Bihar Board 12th Accountancy Objective Important Questions Part 2 in English

Bihar Board 12th Accountancy Objective Important Questions Part 2 in English

BSEB 12th Accountancy Objective Important Questions Part 2 in English

Question 1.
Entrance fees, unless otherwise stated, is treated as :
(a) a capital receipt
(b) a revenue income
(c) a liability
(d) an asset
Answer:
(b) a revenue income

Question 2.
Legacies should be treated as :
(a) a liability
(b) a revenue receipt
(c) a capital receipt
(d) None of these
Answer:
(c) a capital receipt

Question 3.
Property received as a result of the will of the deceased person is called:
(a) Legacy
(b) Honorarium
(c) Donation
(d) Subscription
Answer:
(c) Donation

Question 4.
Life membership fees received by a club is shown in :
(a) Income-expenditure A/c
(b) Balance Sheet
(c) Receipts & Payments A/c
(d) None of these
Answer:
(b) Balance Sheet

Question 5.
All receipts of capital nature are shown in :
(a) Income Expenditure A/c
(b) Balance Sheet
(c) Receipts & Payments A/c
(d) Trading A/c
Answer:
(b) Balance Sheet

Question 6.
Payment of honorarium to Secretary is treated as :
(a) Capital Expenditure
(b) Revenue Expenditure
(c) Cash Expenses
(d) None of these
Answer:
(b) Revenue Expenditure

Question 7.
Donation received for specific purpose is :
(a) Asset
(b) Revenue Receipts
(c) Capital Receipts
(d) None of these
Answer:
(c) Capital Receipts

Question 8.
Outstanding subscription is a :
(a) Income
(b) Asset
(c) Liability
(d) Expenses
Answer:
(b) Asset

Question 9.
Income and Expenditure Account is prepared by :
(a) Not-for-profit organisation
(b) Business entity
(c) Industrial entity
(d) Industry
Answer:
(a) Not-for-profit organisation

Question 10.
Which of the following is not-for-profit organisation ?
(a) College
(b) Public Company
(c) Hospital
(d) Library
Answer:
(b) Public Company

Question 11.
Excess of expenditure over income is known as :
(a) Profit
(b) Loss
(c) Deficit
(d) Surplus
Answer:
(c) Deficit

Question 12.
Income & Expenditure Account records transactions of:
(a) Revenue nature only
(b) Capital Nature only
(c) Both revenue and capital nature
(d) None of these
Answer:
(a) Revenue nature only

Question 13.
Which of the following represent capital receipt:
(a) Donation
(b) Life Membership Subscription
(c) Subscription
(d) Interest of Investments
Answer:
(b) Life Membership Subscription

Question 14.
Interest on loan is given in absence of partnership deed :
(a) 6%
(b) 8%
(c) 9%
(d) 12%
Answer:
(a) 6%

Question 15.
Maximum number of partnership firm performing banking business is:
(a) 20
(b) 15
(c) 10
(d) None of these
Answer:
(c) 10

Question 16.
Liability of a partner ¡s:
(a) Limited
(b) Unlimited
(c) Limited to Capital
(d) None of these
Answer:
(b) Unlimited

Question 17.
Sacrificing Ratio:
(a) New Ratio – Old Ratio
(b) Old Ratio – New Ratio
(c) Old Ratio – Gaining Ratio
(d) Gaining Ratio – Old Ratio
Answer:
(b) Old Ratio – New Ratio

Question 18.
Revaluation Account or Profit & Loss Adjustment Account is a:
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these
Answer:
(c) Nominal Account

Question 19.
The amount of goodwill is paid by new partner:
(a) for the payment of capital
(b) for sharing of profit
(c) for purchase of assets
(d) for business
Answer:
(b) for sharing of profit

Question 20.
Share of goodwill brought in cash by the new partner is called :
(a) Asset
(b) Profit
(c) Premium
(d) Gain
Answer:
(c) Premium

Question 21.
For effecting changes in the values of assets and liabilities, we open :
(a) Profit & Loss Appropriation
(b) Revaluation A/c
(c) Profit & Loss A/c
(d) Trading A/c
Answer:
(b) Revaluation A/c

Question 22.
Decrease in the value of fixed assets is termed as :
(a) depreciation
(b) loss
(c) profit
(d) expense
Answer:
(a) depreciation

Question 23.
Decrease in the liabilities is :
(a) Profit
(b) Loss
(c) Gain
(d) Expense
Answer:
(c) Gain

Question 24.
Profit or Loss on revaluation is borne by
(a) Old Partners
(b) New Partners
(c) All Partners
(d) Shareholders
Answer:
(a) Old Partners

Question 25.
On dissolution of a firm, loan account is transferred to :
(a) Partners Capital Account
(b) Realisation Account
(c) Partners Current Account
(d) None of these
Answer:
(d) None of these

