BBI Foundational Course 1 MCQ's




Question 121 :
Carriage on purchase of furniture is _____ expenditure.

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

Question 122 :
Under _____ method lots of stock should be identified.

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

Question 123 :
Transaction which involves receipt or payment of cash is known as ______ transaction.

  1. Cash
  2. capital
  3. drawings
  4. None of the above
  

Question 124 :
Depreciation is not an _____ of profit but, is a charge on profit.

  1. appropriation
  2. charge
  3. set aside
  4. set off
  

Question 125 :
Basic motive of non-trading concern is not to make profit.

  1. Profit-making
  2. non-profit making
  3. Profit
  4. All of the above
  

Question 126 :
_____ _____ is the price at which goods are purchased today for full payment.

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

Question 127 :
Which concept stipulates that accounts must be honestly prepared and they must disclose all material information?

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

Question 128 :
Loss on Sale of Machinery is _____ to Machinery Account.

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

Question 129 :
Concepts provide a _____ to accounting process.

  1. Entity
  2. Foundation
  3. None of the above
  

Question 130 :
By the amount of depreciation, the value of asset _____.

  1. decreases
  2. increases
  3. changes
  4. remains constant
  

Question 131 :
As per _____ _____ profit is earned when it is realized.

  1. Entity
  2. Realisation
  3. Conservatism
  4. None of the above
  

Question 132 :
At the end of the year, depreciation is transferred to _____ Account.

  1. Receipt - Payment
  2. Profit - Loss Appropriation
  3. Balance Sheet
  4. Profit - Loss
  

Question 133 :
A Discount reserve on debtors has a _____ balance.

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

Question 134 :
_____ equity shares can be issued at discount.

  1. general reserve
  2. sweet
  3. discount
  4. All of the above
  

Question 135 :
Investments are

  1. Non-trading assets.
  2. Intangible assets.
  3. Fictitious assets.
  4. Capital employed.
  

Question 136 :
The evidence of a transaction is

  1. a voucher
  2. a cash memo
  3. a bill
  4. All of the above
  

Question 137 :
Sales - Cost of Goods sold = _____.

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

Question 138 :
Errors which compensate the effect of each others are called as _____.

  1. Error of principle
  2. Error of commission
  3. Compensating errors
  4. None of the above
  

Question 139 :
As per _____ concept fixed assets are distinguished from current assets.

  1. going concern
  2. Disclosure concept
  3. Cost Concept
  4. None of the above
  

Question 140 :
_____ fees are capitalised.

  1. Revenue
  2. Membership
  3. Capital Fund
  4. None of the above
  

Question 141 :
A person who owes something to us is a ______.

  1. debtor
  2. creditor
  3. Goodwill
  4. All of the above
  

Question 142 :
Mistakes involving wrong posting are called as errors of _____.

  1. Suspense
  2. Posting
  3. Equal
  4. None of the above
  

Question 143 :
_____ is expenditure on asset held for generation of interest / dividend.

  1. Revenue
  2. Investment
  3. Capital
  4. None of the above
  

Question 144 :
In reducing Balance method the amount of depreciation _____ year after year.

  1. reduces
  2. charges
  3. increases
  4. remains constant
  

Question 145 :
As per Table F, interest on calls in arrears is charged @ _____.

  1. 0.12
  2. 0.15
  3. 0.14
  4. All of the above
  

Question 146 :
_____ is an excess of assets over liabilities.

  1. Capital Fund
  2. Specifit Fund
  3. Providing services
  4. None of the above
  

Question 147 :
ASB was constituted on _____.

  1. 21st April,1978
  2. 21st April,1977
  3. 21st April,1987
  4. None of the above
  

Question 148 :
Cost incurred for production of goods or services is called as an _____.

  1. intangible
  2. tangible
  3. expenses
  4. None of the above
  

Question 149 :
In every transaction at least _____ parties are involved.

  1. two
  2. three
  3. four
  4. one
  

Question 150 :
A book of daily records.

  1. Journal
  2. Ledger
  3. Cash book
  4. None of the above
  
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