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Latest Bihar STET Commerce Exam Question (Objective Questions), MCQ in English

Subjects : Specific Subject (Commerce), Art of Teaching, General Knowledge, Environmental Science, Mathematical aptitude, Logical Reasoning

Question Bank Bihar STET Commerce (Paper 2) Exam - English
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Specific Subject (Commerce)

Question 1Single Answer
Book-keeping is mainly concerned with which activity?
  1. A
    Recording financial transactions
  2. B
    Auditing financial statements
  3. C
    Forecasting market demand
  4. D
    Recruiting employees
Question 2Single Answer
Accounting is generally known as the language of which field?
  1. A
    Science
  2. B
    Literature
  3. C
    Politics
  4. D
    Business
Question 3Single Answer
Which is the primary objective of book-keeping?
  1. A
    Determining market share
  2. B
    Recruiting employees
  3. C
    Systematic recording of transactions
  4. D
    Increasing production
Question 4Single Answer
Which transaction is recorded in the books of accounts?
  1. A
    Appointment of a manager
  2. B
    Planning a new product
  3. C
    Discussion with a supplier
  4. D
    Purchase of goods for cash
Question 5Single Answer
Which concept treats the business and its owner as separate entities?
  1. A
    Business entity concept
  2. B
    Going concern concept
  3. C
    Matching concept
  4. D
    Realisation concept
Question 6Single Answer
According to the money measurement concept, which transactions are recorded?
  1. A
    Only cash transactions
  2. B
    Only transactions measurable in monetary terms
  3. C
    Only credit transactions
  4. D
    Only profitable transactions
Question 7Single Answer
The assumption that a business will continue for the foreseeable future is called what?
  1. A
    Consistency
  2. B
    Conservatism
  3. C
    Going concern
  4. D
    Materiality
Question 8Single Answer
The accounting equation is based mainly on which principle?
  1. A
    Conservatism
  2. B
    Materiality
  3. C
    Dual aspect
  4. D
    Consistency
Question 9Single Answer
Assets are equal to which combination?
  1. A
    Revenue + Expenses
  2. B
    Capital – Liabilities
  3. C
    Capital + Liabilities
  4. D
    Purchases + Sales
Question 10Single Answer
Which of the following is an asset?
  1. A
    Machinery
  2. B
    Bank loan
  3. C
    Creditors
  4. D
    Capital
Question 11Single Answer
Which of the following represents a liability?
  1. A
    Debtors
  2. B
    Stock
  3. C
    Cash
  4. D
    Creditors
Question 12Single Answer
Capital represents the claim of whom against business assets?
  1. A
    Owner
  2. B
    Customers
  3. C
    Employees
  4. D
    Government
Question 13Single Answer
Drawings result in which change in owner's capital?
  1. A
    Decrease
  2. B
    Increase
  3. C
    No change
  4. D
    Doubling
Question 14Single Answer
Which document is generally issued by a seller for credit sales?
  1. A
    Invoice
  2. B
    Debit note
  3. C
    Pay-in-slip
  4. D
    Cheque counterfoil
Question 15Single Answer
A voucher primarily provides what?
  1. A
    Evidence of a transaction
  2. B
    Future sales forecast
  3. C
    Audit opinion
  4. D
    Market information
Question 16Single Answer
Transactions are first recorded chronologically in which book?
  1. A
    Ledger
  2. B
    Journal
  3. C
    Balance Sheet
  4. D
    Trial Balance
Question 17Single Answer
Which book is known as the book of original entry?
  1. A
    Ledger
  2. B
    Journal
  3. C
    Balance Sheet
  4. D
    Trading Account
Question 18Single Answer
Which book is known as the principal book of accounts?
  1. A
    Ledger
  2. B
    Cash memo
  3. C
    Invoice
  4. D
    Voucher
Question 19Single Answer
The process of transferring journal entries to ledger accounts is called what?
  1. A
    Casting
  2. B
    Posting
  3. C
    Balancing
  4. D
    Auditing
Question 20Single Answer
A journal entry involving more than two accounts is called what?
  1. A
    Opening entry
  2. B
    Transfer entry
  3. C
    Closing entry
  4. D
    Compound entry
Question 21Single Answer
Which subsidiary book records credit purchases of goods?
  1. A
    Journal Proper
  2. B
    Sales Book
  3. C
    Cash Book
  4. D
    Purchases Book
Question 22Single Answer
Cash purchases of goods are recorded in which book?
  1. A
    Purchases Book
  2. B
    Sales Book
  3. C
    Cash Book
  4. D
    Returns Book
Question 23Single Answer
Credit purchase of machinery is generally recorded in which book?
  1. A
    Purchases Book
  2. B
    Sales Book
  3. C
    Journal Proper
  4. D
    Returns Inward Book
Question 24Single Answer
The Sales Book records which transactions?
  1. A
    Credit sales of goods
  2. B
    Cash sales of goods
  3. C
    Sale of fixed assets
  4. D
    Cash and credit sales of assets
Question 25Single Answer
Goods returned to suppliers are entered in which book?
  1. A
    Returns Inward Book
  2. B
    Cash Book
