AFB Mock Test 100 MCQ SET-01

Welcome to your AFB 100 MCQ SET-01

Name
Email
1. The series of fixed payments paid or received by a persons at specified frequency over a fixed period of time are called
2. Which of the following formula for calculation of compounded interest is not matched
3. A person invests some money in bonds on which interest would be received by him on half-yearly basis at the end of each 6th month. Such payment can be said to be
4. To ensure that a company is following the Accounting Standards in India, is the duty of which of the following
5. A firm has been changing its depreciation policy after every 2-3 years. It is violating, which of the following concept
6. Which of the following is not correct in connection with a bond
7. A 8% bond with a face value of Rs.10000 is quoted in the market at Rs.8000. What is the current yield on the bond
8. Which of the following statements is correct statemens
9. If a firm receives advance against purchase of goods from a customer, it does not take this to income or sale, due to which of the following concept
10. The depreciation method in which the depreciation is calculated on the principle that the asset loses an equal amount of value every year
11. Which of the following event/transaction shall not be recorded in the accounting books of a company
12. A machinery is purchased for Rs.4 lac. Its rate of annual depreciation is 20% under written down value method. Its depreciated value at te end of 2nd year would be
13. When the accounting standards are not followed by a business (a) the auditors qualify their audit reports (b) if auditors d do not qualify their audit reports they are guilty of professional misconduct (c) the management is held responsible
14. Which of the following is not matched in terms classification various assets
15. The accounting equation-“Assets=capital+ liability” is due to application of which of the following accounting concept
16. A no. of notes are appended to the balance sheet by companies which include information such as contingent liabilities, market value of investments etc. This is due to compliance of which of the following accounting concepts
17. The principal of conservatism in accounting concepts stands for
18. A firm records the income and expenditure when it is actually received and incurred. The firm is following which of the following accounting system
19. Complete the following accounting equation (assets Rs.110000-liabilities Rs.______ = capital Rs.80000
20. Which of the following are not properly matched in terms of classification of accounts
21. The preparation of trial balance and final accounts with a view to ascertain the profit or loss made during a particular period and the financial position of the business on a particular date is called
22. Which of the features of the journal and ledger given as under is not correct
23. Nominal accounts relate to (a) incomes (b) expenses (c) assets (d) liabilities
24. The journal entries are posted in the ledger
25. Which of the following accounts is called valuation account or contra account (a) provision for depreciation account (b) provision for doubtful debts account (c) stock reserve account (d) reserves and surpluses account
26. A double columnar cash book has two columns on each side (which one is false)
27. In a business firm, the chief cashier hands over some cash to the petty cashier who submits the account of petty cash after a fixed time interval. This system is called (which is most appropriate)
28. Which of the following matches
29. When there is one debit and several credits equal the debit amount OR there is one credit and several debits to match the amount of credit, this is called
30. (a) when goods are purchased, the ‘purchases account’ is used (b) when goods are sold, the ‘sales account’ is used (c) when goods are returned by the customers of the firm, the ‘returns outward’ is used (d) when the goods are returned by the firm to its suppliers, the ‘purchases returns’ is used. Which is correct
31. Returns of goods from the customers of the firm should be credited to ________ and debited to ______
32. An entry on the left side of a nominal account represents
33. Which of the following is true
34. Process of transfer of an entry from the journal to ledger is called
35. If cash is deposited in the bank, in a three column cash book, it will be recorded on
36. Cash which is not due as income of the business is not credited to income under ________ system and cash received whether due or not is taken as income of the business under _______ system
37. A firm charges depreciation of Rs.10000 for the first two years on as assets. In the 3rd year it charges Rs.5000 and in the 4th year Rs.8500. This is considered undesirable because of application of
38. While recording a transaction, when is not clear whether it is on cash basis or on credit basis, what would be done
39. A cash book is of different types such as (a) simple cash book (b) double column cash book (c) there column cash book
40. Bank paid some interest to the party. Firm deposited one cheque with the bank. The entry in respect of these two would be made first by ____ and ____ respectively
41. The bank pass book shows a balance of Rs.30000. its comparison with the cash book shows that bank has debited a sum of Rs.100 as incidental charges and a cheque of Rs.2000 issued by the firm has not been paid by the bank so far. The balance as per cash book is Rs.______.
