Bihar Board 12th Accountancy Objective Important Questions Part 1 in English

Bihar Board 12th Accountancy Objective Important Questions Part 1 in English

BSEB 12th Accountancy Objective Important Questions Part 1 in English

Question 1.
Receipts and Payments Account usually indicates
(a) Surplus
(b) Capital fund
(c) Debit Balance
(d) Credit Balance
Answer:
(c) Debit Balance

Question 2.
Receipts and Payments Account is a
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these
Answer:
(b) Real Account

Question 3.
Outstanding subscription is a
(a) Income
(b) Asset
(c) Both ‘a’ and ‘b’
(d) None of these
Answer:
(c) Both ‘a’ and ‘b’

Question 4.
Income and Expenses related to the prize fund is shown in
(a) Income and Expenditure Account
(b) Asset side of the Balance sheet
(c) Liabilities side of the Balance sheet
(d) Cash Account
Answer:
(a) Income and Expenditure Account

Question 5.
Income and Expenditure Account records
(a) All cash receipts and payments
(b) All credit receipts and payments
(c) All cash and credit receipts and payments
(d) None of these
Answer:
(c) All cash and credit receipts and payments

Question 6.
Which sequence is correct and appropriate?
(a) Cash book, Receipts & Payment Account, Income & Expenditure Account and Balance sheet
(b) Receipts and Payments Account, Cash Book, Income and Expenditure Account and Balance sheet
(c) Income and Expenditure account, Receipts and Payments account, cash book and Balance sheet
(d) None of these
Answer:
(b) Receipts and Payments Account, Cash Book, Income and Expenditure Account and Balance sheet

Question 7.
The main aim of Not-for-Profit organisation is
(a) To earn profit
(b) To serve the society
(c) To earn profit and serve the society
(d) All the above
Answer:
(b) To serve the society

Question 8.
Payment of Honorarium to secretary is a
(a) Revenue Expenditure
(b) Capital Expenditure
(c) Both
(d) None of these
Answer:
(a) Revenue Expenditure

Question 9.
Which of the follow ing st atements is correct?
(a) There is no difference between Cash Book and Receipts and Payments Account
(b) Receipts and Payments Account is prepared after Cashbook
(c) Receipts and Payments Account is maintained by Non-trading concern where as Cash Book is maintained by Trading concern
(d) Receipts and Payment Account is prepared before Cash book
Answer:
(c) Receipts and Payments Account is maintained by Non-trading concern whereas Cash Book is maintained by Trading concern

Question 10.
Logacies should be treated as
(a) A liability
(b) A revenue receipts
(c) An income
(d) None of these
Answer:
(a) A liability

Question 11.
Which of the following is not a net profit organization?
(a) College
(b) Sports club
(c) Maruti Udyog
(d) Hospital
Answer:
(c) Maruti Udyog

Question 12.
In Non-trading concerns excess of income over expenditure is called
(a) Profit
(b) Surplus
(c) Loss
(d) Deficit
Answer:
(b) Surplus

Question 13.
Partnership agreement can be
(a) Oral
(b) Written
(c) Both
(d) None of these
Answer:
(c) Both

Question 14.
Current A/C is
(a) Personal A/C
(b) Read A/C
(c) Nominal A/C
(d) None of these
Answer:
(a) Personal A/C

Question 15.
Legacies should be treated as
(a) A Liability
(b) A Revenue Receipts
(c) Income
(d) None of these
Answer:
(a) A Liability

Question 16.
Life membership fees received by club is shown in :
(a) Income & Expenditure A/c
(b) Balance Sheet
(c) Receipts and Payments A/c
(d) None of these
Answer:
(b) Balance Sheet

Question 17.
For non-trading organisation honorarium is :
(a) A Capital Expenditure
(b) A Revenue Expenditure
(c) An Income
(d) None of these
Answer:
(b) A Revenue Expenditure

Question 18.
Receipts and Payments A/c is a :
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(b) Real A/c

Question 19.
Income and Expenditure A/c is a:
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(c) Nominal A/c

