BSEB Bihar Board 12th Accountancy Important Questions Objective Type Part 5 are the best resource for students which helps in revision.
Bihar Board 12th Accountancy Objective Important Questions Part 5 in English
Question 1.
Which of the following is considered as Cash Equivalents :
(a) Bank Overdraft
(b) Debtors
(c) Short Term Investment
(d) Bills of Exchange
Answer:
(a) Bank Overdraft
Question 2.
Operating Ratio comes under :
(a) Profitability Ratio
(b) Activity Ratio
(c) Financial Position Ratio
(d) Leverage Ratio
Answer:
(a) Profitability Ratio
Question 3.
On death of a partners the deceased partners capital account will be credited with :
(a) her/his share of goodwill
(b) Goodwill of the firms
(c) Share of goodwill of remaining partners
(d) none of these
Answer:
(a) her/his share of goodwill
Question 4.
In the event of death of a partner, accumulated profits and losses are shared in:
(a) Old profit sharing ratio
(b) New profit sharing ratio
(c) Capital ratio
(d) none of these
Answer:
(a) Old profit sharing ratio
Question 5.
X, Y and Z share profits in the ratio of 1/2, 1/3 and 1/6. Z dies. New ratios of X and Y will be :
(a) 3 : 2
(b) 2 : 3
(c) 12 : 1
(d) 10 : 11
Answer:
(a) 3 : 2
Question 6.
In the absence of any agreement, the profits and losses of the firm are shared
(a) Equally
(b) In capital ratio
(c) On different proportions
(d) None of these
Answer:
(a) Equally
Question 7.
Partner’s current accounts are opened when their capital is
(a) fixed
(b) fluctuating
(c) Both
(d) None of these
Answer:
(a) fixed
Question 8.
The current account of the partners will always have
(a) Debit balance
(b) Credit balance
(c) Either of the two
(d) None of these
Answer:
(c) Either of the two
Question 9.
Share of goodwill brought in cash by the new partner is called
(a) Asset
(b) Profit
(c) Premium
(d) Loss
Answer:
(c) Premium
Question 10.
Profit or loss on revaluation is borne by
(a) Old partners
(b) New partners
(c) All partners
(d) None of the above
Answer:
(a) Old partners
Question 11.
In the absence of any agreement the profits and losses of the firm one shared
(a) Equally
(b) In Capital Ratio
(c) In different propertions
(d) None of these
Answer:
(a) Equally
Question 12.
Increase in the value of assets on reconstruction of the partnership firm results into
(a) Gain to the existing partners
(b) Loss to the existing partners
(c) Neither gain nor loss to the existing partners
(d) None of these
Answer:
(a) Gain to the existing partners
Question 13.
Profit or loss on revalutation is borne by
(a) Old partners
(b) New partners
(c) All partners
(d) None of these
Answer:
(a) Old partners
Question 14.
The executors will be paid interest on the amount due from the date of death of the partner
(a) 4% p.a
(b) 5% p.a
(c) 6% p.a
(d) 7 % p.a
Answer:
(c) 6% p.a
Question 15.
On dissolution of a firm, Bank overdraft is transferred to
(a) Cash A/c
(b) Bank A/c
(c) Realisation A/c
(d) Partners Capital A/c
Answer:
(c) Realisation A/c
Question 16.
Debenture holders receives
(a) Dividend
(b) Interest
(c) Profit
(d) None of these
Answer:
(b) Interest
Question 17.
Which of the following is not a part of financial statement of a Company?
(a) P/C Statement
(b) Balance sheet
(c) Ledger A/C
(d) None of these
Answer:
(c) Ledger A/C
Question 18.
Operating Ratio is
(a) Profitability Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) None of these
Answer:
(a) Profitability Ratio
Question 19.
When time of withdrawals are not mentioned, interest on drawings is changed ?
(a) For 6\(\frac {1}{2}\) months
(b) For 6 months
(c) for 5\(\frac {1}{2}\) months
(d) For 12 months
Answer:
(b) For 6 months
Question 20.
Recording of unrecorded asset on the reconstitution of partnership firm will be –
(a) Again to the existing partner
(b) A loss to the existing partner
(c) Neither a gain nor a loss to the existing partner
(d) None of these
Answer:
(b) A loss to the existing partner
Question 21.
Current Account is
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these
Answer:
(a) Personal Account
Question 22.
In which ratio, the cash brought in for goodwill by the new partner is shared by the existing partners?
(a) Profit Sharing Ratio
(b) Capital Ratio
(c) Sacrificing Ratio
(d) None of these
Answer:
(c) Sacrificing Ratio
Question 23.