42. The comparison between bank pass book and cash book shows that bank debited a cheque of Rs.3000 to firm’s account while the cheque related to some other firm’s account. A cheque of rs.2000 deposited with the bank has not been credited so far. The balance in firm’s overdraft account as per cash book is Rs.40000. The balance in the pass book would be Rs._______.
43. (a) Credit balance of the pass book means it is a deposit account (b) credit balance of the cash book means it is and overdraft account (c) debit balance of the pass book means it is an overdraft account (d) debit balance of the cash book means it is an overdraft account
44. When balance in the cash book is the starting point, the cheque deposited and not credited by the bank are_______.
45. ________ is the statements showing debit and credit balance taken from ledger including cash and bank balances as on a particular date
46. Posting of correct amount has been made but on the wrong side. This is an error of _____.
47. Name which of the following errors are not error of commission
48. One sided error has been located before preparing the trial balance, it can be rectified by
49. A firm finds that during the last month of the year an amount of Rs.3500 received as cash from XYZ has been posted as Rs.5300 to their account. The entry will be rectified
50. At the end of each financial year all accounts of _____and_____ are transferred to trading and profit & loss account, called closing entries
51. An expenditure which helps in generating revenue for more than one year is called ______ expenditure and an expenditure which generates the revenue in the same year is called _____ expenditure
52. Which of the following expenses is not a deferred revenue expenditure
53. A firm has purchased few items at different prices of Rs.50, Rs.60, Rs.70, Rs.80 and Rs.90. what is the rate of valuation of the goods as per average cost method
54. A company came out with a public issue of 2 lac shares of rs.10 each payable as application money @ Rs.3 and allotment money @ Rs.3. Final call amount has also been called which has not been received on 4000 shares. What would be amount of calls in arrears
55. Which of the following parties in a bill of exchange do match
56. X draws a bill of exchange on Y for Rs.5000 payable 60 days after date of the bill. He discounts the bill with his bank and pays discount of rs.50. what will be the journal entry
57. Which of the following statements is not true
58. If closing balance appears on the debit side of an account, it is said to have a _________
59. A company came out with a public issue of 2 lac shares of Rs.10 each payable as application money @ Rs.3 and allotment money @ Rs.3. Final call amount has also been called which has not been received on 400 shares. In this problem, what would be the amount that would be credited to capital reserve after forfeiture
60. While making the positing, the staff of a firm credited the personal account of the partner instead of the account of the firm. This would be called
61. After allotment of shares by a company when the allotment money is made due, it is debited to which of the following accounts
62. The provisions regarding issues of shares at a discount are contained as per
63. The closing stock given in the trial balance is transferred to which of the following accounts
64. A firm paid cartage of Rs.200 an account of transportation of newly purchased machinery to the cartage account. The error in the problem, would be called
65. While posting the transaction, the Accounts clerk of a firm posted an entry of Rs.9957 to an account as Rs.9597. This will be known as
66. if a company decides to forfeit the party paid share, the amount will be debited to which of the following
67. if there is loss to the goods, which of the following statements is correct in case of hire purchase and instalment sale
68. A firm purchase old machinery for Rs.3 lac and incurs Rs.500 on its transportation , Rs.4500 on installation and Rs.15000 on its repair. Its expected useful life is estimated for 5 years and scrap value Rs.20000. In this problem, what will be the WDV at the end of 3rd year
69. A firm purchases old machinery for Rs.3 lac and incurs Rs.500 on its transportation, Rs.4500 on instalment ans Rs.15000 on its repair. Its expected useful life estimated for 5 years and scrap value Rs.20000. What is the estimated for 5 years and scrap value Rs.20000. what is the amount that would be taken for calculation of amount of depreciation
70. A firm purchase old machinery for Rs.3 lac and incurs Rs.500 on its transportation, Rs.4500 on installation and Rs.15000 on its repair. Its expected life is estimated for 5 years and scrap value Rs.20000. what will be amount of annual depreciation on SLM basis
