BBI Foundational Course 1 MCQ's




Question 241 :
Expenses incurred for obtaining a licence to start the factory ` 10,000

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

Question 242 :
Calls in advance shown under _____.

  1. Article of Association
  2. Forfeited Shares
  3. other current liability
  4. None of the above
  

Question 243 :
The shares issued on capitalisation of reserves are called _____.

  1. Share Application
  2. bonus shares
  3. capital reserve
  4. All of the above
  

Question 244 :
Amount invested into business.

  1. Capital
  2. Drawings
  3. Loan
  4. None of the above
  

Question 245 :
Gross Profit = (Sales + Closing Stock) - (Opening Stock + Purchases + _____ ).

  1. Purchase expenses
  2. Total Liabilities + Capital
  3. Net Profit
  4. All of the above
  

Question 246 :
The balance of a Trading Account is transferred to _____.

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

Question 247 :
Sweat shares are issued to _____.

  1. subscribed
  2. employees
  3. securities premium
  4. All of the above
  

Question 248 :
Bank Pass Book is an _____ of account holder's transactions with the bank.

  1. Overdraft
  2. Credit
  3. extract
  4. None of the above
  

Question 249 :
Call money not paid by shareholders is called _____.

  1. called-up
  2. calls in arrears
  3. Escrow
  4. All of the above
  

Question 250 :
As per _____ _____ concept every transaction must be supported by documentary evidence.

  1. Accrual concept
  2. Objective Evidence
  3. Disclosure concept
  4. None of the above
  

Question 251 :
Commodity in which a trader deals

  1. Goods
  2. Property
  3. non-profit making
  4. None of the above
  

Question 252 :
Legal expenses incurred in raising debenture loans

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

Question 253 :
A concern established for carrying out charitable activities.

  1. Trading concern
  2. Non-Trading concern
  3. Goods
  4. All of the above
  

Question 254 :
The total of all _____ must agree with the total of all _____.

  1. debits, credits
  2. assets, liabilities
  3. income, expense
  4. gain, loss
  

Question 255 :
The avoidance of charging depreciation render the profit _____.

  1. inaccurate
  2. accurate
  3. fictitious
  4. right
  

Question 256 :
Book-Keeping is a systematic record of _____ transactions.

  1. monetary
  2. Drawings
  3. Loan
  4. None of the above
  

Question 257 :
Calls in advance can be received if it is authorised by _____.

  1. Share Application
  2. premium
  3. Article of Association
  4. None of the above
  

Question 258 :
Under which system only cash transactions are recorded.

  1. Barter System
  2. Cash System
  3. Accrual System
  4. Hybrid System
  

Question 259 :
The assets which cannot be seen are called as _____ assets.

  1. cash receipt
  2. intangible
  3. tangible
  4. None of the above
  

Question 260 :
Selling a bill before the due date is known as _____.

  1. Assets
  2. Discounting
  3. Closing Capital
  4. All of the above
  

Question 261 :
AS 30 deals with _____.

  1. Earning per share
  2. Presentation
  3. Revenue Recognition
  4. None of the above
  

Question 262 :
Liabilities + Capital at the end = _____.

  1. Assets
  2. None of the above
  

Question 263 :
Documentation charges regarding purchase of building is a _____ expenditure.

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

Question 264 :
Repairs of machinery is a _____ expenditure.

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

Question 265 :
Paid to an advocate to defend a suit claiming that the factory site belongs to the firm, the suit was

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

Question 266 :
Gross loss is shown on the _____ side of a Profit and Loss Account.

  1. Credit
  2. Debit
  3. Capital
  4. None of the above
  

Question 267 :
In an error of principle, the debit and the credit are _____.

  1. two-sided error
  2. Equal
  3. One-sided error
  4. None of the above
  

Question 268 :
Wages paid for installation of machinery should be debited to _____.

  1. Machinery Account
  2. Wages Account
  3. Profit - Loss Account
  4. Balance Sheet
  

Question 269 :
_____ _____ is prepared for adjustments.

  1. credit memo
  2. voucher
  3. Journal voucher
  4. None of the above
  

Question 270 :
____ value is the value which an asset realises at the expiry of its working life.

  1. Market
  2. Cost
  3. Patent
  4. Scrap
  
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