Questions with Answer Model Test  IBPS

1. Which of the following is/are current asset?
(a) Stock
(b) Bill receivable
(c) Prepaid Expenses
(d) All of these
Ans (d)
 
2. Which of the following sets of expenses are the direct expenses of business?
(a) Wages, Carriage Inward, Octroi
(b) Postage, Wages, Carriage Inward
(c) Purchase, Wages, Coal Expenses 
(d) Both (a) and (c)
Ans (d)
 
3. Suspense Account given in the Trial Balance will be entered in the :
(a) Manufacturing A/c
(b) Balance Sheet
(c) Trading A/c
(d) Profit and loss A/c
Ans (b)
 
4. The accounting equation is based on
(a) Dual aspect
(b) Business Entity
(c) Going concern
(d) All of these
Ans (a)
 
5. The maximum Share Capital that a company may issue in accordance with its instrument of incorporation is known as its :
(a) Issued Share Capital
(b) Paid-up share capital
(c) Subscribed Share Capital
(d) Authorised share capital.
Ans (d)
 
6. Interest receivable from Y, a Borrower Account is-
(a) Natural Personal Account
(b) Artificial Personal Account
(c) Representative Personal Account 
(d) None of these
Ans (c)
 
7. According to Section 78 of the Companies Act 1956, the amount in the securities premium A/c can be used for the purpose of
(a) Issue of fully paid bonus shares
(b) Writing off preliminary expenses
(c) Both (a) & (b)
(d) None of these
Ans (c)

8. Closing stock is valued at
(a) Cost price
(b) Cost price or Net realisable value whichever is lower
(c) Cost price or Net realisable value whichever is higher
(d) Net realisable value
Ans (b)
 
9. When the goods are returned to a supplier
(a) A Debit note is sent to him
(b) An Account sale is sent to him
(c) A receipt is sent to him
(d) Either (b) or (c)
Ans (a)
 
10. Bills receivable endorsed are debited to
(a) Bills Payable A/c
(b) Debtor’s
(c) Endorsee A/c
(d) A/c Bills Receivable A/c
Ans (c)
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