Advanced Accounting MCQS
UKPSC Assistant Accountant Exam
Total Marks in this Section: 6 Marks
In this Post You will get Advanced Accounting MCQS for UKPSC Assistant Accountant Exam. This UKPSC Assistant Accountant exam is conducted every year by Uttarakhand Government.
This Exam is conducted into two medium – Hindi Medium and English Medium.
Hindi Medium exam is known as UKPSC Sahayak Accountant Exam and English Medium Exam is know as UKPSC Assistant Accountant Exam.
Question Paper Consists of Two Parts – Section A (Commerce and Management) and Section B – Hindi. Section A Consists of 80 Questions and Section B Consists of 20 Questions.
Advanced Accounting MCQs is the First Part of Section which covers 06 Marks. We preparing UKPSC Assistant Accountant Exam Notes. We keep our posts updated, so visit our webiste frequently.
Choose the correct answer to the following questions from the given alternatives:
1. Royalty accounts is:
(a) Real Account.
(b) Nominal Account.
(c) Personal Account.
(d) None of the above.
Ans: (b) Nominal Account.
2. Short workings is
(a) Excess of minimum rent over the actual royalties
(b) Excess of actual royalties over the minimum rent.
(c) Excess of actual output over the standard output.
(d) Excess of standard output over the actual output.
Ans: (a) Excess of minimum rent over the actual royalties.
3. Surplus is
(a) Excess of minimum rent over the actual royalties.
(b) Excess of actual royalties over the minimum rent.
(c) Excess of actual output over the standard output.
(d) Excess of standard output over the actual output.
Ans: (b) Excess of actual royalties over the minimum rent.
4. When the royalties are less than the minimum rent?
(a) Royalties account is debited with the actual amount of royalties earned.
(b) Royalties account is debited with the minimum rent.
(c) Royalties account is debited with the amount paid to the landlord.
(d) Royalties account is debited with the excess of minimum rent over the actual rent.
Ans: (a) Royalties account is debited with the actual amount of royalties earned.
5. Which of the following statements is false?
(a) Recoupable short workings is a current asset.
(b) Lapsed short workings is a real account.
(c) Short workings is the part of minimum rent not represented by the use of rights.
(d) Short workings is the amount by which the minimum rent exceeds the actual royalty.
Ans: (b) Lapsed short workings is a real account.
6. Which of the following statements is false?
(a) If a lessee leases a part of the leased property to another person, it is called sublease.
(b) In case of partial sub‐lease, lessor will be paid on the basis of the output of the primary lease.
(c) Royalty receivable account is opened in the books of the lessor.
(d) Minimum rent is payable by the lessee even if the royalty amount is less than the minimum rent.
Ans: (c) Royalty receivable account is opened in the books of the lessor.
7. In the books of lessee, short workings recovered amount is debited to
(a) Profit & loss account.
(b) Minimum rent account.
(c) Short workings recoverable account.
(d) Royalty account.
(e) Landlord’s account.
Ans: (a) Profit & loss account.
8. If royalty is less than minimum rent, the balance of royalty account at the end of the year has to be transferred to
(a) Capital reserve account.
(b) Reserve capital account.
(c) Profit & loss account.
(d) Minimum Rent Account.
Ans: (c) Profit & loss account.
9. In case of recoupment of short workings, the lessee:
(a) Debits Short workings Account.
(b) Credits Profit and loss Account.
(c) Credits Short workings Account.
(d) Credits Landlord’s Account.
Ans: (c) Credits Short workings Account.
10. If the short workings amount is not recouped (irrecoverable short workings) due to expiry of the term of recoupment it should be debited to
(a) Minimum rent account.
(b) Landlord account.
(c) Royalty account.
(d) Profit & loss account.
Ans: (d) Profit & loss account.
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11. When royalty is paid, it is debited in the books of lessee to:
(a) Royalty A/c.
(b) P&LA/c.
(c) Landlord A/c.
(d) None of the above.
Ans: (c) Landlord A/c.
12. Short workings mean
(a) Excess of minimum rent over royalty.
(b) Excess of Royalty over minimum rent.
(c) None of the above.
Ans: a) Excess of minimum rent over royalty.
13. Royalties are connected with the following type of business
a) Manufacturing industry.
b) Mining industry.
c) Construction business.
d) None of the above.
Ans: b) Mining industry.
14. Royalty is the agreement between the following persons
a) Seller and buyer.
b) Banker & customer.
c) Trustee and Beneficiaries.
d) Landlord (Lessor) and tenant (Lessee).
