Competitive Exams: Commerce MCQs (Practice-Test 19 of 99)

  1. Consider the following statements about office auto-motion:

    1. The growth of EDP (electronic data processing) departments and emergence of MIS (management information system) are two independent entities

    2. DSS (decision support system) is accessible only to the computer specialists

    3. Which of the statements given above is/are correct?

      1. 1 only

      2. 2 only

      3. Both 1 and 2

      4. Neither 1 nor 2

  2. A company purchased 8% bonds at a cost of Rs. 12, 00, 000 (Face value Rs. 10, 00, 000) on January 1, 2003. Half yearly interest is payable on this investment on June 30 and December 31 each year. The Company closes its accounts on 31.3. 2003. The amount of accured interest shown in profit and loss account for the year ended is

    1. Rs. 40, 000

    2. Rs. 60, 000

    3. Rs. 20, 000

    4. Rs. 80, 000

  3. Goods worth Rs. 24, 000 were returned by X. The accountant, however, credited the sales returns account by Rs. 42, 000. In order to rectify this error, what should be done?

    1. Debit the sales return account by Rs. 42, 000

    2. Credit the sates return account by Rs. 24, 000

    3. Debit the sales return account by Rs. 66, 000

    4. Debit the sales return account by Rs. 18, 000

  4. A machine with a written down value of Rs. 10, 000 has been sold for Rs. 13, 000. The amount realized is a

    1. Capital receipt and profit involved should be transferred to Capital. Reserve

    2. Revenue receipt

    3. Capital receipt and profit involved should be transferred to General Reserve

    4. Capital receipt and profit involved should be transferred to Profit

    Loss A/c

  5. In case of winding up of a company, in what order does the official liquidator distribute the amounts realized among the following different creditors?

    1. Legal expenses and the cost of liquidation

    2. Debenture holders

    3. Unsecured creditors

    Select the correct answer using the codes given below

    1. 1 − 2 − 3

    2. 3 − 2 − 1

    3. 3 − 1 − 2

    4. 1 − 3 − 2

  6. Rs. 10, 000 spent on the replacement of worn-out parts of an electronic machinery is treated as

    1. Capital expenditure

    2. Revenue expenditure

    3. Deferred revenue expenditure

    4. Capital loss

  7. Preliminary expenses are an example of

    1. Revenue expenditure

    2. Capital expenditure

    3. Deferred revenue expenditure

    4. All of the above

  8. Which of the following is/are capitalized along with the purchase of a fixed asset?

    1. Import duty

    2. Delivery and handling cost

    3. Cash discount

    4. Cost of installation

    Select the correct answer using the codes given below

    1. 3 only

    2. 2 and 3

    3. 1, 2 and 4

    4. 1, 2, 3 and 4

  9. Match List I (Items) with List II (Standards) and select the correct answer using the codes given below:

    List-I List-II
    1. Accounting for fixed assets

    2. Revenue recognition

    3. Depreciation accounting

    4. Cash flow statement

    1. AS-9

    2. AS-10

    3. AS-3

    4. AS-6

    • A
    • B
    • C
    • D
      • 2
      • 3
      • 4
      • 1
      • 4
      • 1
      • 2
      • 3
      • 2
      • 1
      • 4
      • 3
      • 4
      • 3
      • 2
      • 1
  10. Accounting Standard AS-2 provides that inventories should be valued at

    1. Lower of historical cost and net realizable value

    2. Lower of historical cost and market value

    3. Only estimated selling price

    4. All of the above three

  11. ABC Company purchased cassettes during three months as follows The Company sold 1600 cassettes at the rate of Rs. 100 each. What will be the value of closing stock if the cost flow assumption of weighted average method is followed?

    1. Rs. 23, 500

    2. Rs. 35, 200

    3. Rs. 37, 500

    4. Rs. 36, 200

  12. While making an adjustment entry in respect of interest on capital, credit is made to

    1. Capital account

    2. Interest on capital account

    3. Profit & Loss account

    4. Interest account

  13. Given the following data extracted from the book of Abdul Traders: (Rs.) Opening stock: 30, 000 Closing stock: 40, 000 Purchases: 1, 25, 000 Carriage inwards: 2, 000 Carriage outwards: 3, 000 Return outwards: 5, 000 Sales: 1, 50, 000 The cost of goods sold will be

    1. Rs. 1, 30, 000

    2. Rs. 1, 12, 000

    3. Rs. 1, 20, 000

    4. Rs. 1, 15, 000

  14. Consider the following statements: A credit purchase during the accounting year which was not recorded in the books of account but included in the closing stock is to be

    1. added to the credit purchases account

    2. added to the creditors account

    3. subtracted from the closing stock

    4. added to the opening stock

    Which of the statements given above is/are correct?

    1. 3 only

    2. 1 and 2

    3. 2 and 3

    4. 2, 3 and 4

  15. In which of the following ways Secretary of a company can be removed from his office?

    1. By a resolution passed in the meeting of the Board of Directors

    2. By an order of the Registrar of the company

    3. By a resolution passed in the Annual General Meeting

    4. None of the above three