BBI Foundational Course 1 MCQ's




Question 181 :
Expenses decrease

  1. Net worth
  2. Loss
  3. drawing
  4. All of the above
  

Question 182 :
Every business transaction has effect on at least _____ accounts.

  1. three
  2. two
  3. cash
  4. capital
  

Question 183 :
Assets minus liabilities is _____.

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

Question 184 :
Suspense a/c is created for recording the _____.

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

Question 185 :
Which is the system of Book-Keeping under which only records of cash and personal accounts are maintained?

  1. Single Entry System
  2. Double Entry System
  3. Cash System
  4. Hybrid System
  

Question 186 :
On Hire Purchase the ownership is transferred on payment of _____ instalment.

  1. First
  2. Hirer
  3. Last
  4. None of the above
  

Question 187 :
Discount allowed on re-issue of forfeited shares is debited to _____ Account.

  1. Forfeited Shares
  2. general reserve
  3. Forfeited Shares
  4. None of the above
  

Question 188 :
A person to whom we owe something is a ______.

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

Question 189 :
Current assets are

  1. short term
  2. medium term
  3. long term
  4. None of the above
  

Question 190 :
In the event of part allotment of shares excess application money can be _____.

  1. capital reserve
  2. retained
  3. general reserve
  4. All of the above
  

Question 191 :
The method of writing every financial transaction in two accounts is called as _____ system of Book-keeping.

  1. double entry
  2. single entry
  3. multiple entry
  4. no entry
  

Question 192 :
Drawings are shown by way of deductions from _____ in a Balance Sheet.

  1. Assets
  2. Trial Balance
  3. Capital
  4. None of the above
  

Question 193 :
A list of balances of all the accounts in the ledger is called _____.

  1. Trial Balance
  2. Sales Return
  3. Net Profit or Net Loss
  4. None of the above
  

Question 194 :
Under straight line method the asset is reduced to its _____ by the end of its estimated life.

  1. zero
  2. nil
  3. negative figure
  4. positive figure
  

Question 195 :
_____ method is recognised by AS 2.

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

Question 196 :
Excess of capital at the end over the capital at the beginning shows _____.

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

Question 197 :
IFRS are issued by _____.

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

Question 198 :
Under capitalisation of super profit method, goodwill is equal to

  1. Capitalised value of super profit at normal rate of return.
  2. Super profit.
  3. Normal profit less super profit.
  4. Average profit.
  

Question 199 :
Under _____ method stock is valued at oldest rate.

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

Question 200 :
A new company cannot issue share at a _____.

  1. discount
  2. premium
  3. owers
  4. All of the above
  

Question 201 :
Hire purchase price includes _____ and _____.

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

Question 202 :
Notice of _____ days is must for payment of calls on shares.

  1. 11
  2. 15
  3. 14
  4. None of the above
  

Question 203 :
The seller gets the right to take back _____ of goods in case of default in payment.

  1. Cash price
  2. Interest
  3. Possession
  4. None of the above
  

Question 204 :
A documentary evidence of a transaction is called as _____.

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

Question 205 :
Total Assets - Capital = _____.

  1. Liabilities
  2. Net Profit
  3. Trial Balance
  4. All of the above
  

Question 206 :
Depreciation is charged on _____ assets.

  1. fixed
  2. current
  3. intangible
  4. tangible
  

Question 207 :
As per ____ concept business is separated from the proprietor.

  1. Cost Concept
  2. Going concern
  3. Entity
  4. None of the above
  

Question 208 :
_____ expenditure is shown in Profit - Loss Account.

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

Question 209 :
Under the _____ System of depreciation, the amount of depreciation does not change from year to year.

  1. Fixed Instalment
  2. Reducing Balance
  3. WDV
  4. Cost
  

Question 210 :
Purchased a lathe machine ` 1.50 as

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