  3. C
    Sales Book
  4. D
    Returns Outward Book
Question 26Single Answer
Goods returned by customers are recorded in which book?
  1. A
    Purchases Book
  2. B
    Returns Outward Book
  3. C
    Returns Inward Book
  4. D
    Bills Payable Book
Question 27Single Answer
Another name for Returns Inward Book is what?
  1. A
    Purchase Returns Book
  2. B
    Sales Returns Book
  3. C
    Bills Receivable Book
  4. D
    Petty Cash Book
Question 28Single Answer
Another name for Returns Outward Book is what?
  1. A
    Sales Returns Book
  2. B
    Journal Proper
  3. C
    Sales Book
  4. D
    Purchase Returns Book
Question 29Single Answer
Bills received from debtors are recorded in which subsidiary book?
  1. A
    Purchases Book
  2. B
    Bills Payable Book
  3. C
    Bills Receivable Book
  4. D
    Sales Returns Book
Question 30Single Answer
Bills accepted in favour of creditors are entered in which book?
  1. A
    Bills Receivable Book
  2. B
    Bills Payable Book
  3. C
    Cash Book
  4. D
    Sales Book
Question 31Single Answer
A Cash Book records which transactions?
  1. A
    Only credit transactions
  2. B
    Cash and bank transactions
  3. C
    Only purchase transactions
  4. D
    Only sales transactions
Question 32Single Answer
A three-column Cash Book generally contains which columns?
  1. A
    Bank, debtors and creditors
  2. B
    Sales, purchases and returns
  3. C
    Cash, stock and capital
  4. D
    Cash, bank and discount
Question 33Single Answer
A contra entry occurs when a transaction affects which accounts?
  1. A
    Cash and bank
  2. B
    Purchases and sales
  3. C
    Debtors and creditors
  4. D
    Capital and drawings
Question 34Single Answer
Petty Cash Book is generally maintained for what purpose?
  1. A
    Small recurring expenses
  2. B
    Large capital expenditure
  3. C
    Credit sales
  4. D
    Credit purchases
Question 35Single Answer
Under the imprest system, petty cash is restored to what amount?
  1. A
    Double the expenditure
  2. B
    Zero balance
  3. C
    Original fixed amount
  4. D
    Bank balance
Question 36Single Answer
Trade discount is normally recorded in the books in what manner?
  1. A
    Separately as expense
  2. B
    Separately as income
  3. C
    It is not separately recorded
  4. D
    As an asset
Question 37Single Answer
Cash discount is allowed mainly to encourage what?
  1. A
    Bulk purchasing
  2. B
    Higher production
  3. C
    Prompt payment
  4. D
    Long credit periods
Question 38Single Answer
Which note is generally issued by a buyer when goods are returned to a supplier?
  1. A
    Debit note
  2. B
    Credit note
  3. C
    Cash memo
  4. D
    Invoice
Question 39Single Answer
Which note is generally issued by a seller when a customer returns goods?
  1. A
    Debit note
  2. B
    Credit note
  3. C
    Pay-in-slip
  4. D
    Promissory note
Question 40Single Answer
Journal Proper is used mainly for transactions that cannot be recorded where?
  1. A
    In Trial Balance
  2. B
    In financial statements
  3. C
    In vouchers
  4. D
    In subsidiary books
Question 41Single Answer
According to the traditional rule, which account is debited when an asset comes in?
  1. A
    Real account
  2. B
    Personal account
  3. C
    Nominal account
  4. D
    Capital account
Question 42Single Answer
The rule "Debit the receiver and credit the giver" applies to which account?
  1. A
    Trading account
  2. B
    Real account
  3. C
    Nominal account
  4. D
    Personal account
Question 43Single Answer
The rule "Debit all expenses and losses" applies to which account?
  1. A
    Personal account
  2. B
    Real account
  3. C
    Asset account
  4. D
    Nominal account
Question 44Single Answer
The rule for income and gains requires them to be what?
  1. A
    Debited
  2. B
    Carried forward as assets
  3. C
    Ignored
  4. D
    Credited
Question 45Single Answer
Cash introduced by the proprietor is recorded by debiting which account?
  1. A
    Capital
  2. B
    Drawings
  3. C
    Cash
  4. D
    Purchases
Question 46Single Answer
Goods purchased for cash are recorded by crediting which account?
  1. A
    Cash
  2. B
    Purchases
  3. C
    Sales
  4. D
    Capital
Question 47Single Answer
Credit sales to Mohan will result in a debit to which account?
  1. A
    Sales Account
  2. B
    Purchases Account
  3. C
    Cash Account
  4. D
    Mohan's Account
Question 48Single Answer
Salary paid in cash requires a debit to which account?
  1. A
    Cash Account
  2. B
    Salary Account
  3. C
    Capital Account
  4. D
    Sales Account
Question 49Single Answer
Commission received in cash is credited to which account?
  1. A
    Cash Account
  2. B
    Commission Account
  3. C
    Capital Account
  4. D
    Debtors Account
Question 50Single Answer
Goods withdrawn by the proprietor for personal use are debited to which account?
  1. A
    Drawings
  2. B
    Purchases
  3. C
    Sales
  4. D
    Cash
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