Book Keeping and Accountancy MCQs [UKPSC Assistant Accountant Exam 2023]

Book Keeping and Accountancy MCQS

UKPSC Assistant Accountant Exam

Total Marks in this Section: 10 Marks

In this Post You will get Book Keeping and Accountancy 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.

Book Keeping and Accountancy MCQs is the First Part of Section which covers 10 Marks. We preparing UKPSC Assistant Accountant Exam Notes. We keep our posts updated, so visit our webiste frequently. Thanks.

Choose the correct answer to the following questions from the given alternatives:

1) The concept of conservatism takes into account:

(a) all future profits and all future losses.

(b) all future profits but leaves all future losses.

Ans: (c) all future losses but leaves all future profits.

2) According the concept of conservatism, the stock is trade is valued at:

(a) market price.

(b) cost price.

(d) market price or cost price, whichever is lower.

Ans: (d) market price or cost price, whichever is lower.

3) The concept of conservatism will have the effect of:

(a) Over-statement of assets.

(b) Understatement of assets.

Ans: (b) Understatement of assets.

4) According to going concern, a business is assumed as having:

(a) a limited life.

(b) a indefinite life.

Ans: (b) a indefinite life.

5) According to which of the following concepts, even the proprietor of the business is treated as a creditor of the business?

(a) money measurement concept.

(b) cost concept.

(d) Entity concept.

Ans: (d) Entity concept.

6) According to which of the following concepts, for determining the net income from business, all costs which are applicable to revenue of the period should be charged against that revenue?

(a) matching concept.

(b) cost concept.

(d) dual aspect concept.

Ans: (a) matching concept.

7) Point out the correct accounting equation –

(a) Assets = Liabilities – Capital.

(b) Liabilities = Capital + Assets.

(d) Liabilities = Assets – Capital.

Ans: (d) Liabilities = Assets – Capital.

8) In book-keeping, ‘posting’ means –

(a) to record the transaction in the books of original entry.

(b) to transfer the transaction from the books of original entry to the ledger.

Ans: (b) to transfer the transaction from the books of original entry to the ledger.

9) In book-keeping, ‘Journalising’ means –

(a) total in the page of journal.

(b) recording the entry in the journal.

Ans: (b) recording the entry in the journal.

10) Personal accounts are related to –

(a) assets and liabilities.

(b) expenses, losses and incomes.

Ans: (c) customers, creditors etc.

11) Real accounts are related to –

(a) assets.

(b) expenses, losses and incomes.

Ans: (a) assets.

12) Nominal accounts are related to –

(a) assets and liabilities.

(b) expenses, losses and incomes.

Ans: (b) expenses, losses and incomes.

13) The basic rule of book-keeping, ‘debt the receiver and credit the giver’. Is applicable to –

(a) Personal a/c.

(b) Real a/c.

Ans: (a) Personal a/c.

14) The basic rule of book-keeping, ‘debit what comes in and credit what goes out’, is applicable to –

(a) Personal a/c.

(b) Real a/c.

Ans: (b) Real a/c.

15) The basic rule of book-keeping, ‘debit all expenses and losses and credit all incomes and gains’, is applicable to

(a) Personal a/c.

(b) Real a/c.

Ans: (c) Nominal a/c.

16) Double entry system of book-keeping refers to a system where –

(a) the number of accounts with a debit balance must agree with the number of accounts with the credit balance.

(b) each transaction is recorded twice once in journal and then in ledger.

(d) each transaction is recorded in two set of accounts books.

Ans: (c) equal debit and credit entries are made for each transaction.

17) The total of debit side of an account exceeding the total of the credit side indicates –

(a) Debit balance.

(b) Credit balance.

Ans: (a) Debit balance.

18) The balance of cash account indicates –

(a) net income.

(b) cash in hand.

Ans: (b) cash in hand.

19) The credit balance of bank account indicates –

(a) balance in bank.

(b) amount payable by the bank.

Ans: (c) amount payable to the bank.

20) Which of the following accounts will invariably have a debit balance?

(a) Accounts receivable.

(b) Accounts payable.

(d) Bank account.

Ans: (a) Accounts receivable.

21) Which of the following accounts will invariably have a credit balance?

(a) Current account of a proprietor.

(b) Account receivable.

(d) Discount account.

(e) None of these.

Ans: (c) Account payable.

22) Bank account shows a credit balance of Rs. 800. What does it mean?

(a) There must be un-deposited cash in hand.

(b) There must be some error in recording.

(d) There is overdraft balance.

Ans: (d) There is overdraft balance.

23) The balance of petty cash book is –

(a) a liability.

(b) an expenses.

(d) as assets.

