹ 1,80,000
C ₹ 20,000 D None of these
72. Which of the following is an intangible asset?
A Land B Patents
C Investment D Cash
73. The principles of accounting which recognized the double aspect of a business transaction is-
A Single Entry B Dual aspect
C Cost Concepts D Matching concepts

74. Which of the following is a credit transaction?

A Paid salary to Alok ₹ 12,000 B Sold goods for ₹ 8,000
C Purchased goods for ₹6000 from Abhi D Paid rent ₹ 2,000

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Accounting For Management (MCQ Assignment)

75. Mr. Shankar started business with ₹ 50,000 cash. He purchased goods on credit from Mohan for
₹ 5,000. His total assets will be-
A ₹ 50,000 B ₹ 45,000
C ₹ 55,000 D ₹ 5,000
76. Bank loan is a ----------- account.
A Real B Nominal
C Personal D None of these
77. The rule of “ Debit the Receiver and credit the Giver” is applicable to:
A Nominal Account B Real Account
C Personal Account D None of these
78. Bad Debts recovery accounts is :
A Personal Account B Income Account
C Real Account D Nominal Account
79. Which of the following statements is correct?
A The rules of debit and credit are not B Normal accounts refer to false
universal. transactions.
C Real account relate to properties of a D The change in owner’s capital is an
business. indication of profit in business.
80. Which of the following is a personal Account?
A Creditor Account B Rent Account
C Cash Account D Motor Car Account
81. Fixed asset is……
A Stock B Land
C Creditors D Debtors
82. Credit balance in personal account means-
A Bills receivable B Creditors
C Closing stock D Current assets
83. Salary Outstanding Account is a-
A Real Account B Personal Account
C Real and Nominal Account D Nominal Account
84. Which of the following accounts normally show a debit balance?
A Assets accounts B Debtors’ accounts
C Expenses accounts D All the above
85. Valuing the closing stock at cost or market price whichever is lower is on the basis of:
A Consistency Concept B Materiality Concept
C Matching Concept D Conservatism Concept
86. Assets purchased are to be recorded in the books of accounts at the actual amount paid for them
is related to:
A Realization Concept B Cost Concept
C Materiality Concept D Conservatism Concept
87. Going Concern Concept of accounting assumes that-
A The firm will continue for a long time B The firm will go into liquidation within
short period.
C The firm will be sold D None of the above

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Accounting For Management (MCQ Assignment)
88. Commission on sales is debited to Profit and Loss Account in year in which sale is effected
because of
A Principle of Conservatism B Principle of Matching cost with Revenue.
C Principle of Realisation D None of these
89. Which of the following is not a branch of accounting?
A Financial Accounting B Cost Accounting
C Management Accounting D Double Entry Accounting
90. Goods sold to Mr. Mahesh for ₹ 10,000 is ………
A Cash transaction B Credit transaction
C Exchange transaction D None of these
91. Going concern assumption is in the context of . . . .
A future B present
C past D no context
92. What is not included in going concern assumption?
A Unit not establish for special purpose B Unit establish for special purpose
C Unit which is economically sound D Purpose is not to dissolve business
93. Which assumption is applicable when depreciation method or inventory valuation method is
changed ?
A Going concern assumption B Realisation principle
C Accounting entity D Consistency concept
94. Which principle is applicable if expense of March paid in April but treated as expense march?
A Going concern B Accrual principle
C Accounting entity D Consistency concept
95. Accounting period concept is closely related with which concept / principle?
A Going concern principle B Money measurement concept
C Separate entity concept D Full disclosure concept
96. Under which concept probable loss is considered but not probable profit?
A Going concern principle B Prudence concept
C Money measurement concept D Separate entity concept
97. Which of the following has no relation with conservatism concept?
A Bad debts reserve on debtors B Stock market value or cost price which
ever is less
C Discount reserve on debtors D Asset to be shown in accounts at book
value
98. Realisation principle has .......... .
A relation with time period B no relation with time period
C relation only with cash transactions D relation only with credit transactions
99. In books of accounts the qualitative transactions will not be recorded due to____
A Materiality concept B Realisation concept
C Cost concept D Money measurement concept
100. The market value of shares of 'Anination' Company is shown as a footnote in financial statement is
based on_____.
A Full Disclosure concept B Cost concept
C Matching concept D Business entity concept

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