MCQ FINANCIAL ACCOUNTING PART 5

MULTIPLE CHOICE QUESTION FOR CMA INTERMEDIATE GROUP FIRST (MCQ – FINANCIAL ACCOUNTING PART 5)

  • Which of the following commission is allowed by the consignor to the consignee to encourage the consignee for putting-up hard work in introducing new product in the market?
    • Del-credere Commission
    • Over-riding Commission
    • Hard work Commission
    • Ordinary Commission
  • If Ram’s acceptance which was endorsed by us in favour of Saleem is dishonoured, then the amount will be debited in our books to
    • Saleem
    • Ram
    • Bills Receivable Account
    • None of the above
  • In case of a Club, the excess of expenditure over income is called as
    • Surplus
    • Deficit
    • Capital Fund
    • Investment in Fixed Assets
  • A Charitable Institution has 250 members with a annual subscription of `5,000 each. The subscription received during 2018-19 were $11,25,000, which include $ 65,000 and $25,000 for the years of 2017-18 and 2019-20 respectively. Amount of outstanding subscription for the 2018-19 will be
    • (a) $90,000
    • (b) $1,25,000
    • (c) $2,15,000
    • (d) $1,90,000
  • When stock is valued at cost in one accounting period and at lower of cost and Net realizable value in another accounting period
    • Prudence Principle conflicts with Consistency Principle.
    • Matching Principle conflicts with Consistency principle.
    • Consistency Principle conflicts with Accounting Period Assumption.
    • None of the above
  • Materiality Principle is an exception to the
    • Consistency principle
    • Full disclosure Principle
    • Accounting Period Assumption
    • Prudence Principle
  • In a Cash Book Debit balance of $112 brought forward as credit balance of $ 121, while preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the starting point:
    • $112 to be added
    • $121 to be added
    • $ 233 to be added
    • $112 to be subtracted
  •   represents a potential obligation that could be created depending on the outcome of an event.
    • Internal Liability
    • Current Liability
    • Contingent Liability
    • Non-current Liability
  • Opening Debtors, Collection from Debtors and Discount Allowed were $3,15,000; $18,30,000 and $35,000 respectively. If the closing debtors were 20% of credit sales of the period then closing debtors and credit sales would be
    • (a) $ 3,51,667 and $17,58,333
    • (b) $3,63,333 and $18,16,667
    • (c) $3,87,500 and $19,37,500
    • (d) $3,10,000 and $15,50,000
  • Provision for Doubtful Debt on 1st April, 2018 was `21,500. During the year 2018 – 19  the Bad-debt and Recovery of Bad-debt were ` 10,500 and ` 2,100 respectively. The Sundry Debtors on 31st March, 2019 were `2,25,000. Provision is to be made @ 5% on Debtors. If on 31st March, 2019, there was additional Bad-debt of ` 2,500 then Provision for doubtful-debt will be
    • debited to Profit & Loss Account by `11,250.
    • debited to Profit & Loss Account by `2,625.
    • debited to Profit & Loss Account by `3,000.
    • debited to Profit & Loss Account by `900.
  • A and B enter into a joint venture sharing profit and losses in the ratio of 3:2. A purchased goods costing $2,00,000. B sold 95% goods for $ 2,50,000. A is entitled to get 1% commission on purchase and B is entitled to get 5% commission on sales. A drew a bill on B for an amount equivalent to 80% of original cost of goods. A got it discounted at $1,50,000. What is A’s share of profit?
    • (a) $15,300
    • (b) $ 21,300
    • (c) $18,900
    • (d) None of the above
  • X and Y are partners with the capital of $50,000 and $ 30,000 respectively. Interest Payable on Capital is 10% p.a. If the profits earned by the firm is $ 4,800, what will be the Interest on Capital for X and Y?
    • (a) $5,000 and $3,000
    • (b) $3,000 and $1,800
    • (c) No interest will be paid to the partners
    • (d) None of the

YOU CAN FIND MCQ FINANCIAL ACCOUNTING TEST SERIES ON CMAINDIAGROUP.COM – COMING SOON
FOR PREVIOUS MCQ FINANCIAL ACCOUNTING PART 5

For CMA Inter Study Notes Pls Click on Following Link.
https://pnautiyal.blogspot.com/2020/04/cma-inter-study-notes_18.html

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