CBSE Questions for Class 10 Elements Of Book Keeping And Accountancy Final Accounts Quiz 1 - MCQExams.com

Steps of preparing Final Accounts is -
(a) Trading Account 
(b) Profit and Loss Account
(c) Balance Sheet
  • True
  • False
Economic order quantity is that quantity at which cost of holding and carrying inventory is ________________.
  • Maximum and equal
  • Minimum and equal
  • It can be maximum or minimum depending upon case to case
  • Minimum and unequal
Which of the following is not included in cost of inventory?
  • Purchase Cost
  • Transport in Cost
  • Import Duty
  • Selling Costs
A gross profit is transferred to the ____________ side of the profit and loss account.
  • Debit
  • Credit
  • Current
  • Asset
From the following find out the correct equation:
I. A represents opening stock
II. B represents purchases
III. C represents closing stock
IV. D represents cost of goods sold.
  • A$$-$$C$$=$$D$$-$$B
  • A$$+$$B$$=$$D$$-$$C
  • D$$-$$A$$=$$B$$+$$C
  • None of the above
Trading account is prepared to find out __________.
  • Gross profit or loss
  • Net profit or loss
  • Financial position
  • Position of the partners
Carriage outward is charged to _______________.
  • Debit side Profit & Loss a/c
  • Debit side Trading a/c
  • Credit side of Profit & Loss a/c
  • Credit side of Trading a/c
Assets in the beginning of the year Rs. 10,Assets at the end of the year Rs. 18,Drawing during the year Rs. 2,Therefore the profit is equal to ___________.
  • Rs. 6,000
  • Rs. 8,000
  • Rs. 10,000
  • None of the Above
All direct & indirect expenses related to business are charged to the ____________.
  • Profit and loss account
  • Trading account
  • Trading account and profit & loss account
  • Directly to balance sheet
The loss on the sale of old furniture is debited to ________.
  • Profit and Loss Account
  • Furniture Account
  • Trading Account
  • Depreciation Account
Profit and loss account of business shows the _________.
  • Net Profit Earned
  • Gross Profit Earned
  • Balance of all Accounts
  • Capital Employed in Business
If net profits are Rs. 30,000 and expenses not resulting in the application of fund are Rs. 10,000, then the funds from operation will be ___________.
  • Rs. 30,000
  • Rs. 40,000
  • Rs. 10,000
  • Rs. 20,000
 Discount is given to debtors to encourage _________.
  • Discount
  • Bad debts
  • Prompt payments
  • None of the Above
 Provision for discount on debtors is ____________.
  • Credited to profit & loss account
  • Credited to trading account
  • Debited to profit & loss account
  • Debited to trading account
Discount given to debtors is known as _____.
  • Provision for doubtful debts
  • Discount Given
  • Provision for discount on debtors
  • Bad debts
Goods sold on the basis of 'sales or return' should ______________.
  • be included in the stock
  • not be included in the stock
  • not be checked by auditor
  • None of the above
Which of the following methods or inventory valuation results in lower valuation of inventory and low income when Inflation is on the rise?
  • LIFO
  • FIFO
  • Simple average method
  • Weighed average method
 Provision for discount on debtors is created for_____.
  • Good debtor
  • Bad debtor
  • Bad debts
  • Late payment
Net profit is calculated in the __________.
  • Trading A/c
  • Balance sheet
  • Profit & loss A/c
  • Trial balance
Consider the following statements.
I. Incase of the marine insurance, the insurable interest must exist at the time the loss occurs.
II. Incase of fire insurance, insurable interest must exist both at the time of the contract and at the time of loss.
Which of the statements given is/are correct?
  • I only
  • II only
  • Both I and II
  • Neither I nor II
While making an adjustment entry in respect of interest on capital, credit is made to _______________.
  • Capital account
  • Interest on capital account
  • Profit & loss account
  • Interest account
The degree to which the returns of the two securities change together, is reflected by _________.
  • Correlation
  • Leverage
  • Covariance
  • Beta
The interest can be computed on the additional capital __________.
  • from the date on which it was brought into the business
  • from the beginning of year
  • from middle of the year
  • None of the above
Interest on capital is added to______.
  • profit
  • cash
  • capital
  • interest
Manager's Commission is __________ to company.
  • Loss
  • Profit
  • Expense
  • Income
Indicate which of the following is correct ? 
  • Sales - Gross profit - Operating Expenses = Net profit
  • Sales + Gross profit -Operating Expenses = Net profit
  • Gross profit + Operating profit - Cost of goods sold = Net profit
  • Sale - Cost of goods sold - Operating expenses = Net profit
  • None of these
Interest on capital will be ________.
  • debited to profit & loss account
  • credited to profit & loss account
  • debited to trading account
  • credited to trading account
Interest on capital is ________ on business.
  • expense
  • loss
  • profit
  • income
Net profit of a business is Rs. 220 before charging commission. If the manager is entitled to 15% of the profit before charging such commission, the commission will be _____.
  • Rs. 44
  • Rs. 33
  • Rs. 20
  • Rs. 30
Interest is calculated at a given rate of interest on capital as at the _____ of the accounting year.
  • beginning of the year
  • ending of the year
  • additional capital
  • Both A & C
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Practice Class 10 Elements Of Book Keeping And Accountancy Quiz Questions and Answers