202a - Financial Accounting

07/02/2015
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Dr.G.R.DamodaranCollegeofScience
(Autonomous,affiliatedtotheBharathiarUniversity,recognizedbythe
UGC)Reaccreditedatthe'A'GradeLevelbytheNAACandISO9001:2008
Certified
CRISLrated'A'(TN)forMBAandMIBProgrammes
IB.Com
[20142017]
SemesterII
CoreFINANCIALACCOUNTING202A
MultipleChoiceQuestions.
1.Depreciationisaprocessof_________.
A.valuation.
B.allocation.
C.reduction.
D.appreciation.
ANSWER:B
2.Themainobjectiveofprovidingdepreciationis_______.
A.tocalculatetrueprofit.
B.tocalculatefinancialposition.
C.toreducetaxburden.
D.toreduceprofit.
ANSWER:A
3.Depreciationarisesbecauseof_____.
A.fallinthemarketvalueofanasset.
B.physicalwearandtear.
C.fallinthevalueofmoney.
D.riseinthevalueofmoney.
ANSWER:B
4.Underthestraightlinemethodofchargingdepreciation,depreciation____.
A.increaseseveryyear.
B.decreaseseveryyear.
C.isconstant.
D.fluctuateeveryyear.
ANSWER:C
5.Underthediminishingbalancemethoddepreciationiscalculatedon____.
A.originalvalue.
B.writtendownvalue.
C.scrapvalue.
D.marketvalue.
ANSWER:B
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6.Theamountofdepreciationchargedonmachinerywillbedebitedto_____.
A.machineryaccount.
B.depreciationaccount.
C.cashaccount.
D.bankaccount.
ANSWER:B
7.Lossonthesaleofmachineryshouldbewrittenoffagainst____.
A.sharepremiumaccount.
B.salesaccount.
C.depreciationfundaccount.
D.generalreserveaccount.
ANSWER:C
8.Theannualinstallmenttodepreciationfundforreplacementofafixedassetis______.
A.chargeagainstprofit.
B.anappropriationofprofits.
C.chargeagainstreserve.
D.chargeagainstcash.
ANSWER:A
9.Depreciationisprovidedon________.
A.currentasset.
B.fixedassets.
C.fictitiousassets.
D.investment.
ANSWER:B
10.Thepermanent,continuingandgradualshrinkageinthebookvalueofafixedassetiscalled
_______.
A.depreciation.
B.appreciation.
C.reduction.
D.computation.
ANSWER:A
11.Depreciationischargedonthe_________.
A.marketvalue.
B.Depreciablevalue.
C.purchasevalue.
D.salevalue.
ANSWER:B
12.Depreciationischargedon_________.
A.continuousbasis.
B.temporarybasis.
C.dailybasis.
D.monthlybasis.
ANSWER:A
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13.Lossofusefulnessoccasionedbyimprovedproductionmethodsisknownas_______.
A.physicaldeterioration.
B.obsolescence.
C.disuse.
D.inadequacy.
ANSWER:B
14.Mines,quarries,oilfieldsandforestareexampleof_______.
A.fixedassets.
B.currentassets.
C.wastingassets.
D.intangibleassets.
ANSWER:C
15.Depreciationappliesto________.
A.currentassets.
B.wastingassets.
C.intangibleassets.
D.fixedassets.
ANSWER:D
16.Depletionappliesto________.
A.currentassets.
B.wastingassets.
C.intangibleassets.
D.fixedassets.
ANSWER:B
17.Amortizationappliesto________.
A.currentassets.
B.wastingassets.
C.intangibleassets.
D.fixedassets.
ANSWER:C
18.Estimatedsalevalueoftheassetattheendofitseconomiclifeisknownas_____.
A.purchasevalue.
B.marketvalue.
C.writtendownvalue.
D.residualvalue.
ANSWER:D
19.Provisionfordepreciationaccountappearsonthe_______.
A.Assetside.
B.Liabilityside.
C.P&Laccountdebitside.
D.P&Laccountcreditside.
ANSWER:B
20.Iftheassetissold,theprovisionfordepreciationrelatingtotheassetsoldistransferredto
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_______.
A.assetaccount.
B.liabilityaccount.
C.P&Laccount.
D.tradingaccount.