Question 20.
Receipts and Payments A/c usually indicates :
(a) Surplus
(b) Capital Fund
(c) Debit Balance
(d) Credit Balance
Answer:
(c) Debit Balance

Question 21.
The excess of assets over liabilities in non-trading concerns is treated as :
(a) Capital Fund
(b) Capital
(c) Profit
(d) Net Profit
Answer:
(a) Capital Fund

Question 22.
In non-trading concerns excess of income over expenditure is called :
(a) Profit
(b) Surplus
(c) Loss
(d) Deficit
Answer:
(b) Surplus

Question 23.
In the absence of partnership agreement interest on partner’s loan is paid:
(a) 5% p.a.
(b) 6% p.a.
(c) 8% p.a.
(d) 4% p.a.
Answer:
(b) 6% p.a.

Question 24.
The interest on partner’s capital A/c is to be credited to :
(a) P/L A/c
(b) Interest A/c
(c) Partner’s Capital A/c
(d) None of these
Answer:
(c) Partner’s Capital A/c

Question 25.
The interest on partner’s drawing is debited to :
(a) Partner’s Capital A/c
(b) P/L A/c
(c) Drawing A/c
(d) P/L App. A/c
Answer:
(a) Partner’s Capital A/c

Question 26.
For the firm interest on partner’s drawing is a :
(a) Expenses
(b) Income
(c) Loss
(d) None of these
Answer:
(b) Income

Question 27.
Interest payable on the capitals of partners is charged to :
(a) P/L A/c
(b) P/L App. A/c
(c) P/L Adj. A/c
(d) None of these
Answer:
(b) P/L App. A/c

Question 28.
In an ordinary partnership maximum number of partner’s can be :
(a) 10
(b) 20
(c) 50
(d) 30
Answer:
(b) 20

Question 29.
The current A/c of the partner’s will always have :
(a) Debit Balance
(b) Credit Balance
(c) Either of the two
(d) None of these
Answer:
(c) Either of the two

Question 30.
Interest on partner’s capital is calculated on :
(a) Capital in the beginning
(b) Capital at the end
(c) Average Capital
(d) None of these
Answer:
(a) Capital in the beginning

Question 31.
Preparation of partnership deed is :
(a) Compulsory
(b) Voluntary
(c) Partly Compulsory
(d) None of these
Answer:
(b) Voluntary

Question 32.
Increase in the value of assets on reconstitution of the partnership firm results into:
(a) Gain to existing partners
(b) Loss to existing partners
(c) Neither a gain nor a loss to the existing partners
(d) None of these
Answer:
(a) Gain to existing partners

Question 33.
Recording of an unrecorded asset on the reconstitution of partnership firm will be:
(a) A gain to the existing partners
(b) A loss to the existing partners
(c) Neither a gain nor a loss to the existing partners
(d) None of these
Answer:
(a) A gain to the existing partners

Question 34.
Revocation A/c or Profit and Loss Adjustment A/c is a :
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(c) Nominal A/c

Question 35.
Goodwill is :
(a) Tangible Assets
(b) Intangible Assets
(c) Current Assets
(d) None of these
Answer:
(b) Intangible Assets

Question 36.
A, B and C are partners in a firm. D is admitted as a new partner :
(a) Old firm is dissolved
(b) Old firm and old partnership is dissolved
(c) Old partnership is reconstituted
(d) None of these
Answer:
(c) Old partnership is reconstituted

Question 37.
On the admission of a new partners increase in the value of assets is debited to:
(a) Revaluation A/c
(b) Assets A/c
(c) Old Partner’s Capital A/c
(d) None of these
Answer:
(b) Assets A/c

Question 38.
Share of goodwill brought in cash by the new partner is called :
(a) Asset
(b) Profit
(c) Premium
(d) Loss
Answer:
(c) Premium

Question 39.
Recording of an unrecorded liability on the reconstitution of a partnership firm will be:
(a) A gain to the existing partners
(b) A loss to the existing partners
(c) Neither gain nor loss to the existing partners
(d) None of these
Answer:
(b) A loss to the existing partners

