Bihar Board 12th Accountancy VVI Objective Questions Model Set 7 in English

Bihar Board 12th Accountancy Objective Questions and Answers

Bihar Board 12th Accountancy VVI Objective Questions Model Set 7 in English

Question 1.
Income and Expenditure Account generally indicates –
(A) Surplus / Deficit
(B) Cash Balance
(C) Capital Fund
(D) Net Profit/Loss
Answer:
(A) Surplus / Deficit

Question 2.
Specific donation is –
(A) Capital Receipt
(B) Revenue Receipt
(C) Assets
(D) None of these
Answer:
(A) Capital Receipt

Question 3.
Which of the following is not a not – for – profit organization ?
(A) School
(B) Hospital
(C) Club
(D) Partnership Firm
Answer:
(C) Club

Question 4.
On dissolution, Goodwill Account is transferred to –
(A) In the Capital Account of Partners
(B) On the Credit side of Cash Account
(C) On the debit side of Realization Account
(D) On the credit side of Realization Account
Answer:
(C) On the debit side of Realization Account

Question 5.
On dissolution of a Firm, Partner’s Loan Account is transferred to –
(A) Realization Accounts
(B) Partner’s Capital Account
(C) Partner’s Current Account
(D) None of these
Answer:
(D) None of these

Question 6.
On dissolution of a firm, Bank overdraft is transferred to –
(A) Cash Account
(B) Bank Account
(C) Realization Account
(D) Partner’s capital Account
Answer:
(C) Realization Account

Question 7.
At the time of firm’s dissolution, Balance of General Reserve shown in the Balance Sheet is credited to –
(A) Realization Accounts
(B) Creditor’s Account
(C) Partner’s Capital Account
(D) Profit & Loss Account
Answer:
(C) Partner’s Capital Account

Question 8.
On firm’s dissolution, which one of the following account should be prepared at the last ?
(A) Realization Account
(B) Partner’s Capital Accounts
(C) Cash or Bank Account
(D) Partner’s Loan Account
Answer:
(C) Cash or Bank Account

Question 9.
If the total assets are Rs. 4,05,000 and the total outside liabilities are Rs. 55,000, then the amount of all Partner’s capital will be –
(A) Rs. 3,50,000
(B) Rs. 4,00,000
(C) Rs. 3,75,000
(D) None of these
Answer:
(A) Rs. 3,50,000

Question 10.
Which of the following is correct profit or loss in case the amount received from the sale of assets is Rs. 40,000 total assets Rs. 50,000 total liabilities Rs. 15,000 and realization expenses Rs. 2,000 ?
(A) Rs. 10,000 Loss
(B) Rs. 7,000 Loss
(C) Rs. 20,000 Profit
(D) Rs. 12,000 Loss
Answer:
(D) Rs. 12,000 Loss

Question 11.
On dissolution of the firm, Partner’s Capital Accounts are closed through –
(A) Realization Account
(B) Drawings Account
(C) Bank Account
(D) Loan Account
Answer:
(C) Bank Account

Question 12.
Expenses on dissolution of firm is called –
(A) Realization Expenses
(B) Legal Expenses
(C) Loss Expenses
(D) None of these
Answer:
(A) Realization Expenses

Question 13.
Payment of credit balance of Partner’s Capital Accounts at the time of dissolution of a firm is made to –
(A) Partners
(B) Firm
(C) Wife
(D) None of these
Answer:
(A) Partners

Question 14.
At the time of dissolution of firm book value of assets is recorded in which side of the Realization Account ?
(A) Debit side
(B) Credit side
(C) Liabilities side
(D) All of the above
Answer:
(A) Debit side

Question 15.
Sundry creditors amounted to Rs. 9,000. They were paid at a discount of 5%. Realization A/c will be debited by –
(A) Rs. 9,000
(B) Rs. 8,550
(C) Rs. 450
(D) Rs. 9,450
Answer:
(B) Rs. 8,550

Question 16.
Cash Flow Statement in based upon –
(A) Cash basis of accounting
(B) Accrual basis of accounting
(C) (A) and (B) both
(D) None of these
Answer:
(A) Cash basis of accounting

Question 17.
The ideal liquidity ratio is –
(A) 2: 1
(B) 1 : 1
(C) 5 : 1
(D) 4 : 1
Answer:
(B) 1 : 1

Question 18.
Cash Flow Statement is prepared from—
(A) Balance Sheet
(B) Profit and Loss Account
(C) Additional Information
(D) All of these
Answer:
(D) All of these

Question 19.
The ideal current ratio is –
(A) 2 : 1
(B) 1 : 2
(C) 3 : 2
(D) 3 : 4
Answer:
(A) 2 : 1

Question 20.
Following are included in cash equivalent –
(A) Treasury Bill
(B) Trade Bill
(C) Bank Deposits of Short Maturity Period
(D) All of the above
Answer:
(D) All of the above

Question 21.
Operation Ratio is –
(A) Profitability, Ratio
(B) Activity Ratio
(C) Solvency R&tio
(D) None of these
Answer:
(A) Profitability, Ratio

Question 22.
Which of the following is not the source of cash ?
(A) Purchase of Fixed Assets
(B) Funds from Operations
(C) Issue of Debentures
(D) Sale of Fixed Assets
Answer:
(A) Purchase of Fixed Assets

Question 23.
Current Ratio includes-
(A) Stock
(B) pebtors
(C) Cash
(D) All of the above
Answer:
(D) All of the above

Question 24.
Cash Sales is-
(A) Operating Activity
(B) Investing Activity
(C) Financing Activity
(D) None of these
Answer:
(A) Operating Activity