ANSWER:A
21.Theassetaccountappearsinthebooksatoriginalcostwhena______.
A.P&Laccountismaintained.
B.balancesheetismaintained.
C.provisionfordepreciationaccountismaintained.
D.provisionfordepreciationaccountisnotmaintained.
ANSWER:C
22.Thevalueofassetcanbereducedtozerounderthismethod_____.
A.straightlinemethod.
B.writtendownvaluemethod.
C.annuitymethod.
D.depreciationfundmethod.
ANSWER:A
23.Thebalanceintheassetaccountwillnotbereducedtozerounderthismethod_____.
C.annuitymethod.
ANSWER:B
24.Incometaxauthoritiesrecognizethismethod______.
C.annuitymethod.
ANSWER:B
25.Underwhichmethodofdepreciation,theearlieryearofthelifeoftheasset,profitsaremore
_____.
C.annuitymethod.
ANSWER:A
26.Straightlinemethodisalsocalled_________.
A.writtendownvaluemethod.
B.annuitymethod.
C.depreciationfundmethod.
D.Fixedinstallmentmethod.
ANSWER:D
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27.Diminishingbalancemethodisalsocalled_________.
B.annuitymethod.
ANSWER:A
28.Reducinginstallmentmethodisalsocalled__________.
C.annuitymethod.
ANSWER:B
29.Writtendownvaluemethodisalsocalled________.
A.diminishingbalancemethod.
B.annuitymethod.
ANSWER:A
30.Straightlinemethodisalsocalled_______.
B.annuitymethod.
C.originalcostmethod.
ANSWER:C
31.Underannuitymethodtheamountofdepreciationisfoundoutfrom_____.
A.logtables.
B.sinkingfundtables.
C.annuitytables.
D.presentvaluetables.
ANSWER:C
32.Depreciationfundisalsocalled______.
A.reservefund.
B.compensationfund.
C.workersfund.
D.sinkingfund.
ANSWER:D
33.Underdepreciationfundmethod,theamountofdepreciationiscalculatedwithreferenceto
________.
A.logtables
B.sinkingfundtables
C.annuitytables
D.presentvaluetables
ANSWER:B
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34.Underdepreciationfundmethoddepreciationischargedto______.
A.profitandlossaccount.
B.tradingaccount.
C.balancesheet.
D.p&lappropriationaccount.
ANSWER:A
35.Underwhichmethod,apolicyistakenforamountoftheassettobereplaced____.
A.annuitymethod
B.insurancepolicymethod
C.fixedinstallmentmethod
D.reducingbalancemethod
ANSWER:B
36.Underinsurancepolicymethodthepremiumispaidinthe__________.
A.beginningofeachyear.
B.endofeachyear.
C.beginningofeachmonth.
D.endofeachmonth.
ANSWER:A
37.Thedifferencebetweenthebookvalueatthebeginningandattheend(revaluationamount)is
__________.
A.depreciation.
B.appreciation.
C.reduction.
D.computation.
ANSWER:A
38.Thedifferencebetweenthebookvalueatthebeginningandattheend(revaluationamount)is
depreciationandchargedto__________.
A.profitandlossaccount.
B.tradingaccount.
C.balancesheet.
D.p&lappropriationaccount.
ANSWER:A
39.Depletionmethodisalsocalled_________.
A.annuitymethod.
B.insurancepolicymethod.
C.outputmethod.
D.reducingbalancemethod.
ANSWER:C
40.Expenseswhichcanbedirectlyidentifiedwithorincurredforparticulardepartmentarecalled
__________.
A.directexpenses..
B.indirectexpenses.
C.monthlyexpenses.
D.weeklyexpenses.
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ANSWER:A
41.Expenseswhichcannotbeidentifiedwithaparticulardepartmentarecalled_______.
A.directexpenses.
B.indirectexpenses.
C.monthlyexpenses.
D.weeklyexpenses.
ANSWER:B
42.Sellingexpensesshouldbedividedamongthedifferentdepartmentonthebasisof_______.
A.lightpoints.
B.H.Pofmachine.
C.salesratio.
D.floorarea.
ANSWER:C
43.Rentandratesshouldbedividedamongthedifferentdepartmentsonthebasisof____.
A.lightpoints.
B.H.Pofmachine.
C.salesratio.