Ans: (d) as assets.

24) The petty cash book is used for recording –

(a) Petty cash payments.

(b) Petty cash receipts from customers.

Ans: (a) Petty cash payments.

25) The cash book in book-keeping records –

(a) all receipts and payments in cash.

(b) all cash and credits sale of goods.

Ans: (a) all receipts and payments in cash.

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26) Cash discount is provided on –

(a) prompt payment.

(b) sales.

Ans: (a) prompt payment.

27) Cash account will show –

(a) Debit or credit balance.

(b) Credit balance.

Ans: (c) Debit balance.

28) Cash book is a –

(a) Subsidiary journal.

(b) Subsidiary journal and ledger account.

Ans: (b) Subsidiary journal and ledger account.

29) Purchase book records –

(a) all types of purchases.

(b) only credit purchases of goods.

(d) both cash and credit purchases of goods.

Ans: (b) only credit purchases of goods.

30) A sales book records –

(a) both cash and credit sales of goods.

(b) all types of credit sales.

(d) all types of sales.

Ans: (c) only credit sales of goods.

31) Return inward book records –

(a) Returns of goods from factory to the godown.

(b) Returns of goods from show-room to the godown.

(d) Return of goods from the suppliers.

Ans: (c) Returns of goods from the customers.

32) Returns outwards book records –

(a) Goods returned to the suppliers.

(b) Goods returned to the stores.

(d) Goods returned by the owner.

Ans: (a) Goods returned to the suppliers.

33) A trial balance is a –

(a) real account.

(b) nominal account.

(d) None of these.

Ans: (c) list of balances.

34) Trial balance checks –

(a) the arithmetical accuracy of books.

(b) the honesty of the book-keeper.

(d) all of these.

Ans: (a) the arithmetical accuracy of books.

35) Bank reconciliation statement is –

(a) a ledger account.

(b) a part of the cash book.

(c) a statement separately prepared to find out the causes for difference between bank columns of cash book and pass book.

Ans: (c) a statement separately prepared to find out the causes for difference between bank columns of cash book and pass book.

36) A bank reconciliation statement is prepared by –

(a) a bank.

(b) customer.

Ans: (b) customer.

37) Which of the following errors will not affect the trial balance?

(a) Wrong balancing of an account.

(b) Wrong totaling of an account.

(d) Writing an amount in the wrong account but on the correct side.

Ans: (d) Writing an amount in the wrong account but on the correct side.

38) A suspense account is used to rectify those errors –

(a) Which affect the trial balance.

(b) Which do not affect the trial balance.

(d) Which are caused by a complete omission of transactions.

Ans: (a) Which affect the trial balance.

39) Which of the following errors is disclosed by trial balance?

(a) Error of principle.

(b) Wrong amount posted in ledger account.

Ans: (b) Wrong amount posted in ledger account.

40) Indicate which of the following errors will cause the trial balance to be out of balance –

(a) A debit to an incorrect expenses account.

(b) A credit to an expenses account instead of credit to an income account.

(d) A credit to an income account instead of a credit to an expenses account.

Ans: (c) A credit to an asset account instead of debit to a liability account.

41) Depreciation is process of –

(a) Valuation.

(b) Allocation.

(d) None of these.

Ans: (b) Allocation.

42) Bills receivable book is a part of the –

(a) journal.

(b) ledger.

Ans: (a) journal.

43) A bills receivable book is a –

(a) principal book.

(b) subsidiary book.

Ans: (b) subsidiary book.

44) Depreciation arises because of –

(a) fall in the market value of an asset.

(b) physical wear and tear.

Ans: (b) physical wear and tear.

45) Under the straight line method of charging depreciation, the amount of depreciation –

(a) increase every year.

(b) decrease every year.

Ans: (c) is constant every year.

46) Under the diminishing balance method, depreciation is calculated on –

(a) the original cost.

(b) written down value.

Ans: (b) written down value.

47) A diminishing balance method of providing for depreciation is one, according to which –

(a) the amount of which depreciation is calculated, is reduced from year to year.

(b) the rate percent declines from year to year, at which depreciation is charged.

Ans: (a) the amount of which depreciation is calculated is reduced from year to year.

48) The amount of depreciation charged on machinery will be debited to –

(a) machinery account.

(b) depreciation account.

Ans: (b) depreciation account.

49) A not for profit organisation includes:

(a) Religious Organisations.

(b) Trade unions.

(d) Educational institutions.

(e) All of the above.

Ans: (e) All of the above.

50) A not for profit organisation prepares:

(a) Receipts and Payments Account.

(b) Trading Account.

(d) Both (a) and (c).

Ans: (d) Both (a) and (c).

