Arts, Commerce and Science College, Bodwad.
Question Bank
T.Y. [Link]. Sem-V Subject: -Advanced Accounting- I
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Multiple Choice Questions
1) Value of Output minus Value of Input is.........
a) Net Output
b) Net Input
c) Value Added
d) None
2) Minimum components of Interim Financial Report include ..........
a) Condensed Balance Sheet
b) Condensed Cash Flow Statement
c) Condensed Profit & Loss Account
d) All the three
3) How many Insolvency Act are applicable in India .........?
a) Only One
b) Two
c) Three
d) Four
4) Presidency Town Insolvency Act not applicable to .............
a) Mumbai
b) Delhi
c) Chennai
d) Kolkata
5) Provincial Insolvency Act not applicable in ............
a) Mumbai
b) Agra
c) Hyderabad
d) Nagpur
6) Statement of Affairs is Statement of ...............
a) Profitability
b) Liquidity
c) Assets & Liability
d) None
7) Statement of Affairs is prepared at ............
a) Book Value
b) Net Realizable Value
c) Cost
d) Other
8) Balance Sheet is prepared at ..............
a) Book Value
b) Net Realizable Value
c) Cost
d) Other
9) Which of the following item not included in statement of Affairs ..........?
a) Fixed Assets
b) Investment
c) Current Assets
d) Fictitious Assets
10) Deficiency Account explains ............
a) Financial Position
b) Causes of Insolvency
c) Other
d) None
11) Which of the following item is preferential under both presidency Town & Provincial
Insolvency Act …….?
a) Salaries to Clerk
b) Wages to Worker
c) Rent
d) Rates & Taxes
12) The Monitory limit of salary per clerk as presential, under presidency Town Insolvency
Act is..........
a) Rs. 100
b) Rs. 200
c) Rs. 300
d) Rs. 400
13) The monitory limit of wages per worker as presential, under presidency Town Insolvency
Act is........
a) Rs. 100
b) Rs. 200
c) Rs. 300
d) Rs. 400
14) The monitory limit for salary & wages per head as prefential, under provincial Insolvency
Act is .........
a) Rs. 10
b) Rs. 20
c) Rs. 50
d) Rs. 100
15) Which of the following item is not preferential under provincial Insolvency Act is .........?
a) Rates & Taxes
b) Salary to Clerk
c) Wages to Worker
d) Rent to Landlord
16) Creditors are basically classified as ...............
a) Fully Secured – Partly Secured
b) Preferential – Non-Preferential
c) Secured – Unsecured
d) None
17) If realizable value of assets is more than liability creditors are classified as ..............
a) Fully Secured
b) Partly Secured
c) Preferential
d) Unsecured
18) If realizable value of assets is less than liability creditor is classified as ..............
a) Fully Secured
b) Partly Secured
c) Preferential
d) Unsecured
19) If realizable value of security is nothing (0) the creditors are classified as ...........
a) Fully Secured
b) Partly Secured
c) Preferential
d) Unsecured
20) Which of the following creditors have priority but no security .............?
a) Fully Secured
b) Partly Secured
c) Preferential
d) Unsecured
21) Creditors on personal guarantee is classified as ................
a) Fully Secured
b) Partly Secured
c) Preferential
d) Unsecured
22) Under Insolvency proceeding which of assets & liabilities are considered ...........
a) Only Business Assets – Liabilities
b) Both Business & Personal Assets & Liabilities
c) Only personal Assets & Liabilities
d) None
23) Contingent liabilities are classified as, in statement of affairs under insolvency proceeding
.................
a) Unsecured Creditors
b) Partly Secured Creditors
c) Fully Secured
d) Debtors
24) List “E” of Assets & property in statement of affairs under insolvency proceeding
includes ............
a) All Assets
b) Charged Assets
c) Uncharged Assets
d) None
25) Book debts are classified as, in statement of affairs under insolvency proceeding...............
a) Short Term – Long Term
b) Good -- Doubtful – Bad
c) Secured – Unsecured
d) Other
26) Municipal Tax payable on personal House Property is recorded in statement of
affairs under insolvency proceeding...............
a) List “A”
b) List “B”
c) List “C”
d) List “D”
27) If any assets realized nothing it is recorded in ............
a) List “E”
b) List “F”
c) List “G”
d) No Where
28) Bills of exchange are recorded in statement of affairs is ................
a) List “A”
b) List “E”
c) List “F”
d) List “G”
29) Bills discounted likely to be dishonor are recorded in statement of affairs .............
a) List “A”
b) List “B”
c) List “C”
d) List “D”
30) Preferential creditors are deducted as per contra & transfer to contra side to make
payment ........
a) Prior to unsecured creditors
b) prior to secured creditors
c) Other Reason
d) None
31) The realizable value of revocable gift article is recorded in statement of affairs
under insolvency proceeding .............
a) List “B” – “C”
b) List “D”
c) List “E”
d) List “F”
32) The realizable value of cash is always .........
