BSEB Bihar Board 12th Accountancy Important Questions Objective Type Part 4 are the best resource for students which helps in revision.
Bihar Board 12th Accountancy Objective Important Questions Part 4 in English
Question 1.
The minimum subscription as prescribed by SEBI against the entire issue is
(a) 95%
(b) 90%
(c) 5%
(d) None of these
Answer:
(b) 90%
Question 2.
The amount received over and above the par value is credited to which account?
(a) Share Capital A/c
(b) Calls in advance Account
(c) Securities Premium Reserve Account
(d) Share Forfeiture Account
Answer:
(c) Securities Premium Reserve Account
Question 3.
At the time of forfeiture, share Capital Account is debited with :
(a) Face Value
(b) Nominal Value
(c) Paid-up Value
(d) Called-up Value
Answer:
(d) Called-up Value
Question 4.
Debentures are the part of:
(a) Share capital
(b) Loan
(c) Owned capital
(d) Supplier capital
Answer:
(b) Loan
Question 5.
Ordinarily debentures are :
(a) Secured
(b) Partly Secured
(c) Unsecured
(d) None of these
Answer:
(a) Secured
Question 6.
For the company premium on issue of debenture is a :
(a) Capital gain
(b) Profit
(c) Assets
(d) Trading profits
Answer:
(a) Capital gain
Question 7.
In Balance Sheet discount on issue of debenture is shown in :
(a) Liabilities side
(b) Assets side
(c) Outside of Balance sheet
(d) Statement of Profit & Loss
Answer:
(b) Assets side
Question 8.
For the company, discount on issue of debenture is a :
(a) Fictitious asset
(b) Liabilities
(c) Loss
(d) None of these
Answer:
(a) Fictitious asset
Question 9.
For the company, discount on issue of debentures is a :
(a) Capital loss
(b) Revenue loss
(c) Normal loss
(d) Trading loss
Answer:
(a) Capital loss
Question 10.
Premium on redemption of debentures account is a :
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(a) Personal A/c
Question 11.
Profit on cancellation of own debentures are :
(a) Revenue Profit
(b) Capital Profit
(c) Operating Profit
(d) None of these
Answer:
(b) Capital Profit
Question 12.
The term financial statements include :
(a) Profit & Loss A/c
(b) Profit & Loss Acoount-and Balance Sheet
(c) Profit & Loss Appropriation A/c
(d) (a) and (b)
Answer:
(b) Profit & Loss Acoount-and Balance Sheet
Question 13.
Balance Sheet is a :
(a) Statement
(b) Account
(c) Both
(d) None of these
Answer:
(a) Statement
Question 14.
Current Liabilities are to be payable within :
(a) 3 Months
(b) 6 Months
(c) 9 Months
(d) 12 Months
Answer:
(d) 12 Months
Question 15.
The financial statements of a business enterprise include :
(a) Balance Sheet
(b) Statement of Profit & Loss
(c) Cash Flow Statement
(d) All of the above
Answer:
(d) All of the above
Question 16.
Tools of financial analysis are :
(a) Ratio analysis
(b) Trend analysis
(c) Comparative analysis
(d) All the above
Answer:
(d) All the above
Question 17.
Break-Even Points refers to that point where :
(a) Total costs are more than total sales
(b) Total costs are less than total sales
(c) Total costs are half of the total sales
(d) Total costs are equal to total sales
Answer:
(d) Total costs are equal to total sales
Question 18.
The Ideal Acid Test Ratio is:
(a) 1 : 1
(b) 1 : 2
(c) 2 : 1
(d) 2 : 3
Answer:
(a) 1 : 1
Question 19.
Current Ratio is a :
(a) Balance Sheet Ratio
(b) Profit & Loss Ratio
(c) Composite Ratio
(d) None of these
Answer:
(a) Balance Sheet Ratio
Question 20.
Which of the following is not operating expenses?
(a) Advertisement
(b) Salaries
(c) Loss on Sale of car
(d) Distribution
Answer:
(c) Loss on Sale of car
Question 21.
Which of the following is liquid asset?
(a) Debtors
(b) Stock
(c) Building
(d) Land
Answer:
(a) Debtors
Question 22.
Profitability Ratio is generally shown’in :
(a) Percentage
(b) Simple Ratio
(c) Times
(d) Equation
Answer:
(a) Percentage
Question 23.
Stock Turnover Ratio is:
(a) Liquidity Ratio
(b) Profitability Ratio
(c) Activity Ratio
(d) None of these
Answer:
(c) Activity Ratio
Question 24.
Current Liabilities does not include :
(a) Outstanding Expenses
(b) Bills Payable
(c) Sundry Creditors
(d) Debentures
Answer:
(d) Debentures
Question 25.
