Business Administration Paper – 2002 Solved MCQs Competitive Exams Set 2

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Q12: Which of the following statement is not true?

(a) Planning that proves inaccurate is a waste of management time

(b) Planning can eliminate change

(c) Planning reduces flexibility

(d) None of these

Answer: (c)

Q13: Which of the following sources of power is dependent on authority?

(a) Legitimate power

(b) Coercive power

(c) Expert power

(d) Referent power

(e) None of the above

Answer: (a)

Q14: Deciding whether to record a sale when order for services is received or when the services are performed is an example of a

(a) Classification issue

(b) Recognition issue

(c) Valuation issue

(d) None of these

Answer: (b)

Q15: Payment for a two year insurance policy (in advance) is debit to

(a) Unexpired insurance

(b) Cash

(c) Insurance expense

(d) Expired insurance

Answer: (c)

Q16: Which of the following is an important reason for studying accounting?

(a) Accounting information is useful in making economic decisions

(b) Accounting plays an important role in society

(c) The study of accounting can lead to a challenging career

(d) None of the above

Answer: (a)

Q17: If a company has liability of 19,000 and owner՚s equity of 57,000 its assets are

(a) 38,000

(b) 57,000

(c) 76,000

(d) 19,000

Answer: (c)

Q18: Transactions are initially recorded in the

(a) Books of Final Entry

(b) Books of original entry

(c) T accounts

(d) Accounting equation

Answer: (c)

Q19: The term Hybrid Security is used for

(a) Common Stock

(b) Defferred Stock

(c) Preferred Stock

(d) None of the above

Answer: (c)