51) An Income and Expenditure Account reveals:

(a) Cash position.

(b) Surplus or Deficit.

(d) None of the above.

Ans: (b) Surplus or Deficit.

52) Subscription received in advance is

(a) An asset account.

(b) A liability account.

(d) An expenses.

Ans: (b) A liability account.

53) Life member fee is

(a) A liability.

(b) An asset.

(d) None of the above.

Ans: (a) A liability.

54) Subscription received by a school for organising annual function is treated as:

(a) Capital receipt (i.e. Liability).

(b) Revenue receipt (i.e. Income).

(d) Earned income.

Ans: (b) Revenue receipt (i.e. Income).

55) If there is a Match Fund, then match expenses and incomes on match fund are transferred to:

(a) Income and Expenditure A/c.

(b) Assets side of Balance Sheet.

(d) Match fund.

Ans: (d) Match fund.

56) Capital Receipts are represented in:

(a) Balance Sheet.

(b) Trading Account.

(d) Manufacturing Account.

Ans: (a) Balance Sheet.

57) When a new partner brings in premium, the same is credited to –

(a) Cash Account.

(b) Goodwill Account.

Ans: (b) Goodwill Account.

58) In case of admission of a new partner.

(a) The firm is dissolved.

(b) The partnership is dissolved.

Ans: (b) The partnership is dissolved.

59) When a new partner is admitted, it requires the consent of

(a) All the partners.

(b) Majority of the partners.

Ans: (a) All the partners.

60) The premium brought in by the incoming partner is shared by the old partners –

(a) In their sacrificing ratio.

(b) In their profit sharing ratio.

Ans: (a) In their sacrificing ratio.

61) Goodwill is –

(a) An intangible asset.

(b) A fictitious asset.

Ans: (a) An intangible asset.

62) Realisation A/c is a

(a) Nominal A/c.

(b) Real A/c.

(d) None of the above.

Ans: (a) Nominal A/c.

63) When the realisation expenses are to be borne by a partner, it is credited to:

(a) Partner’s capital A/c.

(b) Cash A/c.

(d) Profit & Loss A/c.

Ans: (a) Partner’s capital A/c.

64) At the time of dissolution of a firm, assets taken over by a partner should be

(a) Credited to Realisation A/c.

(b) Debited to Realisation A/c.

Ans: (a) Credited to Realisation A/c.

65) An unrecorded asset realised at the time of realisation is credited to:

(a) Realisation A/c.

(b) Revolution A/c.

Ans: (a) Realisation A/c.

66) Unrecorded liability when paid on dissolution of a firm is debited to

(a) Realisation A/c.

(b) Liability A/c.

Ans: (a) Realisation A/c.

67) Profit or loss on realisation should be divided among partners in the.

(a) Profit sharing ratio.

(b) Equally.

Ans: (a) Profit sharing ratio.

68) Provision for doubtful debts appearing at the time of dissolution of a firm transferred to:

(a) Debtors A/c.

(b) Realisation A/c.

Ans: (b) Realisation A/c.

69) General reserve appearing at the time of dissolution is transferred to

(a) Bank A/c.

(b) Realisation A/c.

Ans: (c) Capital A/c’s.

70) Goodwill A/c is closed at the time of dissolution by transferring to:

(a) Realisation A/c.

(b) Liability A/c.

Ans: (a) Realisation A/c.

71) Joint life policy reserve appearing at the time of dissolution of a firm is transferred to

(a) Capital A/c’s.

(b) Realisation A/c.

Ans: (b) Realisation A/c.

72) At the time of dissolution, all the assets of the firm are transferred to the realisation account at ________ values.

(a) Market.

(b) Book.

Ans: (b) Book.

73) In the event of a death of a partner, accumulated profits and Losses are shared by partners:

(a) In old profit sharing ratio.

(b) In new profit sharing ratio.

Ans: (a) In old profit sharing ratio.

74) When a partner retires and his claim is not settled by the remaining partners. He is entitled to: –

(a) Interest at 6% p.a. on the amount due to him.

(b) A share of profit proportionate to the amount due to him.

Ans: (c) Either of the above two at his option.

75) On retirement, profit on revaluation of assets and liabilities is credited to:-

(a) All the partners in old profit sharing ratio.

(b) Remaining partners in new profit sharing ratio.

Ans: (a) All the partners in old profit sharing ratio.

76) On retirement, retiring partner’s share of goodwill is credited to: –

(a) All partners.

(b) Remaining partners.

Ans: (a) All partners.

77) On retirement of partner, when the remaining partners continue the business:

(a) The partnership is dissolved.

(b) The Firm is dissolved.

Ans: (a) The partnership is dissolved.

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