M.C.Q (1 Marks)

MCQ 11 Mark

payment of bonus to the employees by an insurance company is which type of activity?
i. Operating Activity
ii. Investing Activity
iii. Financing Activity
iv. Both operating and Financing Activity

A
iv and i
B
only i
C
ii and iii
D
iii and iv

Answer

(b) only i
Explanation:
Payment of bonus to the employees by an insurance company or any other company is regarded as cash flow from operating activities.

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MCQ 21 Mark

Koval Ltd. is a financing company. Under which activity will the amount of interest paid on a loan settled in the current year be shown?
i. Investing Activities
ii. Financing Activities
iii. Both Investing and Financing Activities
iv. Operating Activities

A
ii and iii
B
i and ii
C
iii and iv
D
only iv

Answer

(d) only iv
Explanation:
Taking and granting loans is main activity for financial company .so transactions related to loans will be as operating activities

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MCQ 31 Mark

Fly Ltd, a stock broker, purchased 5,000 shares of Tata Housing Ltd. It is:

A
Financing Activity
B
Operating Activity
C
General Activity
D
Investing Activity

Answer

(d) Investing Activity
Explanation:
receiving brokerage is main activity but purchase of shares is part of investment

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MCQ 41 Mark

On the basis of following data, the cost of revenue from operations by a company will be:
Opening Inventory ₹ 70,000; Closing Inventory ₹ 80,000; Inventory Turnover Ratio 6 Times.

A
₹ 1,50,000
B
₹ 4,80,000
C
₹ 4,50,000
D
₹ 90,000

Answer

(c) ₹ 4,50,000
Explanation:
Inventory turnover ratio = $\frac{\text { Cost of good sold }}{\text { Average Inventory }}=\frac{\text { Cost of good sold }}{75,000}$
Cost of good sold = ₹ 75,000 $\times$ 6 times = ₹ 4,50,000
Average inventory = $\frac{\text { Opening inventory }+ \text { closing inventory }}{2}=\frac{70,000+80,000}{2}=$ ₹ 75,000

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MCQ 51 Mark

Which of the following will not covered under finance cost?
i. Discount on issue of debentures written off
ii. Interest paid on bank overdraft
iii. Bank charges
iv. Premium payable on redemption of debentures written off

A
Only ii
B
Only iv
C
Only iii
D
Only i

Answer

(c) Only iii
Explanation:
Bank charges will not be covered under the finance costs.

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MCQ 61 Mark

The financial statements of a business enterprise include:

A
All of these
B
Profit & Loss Account
C
Cash Flow Statement
D
Balance Sheet

Answer

(a) All of these
Explanation:
Financial statements of an enterprise include a balance sheet, profit & loss a/c and cash flow statement.

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Accountancy M.C.Q (1 Marks)

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