Bihar Board 12th Accountancy Objective Important Questions Part 3 in English

Bihar Board 12th Accountancy Objective Important Questions Part 3 in English

BSEB 12th Accountancy Objective Important Questions Part 3 in English

Question 1.
The minimum subscription as prescribed by SEBI against the entire issue is
(a) 95%
(b) 90%
(c) 5%
(d) None of these
Answer:
(b) 90%

Question 2.
The amount received over and above the par value is credited to which account?
(a) Share Capital A/c
(b) Calls in advance Account
(c) Securities Premium Reserve Account
(d) Share Forfeiture Account
Answer:
(c) Securities Premium Reserve Account

Question 3.
At the time of forfeiture, share Capital Account is debited with :
(a) Face Value
(b) Nominal Value
(c) Paid-up Value
(d) Called-up Value
Answer:
(d) Called-up Value

Question 4.
Debentures are the part of:
(a) Share capital
(b) Loan
(c) Owned capital
(d) Supplier capital
Answer:
(b) Loan

Question 5.
Ordinarily debentures are :
(a) Secured
(b) Partly Secured
(c) Unsecured
(d) None of these
Answer:
(a) Secured

Question 6.
For the company premium on issue of debenture is a :
(a) Capital gain
(b) Profit
(c) Assets
(d) Trading profits
Answer:
(a) Capital gain

Question 7.
In Balance Sheet discount on issue of debenture is shown in :
(a) Liabilities side
(b) Assets side
(c) Outside of Balance sheet
(d) Statement of Profit & Loss
Answer:
(b) Assets side

Question 8.
For the company, discount on issue of debenture is a :
(a) Fictitious asset
(b) Liabilities
(c) Loss
(d) None of these
Answer:
(a) Fictitious asset

Question 9.
For the company, discount on issue of debentures is a :
(a) Capital loss
(b) Revenue loss
(c) Normal loss
(d) Trading loss
Answer:
(a) Capital loss

Question 10.
Premium on redemption of debentures account is a :
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(a) Personal A/c

Question 11.
Profit on cancellation of own debentures are :
(a) Revenue Profit
(b) Capital Profit
(c) Operating Profit
(d) None of these
Answer:
(b) Capital Profit

Question 12.
The term financial statements include :
(a) Profit & Loss A/c
(b) Profit & Loss Acoount-and Balance Sheet
(c) Profit & Loss Appropriation A/c
(d) (a) and (b)
Answer:
(b) Profit & Loss Acoount-and Balance Sheet

Question 13.
Balance Sheet is a :
(a) Statement
(b) Account
(c) Both
(d) None of these
Answer:
(a) Statement

Question 14.
Current Liabilities are to be payable within :
(a) 3 Months
(b) 6 Months
(c) 9 Months
(d) 12 Months
Answer:
(d) 12 Months

Question 15.
The financial statements of a business enterprise include :
(a) Balance Sheet
(b) Statement of Profit & Loss
(c) Cash Flow Statement
(d) All of the above
Answer:
(d) All of the above

Question 16.
Tools of financial analysis are :
(a) Ratio analysis
(b) Trend analysis
(c) Comparative analysis
(d) All the above
Answer:
(d) All the above

Question 17.
Break-Even Points refers to that point where :
(a) Total costs are more than total sales
(b) Total costs are less than total sales
(c) Total costs are half of the total sales
(d) Total costs are equal to total sales
Answer:
(d) Total costs are equal to total sales

Question 18.
The Ideal Acid Test Ratio is:
(a) 1 : 1
(b) 1 : 2
(c) 2 : 1
(d) 2 : 3
Answer:
(a) 1 : 1

Question 19.
Current Ratio is a :
(a) Balance Sheet Ratio
(b) Profit & Loss Ratio
(c) Composite Ratio
(d) None of these
Answer:
(a) Balance Sheet Ratio

Question 20.
Which of the following is not operating expenses?
(a) Advertisement
(b) Salaries
(c) Loss on Sale of car
(d) Distribution
Answer:
(c) Loss on Sale of car

Question 21.
Which of the following is liquid asset?
(a) Debtors
(b) Stock
(c) Building
(d) Land
Answer:
(a) Debtors

Question 22.
Profitability Ratio is generally shown’in :
(a) Percentage
(b) Simple Ratio
(c) Times
(d) Equation
Answer:
(a) Percentage

Question 23.
Stock Turnover Ratio is:
(a) Liquidity Ratio
(b) Profitability Ratio
(c) Activity Ratio
(d) None of these
Answer:
(c) Activity Ratio

Question 24.
Current Liabilities does not include :
(a) Outstanding Expenses
(b) Bills Payable
(c) Sundry Creditors
(d) Debentures
Answer:
(d) Debentures

Question 25.
Cash flow statement is prepared from :
(a) Balance Sheet
(b) Profit & Loss A/c
(c) Additional Informations
(d) All the above
Answer:
(d) All the above

Question 26.
Which of the following is not a cash inflow :
(a) Decrease in Debtors
(b) Issue of shares
(c) Decrease in Creditors
(d) Sale of fixed assets
Answer:
(c) Decrease in Creditors

