Gate/Financial Accounting MCQ Part 3 Sample Test,Sample questions

Question:
 If the hire vendor may take away all the goods on which there is default of installment it is called
____________
  
 
 
 

1.repossession

2.partial repossession

3.complete repossession

4.purchase


Question:
 Imperfect competition was introduced by ����-

1.variable cost

2.Chamberlin

3.Keynes

4.None


Question:
 In cross elasticity of demand  for unrelated goods the demand curve will be��-

1.Horizontal straight line

2.rectangular hyperbola

3.vertical line

4.none of the above


Question:
 In single entry system of accounting ___________
 

1.Dual aspects of a transaction is recorded

2. Single aspect of a transaction is recorded

3. Important transactions are recorded

4. All of them


Question:
 In the books of hirer for payment of installment hire vendor account will be ___________
 
 

1.rectifie

2.credite

3.debite

4.reverse


Question:
 Opening balance of creditors will be posted in which side of creditors account?

1.Debit

2.Credit

3.Outside

4.Inside


Question:
 The short run is a time period in which ��-

1.all resources are fixed

2.the level of output is fixed

3.the size of the production plant is variable

4.some resources are fixed and others are variable


Question:
 Total creditors account is prepared to find out _______
 
 
 
 
 

1.opening balance of debtors

2.closing balance of debtors

3.opening balance of creditors

4.closing balance of creditors


Question:
 Under hire purchase system interest is calculated on _______
 
 
 

1.cash price

2.hire purchase price

3.MRP

4. outstanding balance


Question:
 Which of the following are not related to factors of production(FOP)

1.land

2.capital

3.raw material

4.labour


Question:
A bills payable account is prepared to ascertain bills __________
 
 
 
 
 

1.accepte

2.receive

3.drawn

4.endorse


Question:
A bills receivable account is prepared to ascertain bills _______
 
 
 
 
 

1.accepte

2.receive

3.drawn

4.endorse


Question:
A company purchased a vehicle for $6000 I will be used for 5 years and its residual value is expected to be Rs1000 What is the annual amount of deprecation using straight line method of depreciation?
 
 
 
 

1.Rs3000

2.Rs2000

3.Rs1000

4.Rs3300


Question:
A distinguishing characteristic of monopolistic competition is ������

1.Large number of firms

2.Low entry barriers

3.product standardisation

4.product differentiation


Question:
A fixed asset was bought for Rs5000 Its accumulated depreciation is Rs3000 and rate of depreciation is 20% Calculate its depreciation expenses for the current accounting period using reducing balance method?
 
 

1.Rs600

2.Rs500

3.Rs750

4.Rs400


Question:
A graph showing all the combination of capital and labour available for a given total cost is the ��-

1.isoquant

2.budget constraint

3.isocost line

4.expenditure set


Question:
An agreement of hiring with option to buy is ____________
 
 
 
 

1.installment system

2.credit system

3.hire purchase system

4.cash system


Question:
An LAC curve is not known as �����

1.Envelope curve

2.Planning curve

3.operating curve

4.plant curve


Question:
Bills payable account closing balance will appear in ____________
  
 
 
 

1.debit

2.credit

3.outside

4.inside


Question:
Bills payable account opening balance will appear in ____________
  
 
 
 

1.debit

2.credit

3.outside

4.inside


Question:
Bills payable dishonoured will be posted in which side of bills payable account?
 
 
 
 

1.Debit

2.Credit

3.Outside

4.Inside


Question:
Bills receivable account opening balance will appear in _________
  
 
 
 

1.debit

2.credit

3.outside

4.inside


Question:
Bills receivable dishonored will be posted in ___________
 
 
  
 
 

1.debit

2.credit

3.outside

4.inside


Question:
Bills receivable dishonored will be posted to _______ side of debtors account
 
 
 
 

1.debit

2.credit

3.outside

4.inside


Question:
car and petrol are �- goods

1.substitutes

2.complementary

3.producers

4.None of the above


Question:
Cartel is a part of ������

1.Monopoly

2.Oligopoly

3.Duopoly

4.Perfect competition


Question:
Cash account closing balance will appear in __________
  
 
 
 

1.debit

2.credit

3.outside

4.inside


Question:
Cash account opening balance will appear in _______
  
 
 

1.debit

2.credit

3.outside

4.inside


Question:
Cash price plus interest is _________
 
 
 

1.installment price

2.hire purchase price

3.maximum retail price

4. retail price


Question:
Closing balance of creditors will be posted in which side of creditors account?
 
