Dr.G.R.Damodaran College of Science
(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Reaccredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 Certified
CRISL rated 'A' (TN) for MBA and MIB Programmes
I B.Com [CS] [2019-2022]
Semester II
Core:FINANCIAL ACCOUNTING II- 205A
Multiple Choice Questions.
1. Memorandum joint venture account is -------------A. Personal account.
B. Real account.
C. Nominal account.
D. Representative account.
ANSWER: C
2. In case of memorandum method when there are three co-ventured, each co-venture open in its books for the
venture ---------A. One account
B. Two account
C. three account
D. Non of these
ANSWER: A
3. In accounting consignment means
A. Goods forwarded from one place to another.
B. Goods forwarded by a person to another.
C. Goods sent by its owner to agent.
D. Goods sent by its owner to his agent for the purpose by sale.
ANSWER: D
4. In accounting consignment means.
A. Goods forwarded from one place to another.
B. Goods forwarded by a person to another.
C. Goods sent by its owner to his agent.
D. Goods sent by its owner to his agent for the purpose by sale.
ANSWER: D
5. Goods sent on consignment should be debited by consignor
A. Consignment A/c.
B. Goods sent on consignment A/c.
C. Consignees A/c.
D. Consignor A/c.
ANSWER: A
6. In the books of consignor the balance of the consignment stock account would be shown:
A. As an asset in the balance sheet.
B. As liability in the balance sheet.
C. On the credit side of trading account.
D. On the debit side of consignment account.
ANSWER: A
7. Loss on the sale of machinery should be written off against____.
A. share premium account.
B. sales account.
C. depreciation fund account.
D. general reserve account.
ANSWER: C
8. Goods sent on consignment should be debited by consignor to:
A. Consignment A/c
B. Goods sent on consignment A/c
C. Consignees A/c
D. Consignors A/c
ANSWER: A
9. In accounting, Consignment signifies ----------A. goods forwarded from one place to another
B. goods forwarded by a person to another
C. goods dispatched by its owner to its agent
D. goods dispatched by its owner to his agent for the purpose of sale
ANSWER: C
10. On the dispatch of goods, the entry in the books of consignee would be:
A. Consignment A/c will be debited and goods sent on consignment A/c will be credited.
B. Consignment A/c debit and consignee A/c credit
C. No entry
D. None of above
ANSWER: C
11. Depreciation is charged on the ---------A. market value.
B. Depreciable value.
C. purchase value.
D. sale value.
ANSWER: B
12. As the goods sent on consignment by -----------A. Consignor
B. Consignee
C. Both
D. None of this
ANSWER: C
13. The consignor is:
A. Principal
B. Agent
C. Debtor
D. None of them.
ANSWER: A
14. Mines, quarries, oilfields and forest are example of ------------A. fixed assets.
B. current assets.
C. wasting assets.
D. intangible assets.
ANSWER: C
15. Depreciation applies to ------------A. current assets.
B. wasting assets.
C. intangible assets.
D. fixed assets.
ANSWER: D
16. The consignee is:
A. Principal
B. Agent
C. Debtor
D. Seller
ANSWER: B
17. In the Books of Consignee, the sale of goods is credited to
A. consignor's account
B. Consignee's account
C. Both
D. Sales Account
ANSWER: A
18. The consignor takes his decision based on the profit that is being made by -----A. Seller
B. Retailer
C. Consignee
D. All the above
ANSWER: C
19. If the asset is sold, the provision for depreciation relating to the asset sold is transferred to ---------A. asset account
B. liability account
C. P & L account
D. trading account
ANSWER: A
20. Account sale is Submitted by
A. Consignor
B. Consignee
C. Principal to his agent
D. Debtor to creditor
ANSWER: B
21. The value of asset can be reduced to zero under this method -----------A. straight line method .
B. written down value method.
C. annuity method.
D. depreciation fund method.
ANSWER: A
22. In case of Delcredere commission, the liability for bad debts is on
A. Consignor
B. Consignee
C. Customer
D. None of the above
ANSWER: B
23. In the books of consignor, the balance in the goods sent on consignment account is shown in ---------A. On the asset side to balance sheet.
