Commerce MCQs Test

1. Accounting is?

(A) An Art
(B) A Science _
(C) A Profession
(D) All of these

Answer.D

2. The Institute of Chartered
Accountants of India was established in the year—

(A) 1947
(B) 1949
(C) 1951
(D) 1956

Answer.B

3. Accounting Standard Board
issuing Accounting Standards in
India belongs to-

(A) Ministry of Finance
(B) Company Law Board
(C) The Institute of Chartered
Accountants of India
(D) None of the above

Answer.C

4. Which of the following Accounting Standards relates to
accounting for fixed assets ?

(A) AS 3
(B) AS 10
(C) AS 14
(D) AS 16

Answer.B

5, Which of the following statements is true ?

(A) Accounting and Book-
keeping are synonymous
(B) Book-keeping and Account-
ing are complementary to each
other
(C) Accounting starts from
where Book-keeping ends
(D) Both (B) and (C)

Answer.D

6. The Generally Accepted Account-
ing Principles (GAAP) aim at-

(A) Uniformity in accounting
practices
(B) Uniform accounting practices in all enterprises
(C) Acceptance of globalisation, liberalisation and privatisation in
the field of accounting
(D) All of the above

Answer.D

7. Revenue is realized

(A) when sales order is received
(B) when goods are sold
(C) when cash is received
(D) when goods are received by
the purchaser

Answer.B

8. Personal Account relates to-

(A) Persons
(B) All artificial and natural
persons
(C) Representative Personal
Accounts
(D) All of the above

Answer.D

9. The cost of erection of an old
machine will be posted in the
credit side of——

(A) Cash Account
(B) Machinery Account
(C) Repairs and Renewal
Account
(D) None of the above

Answer.A

10. Outstanding Wages is—

(A) Nominal Account
(B) Real Account
(C) Personal Account
(D) Current Account

Answer.C

11. Adjustment Entry for rent received in advance would be—

(A) Cash A/c ’ Dr,
To Rent Received in
Advance A / c
(B) Cash A/c Dr.
To Rent A / c
(C) Rent A/c Dr.
To Rent Received
Advance A/ c
(D) Advance Rent A / c Dr.
To Rent A / c

Answer.C

12. Accounting treatment of a
Capital Expenditure as Revenue
Expenditure creates—

(A) General Reserve
(B) Revenue Reserve
(C) Capital Reserve
(D) Secret Reserve

Answer.D

13, Partnership comes into existence
through—

(A) Introduction
(B) Promotion
(C) Contract
(D) Situation ;

Answer.C

14. Partnership Deed is always?

(A) Written
(B) Oral
(C) Written or Oral
(D) Written and Oral

Answer.C

15. The number of partners in a
partnership firm is-

(A) Uncertain
(B) Unlimited
(C) Decided by partners
(D) Limited

Answer.D

16. ln the absence of partnership
agreement the profit is shared by
the partners-

(A) equally
(B) on the basis of capital
invested
(C) on the basis of decision of
the court
(D) on the basis of time spent

Answer.A

17. At the time of admission of a
new partner the capital brought
by him is shared among existing
partners—-•

(A) equally
(B) on me basis of capital of the
older partners
(C) on the basis of sacrifice done
(D) untrue statement

Answer.D

18. Because of Retirement / Death of
a partner-~

(A) Partnership is dissolved
(B) Partnership firm is dissolved
(C) Partnership and partnership
firm both are dissolved
(D) None of the above

Answer.A

19. The minimum amount called on
application for issue of shares is
———– of face value.

(A) 5%
(B) 25%
(C) 30%
(D) 40%

Answer.A

20. Shares can be issued-

(A) At par
(B) At discount
(C) At premium
(D) All of the above

Answer.D

21. After re-issue of forfeited shares
the balance of forfeited share
account is transferred to—

(A) General Reserve
(B) Profit K: Loss A/c
(C) Capital Reserve
(D) None of these

Answer.C

22. The debenture holders of a company are company’s-

(A) Owners
(B) Creditors
(C) Customers
(D) All of these ‘

Answer.B

23. Which of the following is not a
current asset ?

(A) Land and Building
(B) Debtors
(C) Stock
(D) Cash at bank

Answer.A

24. The analysis of published
accounts benefits~

(A) Shareholders
(B) Debenture holders
(C) Employees
(D) All of these

Answer.D

25. The object of cost accounting is-

(A) Ascertainment of Cost
(B) Valuation of Stock
(C) Cost Control
(D) All of these