 
 
 

1.Credit

2.Debit

3.Outside

4.Inside


Question:
Cobb Douglas production function mainly studies ���

1.capital and labour

2.labour and expenditure

3.land and labour

4.land and capital


Question:
Concentration of monopoly is implemented under ������

1.FERA

2.MRTP

3.FEMA

4.None


Question:
Gradual long term movement in time series data is called ���

1.Seasonal variation

2.cycles

3.trends

4.exponential variation


Question:
Hire purchase system is governed by ___________
 

1.Hire Purchase Act 1972

2. Hire Purchase Act 1973

3. Hire Purchase Act 1974

4. Hire Purchase Act 1975


Question:
If firms can neither enter nor leave an industry  the relevant time period is the ���

1.Short run

2.Intermediate run

3.Immediate run

4.none


Question:
If the hire purchaser fails to make payment of any installment it is called _______
 
 
 

1.default

2.repossession

3.sale

4. purchase


Question:
Implicit costs are ��-

1.equal to total fixed costs

2.comprised entirely of variable costs

4.always greater in the short run than in the long run


Question:
In case of monopoly  a firm in the long run can have �����

1.Loss

2.Profit

3.Supernormal profit

4.All of the above


Question:
In perfect competition equilibrium is attained when ������

1.AR = AC

2.TR=TC

3.MR=MC

4.Q=P


Question:
In sample survey method �� technique is adopted

1.deliberate

2.convenience

3.quota

4.random


Question:
In the books of hire vendor which account will be debited for hire sales _______
 
 
 
 

1.buyer

2.hirer

3.hire vendor

4.debtor


Question:
In the books of hirer for interest due at the end of the year hire vendor account will be _______
 
 
 

1.debite

2.credite

3.rectifie

4.reverse


Question:
In the books of hirer for payment of down payment hire vendor account will be _______

1.debited

2.credite

3.rectifie

4.reverse


Question:
In the books of Hirer the interest and depreciation account will be transferred to ______
 
 
 
 

1.Trading account

2.P & L account

3.P & L appropriation account

4.Balance sheet


Question:
In the books of hirer when the asset is repossessed asset account will be ______
 
 
 
 

1.debite

2.credite

3.rectifie

4.reverse


Question:
In the books of hirer when the asset is repossessed hire vendor account will be ______
 
 
 

1.debite

2.credite

3.rectifie

4.reverse


Question:
In the Law of variable proportion when TP is maximum then the MP = ��

1.MP = 1

2.MP<0

3.MP=0

4.MP>!


Question:
Installment system is governed by __________
 
 
 
 Properties Registration Act

1.Hire Purchase Act

2.Sale of Goods Act

3.Installment Act

4.Properties Registration Act


Question:
Inthe short run as economists use the phrase is characterised by ��-

1.all inputs being variable

2.a period where the law of diminishing return does no hold

3.at least one fixed factor of production and firms neither leaving nor entering the industry

4.no variable inputs


Question:
�- input factor is divided as skilled  semiskilled  unskilled

1.land

2.capital

3.Technology

4.labour


Question:
�- is the remuneration for organisation

1.rent

2.wages

3.interest

4.profit


Question:
�� costs are business costs which do not involve any cash payments but for them a provision is made in accounts

1.private cost

2.social cost

3.accounting cost

4.book cost


Question:
�� Economics views on reducing the production costs

1.internal

2.inventory

3.pecuniary

4.External


Question:
kinked demand curve is associated with ������

1.Cournot

2.Chamberlin

3.Edgeworth

4.Sweezy


Question:
Marginal cost curve cuts the average cost curve �����

1.at the left of its lowest point

2.at its lowest point

3.at the right of its lowest point

4.at its highest point


Question:
Marginal cost is defined as

1.change in total cost due to change in output

2.total cost divided by output

3.change in output due to a change in an input

4.total product divided by the quantity of input


Question:
Marginal cost means ��������

1.Substitutional cost

2.addition to the total cost

3.multiplication to the total cost

4.variable cost


Question:
Miroeonomi theory is lso known s ��
 
 

1.usiness Theory

2.ost Theory

3. Iniviul Theory

4. Prie Theory


Question:
Money paid to an unskilled labour is called �����

1.Wages

2.Salary

3.Royalty

4.None


Question:
Opening balance of debtors will be posted in which side of debtors account?
 
