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MCQs 1 General Topics

1) Which of the following is not a Capital Expenditure?

a) Money spent to purchase the Furniture

b) Money spent to purchase the Building

c) Money spent to pay the salary to the employees

d) Money spent to purchase the Land

2) Which of the following is not a Revenue Expenditure?

a) Money spent towards acquiring the Furniture

b) Money spent to pay salary to the employees

c) Money spent towards electricity bill

d) Money spent towards interest on deposits

3) What is Accounting Equation?

a) Assets = Capital + Liabilities

b) Assets = Capital Liabilities

c) Liabilities = Capital + Assets

d) Capital = Liabilities Assets

4) How would you classify the Depreciation?

a) Asset to the bank

b) Expense to the bank

c) Income to the bank

d) Liability to the bank

11) How would you classify the wages paid for construction of building?

a) Revenue Receipt

b) Revenue Expenditure

c) Capital Expenditure

d) Revenue Expenditure

12) Which of the following best describes a trial balance?

a) It shows the prot or loss of the organization

b) It is a list of balances of ledger accounts

c) Shows the nancial position of a business

d) It is a Ledger Account

13) Contingent liabilities are those and are shown under.

a) Which are never payable and shown outside the balance sheet

b) Which may or may not arise and shown liabilities side of the balance sheet

c) Which crystallize at the time of liquidation of a company and shown in the asset side of the balance sheet

d) Which may or may not arise and shown outside of the balance sheet

14) Which of the following is a Capital Expenditure?

A) Purchase of raw material

B) Purchase of machinery

C) Interest on loan

D) Depreciation on machinery

16) How would you journalise the depreciation charged on the asset?

A) Debiting cash account and crediting depreciation account.

B) Debiting depreciation account and crediting cash account.

C) Debiting depreciation account and crediting asset account.

D) Debiting cash account and crediting asset account

18) Which of the following convention says that Once an entity follows a particular method of accounting it should use
the same method for all subsequent transactions and events of the same nature.

A) Conservatism

B) Full Disclosure

C) Consistency

D) Materiality

19) Interest earned in bank nal statement is explained through -

A) Schedule 13

B) Schedule 1

C) Schedule 15

D) Schedule 2

20) How would you treat the purchase of a software that will be used for more than 12 months should be regarded as:

A) A revenue expenditure

B) A capital expenditure

C) A long term expense

D) A capital receipt

21) Which of the following is a double entry for depreciation expenses?

A) Accumulated depreciation debit and depreciation expenses Credit

B) Depreciation expenses Debit and provision for depreciation Credit

C) Cash Debit and depreciation expenses Credit

D) Depreciation expenses Debit and cash Credit

22) Which among the following represents the balance in the Capital account of the business?

The amount of cash introduced by the owner at the commencement of business

Total liabilities of the business

The total of all assets of the business

Total assets of the business minus its external liabilities

23) Which of the following statements states the meaning of Trial Balance?

Lists the balances of the ledger accounts of asset accounts and liability accounts for a
particular period

Lists the balances of all the ledger accounts for a particular period

It reveals how protable a business has been

It balances even if the bookkeeper forgets to post a payment

25) How would you classify the summary statement of the tabulation of balances of all the ledger accounts?

Reconciliation Statement

Trial Balance

Balance Sheet

Ledger

Related

Capital Expenditure and Revenue
Expenditure
Capital Expenditure Capital
expenditure occurs when a
business gets a long term
advantage due to that
expenditure. It is usually incurred
Accounting Technical Terms
Asset Whatever the company
owns. Example cash, machinery,
land & building etc. Whatever the
company yet to receive from
others. Example if you have
JAIIB/DBF Syllabus Nov/Dec 2017
- ACCOUNTING & FINANCE FOR
BANKERS
JAIIB/DBF SYLLABUS NOV/DEC
2017 PAPER 2 ACCOUNTING &
FINANCE FOR BANKERS Module
A Business Mathematics and
Finance Module B Principles of

June 4, 2017 1 Reply

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Bablol on June 9, 2017 at 2:57 am

Thanks, great article.

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