D.floorarea.
ANSWER:C
44.Fireinsuranceandrepairsonassetsshouldbedividedamongthedifferentdepartmentsonthebasis
of_________.
A.lightpoints.
B.H.Pofmachine.
C.valueofeachassets.
D.floorarea.
ANSWER:C
45.Repairstobuildings,maintenanceofpremisesshouldbedividedamongthedifferentdepartments
onthebasisof_________.
A.lightpoints.
B.H.Pofmachine.
C.salesratio.
D.floorarea.
ANSWER:D
46.Lightingexpensesshouldbedividedamongthedifferentdepartmentsonthebasisof_________.
A.lightpoints.
B.H.Pofmachine.
C.salesratio.
D.floorarea.
ANSWER:A
47.Carriageinwardexpensesshouldbedividedamongthedifferentdepartmentsonthebasisof
___________.
A.lightpoints.
B.purchasevalue.
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C.salesratio.
D.floorarea.
ANSWER:B
48.Powerexpensesshouldbedividedamongthedifferentdepartmentsonthebasisof_____.
A.lightpoints.
B.H.Pofmachine.
C.salesratio.
D.floorarea.
ANSWER:B
49.Workmen'samenitiesandwelfareexpensesshouldbedividedamongthedifferentdepartmentson
thebasisof____________.
A.numberofworkerineachdepartment.
B.numberofmachinesineachdepartment.
C.wagesofeachdepartment.
D.floorareaoccupiedbyeachdepartment.
ANSWER:A
50.ESI,PFpayablebyemployershouldbedividedamongthedifferentdepartmentsonthebasisof
________.
A.numberofworkerineachdepartment.
B.numberofmachinesineachdepartment.
C.wagesofeachdepartment.
D.floorareaoccupiedbyeachdepartment.
ANSWER:C
51.Factorymanger'ssalaryshouldbedividedamongthedifferentdepartmentsonthebasisof
________________.
A.timedevotedtoeachdepartment.
B.timespentineachdepartment.
C.timeassignedtoeachdepartment.
D.timewastedineachdepartment.
ANSWER:A
52.Indirectexpensesisalsocalled____________.
A.primecost.
B.commonexpenses.
C.directexpenses.
D.managementexpenses.
ANSWER:B
53.Indirectexpensesisalsocalled_____________.
A.primecost.
B.managementexpenses.
C.jointexpenses.
D.notionalcost.
ANSWER:C
54.Expenseswhichcannotbeapportionedtodepartmentmustbeshowninthe_____.
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A.balancesheet.
B.tradingaccount.
C.P&Laccount.
D.P&LAppropriationaccount.
ANSWER:C
55.Whengoodsaretransferredfromonedepartmenttootherdepartment,theyarecalled__________.
A.interdepartmentaltransfers.
B.outerdepartmentaltransfers.
C.notatransfer.
D.regulartransfer.
ANSWER:A
56.Whengoodsaretransferredfromonedepartmenttoother,thedepartmenttransferringthegoods
shouldbe___________.
A.debited.
B.credited.
C.added.
D.subtracted.
ANSWER:B
57.Whengoodsaretransferredfromonedepartmenttoother,thedepartmenttransferringthegoods
shouldbecreditedanddepartmentreceivingthegoodsshouldbe_________.
A.debited.
B.credited.
C.added.
D.subtracted.
ANSWER:A
58.Indepartmentalaccountsexpenseslikedirectorfees,interestistransferredto______.
A.balancesheet.
B.tradingaccount.
C.generalP&Laccount.
D.P&LAppropriationaccount.
ANSWER:C
59.Thedepartmentalaccountingenablesabusinessfirmtomaximize_________.
A.profit.
B.losses.
C.cash.
D.assets.
ANSWER:A
60.Branchwhichdoesnotmaintainitsownsetofbooksis______________.
A.dependentbranch.
B.independentbranch.
C.foreignbranch.
D.localbranch.
ANSWER:A
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61.Thebusinesspoliciesandtheadministrationofabrancharewhollycontrolledbytheheadoffice
thetypeofbranchis__________.
A.independentbranch.
B.dependentbranch.
C.localbranch.
D.foreignbranch.
ANSWER:B
62.Abranchsetupmerelyforbookingorderswhichareexecutedbyheadofficeis____.