 
 
 

1.Debit

2.Credit

3.Outside

4.Inside


Question:
Passive factor of production is ��-

1.only land

2.only capital

3.both land and capital

4.neither land nor capital


Question:
Reasons for increasing return in stage I of law of variable proportion is ���

1.Indivisibility

2.Specialisation

3.both a and b

4.none of the above


Question:
Revenue Reserve does not include __________
 
 
 
 

1.Profit & Loss Account

2.Secret Reserve

3.General Reserve

4.Securities Premium


Question:
Statement of financial position produced from incomplete accounting record is commonly known as
____________
 

1.Balance sheet

2. Cash flow statement

3. Statement of affairs

4. Statement of financial operations


Question:
Supply is a function of ��

1.a straight line

2.a parabolaL

3.a hyperbola

4.convex to the origin


Question:
Tea and coffee are �� goods

1.substitutes

2.complementary

3.producers

4.none of the above


Question:
The advance amount under hire purchase system is called __________
 
 
 

1.cash price

2.retail price

3.interest

4.down payment


Question:
The cost with which the concept of marginal cost is closely related

1.variable cost

2.fixed cost

3.opportunity cost

4.economic cost


Question:
The costs that depend on output in the short run are ��-

1.total variable costs only

2. both total variable costs and total costs

3.total costs only

4.total fixed cost only


Question:
The formula for average fixed costs is ���-

1.TFC/Q

2.DQ/DFC

3.Q/TFC

4.TFC � Q


Question:
The hire vendor takes away only a portion of the goods on which there is default of Installments it is
called _________
  
 
 

1.repossession

2.partial repossession

3. complete repossession

4.purchase


Question:
The supply of a product does not depend on ��-

1.labour costs

2.the number of sellers in the market

3.consumers tastes

4.existing technology


Question:
The total outlay method explains the relationship between price and ��A 

1.demand

2.supply

3.expenditure

4.income


Question:
The upper portion of the kinked demand curve is relatively �����

1.More inelastic

2.More elastic

3.Less elastic

4.Less inelastic


Question:
The vertical difference between TVC and TC is equal to ��

1.MC

2.AVC

3.TFC

4.none


Question:
Time-series data may exhibit which of the following behaviours?

1.Trend

2.Random variation

3.Seasonality

4.Cycles


Question:
Under hire purchase system each installment is treated as __________
 
 
 
 

1.interest

2.cash price

3.hire charges

4.advance


Question:
Under hire purchase system if installment is not paid the hire vendor has right to ___________
 
 
 
 

1.sell the goods

2.repossession of goods

3.repair the goods

4.purchase the goods


Question:
Under hire purchase system the agreement can be _________
 
 
 
 

1.renewe

2.registere

3.terminate

4.endorse


Question:
Under hire purchase system the buyer is called _________
 
 
 
 

1.buyer

2.hirer

3.hire vendor

4.debtor


Question:
Under hire purchase system the relationship of hirer and hire vendor is ______
 
 
 
 

1.buyer and seller

2.bailor and bailee

3.pawner and pawnee

4.debtor and creditor


Question:
Under hire purchase system the retail price of the articles is called ________
 
 
 

1.MRP

2.wholesale price

3.retail price

4.cash price


Question:
Under hire purchase system the risk of loss is borne by ____________
 
 
 
 

1.buyer

2.hirer

3.debtor

4.hire vendor


Question:
Under hire purchase system the seller is called _________
 
 
 

1.buyer

2.hirer

3.hire vendor

4.debtor


Question:
Under hire purchase system who has the right of sell __________
 
 
 
 

1.buyer

2.hirer

3.hire vendor

4.debtor


Question:
Under installment system the relationship between the buyer and seller is that of a _________
 
 
 
 

1.buyer and seller

2.bailor and bailee

3.pawner and pawnee

4.debtor and creditor


Question:
Under installment system the risk of loss is borne by ________
 
 
 

1.buyer

2.hirer

3. hire vendor

4.debtor


Question:
Under which system ownership is transferred on payment of final installment?
 
 
 
 

1.Installment system

2.Credit system

3.Hire purchase system

4.Cash system


Question:
Under which system ownership is transferred on signing of the agreement?
 Installment system
 
 
 
 

1.Installment system

2.Credit system

3.Hire purchase system

4.Cash system


Question:
Variable costs are ��������

1.Sunk costs

2.Multiplied by fixed cost

3.Cost that change with the level of productio

4.the change in total cost resulting from the production of an additional unit of output


Question:
What are homogenous products?