a) More than Book Value
b) Less than Book Value
c) Equal to Book Value
d) None
33) The realizable value of Good Debts is always .............
a) More than Book Value
b) Equal to Book Value
c) Other
d) None
34) The realizable of doubtful Debts is always .............
a) Book Value
b) Less than Book Value
c) Nil
d) Other
35) The realizable value of Bad Debts is always ..............
a) Book Value
b) More than Book Value
c) Nil
d) Less than Book Value
36) Which of the following item increases deficiency ............?
a) Trading Profit
b) Other Profit
c) Interest on Capital
d) Interest on Drawing
37) Which of the following item decreases deficiency ............?
a) Drawing
b) Interest on Drawing
c) Interest on Capital
d) Trading Loss
38) The effect of surrendered value life policy .....................
a) Decrease in Deficiency
b) Increase in Deficiency
c) Other
d) None
39) For assessing effective utilization of manpower, the system accounting useful is .............
a) Human Resource Accounting
b) Forensic Accounting
c) Environmental Accounting
d) Inflation Accounting
40) Inflation accounting is a system of accounting to deal with ...........
e) Labor Turnover
f) Price Level Changes
g) Environmental Changes
h) Others
41) The deficiency shown by deficiency account will be equal to the deficiency revealed by
a) Liquidator final statement of account
b) Liquidator report
c) Statement of affairs
d) None
42) Insolvent Companies Can Be Liquidated
a) Compulsory
b) Optional
c) Order
d) All the Above
43) The company has to submit the statement of affairs to the official liquidator within
a) 14days
b) 21 days
c) 30 days
d) 45 days
44) The remaining cash of a partnership (after creditors have been paid) upon
liquidation is divided among partners according to them
a) Capital balances
b) Contribution of assets
c) Drawing balances
d) Income Sharing Ratio
45) The final account of banking company is prepared according to provisions of ……….
a) Company A/c
b) Banking Regulation A/c
c) Banking Insolvency A/c
d) Other
46) The revised format of bank final account is given in ...............
a) The Third Schedule
b) In the Sixth Schedule
c) Booklet
d) Other
47) Call is arrears are deducted from ...............
a) Authorized Capital
b) Called-up Capital
c) Paid-up Capital
d) Subscribed Capital
48) Forfeited shares are added in ................
a) Subscribed Capital
b) Issued Capital
c) Called-up Capital
d) Reserve Capital
49) Investment fluctuation reserve is recorded under ................
a) Reserve & Surplus
b) Current Liability
c) Investment
d) Other
50) Every Banking company should transfer the following …. % of annual net
profit to Statutory Reserve
a) 10%
b) 20%
c) 25%
d) None
51) In Bank Final Account Current Deposit balance is recorded as ................
a) Demand Deposit
b) Term Deposit
c) Separately
d) None
52) In Bank Final Account Recurring Deposit is recorded as ...............
a) Demand Deposit
b) Term Deposit
c) Separately
d) None
53) In Bank Final Account Security Deposit from employee is recorded as ...............
a) Deposit
b) Current Liability
c) Other
d) None
54) In Bank Final Account loan form L.I.C. is recorded under ...................
a) Schedule 4 borrowing from other bank
b) Schedule 5 Other Liability
c) Schedule 4 borrowing from other
d) None
55) In Bank Final Account Bills payables means ..............
a) Accepted against B/R
b) Unpaid D.D./M.T./T. T
c) Other
d) None
56) In Bank Final Account Provident Fund is recorded in schedule ................
a) Reserve & Surplus
b) Other Liability
c) Borrowing
d) Other Assets
57) In Bank Final Account branch adjust / inter office Adjust having debit balance in
recorded in ..........
a) Schedule No. 5
b) Schedule No. 11
c) Schedule No. 8
d) Schedule No. 12
58) In Bank Final Account branch adjust / inter office Adjust having credit balance in
recorded in ..........
a) Schedule No. 5
b) Schedule No. 11
c) Schedule No. 8
d) Schedule No. 12
59) In Bank Final Account balance with RBI is recorded in ....................
a) Schedule No. 6
b) Schedule No. 7
c) Schedule No. 8
d) Schedule No. 11
60) In Bank Final Account balance with banks other than RBI is recorded in ....................
a) Schedule No. 6
b) Schedule No. 7
c) Schedule No. 8
d) None
61) In Bank Final Account Gold Bullions are recorded as .................
a) Investment
b) Other Assets
c) Fixed Assets
d) Other
62) In Bank Final Account Silver Bullions are recorded as .................
a) Investment
b) Other Assets
c) Fixed Assets
d) Other
63) In Bank Final Account Investment in shares if shares are partly paid, uncalled amount is
shown as --------
a) Investment
b) Contingent Liability
c) Other
d) None
64) In Bank Final Account Computer System is recorded in schedule of ...............
