07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTIN1/22Dr.G.R.DamodaranCollegeofScience(Autonomous,affiliatedtotheBharathiarUniversity,recognizedbytheUGC)Reaccreditedatthe'A'GradeLevelbytheNAACandISO9001:2008CertifiedCRISLrated'A'(TN)forMBAandMIBProgrammesIB.Com[20142017]SemesterIICoreFINANCIALACCOUNTING202AMultipleChoiceQuestions.1.Depreciationisaprocessof_________.A.valuation.B.allocation.C.reduction.D.appreciation.ANSWER:B2.Themainobjectiveofprovidingdepreciationis_______.A.tocalculatetrueprofit.B.tocalculatefinancialposition.C.toreducetaxburden.D.toreduceprofit.ANSWER:A3.Depreciationarisesbecauseof_____.A.fallinthemarketvalueofanasset.B.physicalwearandtear.C.fallinthevalueofmoney.D.riseinthevalueofmoney.ANSWER:B4.Underthestraightlinemethodofchargingdepreciation,depreciation____.A.increaseseveryyear.B.decreaseseveryyear.C.isconstant.D.fluctuateeveryyear.ANSWER:C5.Underthediminishingbalancemethoddepreciationiscalculatedon____.A.originalvalue.B.writtendownvalue.C.scrapvalue.D.marketvalue.ANSWER:B07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTIN2/226.Theamountofdepreciationchargedonmachinerywillbedebitedto_____.A.machineryaccount.B.depreciationaccount.C.cashaccount.D.bankaccount.ANSWER:B7.Lossonthesaleofmachineryshouldbewrittenoffagainst____.A.sharepremiumaccount.B.salesaccount.C.depreciationfundaccount.D.generalreserveaccount.ANSWER:C8.Theannualinstallmenttodepreciationfundforreplacementofafixedassetis______.A.chargeagainstprofit.B.anappropriationofprofits.C.chargeagainstreserve.D.chargeagainstcash.ANSWER:A9.Depreciationisprovidedon________.A.currentasset.B.fixedassets.C.fictitiousassets.D.investment.ANSWER:B10.Thepermanent,continuingandgradualshrinkageinthebookvalueofafixedassetiscalled_______.A.depreciation.B.appreciation.C.reduction.D.computation.ANSWER:A11.Depreciationischargedonthe_________.A.marketvalue.B.Depreciablevalue.C.purchasevalue.D.salevalue.ANSWER:B12.Depreciationischargedon_________.A.continuousbasis.B.temporarybasis.C.dailybasis.D.monthlybasis.ANSWER:A07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTIN3/2213.Lossofusefulnessoccasionedbyimprovedproductionmethodsisknownas_______.A.physicaldeterioration.B.obsolescence.C.disuse.D.inadequacy.ANSWER:B14.Mines,quarries,oilfieldsandforestareexampleof_______.A.fixedassets.B.currentassets.C.wastingassets.D.intangibleassets.ANSWER:C15.Depreciationappliesto________.A.currentassets.B.wastingassets.C.intangibleassets.D.fixedassets.ANSWER:D16.Depletionappliesto________.A.currentassets.B.wastingassets.C.intangibleassets.D.fixedassets.ANSWER:B17.Amortizationappliesto________.A.currentassets.B.wastingassets.C.intangibleassets.D.fixedassets.ANSWER:C18.Estimatedsalevalueoftheassetattheendofitseconomiclifeisknownas_____.A.purchasevalue.B.marketvalue.C.writtendownvalue.D.residualvalue.ANSWER:D19.Provisionfordepreciationaccountappearsonthe_______.A.Assetside.B.Liabilityside.C.P&Laccountdebitside.D.P&Laccountcreditside.ANSWER:B20.Iftheassetissold,theprovisionfordepreciationrelatingtotheassetsoldistransferredto07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTIN4/22_______.A.assetaccount.B.liabilityaccount.C.P&Laccount.D.tradingaccount.ANSWER:A21.Theassetaccountappearsinthebooksatoriginalcostwhena______.A.P&Laccountismaintained.B.balancesheetismaintained.C.provisionfordepreciationaccountismaintained.D.provisionfordepreciationaccountisnotmaintained.ANSWER:C22.Thevalueofassetcanbereducedtozerounderthismethod_____.A.straightlinemethod.B.writtendownvaluemethod.C.annuitymethod.D.depreciationfundmethod.ANSWER:A23.Thebalanceintheassetaccountwillnotbereducedtozerounderthismethod_____.A.straightlinemethod.B.writtendownvaluemethod.C.annuitymethod.D.depreciationfundmethod.ANSWER:B24.Incometaxauthoritiesrecognizethismethod______.A.straightlinemethod.B.writtendownvaluemethod.C.annuitymethod.D.depreciationfundmethod.ANSWER:B25.Underwhichmethodofdepreciation,theearlieryearofthelifeoftheasset,profitsaremore_____.A.straightlinemethod.B.writtendownvaluemethod.C.annuitymethod.D.depreciationfundmethod.ANSWER:A26.Straightlinemethodisalsocalled_________.A.writtendownvaluemethod.B.annuitymethod.C.depreciationfundmethod.D.Fixedinstallmentmethod.ANSWER:D07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTIN5/2227.Diminishingbalancemethodisalsocalled_________.A.writtendownvaluemethod.B.annuitymethod.C.depreciationfundmethod.D.Fixedinstallmentmethod.ANSWER:A28.Reducinginstallmentmethodisalsocalled__________.A.straightlinemethod.B.writtendownvaluemethod.C.annuitymethod.D.depreciationfundmethod.ANSWER:B29.Writtendownvaluemethodisalsocalled________.A.diminishingbalancemethod.B.annuitymethod.C.depreciationfundmethod.D.Fixedinstallmentmethod.ANSWER:A30.Straightlinemethodisalsocalled_______.A.writtendownvaluemethod.B.annuitymethod.C.originalcostmethod.D.depreciationfundmethod.ANSWER:C31.Underannuitymethodtheamountofdepreciationisfoundoutfrom_____.A.logtables.B.sinkingfundtables.C.annuitytables.D.presentvaluetables.ANSWER:C32.Depreciationfundisalsocalled______.A.reservefund.B.compensationfund.C.workersfund.D.sinkingfund.ANSWER:D33.Underdepreciationfundmethod,theamountofdepreciationiscalculatedwithreferenceto________.A.logtablesB.sinkingfundtablesC.annuitytablesD.presentvaluetablesANSWER:B07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTIN6/2234.Underdepreciationfundmethoddepreciationischargedto______.A.profitandlossaccount.B.tradingaccount.C.balancesheet.D.p&lappropriationaccount.ANSWER:A35.Underwhichmethod,apolicyistakenforamountoftheassettobereplaced____.A.annuitymethodB.insurancepolicymethodC.fixedinstallmentmethodD.reducingbalancemethodANSWER:B36.Underinsurancepolicymethodthepremiumispaidinthe__________.A.beginningofeachyear.B.endofeachyear.C.beginningofeachmonth.D.endofeachmonth.ANSWER:A37.Thedifferencebetweenthebookvalueatthebeginningandattheend(revaluationamount)is__________.A.depreciation.B.appreciation.C.reduction.D.computation.ANSWER:A38.Thedifferencebetweenthebookvalueatthebeginningandattheend(revaluationamount)isdepreciationandchargedto__________.A.profitandlossaccount.B.tradingaccount.C.balancesheet.D.p&lappropriationaccount.ANSWER:A39.Depletionmethodisalsocalled_________.A.annuitymethod.B.insurancepolicymethod.C.outputmethod.D.reducingbalancemethod.ANSWER:C40.Expenseswhichcanbedirectlyidentifiedwithorincurredforparticulardepartmentarecalled__________.A.directexpenses..B.indirectexpenses.C.monthlyexpenses.D.weeklyexpenses.07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTIN7/22ANSWER:A41.Expenseswhichcannotbeidentifiedwithaparticulardepartmentarecalled_______.A.directexpenses.B.indirectexpenses.C.monthlyexpenses.D.weeklyexpenses.ANSWER:B42.Sellingexpensesshouldbedividedamongthedifferentdepartmentonthebasisof_______.A.lightpoints.B.H.Pofmachine.C.salesratio.D.floorarea.ANSWER:C43.Rentandratesshouldbedividedamongthedifferentdepartmentsonthebasisof____.A.lightpoints.B.H.Pofmachine.C.salesratio.D.floorarea.ANSWER:C44.Fireinsuranceandrepairsonassetsshouldbedividedamongthedifferentdepartmentsonthebasisof_________.A.lightpoints.B.H.Pofmachine.C.valueofeachassets.D.floorarea.ANSWER:C45.Repairstobuildings,maintenanceofpremisesshouldbedividedamongthedifferentdepartmentsonthebasisof_________.A.lightpoints.B.H.Pofmachine.C.salesratio.D.floorarea.ANSWER:D46.Lightingexpensesshouldbedividedamongthedifferentdepartmentsonthebasisof_________.A.lightpoints.B.H.Pofmachine.C.salesratio.D.floorarea.ANSWER:A47.Carriageinwardexpensesshouldbedividedamongthedifferentdepartmentsonthebasisof___________.A.lightpoints.B.purchasevalue.07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTIN8/22C.salesratio.D.floorarea.ANSWER:B48.Powerexpensesshouldbedividedamongthedifferentdepartmentsonthebasisof_____.A.lightpoints.B.H.Pofmachine.C.salesratio.D.floorarea.ANSWER:B49.Workmen'samenitiesandwelfareexpensesshouldbedividedamongthedifferentdepartmentsonthebasisof____________.A.numberofworkerineachdepartment.B.numberofmachinesineachdepartment.C.wagesofeachdepartment.D.floorareaoccupiedbyeachdepartment.ANSWER:A50.ESI,PFpayablebyemployershouldbedividedamongthedifferentdepartmentsonthebasisof________.A.numberofworkerineachdepartment.B.numberofmachinesineachdepartment.C.wagesofeachdepartment.D.floorareaoccupiedbyeachdepartment.ANSWER:C51.Factorymanger'ssalaryshouldbedividedamongthedifferentdepartmentsonthebasisof________________.A.timedevotedtoeachdepartment.B.timespentineachdepartment.C.timeassignedtoeachdepartment.D.timewastedineachdepartment.ANSWER:A52.Indirectexpensesisalsocalled____________.A.primecost.B.commonexpenses.C.directexpenses.D.managementexpenses.ANSWER:B53.Indirectexpensesisalsocalled_____________.A.primecost.B.managementexpenses.C.jointexpenses.D.notionalcost.ANSWER:C54.Expenseswhichcannotbeapportionedtodepartmentmustbeshowninthe_____.07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTIN9/22A.balancesheet.B.tradingaccount.C.P&Laccount.D.P&LAppropriationaccount.ANSWER:C55.Whengoodsaretransferredfromonedepartmenttootherdepartment,theyarecalled__________.A.interdepartmentaltransfers.B.outerdepartmentaltransfers.C.notatransfer.D.regulartransfer.ANSWER:A56.Whengoodsaretransferredfromonedepartmenttoother,thedepartmenttransferringthegoodsshouldbe___________.A.debited.B.credited.C.added.D.subtracted.ANSWER:B57.Whengoodsaretransferredfromonedepartmenttoother,thedepartmenttransferringthegoodsshouldbecreditedanddepartmentreceivingthegoodsshouldbe_________.A.debited.B.credited.C.added.D.subtracted.ANSWER:A58.Indepartmentalaccountsexpenseslikedirectorfees,interestistransferredto______.A.balancesheet.B.tradingaccount.C.generalP&Laccount.D.P&LAppropriationaccount.ANSWER:C59.Thedepartmentalaccountingenablesabusinessfirmtomaximize_________.A.profit.B.losses.C.cash.D.assets.ANSWER:A60.Branchwhichdoesnotmaintainitsownsetofbooksis______________.A.dependentbranch.B.independentbranch.C.foreignbranch.D.localbranch.ANSWER:A07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTI 