Advance & Miscellaneous Accounting – Test 01

  1. A bill drawn on June 16 for a period of 30 days and unfortunately July 19 is a public holiday. Then what will be the maturity date of the bill?
    (a) 18th July
    (b)  17th July
    (c)  19th July
    (d)  20th July
  2. If a bill drawn on 5th March for 30 days by A to B, then the date of maturity will be–
    (a) 6 April
    (b)  5 April
    (c)  8 April
    (d)  7 April
  3. The bill which requires the drawee to make payment immediately on presentation is
    (a) Foreign bill
    (b) Sight bill
    (c) Usance bill
    (d) Bill of lading
  4. Under the document against acceptance method, the exporter draws a usance or time. These bills have a usance period of–
    (a) 20, 50, 90, 120 or 180 days
    (b) 30, 60, 90, 120 or 180 days
    (c) 30, 50, 100, 120 or 190 days
    (d) 40, 80, 100, 130 or 190 days
  5. Which of the following statement is true?
    (a) A bill  of  exchange  is drawn  by the payee
    (b) A bill  of  exchange  is drawn  by the creditor
    (c) A bill  of  exchange  is drawn  for all cash transactions
    (d) A bill  payable on demand is called time bill
  6. In a single entry system, opening capital is calculated as:
    Opening capital = closing capital + drawings – profit – ?
    (a) Fresh capital introduced
    (b)  Sales
    (c)  Income tax paid
    (d)  Opening stock
  7. Financial position of business under incomplete accounting record is shown through–
    (a) Statement of Affairs
    (b) Balance Sheet
    (c) Statement of Fund Flow
    (d) None of the above
  8. Given: Net assets of a business on January 1 are Rs 40,000 and on January 31 Rs 48,000. Find the net income for January.
    (a) 6,000
    (b) 8,000
    (c) 2,000
    (d) Zero
  9. The following information has been extracted from the books of a sports club :
    31-3-2021 (Rs.) 31-3-2022 (Rs.)
    Subscription outstanding 45,000 6,600
    Subscription received in advance 41,000 13,000

    Subscriptions received during the year 2021-22 were Rs. 1,80,000. The amount of subscription to be credited in the ‘Income & Expenditure Account’ for the year ended 31-3-2022 will be :
    (a) Rs. 1,35,600
    (b) Rs. 1,22,400
    (c) Rs. 1,47,400
    (d) Rs. 1,69,600

  10. Receipts and Payment account is a summary of:
    (a) Debit and credit balance of ledger accounts
    (b) Incomes and expenditures
    (c) Cash receipts and payments
    (d) Balance of assets and liabilities
  11. Given: Stock of stationery on January 1, 2021, Rs 400. Stock of stationery on December 31, 2021, Rs 100. Payment for stationery during 2021 Rs.1,200. Creditor for stationery on December 31, 2021, Rs 150. What is the amount of stationery that will be posted to the Income and Expenditure A/c for the year ending December 31, 2021?
    (a) Rs. 1,150
    (b) Rs.1,650
    (c) Rs. 850
    (d) Rs.1,050
  12. Loading is usually involved in all such items which are recorded at the invoice price in the Consignment Account. Which of these is not one of those items?
    (a) Expenses incurred by the consignor
    (b)  Goods Sent on Consignment
    (c)  Goods Returned by the Consignee
    (d)  Opening Stock
  13. Goods sent on consignment is debited to :
    (a) Consignment account
    (b)  Profit and loss account
    (c)  Consignee’s account
    (d)  goods sent on consignment account
  14. Which of the following is incorrect?
    (a) Joint venture can be formed with minor
    (b) Joint venture is not based on going concern
    (c) A bill of exchange is a negotiable instrument
    (d) Noting charges are the expenses of drawee
  15. Memorandum Joint Venture Account is prepared to find out :
    (A) Amount due from the co-venturers
    (B) Profit or loss on the joint venture
    (a) Only (B)
    (b) Both (A) and (B)
    (c) Only (A)
    (d)  Neither (A) nor (B)
  16. When computing the purchasing power gain or loss on net monetary items, which of the following accounts is classified as non-monetary?
    (a) Allowance for uncollectible accounts
    (b) Accumulated depreciation of equipment
    (c) Advances to unconsolidated subsidiaries
    (d) Unamortized premium on bonds payable
  17. Which of the following is the biggest limitation of current purchasing power accounting?
    (a) It is a useless method of accounting.
    (b) It is a baseless method of accounting
    (c) It does not provide any relevant information for management evaluation and use.
    (d) The upward revaluation of assets by indexing them would be, increasingly, a value without the external evidence that would meet the needs of prudence and realisation.
  18. Present value of future earning model was suggested by-
    (a) Lev and Schwartz
    (b) Brummet, Flamholtz and Pyle
    (c) Kenneth Sinclair
    (d) Hekimian and Jones
  19. According to ————- of human resource accounting, an individual value to an organisation is determined by the services he is expected to render to the organisation during the period he is likely to remain with the organisation in various positions or service states
    (a)  Lev and Swartz Model
    (b)  Jaggi & Lau Model
    (c)  Flamhaltz Model
    (d)  Morse Net Benefit Model
  20. Which one of the following is a disadvantage of a tailor-made software?
    (a) It is difficult to learn and requires high tech training
    (b) The high cost of installation and maintenance
    (c) Can link with another information system
    (d) It can be developed according to the customer’s requirement
  21. Payroll software is an example of which software?
    (a) System software
    (b) Programming software
    (c) Utility software
    (d) Application software
  22. alt+F3 is the shortcut key for –
    (a) Calculator
    (b) Payment voucher
    (c) Company creation
    (d) Changing period in tally
  23. Which of the following is not an advantage of automated accounting system?
    (a) It is accurate
    (b) It can store large volume of data
    (c) It is fast
    (d) It has a high development cost
  24. What does EDI stand for?
    (a) Electronic Digital Interchange
    (b) Electronic Data Interchange
    (c) Earn deferred income
    (d) Electronic Data Interface
  25. Which of the following is not a feature of a successful MIS?
    (a) It is complex
    (b) It is accurate
    (c) It is flexible
    (d) It uses common input, output and processing procedure