Ans:d) Landlord (Lessor) and tenant (Lessee).
15. Dead rent is also called
a) Outstanding rent.
b) Minimum rent.
c) Prepaid rent.
Ans: b) Minimum rent.
16. The objective of fixing dead rent is:
a) Landlord should not get more than a certain amount per year.
b) Lessee should not pay more than the amount of dead rent.
c) Landlord must receive a minimum amount in case of low output or sales.
d) None of the above.
Ans: c) Landlord must receive a minimum amount in case of low output or sales.
17. The lessee’s right to recoup Short workings is related to
a) Fixed Period.
b) Subsequent two years.
c) Terms and agreement.
Ans: c) Terms and agreement.
18. In case of Sub‐lease Royalty earned by the lessor is credited to
a) Sub‐lessee account.
b) Profit and loss account.
c) Royalty receivable account.
Ans: c) Royalty receivable account.
19. Ground Rent or Surface rent means
a) Minimum Royalty payable.
b) Maximum Royalty payable.
c) Fixed rent payable in addition to minimum rent.
d) Rent recovered at the end of lease term.
Ans:c) Fixed rent payable in addition to minimum rent.
20. Short workings can be recouped out of
a) Minimum rent.
b) Excess of actual Royalty over minimum rent i.e. Surplus.
c) Excess of minimum rent over actual Royalty.
d) Profit and Loss Account.
Ans: b) Excess of actual Royalty over minimum rent i.e. Surplus.
21. When the accounts of all departments are maintained together, in columnar form, it is known as:
a) Unitary method.
b) Independent form.
c) Single entry.
d) Columnar form.
Ans: d) Columnar form.
22. In departmental accounting, where separate books are kept for each Department, it is commonly referred to as:
a) Independent accounting.
b) Columnar accounting.
c) Consolidated accounting.
d) Single entry system.
Ans: a) Independent accounting.
23. Sales are the basis of apportionment in the case of:
a) Travelling salesman’s commission.
b) Freight outwards.
c) After sales service.
d) All of the above.
Ans: d) All of the above.
24. Find the Loading which is 20% of the invoice price of goods if the cost price of goods is 40,000:
a) 4,000.
b) 6,000.
c) 10,000 (40,000*20/80).
d) 12,000.
Ans: c) 10,000 (40,000*20/80).
25. If the Invoice price of closing stock is Rs. 3, 60,000 what amount should be transferred to Stock Reserve given Loading is 20% of Invoice price:
a) 60,000 (3, 60,000*20/120).
b) 1, 20,000.
c) 40,000.
d) 10,000.
Ans: a) 60,000 (3, 60,000*20/120).
26. Departmental Accounting facilitates:
a) Comparison of trading results.
b) Intelligent planning and control.
c) Evaluating departmental performance.
d) All of the above.
Ans: d) All of the above.
27. Expenses which cannot be reasonably allocated to any particular department are taken in:
a) Debtors account.
b) Creditors book.
c) Balance sheet.
d) General Profit and Loss Account.
Ans: d) General Profit and Loss Account.
28. Departmental Accounts are prepared to ascertain
a) Profits of each department.
b) Departmental efficiency.
c) Both of the above.
d) None of the above.
Ans: c) Both of the above.
29. Departments are located in:
a) Same place.
b) Another city.
c) Outside state.
d) Foreign country.
Ans: a) Same place.
30. State the basis of allocation of expenses amongst various departments:
|
Expenses |
Basis |
|
Sales expenses as traveling salesman, salary and commission, selling expenses after sales service, discount allowed, bad debts, freight outwards, provision for discount on debtors, sales manager’s salary and other benefits, Advertisement. |
Sales of each department
|
|
All expenses relating to building as rent, rates, taxes, air conditioning expenses, heating, insurance building etc. |
Area or value of floor space |
|
Lighting |
Light points |
|
Insurance on stock |
Average stock carried |
|
Insurance on plant & machinery |
Value of plant & machinery |
|
Group insurance premium |
Direct wages |
|
Power |
H.P or H.P x Hours worked |
|
Depreciation, Renewals & Repairs |
Value of assets in each department |
|
Canteen expenses, Labour welfare expenses |
No. of employees |
|
Works manager’s salary |
Time spent in each department |
|
Carriage inwards |
Purchases of each department |
31. Branch account is of ________ nature.
a) Personal.
b) Real.
c) Artificial.
d) Nominal.
Ans: d) Nominal.
