Accountancy and Book Keeping MCQs

Accountancy and Statistics

Accountancy and Book Keeping MCQs

Practice the latest Accountancy MCQs with answers and detailed explanations. Explore chapter-wise multiple-choice questions covering important accounting concepts, bookkeeping, financial statements, journal entries, ledger, trial balance, depreciation, ratio analysis, partnership accounts, company accounts, and more. Perfect for Class 11 & 12, B.Com, CA Foundation, CUET, Banking, SSC, JKSSB, JKPSC and competitive exams.

1861
Total Questions

Practice Questions

Page 49 of 94
Question #961
The term 'FIFO' stands for:
A. First In, First Out
B. Final In, First Out
C. Fixed In, Fixed Out
D. First In, First Over
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
FIFO is an inventory valuation method where the cost of the earliest goods purchased is assigned to the cost of goods sold first.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #962
Which of the following is a direct expense?
A. Advertising
B. Office salaries
C. Carriage inwards
D. Factory rent
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Carriage inwards is a direct expense because it is directly attributable to the purchase of goods and bringing them to the place of business.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #963
In partnership, the guarantee of profit to a partner is given by:
A. The auditor
B. The other partners
C. The firm
D. The government
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
A guarantee of minimum profit to a partner is given by the other partners or the firm as a whole, and any deficiency is borne by the guarantor(s).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #964
Which of the following is NOT a method of calculating depreciation?
A. Straight Line Method
B. Sum of the Years' Digits Method
C. Diminishing Balance Method
D. LIFO Method
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
LIFO (Last In, First Out) is an inventory valuation method, not a method for calculating depreciation.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #965
The primary purpose of a cash book is to:
A. Prepare the balance sheet
B. Record all cash receipts and payments
C. Record credit transactions
D. Calculate profit
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
A cash book serves as both a book of original entry and a ledger account, specifically for recording all cash receipts and payments.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #966
Which of the following is a current liability?
A. Debentures
B. Goodwill
C. Sundry Creditors
D. Mortgage Loan
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Sundry Creditors are amounts owed to suppliers for goods purchased on credit, which are typically due within one year, making them a current liability.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #967
In the context of taxation, TDS stands for:
A. Total Deducted Source
B. Total Direct Source
C. Tax Deducted at Source
D. Tax Direct System
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
TDS stands for Tax Deducted at Source, a mechanism where tax is collected at the very source of income generation.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #968
The term 'Virement' in budgetary control refers to:
A. Cutting the budget
B. Increasing the total budget
C. Shifting funds from one budget head to another
D. Auditing the budget
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Virement is the process of transferring funds from one budget head to another to meet unforeseen expenses without increasing the total budget.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #969
Which of the following is NOT a type of audit report?
A. Unqualified Report
B. Qualified Report
C. Adverse Report
D. Profitable Report
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Audit reports can be unqualified (clean), qualified, adverse, or a disclaimer of opinion. There is no such thing as a 'Profitable Report'.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #970
In financial management, the 'Time Value of Money' concept implies that:
A. Money has no value over time
B. Money today is worth more than the same money in the future
C. Inflation does not affect money
D. Money today is worth less than money tomorrow
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
The time value of money states that a sum of money is worth more now than the same sum will be at a future date due to its earning capacity.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #971
Which of the following is a feature of a joint venture?
A. It has perpetual succession
B. It is formed for a specific, short-term project
C. It is governed by the Companies Act
D. It has a separate legal entity
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
A joint venture is a temporary partnership formed for a specific venture or project, and it ceases to exist once the project is completed.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #972
The term 'Revaluation Account' is prepared during:
A. Dissolution of a firm
B. Insolvency of a partner
C. Admission of a new partner
D. Death of a partner
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
A Revaluation Account is prepared to record the changes in the values of assets and liabilities at the time of admission, retirement, or death of a partner.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #973
Which of the following is NOT a component of the cost of production?
A. Office and administration overheads
B. Factory overheads
C. Direct materials
D. Selling and distribution overheads
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Cost of production includes prime cost, factory overheads, and office/admin overheads. Selling and distribution overheads are added to arrive at the Cost of Sales, not Cost of Production.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #974
In the context of PFMS, what is the role of the 'Controller General of Accounts' (CGA)?
A. To regulate banks
B. To maintain the accounts of the Union Government
C. To audit state governments
D. To collect taxes
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
The CGA is the principal accounts adviser to the Government of India and is responsible for maintaining the accounts of the Union Government.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #975
Which of the following is an example of a contingent liability?
A. Outstanding salaries
B. Sundry Creditors
C. Bills Receivable discounted
D. Bills Payable
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Bills receivable discounted is a contingent liability because the firm is only liable to pay the bank if the drawee fails to pay the bill on maturity.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #976
The term 'Matching Concept' requires that:
A. Assets must match liabilities
B. Debits must match credits
C. Expenses must be matched with the revenues they help to generate
D. Income must match expenditure
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
The matching concept dictates that expenses incurred in a period must be recognized in the same period as the revenues they helped to generate.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #977
Which of the following is NOT a method of preparing a cash flow statement?
A. Both A and B are methods
B. Indirect Method
C. Direct Method
D. FIFO Method
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Cash flow statements can be prepared using the Direct or Indirect method. FIFO is an inventory valuation method, not a cash flow statement method.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #978
In partnership, the 'Goodwill' of the firm represents:
A. The physical assets of the firm
B. The reputation and brand value of the firm
C. The liabilities of the firm
D. The cash balance of the firm
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Goodwill is an intangible asset that represents the value of the firm's reputation, customer attraction, and brand name.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #979
Which of the following is a feature of the Indian Financial System?
A. It does not include capital markets
B. It only includes commercial banks
C. It consists of both organized and unorganized sectors
D. It is entirely unregulated
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
The Indian Financial System comprises both the organized sector (RBI, banks, stock exchanges) and the unorganized sector (moneylenders, indigenous bankers).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #980
The term 'Accrued Income' refers to:
A. Income received in advance
B. Income from non-business sources
C. Income earned but not yet received
D. Income that is not taxable
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Accrued income is income that has been earned during the accounting period but has not yet been received in cash.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

More Accountancy and Statistics Topics

Statistics MCQs
Today's Top Topics
Accountancy and Book Keeping 1861 Statistics 1318
Explore Subjects
Geography GK 6121 Static General Knowledge 6362 Maths 5575 Economy GK 2220 English 15164
Practice Mix
Select the most appropriate meaning of the idiom: 'A queer fish'.
x86-64 is also known as:
My eyes are tired because I ___ on the computer for hours.
He stands ___ the door.
Which railway system is designed exclusively for urban mass rapid transport?