A.dependentbranch.
B.independentbranch.
C.foreignbranch.
D.localbranch.
ANSWER:A
63.Branchesnotkeepingfullsystemofaccountingare________.
B.dependentbranch.
C.localbranch.
D.foreignbranch.
ANSWER:B
64.Allbranchexpensessuchasrent,salary,arepaidbytheheadofficeincaseof_____.
B.localbranch.
C.localbranch.
D.dependentbranch.
ANSWER:D
65.Dependentbranchmake_______.
A.onlycashsales.
B.onlycreditsales.
C.cashandcreditsales.
D.installmentsales.
ANSWER:C
66.Understockanddebtorssystemtheheadofficeopens_________.
A.branchadjustmentaccount.
B.branchdebtorsaccount.
C.branchcreditorsaccount.
D.branchcashaccount.
ANSWER:A
67.Inbranchaccount,goodssentbybranchXtobranchY,willbedebitedto_______.
A.branchk.
B.branchx.
C.branchz.
D.branchy.
ANSWER:D
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68.Underbranchaccountsdebtorssystem,thedepreciationofanassetis_______.
A.showindebtorsaccount.
B.shownindebitsideofbranchaccount.
C.notshowninbranchaccount.
D.shownincreditsideofbranchaccount.
ANSWER:C
69.Underbranchaccountsdebtorssystem,openingbalanceofassetsarerecordedin____.
A.creditside.
B.debitside.
C.firstcreditanddebitside.
D.firstdebitandcreditside.
ANSWER:A
70.Underbranchaccountsdebtorssystem,closingbalanceofassetsarerecordedin________.
A.creditside.
B.debitside.
C.firstcreditanddebitside.
D.firstdebitandcreditside.
ANSWER:A
71.Underbranchaccountsdebtorssystem,openingbalanceofliabilitiesarerecordedin___________.
A.firstcreditanddebitside.
B.firstdebitandcreditside.
C.creditside.
D.debitside.
ANSWER:C
72.Underbranchaccountsdebtorssystem,closingbalanceofliabilitiesarerecordedin_________.
A.firstcreditanddebitside.
B.firstdebitandcreditside.
C.creditside.
D.debitside.
ANSWER:D
73.Underbranchaccountsdebtorssystem,goodssenttobranchaccountisrecordedin_________.
A.debitside.
B.creditside.
C.assetside.
D.liabilitiesside.
ANSWER:A
74.Underbranchaccountsdebtorssystem,loadingongoodssenttobranchadjustedin________.
A.debitside.
B.creditside.
C.assetside.
D.liabilitiesside.
ANSWER:B
75.Underbranchaccountsdebtorssystem,baddebts,discountallowedtodebtorsis________.
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A.shownindebitside.
B.shownincreditside.
C.showninassetside.
D.notshown.
ANSWER:D
76.Underbranchaccountsdebtorssystem,bothcashandcreditsalesare_______.
A.shownindebitside.
B.shownincreditside.
C.showninassetside.
D.notshown.
ANSWER:D
77.Thedifferencebetweengoodssentbyheadofficeandreceivedbythebranchisknownas
___________.
A.goodsintransit.
B.goodsingodown.
C.goodsinproduction.
D.goodsinwarehouse.
ANSWER:A
78.Understockanddebtorssystemofbranchaccount,branchadjustmentaccountisopenedwhen
goodssenttobranchisat________.
A.costprice.
B.invoiceprice.
C.marketprice.
D.normalprice.
ANSWER:B
79.Understockanddebtorssystemofbranchaccount,theaccountpreparedtorecordallthe
transactionsrelatingtobranchdebtorsisrecordedin________.
A.branchexpensesaccount.
B.branchadjustmentaccount.
C.branchdebtorsaccount.
D.branchcreditorsaccount.
ANSWER:C
80.Inpuresingleentrywhichaccountisrecorded?
A.Personal.
B.Real.
C.Nominal.
D.Asset.
ANSWER:A
81.Allpersonal,realandnominalaccountsareopenedin________.
A.singleentrysystem.
B.doubleentrysystem.
C.accrualsystem.
D.mercantilesystem.
ANSWER:B
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82.Onlypersonalaccountandcashaccountareopenedin________.
C.accrualsystem.