32. Which one of the following is not true about a dependent branch?
a) These branch sell only those goods which are received from the head office.
b) All expenses of the branch are paid by the head office.
c) Petty expenses are paid by the branch and petty cash account is prepared at the branch either as simple petty cash or on imprest system.
d) Such departments maintain their own books of account.
Ans: d) Such departments maintain their own books of account.
33. Which one of the following is true about branch account under debtors system?
a) It is real in nature.
b) Assets and liabilities in the beginning or at the end are not shown in such account.
c) It is prepared to find branch profit or loss for a particular period.
d) All expenses paid by branch and head office is shown in branch account.
Ans: c) It is prepared to find branch profit or loss for a particular period.
34. Which one the following is not true about independent branch?
a) These branches can purchase goods from open market.
b) They maintain complete set of double entry system.
c) They also maintain head office account.
d) They do not charge depreciation on fixed assets.
Ans: d) They do not charge depreciation on fixed assets.
35. When goods are invoiced to Branch at Invoice price, the value of goods is adjusted by
a) Debiting Goods sent to branch account.
b) Debiting Branch Adjustment Account.
c) Debiting Stock reserve account.
d) Debiting Branch Account.
Ans: a) Debiting Goods sent to branch account.
36. Goods are sent to branch at cost plus 20%. The loading on the invoice price will be
a) 16.67%.
b) 28%.
c) 33.33%.
d) 25%.
Ans: a) 16.67%.
37. Which of the following statements is true with regard to accounting for branches?
a) Under debtors system, Branch account is a real account.
b) Under stock and debtors system, Branch adjustment account discloses the gross profit made by the branch.
c) Branch stock account is always prepared at cost price.
d) Under debtors system, Branch account is debited with losses like bad debts, discounts allowed and depreciation.
e) Under stock and debtors system, Branch stock account is a nominal account.
Ans: b) Under stock and debtors system, Branch adjustment account discloses the gross profit made by the branch.
38. The fixed assets accounts of are maintained by the head office, then
a) No entry is passed by the branch for depreciation on fixed assets.
b) Branch account is debited and fixed assets is credited in the books of head office for depreciation.
c) Depreciation account is debited and head office account is credited in the books of branch.
Ans: b) Branch account is debited and fixed assets is credited in the books of head office for depreciation.
39. When Branch ‘A’ sends goods to Branch ‘B’, in the books of Branch ‘A’, debit is given to
a) Head office A/c.
b) Branch ‘B’A/c.
c) Both HO A/c and Branch A/c.
d) No entry.
Ans: a) Head office A/c.
40. In case of a dependent branch ‘Branch fixed Assets A/c’s are maintained by:
a) Branch.
b) Head office.
c) Department.
d) None of the above.
Ans: b) Head office.
41. Hire Purchase system is governed by:
a) Hire Purchase Act, 1972.
b) Sale of Goods Act.
c) Installment Act.
d) Properties Registration Act.
Ans: a) Hire Purchase Act, 1972.
42. Installment system is governed by:
a) Hire Purchase Act.
b) Sale of Goods Act.
c) Installment Act.
d) Properties Registration Act.
Ans: b) Sale of Goods Act.
43. Under hire purchase system, the agreement can be _________ anytime.
a) Renewed.
b) Registered.
c) Terminated.
d) Endorsed.
Ans: c) Terminated.
44. When an asset is acquired on hire purchase system, the asset account is debited with _______ of the assets in the books of the hire purchaser.
a) Hire purchase price.
b) Cash price.
c) Installment price.
d) None of these.
Ans: b) Cash price.
45. On the balance sheet of a company, the value of the asset bought through hire purchase will appear as:
a) Cost less depreciation to date less Balance in hire vendor’s account.
b) Cost less amounts owing on hire purchase.
c) Cost less depreciation to date less amount owing on hire purchase.
d) Cost less depreciation to date.
Ans: a) Cost less depreciation to date less Balance in hire vendor’s account.
46. The depreciation on an asset purchased through hire purchase should be:
a) Should be straight line only.
b) Based on the cost price of the asset only.
c) Based on the total cost including interest.
d) No depreciation should be provide until the final payment is made.
Ans: b) Based on the cost price of the asset only.
47. Ownership of goods under hire purchase agreement is transferred at the time of:
a) Payment of down payment.
b) Payment of first installment.
c) Full and final Payment of last installment.
Ans: c) Full and final Payment of last installment.
48. The act of buying an asset without having to make full payment in the immediate future is known as:
a) Hire purchase.
b) Finance lease.
c) Operating lease.
d) Sale and leaseback.
