Finance & Accounts – Expected Questions | MCQ SSC-AAO

General Question : What are the important topics?

•  Basic Theory
•  Accounting Equation
•  Journal
•  Trial Balance
•  Trading Account

1. ABC ltd. Follows written down value method of depreciation year after year on the principle of ?

• Comparability
• Convenience
• Consistency
• All of the above

2. A change in accounting policy is justified.

• To comply with accounting standards
• To ensure more appropriate presentation of financial statement
• To comply with the law
• All of the above

3. Purchase book records:

• All cash purchases
• All credit purchases of goods & assets
• All credit purchases of goods
• None of the above

4. A bank reconciliation system is prepared to know the cause of difference between:

• The balances as per cash column of the cash book & pass book.
• The balances as per bank column of the cash book & pass book.
• The balances as per cash column of cash book & bank column of cash book.
• None

5. While finalizing the current year profit the company realized that closing stock of previous year was overvalued by rs. 50,000. as a result:

• PY’s & CY’s profit are overstated.
• PY’s profit is understated and CY’s profit is overstated.
• PY’s & CY’s profit are understated.
• PY’s profit is overstated and CY’s profit is understated.

6. Fundamental Accounting assumption is:

• Materiality
• Separate Business Entity
• Going Concern
• Dual Aspect

7. Which of the following are of capital nature?

1. Purchase of Goods
2. Cost of Repairs
3. Wages paid for installation of machinery
4. Rent of a factory

8. If cost of goods sold is Rs. 80,700, Opening Inventory Rs. 5,800 and closing inventory is Rs. 6,000. The Amount of purchase will be:

1. RS. 80,500
2. RS. 74,900
3. RS. 74,700
4. RS. 80,900

9. Original Cost Rs. 1,26,000. Scrap value Rs. 6,000. Useful life = 6 Years. Compute depreciation as per SLM Method.

1. RS. 21,000
2. RS. 20,000
3. RS. 15,000
4. RS. 14,000

10. A new firm commenced business on 1st January 2017 and purchased goods costing RS. 90,000 during the year. A sum of Rs. 6,000 was spent towards freight inwards. Closing stock at the end of year was Rs. 12,000. Sales during the year was Rs. 1,20,000. Find Gross Profit.

1. RS. 36,000
2. RS. 30,000.
3. RS. 42,000.
4. RS. 38,000

11. The Cash Book showed an Overdraft of Rs. 1,500, but the pass book made up the same date showed that Cheques of Rs.100, Rs. 50 and Rs. 125 respectively had not been presented for payments, and the cheque of Rs. 400 paid into account had not been cleared. The balance as per the pass book will be:

1. RS. 1,100
2. RS. 2,175
3. RS. 1,625
4. RS. 1,375

12. A second hand car is purchased for Rs. 10000, Rs. 1000 is spent on it’s repairs, Rs. 500 was incurred for registration and Rs. 1200 was paid as commission. The amount debited to Car’s account will be:

1. Rs. 10000
2. Rs. 10500
3. Rs. 12700
4. None of the above

13. If a purchase return of Rs. 100 has been wrongly posted to the debit of the sales return account, but correctly entered in suppliers account, the total of the trial balance would show:

1. The credit side to be Rs. 100 more than debit side.
2. The debit side to be Rs. 100 more than credit side.
3. The credit side to be Rs. 200 more than debit side.
4. The debit side to be Rs. 200 more than credit side.

14. Following is the unmatched trial balance. Reason of non matching of total is:

15. A draws a bill of Rs. 30000 on B. A want to endorse it to C in settlement of Rs. 35,000 at 2% Discount with the help of B’s acceptance and balance in cash. How much cash A will pay to C?

1. Rs. 4300
2. Rs. 4000
3. Rs. 4100
4. Rs. 5000

16. Debit balance as per cash book is Rs. 1500. Cheques deposited but not cleared amounts to Rs. 100 and Cheques issued but not presented for payment Rs. 150. The bank gave interest of Rs. 50 and collected dividend of Rs. 50 on the account holder’s behalf. Balance as per Pass-book will be:

1. 1600
2. 1450
3. 1850
4. 1650

17. Repair Cost Rs. 25000, whitewash expense Rs. 5000, cost of extension of office building Rs. 250000 and cost of improving electrical wiring Rs. 19000. The amount of revenue expense is:

1. 299000
2. 44000
3. 30000
4. 49000

18. A owe Rs. 35000 from B, B made a partial payment of Rs. 21000. Journal entry of receiving the amount will include:

1. Cash A/c Credit By Rs. 21000
2. B’s A/c Credit by Rs. 21000
3. Cash A/c Debit by Rs. 14000
4. B’s Account Debit by Rs. 14000

19. Which of the following is not a sub-field of Accounting?

1. Management Accounting
2. Cost Accounting
3. Financial Accounting
4. Book-keeping

20. Revenue from sale is recorded in the period in which:

1. Cash is collected
2. Sale is made
3. Product id manufactured
4. None of the above

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