Bihar Board 12th Accountancy VVI Objective Questions Model Set 5 in English

Bihar Board 12th Accountancy Objective Questions and Answers

Bihar Board 12th Accountancy VVI Objective Questions Model Set 5 in English

Question 1.
Receipts and Payments Account usually indicates:
(A) Surplus
(B) Capital fund
(C) Debit Balance
(D) Credit Balance
Answer:
(C) Debit Balance

Question 2.
Receipts and Payments Account is a :
(A) Personal Account
(B) Real Account
(C) Nominal Account
(D) None of these
Answer:
(B) Real Account

Question 3.
Outstanding subscription is a :
(A) Income
(B) Asset
(C) Both ‘A’ and ‘B’
(D) None of these
Answer:
(B) Asset

Question 4.
Income and Expenses related to the prize fund is shown in:
(A) Income and Expenditure Account
(B) Asset side of the Balance sheet
(C) Liabilities side of the Balance sheet
(D) Cash Account
Answer:
(A) Income and Expenditure Account

Question 5.
Income and Expenditure Account records :
(A) All cash receipts and payments
(B) All credit receipts and payments
(C) All cash and credit receipts and payments
(D) None of these
Answer:
(A) All cash receipts and payments

Question 6.
Which sequence is correct and appropriate ?
(A) Cash book, Receipts & Payment Account, Income & Expenditure Account and Balance sheet.
(B) Receipts and Payments Account, Cash Book, Income and Expenditure Account and Balance sheet
(C) Income and Expenditure account, Receipts and Payments account, cash book and Balance sheet.
(D) None of these
Answer:
(C) Income and Expenditure account, Receipts and Payments account, cash book and Balance sheet.

Question 7.
The main aim of Not-for-Profit organisation is :
(A)To earn profit
(B) To serve the society
(C) To earn profit and serve the society
(D) All the above
Answer:
(B) To serve the society

Question 8.
Payment of Honorarium to Secretary is a :
(A) Revenue Expenditure
(B) Capital Expenditure
(C) Both
(D) None of these
Answer:
(A) Revenue Expenditure

Question 9.
Which of the following statements is correct ?
(A) There is no difference between Cash Book and Receipts and Payments Account
(B) Receipts and Payments Account is prepared after Cash Book
(C) Receipts and Payments Account is maintained by Non-trading concern where as Cash Book is ma.ntained by Trading concern
(D) Receipts and Payment Account is prepared before Cash Book
Answer:
(C) Receipts and Payments Account is maintained by Non-trading concern where as Cash Book is ma.ntained by Trading concern

Question 10.
When time of withdrawals are not mentioned, interest on drawings is charged :
(A) For 6 1/2 months
(B) For 6 months
(C) For 5 1/2 months
(D) For 12 months
Answer:
(B) For 6 months

Question 11.
Recording of unrecorded asset on the reconstitution of a partnership firm will be.
(A) Again to the existing partner
(B) A loss to the existing partner
(C) Neither a gain nor a loss to the existing partner
(D) None of these
Answer:
(B) A loss to the existing partner

Question 12.
Current Account is :
(A) Personal Account
(B) Real Account
(C) Nominal Account
(D) None of these
Answer:
(A) Personal Account

Question 13.
In which ratio, the cash brought in for goodwill by the new partner is shard by the existing partners.
(A) Profit Sharing Ratio
(B) Capital Ratio
(C) Sacrificing Ratio
(D) None of these
Answer:
(C) Sacrificing Ratio

Question 14.
A, B and C are three partners sharing profits and losses in the ratio of 4 :3:2. D is admitted for l/10th share, the new ratio will be :
(A) 10 :7 : 7 : 4
(B) 5 : 3 : 2 : 1
(C) 4 : 3 : 2 : 1
(D) None of these
Answer:
(C) 4 : 3 : 2 : 1

Question 15.
‘ The executors will be paid interest on the amount due from the date of death of the partner @
(A) 4%
(B) 5%
(C) 6%
(D) 7%
Answer:
(C) 6%

Question 16.
Realisation Account is a:
(A) Personal Account
(B) Nominal Account
(C) Real Account
(D) None of these
Answer:
(B) Nominal Account

Question 17.
A firm can be voluntarily dissolved by the partners :
(A) On Majority basis
(B) On 3/4 Member’s decision
(C) On 1/2 Member’s decision
(D) None of these
Answer:
(A) On Majority basis

Question 18.
Unrecorded liabilities when paid will be shown in :
(A) Debit side of Realisation Account
(B) Debit side of Bank Account
(C) Credit side of Realisation Account
(D) Credit side of Bank Account
Answer:
(A) Debit side of Realisation Account

Question 19.
Who are the owners of the company ?
(A) Equity share holders
(B) Preference share holders
(C) Debenture holders
(D) Both A & B
Answer:
(A) Equity share holders