Question 25.
Total Assets Rs. 7,70,000; Total Liabilities Rs. 2,60,000; Current Liabilities Rs. 40,000. Total Assets to Debit Ratio is –
(A) 3.5 : 1
(B) 2.56 : 1
(C) 2.8 : 1
(D) None of these
Answer:
(A) 3.5 : 1

Question 26.
Which of the following items is considered as cash equivalents ?
(A) Bank Overdraft
(B) Bills Receivable (B/R)
(Q Debtors
(D) Short-term investment
Answer:
(B) Bills Receivable (B/R)

Question 27.
Operating Ratio is –
(A) Profitability Ratio
(B) Activity Ratio
(C) Solvency Ratio
(D) None of these
Answer:
(A) Profitability Ratio

Question 28.
Which of the following is not a cash outflow ?
(A) Increase in Creditors
(B) Increase in Debtors
(C) Increase in Stock
(D) Increase in prepaid expenses
Answer:
(A) Increase in Creditors

Question 29.
In the absence of any Partnership Agreement, the profits or loss of the firm are divided in –
(A) Equally
(B) In Capital Ratio
(C) In different proportions
(D) None of these
Answer:
(A) Equally

Question 30.
Profit & Loss Appropriation Account is prepared to –
(A) Create Reserve Fund
(B) Find out Net Profit
(C) Find out Divisible Profit
(D) None of these
Answer:
(C) Find out Divisible Profit

Question 31.
Which one is not the feature of partnership ?
(A) Agreement
(B) Sharing of profit
(C) Limited Liability
(D) Two or more than two persons
Answer:
(C) Limited Liability

Question 32.
Which accounts are opened when the capitals arc fixed ?
(A) Only Capital Accounts
(B) Only Current Accounts
(C) Liability Accounts
(D) Capital and Current Accounts
Answer:
(D) Capital and Current Accounts

Question 33.
Interest on advance given to the firm by partners is –
(A) An appropriation
(B) A gain
(C) A charge
(D) None of these
Answer:
(C) A charge

Question 34.
Partnership Agreement is called –
(A) Prospectus
(B) Articles of Association
(C) Principles of Partnership
(D) Partnership Deed
Answer:
(D) Partnership Deed

Question 35.
Excess of credit side over the debit side in Revaluation Account is –
(A) Profit
(B) Loss
(C) Receipt
(D) Expenses
Answer:
(A) Profit

Question 36.
A, B and C are partners in a firm. If D is admitted as a new partner –
(A) Old firm is dissolved
(B) Old firm and old partnership are dissolved
(C) Old partnership is reconstituted
(D) None of these
Answer:
(C) Old partnership is reconstituted

Question 37.
Gaining Ratio- .
(A) New Ratio – Old Ratio
(B) Old Ratio – Sacrificing Ratio
(C) New Ratio – Sacrificing Ratio.
(D) Old Ratio – New Ratio
Answer:
(A) New Ratio – Old Ratio

Question 38.
The excess of average profits over the normal profits are called –
(A) Super profit
(B) Fixed profit
(C) Abnormal profit
(D) Normal profit
Answer:
(A) Super profit

Question 39.
If at the time of admission of new partners, Profit & Loss account balance appears in the books, it will be the transferred to-
(A) Profit & Loss Appropriation A/C
(B) All Partner’s capital A/C
(C) Old Partner’s capital A/C
(D) Revaluation A/C
Answer:
(C) Old Partner’s capital A/C

Question 40.
Share of goodwill brought in cash by the new partner is called –
(A) Assets
(B) Profit
(C) Premium
(D) None of these
Answer:
(C) Premium

Question 41.
A, Band Care sharing profits in the ratio of \(\frac{1}{2}: \frac{1}{3}: \frac{1}{6}, \cdot \mathrm{C}\)
retired, gaining ratio will be –
(A) 2:1
(B) 2:3
(C) 3:2
(D) 1 : 2
Answer:
(C) 3:2

Question 42.
Gaining ratio is calculated :
(A) At the time of admission of a new partner
(B) At the time of retirement of a partner
(C) On the dissolution of a partnership firm
(D) None of these
Answer:
(B) At the time of retirement of a partner

Question 43.
Goodwill is paid out to the retiring partner in –
(A) Old Profit Sharing Ratio
(B) Capital Ratio
(C) Gaining Ratio
(D) None of these
Answer:
(A) Old Profit Sharing Ratio

Question 44.
Rate of Interest on debenture is-
(A) 12% p.a.
(B) 20% p.a.
(C) Fixed Rate
(D) 15%cp.a.
Answer:
(C) Fixed Rate

Question 45.
Consideration Debenture is –
(A) Profit
(B) Dividend
(C) Interest
(D) None of these
Answer:
(C) Interest

Question 46.
Premium on redemption of Debentures A/C is –
(A) Asset
(B) Expenses
(C) Liability
(D) Revenue
Answer:
(C) Liability

Question 47.
Profit on cancellation of own debenture is –
(A) Revenue Profit
(B) Capital Profit
(C) Operating Profit
(D) Trading Profit
Answer:
(B) Capital Profit

Question 48.
Total amount of liabilities side includes –
(A) Authorized capital
(B) Issued capital
(C) Subscribed capital
(D) Paid-up capital
Answer:
(D) Paid-up capital

Question 49.
Premium on issue of shares is a –
(A) Capital Gain
(B) Capital Loss
(C) General Profit
(D) General Loss
Answer:
(A) Capital Gain

Question 50.
As per table F the maximum rate of interest on calls in advance is –
(A) 8% p.a.
(B) 12% p.a.
(C) 5% p.a.
(D) None of these
Answer:
(B) 12% p.a.