BBI Foundational Course 1 MCQ's




Question 211 :
Interest on calls in advance should not exceed _____.

  1. 0.06
  2. 0.07
  3. 0.1
  4. None of the above
  

Question 212 :
Bills payable is a

  1. Liability
  2. capital
  3. asset
  4. None of the above
  

Question 213 :
Net Sales = Total Sales _____.

  1. Profit - Loss Account
  2. Trial Balance
  3. minus sales return
  4. None of the above
  

Question 214 :
Double entry system of book-keeping denotes that every business transaction has _____ effects.

  1. two-fold
  2. three-fold
  3. no
  4. one-fold
  

Question 215 :
Balance of depreciation account is transferred to _____.

  1. Trading Account
  2. Profit - Loss Account
  3. Profit - Loss Appropriation Account
  4. Balance Sheet
  

Question 216 :
Property Accounts show _____ balance.

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

Question 217 :
Addition of a computer lab to the building ` 60,000

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

Question 218 :
Payment of penalty is a _____ expenditure.

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

Question 219 :
AS–2 recognises _____ and _____ Methods.

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

Question 220 :
_____ _____ is issued when goods are sold for cash.

  1. cash memo
  2. cash receipt
  3. credit memo
  4. None of the above
  

Question 221 :
_____ is a statement of assets and liabilities of a business on a particular date.

  1. Trial Balance
  2. Sales Return
  3. Balance sheet
  4. None of the above
  

Question 222 :
Rectification entries are done in ____.

  1. Journal proper
  2. Sales A/c
  3. Cash A/c
  4. None of the above
  

Question 223 :
FMP – Normal Profit = _____.

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

Question 224 :
Amount which is not recoverable.

  1. Bad Debts
  2. Debtors
  3. Debts
  4. None of the above
  

Question 225 :
The buyer of goods on H.P. basis is _____.

  1. Possession
  2. Outstanding
  3. Hirer
  4. None of the above
  

Question 226 :
Gradual and permanent decrease in the value of asset is known as _____.

  1. fluctuation
  2. depreciation
  3. appreciation
  4. gradual
  

Question 227 :
Accounting principles are _____.

  1. Going Concern
  2. Consistency
  3. manmade
  4. None of the above
  

Question 228 :
Under _____ method balance sheet does not show stock at current price.

  1. Periodic
  2. Perpetual
  3. Physical
  4. None of the above
  

Question 229 :
Under hire purchase agreement interest is charged on _____ cash price.

  1. Last intalment
  2. Interest
  3. Outstanding
  4. None of the above
  

Question 230 :
The first reporting period as per IFRS is _____.

  1. 2016-2017
  2. 2015-2016
  3. 2017-2018
  4. None of the above
  

Question 231 :
Under _____ inventory system, stock is valued on the basis of stores ledger.

  1. Periodic
  2. Perpetual
  3. Physical
  4. All of the above
  

Question 232 :
_____ method is not recognised by AS 2.

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

Question 233 :
Cost of repairing the building

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

Question 234 :
A person whose assets are more than his liabilities ______.

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

Question 235 :
The method in which rate of depreciation remains constant but not amount of depreciation is known as _____.

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

Question 236 :
Cash price method is known as _____ _____ method.

  1. Signing the agreement
  2. Payment of last instalment
  3. Asset Accrual Method
  4. None of the above
  

Question 237 :
Purchases refer to purchases of _____.

  1. Transaction
  2. cash receipt
  3. goods
  4. None of the above
  

Question 238 :
The amount of calls in arrears is _____ from share capital.

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

Question 239 :
Under _____ method stock is valued after every transaction.

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

Question 240 :
Rent _____ is an income but rent _____ is an expense.

  1. Closing Capital
  2. Received, paid
  3. All of the above
  
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