D.mercantilesystem.
ANSWER:A
83.Trialbalancecanbepreparedin_________.
C.accrualsystem.
D.mercantilesystem.
ANSWER:A
84.Trialbalancecannotbepreparedin_____.
C.accrualsystem.
D.mercantilesystem.
ANSWER:A
85.Balancesheetcanbeprepared________.
A.insingleentrysystem.
B.indoubleentrysystem.
C.withthehelpofcashbook.
D.withthehelpofbankaccount.
ANSWER:A
86.Balancesheetcannotbeprepared________.
A.insingleentrysystem.
B.indoubleentrysystem.
C.withthehelpofcashbook.
D.withthehelpofbankaccount.
ANSWER:A
87.Insingleentrysystem,networthmethodisalsocalled________.
A.doubleentrysystem.
B.mercantilesystem.
C.statementofaffairsmethod.
D.accrualsystem.
ANSWER:C
88.Differencebetweennetworthatthebeginningoftheyearandattheendoftheyearrepresents
_________.
A.capitalbalance.
B.cashbalance.
C.passbookbalance.
D.profitorloss.
ANSWER:D
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89.Openingcapitalcanbefoundbypreparing________.
A.cashbook.
B.bankaccount.
C.statementofaffairs.
D.statementofbankpassbook.
ANSWER:C
90.Astatementofaffairsisjustlikea_________.
A.balancesheet.
B.profitandlossaccount.
C.cashaccount.
D.tradingaccount.
ANSWER:A
91.Instatementofaffairsassetsareshownonthe__________.
A.righthandside.
B.lefthandside.
C.lefthandsidetop.
D.lefthandsidebottom.
ANSWER:A
92.Instatementofaffairsliabilitiesareshownonthe__________.
A.righthandside.
B.lefthandside.
C.righthandsidetop.
D.righthandsidebottom.
ANSWER:B
93.Undersingleentrysystem,closingcapitalcanbefoundbypreparingastatementofaffairs
____________.
A.attheendoftheyear.
B.atthebeginningoftheyear.
C.attheendofeverymonth.
D.attheendofeveryquarter.
ANSWER:A
94.Undersingleentrysystem,openingcapitalcanbefoundbypreparingastatementofaffairs
____________.
A.attheendoftheyear.
B.atthebeginningoftheyear.
C.attheendofeverymonth.
D.attheendofeveryquarter.
ANSWER:B
95.Undersingleentrysysteminnetworthmethod,drawingsisaddedwith_______.
A.openingcapital.
B.closingcapital.
C.additionalcapital.
D.drawings.
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ANSWER:B
96.Undersingleentrysysteminnetworthmethod,additionalcapitalisdeductedwith__________.
A.openingcapital.
B.closingcapital.
D.drawings.
ANSWER:B
97.Undersingleentrysysteminnetworthmethod,openingcapitalissubtractedfrom_________.
A.openingcapital.
B.closingcapital.
D.drawings.
ANSWER:B
98.Undersingleentrysysteminconversionmethod,atotaldebtorsaccountispreparedtofindout
___________.
A.creditsales.
B.cashsales.
C.creditpurchases.
D.cashpurchases.
ANSWER:A
99.Undersingleentrysysteminconversionmethod,atotaldebtorsaccountispreparedtofindout
__________.
A.creditpurchases.
B.cashpurchases.
C.purchasereturns.
D.closingbalanceofdebtors.
ANSWER:D
100.Debtorsaccountisa__________.
A.personalaccount.
B.realaccount.
C.nominalaccount.
D.cashaccount.
ANSWER:A
101.Totalcreditorsaccountispreparedtofindout___________.
A.creditsales.
B.cashsales.
C.creditpurchases.
D.cashpurchases.
ANSWER:C
102.Totalcreditorsaccountispreparedtofindout_______.
A.openingbalanceofdebtors.
B.closingbalanceofdebtors.
C.openingbalanceofcreditors.
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D.closingbalanceofcreditors.
ANSWER:D
103.Abillsreceivableaccountispreparedtoascertainbills_______.
A.accepted.
B.received.
C.drawn.
D.endorsed.
ANSWER:B
104.Abillspayableaccountispreparedtoascertainbills__________.
A.accepted.
B.received.
C.drawn.