Question 27.
Which of the following is not a cash out flow :
(a) Increase in creditors
(b) Increase in debtors
(c) Increase in stock
(d) Increase in prepaid expenses
Answer:
(a) Increase in creditors

Question 28.
Increase in the amount of prepaid expenses result in
(a) Decrease in Cash
(b) Increase in Cash
(c) No effect on Cash
(d) None of these
Answer:
(a) Decrease in Cash

Question 29.
Cash Flow Statement according to AS-3 is mandatory to :
(a) All enterprises
(b) Companies listed on a stock exchange
(c) Enterprises having turnover exceeding Rs. 50 Crore
(d) (b) & (c) both
Answer:
(d) (b) & (c) both

Question 30.
Which of the following is not the source of Cash?
(a) Purchase in Fixed Assets
(b) Funds from Operation
(c) Issue of Debentures
(d) Sale of Fixed Assets
Answer:
(a) Purchase in Fixed Assets

Question 31.
Issue of Debentures in cash is a :
(a) Financing activities
(b) Operating activities
(c) Investing activities
(d) None of these
Answer:
(a) Financing activities

Question 32.
Decrease in the amount of prepaid expenses result in :
(a) Source of Cash
(b) Application of Cash
(c) No effect
(d) None of these
Answer:
(a) Source of Cash

Question 33.
Following is added in net profit while calculating cash flow from operating activities:
(a) Increase in stock
(b) Decrease in stock
(c) Increases in debtors
(d) Decrease in creditors
Answer:
(b) Decrease in stock

Question 34.
An example of cash flow from investing activities is :
(a) Issue of Debentures
(b) Repayment of long-term loans
(c) Purchase of raw materials for cash
(d) Sale of Investment by non-financial enterprise
Answer:
(d) Sale of Investment by non-financial enterprise

Question 35.
An analysis of cash flow is useful for which planning?
(a) Short-term
(b) Long-term
(c) Medium term
(d) Very long period
Answer:
(a) Short-term

Question 36.
Cash Equivalents include:
(a) Treasury Bill
(b) Bills receivable
(c) Short-term Bank deposits
(d) All of the above
Answer:
(d) All of the above

Question 37.
Which 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 38.
Cash flow statement is based upon :
(a) Cash basis of accounting
(b) Accrual basis of Accounting
(c) None of these
(d) (a) and (b) Both
Answer:
(a) Cash basis of accounting

Question 39.
Accounting standard-3 related to a :
(a) Cash Flow Statement
(b) Stock
(c) Cash Book
(d) Fixed Assets
Answer:
(a) Cash Flow Statement

Question 40.
Which of the following is not a cash out flow:
(a) Increase in Debtors
(b) Increase in stock
(c) Increase in Creditors
(d) Increase in prepaid expenses
Answer:
(c) Increase in Creditors

Question 41.
Cash sales is a :
(a) Operation activities
(b) Investing activities
(c) Financing activities
(d) None of these
Answer:
(a) Operation activities

Question 42.
While calculating operation profit which will be added to net profit:
(a) Profit on Sale of Asset
(b) Increase in General Reserves
(c) Interest received
(d) Refund of Tax
Answer:
(b) Increase in General Reserves

Question 43.
Which calculating cash flow from operating activities will be deducted?
(a) Decrease in Prepaid Expenses
(b) Increase in Creditors
(c) Increase in Debtors
(d) Decrease in Debtors
Answer:
(c) Increase in Debtors

Question 44.
An example of Cash Flow form Investing Activity is :
(a) Gash Sales
(b) Commission Received
(c) Payment of cash for purchase of fixed assets
(d) Dividend paid
Answer:
(c) Payment of cash for purchase of fixed assets

Question 45.
State whether cash deposited in bank will be classified under which kind of activity?
(a) Cash Flow from Operating Activities
(b) Cash Row from Investing Activities
(c) Cash Flow form Financing Activities
(d) No Cash Flow
Answer:
(d) No Cash Flow

Question 46.
Which of the following item is not considered as Cash Equivalents:
(a) Bank Overdraft
(b) Commercial Paper
(c) Treasury Bills
(d) Investment
Answer:
(d) Investment

Question 47.
On dissolution of a firm, Bank overdraft is transferred to
(a) Cash A/c
(b) Bank A/c
(c) Realisation A/c
(d) Partners Capital A/c
Answer:
(c) Realisation A/c

Question 48.
Debenture holders receives
(a) Dividend
(b) Interest
(c) Profit
(d) None of these
Answer:
(b) Interest

Question 49.
Which of the following is not a part of financial statement of a Company?
(a) P/C Statement
(b) Balance sheet
(c) Ledger A/C
(d) None of these
Answer:
(c) Ledger A/C

Question 50.
Operating Ratio is
(a) Profitability Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) None of these
Answer:
(a) Profitability Ratio

Question 51.
Recording of unrecorded asset on the reconstitution of partnership firm will be –
(a) Again to the existing partner
(b) A loss to the existing partner
(c) Neither a gain nor a loss to the existing partner
(d) None of these
Answer:
(b) A loss to the existing partner

Question 52.
Current Account is
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these
Answer:
(a) Personal Account