B. On the liability side of balance sheet.
C. On the credit side of trading A/c.
D. On the credit side of consignment A/c
ANSWER: C
24. The opening capital is ascertained by preparing
A. Cash book
B. Creditors A/c
C. Debtors A/c
D. Opening statement of affairs
ANSWER: D
25. Single entry system has effect:
A. One effect.
B. Two effect.
C. Three effect
D. None of the above.
ANSWER: A
26. Joint venture account is a
A. A general partnership
B. A particular partnership
C. partnership
D. Not limited a particular venture
ANSWER: B
27. Profit or loss on a joint venture is shared by the co-ventures --------A. Equally
B. in the capital radio
C. As per the agreement
D. profit Sharing Ratio
ANSWER: C
28. Joint bank account is opened ---------A. when no separate books for the venture are maintained
B. When separate books for the venture are maintained
C. Both
D. None of this
ANSWER: B
29. Straight line method is also called -----------A. written down value method .
B. annuity method.
C. original cost method.
D. depreciation fund method.
ANSWER: C
30. Under annuity method the amount of depreciation is found out from --------------A. log tables.
B. sinking fund tables.
C. annuity tables.
D. present value tables.
ANSWER: C
31. Sale of old newspaper is to be shown on the credit side of the -----------A. Sale of old newspaper is to be shown on the credit side of the________.
B. cash book.
C. income and expenditure.
D. balance sheet.
ANSWER: B
32. Consignment account is of the nature of a
A. real account.
B. nominal account.
C. personal account.
D. trading account.
ANSWER: D
33. When a venture recording the transactions brings goods to the joint venture from his own stock, the
amount is credited to ------A. Joint venture account
B. Purchase account
C. capital account
D. All of the above
ANSWER: B
34. Joint venture is a restricted or a temporary partnership between ------A. Two or more person
B. Single person
C. Two person
D. All the avove
ANSWER: A
35. Under insurance policy method the premium is paid in the ----------A. beginning of each year.
B. end of each year.
C. beginning of each month.
D. end of each month.
ANSWER: A
36. Ram has spend Rs. 20000 on account of a joint venture. What journal entry will you pass?
A. When separate set of books are kept
B. When records are kept by Ram
C. When records are kept by B
D. When records are kept by all partners
ANSWER: C
37. A complete separate set of books of account is kept when the size of the venture is --------A. Large
B. Small
C. both
D. None of these
ANSWER: A
38. When separate Books are kept under this method a separate joint bank account is opened the amount
contributed by ------A. single parties
B. Each partner
C. Third party
D. All the Above
ANSWER: B
39. In single entry system is usually adopted by
A. Company.
B. Partnership.
C. Government.
D. None of the above.
ANSWER: C
40. Expenses which cannot be identified with a particular department are called -------------A. direct expenses.
B. indirect expenses.
C. monthly expenses.
D. weekly expenses.
ANSWER: B
41. Selling expenses should be divided among the different department on the basis of ------------A. light points.
B. H.P of machine.
C. sales ratio.
D. floor area.
ANSWER: C
42. Each party will open a Joint venture account and the account of other parties in ----A. His books
B. Parties book
C. Not any one
D. None of these
ANSWER: A
43. Fire insurance and repairs on assets should be divided among the different departments on the basis of ---------.
A. light points.
B. H.P of machine.
C. value of each assets.
D. floor area.
ANSWER: C
44. Joint venture account is a nature of a ----------A. Real account
B. Personal account
C. Nominal account
D. None of these
ANSWER: C
45. Which of the following accounts makes the cost ledger self balancing?
A. Overhead adjustment account
B. Costing P&L account
C. Cost ledger control account
D. None of these
ANSWER: C
46. Carriage inward expenses should be divided among the different departments on the basis of ----------------A. light points.
B. purchase value.
C. sales ratio.
D. floor area.
ANSWER: B
47. Costing profit and loss account does not record the ----------A. Sale value of goods
B. Balance of overhead adjustment account
C. Balance of cost of sale account
D. Balance of stores ledger control account
ANSWER: D
48. Purchased ledger can be prepared verified by preparing --------- accounts in the general ledger
A. Total debtors account
B. Total creditors account
C. both
D. None of these
ANSWER: C
49. An individual account is kept for each creditor in the enterprises----------A. debtor's ledger
B. Creditor's ledger
C. both
D. None of these
ANSWER: B
50. Factory mangers salary should be divided among the different departments on the basis of ------------------A. time devoted to each department.
