BCom First Year (Sem 1 & 2) Financial Accounting – Daily Revision MCQ (English Medium)
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Which accounting concept treats the business as separate from its owner, so the owner's capital is shown as a liability of the business?
Chapter 1: Accounting Concepts, Conventions and Standards
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Answer: B. Business entity concept
Under the business entity concept the business and its owner are two separate units, so capital is owed by the business to the owner.Valuing closing stock at cost or market price, whichever is lower, follows which accounting convention?
Chapter 1: Accounting Concepts, Conventions and Standards
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Answer: D. Conservatism (prudence)
Conservatism says: anticipate no profit but provide for all possible losses, so stock is valued at the lower of cost or market price.The main purpose of preparing a trial balance is to:
Chapter 2: Journal, Ledger and Trial Balance
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Answer: A. Check the arithmetical accuracy of ledger accounts
If total debit balances equal total credit balances, the ledger postings and balancing are arithmetically correct.Cash deposited into the bank from the office cash is recorded as a contra entry in which book?
Chapter 3: Subsidiary Books and Cash Book
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Answer: C. Cash book with cash and bank columns
The deposit affects both the cash and bank columns of the same cash book, so it is entered on both sides and marked 'C' (contra).The cash book shows a debit (favourable) balance of ₹10,000. Cheques of ₹2,000 were issued but not yet presented for payment. What is the balance as per the pass book?
Chapter 4: Bank Reconciliation Statement
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Answer: B. ₹12,000
The bank has not yet paid these cheques, so the pass book balance is higher: 10,000 + 2,000 = ₹12,000.Purchase of a machine was debited to the Purchases Account. Which type of error is this?
Chapter 5: Rectification of Errors
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Answer: C. Error of principle
Treating a capital expenditure (machine) as revenue expenditure (purchases of goods) breaks an accounting principle.A machine costs ₹50,000. Its scrap value is ₹5,000 and useful life is 9 years. What is the annual depreciation under the Straight Line Method?
Chapter 6: Depreciation Accounting
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Answer: A. ₹5,000
Depreciation = (Cost − Scrap value) ÷ Life = (50,000 − 5,000) ÷ 9 = ₹5,000 every year.In the final accounts of a sole trader, carriage inward is shown on:
Chapter 7: Final Accounts of a Sole Trader
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Answer: D. The debit side of the Trading Account
Carriage inward is a direct expense of bringing goods in, so it is debited to the Trading Account.Sales ₹1,00,000; opening stock ₹10,000; purchases ₹60,000; direct expenses ₹5,000; closing stock ₹15,000. What is the gross profit?
Chapter 7: Final Accounts of a Sole Trader
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Answer: B. ₹40,000
Cost of goods sold = 10,000 + 60,000 + 5,000 − 15,000 = ₹60,000; gross profit = 1,00,000 − 60,000 = ₹40,000.In a non-profit organisation, the Receipts and Payments Account is in the nature of a:
Chapter 8: Accounts of Non-Profit Organisations
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Answer: A. Real account
It is a summary of the cash book (cash and bank), so like the cash account it is a real account.
BCom First Year (Sem 1 & 2): MCQ in other subjects
All questions are written by PadhaiNotes in our own words from the common syllabus of Maharashtra universities (NEP). Your own university's syllabus may differ a little.