10/2261.Thebusinesspoliciesandtheadministrationofabrancharewhollycontrolledbytheheadofficethetypeofbranchis__________.A.independentbranch.B.dependentbranch.C.localbranch.D.foreignbranch.ANSWER:B62.Abranchsetupmerelyforbookingorderswhichareexecutedbyheadofficeis____.A.dependentbranch.B.independentbranch.C.foreignbranch.D.localbranch.ANSWER:A63.Branchesnotkeepingfullsystemofaccountingare________.A.independentbranch.B.dependentbranch.C.localbranch.D.foreignbranch.ANSWER:B64.Allbranchexpensessuchasrent,salary,arepaidbytheheadofficeincaseof_____.A.independentbranch.B.localbranch.C.localbranch.D.dependentbranch.ANSWER:D65.Dependentbranchmake_______.A.onlycashsales.B.onlycreditsales.C.cashandcreditsales.D.installmentsales.ANSWER:C66.Understockanddebtorssystemtheheadofficeopens_________.A.branchadjustmentaccount.B.branchdebtorsaccount.C.branchcreditorsaccount.D.branchcashaccount.ANSWER:A67.Inbranchaccount,goodssentbybranchXtobranchY,willbedebitedto_______.A.branchk.B.branchx.C.branchz.D.branchy.ANSWER:D07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTI 11/2268.Underbranchaccountsdebtorssystem,thedepreciationofanassetis_______.A.showindebtorsaccount.B.shownindebitsideofbranchaccount.C.notshowninbranchaccount.D.shownincreditsideofbranchaccount.ANSWER:C69.Underbranchaccountsdebtorssystem,openingbalanceofassetsarerecordedin____.A.creditside.B.debitside.C.firstcreditanddebitside.D.firstdebitandcreditside.ANSWER:A70.Underbranchaccountsdebtorssystem,closingbalanceofassetsarerecordedin________.A.creditside.B.debitside.C.firstcreditanddebitside.D.firstdebitandcreditside.ANSWER:A71.Underbranchaccountsdebtorssystem,openingbalanceofliabilitiesarerecordedin___________.A.firstcreditanddebitside.B.firstdebitandcreditside.C.creditside.D.debitside.ANSWER:C72.Underbranchaccountsdebtorssystem,closingbalanceofliabilitiesarerecordedin_________.A.firstcreditanddebitside.B.firstdebitandcreditside.C.creditside.D.debitside.ANSWER:D73.Underbranchaccountsdebtorssystem,goodssenttobranchaccountisrecordedin_________.A.debitside.B.creditside.C.assetside.D.liabilitiesside.ANSWER:A74.Underbranchaccountsdebtorssystem,loadingongoodssenttobranchadjustedin________.A.debitside.B.creditside.C.assetside.D.liabilitiesside.ANSWER:B75.Underbranchaccountsdebtorssystem,baddebts,discountallowedtodebtorsis________.07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTI 12/22A.shownindebitside.B.shownincreditside.C.showninassetside.D.notshown.ANSWER:D76.Underbranchaccountsdebtorssystem,bothcashandcreditsalesare_______.A.shownindebitside.B.shownincreditside.C.showninassetside.D.notshown.ANSWER:D77.Thedifferencebetweengoodssentbyheadofficeandreceivedbythebranchisknownas___________.A.goodsintransit.B.goodsingodown.C.goodsinproduction.D.goodsinwarehouse.ANSWER:A78.Understockanddebtorssystemofbranchaccount,branchadjustmentaccountisopenedwhengoodssenttobranchisat________.A.costprice.B.invoiceprice.C.marketprice.D.normalprice.ANSWER:B79.Understockanddebtorssystemofbranchaccount,theaccountpreparedtorecordallthetransactionsrelatingtobranchdebtorsisrecordedin________.A.branchexpensesaccount.B.branchadjustmentaccount.C.branchdebtorsaccount.D.branchcreditorsaccount.ANSWER:C80.Inpuresingleentrywhichaccountisrecorded?A.Personal.B.Real.C.Nominal.D.Asset.ANSWER:A81.Allpersonal,realandnominalaccountsareopenedin________.A.singleentrysystem.B.doubleentrysystem.C.accrualsystem.D.mercantilesystem.ANSWER:B07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTI 13/2282.Onlypersonalaccountandcashaccountareopenedin________.A.singleentrysystem.B.doubleentrysystem.C.accrualsystem.D.mercantilesystem.ANSWER:A83.Trialbalancecanbepreparedin_________.A.singleentrysystem.B.doubleentrysystem.C.accrualsystem.D.mercantilesystem.ANSWER:A84.Trialbalancecannotbepreparedin_____.A.singleentrysystem.B.doubleentrysystem.C.accrualsystem.D.mercantilesystem.ANSWER:A85.Balancesheetcanbeprepared________.A.insingleentrysystem.B.indoubleentrysystem.C.withthehelpofcashbook.D.withthehelpofbankaccount.ANSWER:A86.Balancesheetcannotbeprepared________.A.insingleentrysystem.B.indoubleentrysystem.C.withthehelpofcashbook.D.withthehelpofbankaccount.ANSWER:A87.Insingleentrysystem,networthmethodisalsocalled________.A.doubleentrysystem.B.mercantilesystem.C.statementofaffairsmethod.D.accrualsystem.ANSWER:C88.Differencebetweennetworthatthebeginningoftheyearandattheendoftheyearrepresents_________.A.capitalbalance.B.cashbalance.C.passbookbalance.D.profitorloss.ANSWER:D07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTI 14/2289.Openingcapitalcanbefoundbypreparing________.A.cashbook.B.bankaccount.C.statementofaffairs.D.statementofbankpassbook.ANSWER:C90.Astatementofaffairsisjustlikea_________.A.balancesheet.B.profitandlossaccount.C.cashaccount.D.tradingaccount.ANSWER:A91.Instatementofaffairsassetsareshownonthe__________.A.righthandside.B.lefthandside.C.lefthandsidetop.D.lefthandsidebottom.ANSWER:A92.Instatementofaffairsliabilitiesareshownonthe__________.A.righthandside.B.lefthandside.C.righthandsidetop.D.righthandsidebottom.ANSWER:B93.Undersingleentrysystem,closingcapitalcanbefoundbypreparingastatementofaffairs____________.A.attheendoftheyear.B.atthebeginningoftheyear.C.attheendofeverymonth.D.attheendofeveryquarter.ANSWER:A94.Undersingleentrysystem,openingcapitalcanbefoundbypreparingastatementofaffairs____________.A.attheendoftheyear.B.atthebeginningoftheyear.C.attheendofeverymonth.D.attheendofeveryquarter.ANSWER:B95.Undersingleentrysysteminnetworthmethod,drawingsisaddedwith_______.A.openingcapital.B.closingcapital.C.additionalcapital.D.drawings.07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTI 15/22ANSWER:B96.Undersingleentrysysteminnetworthmethod,additionalcapitalisdeductedwith__________.A.openingcapital.B.closingcapital.C.additionalcapital.D.drawings.ANSWER:B97.Undersingleentrysysteminnetworthmethod,openingcapitalissubtractedfrom_________.A.openingcapital.B.closingcapital.C.additionalcapital.D.drawings.ANSWER:B98.Undersingleentrysysteminconversionmethod,atotaldebtorsaccountispreparedtofindout___________.A.creditsales.B.cashsales.C.creditpurchases.D.cashpurchases.ANSWER:A99.Undersingleentrysysteminconversionmethod,atotaldebtorsaccountispreparedtofindout__________.A.creditpurchases.B.cashpurchases.C.purchasereturns.D.closingbalanceofdebtors.ANSWER:D100.Debtorsaccountisa__________.A.personalaccount.B.realaccount.C.nominalaccount.D.cashaccount.ANSWER:A101.Totalcreditorsaccountispreparedtofindout___________.A.creditsales.B.cashsales.C.creditpurchases.D.cashpurchases.ANSWER:C102.Totalcreditorsaccountispreparedtofindout_______.A.openingbalanceofdebtors.B.closingbalanceofdebtors.C.openingbalanceofcreditors.07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTI 16/22D.closingbalanceofcreditors.ANSWER:D103.Abillsreceivableaccountispreparedtoascertainbills_______.A.accepted.B.received.C.drawn.D.endorsed.ANSWER:B104.Abillspayableaccountispreparedtoascertainbills__________.A.accepted.B.received.C.drawn.D.endorsed.ANSWER:A105.Billsreceivabledishonoredwillbepostedto_______sideofdebtorsaccount.A.debit.B.credit.C.outside.D.inside.ANSWER:A106.Billsreceivabledishonoredwillbepostedin___________.A.debit.B.credit.C.outside.D.inside.ANSWER:B107.Transfertocreditorsaccountwillbepostedinwhichsideofdebtorsaccount?A.Debit.B.Credit.C.Outside.D.Inside.ANSWER:B108.Transfertocreditorsaccountwillbepostedinwhichsideofcreditorsaccount?A.Debit.B.Credit.C.Outside.D.Inside.ANSWER:A109.Billspayabledishonouredwillbepostedinwhichsideofcreditorsaccount?A.Debit.B.Credit.C.Outside.D.Inside.07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTI 17/22ANSWER:D110.Billspayabledishonouredwillbepostedinwhichsideofbillspayableaccount?A.Debit.B.Credit.C.Outside.D.Inside.ANSWER:C111.Openingbalanceofdebtorswillbepostedinwhichsideofdebtorsaccount?A.Debit.B.Credit.C.Outside.D.Inside.ANSWER:C112.Closingbalanceofdebtorswillbepostedinwhichsideofdebtorsaccount?A.Debit.B.Credit.C.Outside.D.Inside.ANSWER:D113.Closingbalanceofcreditorswillbepostedinwhichsideofcreditorsaccount?A.Debit.B.Credit.C.Outside.D.Inside.ANSWER:A114.Openingbalanceofcreditorswillbepostedinwhichsideofcreditorsaccount?A.Debit.B.Credit.C.Outside.D.Inside.ANSWER:D115.Cashaccountopeningbalancewillappearin_______.A.debit.B.credit.C.outside.D.inside.ANSWER:A116.Cashaccountclosingbalancewillappearin__________.A.debit.B.credit.C.outside.D.inside.ANSWER:B07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTI 18/22117.Billspayableaccountopeningbalancewillappearin____________.A.debit.B.credit.C.outside.D.inside.ANSWER:D118.Billspayableaccountclosingbalancewillappearin____________.A.debit.B.credit.C.outside.D.inside.ANSWER:C119.Billsreceivableaccountopeningbalancewillappearin_________.A.debit.B.credit.C.outside.D.inside.ANSWER:A120.Anagreementofhiringwithoptiontobuyis____________.A.installmentsystem.B.creditsystem.C.hirepurchasesystem.D.cashsystem.ANSWER:C121.Anagreementofsaleismadeunder________.A.installmentsystem.B.creditsystem.C.hirepurchasesystem.D.cashsystem.ANSWER:A122.Underwhichsystem,ownershipistransferredonpaymentoffinalinstallment?A.Installmentsystem.B.Creditsystem.C.Hirepurchasesystem.D.Cashsystem.ANSWER:C123.Underwhichsystemownershipistransferredonsigningoftheagreement?A.Installmentsystem.B.Creditsystem.C.Hirepurchasesystem.D.Cashsystem.ANSWER:A07/02/2015 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19/22124.Underhirepurchasesystemthebuyeriscalled_________.A.buyer.B.hirer.C.hirevendor.D.debtor.ANSWER:B125.Underhirepurchasesystemtheselleriscalled_________.A.buyer.B.hirer.C.hirevendor.D.debtor.ANSWER:C126.Underhirepurchasesystemtherelationshipofhirerandhirevendoris______.A.buyerandseller.B.bailorandbailee.C.pawnerandpawnee.D.debtorandcreditor.ANSWER:B127.Underinstallmentsystemtherelationshipbetweenthebuyerandselleristhatofa_________.A.buyerandseller.B.bailorandbailee.C.pawnerandpawnee.D.debtorandcreditor.ANSWER:D128.Underhirepurchasesystem,theriskoflossisborneby____________.A.buyer.B.hirer.C.hirevendor.D.debtor.ANSWER:C129.Underinstallmentsystemtheriskoflossisborneby________.A.buyer.B.hirer.C.hirevendor.D.debtor.ANSWER:A130.Underhirepurchasesystemwhohastherightofsell__________.A.buyer.B.hirer.C.hirevendor.D.debtor.ANSWER:C131.Underhirepurchasesystem,ifinstallmentisnotpaidthehirevendorhasrightto___________.07/02/2015 