B. time spent in each department.
C. time assigned to each department.
D. time wasted in each department.
ANSWER: A
51. Single entry system must situated where
A. Cash transaction are many.
B. Credit transaction are many.
C. Cash and credit transaction are many
D. None of the above.
ANSWER: A
52. Credit sales can be obtained by preparing:
A. Cash book
B. statement of affairs
C. Debtors A/c
D. Creditors A/c
ANSWER: C
53. Expenses which cannot be apportioned to department must be shown in the _____.
A. balance sheet.
B. trading account.
C. P & L account.
D. P & L Appropriation account.
ANSWER: C
54. When goods are transferred from one department to other department, they are called __________.
A. inter-departmental transfers.
B. outer-departmental transfers.
C. not a transfer.
D. regular transfer.
ANSWER: A
55. The treatment of petty expenses made by the debtors system is as follows ---------------A. It is not recorded in the branch account
B. It is shown on the debit side of the branch account
C. It is shown on the general profit and loss account of head office
D. Only the closing balance of petty cash appear on the credit side of the branch account
ANSWER: D
56. Under debtors system the branch account is
A. Real account
B. nominal account
C. Personal account
D. None of these
ANSWER: D
57. In departmental accounts expenses like director fees, interest is transferred to ----------.
A. balance sheet.
B. trading account.
C. general P & L account .
D. P & L Appropriation account.
ANSWER: C
58. The departmental accounting enables a business firm to maximize ----------- .
A. profit.
B. losses.
C. cash.
D. assets .
ANSWER: A
59. Branch which does not maintain its own set of books is ------------A. dependent branch.
B. independent branch.
C. foreign branch.
D. local branch .
ANSWER: A
60. The business policies and the administration of a branch are wholly controlled by the head office the type
of branch is __________.
