🧪 MBA MCQ Quiz Hub

1. Which one of the following is not an example of Intangible Assets?
Patents
Trade Marks
Copyright
Land

2. Creating provision against fluctuation in the price of investment is application of accounting concept
Convention of conservatism
Convention of full disclosure
Convention of consistency
None of these

3. Creating provision against fluctuation in the price of investment is application of accounting concept
Convention of conservatism
Convention of full disclosure
Convention of consistency
None of these

4. Debit what come in Credit what goes out rule for
Real a/c
Personal a/c
Nominal a/c
None of these

5. The following comments each relate to the recording of journal entries. Which statement is true?
For any given journal entry, debits must exceed credits.
It is customary to record credits on the left and debits on the right.
The chart of accounts reveals the amount to debit and credit to the affected accounts.
Journalization is the process of converting transactions and events into debit/credit format.

6. Going concern concept assumes
Business as a dissolving concern
Business on relishing values
Business as a going concern
Asset = liability

7. Management Accounting relates to
Recording of accounting data
Recording of cost data
Presentation of account data
None of the above

8. Which items does not come under the balance sheet
sales
Share capital
Reserves and surplus
Unsecured loan

9. Which of the following is not related with Money Measurement Concept ?
All business transaction should be expressed only in money
The transactions which cannot be expressed in money, will not be recorded in accounting books
Business is treated as separate from the proprietor
None of these

10. Depreciation is a charge against
Profit
Assets
Company
Books of A/c

11. Fixed assets and current assets are categorized as per concept of:
Separate entity
Going concern
Consistency
Time period

12. Management accounting is applicable to
Service entities
Manufacturing entities
Non profit entities
All of these

13. Insurance prepaid is shown as
Current assets
Current liabilities
Fixed asset
Fixed liability

14. Financial accounting is concerned with
Recording of business expenses and revenue
Recording of costs of products and services
Recording of day to day business transactions
None of the above

15. Goods given as samples should be credited to:
Advertisement account
Sales account
Purchase account
None of the above

16. Investment of X company profit in shares of other company PQR Pvt. ltd are recorded in
Asset side of Balance Sheet
Liability side of Balance Sheet
Profit & Loss a/c
Not recorded in Balance Sheet

17. Sales made to Mahesh for cash should be debited to
Cash account
Mahesh Account
Sales account
Purchase account

18. Income tax paid by a sole proprietor on his business income should be:
Debited to trading account
Debited to profit and loss account
Deducted from capital account in the balance sheet
None of the above

19. What comes in is to be debited, what goes out is to be credited.
Rules of Personal
Rules of Real
Rules of Nominal
All of these

20. Which of the following is not an example of real a/c:
Machinery
Building
Cash
Creditor

21. Payment received from Debtor
Decreases the Total Assets
Increases the Total Assets
Results in no change in the Total Assets
Increases the Total Liabilities

22. Which of the following is a liability?
Loan from Mr.Y
loan to Mr.y
Both (a) (b)
None of these

23. Purchases of goods on credit from A is recorded as:
Debit purchases a/c; credit cash a/c
Debit A a/c; credit purchases a/c
Debit purchases a/c; credit A a/c
Debit A a/c; credit stock a/c

24. Payment received from debtor:
Decreases the total assets
Increases the total assets
Results in no change in total assets
Increase the total liabilities

25. The transferring of debit and credit items from journal to the respective accounts in the ledger is called as
Ledger
Posting
Forward journal
None of these

26. The following comments all relate to the recording process. Which of these statements is correct?
The general ledger is a chronological record of transactions.
The general ledger is posted from transactions recorded in the general journal.
The trial balance provides the primary source document for recording transactions into the general journal.
Transposition is the transfer of information from the general journal to the general ledger.

27. Cost accounting information can be used for:
Budget control and evaluation.
Determining standard costs and variances.
Pricing and inventory valuation decisions.
All of these

28. Current liability does not include
Sundry creditors
Acceptances
Unclaimed dividend
Short term investment

29. The term Management Accounting was first used in
1910
1939
1950
1960

30. _______ system records only actual cash receipts and payments
Cash basis
Accrual basis
Mercantile basis
Single entry basis

31. Aggregate of direct costs is known as:
Direct material costs
Direct Wages
Direct Expenses
Prime Cost

32. Sunk costs are:
relevant for decision making
Not relevant for decision making
cost to be incurred in future
future costs

33. Information about an item is ______________ if its omission or misstatement might influence the financial decision of the users taken on the basis of that information
Concrete
Complete
Immaterial
Material

34. Proposed dividends" is shown in the Balance Sheet of a company under the head:
Provisions
Reserves and Surplus
Current Liabilities
Other Liabilities

35. Authorized capital, also known as
ominal capital
Paid up capital
Issues capital
None of these

36. Trade Payables are recorded in ______________
Asset side of B/S
Liability side of B/S
P & L a/c
None of the above

37. Cost accounting emerged mainly on account of:
Statutory requirements
Competition in the market
Labour unrest
Limitations of financial accounting

38. Rent paid to landlord should be credited to
Landlords account
Rent account
Cash account
Expense account

39. The primary objective of management accounting is
Prepare final a/c
Provide management complete and true information
Both (a) & (b)
None of these

40. Cost of goods sold= opening stock+ net purchases+ expenses on Purchases – sales Which part of formula is wrong?
opening stock
net purchases
expenses on Purchases
sales

41. Interest on drawings is:
Expenditure for the business
Cost for the business
Gain for the business
None of the above

42. The basic concepts related to p& l a/c are:
Realization Concept
Matching Concept
Cost Concept
Both a and b above

43. All those to whom business owes money are:
Debtors
Investors
Creditors
Shareholders

44. All direct & indirect expenses related to business are charged:
Profit and loss account
Trading account
Trading account Profit and Loss account
Directly to Balance sheet

45. If loan have been guaranteed by managers and directors is called as
Loan
Unsecured Loan
Secured Loan
Advance by Manager & director

46. Opening stock + ____ + Direct Expenses (Carriage on Raw material)-Closing Stock = ____
Sales, Purchases
Sales, Sales return
Purchases, Cost of goods produced
Purchases, Cost of goods sold

47. Carriage outward is charged to
Debit side Profit & Loss a/c
Debit side Trading a/c
Credit side of Profit & Loss a/c
Credit side of trading a/c

48. Credit balance of profit & loss a/c shown on
Asset side of balance sheet
Liability side of balance sheet
Not shown in balance sheet
Half on asset side and half on liability side

49. Outstanding expenses are charged to
Asset side of balance sheet
Liability side of balance sheet
Not charged to balance sheet
None of these

50. Which of the following is a liability?
Loan from Mr.Y
loan to Mr.y
Both (a) (b)
None of these