Cash flow statement is prepared from :
(a) Balance Sheet
(b) Profit & Loss A/c
(c) Additional Informations
(d) All the above
Answer:
(d) All the above
Question 26.
Which of the following is not a cash inflow :
(a) Decrease in Debtors
(b) Issue of shares
(c) Decrease in Creditors
(d) Sale of fixed assets
Answer:
(c) Decrease in Creditors
Question 27.
Which of the following is not a cash out flow :
(a) Increase in creditors
(b) Increase in debtors
(c) Increase in stock
(d) Increase in prepaid expenses
Answer:
(a) Increase in creditors
Question 28.
Increase in the amount of prepaid expenses result in
(a) Decrease in Cash
(b) Increase in Cash
(c) No effect on Cash
(d) None of these
Answer:
(a) Decrease in Cash
Question 29.
Cash Flow Statement according to AS-3 is mandatory to :
(a) All enterprises
(b) Companies listed on a stock exchange
(c) Enterprises having turnover exceeding Rs. 50 Crore
(d) (b) & (c) both
Answer:
(d) (b) & (c) both
Question 30.
Which of the following is not the source of Cash?
(a) Purchase in Fixed Assets
(b) Funds from Operation
(c) Issue of Debentures
(d) Sale of Fixed Assets
Answer:
(a) Purchase in Fixed Assets
Question 31.
Issue of Debentures in cash is a :
(a) Financing activities
(b) Operating activities
(c) Investing activities
(d) None of these
Answer:
(a) Financing activities
Question 32.
Decrease in the amount of prepaid expenses result in :
(a) Source of Cash
(b) Application of Cash
(c) No effect
(d) None of these
Answer:
(a) Source of Cash
Question 33.
Following is added in net profit while calculating cash flow from operating activities:
(a) Increase in stock
(b) Decrease in stock
(c) Increases in debtors
(d) Decrease in creditors
Answer:
(b) Decrease in stock
Question 34.
An example of cash flow from investing activities is :
(a) Issue of Debentures
(b) Repayment of long-term loans
(c) Purchase of raw materials for cash
(d) Sale of Investment by non-financial enterprise
Answer:
(d) Sale of Investment by non-financial enterprise
Question 35.
An analysis of cash flow is useful for which planning?
(a) Short-term
(b) Long-term
(c) Medium term
(d) Very long period
Answer:
(a) Short-term
Question 36.
Cash Equivalents include:
(a) Treasury Bill
(b) Bills receivable
(c) Short-term Bank deposits
(d) All of the above
Answer:
(d) All of the above
Question 37.
Which of the following is not a non-cash item?
(a) Cash sales
(b) Goodwill written off
(c) Depreciation
(d) Provision for bad debts
Answer:
(a) Cash sales
Question 38.
Cash flow statement is based upon :
(a) Cash basis of accounting
(b) Accrual basis of Accounting
(c) None of these
(d) (a) and (b) Both
Answer:
(a) Cash basis of accounting
Question 39.
Accounting standard-3 related to a :
(a) Cash Flow Statement
(b) Stock
(c) Cash Book
(d) Fixed Assets
Answer:
(a) Cash Flow Statement
Question 40.
Which of the following is not a cash out flow:
(a) Increase in Debtors
(b) Increase in stock
(c) Increase in Creditors
(d) Increase in prepaid expenses
Answer:
(c) Increase in Creditors
Question 41.
Cash sales is a :
(a) Operation activities
(b) Investing activities
(c) Financing activities
(d) None of these
Answer:
(a) Operation activities
Question 42.
While calculating operation profit which will be added to net profit:
(a) Profit on Sale of Asset
(b) Increase in General Reserves
(c) Interest received
(d) Refund of Tax
Answer:
(b) Increase in General Reserves
Question 43.
Which calculating cash flow from operating activities will be deducted?
(a) Decrease in Prepaid Expenses
(b) Increase in Creditors
(c) Increase in Debtors
(d) Decrease in Debtors
Answer:
(c) Increase in Debtors
Question 44.
An example of Cash Flow form Investing Activity is :
(a) Gash Sales
(b) Commission Received
(c) Payment of cash for purchase of fixed assets
(d) Dividend paid
Answer:
(c) Payment of cash for purchase of fixed assets
Question 45.
State whether cash deposited in bank will be classified under which kind of activity?
(a) Cash Flow from Operating Activities
(b) Cash Row from Investing Activities
(c) Cash Flow form Financing Activities
(d) No Cash Flow
Answer:
(d) No Cash Flow
Question 46.
Which of the following item is not considered as Cash Equivalents:
(a) Bank Overdraft
(b) Commercial Paper
(c) Treasury Bills
(d) Investment
Answer:
(d) Investment