A. independent branch.
B. dependent branch.
C. local branch .
D. foreign branch.
ANSWER: B
61. Stock reserve in relation on opening stock appears under the debtors system
A. On the debit side of the branch account
B. on the credit side of the branch account
C. On the credit side of Head Office account
D. None of these
ANSWER: C
62. Branches not keeping full system of accounting are ________.
A. independent branch.
B. dependent branch.
C. local branch .
D. foreign branch.
ANSWER: B
63. All branch expenses such as rent, salary, are paid by the head office in case of _____.
A. independent branch.
B. local branch.
C. local branch.
D. dependent branch.
ANSWER: D
64. Dependent branch make _______.
A. only cash sales.
B. only credit sales.
C. cash and credit sales.
D. installment sales.
ANSWER: C
65. Under stock and debtors system the head office opens _________.
A. branch adjustment account.
B. branch debtors account.
C. branch creditors account .
D. branch cash account.
ANSWER: A
66. In branch account, goods sent by branch X to branch Y, will be debited to _______.
A. branch k.
B. branch x.
C. branch z .
D. branch y.
ANSWER: D
67. Under Debtors system, the Debtors at close are shown -------A. On the credit side of the Head Office Account
B. On the debit side of the branch account
C. On the credit side of the branch account after adjusting for bad debts, discount allowed etc.
D. Are not shown in the branch account
ANSWER: B
68. Under branch accounts debtors system, opening balance of assets are recorded in ____.
A. credit side.
B. debit side.
C. first credit and debit side.
D. first debit and credit side.
ANSWER: B
69. Under branch accounts debtors system, closing balance of assets are recorded in ------------A. credit side.
B. debit side.
C. first credit and debit side.
D. first debit and credit side.
ANSWER: A
70. Under branch accounts debtors system, opening balance of liabilities are recorded in ___________.
A. first credit and debit side.
B. first debit and credit side.
C. credit side.
D. debit side.
ANSWER: C
71. Under branch accounts debtors system, closing balance of liabilities are recorded in _________.
A. first credit and debit side.
B. first debit and credit side.
C. credit side.
D. debit side.
ANSWER: D
72. Under branch accounts debtors system, goods sent to branch account is recorded in _________.
A. debit side.
B. credit side.
C. asset side .
D. liabilities side.
ANSWER: A
73. Under branch accounts debtors system, loading on goods sent to branch adjusted in ________.
A. debit side.
B. credit side.
C. asset side .
D. liabilities side.
ANSWER: B
74. Under branch accounts debtors system, bad debts, discount allowed to debtors is ________
A. shown in debit side.
B. shown in credit side.
C. shown in asset side .
D. not shown.
ANSWER: D
75. Under branch accounts debtors system, both cash and credit sales are _______
A. shown in debit side.
B. shown in credit side.
C. shown in asset side .
D. not shown.
ANSWER: D
76. The difference between goods sent by head office and received by the branch is known as ___________.
A. goods in transit.
B. goods in godown.
C. goods in production.
D. goods in warehouse.
ANSWER: A
77. Under stock and debtors system of branch account, branch adjustment account is opened when goods sent
to branch is at ________
A. cost price.
B. invoice price.
C. market price.
D. normal price.
ANSWER: B
78. Under stock and debtors system of branch account, the account prepared to record all the transactions
relating to branch debtors is recorded in ________.
A. branch expenses account.
B. branch adjustment account.
C. branch debtors account.
D. branch creditors account.
ANSWER: C
79. In pure single entry which account is recorded
A. Personal
B. Real
C. Nominal
D. Asset
ANSWER: A
80. All personal, real and nominal accounts are opened in ------------A. single entry system.
B. double entry system.
C. accrual system.
D. mercantile system.
ANSWER: B
81. Only personal account and cash account are opened in ________
A. single entry system.
B. double entry system.
C. accrual system.
D. mercantile system.
ANSWER: A
82. Trial balance can be prepared in _________
A. single entry system.
B. double entry system.
C. accrual system.
D. mercantile system.
ANSWER: A
83. Costing profit and loss account does not record the
A. Sales value of goods
B. balance of overhead adjustment account
C. Balance of cost of sales account
D. Balance of stores ledger account
ANSWER: D
84. The closing balance of cost of sales account is transferred to -------A. Cost ledger control account
B. Selling and distribution overhead account
C. Costing profit and loss account
D. None of nthese
ANSWER: C
85. Balance sheet cannot be prepared ________.
A. in single entry system.
B. in double entry system.
C. with the help of cash book.
D. with the help of bank account.
ANSWER: A
86. In single entry system, net worth method is also called ________.
A. double entry system .
B. mercantile system.
C. statement of affairs method.
D. accrual system.
ANSWER: C
87. Difference between net worth at the beginning of the year and at the end of the year represents _________.
A. capital balance.
B. cash balance.
C. pass book balance.
D. profit or loss.
ANSWER: D
88. Opening capital can be found by preparing ________.
A. cash book.
B. bank account.
C. statement of affairs.
D. statement of bank pass book.
ANSWER: C
89. A statement of affairs is just like a _________.
A. balance sheet.
B. profit and loss account.
C. cash account.
D. trading account.
ANSWER: A
90. In statement of affairs assets are shown on the __________
A. right hand side.
B. left hand side.
C. left hand side top.
D. left hand side bottom.
ANSWER: A
91. In statement of affairs liabilities are shown on the -------------A. right hand side.
B. left hand side
C. right hand side top
D. right hand side bottom
ANSWER: B
92. Under single entry system, closing capital can be found by preparing a statement of affairs ____________.
A. at the end of the year.
B. at the beginning of the year.
C. at the end of every month.
D. at the end of every quarter.
ANSWER: A
93. Under single entry system, opening capital can be found by preparing a statement of affairs
____________.
A. at the end of the year.
B. at the beginning of the year.
C. at the end of every month.
D. at the end of every quarter.
ANSWER: B
94. Under single entry system in net worth method, drawings is added with _______.
A. opening capital.
B. closing capital.
C. additional capital.
D. drawings.
ANSWER: B
95. Under single entry system in net worth method, additional capital is deducted with __________.
A. opening capital.
B. closing capital.
C. additional capital.
D. drawings.
ANSWER: B
96. Under single entry system in net worth method, opening capital is subtracted from _________.
A. opening capital.
B. closing capital.
C. additional capital.
D. drawings.
ANSWER: B
97. Under single entry system in conversion method, a total debtors account is prepared to find out
___________.
A. credit sales.
B. cash sales.
C. credit purchases.
D. cash purchases.
ANSWER: A
98. Under single entry system in conversion method, a total debtors account is prepared to find out -------A. credit purchases.