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20/22A.sellthegoods.B.repossessionofgoods.C.repairthegoods.D.purchasethegoods.ANSWER:B132.Underhirepurchasesystem,theagreementcanbe_________.A.renewed.B.registered.C.terminated.D.endorsed.ANSWER:C133.Hirepurchasesystemisgovernedby___________.A.HirePurchaseAct1972.B.HirePurchaseAct1973.C.HirePurchaseAct1974.D.HirePurchaseAct1975.ANSWER:A134.Installmentsystemisgovernedby__________.A.HirePurchaseAct.B.SaleofGoodsAct.C.InstallmentAct.D.PropertiesRegistrationAct.ANSWER:B135.Underhirepurchasesystem,theretailpriceofthearticlesiscalled________.A.MRP.B.wholesaleprice.C.retailprice.D.cashprice.ANSWER:C136.Cashpriceplusinterestis_________.A.installmentprice.B.hirepurchaseprice.C.maximumretailprice.D.retailprice.ANSWER:B137.Theadvanceamountunderhirepurchasesystemiscalled__________.A.cashprice.B.retailprice.C.interest.D.downpayment.ANSWER:D138.Underhirepurchasesystem,eachinstallmentistreatedas__________.A.interest.07/02/2015 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21/22B.cashprice.C.hirecharges.D.advance.ANSWER:C139.Underhirepurchasesystem,interestiscalculatedon_______.A.cashprice.B.hirepurchaseprice.C.MRP.D.outstandingbalance.ANSWER:D140.Ifthehirepurchaserfailstomakepaymentofanyinstallment,itiscalled_______.A.default.B.repossession.C.sale.D.purchase.ANSWER:A141.Ifthehirevendormaytakeawayallthegoodsonwhichthereisdefaultofinstallmentitiscalled____________.A.repossession.B.partialrepossession.C.completerepossession.D.purchase.ANSWER:C142.ThehirevendortakesawayonlyaportionofthegoodsonwhichthereisdefaultofInstallmentsitiscalled_________.A.repossession.B.partialrepossession.C.completerepossession.D.purchase.ANSWER:B143.Inthebooksofhirer,forpaymentofdownpayment,hirevendoraccountwillbe_______.A.debited.B.credited.C.rectified.D.reversed.ANSWER:A144.Inthebooksofhirer,forpaymentofinstallmenthirevendoraccountwillbe___________.A.debited.B.credited.C.rectified.D.reversed.ANSWER:A145.Inthebooksofhirer,forinterestdueattheendoftheyearhirevendoraccountwillbe_______.07/02/2015 172.16.2.20/printqp.php?heading=IB.Com,[20142017],SemesterII,CoreFINANCIALACCOUNTING202A&qname=202ahttp://172.16.2.20/printqp.php?heading=I%20%20B.%20Com,%20[2014%20%202017],%20Semester%20II,%20Core%20%20FINANCIAL%20ACCOUNTI 22/22A.debited.B.credited.C.rectified.D.reversed.ANSWER:B146.InthebooksofHirer,theinterestanddepreciationaccountwillbetransferredto______.A.Tradingaccount.B.P&Laccount.C.P&Lappropriationaccount.D.Balancesheet.ANSWER:B147.Inthebooksofhirer,whentheassetisrepossessedhirevendoraccountwillbe______.A.debited.B.credited.C.rectified.D.reversed.ANSWER:A148.Inthebooksofhirer,whentheassetisrepossessed,assetaccountwillbe______.A.debited.B.credited.C.rectified.D.reversed.ANSWER:B149.Inthebooksofhirevendor,whichaccountwillbedebitedforhiresales_______.A.buyer.B.hirer.C.hirevendor.D.debtor.ANSWER:B150.Fireinsuranceprovidescoverfor_________.A.Tangibleassets.B.Intangibleassets.C.Fictitiousassets.D.Noneoftheabove.ANSWER:AStaffNameMohanaRanjaniK.