CBSE Class 10 Accountancy Elements Of Book Keeping MCQs

Question: Endorsing the bill means

a) Transferring the bill to another person by the holder

b) Depositing the bill with the government treasury

c) Giving the bill on charity

d) Receiving the bill from creditors

Answer: Transferring the bill to another person by the holder

Question: Drawer in bill of exchange is a person

a) Who draws a bill

b) Who accepts the bill

c) Who makes the payment

d) Who receives the payment

Answer: Who draws a bill

Question: Single Entry System is a

a) Incomplete System

b) Complete System

c) Hybrid System

d) None of the options

Answer: Incomplete System

Question: Which of the following is correct about Single Entry System

a) Simple Method

b) Difficult Method

c) Expensive Method

d) Both difficult and expensive method

Answer: Simple Method

Question: When closing capital is less than the opening capital, it denotes

a) Loss, if there is no drawing

b) Profit

c) Loss

d) Expenses

Answer: Loss, if there is no drawing

Question: When closing capital is more than the opening capital, it denotes

a) Profit, if there is no introduction of fresh capital

b) Drawings

c) Loss

d) No profit no loss

Answer: Profit, if there is no introduction of fresh capital

Question: Single entry system of book keeping is

a) Unscientific

b) Accurate

c) Systematic

d) Rationale

Answer: Unscientific

Question: Generally accounts under single entry system are maintained by

a) Sole Trader

b) Company

c) Society

d) Partnership Firms

Answer: Sole Trader

Question: Identify the current asset from the following

a) Cash at bank

b) Plant

c) Creditors

d) Capital

Answer: Cash at bank

Question: Land is

a) Fixed asset

b) Current Asset

c) Capital

d) A liability

Answer: Fixed asset

Question: Wages and Salaries appearing in Trial Balance is shown

a) On the debit side of Trading A/c

b) On the debit side of Profit and Loss Account

c) On the Asset Side of the Balance Sheet

d) On the liabilities side of Balance Sheet

Answer: On the debit side of Trading A/c

Question: Excess of credit in Profit and Loss account is called

a) Net profit

b) Net loss

c) Gross profit

d) Gross loss

Answer: Net profit

Question: Balance sheet shows

a) Both assets & Liabilities

b) Assets only

c) Liabilities only

d) Neither assets nor liabilities

Answer: Both assets & Liabilities

Question: Balance Sheet is prepared

a) On a particular date

b) For a particular period

c) For a decade

d) For the whole year

Answer: On a particular date

Question: Trading and Profit & Loss Account is prepared

a) At the end of accounting year

b) On every Diwali

c) At the end of calendar year

d) At the beginning of the accounting year

Answer: At the end of accounting year

Question: Balance sheet shows

a) Financial position

b) Profit or loss

c) Errors of accounts

d) Total debtors

Answer: Financial position

Question: Trading Account shows

a) Gross profit

b) Financial position of the concern

c) Net profit

d) Net profit and financial position

Answer: Gross profit

Question: The purpose of preparing final accounts is to ascertain

a) Profit or loss and financial position

b) Profit or loss

c) Capital

d) The value of assets

Answer: Profit or loss and financial position

Question: Number of parties involved in a bill of exchange are :

a) 2

b) 3

c) 4

d) 5

Answer: 3

Question: On discounting of a bill of exchange with the bank,the amount of discount is borne by:

a) Drawer

b) Drawee

c) Payee

d) Bank

Answer: Drawer

Question: If the amount of a bill of exchange is paid before due date it is called

a) Discounting of the bill

b) Retiring the bill

c) Dishonor of the bill

d) Renewal of the bill

Answer: Retiring the bill

Question: On receiving a request from the drawer to renew the discounted bill, who is debited by the drawer?

a) The bank

b) The drawer

c) The drawee

d) New Bill Receivable

Answer: The drawee

Question: A bill of exchange of Rs. 2000 is endorsed in favour of Krishan a creditor of Rs.2100 in full settlement. By what amount Krishan will be debited?

a) Rs.1900

b) Rs.2,000

c) Rs.2100

d) None of the above

Answer: Rs.2100

Question: An amount of Rs. 4000 spent on the repairs of office building was debited to Building account. What type of error is committed?

a) Error of omission

b) Error of Commission

c) Compensatory error

d) Error of principle

Answer: Error of principle

Question: sales of Rs. 2000 to Neha is recorded in Purchases Book. Which of the following accounts is to be credited.

a) Purchases A/c only

b) Sales A/c only

c) Both Purchases A/c & Sales A/c

d) Neha’s A/c

Answer: Both Purchases A/c & Sales A/c

Question: The Sales Book is over cast by Rs. 100. This is an example of

a) Error of omission

b) Error of commission

c) Error of principle

d) Compensatory Error.

Answer: Error of commission

Question: Rs.1480 received from a debtor Rohit, were credited to Mohit as Rs.1,840.On rectification, Suspense account is to be credited by

a) Rs.1480

b) Rs. 1840

c) Rs. 360

d) Rs. 3320

Answer: Rs. 360

Question: Suspense account is used

a) To rectify double sided error

b) To rectify one sided error

c) To rectify error before the

d) None of the above.

Answer: To rectify one sided error