Accounting Multiple Choice Questions Answers

Accounting  Multiple Choice Questions Answers

1. The Doing Business Report" is prepared by which of the following organizations every year?
(A) World Bank (B) Asian Development Bank (ADB)
(C) International Monetary Fund (IMF) (D) World Trade Organization (WTO)
Answer: World Bank

2. Accounting for Intangible Assets are related to–
(A) AS - 10 (B) AS - 12
(C) AS - 24 (D) AS - 26
Answer: AS - 26

3. Indian Accounting Standard – 28 is related to–
(A) Accounting for taxes on income
(B) Financial Reporting of Interests in Joint Venture
(C) Impairment of Assets
(D) Provisions, Contingent Liabilities and Contingent Assets
Answer: Impairment of Assets

4. Recording of capital contributed by the owner as liability ensures the adherence of principle of–
(A) Consistency (B) Going concern
(C) Separate entity (D) Materiality
Answer: Separate entity

5. Bad loans in banking terminology are generally known as–
(A) BPOs (B) Prime Asset
(C) NPAs (D) CBS
Answer: NPAs

6. An association of cement manufacturers is an example of–
(A) Diagonal combination (B) Vertical combination
(C) Horizontal combination (D) Lateral combination
Answer: Horizontal combination

7. The product range is widest in case of–
(A) Chain store (B) Departmental store
(C) Speciality shop (D) One price shop
Answer: Departmental store

8. A public corporation is set up–
(A) By a Special Act of Parliament
(B) By a special order of the Government
(C) Under Indian Companies Act, 1956
(D) By none of the above
Answer: By a Special Act of Parliament

9. The minimum number of members required for registration of a cooperative society are–
(A) Two (B) Seven
(C) Ten (D) Twenty
Answer: Ten

10. Insurable interest must be present at the time of insurance proposal and payment of claims in–
(A) Fire Insurance (B) Marine Insurance
(C) Life Insurance (D) Motor Insurance
Answer: Fire Insurance

11. A machinery is purchased for Rs. 3,00,000 and Rs. 50,000 is spent on its installation. Rs. 5,000 is spent on fuel. What will be the amount of capital expenditure ?
(A) Rs. 3,00,000 (B) Rs. 3,50,000
(C) Rs. 3,55,000 (D) None of these
Answer: Rs. 3,50,000

12. Which of the following errors are not disclosed by Trial Balance ?
(A) Compensatory Errors (B) Errors of Principle
(C) Errors of Omission (D) All the three
Answer: All the three

13. A large amount spent on special advertisement is–
(A) Capital Expenditure (B) Revenue Expenditure
(C) Revenue Loss (D) Deferred Revenue Expenditure
Answer: Deferred Revenue Expenditure

14. Double Entry System was introduced in–
(A) America (B) Japan
(C) India (D) Italy
Answer: Italy

15. According to going concern concept a business entity is assumed to have–
(A) A long life (B) A small life
(C) A very short life (D) A definite life
Answer: A long life

16. Which of the following companies do not have the obligation to get its Articles of Association registered along with the Memorandum of Association ?
(A) Public Company limited by shares
(B) Unlimited companies
(C) Private companies limited by shares
(D) Companies limited by guarantee
Answer: Public Company limited by shares

17. What does management audit imply ?
(A) Complete audit (B) Detailed audit
(C) Efficiency audit (D) Interim audit
Answer: Efficiency audit

18. Which one of the following statements is correct ?
(A) Internal audit and Management audit are the same
(B) Internal audit and statutory audit are the same
(C) Internal audit is compulsory in all cases
(D) Statutory audit of company accounts is compulsory
  Answer:Statutory audit of company accounts is compulsory

19. Where does an auditor of a cooperative society submit the audit report ?
(A) To the managing committee of the society only
(B) To the Registrar of Cooperative Societies of the State concerned only
(C) To the State Assembly concerned
(D) To the Registrar of Cooperative Societies of the State concerned and a copy to the society
Answer: To the Registrar of Cooperative Societies of the State concerned only

20. Which one of the following statements is correct ?
(A) Audit of an educational institution is compulsory if it is run by a charitable trust
(B) A club is treated as a commercial establishment
(C) The accounts of a charitable trust can be audited by any person who belongs to accountancy profession
(D) Audit of a charitable trust is not compulsory under law
Answer: Audit of an educational institution is compulsory if it is run by a charitable trust