Question 26.
When realisation expenses are paid by the firm on behalf of a partner, such expenses are debited to :
(a) Partners Capital Account
(b) Realisation Account
(c) Partners Loan Account
(d) None of these
Answer:
(b) Realisation Account

Question 27.
If the time of firms dissolution, the accumulated profit and general reserve are transferred to :
(a) Partners Capital Account
(b) Realisation Account
(c) Bank Account
(d) None of these
Answer:
(a) Partners Capital Account

Question 28.
Out of sale proceeds received from the sale of sundry assets first of all payment will be made :
(a) Creditors Liabilities
(b) Partner’s Loan
(c) Partner’s Capital
(d) None of these
Answer:
(a) Creditors Liabilities

Question 29.
Realisafion Account is a:
(a) Personal Account
(b) Nominal Account
(c) Real Account
(d) None of these
Answer:
(b) Nominal Account

Question 30.
At the time of dissolution of firm, an amount realized from an unrecorded assets is credited to :
(a) Chsh Account
(b) Realisation Account
(c) Partners Capital Account
(d) None of these
Answer:
(b) Realisation Account

Question 31.
At the time of dissolution of firm, provision of bad and doubtful debts is transferred to :
(a) Realisation Account
(b) Debtors Account
(c) Bad debts Account
(d) None of these
Answer:
(a) Realisation Account

Question 32.
In case of dissolution of firm, Goodwill Account is transferred to :
(a) Partners Capital Account
(b) Cash Account
(c) Realisation Account
(d) None of these
Answer:
(c) Realisation Account

Question 33.
Profit/Loss on realisation Account is shared by the partners :
(a) Profit sharing ratio
(b) Capital ratio
(c) Equally
(d) None of these
Answer:
(a) Profit sharing ratio

Question 34.
Which of the following will be paid first out of sale proceeds of assets?
(a) Trade Liabilities
(b) Capital
(c) Partner’s Loan
(d) None of these
Answer:
(a) Trade Liabilities

Question 35.
Insolvency of a partners leads to which type of dissolution?
(a) Compulsory dissolution
(b) Dissolution by incidence
(c) Dissolution by court
(d) None of these
Answer:
(a) Compulsory dissolution

Question 36.
Expenses on dissolution of a firm is called :
(a) Realisation Expenses
(b) Legal Expenses
(c) Loss expenses
(d) None of these
Answer:
(a) Realisation Expenses

Question 37.
A firm can be voluntarily dissolved by the partners :
(a) On majority basis
(b) 3/4 members decision
(c) On 1/3 members decision
(d) None of these
Answer:
(a) On majority basis

Question 38.
Payment of credit balance of Partners Capital Accounts at the time of dissolution of a firm made to:
(a) Partners
(b) Firm
(c) Wife
(d) None of these
Answer:
(a) Partners

Question 39.
Amount realised from sale of assets is recorded in :
(a) Debit side of Realisation A/c
(b) Credit side of Realisation A/c
(c) Liabilities side of Balance Sheet
(d) Assets side of Balance Sheet
Answer:
(b) Credit side of Realisation A/c

Question 40.
On dissolution of a firm, realisation account is debited with:
(a) All assets to be realised
(b) All outside liabilities of the firm
(c) Cash received on sale of assets
(d) None of these
Answer:
(a) All assets to be realised

Question 41.
At the time of dissolution of partnership firm, fictitious assets are transferred to:
(a) Capital Account
(b) Realisation Account
(c) Cash Account
(d) Profit & Loss Account
Answer:
(a) Capital Account

Question 42.
Interest on calls in arrears is charged according to ‘Table A’ at:
(a) 5%
(b) 6%
(c) 8%
(d) 11%
Answer:
(a) 5%

Question 43.
The actual amount of share capital is :
(a) Authorised Capital
(b) Issued Capital
(c) Subscribed Capital
(d) Paid up Capital
Answer:
(d) Paid up Capital

Question 44.
Reserve Capital means :
(a) The part of subscribed uncalled capital
(b) Accumulated Profits
(c) The part of Capital Reserve
(d) The part of Capital Redemption Reserve
Answer:
(a) The part of subscribed uncalled capital

Question 45.
Maximum limit of premium on shares is :
(a) 10%
(b) 20%
(c) 5%
(d) No limit
Answer:
(d) No limit

Question 46.
A new company can not issue its shares at?
(a) at Par
(b) at Discount
(c) at Premium
(d) None of these
Answer:
(b) at Discount

Question 47.
Amount received from the issue of debentures is
(a) Capital receipts
(b) Revenue receipts
(c) Capital and Revenue Receipt
(d) Neither capital nor Revenue
Answer:
(c) Capital and Revenue Receipt

Question 48.
The ideal Quick Ratio is
(a) 2 : 1
(b) 1 : 1
(c) 0.5 : 1
(d) None of these
Answer:
(a) 2 : 1