a) Fixed Assets
b) Other Assets
c) Investments
d) None
65) In Bank Final Account sundry debtors are received in schedule of ...............
a) Fixed Assets
b) Other Assets
c) Investments
d) None
66) In Bank Final Account letter of credit issued is recorded in .............
a) Other Liability
b) Contingent Liability
c) Other Assets
d) Foot None
67) In Bank Final Account Bills for Collection is recorded in ............
a) Other Liability
b) Contingent Liability
c) Foot none
d) Other
68) In Bank Final Account Interest on Advances is recorded in schedule................
a) Income in Sch. 13
b) Expenses in Sch. 15
c) Other
d) None
69) In Bank Final Account Interest on Deposit is recorded in schedule ................
a) Income in Sch. 13
b) Expenses in Sch. 15
c) Other
d) None
70) In Bank Final Account Dividend received is recorded in schedule ...............
a) Operating Expenses Sch. 16
b) Other Income Sch. 14
c) Appropriation of Profit
d) Other
71) In case of Bank Final Account dividend declared / proposed dividend is recorded as
.............
a) Other Income Sch. 14
b) Operating Expenses Sch. 16
c) Appropriation of Profit
d) Other
72) In case of Bank Final Account R.D.D. is recorded under ...............
a) Contingencies & Provision
b) Operating Expenses
c) Other
d) None
73) In Bank Final Account Taxation Provision is adjusted in ....................
a) Contingencies & Provision
b) Operating Expenses
c) Other
d) None
74) Rebate on Bills discounted is .....................
a) Unexpired Discount
b) Income received in Advances
c) Pre-received Income
d) All the Three
75) In Bank Final Account Income Tax paid is recorded as ................
a) Contingencies & Provision
b) Operating Expenses
c) Other Income
d) None
76) In Bank Final Account R.D.D. is deducted secretly from ..............
a) Sundry Debtors
b) Advances
c) Other Assets
d) Other Liability
77) Interest on Doubtful Debts is transfer to .................
a) Internal Earned
b) Interest Suspense A/c
c) Interest Expenditure
d) Other
78) In bank final account taxation provision is adjusted under
a) Sundry creditors
b) Advances
c) Other Assets
d) Other Liability
79) Claims against bank not acknowledge as debt is recorded as
a) Other Liability
b) Contingent Liability
c) Foot none
d) Other
80) What is Royalty?
a) A payment is made use for fixed asset
b) A fixed payment for use of fixed asset
c) A payment paid by owner
d) None of the above
81) Mining of royalty is based on ----
a) Production
b) Sales
c) Purchases
d) None of above
82) Copyright Royalties based on ------
a) Production
b) Sales
c) Purchases
d) None of above
83) Lessor is the -----
a) Owner
b) User
c) a and b both
d) None of above
84) lessee is the ------
a) Owner
b) User
c) a and b both
d) None of above
85) What is minimum rent
a) It is payment for the use of land on the basis of output
b) Payment of use of land which is fixed
c) Payment paid by owner
d) None of above
86) Minimum rent is also called
a) Dead rent
b) Rock rent
c) Fixed rent
d) All of above
87) Short working is equal to ---- less Royalty payable
a) Capital
b) Cash paid
c) Minimum rent
d) None of above
88) Royalty account is ---- account
a) Real account
b) Personal account
c) Nominal account
d) None of above
89) If royalty is less than minimum rent the balance of royalty account at the
end of the year transfer to
a) Capital reserve account
b) Reserve capital account
c) Profit and loss account
d) Minimum rent account
90) Crop are valued at ----
a) Market price
b) Cost price
c) Economic price
d) None of above
91) Grain consumed by live stock will figure --------
a) Crop account
b) Livestock account
c) a and b both
d) None of above
92) Live stock purchase will be figure in -----
a) Balance Sheet
b) Trading account
c) Profit and loss account
d) None of above
93) Final accounts of Farmer can be preparing under
a) Single entry
b) Double entry
c) Both a and b
d) None of above
94) Work done by family of farmer should treated as ---
a) As free work
b) As Labor
c) Both a and b
d) None of above
95) Account of animals of farmer is known as
a) Dead stock
b) Live stock
c) Both a and b
d) None of above
96) Depreciation is not charged on ---
a) Agricultural land
b) Nonagricultural land
c) a and b Both
d) None of above
97) Hire purchase system is governed by ---
a) Hire purchase act 1972
b) Sales of goods act
c) Instalment act
d) None of above
98) Under hire purchase system the agreement can be ------ anytime
a) Renewed
b) Registered
c) Terminated
d) Endorsed
99) When asset is acquiring on hire purchase system the asset account is
Debited with ---- of the asset in the books of the hire purchaser
a) Hire purchase price
b) cash price
c) Instalment price
d) None of above
100) The ownership of goods under hire purchases agreement is transferred at
the time of
a) Payment of down payment
b) Payment of first instalment
c) Full and final payment
d) None of above
