BBI Foundational Course 1 MCQ's




Question 31 :
The asset which is expected to be converted into cash is called as _____ asset.

  1. copy rights
  2. current
  3. Profit-making
  4. All of the above
  

Question 32 :
Which concept does not recognise the realisable value, the replacement value or the real worth of an asset?

  1. Cost Concept
  2. Money measurement
  3. Going Concern
  4. None of the above
  

Question 33 :
Preference shareholders are _____ of the company.

  1. owers
  2. uncalled capital
  3. premium
  4. None of the above
  

Question 34 :
(Opening Capital + Interest on Capital + Profit) - (Drawings) gives _____.

  1. Closing Stock
  2. Net Profit
  3. Closing Capital
  4. None of the above
  

Question 35 :
Machinery bought on credit for permanent use.

  1. Property
  2. Goods
  3. Journal
  4. None of the above
  

Question 36 :
Cost of business connection is called as ______.

  1. cash receipt
  2. goodwill
  3. copy rights
  4. None of the above
  

Question 37 :
In hire purchase ownership is transferred on payment of _____ _____.

  1. Down Payment
  2. Last Instalment
  3. Interest
  4. None of the above
  

Question 38 :
Depreciation is essential to arrive at a true _____ or _____.

  1. profit, loss
  2. income, expenses
  3. gain, loss
  4. receipt, payment
  

Question 39 :
Under which system the businessman writes accounts in vernacular of Indian language?

  1. Indian System
  2. Cash System
  3. Credit System
  4. Accrual System
  

Question 40 :
Amount invested in business is ______.

  1. capital
  2. Trading concern
  3. Non-Trading concern
  4. None of the above
  

Question 41 :
A Bills Receivable is

  1. an asset
  2. a liability
  3. capita
  4. None of the above
  

Question 42 :
Expenditure incurred for acquisition of fixed assets.

  1. Capital expenditure
  2. revenue expenditure
  3. deferred revenue expenditure
  4. All of the above
  

Question 43 :
Total Sales of the year = _____. sales _____. sales.

  1. Cash, Net Credit
  2. Gross Profit
  3. Net Profit
  4. None of the above
  

Question 44 :
A credit balance in Trading Account represents _____.

  1. Gross Profit
  2. Gross Loss
  3. Net Profit
  4. All of the above
  

Question 45 :
Received from X Ltd. an invoice for ` 3,500 for repairs of walls of the office premises

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

Question 46 :
The capital which carries right to dividend at fixed rate is called ____ share capital.

  1. calls in arrears
  2. deduction
  3. preference
  4. All of the above
  

Question 47 :
Interest on overdraft charged by the Bank is _____ to the Pass Book and _____ to the Cash Book.

  1. Debited, Credited
  2. Bank, Account holder
  3. Fixed Deposit Account
  4. None of the above
  

Question 48 :
A person who owes the amount to the business.

  1. Debtor
  2. Creditor
  3. Bad Debts
  4. None of the above
  

Question 49 :
Heavy advertising expenditure for launching a new product.

  1. Capital expenditure
  2. revenue expenditure
  3. deferred revenue expenditure
  4. None of the above
  

Question 50 :
A debit balance in Trading Account represents _____.

  1. Gross Loss
  2. Trial Balance
  3. Closing Capital
  4. All of the above
  

Question 51 :
Under _____ method, the cost of asset cannot be reduced to Zero.

  1. WDV
  2. written down value
  3. Straight Line
  4. Constant
  

Question 52 :
The company making up an I.P.O. has to open _____ Account with bank

  1. Escrow
  2. calls in advance
  3. capital reserve
  4. None of the above
  

Question 53 :
As per _____ _____ concept every transaction has dual aspects.

  1. Conservatism
  2. Dual Aspect
  3. Disclosure concept
  4. None of the above
  

Question 54 :
Amount spent on installation of machinery is a _____ expenditure.

  1. capital revenue
  2. deferred revenue
  3. revenue
  4. capital
  

Question 55 :
The shares issued applied and allotted by a company is called _____.

  1. general reserve
  2. subscribed
  3. employees
  4. None of the above
  

Question 56 :
If the number of shares for which application is received exceeds issued shares, it is called _____.

  1. calls in advance
  2. Share Application
  3. over subscription
  4. None of the above
  

Question 57 :
US GAAP are issued by _____.

  1. IASB
  2. FASB
  3. Both (a) and (b)
  4. None of the above
  

Question 58 :
Under _____ method, fluctuations in prices are overcome.

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

Question 59 :
Profit - Loss Account is _____ by the amount of depreciation.

  1. credited
  2. debited
  3. added
  4. deducted
  

Question 60 :
The fixed value of a share is called _____ value of a share.

  1. face value
  2. deducted
  3. uncalled capital
  4. All of the above
  
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