D.endorsed.
ANSWER:A
105.Billsreceivabledishonoredwillbepostedto_______sideofdebtorsaccount.
A.debit.
B.credit.
C.outside.
D.inside.
ANSWER:A
106.Billsreceivabledishonoredwillbepostedin___________.
A.debit.
B.credit.
C.outside.
D.inside.
ANSWER:B
107.Transfertocreditorsaccountwillbepostedinwhichsideofdebtorsaccount?
A.Debit.
B.Credit.
C.Outside.
D.Inside.
ANSWER:B
108.Transfertocreditorsaccountwillbepostedinwhichsideofcreditorsaccount?
A.Debit.
B.Credit.
C.Outside.
D.Inside.
ANSWER:A
109.Billspayabledishonouredwillbepostedinwhichsideofcreditorsaccount?
A.Debit.
B.Credit.
C.Outside.
D.Inside.
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ANSWER:D
110.Billspayabledishonouredwillbepostedinwhichsideofbillspayableaccount?
A.Debit.
B.Credit.
C.Outside.
D.Inside.
ANSWER:C
111.Openingbalanceofdebtorswillbepostedinwhichsideofdebtorsaccount?
A.Debit.
B.Credit.
C.Outside.
D.Inside.
ANSWER:C
112.Closingbalanceofdebtorswillbepostedinwhichsideofdebtorsaccount?
A.Debit.
B.Credit.
C.Outside.
D.Inside.
ANSWER:D
113.Closingbalanceofcreditorswillbepostedinwhichsideofcreditorsaccount?
A.Debit.
B.Credit.
C.Outside.
D.Inside.
ANSWER:A
114.Openingbalanceofcreditorswillbepostedinwhichsideofcreditorsaccount?
A.Debit.
B.Credit.
C.Outside.
D.Inside.
ANSWER:D
115.Cashaccountopeningbalancewillappearin_______.
A.debit.
B.credit.
C.outside.
D.inside.
ANSWER:A
116.Cashaccountclosingbalancewillappearin__________.
A.debit.
B.credit.
C.outside.
D.inside.
ANSWER:B
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117.Billspayableaccountopeningbalancewillappearin____________.
A.debit.
B.credit.
C.outside.
D.inside.
ANSWER:D
118.Billspayableaccountclosingbalancewillappearin____________.
A.debit.
B.credit.
C.outside.
D.inside.
ANSWER:C
119.Billsreceivableaccountopeningbalancewillappearin_________.
A.debit.
B.credit.
C.outside.
D.inside.
ANSWER:A
120.Anagreementofhiringwithoptiontobuyis____________.
A.installmentsystem.
B.creditsystem.
C.hirepurchasesystem.
D.cashsystem.
ANSWER:C
121.Anagreementofsaleismadeunder________.
A.installmentsystem.
B.creditsystem.
C.hirepurchasesystem.
D.cashsystem.
ANSWER:A
122.Underwhichsystem,ownershipistransferredonpaymentoffinalinstallment?
A.Installmentsystem.
B.Creditsystem.
C.Hirepurchasesystem.
D.Cashsystem.
ANSWER:C
123.Underwhichsystemownershipistransferredonsigningoftheagreement?
A.Installmentsystem.
B.Creditsystem.
C.Hirepurchasesystem.
D.Cashsystem.
ANSWER:A
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124.Underhirepurchasesystemthebuyeriscalled_________.
A.buyer.
B.hirer.
C.hirevendor.
D.debtor.
ANSWER:B
125.Underhirepurchasesystemtheselleriscalled_________.
A.buyer.
B.hirer.
C.hirevendor.
D.debtor.
ANSWER:C
126.Underhirepurchasesystemtherelationshipofhirerandhirevendoris______.
A.buyerandseller.
B.bailorandbailee.
C.pawnerandpawnee.
D.debtorandcreditor.
ANSWER:B
127.Underinstallmentsystemtherelationshipbetweenthebuyerandselleristhatofa_________.
A.buyerandseller.
B.bailorandbailee.
C.pawnerandpawnee.
D.debtorandcreditor.
ANSWER:D
128.Underhirepurchasesystem,theriskoflossisborneby____________.
A.buyer.
B.hirer.
C.hirevendor.
D.debtor.