Ans: a) Hire purchase.
49. The amount of interest is credited by the buyer to:
a) Hire purchase Account.
b) Hire Vendor Account.
c) Interest Account.
d) Machinery Account.
Ans: b) Hire Vendor Account.
50. Hire charges depreciation is calculated and shown in the books of hirer/Vendee:
a) Hire purchase price.
b) Cash price.
c) None of these.
Ans: b) Cash price.
51. What is transferred to Hire under hire purchase system:
a) Ownership of assets.
b) Possession of asset.
c) Ownership and possession of asset.
d) None of these.
Ans: b) Possession of asset.
52. Under hire purchase system, the retail price of the articles is called:
a) MRP.
b) Wholesale Price.
c) Retail Price.
d) Cash Price.
Ans: c) Retail Price.
53. The Initial amount paid hire purchase system is called:
a) Cash Price.
b) Retail Price.
c) Interest.
d) Down Payment.
Ans: d) Down Payment.
54. Under hire purchase system, interest is calculated on:
a) Cash Price.
b) Hire Purchase Price.
c) Outstanding Balance.
Ans: c) Outstanding Balance.
55. If the hire purchaser fails to make payment of any installment, it is called default and the vendor has the right of:
a) Default.
b) Repossession.
c) Sale.
Ans: b) Repossession.
56. If the hire vendor may take away all the goods on which there is default of installment it is called:
a) Repossession.
b) Partial Repossession.
c) Complete Repossession.
Ans: c) Complete Repossession.
57. The hire vendor takes away only a portion of the goods on which there is default of Installments it is called:
a) Repossession.
b) Partial Repossession.
c) Complete Repossession.
Ans: b) Partial Repossession.
58. In the books of Hire, the interest and depreciation account will be transferred to:
a) Trading account.
b) P & L account.
c) P & L appropriation account.
d) Balance sheet.
Ans: b) P & L account.
59. Nature of hire purchase agreement is:
a) Agreement of sale.
b) Option to transfer.
c) Option to buy.
d) Option to sell.
Ans: c) Option to buy.
60. In case of Hire-Purchase the total sum payable by the hire-purchaser as per terms in order to complete the transactions is
a) Net Cash Price.
b) Net Hire-Purchase Charges.
c) Hire-Purchase Price.
d) Cash Price Installment.
Ans: c) Hire-Purchase Price.
61. The price at which the goods can be purchased by the hirer for ready cash is known as:
a) HP price.
b) Installment price.
c) Cash price.
d) Down payment.
Ans: c) Cash price.
62. The difference between hire purchase price and the cash price is called:
a) Hire charges /Total Interest.
b) Cost of the asset.
c) Installment price.
d) Cash price.
Ans: a) Hire charges /Total Interest.
63. The value at which goods are reposed is transferred to _______ in the books of the vendor.
a) Asset account.
b) Goods account.
c) Goods repossessed account.
d) None of these.
Ans: c) Goods repossessed account.
64. Cash Price equals to
a) Hire purchase price – total interest.
b) Down payment in cash.
c) Down payment + Interest.
d) None of the above.
Ans: a) Hire purchase price – total interest.
65. Joint Venture is a:
a) Personal A/c.
b) Nominal A/c.
c) Real A/c.
d) Memorandum A/c.
Ans: b) Nominal A/c.
66. Joint Bank A/c is a:
a) Nominal A/c.
b) Personal A/c.
c) Real A/c.
d) Dummy A/c.
Ans: b) Personal A/c.
67. Joint Venture with another co-venturer A/c is a:
a) Personal A/c.
b) Nominal A/c.
c) Real A/c.
d) Memorandum A/c.
Ans: b) Nominal A/c.
68. Which of the following account is opened when separate joint venture account is opened?
a) Joint venture A/c.
b) Joint bank A/c.
c) Co-venturer A/c.
d) All of the above.
Ans: d) All of the above.
69. What does the balance in Memorandum Joint Venture A/c shows –
a) Profit or loss.
b) Closing Stock.
c) Balance due from other co-venturer.
d) Difference in Trial Balance.
Ans: a) Profit or loss.
70. The partners to joint venture are called
a) Bailor and bailee.
b) Partner’s.
c) Co-venturer.
d) Principal and agent.
Ans: c) Co-venturer.
71. Provisions of Indian Partnership Act are also applicable to Joint Venture.
a) True.
b) False.
Ans: a) True.