B. cash purchases.
C. purchase returns.
D. closing balance of debtors.
ANSWER: D
99. Debtors account is a -----------A. personal account.
B. real account.
C. nominal account.
D. cash account.
ANSWER: A
100. Total creditors account is prepared to find out ___________
A. credit sales.
B. cash sales.
C. credit purchases.
D. cash purchases.
ANSWER: C
101. Total creditors account is prepared to find out _______.
A. opening balance of debtors .
B. closing balance of debtors.
C. opening balance of creditors.
D. closing balance of creditors.
ANSWER: D
102. A bills receivable account is prepared to ascertain bills _______.
A. accepted.
B. received.
C. drawn.
D. endorsed.
ANSWER: B
103. A bills payable account is prepared to ascertain bills __________.
A. accepted.
B. received.
C. drawn.
D. endorsed.
ANSWER: A
104. Bills receivable is a ---------------A. Current asset
B. Current liability
C. debit
D. credit
ANSWER: A
105. Bills payable is ___________
A. debit.
B. credit.
C. current asset
D. current liability
ANSWER: D
106. Transfer to creditors account will be posted in which side of debtors account
A. Debit
B. Credit
C. Outside
D. Inside
ANSWER: B
107. Transfer to creditors account will be posted in which side of creditors account?
A. Debit.
B. Credit.
C. Outside.
D. Inside.
ANSWER: A
108. Bills receivable dishonoured will be posted in which side of creditors account
A. Debit
B. Credit
C. Outside
D. Inside
ANSWER: A
109. Bills payable dishonoured will be posted in which side of bills payable account?
A. Debit.
B. Credit.
C. Outside.
D. Inside.
ANSWER: B
110. Opening balance of debtors will be posted in which side of debtors account?
A. Debit.
B. Credit.
C. Outside.
D. Inside.
ANSWER: A
111. Closing balance of debtors will be posted in which side of debtors account?
A. Debit.
B. Credit.
C. Outside.
D. Inside.
ANSWER: B
112. Closing balance of creditors will be posted in which side of creditors account
A. Debit.
B. Credit.
C. Outside.
D. Inside.
ANSWER: A
113. Opening balance of creditors will be posted in which side of creditors account
A. Debit.
B. Credit.
C. Outside.
D. Inside.
ANSWER: B
114. Cash account opening balance will appear in _______
A. debit .
B. credit.
C. outside.
D. inside.
ANSWER: A
115. Cash account closing balance will appear in ------------A. debit .
B. credit.
C. outside.
D. inside.
ANSWER: B
116. Bills payable account opening balance will appear in ---------------A. debit .
B. credit.
C. outside.
D. inside.
ANSWER: B
117. Bills payable account closing balance will appear in ____________.
A. debit .
B. credit.
C. outside.
D. inside.
ANSWER: A
118. Bills receivable account opening balance will appear in _________.
A. debit .
B. credit.
C. outside.
D. inside.
ANSWER: A
119. In the case of sectional balancing is only general ledger made by ------A. Debtor's balancing
B. Creditor's balancing
C. Self-balancing
D. General balancing
ANSWER: C
120. An individual account is kept for each creditor in enterprises
A. Debtors ledger
B. Creditor ledger
C. both
D. None of these
ANSWER: B
121. The sectional balancing is self-balancing of a section of
A. Group ledger
B. Individual ledger
C. Both
D. None of these
ANSWER: A
122. In financial account's depreciation is calculated under------------A. Machine hour rate
B. Production unit method
C. Depletion unit method
D. Straight line method
ANSWER: D
123. In cost accounts depreciation is calculated under ---------A. straight line method
B. Diminishing balance method
C. Annuity method
D. Machine hour rate
ANSWER: D
124. Under Straight line method amount of depreciation will be ------A. Fixed
B. Fluctuating
C. Fixed for two years
D. Changes as per usage
ANSWER: A
125. Straight line method Charges depreciation on-----------A. Purchase price