Question 40.
In the event of death of a partner, the accumulated profits and losses are shared by partner in their:
(a) Old Profit Sharing Ratio
(b) New Profit Sharing Ratio
(c) Capital Ratio
(d) None of these
Answer:
(a) Old Profit Sharing Ratio

Question 41.
On the death of a partner, the amount of Joint Life Insurance Policy is credited to the Capital A/c’s of :
(a) Only the deceased partner
(b) All partners including the deceased partner
(c) Remaining partners in the new profit sharing ratio
(d) Remaining partners, in their old profit sharing ratio
Answer:
(b) All partners including the deceased partner

Question 42.
The executors will be paid interest on the amount due from the date of death of the partner @ :
(a) 4% p.a.
(b) 5% p.a.
(c) 6% p.a.
(d) 7% p.a.
Answer:
(c) 6% p.a.

Question 43.
On retirement/death of a partner, the retiring/deceased partner’s capital A/c will be credited with :
(a) His/her share of goodwill
(b) Goodwill of the firm
(c) Share of goodwill of remaining partners
(d) None of these
Answer:
(a) His/her share of goodwill

Question 44.
On dissolution of a firm, partner’s loan account is transferred to :
(a) Realisation A/c
(b) Partner’s Capital A/c
(c) Partner’s Current A/c
(d) None of these
Answer:
(d) None of these

Question 45.
When realisation expenses are paid by the firm on behalf of a partner such expenses are debited to :
(a) Realisation A/c
(b) Partner’s Capital A/c
(c) Partner’s Loan A/c
(d) None of these
Answer:
(d) None of these

Question 46.
On dissolution of the firm, Partner’s Capital A/c are closed through :
(a) Realisation A/c
(b) Drawing A/c
(c) Bank A/c
(d) Loan A/c
Answer:
(c) Bank A/c

Question 47.
Payment of credit balance of partner’s capital accounts at the time of dissolution of a firm is made to :
(a) Partners
(b)Firm
(c) Wife
(d) None of these
Answer:
(a) Partners

Question 48.
Under the provision of companies Act, a company can issue :
(a) Only Equity Shares
(b) Only Preference Shares
(c) Both
(d) Preference Shares, Equity Shares and Deferred Shares
Answer:
(c) Both

Question 49.
Balance of forfeited shares A/c after re-issue of forfeited shares is transferred to:
(a) P/L A/c
(b) Capital Reserve A/c
(c) General Reserve A/c
(d) None of these
Answer:
(b) Capital Reserve A/c

Question 50.
Equity Shareholders are:
(a) Creditors
(b) Owners
(c) Customers of the company
(d) None of these
Answer:
(b) Owners

Question 51.
Balance of share forfeiture account is shown in the Balance sheet under the item:
(a) Current Liabilities and Provisions
(b) Reserve and Surplus
(c) Share Capital A/c
(d) Unsecured Loans
Answer:
(b) Reserve and Surplus

Question 52.
According to SEBI guidelines, a company will have to create debenture redemption reserve equivalent to the amount of the following percentage of debentures issued :
(a) 40%
(b) 50%
(c) 70%
(d) 100%
Answer:
(b) 50%

Question 53.
Debenture holders are the:
(a) Customers of the company
(b) Owner of the company
(c) Creditor of the company
(d) Manager of the company
Answer:
(c) Creditor of the company

Question 54.
Discount on issue of debentures is :
(a) Fixed Assets
(b) Current Assets
(c) Real Assets
(d) Fictitous Assets
Answer:
(d) Fictitous Assets

Question 55.
Debenture is a:
(a) Loan Certificate
(b) Cash Certificate
(c) Credit Certificate
(d) None of these
Answer:
(a) Loan Certificate

Question 56.
Financial statements are:
(a) Anticipated facts
(b) REcorded facts
(c) Estionated facts
(d) None of these
Answer:
(b) REcorded facts