Answer.D

26. Which of the following does not
constitute part of costing ?

(A) Prime cost
(B) Factory cost
(C) Opportunity cost
(D) Office and Administration
cost

Answer.C

27. Direct costs are those which vary
directly with—

(A) Sales
(B) Profit
(C) Production
(D) Time

Answer.C

28. Which of the following is not an
indirect expense ?

(A) Factory Overhead
(B) Direct Labour
(C) Office Overhead
(D) Advertisement

Answer.B

29. Which of the following appears
in Cost Accounts and not in
Profit and Loss Account ?

(A) Raw Materials
(B) Rent of hosue of the owner
of business
(C) Works overhead
(D) Selling and distribution
expenses

Answer.A

30. Tender Price means-

(A) Quotation Price
(B) Probable Sale Price
(C) Price informed to the customer
(D) All of the above

Answer.D

31. The audit of a Joint Stock Public
Company is done-

(A) compulsorily
(B) voluntarily
(C) at the direction of Government
(D) on demand of shareholders

Answer.A

32. The audit aims at

(A) Examination of correctness
of books of accounts
(B) Examination of truthfulness
of books of accounts
(C) Examination of the authenticity of books of account
(D) All of me above

Answer.D

33. Current audit is also known as—

(A) Internal Audit
(B) Periodic Audit
(C) Continuous Audit
(D) Interim Audit

Answer.C

34. Vouching relates to-

(A) Cash receipts
(B) Cash payments
(C) Credit transactions
(D) All of these

Answer.D

35. The status of the auditor in a
company is that of~

(A) an employee
(B) a trustee
(C) an independent professional
(D) all of these

Answer.C

36. To submit the audit report is—

(A) Right of Auditor
(B) Liability of Auditor
(C) Duty of Auditor
(D) All ot these

Answer.C

37. F. W. Taylor is known as a father
of-

(A) Scientific Management
(B) Management by Objectives
(C) Human Relation based
Management
(D) Management by Motivation

Answer.A

38. The person who propounded
theory X and theory Y in Management, is—

(A) Abraham Maslow
(B) Henry Fayol
(C) Elton Mayo
(D) Douglas McGregor

Answer.D

39, Management Planning process
begins with-

(A) Policies
(B) Programme
(C) Goals and objectives
(D) Procedure

Answer.C

40. Decision-making is~

(A) A mental process
(B) An intellectual process
(C) A universal functional process
(D) All of the above

Answer.D

41. Which of the following is a non-
verbal communication ?

(A) Body language
(B) Letter
(C) Speech
(D) Poem

Answer.A

42. Which of the following is not a
part of managerial process ?

(A) Planning
(B) Accounting
(C) Coordination
(D) Directing
D) Cash at bank

Answer.B

43. A company secretary has to be—

(A) Firm or body corporate
(B) Registered with Securities
and Exchange Board of India (SEBI)
(C) Person with desired professional degree
(D) Part of any Secretarial
agency

Answer.C

44. Annual General Meeting can be
called by—

(A) Managing Director
(B) Shareholders
(C) Board of Directors
(D) Company Secretary

Answer.D

45. A share certificate is required to
be signed by—

(A) Company Secretary
(B) Two Directors
(C) Two directors and Company Secretary
(D) All directors and Company
Secretary

Answer.C

46- have sound knowledge of-

(A) Company Law
(B) Tax Laws
(C) Labour Laws
(D) All of these

Answer.A

47. The duties of Company Secretary
s regarding company meetings are
restricted upto-

(A) Before company meeting
(B) During company meeting
(C) After company meeting
(D) ln all the above situations

Answer.D

48. Transmission of shares takes
place in the following case-

(A) Sale of shares
(B) Theft of shares
(C) Operation of any law
(D) All of these

Answer.C

49. Statistics is the—

(A) Science of Counting
(B) Science of Averages
(C) Arithmetic of human
welfare
(D) All of the above

Answer.D

50. The average of the nos. 2, 4, 6, 8,
10, 12, 14 and 16 is—

(A) 9
(B) 10.2
(C) 8•6
(D) 11

Answer.A