B. Sales price
C. Resale value
D. Scrap
ANSWER: A
126. -------------- method the amount of depreciation will be remain same
A. Decline method
B. Diminishing balance method
C. Straight line method
D. Annuity method
ANSWER: C
127. Under diminishing balance method the amount ------------A. Reduce year by year
B. Remain same
C. Fluctuate
D. Remain constituent
ANSWER: A
128. IT Act recognizes
A. Straight line method
B. Diminishing balance method
C. revaluation method
D. Annuity method
ANSWER: B
129. Annuity value means ---------A. Value of rupee after life
B. Value of asset
C. Scrap value
D. Cash inflows
ANSWER: A
130. Sinking Fund of depreciation is also called
A. Reserve Fund
B. Compensation Fund
C. Depreciation fund
D. Workers fund
ANSWER: C
131. Rent and rates should be divided among the different departments on the basis of ----------A. Light points
B. H.P machine
C. Sales ratio
D. Floor ratio
ANSWER: C
132. Fire insurance and repairs on assets should be divided among the different the basis of ----A. Light points
B. H.P machine
C. Value of each assets
D. Floor area
ANSWER: C
133. The departmental accounting enables the business firm to maximize
A. profits
B. losses
C. cash
D. Assets
ANSWER: A
134. The departmental accounts expenses like director fees, interest is transferred to
A. Balance sheet
B. Trading Account
C. General p&L account
D. P&L appropriation account
ANSWER: C
135. Dependent branch make
A. Only cash sales
B. only credit sales
C. Cash and credit sales
D. Installment sales
ANSWER: C
136. Under stock and debtors system the H.O opens
A. Branch adjustment account
B. Branch debtors account
C. Branch creditors account
D. Branch cash account
ANSWER: A
137. Difference between net worth at the beginning of the year at the end of the year represents ------A. Capital balance
B. cash balance
C. Pass book balance
D. Profit or loss
ANSWER: D
138. Opening capital can be found by preparing
A. Cash book
B. Bank account
C. Statement of affairs
D. Statement of bank pass book
ANSWER: C
139. Under single entry system in net worth method, drawing is added with
A. Opening Capital
B. Closing Capital
C. Additional capital
D. Drawings
ANSWER: B
140. Under single entry system in net worth method, additional capital is deducted with
A. Opening capital
B. Closing Capital
C. Additional Capital
D. Drawings
ANSWER: B
141. Under single entry system in conversion method, a total debtors account is prepared to find out
A. Credit sales
B. Cash sales
C. Credit purchase
D. Cash purchase
ANSWER: A
142. Debtors account is a -----------.
A. Personal account
B. Real Account
C. Nominal Account
D. Cash Account
ANSWER: A
143. Total creditors account is prepared to find out ------A. Credit sales
B. Cash sales
C. Cash purchase
D. Credit purchase
ANSWER: C
144. A bill receivable book is prepared to ascertain bills ----------A. accepted
B. Received
C. Drawn
D. Endorsed
ANSWER: B
145. A bills payable book is prepared to ascertain bills -------------A. Accepted
B. Received
C. Drawn
D. Endorsed
ANSWER: A
146. Bills receivable dishonored will be posted to ---------- side of debtors account
A. Debit
B. Credit
C. Outside
D. Inside
ANSWER: A
147. Cash account will opening balance will appear in -----------A. Debit
B. Credit
C. Outside
D. Inside
ANSWER: A
148. Bills payable account opening balance will appear in
A. Debit
B. Inside
C. Credit
D. Outside
ANSWER: C
149. Fire insurance provides cover for _________.
A. Tangible assets.
B. Intangible assets.
C. Fictitious assets.
D. None of the above.
ANSWER: A
150. Credit purchase cab be obtained by preparing:
A. Cash book
B. Debtors A/c
C. creditors A/c
D. Statement of affairs
ANSWER: C
Staff Name
Hemalatha G .