Bihar Board 12th Accountancy Objective Important Questions Part 2 in English
Bihar Board 12th Accountancy Objective Important Questions Part 2 in English
Question 1.
When realisation expenses are paid by the firm on behalf of a partner such expenses are debited to :
(a) Realisation A/c
(b) Partner’s Capital A/c
(c) Partner’s Loan A/c
(d) None of these
Answer:
(d) None of these
Question 2.
On dissolution of the firm, Partner’s Capital A/c are closed through :
(a) Realisation A/c
(b) Drawing A/c
(c) Bank A/c
(d) Loan A/c
Answer:
(c) Bank A/c
Question 3.
Payment of credit balance of partner’s capital accounts at the time of dissolution of a firm is made to :
(a) Partners
(b)Firm
(c) Wife
(d) None of these
Answer:
(a) Partners
Question 4.
Under the provision of companies Act, a company can issue :
(a) Only Equity Shares
(b) Only Preference Shares
(c) Both
(d) Preference Shares, Equity Shares and Deferred Shares
Answer:
(c) Both
Question 5.
Balance of forfeited shares A/c after re-issue of forfeited shares is transferred to:
(a) P/L A/c
(b) Capital Reserve A/c
(c) General Reserve A/c
(d) None of these
Answer:
(b) Capital Reserve A/c
Question 6.
Equity Shareholders are:
(a) Creditors
(b) Owners
(c) Customers of the company
(d) None of these
Answer:
(b) Owners
Question 7.
Balance of share forfeiture account is shown in the Balance sheet under the item:
(a) Current Liabilities and Provisions
(b) Reserve and Surplus
(c) Share Capital A/c
(d) Unsecured Loans
Answer:
(b) Reserve and Surplus
Question 8.
According to SEBI guidelines, a company will have to create debenture redemption reserve equivalent to the amount of the following percentage of debentures issued :
(a) 40%
(b) 50%
(c) 70%
(d) 100%
Answer:
(b) 50%
Question 9.
Debenture holders are the:
(a) Customers of the company
(b) Owner of the company
(c) Creditor of the company
(d) Manager of the company
Answer:
(c) Creditor of the company
Question 10.
Discount on issue of debentures is :
(a) Fixed Assets
(b) Current Assets
(c) Real Assets
(d) Fictitous Assets
Answer:
(d) Fictitous Assets
Question 11.
Debenture is a:
(a) Loan Certificate
(b) Cash Certificate
(c) Credit Certificate
(d) None of these
Answer:
(a) Loan Certificate
Question 12.
Financial statements are:
(a) Anticipated facts
(b) REcorded facts
(c) Estionated facts
(d) None of these
Answer:
(b) REcorded facts
Question 13.
Comperative statements are also known as :
(a) Dynamic Analysis
(b) Horizontal Analysis
(c) Vertical Analysis
(d) External Analysis
Answer:
(b) Horizontal Analysis
Question 14.
Common-size statement are also known as :
(a) Dynamic Analysis
(b) Horizontal Analysis
(c) Vertical Analysis
(d) External Analysis
Answer:
(c) Vertical Analysis
Question 15.
Operating Ratio is:
(a) Profitability Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) None of these
Answer:
(a) Profitability Ratio
Question 16.
Stock-turnover ratio comes under:
(a) Liquidity Ratio
(b) Profitability Ratio
(c) Activity Ratio
(d) None of these
Answer:
(c) Activity Ratio
Question 17.
The ideal current ratio is :
(a) 2 : 1
(b) 1 : 2
(c) 3 : 2
(d) 3 : 4
Answer:
(a) 2 : 1
Question 18.
The ideal liquid ratio is :
(a) 2 : 1
(b) 1 : 1
(c) 0.5 : 1
(d) 1 : 5
Answer:
(b) 1 : 1
Question 19.
When Cash is Rs. 10,000, Stock is Rs. 25,000, B/R is Rs. 5,000, Creditors is Rs. 22,000 and Bank Overdraft is Rs. 8,000, the current ratio is:
(a) 2 : 1
(b) 4 : 3
(c) 3 : 4
(d) 1 : 2
Answer:
(b) 4 : 3
Question 20.
The two basic measures of liquidity are :
(a) Inventory Turnover and Current Ratio
(b) Current Ratio and Liquid Ratio
(c) Current Ratio and Average Collection Period
(d) Current Ratio and Debtor’s Turnover Ratio
Answer:
(b) Current Ratio and Liquid Ratio
Question 21.
Which of the following items is not taken into consideration while computing current ratio:
(a) Creditors
(b) Debtors
(c) Furniture
(d) Bank Overdraft
Answer:
(c) Furniture
Question 22.
The term ‘current assets’ does not include :
(a) Stock
(b) Debtors
(c) Car
(d) All of these
Answer:
(c) Car
Question 23.
