Accounting for Business Decisions | Chapter 1 | Part 5 | MBA MCQs | ABD

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1. Interest on drawings is:
   1.   Expenditure for the business
   2.   Cost for the business
   3.   Gain for the business
   4.   None of the above
2. Goods given as samples should be credited to:
   1.   Advertisement account
   2.   Sales account
   3.   Purchase account
   4.   None of the above
3. Outstanding salaries are shown as:
   1.   Added to Salaries while preparing P & La/c
   2.   Shown in liability side of Balance sheet under current Liability
   3.   Both
   4.   None of the above
4. Income tax paid by a sole proprietor on his business income should be:
   1.   Debited to trading account
   2.   Debited to profit and loss account
   3.   Deducted from capital account in the balance sheet
   4.   None of the above
5. All direct & indirect expenses related to business are charged:
   1.   Profit and loss account
   2.   Trading account
   3.   Trading account Profit and Loss account
   4.   Directly to Balance sheet
6. Internal and external parties are the users of ______________.
   1.   Financial Accounting
   2.   Management Accounting
   3.   Human Resource Accounting
   4.   Cost Accounting
7. Capital A/c generally shows ______________ balance.
   1.   Cash
   2.   Debit
   3.   Credit
   4.   Overdraft
8. Asset A/c shows ______________ balance.
   1.   Cash
   2.   Debit
   3.   Credit
   4.   Overdraft
9. There are ______________ columns in Journal.
   1.   Two
   2.   Three
   3.   Four
   4.   Five
10. Explanatory note written below an entry recorded in the Journal is called as ______________.
    1.   Narration
    2.   Explanation
    3.   Brief information
    4.   Detail information
11. According to schedule VI Companies Act which item is not shown on Asset side of Balance sheet
    1.   Investment
    2.   Current Loan & Advances
    3.   Provision
    4.   Lease Holds
12. Trade Payables are recorded in…………….
    1.   Asset side of B/S
    2.   Liability side of B/S
    3.   P & L a/c
    4.   None of the above
13. Investment of X company profit in shares of other company PQR Pvt. ltd are recorded in……………….
    1.   Asset side of Balance Sheet
    2.   Liability side of Balance Sheet
    3.   Profit & Loss a/c
    4.   Not recorded in Balance Sheet
14. Preliminary expenses are recorded in………………..
    1.   Equity and liabilities-Liability side of B/S
    2.   Current liabilities- Liability side of B/S
    3.   Fixed assets- Asset side of B/S
    4.   Asset side of B/S
15. Variable cost per unit
    1.   Remains fixed
    2.   Fluctuates with volume of production
    3.   Varies in consideration with the volume of sales
    4.   None of the above
16. The books to be compulsorily maintained by a company are:
    1.   Cash book and ledger
    2.   Sales and purchase book
    3.   Journal
    4.   All of above
17. Carriage outward is charged to
    1.   Debit side Profit & Loss a/c
    2.   Debit side Trading a/c
    3.   Credit side of Profit & Loss a/c
    4.   Credit side of trading a/c
18. Cash Purchases:
    1.   Increases assets
    2.   Results in no change in the total assets
    3.   Decreases assets
    4.   Increases liability
19. Purchases of goods on credit from A is recorded as:
    1.   Debit purchases a/c; credit cash a/c
    2.   Debit A a/c ;credit purchases a/c
    3.   Debit purchases a/c ; credit A a/c
    4.   Debit A a/c ; credit stock a/c
20. Which of the following is not an example of real a/c:
    1.   Machinery
    2.   Building
    3.   Cash
    4.   Creditor