Competitive Exams: Commerce MCQs (Practice-Test 40 of 99)

  1. Match List I with List II and select the correct answer using the codes given below the lists

    List-I (Relevant materials for a Company meeting) List-II (Meaning)
    1. Agenda

    2. Quorum

    3. Adjournment

    4. Proxy

    1. Minimum number of members required to be present

    2. Entitlement to. Vote

    3. Matters to be taken up for decision

    4. A meeting in progress postponed to some other date

    5. Minimum number of directors

    6. Entitlement to participate

    • A
    • B
    • C
    • D
      • 1
      • 6
      • 4
      • 2
      • 3
      • 5
      • 1
      • 2
      • 3
      • 1
      • 4
      • 2
      • 2
      • 1
      • 4
      • 6
  2. Consider the following events

    1. Demand for poll

    2. Chairman's declaration of result of voting by show of hands

    3. Appointment of scrutinizers at poll

    4. Declaration of the result of the poll

    The correct sequence of these events is

    1. 1, 3, 4, 2

    2. 1, 4, 3, 2

    3. 2, 3, 1, 4

    4. 2, 1, 3, 4

  3. An estimate of the assets and liabilities of a firm as on a given date is called

    1. Balance Sheet

    2. Statement of Affairs

    3. Statement of Capital

    4. Income Statement

  4. A provision is a

    1. General Reserve

    2. Specific Reserve

    3. Capital Reserve

    4. Contingency Reserve

  5. A person starts a business with a Capital of Rs. 45, 000. He purchases goods on credit worth Rs. 5, 000. These transactions can be expressed in an Accounting Equation as

    1. Rs. 5, 000 Rs. 50, 000-Rs. 45, 000

    2. Rs. 50, 000 = Rs. 50, 000 + 0

    3. Rs. 50, 000 = Rs. 45, 000 + Rs. 5, 000

    4. Rs. 45, 000 = Rs. 50, 000-Rs. 5, 000

  6. Match List I with List II and select the correct answer using the codes given below the lists:

    List-I (Accounting concept) List-II (Principle involved)
    1. Consistency

    2. Comparability

    3. Conservatism

    4. Disclosure

    1. Losses-are anticipated and accounted for in advance but profits are not accounted for until realized

    2. All the relevant financial information should be summarized and presented in the accounting statements

    3. Accounting procedures in an entity should be followed uniformly from period to period

    4. Accounting statements of different periods of an entity and those of different entities of a period should be based on the same accounting principles, and procedures

    5. Personal judgment of accountants should not influence accounting measurements

    • A
    • B
    • C
    • D
      • 4
      • 3
      • 5
      • 2
      • 3
      • 4
      • 1
      • 2
      • 4
      • 3
      • 1
      • 5
      • 3
      • 4
      • 2
      • 5
  7. Which one of the following should be considered venue expenditure?

    1. Rs. 1, 000 paid for the erection of a new plant

    2. Cost of Rs. 10, 000 incurred in increasing the sitting accommodation of a hotel

    3. Damages paid on account of breach of a contract to supply certain goods

    4. Repairs to machinery purchased secondhand

  8. The written down value of a plant is Rs. 6, 000 (the original value being Rs. 10, 000). It is sold for Rs. 12, 000 during the current financial year. Which one of the following is true in this regard?

    1. Capital Profit = Rs. 6, 000

    2. Revenue Profit = Rs. 6, 000

    3. Capital Profit = Rs. 2, 000 and Revenue Profit = Rs. 4, 000

    4. Capital Profit = Rs. 12, 000

  9. Match List I (Item of expenditure/receipt) with List II (Nature of expenditure/receipt) and select the correct answer using the codes given below the lists:

    List-I List-II
    1. Carriage charges on a new machine purchased for factory

    2. Legal expenses incurred in defending a case of violation of a provision of Factories Act

    3. Grant-in-aid received from the Government for the construction of a building

    4. Amount received for a part of the office building sub-let

    1. Revenue Receipt

    2. Revenue Expenditure

    3. Deferred Revenue Expenditure

    4. Capital Expenditure

    5. Capital Receipt

    • A
    • B
    • C
    • D
      • 2
      • 3
      • 1
      • 5
      • 4
      • 2
      • 5
      • 1
      • 3
      • 4
      • 1
      • 5
      • 4
      • 3
      • 1
      • 5
  10. Advance received from customers is

    1. an item of current liability

    2. an item of non-current asset

    3. an item of contingent liability

    4. an item of non-cash cost

  11. While preparing the Annual Financial Statements, the balance of Prepaid Rent Account should be treated as the balance of a

    1. Personal Account

    2. Nominal Account

    3. Real Account

    4. Deferred Expenditure Account

  12. Consider the following statements: Whale preparing Annual Financial Statements, the balance of Bills Receivable Account can be treated as

    1. an Accrued Income

    2. an item of assets

    3. a ‘Personal Account’ balance Of these statements

    Following of these are correct

    1. 2 and 3 are correct

    2. 1 and 3 are correct

    3. 1 and 2 are correct

    4. none is correct

  13. Final Accounts of a manufacturing company generally include the following types of documents

    1. Balance Sheet

    2. Manufacturing Account

    3. Profit and Loss Account

    4. Trading Account

    5. Profit and Loss Appropriation Account

    The correct sequence in which these documents are prepared

    1. 1, 4, 3, 2, 5

    2. 2, 4, 3, 5, 1

    3. 1, 2, 4, 3, 5

    4. 2, 4, 5, 3, 1

  14. Match List I with List II and select the using the codes given below the lists:

    List-I List-II
    1. Operating Income

    2. Capital Employed

    3. Inventory Turnover

    4. Gross Cash Flow

    1. Cost of goods sold to average stock

    2. Profits before depreciation, interest and taxes

    3. Net Fixed Asset Investment and Net Working Capital

    4. Total Funds invested

    5. Profit before interest and taxes only

    • A
    • B
    • C
    • D
      • 2
      • 3
      • 1
      • 4
      • 4
      • 2
      • 3
      • 1
      • 3
      • 4
      • 1
      • 2
      • 4
      • 3
      • 1
      • 2
  15. A and B are partners sharing profits and losses in the ratio of 2: 5. They admit C on the condition that he will bring goodwill in cash which is distributed between A and B. C's share in future profits or losses is to be one-fourth. The new profit sharing ratio of A, B and C will be

    1. 6: 15: 7

    2. 15: 6: 7

    3. 7: 6: 15

    4. 6: 7: 15