Cash flow statement is based upon :
(a) Accrual Basis of Accounting
(b) Cash Basis of Accounting
(c) Both
(d) None of these
Answer:
(b) Cash Basis of Accounting
Question 24.
Cash flow statement is prepared from :
(a) Additional Information
(b) P/L A/c
(c) Balance Sheet
(d) All of these
Answer:
(d) All of these
Question 25.
Which one of the following is not a non-cash item :
(a) Cash Sales
(b) Goodwill written off
(c) Depreciation
(d) Provision for Bad Debts
Answer:
(a) Cash Sales
Question 26.
Cash flow statement is related to :
(a) As-3
(b) As-6
(c) As-5
(d) As-12
Answer:
(a) As-3
Question 27.
Most transactions in non-trading concerns are :
(a) Cash
(b) Credit
(c) Cash & Credit both
(d) Verbal
Answer:
(a) Cash
Question 28.
When a partner takes responsibility to make the payment of any outside liability of a firm, the account credited will be
(a) Realisation account
(b) Cash Account
(c) Partner’s capital Account
(d) None of these
Answer:
(a) Realisation account
Question 29.
Cash balance shown in the Balance sheet is shown on dissolution of firm in
(a) Realisation Account
(b) Cash Account
(c) Capital Account
(d) Profit and Loss Account
Answer:
(b) Cash Account
Question 30.
‘x’ and ‘y’ share profit in the ratio of 3 : 2. ‘z’ was admitted as a partner who gets 1/5 share, z acquires 3/20 share from ‘x’ and 1/20 from y. The new profit sharing ratio will be
(a) 9 : 7 : 4
(b) 8 : 8 : 4
(c) 6 : 10 : 4
(d) 10 : 6 : 4
Answer:
(a) 9 : 7 : 4
Question 31.
Partner’s current Account is prepared when capital of partners is maintained under
(a) Fluctuating basis
(b) Fixed basis
(c) In both of the situations
(d) None of these
Answer:
(b) Fixed basis
Question 32.
Amount received from the issue of debentures is
(a) Capital receipts
(b) Revenue receipts
(c) Capital and Revenue Receipt
(d) Neither capital nor Revenue
Answer:
(c) Capital and Revenue Receipt
Question 33.
The ideal Quick Ratio is
(a) 2 : 1
(b) 1 : 1
(c) 0.5 : 1
(d) None of these
Answer:
(a) 2 : 1
Question 34.
Goodwill is
(a) Fixed Assets
(b) Intangible Assets
(c) Fictitious Asset
(d) Both a & b
Answer:
(b) Intangible Assets
Question 35.
Provision for Taxation is
(a) Current liability
(b) Interval Reserve
(c) Both ‘a’ & ‘b’
(d) None of these
Answer:
(a) Current liability
Question 36.
Interest payable on debentures is
(a) A charge against profit
(b) Appropriation of profit
(c) Both ‘a’ & ‘b’
(d) None of these
Answer:
(a) A charge against profit
Question 37.
Formula of sacrificing ratio is
(a) New Ratio – old Ratio
(b) Old Ratio – New Ratio
(c) Old Ratio – gaining Ratio
(d) None of these
Answer:
(b) Old Ratio – New Ratio
Question 38.
Subscription received in Advance is
(a) Asset
(b) Liability
(c) Income
(d) None of these
Answer:
(b) Liability
Question 39.
Right shares are the shares which
(a) Are issued to directors of the company
(b) Are issued to existing shareholders of the company
(c) Are issued to promoters in consideration of their services
(d) Are issued to vendors for purchasing assets
Answer:
(b) Are issued to existing shareholders of the company
Question 40.
When current ratio is 2 : 5 and the amount of current liabilities is Rs. 25000. What is the amount of current assets?
(a) Rs. 62,500
(b) Rs. 12,500
(c) Rs. 10,000
(d) None of these
Answer:
(c) Rs. 10,000
Question 41.
Which one of the following is a non-cash item?
(a) Depreciation
(b) Goodwill written off
(c) Both ‘a’ and ‘b’
(d) None of these
Answer:
(a) Depreciation
Question 42.
Receipts and Payments Account is a :
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these
Answer:
(b) Real Account
Question 43.
Income and Expenditure Accounts is a :
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these
Answer:
(c) Nominal Account
Question 44.
Life Membership fees of non-trading concerns is :
(a) Capital Receipts
(b) Revenue Receipts
(c) Both a and b
(d) None of these
Answer:
(a) Capital Receipts
Question 45.
The excess of assets over liabilities in non-trading concerns is termed as:
(a) Capital Fund
(b) Capital
(c) Profit
(d) None of these
Answer:
(a) Capital Fund
Question 46.
For a non-trading concern, honorarium is :
(a) an Income
(b) an asset
(c) an expense
(d) None of these
Answer:
(c) an expense