Business Studies MCQ Quiz Hub

1. Indirect expenses is also called____________.
prime cost.
common expenses.
direct expenses.
management expenses.

2. under branch account debtors system cash sales is shown in the _____________.
debit
credit
asset
none

3. Expenses which cannot be apportioned to department must be shown in the _____.
balance sheet.
trading account.
P & L account.
P & L Appropriation account.

4. When goods are transferred from one department to other department they are called __________.
inter-departmental transfers.
outer-departmental transfers.
not a transfer.
regular transfer.

5. When goods are transferred from one department to other the department transferring the goods should be ___________.
debited.
credited.
added.
subtracted

6. When goods are transferred from one department to other the department transferring the goods should be credited and department receiving the goods should be _________.
debited.
credited.
added.
subtracted

7. In departmental accounts expenses like director fees interest is transferred to ______.
balance sheet.
trading account.
general P & L account.
P & L Appropriation account.

8. The departmental accounting enables a business firm to maximize _________.
profit.
losses.
cash.
assets .

9. Branch which does not maintain its own set of books is ______________.
dependent branch.
independent branch.
foreign branch.
local branch .

10. The business policies and the administration of a branch are wholly controlled by the head office the type of branch is __________.
dependent branch.
independent branch.
foreign branch.
local branch .

11. A branch set up merely for booking orders which are executed by head office is ____.
dependent branch.
independent branch.
local branch .
foreign branch.

12. Branches not keeping full system of accounting are ________.
independent branch.
dependent branch.
local branch .
foreign branch.

13. All branch expenses such as rent salary are paid by the head office in case of _____.
independent branch.
local branch .
local branch .
dependent branch.

14. Dependent branch make _______.
only cash sales.
only credit sales.
cash and credit sales.
installment sales.

15. Under stock and debtors system the head office opens _________.
branch adjustment account.
branch debtors account.
. branch creditors account .
branch cash account.

16. Which of the following is to be recorded in an income and expenditure account?
Purchase of a fixed asset
Capital expenditure incurred on a fixed asset
Profit on the sale of a fixed asset
Sale of a fixed asset

17. Under branch accounts debtors system the depreciation of an asset is _______.
show in debtors account.
shown in debit side of branch account.
not shown in branch account .
shown in credit side of branch account.

18. Under branch accounts debtors system opening balance of assets are recorded in ____.
credit side.
debit side.
first credit and debit side.
first debit and credit side.

19. Under branch accounts debtors system closing balance of assets are recorded in ________.
credit side.
debit side.
first credit and debit side.
first debit and credit side.

20. Under branch accounts debtors system opening balance of liabilities are recorded in ___________.
first credit and debit side.
first debit and credit side.
credit side.
debit side.

21. Under branch accounts debtors system closing balance of liabilities are recorded in _________.
first credit and debit side.
first debit and credit side.
credit side.
debit side.

22. Under branch accounts debtors system goods sent to branch account is recorded in _________.
debit side.
credit side.
asset side .
liabilities side.

23. Under branch accounts debtors system goods sent to branch account is recorded in _________.
debit side.
credit side.
asset side .
liabilities side.

24. Under branch accounts debtors system loading on goods sent to branch adjusted in ________.
debit side.
credit side.
asset side .
liabilities side.

25. Under branch accounts debtors system bad debts discount allowed to debtors is ________.
shown in debit side.
shown in credit side.
shown in asset side .
not shown.

26. Under branch accounts debtors system credit sales is _______.
shown in debit side.
shown in credit side.
shown in asset side .
not shown.

27. The difference between goods sent by head office and received by the branch is known as ___________.
goods in transit.
goods in godown.
goods in production.
goods in warehouse.

28. Under stock and debtors system of branch account branch adjustment account is opened when goods sent to branch is at ________.
cost price.
invoice price.
market price.
normal price.

29. Under stock and debtors system of branch account the account prepared to record all the transactions relating to branch debtors is recorded in ________.
branch expenses account.
branch adjustment account.
branch debtors account.
branch creditors account.

30. In pure single entry which account is recorded?
Personal.
Real.
Nominal.
Asset.

31. All personal real and nominal accounts are opened in ________.
single entry system.
double entry system.
accrual system.
mercantile system.

32. Only personal account and cash account are opened in ________.
single entry system.
double entry system.
accrual system.
mercantile system.

33. Trial balance can be prepared in _________.
single entry system.
double entry system.
accrual system.
mercantile system.

34. Honorarium is a kind of remuneration paid to a person who is not the employee of a non-profit organization. Which of the following statements is true about the honorarium payment?
�Its a revenue expenditure
�Its a Capital expenditure
It is not recorded in the books of accounts
None of the above

35. Which of the following is the accounting equation for a non-profit organization?
Asset = Capital + Liabilities
Capital + Liabilities = Assets
Accumulated fund + Liabilities = Assets
Liabilities = Asset + Accumulated fund

36. Balance sheet cannot be prepared ________.
in single entry system.
in double entry system.
with the help of cash book.
with the help of bank account.

37. In single entry system net worth method is also called ________.
double entry system .
mercantile system.
statement of affairs method.
accrual system.

38. Difference between net worth at the beginning of the year and at the end of the year represents _________.
capital balance.
cash balance.
pass book balance.
profit or loss.

39. Opening capital can be found by preparing ________.
cash book.
bank account.
statement of affairs.
statement of bank pass book.

40. A statement of affairs is just like a _________.
balance sheet.
profit and loss account.
cash account.
trading account.

41. In statement of affairs assets are shown on the __________.
right hand side.
left hand side.
right hand side top.
right hand side bottom.

42. In statement of affairs liabilities are shown on the __________.
right hand side.
left hand side.
right hand side top.
right hand side bottom.

43. Under single entry system closing capital can be found by preparing a statement of affairs ____________.
at the end of the year.
at the beginning of the year.
at the end of every month.
at the end of every quarter.

44. Under single entry system opening capital can be found by preparing a statement of affairs ____________.
at the end of the year.
at the beginning of the year.
at the end of every month.
at the end of every quarter.

45. Under single entry system in net worth method drawings is added with _______.
opening capital.
closing capital.
additional capital.
drawings.

46. Under single entry system in net worth method additional capital is deducted with __________.
opening capital.
closing capital.
additional capital.
drawings.

47. Under single entry system in net worth method opening capital is subtracted from _________.
opening capital.
closing capital.
additional capital.
drawings.

48. Under single entry system in conversion method a total debtors account is prepared to find out ___________.
credit sales.
cash sales.
credit purchases.
cash purchases.

49. Under single entry system in conversion method a total debtors account is prepared to find out __________.
credit sales.
cash sales.
credit purchases.
cash purchases.

50. Subscription received but not yet earned is considered as an ____________.
Asset
Liability
Income
Expenditure

51. Total creditors account is prepared to find out ___________.
credit sales.
cash sales.
credit purchases.
cash purchases.