1.Undifferentiated products

2.Differentiated products

3.Both (a) and (b)

4.None


Question:
What is depreciation?
 
 

1.Cost of a fixed asset

2. Cost of a fixed assets repair

3. The residual value of fixed asset

4.Portion of a fixed assets cost consumed during the current accounting period


Question:
What is the accumulated deprecation?
 Sum of all depreciation expenses of a fixed asset
 
 
 

1.Depreciation expenses

2.Cost of depletion of assets

3.Future value of fixed asset

4.None of them


Question:
When the total product curve is falling  ���-

1.marginal product curve is zero

2.marginal product curve is negative

3.average product is increasing

4.average product is negative


Question:
Which factor of production is considered as fixed input

1.labour

2.technology

3.capital

4.land


Question:
Which of the following is correct?

1.TC = TFC+TVC

2.TFC=TC-TVC

3.TVC=TC-TFC

4.None of the above


Question:
Which of the following is not present in a time series?

1.Seasonality

2.operational variations

3.trend

4.random variations


Question:
Which of the following techniques uses variables such as price and promotional expenditures  which are
related to the product demand  to predict demand

1.Associative models

2.exponential smoothing

3.weighted moving average

4.simple moving average


Question:
Whih will use  hnge in the emn for goo X?
  

1.hnge in tste

2. hnge in Inome

3. hnge in the prie of X

4. hnge in the prie of omplementry prout


More MCQS

  1. Business Studies-[Class 11-MCQ ]-Chapter 1- Nature and Purpose of Business
  2. Business Studies-[Class 11-MCQS ]-Chapter 2 Forms of Business Organisation
  3. Business Studies-[Class 11-MCQS ]-Chapter 3 Private, Public and Global Enterprises
  4. Business Studies-[Class 11-MCQS ]-Chapter 4 Business Services
  5. Business Studies-[Class 11-MCQS ]-Chapter 5 Emerging Modes of Business
  6. Business Studies-[Class 11-MCQS ]-Chapter 6 Social Responsibilities of Business
  7. Business Studies-[Class 11-MCQS ]-Chapter 7 Formation of a Company
  8. Business Studies-[Class 11-MCQS ]-Chapter 8 Sources of Business Finance
  9. Business Studies-[Class 11-MCQS ]-Chapter 9 Small Business
  10. Business Studies-[Class 11-MCQS ]-Chapter 10 Internal Trade
  11. Business Studies-[Class 11-MCQS ]-Chapter 11 International Business
  12. Business Studies-[Class 11-MCQS ]-Chapter 12 International Business
  13. Business Studies-[Class 12-MCQS ]-Chapter 1 Nature and Significance of Management
  14. Business Studies-[Class 12-MCQS ]-Chapter 2 Principles of Management
  15. Business Studies-[Class 12-MCQS ]-Chapter 3 Business Environment
  16. Business Studies-[Class 12-MCQS ]-Chapter 4 Planning
  17. Business Studies-[Class 12-MCQS ]-Chapter 5 Organising
  18. Business Studies-[Class 12-MCQS ]-Chapter 6 Staffing
  19. Business Studies-[Class 12-MCQS ]-Chapter 7 Directing
  20. Business Studies-[Class 12-MCQS ]-Chapter 9 Financial Management
  21. Business Studies-[Class 12-MCQS ]-Chapter 10 Financial Market
  22. Business Studies-[Class 12-MCQS ]-Chapter 11 Marketing
  23. Business Studies-[Class 12-MCQS ]-Chapter 12 Consumer Protection
  24. Financial Accounting MCQ Part 2
  25. Financial Accounting MCQ Part 3
  26. Business Economics MCQ Part 2
  27. Business Economics MCQ Questions and Answers Part 3
  28. Corporate Finance MCQ Set 1
  29. Corporate Finance MCQ Set 2
  30. Direct Tax MCQ Set 2
  31. Business Information Systems MCQ Set 1
  32. Business Information Systems MCQ set 2
  33. Business Information Systems MCQ set 3
  34. Business Law MCQ Set 1
  35. Business Law MCQ Set 2
  36. Business Law Set 3
  37. Business Studies
  38. BUSINESS ENVIRONMENT MCQ QUESTION AND ANSWER
  39. Business Studies Staffing MCQ QUSESTION AND ANSWER
Learn Financial Accounting MCQ Part 3,Learn Gate Objetive choice questions and answers,Gate Multiple choice questions and answers,Gate objective, Gate questions , Gate answers,Gate MCQs questions and answer
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