71. The balance as per cash book of a firm is Rs.60000 and it is observed that bank has not credited the amount of Rs.5000 deposited as cash. Bank has credited Rs.30 as commission refund. What is the balance as per pass book
72. What is the amount of commission that the sales manager would get @ 10% of net profits after charging such commission, if the net profits are Rs.2.20 lac
73. If the machinery is sold for Rs.150000 at the end of 3rd year, what will be the profit or loss on sale of this machine
74. The pass book of the firm has been showing debit balance of Rs.75000. it is observed that the bank has not debited a cheque of Rs.1000 issued by the firm and has debited Rs.300 on account of interest. What is the balance as per cash book
75. The bank account pass book of XYZ has been showing a balance of Rs.30200. One of the debtors of the firm has deposited Rs.3000 directly in the account of the firm which bank has credited to the account of the firm which bank has credited to the account of one of the partners. What is the balance as per cash book
76. Depreciation is the result of (a) wear and tear due to use (b) fall in market price (c) obsolescence (d) passage of time
77. An asset is purchased for Rs.4 lac on 1.10.2012 and its rate of depreciation is 10% at diminishing value. Its amount of depreciation during the year and written down value at March 31,2015 would be
78. A bills payable account is ______ account and bills receivable account is ________ account
79. A computer and its related equipment us purchased for Rs.50000 with 3 years’ expected useful life and Rs.2000 as salvage value. On this, depreciation is charged on sum- of- the year’s digit method Amount of depreciation in the first year would be
80. The depreciation is calculated on the basis of (original cost / depreciated value) in case of (straight line method / written down value method). Which of the following does ,match
81. The promoter brings capital of Rs.10000 out of which he purchases furniture worth Rs.2000. The balance sheet of the firm will show
82. Which of the following error will be disclosed by the trial balance
83. In the sharing ration of respective parties, which is not correctly matched
84. Which of the following accounts will definitely shoe debit balance
85. A company came out with a public issue of 1 lac shares of Rs.10 each payable Rs.4 as application Money, Rs.4 as allotment money and rs.2 as 1st and final call. The company has received applications for 2 lac shares. If the company decides to forfeit the partly paid shares, the amount that will be transferred to capital reserve account would be
86. A company came out with a public issue of 1 lac shares of Rs.10 each payable Rs.4 as application money, Rs.4 as allotment money and Rs.2 as 1st and final call. The company has received applications for 2 lac shares. How much amount would be credited to the share capital account
87. Which of the following account in the books of a form, will not record credit balance
88. Which of the following are advantage of accounting in a computerized environment
89. Banks prepare their balance sheet as per provisions of Section _____ of Banking regulation Act in the format laid down by RBI as per Form ______.
90. As per rule 15 of Banking Regulating (Companies) Rules. Banks have to publish their balance sheet and profit and loss account in ______ newspaper/s within _____ months from end of the period to which they relate
91. Which of the following can be treated as indirect expenses
92. Which of the following items in a bank balance sheet is not placed under ‘other assets’”
93. Which of the following statements regarding bank deposit is not correct
94. In bank balance in Schedule 9, the advances are shown in the following heads (a) bills discounted and purchased (b) cash credit, overdrafts and loans payable on demand (c) term loans (d) other loans
95. If a company issues share at a premium , the amount of premium is credited to which of the following accounts
96. A company has issued certain shares giving an option to shareholders that in case there is no profit in a particular year, the dividend for that year shall be paid, in future , when the company has adequate profit. Such share is called
97. When the application money is received from the shareholders, the next instalment due is called ______ due. Which account is debited in that situation to credit to share capital account
98. When a company receives some amount as calls in advance. It (can/could) pay interest which can be maximum _______.
99. Shares issued by a company to its staff for consideration other than cash are called
100. Which among the following is not part of fixed assets in case of balance sheet of a company

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hot Topics

Related Articles