Question 53.
In which ratio, the cash brought in for goodwill by the new partner is shared by the existing partners?
(a) Profit Sharing Ratio
(b) Capital Ratio
(c) Sacrificing Ratio
(d) None of these
Answer:
(c) Sacrificing Ratio

Question 54.
A, B and C are three partners sharing profits and losses in the ratio of 4 : 3 : 2 D is admitted for 1/10th share, the new ratio will be
(a) 10 : 7 : 7 : 4
(b) 5 : 3 : 2 : 1
(c) 4 : 3 : 2 : 1
(d) None of these
Answer:
(c) 4 : 3 : 2 : 1

Question 55.
The executors will be paid interest on the amount due from the date of death of the partner @
(a) 4%
(b) 5%
(c) 6%
(d) 7%
Answer:
(c) 6%

Question 56.
Realisation Account is a
(a) Personal Account
(b) Nominal Account
(c) Real Account
(d) None of these
Answer:
(b) Nominal Account

Question 57.
A firm can be voluntarily dissolved by the partners
(a) On Majority basis
(b) On 3/4 Member’s decision
(c) On 1/2 Member’s decision
(d) None of these
Answer:
(a) On Majority basis

Question 58.
Unrecorded liabilities when paid will be shown in
(a) Debit side of Realisation Account
(b) Debit side a Bank Account
(c) Credit side of Realisation Account
(d) Credit side of Bank Account
Answer:
(a) Debit side of Realisation Account

Question 59.
Who are the owners of the company?
(a) Equity shareholders
(b) Preference shareholders
(c) Debenture holders
(d) Both a and b
Answer:
(a) Equity shareholders

Question 60.
Forfeiture of share results in the reduction of
(a) Paid up capital
(b) Authorised capital
(c) Fixed Assets
(d) Reserve capital
Answer:
(b) Authorised capital

Question 61.
Profit on cancellation of own debentures is transferred to
(a) Profit and Loss Account
(b) Profit and Loss Appropriation Account
(c) General Reserve Account
(d) Capital Reserve Account
Answer:
(d) Capital Reserve Account

Question 62.
Interest on Sinking fund Investment is credited to
(a) Profit and Loss Account
(b) Sinking fund Account
(c) General Reserve Account
(d) Sinking fund investment Account
Answer:
(b) Sinking fund Account

Question 63.
Discount on issue of debentures is
(a) Fixed Asset
(b) Current Asset
(c) Real Asset
(d) Factitious Asset
Answer:
(b) Current Asset

Question 64.
In case of issue of debentures as a collateral security for loan from the bank which account will be debited
(a) Bank Account
(b) Bank Loan Account
(c) Debenture Account
(d) Debentures Suspense Account
Answer:
(d) Debentures Suspense Account

Question 65.
According to SEBI guidelines, a company will have to create debenture redemption reserve equivalent to the amount of the following percentage of debenture issued
(a) 40%
(b) 50%
(c) 70%
(d) 100%
Answer:
(b) 50%

Question 66.
As per the provisions of companies Act, 2013 under which section, the final Accounts of a Company is prepared?
(a) 128
(b) 210
(c) 129
(d) 212
Answer:
(c) 129

Question 67.
Out of the following which parties are interested in financial statements?
(a) Managers
(b) Financial Institutions
(c) Creditors
(d) All of these
Answer:
(d) All of these

Question 68.
Debt-Equity Ratio is
(a) Liquidity Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) Operating Ratio
Answer:
(c) Solvency Ratio

Question 69.
When opening stock is Rs. 50,000 closing stock Rs. 60,000 and cost of goods sold is Rs. 2,20,000 then stock Turnover Ratio is
(a) 2 times
(b) 3 times
(c) 4 times
(d) 5 times
Answer:
(c) 4 times

Question 70.
Cash flow statement is related to
(a) AS-3
(b) AS-6
(c) AS-09
(d) AS-12

Question 71.
Which of the following activity comes under Financial Activities?
(a) Receipts from insurance of equity shares
(b) Cash sales
(c) Bank overdraft
(d) Purchase of Debentures
Answer:
(a) Receipts from insurance of equity shares

Question 72.
Which of the following item is not considered as cash equivalents?
(a) Bank overdraft
(b) Commercial paper
(c) Treasury Bills
(d) Investment
Answer:
(d) Investment

Question 73.
Cash from operating activities will decrease due to
(a) Increase in current Assets
(b) Decrease in current liabilities
(c) Neither of the two
(d) Both ‘a’ and ‘b’
Answer:
(d) Both ‘a’ and ‘b’

Question 74.
The term Quick assets do not include
(a) Stock
(b) Debtors
(c) B/R
(d) Cash and bank Balance
Answer:
(a) Stock

Question 75.
Dividends are usually paid on
(a) Authorised capital
(b) Issued capital
(c) Called up capital
(d) Paid up capital
Answer:
(d) Paid up capital

Question 76.
The nominal capital is known as
(a) Authorised Capital
(b) Registered Capital
(c) Both ‘a’ and ‘b’
(d) None of these
Answer:
(c) Both ‘a’ and ‘b’