Question 20.
Forfeiture of shares results in the reduction of:
(A) Paid up capital
(B) Authorised capital
(C) Fixed Assets
(D) Reserve capital
Answer:
(A) Paid up capital

Question 21.
Profit on cancellation of own debentures is transferred to:
(A) Profit and Loss Account
(B) Profit and Loss Appropriation Account
(C) General Reserve Account
(D) Capital Reserve Account
Answer:
(D) Capital Reserve Account

Question 22.
Interest on Sinking fund Investment is credited to:
(A) Profit and Loss Account
(B) Sinking fund Account
(C) General Reserve Account
(D) Sinking fund Investment Account
Answer:
(B) Sinking fund Account

Question 23.
Discount on issue of debentures is :
(A) Fixed Asset
(B) Current Asset
(C) Real Asset
(D) Factitious Asset
Answer:
(D) Factitious Asset

Question 24.
In case of issue of debentures as a collateral secuirty for loan from the bank which account will be debited :
(A) Bank Account
(B) Bank Loan Account
(C) Debenture Account
(D) Debentures Suspense Account
Answer:
(C) Debenture Account

Question 25.
According to SEBI guidelines, a company will have to create debenture redemption reserve equivalent to the amount of the following percentage of debenture issued:
(A) 40%
(B) 50%
(C) 70%
(D) 100%
Answer:
(B) 50%

Question 26.
As per the provisions of companies Act, 2013 under which section, the final Accounts of a company is prepared:
(A) 128
(B) 210
(C) 129
(D) 212
Answer:
(B) 210

Question 27.
Out of the following which parties are interested in financial statement ?
(A) Managers
(B) Financial Institutions
(C) Creditors
(D) All of these
Answer:
(D) All of these

Question 28.
Debt-Equity Ratio is:
(A) Liquidity ratio
(B) Activity Ratio
(C) Solvency Ratio
(D) Operating ratio
Answer:
(C) Solvency Ratio

Question 29.
When opening stock is 50,000 Rs closing stock 60,000 Rs and cost of goods sold is 2,20,000 Rs then stock Turnover Ratio is:
(A) 2 times
(B) 3 times
(C) 4 times
(D) 5 times
Answer:
(C) 4 times

Question 30.
Cash flow statement is related to :
(A) AS-3
(B) AS-6
(C) AS-09
(D) AS-12
Answer:
(A) AS-3

Question 31.
Which of the following activity comes under Financial Activities ?
(A) Receipts from issuance of Equity shares
(B) Cash slaes
(C) Bank overdraft
(D) Purchase of Debentures
Answer:
(A) Receipts from issuance of Equity shares

Question 32.
Which of the following item is not considered as cash equivalents ? ,
(A) Bank overdraft
(B) Commercial paper
(C) Treasury Bills
(D) Investment
Answer:
(D) Investment

Question 33.
Cash from operating activities will decrease due to :
(A) Increase in current Assets
(B) Decrease in current liabilities
(C) Neither of the two
(D) Both (A) and (B)
Answer:
(B) Decrease in current liabilities

Question 34.
The term Quick assets do not include :
(A) Stock
(B) Debtors
(C) B/R
(D) Cash and Bank Balance
Answer:
(A) Stock

Question 35.
Dividends are usually paid on :
(A) Authorised capital
(B) Issued capital
(C) Called up capital
(D) Paid up capital
Answer:
(D) Paid up capital

Question 36.
The nominal capital is known as :
(A) Authorised Capital
(B) Registered Capital
(C) Both (A) and (B)
(D) None of these
Answer:
(C) Both (A) and (B)

Question 37.
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:
(C) partner’s capital Account

Question 38.
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 39.
‘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 ‘JC’ 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 40.
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:
(A) Fluctuating basis

Question 41.
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:
(A) Capital receipts

Question 42.
The Ideal Quick Ratio is :
(A) 2:1
(B) 1 : 1
(C) 0.5:1
(D) None of these
Answer:
(B) 1 : 1

Question 43.
Goodwill is:
(A) Fixed Assets
(B) Intangible Assets
(C) Fictitions Assets
(D) Both (A) & B
Answer:
(B) Intangible Assets

Question 44.
Provision for Taxation is:
(A) Current liability
(B) Interval Reserve
(C) Both (A) & (B)
(D) None of these
Answer:
(A) Current liability

Question 45.
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 46.
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 47.
Subscription received in Advance is :
(A) Asset
(B) Liability
(C) Income
(D) None of these
Answer:
(B) Liability

Question 48.
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:
(C) Are issued to promoters in consideration of their services

Question 49.
When current ratio is 2:5 and the amount of current liabilities is 25000 Rs, what is the amount of current assets ?
(A) ₹ 62,500
(B) ₹ 12,500
(C) ₹ 10,000
(D) None of these
Answer:
(B) ₹ 12,500

Question 50.
Which one of the following is a non-cash item ?
(A) Depreciation
(B) Goodwill written off
(C) Both (A) & (B)
(D) None of these
Answer:
(A) Depreciation