72. Which of these is not a part of double entry system?
a) Joint Bank A/c.
b) Memorandum A/c.
c) Joint Venture A/c.
d) Joint Venture with other co-venturer A/c.
Ans: b) Memorandum A/c.
73. Loss on Joint Venture is:
a) Credited to Profit and Loss A/c.
b) Debited to co-venturers capital A/c.
c) Credited to Capital Fund A/c.
d) Debited to Suspense A/c.
Ans: b) Debited to co-venturers capital A/c.
74. Stock left over taken by a Co-venturer is:
a) Debited to Joint Venture A/c.
b) Credited to Co-venturer A/c.
c) Credited to Joint Venture A/c.
d) Credit to Joint Bank A/c.
Ans: c) Credited to Joint Venture A/c.
75. Which of these is not a feature of a Joint venture?
a) Continuing business.
b) No firm name.
c) Partners called co-venturer.
d) Partnership for limited purpose.
Ans: a) Continuing business.
76. Which of these accounts are not opened in a joint venture?
a) Stock reserve.
b) Joint bank A/c.
c) Joint venture A/c.
d) Co-venturers personal A/c.
Ans: a) Stock reserve.
77. Profit or loss on joint venture business is shared by the co-venturers –
a) Equally.
b) In the ratio of capital contributed.
c) In the agreed upon ratio.
d) As per their age.
Ans: c) In the agreed upon ratio.
78. Consignment account is in the nature of a
a) Real account.
b) Nominal account.
c) Personal account.
Ans: b) Nominal account.
79. Goods send on consignment account is a
a) Real account.
b) Personal account.
c) Nominal account.
Ans: a) Real account.
80. Del Credere commission is given to the consignee to bear
a) Nominal loss.
b) Abnormal loss.
c) Loss on account of bad debt.
Ans: c) Loss on account of bad debt.
81. The abnormal loss on consignment is credited to
a) Profit and loss account.
b) Consignee’s account.
c) Consignment account.
Ans: c) Consignment account.
82. When consignee effect sales on behalf of consignor he credits
a) Sales account.
b) Consignee’s account.
c) Purchase account.
Ans: b) Consignee’s account.
83. In accountancy consignment, signifies
a) Goods forwarded from one place to another.
b) Goods forwarded by a person to another.
c) Goods dispatched by its owner to his agent.
d) Goods dispatched by its owner to his agent for the purpose of sale.
Ans: d) Goods dispatched by its owner to his agent for the purpose of sale.
84. Consignor is
a) Principal.
b) Agent.
c) Debtors of the consignee.
Ans: a) Principal.
85. Consignee is
a) principal.
b) Agent.
c) None of these.
Ans: b) Agent.
86. Account sale is submitted by
a) Consignee to the consignor.
b) Debtors to the creditor.
c) Principal to his agent.
Ans: a) Consignee to the consignor.
87. Goods sent on consignment’ should be debtors to the consignor to
a) Consignment account.
b) Goods sent on consignment account.
c) Consignor’s account.
Ans: a) Consignment account.
88. In the books of consignor, the expenses incurred by the consignee should be debited to
a) Consignment account.
b) Consignee’s personal account.
c) Expenses account.
Ans: a) Consignment account.
89. In the books of consignor, the acceptance of a bill of exchange by the consignee should be credited to
a) Consignee’s account.
b) Bills receivable account.
c) Consignment account.
Ans: a) Consignee’s account.
90. In the books of consignor, the profit on consignment should be debited to
a) Profit and loss account.
b) Consignee’s account.
c) Consignment account.
Ans: c) Consignment account.
91. In the books of consignor, the loss on consignment should be credited to
a) Profit and loss account.
b) Consignee’s account.
c) Consignment account.
Ans: c) Consignment account.
92. In the books of consignor, the balance of the consignment stock account would be show
a) As an asset in the balance sheet.
b) As a liability in the balance sheet.
c) On the credit side of the trading account.
Ans: a) As an asset in the balance sheet.
93. In the case of Del Credere Commission, the liability for bad debts is on
a) Consignee.
b) Consignor.
c) None of the above.
Ans: a) Consignee.
94. In the books of consignor, the balance in the goods send on consignment account is shown
a) On the asset side of the balance sheet.
b) On the liability side of the balance sheet.
c) On the credit side of the trading account.
Ans: c) On the credit side of the trading account.
95. In the books of consignor, the expenses incurred and paid by the consignor on account of cartage, freight insurance etc. are debited to
a) Freight and insurance account.
b) Particular consignment account.
c) Trade expenses account.
Ans: b) Particular consignment account.