Question 49.
Goodwill is
(a) Fixed Assets
(b) Intangible Assets
(c) Fictitious Asset
(d) Both a & b
Answer:
(b) Intangible Assets

Question 50.
Provision for Taxation is
(a) Current liability
(b) Interval Reserve
(c) Both ‘a’ & ‘b’
(d) None of these
Answer:
(a) Current liability

Question 51.
Interest payable on debentures is
(a) A charge against profit
(b) Appropriation of profit
(c) Both ‘a’ & ‘b’
(d) None of these
Answer:
(a) A charge against profit

Question 52.
Formula of sacrificing ratio is
(a) New Ratio – old Ratio
(b) Old Ratio – New Ratio
(c) Old Ratio – gaining Ratio
(d) None of these
Answer:
(b) Old Ratio – New Ratio

Question 53.
Subscription received in Advance is
(a) Asset
(b) Liability
(c) Income
(d) None of these
Answer:
(b) Liability

Question 54.
Right shares are the shares which
(a) Are issued to directors of the company
(b) Are issued to existing shareholders of the company
(c) Are issued to promoters in consideration of their services
(d) Are issued to vendors for purchasing assets
Answer:
(b) Are issued to existing shareholders of the company

Question 55.
When current ratio is 2 : 5 and the amount of current liabilities is Rs. 25000. What is the amount of current assets?
(a) Rs. 62,500
(b) Rs. 12,500
(c) Rs. 10,000
(d) None of these
Answer:
(c) Rs. 10,000

Question 56.
Which one of the following is a non-cash item?
(a) Depreciation
(b) Goodwill written off
(c) Both ‘a’ and ‘b’
(d) None of these
Answer:
(a) Depreciation

Question 57.
Receipts and Payments Account is a :
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these
Answer:
(b) Real Account

Question 58.
Income and Expenditure Accounts is a :
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these
Answer:
(c) Nominal Account

Question 59.
Life Membership fees of non-trading concerns is :
(a) Capital Receipts
(b) Revenue Receipts
(c) Both a and b
(d) None of these
Answer:
(a) Capital Receipts

Question 60.
The excess of assets over liabilities in non-trading concerns is termed as:
(a) Capital Fund
(b) Capital
(c) Profit
(d) None of these
Answer:
(a) Capital Fund

Question 61.
For a non-trading concern, honorarium is :
(a) an Income
(b) an asset
(c) an expense
(d) None of these
Answer:
(c) an expense

Question 62.
Which of the following is considered as Cash Equivalents :
(a) Bank Overdraft
(b) Debtors
(c) Short Term Investment
(d) Bills of Exchange
Answer:
(a) Bank Overdraft

Question 63.
Operating Ratio comes under :
(a) Profitability Ratio
(b) Activity Ratio
(c) Financial Position Ratio
(d) Leverage Ratio
Answer:
(a) Profitability Ratio

Question 64.
On death of a partners the deceased partners capital account will be credited with :
(a) her/his share of goodwill
(b) Goodwill of the firms
(c) Share of goodwill of remaining partners
(d) none of these
Answer:
(a) her/his share of goodwill

Question 65.
In the event of death of a partner, accumulated profits and losses are shared in:
(a) Old profit sharing ratio
(b) New profit sharing ratio
(c) Capital ratio
(d) none of these
Answer:
(a) Old profit sharing ratio

Question 66.
X, Y and Z share profits in the ratio of 1/2, 1/3 and 1/6. Z dies. New ratios of X and Y will be :
(a) 3 : 2
(b) 2 : 3
(c) 12 : 1
(d) 10 : 11
Answer:
(a) 3 : 2

Question 67.
In the absence of any agreement, the profits and losses of the firm are shared
(a) Equally
(b) In capital ratio
(c) On different proportions
(d) None of these
Answer:
(a) Equally

Question 68.
Partner’s current accounts are opened when their capital is
(a) fixed
(b) fluctuating
(c) Both
(d) None of these
Answer:
(a) fixed

Question 69.
The current account of the partners 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 70.
Share of goodwill brought in cash by the new partner is called
(a) Asset
(b) Profit
(c) Premium
(d) Loss
Answer:
(c) Premium

Question 71.
Profit or loss on revaluation is borne by
(a) Old partners
(b) New partners
(c) All partners
(d) None of the above
Answer:
(a) Old partners

Question 72.
In the absence of any agreement the profits and losses of the firm one shared
(a) Equally
(b) In Capital Ratio
(c) In different propertions
(d) None of these
Answer:
(a) Equally

Question 73.
Increase in the value of assets on reconstruction of the partnership firm results into
(a) Gain to the existing partners
(b) Loss to the existing partners
(c) Neither gain nor loss to the existing partners
(d) None of these
Answer:
(a) Gain to the existing partners

Question 74.
Profit or loss on revalutation is borne by
(a) Old partners
(b) New partners
(c) All partners
(d) None of these
Answer:
(a) Old partners

Question 75.
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