Question 57.
Comperative statements are also known as :
(a) Dynamic Analysis
(b) Horizontal Analysis
(c) Vertical Analysis
(d) External Analysis
Answer:
(b) Horizontal Analysis

Question 58.
Common-size statement are also known as :
(a) Dynamic Analysis
(b) Horizontal Analysis
(c) Vertical Analysis
(d) External Analysis
Answer:
(c) Vertical Analysis

Question 59.
Operating Ratio is:
(a) Profitability Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) None of these
Answer:
(a) Profitability Ratio

Question 60.
Stock-turnover ratio comes under:
(a) Liquidity Ratio
(b) Profitability Ratio
(c) Activity Ratio
(d) None of these
Answer:
(c) Activity Ratio

Question 61.
The ideal current ratio is :
(a) 2 : 1
(b) 1 : 2
(c) 3 : 2
(d) 3 : 4
Answer:
(a) 2 : 1

Question 62.
The ideal liquid ratio is :
(a) 2 : 1
(b) 1 : 1
(c) 0.5 : 1
(d) 1 : 5
Answer:
(b) 1 : 1

Question 63.
When Cash is Rs. 10,000, Stock is Rs. 25,000, B/R is Rs. 5,000, Creditors is Rs. 22,000 and Bank Overdraft is Rs. 8,000, the current ratio is:
(a) 2 : 1
(b) 4 : 3
(c) 3 : 4
(d) 1 : 2
Answer:
(b) 4 : 3

Question 64.
The two basic measures of liquidity are :
(a) Inventory Turnover and Current Ratio
(b) Current Ratio and Liquid Ratio
(c) Current Ratio and Average Collection Period
(d) Current Ratio and Debtor’s Turnover Ratio
Answer:
(b) Current Ratio and Liquid Ratio

Question 65.
Which of the following items is not taken into consideration while computing current ratio:
(a) Creditors
(b) Debtors
(c) Furniture
(d) Bank Overdraft
Answer:
(c) Furniture

Question 66.
The term ‘current assets’ does not include :
(a) Stock
(b) Debtors
(c) Car
(d) All of these
Answer:
(c) Car

Question 67.
Cash flow statement is based upon :
(a) Accrual Basis of Accounting
(b) Cash Basis of Accounting
(c) Both
(d) None of these
Answer:
(b) Cash Basis of Accounting

Question 68.
Cash flow statement is prepared from :
(a) Additional Information
(b) P/L A/c
(c) Balance Sheet
(d) All of these
Answer:
(d) All of these

Question 69.
Which one of the following is not a non-cash item :
(a) Cash Sales
(b) Goodwill written off
(c) Depreciation
(d) Provision for Bad Debts
Answer:
(a) Cash Sales

Question 70.
Cash flow statement is related to :
(a) As-3
(b) As-6
(c) As-5
(d) As-12
Answer:
(a) As-3

Question 71.
Most transactions in non-trading concerns are :
(a) Cash
(b) Credit
(c) Cash & Credit both
(d) Verbal
Answer:
(a) Cash

Question 72.
When a partner takes responsibility to make the payment of any outside liability of a firm, the account credited will be
(a) Realisation account
(b) Cash Account
(c) Partner’s capital Account
(d) None of these
Answer:
(a) Realisation account

Question 73.
Cash balance shown in the Balance sheet is shown on dissolution of firm in
(a) Realisation Account
(b) Cash Account
(c) Capital Account
(d) Profit and Loss Account
Answer:
(b) Cash Account

Question 74.
‘x’ and ‘y’ share profit in the ratio of 3 : 2. ‘z’ was admitted as a partner who gets 1/5 share, z acquires 3/20 share from ‘x’ and 1/20 from y. The new profit sharing ratio will be
(a) 9 : 7 : 4
(b) 8 : 8 : 4
(c) 6 : 10 : 4
(d) 10 : 6 : 4
Answer:
(a) 9 : 7 : 4

Question 75.
Partner’s current Account is prepared when capital of partners is maintained under
(a) Fluctuating basis
(b) Fixed basis
(c) In both of the situations
(d) None of these
Answer:
(b) Fixed basis