ANSWER:C
129.Underinstallmentsystemtheriskoflossisborneby________.
A.buyer.
B.hirer.
C.hirevendor.
D.debtor.
ANSWER:A
130.Underhirepurchasesystemwhohastherightofsell__________.
A.buyer.
B.hirer.
C.hirevendor.
D.debtor.
ANSWER:C
131.Underhirepurchasesystem,ifinstallmentisnotpaidthehirevendorhasrightto___________.
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07/02/2015
A.sellthegoods.
B.repossessionofgoods.
C.repairthegoods.
D.purchasethegoods.
ANSWER:B
132.Underhirepurchasesystem,theagreementcanbe_________.
A.renewed.
B.registered.
C.terminated.
D.endorsed.
ANSWER:C
133.Hirepurchasesystemisgovernedby___________.
A.HirePurchaseAct1972.
B.HirePurchaseAct1973.
C.HirePurchaseAct1974.
D.HirePurchaseAct1975.
ANSWER:A
134.Installmentsystemisgovernedby__________.
A.HirePurchaseAct.
B.SaleofGoodsAct.
C.InstallmentAct.
D.PropertiesRegistrationAct.
ANSWER:B
135.Underhirepurchasesystem,theretailpriceofthearticlesiscalled________.
A.MRP.
B.wholesaleprice.
C.retailprice.
D.cashprice.
ANSWER:C
136.Cashpriceplusinterestis_________.
A.installmentprice.
B.hirepurchaseprice.
C.maximumretailprice.
D.retailprice.
ANSWER:B
137.Theadvanceamountunderhirepurchasesystemiscalled__________.
A.cashprice.
B.retailprice.
C.interest.
D.downpayment.
ANSWER:D
138.Underhirepurchasesystem,eachinstallmentistreatedas__________.
A.interest.
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B.cashprice.
C.hirecharges.
D.advance.
ANSWER:C
139.Underhirepurchasesystem,interestiscalculatedon_______.
A.cashprice.
B.hirepurchaseprice.
C.MRP.
D.outstandingbalance.
ANSWER:D
140.Ifthehirepurchaserfailstomakepaymentofanyinstallment,itiscalled_______.
A.default.
B.repossession.
C.sale.
D.purchase.
ANSWER:A
141.Ifthehirevendormaytakeawayallthegoodsonwhichthereisdefaultofinstallmentitiscalled
____________.
A.repossession.
B.partialrepossession.
C.completerepossession.
D.purchase.
ANSWER:C
142.ThehirevendortakesawayonlyaportionofthegoodsonwhichthereisdefaultofInstallmentsit
iscalled_________.
A.repossession.
B.partialrepossession.
C.completerepossession.
D.purchase.
ANSWER:B
143.Inthebooksofhirer,forpaymentofdownpayment,hirevendoraccountwillbe_______.
A.debited.
B.credited.
C.rectified.
D.reversed.
ANSWER:A
144.Inthebooksofhirer,forpaymentofinstallmenthirevendoraccountwillbe___________.
A.debited.
B.credited.
C.rectified.
D.reversed.
ANSWER:A
145.Inthebooksofhirer,forinterestdueattheendoftheyearhirevendoraccountwillbe_______.
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A.debited.
B.credited.
C.rectified.
D.reversed.
ANSWER:B
146.InthebooksofHirer,theinterestanddepreciationaccountwillbetransferredto______.
A.Tradingaccount.
B.P&Laccount.
C.P&Lappropriationaccount.
D.Balancesheet.
ANSWER:B
147.Inthebooksofhirer,whentheassetisrepossessedhirevendoraccountwillbe______.
A.debited.
B.credited.
C.rectified.
D.reversed.
ANSWER:A
148.Inthebooksofhirer,whentheassetisrepossessed,assetaccountwillbe______.
A.debited.
B.credited.
C.rectified.
D.reversed.
ANSWER:B
149.Inthebooksofhirevendor,whichaccountwillbedebitedforhiresales_______.
A.buyer.
B.hirer.
C.hirevendor.
D.debtor.
ANSWER:B
150.Fireinsuranceprovidescoverfor_________.
A.Tangibleassets.
B.Intangibleassets.
C.Fictitiousassets.
D.Noneoftheabove.
ANSWER:A
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MohanaRanjaniK.
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