A, B and C are three partners sharing profits and losses in the ratio of 4 : 3 : 2 D is admitted for 1/10th share, the new ratio will be
(a) 10 : 7 : 7 : 4
(b) 5 : 3 : 2 : 1
(c) 4 : 3 : 2 : 1
(d) None of these
Answer:
(c) 4 : 3 : 2 : 1
Question 24.
The executors will be paid interest on the amount due from the date of death of the partner @
(a) 4%
(b) 5%
(c) 6%
(d) 7%
Answer:
(c) 6%
Question 25.
Realisation Account is a
(a) Personal Account
(b) Nominal Account
(c) Real Account
(d) None of these
Answer:
(b) Nominal Account
Question 26.
A firm can be voluntarily dissolved by the partners
(a) On Majority basis
(b) On 3/4 Member’s decision
(c) On 1/2 Member’s decision
(d) None of these
Answer:
(a) On Majority basis
Question 27.
Unrecorded liabilities when paid will be shown in
(a) Debit side of Realisation Account
(b) Debit side a Bank Account
(c) Credit side of Realisation Account
(d) Credit side of Bank Account
Answer:
(a) Debit side of Realisation Account
Question 28.
Who are the owners of the company?
(a) Equity shareholders
(b) Preference shareholders
(c) Debenture holders
(d) Both a and b
Answer:
(a) Equity shareholders
Question 29.
Forfeiture of share results in the reduction of
(a) Paid up capital
(b) Authorised capital
(c) Fixed Assets
(d) Reserve capital
Answer:
(b) Authorised capital
Question 30.
Profit on cancellation of own debentures is transferred to
(a) Profit and Loss Account
(b) Profit and Loss Appropriation Account
(c) General Reserve Account
(d) Capital Reserve Account
Answer:
(d) Capital Reserve Account
Question 31.
Interest on Sinking fund Investment is credited to
(a) Profit and Loss Account
(b) Sinking fund Account
(c) General Reserve Account
(d) Sinking fund investment Account
Answer:
(b) Sinking fund Account
Question 32.
Discount on issue of debentures is
(a) Fixed Asset
(b) Current Asset
(c) Real Asset
(d) Factitious Asset
Answer:
(b) Current Asset
Question 33.
In case of issue of debentures as a collateral security for loan from the bank which account will be debited
(a) Bank Account
(b) Bank Loan Account
(c) Debenture Account
(d) Debentures Suspense Account
Answer:
(d) Debentures Suspense Account
Question 34.
According to SEBI guidelines, a company will have to create debenture redemption reserve equivalent to the amount of the following percentage of debenture issued
(a) 40%
(b) 50%
(c) 70%
(d) 100%
Answer:
(b) 50%
Question 35.
As per the provisions of companies Act, 2013 under which section, the final Accounts of a Company is prepared?
(a) 128
(b) 210
(c) 129
(d) 212
Answer:
(c) 129
Question 36.
Out of the following which parties are interested in financial statements?
(a) Managers
(b) Financial Institutions
(c) Creditors
(d) All of these
Answer:
(d) All of these
Question 37.
Debt-Equity Ratio is
(a) Liquidity Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) Operating Ratio
Answer:
(c) Solvency Ratio
Question 38.
When opening stock is Rs. 50,000 closing stock Rs. 60,000 and cost of goods sold is Rs. 2,20,000 then stock Turnover Ratio is
(a) 2 times
(b) 3 times
(c) 4 times
(d) 5 times
Answer:
(c) 4 times
Question 39.
Cash flow statement is related to
(a) AS-3
(b) AS-6
(c) AS-09
(d) AS-12
Question 40.
Which of the following activity comes under Financial Activities?
(a) Receipts from insurance of equity shares
(b) Cash sales
(c) Bank overdraft
(d) Purchase of Debentures
Answer:
(a) Receipts from insurance of equity shares
Question 41.
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
Question 42.
Cash from operating activities will decrease due to
(a) Increase in current Assets
(b) Decrease in current liabilities
(c) Neither of the two
(d) Both ‘a’ and ‘b’
Answer:
(d) Both ‘a’ and ‘b’
Question 43.
The term Quick assets do not include
(a) Stock
(b) Debtors
(c) B/R
(d) Cash and bank Balance
Answer:
(a) Stock
Question 44.
Dividends are usually paid on
(a) Authorised capital
(b) Issued capital
(c) Called up capital
(d) Paid up capital
Answer:
(d) Paid up capital
Question 45.
The nominal capital is known as
(a) Authorised Capital
(b) Registered Capital
(c) Both ‘a’ and ‘b’
(d) None of these
Answer:
(c) Both ‘a’ and ‘b’