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How to solve Accounting MCQ
- 1. Answering Multiple Choice Question in Accountancy Dr. Yashodhan M. Mithare Associate Dean Faculty of Commerce & Management Savitribai Phule Pune University
- 3. Features Accountancy MCQ Highly scoring subject Knowledge of basic concepts is a must Knowledge of English is an added advantages Inter - related topics and questions Requires lesser time for preparation Useful for job interviews
- 4. Fundamentals of Accountancy Real Account Debit what comes in; Credit what goes out Personal Account Debit the Receiver; Credit the Giver Nominal Account Debit the Expenses & Losses; Credit the gains & income
- 5. Modern Accounting Approach Modern Accounting Approach Assets Liabilities Capital Expenses Revenue
- 6. Principles of Modern Accounting Assets Debit Credit Liabilities Debit Credit Capital Debit Credit Expenses Debit Credit Revenue Debit Credit
- 7. The Golden rules All assets have debit balance All liabilities have credit balance All expenses have debit balance All incomes have credit balance
- 8. Particulars Opening Balance Closing Balance Assets Debit Credit Liabilities Credit Debit Expenses Debit Credit Incomes Credit Debit The Golden rules
- 9. Trading / Profit & Loss A/c Debit Side Expenses Trading / Profit & Loss A/c Credit Side Income Balance Sheet Liability Side Credit Balances Balance Sheet Asset Side Debit Balances The Golden rules
- 10. Opening balance of Branch Petty Cash is recorded on ----- side of Petty Cash Account A. Debit B. Credit C. Assets D. Liabilities
- 11. Cash paid to creditors is recorded on ----- side of Creditors Account A. Debit B. Credit C. Assets D. Liabilities
- 12. Closing balance of Branch stock is recorded on ---- - side of Branch Stock Account A. Debit B. Credit C. Assets D. Liabilities
- 13. Credit Balance of Profit & Loss Account indicates -- A. Profit B. Loss C. Capital D. Goodwill
- 14. Insurance Premium is recorded on – side of Profit & Loss Account A. Debit B. Credit C. Asset D. Liability
- 15. Sales Returns are recorded on ----- side of Sundry Debtors account A. Debit B. Credit C. Asset D. Liability
- 16. How to prepare for MCQ based Examination
- 18. • Read the syllabus thoroughly • Understand the topics • Refer to the notes given by your teachers • Solve the problems repeatedly • Fragment the solutions • Neglect balancing and playing with statistics Getting Started ….
- 19. Understanding terms & Definitions • Keep watch on every new term / definition • Make a separate notebook for ‘Glossary’ • Write the meaning of the terms in your language • Understand effects of the terms
- 20. ‘Revenue from Operations’ refers to ---- A. Purchases B. Sales C. Medical expenses D. Other Expenses
- 21. ‘Stock Reserve’ means ---- A. Stock kept for emergency B. Profit included in stock items C. Opening Stock D. Closing Stock
- 22. ‘Average Clause’ prevents the possibility of ---- A. Over Insurance B. Under Insurance C. Fire D. Stock Salvaged
- 23. ‘Bullion’ means ---- A. Valuation of stock B. Gold or silver C. Branch Adjustment D. R.D.D.
- 24. The term ‘NEFT’ stands for ---- A. National Electronic Finance Transfer B. Notional Electronic Fund Transfer C. National Emergency Fund Transfer D. National Electronic Fund Transfer
- 25. ‘Interim Dividend’ is declared by ---- A. Shareholders B. Promoters C. Managing Director D. Board of Directors
- 26. Tips for better performance Read entire question properly. do not look at the options immediately. Try to recollect the correct answer. Look at the options only when you have an answer in your mind. Try to choose the correct option or the one in proximity.
- 27. Search for Core part of the question A Farmer’s Cooperative society has a share capital of 10,000 shares of Rs. 10 each. Out of these, 8000 shares are issued by the society and subscribed by the members. Mr. Avinash has 500 shares of the society. How many votes can he cast during the annual meeting? A. 1000 B. 100 C. 10 D. 1
- 28. Search for Core part of the question A Farmer’s Cooperative society has a share capital of 10,000 shares of Rs. 10 each. Out of these, 8000 shares are issued by the society and subscribed by the members. Mr. Avinash has 500 shares of the society. How many votes can he cast during the annual meeting? A. 1000 B. 100 C. 10 D. 1
- 29. Modify the question if required The difference between the amount of stock at the beginning of the financial year and the stock at the end of the financial year is known as ---- A. Opening Stock B. Closing Stock C. Inventory D. Change in inventory
- 30. Modify the question if required The difference between the amount of stock at the beginning of the financial year and the stock at the end of the financial year is known as ---- A. Opening Stock B. Closing Stock C. Inventory D. Change in inventory Opening Stock Closing Stock
- 31. If you do not know the correct answer, try to eliminate the wrong answers from the options.
- 32. Which of the following provides facility of ‘Any Branch Banking’? A. IMPS B. NEFT C. RTGS D. CORE
- 33. The longest response is often the correct one
- 34. In company final accounts, Salary paid in advance is recorded under the heading---- A. Trade Receivable B. Inventories C. Other Income D. Short Term Loans and Advances
- 35. When the question contains the word ‘NOT’, remove the word and read the question again.
- 36. Which of the following is a not ‘Current Liability’? A. Creditors B. Bills Payable C. Bank overdraft D. Claims not acknowledged as debt
- 37. Which of the following is a ‘Current Liability’? A. Creditors B. Bills Payable C. Bank overdraft D. Claims not acknowledged as debt
- 38. Which of the following is not categorized under ‘Employee Benefit Expenses’? A. Salary B. Wages C. Medical Allowance to staff D. Repairs to delivery van
- 39. ‘All of the above’ and ‘None of the above’ 55% C
- 40. Which of the following is an ‘Intangible Asset’? A. Goodwill B. Copyright C. Newspaper Masthead D. All of the above
- 41. ‘When two options seem to be correct, the possibility of the later one to be correct’ 78%
- 42. ‘Profit Prior to Incorporation’ can be used to ----- A. Raise Goodwill B. Pay Salary C. Transfer to General Reserve D. Write off Goodwill
- 43. ----- Account is prepared to ascertain the value of stock on the date of fire. A. Trading account B. Profit & Loss Account C. Profit & Loss Appropriation account D. Memorandum Trading account
- 44. 60% Impact of knowledge of Basic Concepts or fundamentals
- 45. ‘Investment Account’ is ---- type of account. A. Revenue B. Personal C. Nominal D. Real
- 46. Stem, Verbal Association & Clues
- 47. Closing Stock is recorded under the heading ----- A. Fixed Assets B. Investments C. Loans and advances D. Inventory
- 48. Profit earned by a company before incorporation is known as --- A. Gross Profit B. Net Profit C. Pre - Incorporation Profit D. Post – Incorporation Profit
- 49. There is a debit balance on the office expenses at the end of the financial year. In which section of the balance sheet this will be recorded? A. Capital B. Current Assets C. Current Liabilities D. Fixed assets
- 50. What from the following is NOT a non- current asset? A. Capital B. Inventory C. Cash D. Trade Receivable
- 51. The long term assets that have no physical existence are known as ---- A. Current Assets B. Fixed Assets C. Intangible Assets D. Bullion
- 52. Goodwill is an ------- asset. A. Tangible B. Intangible C. Fictitious D. Current
- 53. Corelate Concepts • Standing Charges
- 54. Funny ways to study seriously
- 55. Balance Sheet of a Bank Capital C Can Reserve & Surplus R Ramu Deposits D Driver Borrowings B Buy Other Liabilities O Oranges