BBI Foundational Course 1 MCQ's




Question 1 :
Under which concept comparison of one accounting period with the other is possible?

  1. Consistency concept
  2. Accrual concept
  3. Entity
  4. None of the above
  

Question 2 :
Non-Profit Organisation is established for _____ _____.

  1. Revenue
  2. Balance Sheet.
  3. Providing services
  4. None of the above
  

Question 3 :
Difference in trial balance may be transferred to _____ Account.

  1. principle
  2. commission
  3. Suspense
  4. None of the above
  

Question 4 :
Liquid assets are convertible into

  1. cash
  2. liability
  3. debtors
  4. All of the above
  

Question 5 :
The expenditure which gives benefit for a longer period is called as _____ expenditure.

  1. capital
  2. expenses
  3. fictitious
  4. None of the above
  

Question 6 :
Issue of shares at a price higher than the face value is called as issue at a _____.

  1. premium
  2. equity
  3. owers
  4. None of the above
  

Question 7 :
The Bank Reconciliation Statement is prepared to reconcile the balances of the (a) _____ and the (b) _____.

  1. Debited, Credited
  2. Cash Book, Pass Book
  3. Balance with Bank
  4. All of the above
  

Question 8 :
Unpaid money on shares is disclosed as _____ from share capital.

  1. deduction
  2. general reserve
  3. reserve capital
  4. None of the above
  

Question 9 :
In _____ method, stock is valued at current rate.

  1. FIFO
  2. Weighted Average
  3. LIFO
  4. None of the above
  

Question 10 :
AS 2 deals with _____ _____.

  1. Inventory Valuation
  2. Impairment of assets
  3. Borrowing Cost
  4. None of the above
  

Question 11 :
Capital employed is _____ _____ capital.

  1. Normal Rate
  2. Tangible Trading
  3. Super Profit
  4. None of the above
  

Question 12 :
The Bank Statement is sent by _____ to _____.

  1. Bank, Account holder
  2. Cheque, Cash
  3. Both
  4. None of the above
  

Question 13 :
Interest on capital is charged to _____ account.

  1. Trial Balance
  2. Closing Capital
  3. Profit - Loss Account
  4. All of the above
  

Question 14 :
Exchange of goods for goods.

  1. Transaction
  2. Barter transaction
  3. Property
  4. None of the above
  

Question 15 :
_____ expenditure does not give any future benefits.

  1. Capital
  2. Revenue
  3. D.R. Expenses
  4. None of the above
  

Question 16 :
Sale refers to sale of

  1. goods
  2. assets
  3. scrap
  4. None of the above
  

Question 17 :
In fixed instalment method. the amount of depreciation is ____ year after year.

  1. fluctuating
  2. fixed
  3. changing
  4. inflating
  

Question 18 :
AS 16 deals with _____ _____.

  1. Earning per share
  2. Inventory Valuation
  3. Borrowing Cost
  4. None of the above
  

Question 19 :
_____ method assumes that stock received first is issued first.

  1. FIFO
  2. Weighted Average
  3. LIFO
  4. All of the above
  

Question 20 :
Scope of accounting is _____ than that of Book-keeping.

  1. Bad Debts
  2. wider
  3. Casting
  4. None of the above
  

Question 21 :
Liabilities + Capital at the end given = _____.

  1. Total Assets
  2. None of the above
  

Question 22 :
AS 19 deals with _____.

  1. Interim financial Reporting
  2. Leases
  3. Borrowing Cost
  4. None of the above
  

Question 23 :
An exchange of money or money's worth between two parties.

  1. Transaction
  2. cash receipt
  3. Profit-making
  4. None of the above
  

Question 24 :
The immediate recognition of loss is supported by the underlying principle of :

  1. Matching, Consistency
  2. Conservatism
  3. Going Concern
  4. None of the above
  

Question 25 :
Took loan from SBI ` 5,00,000

  1. Revenue receipt
  2. Capital receipt
  3. Deferred revenue expenditure
  4. None of the above
  

Question 26 :
_____ _____ _____ method is known as credit purchase method.

  1. Down Payment
  2. Cash Price
  3. Hire vendor
  4. None of the above
  

Question 27 :
Bank charges increase _____ balance.

  1. Fixed Deposit Account
  2. Bank Pass Book
  3. Credit Balance
  4. None of the above
  

Question 28 :
A trial balance _____ inspite of several errors.

  1. Subsidiary books
  2. Posting
  3. Tallies
  4. None of the above
  

Question 29 :
Under _____ Method, depreciation is calculated on written down value.

  1. Reducing Balance
  2. Fixed Instalment
  3. Changing Value
  4. Constant Value
  

Question 30 :
The method in which depreciation remains constant is known as ____ Method.

  1. Fixed Instalment
  2. WDV
  3. Fluctuating Line
  4. straight line method
  
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