FYJC Objective Questions - Answer Key
Q.1 State whether the following statements are True or False:
1. Q.1State whether the following statements are True or False: - Answer: False
2. - Answer: False
3. 1.Every item of Trial Balance has only one effect. - Answer: True
4. - Answer: True
5. 2.Bank overdraft is an asset of the business. - Answer: False
6. - Answer: True
7. 3.Debiting any item in the cash book increases the overdraft as per Cash Book. - Answer: True
8. - Answer: True
9. 4.The entry which is recorded on both sides of Cash Book is called contra entry. - Answer: True
10. - Answer: True
11. 5.Depreciation is a capital expenditure. - Answer: True
12. - Answer: True
13. 6.Depreciation is a charged on Fixed Assets. - Answer: False
14. - Answer: False
15. 7.Cheques issued to bank for payment but not presented appears in the Pass Book only. -
Answer: False
16. - Answer: False
17. 8.Depreciation decreases the value of the asset. - Answer: True
18. - Answer: False
19. 9. Wages paid for production of goods are debited to Wages A/c. - Answer: True
20. - Answer: False
Q.2 Select the most appropriate alternative:
1. - Answer: c) receipts
2. 11. Income received in advance is a liability. - Answer: a) Credit
3. - Answer: c) Profit and Loss A/c
4. 12. Cheques deposited into bank but not yet cleared appears in the Pass Book only. -
Answer: b) Error of Omission
5. - Answer: a) Gross Loss
6. 13. Depreciation increases the value of the asset. - Answer: a) favourable
7. - Answer: b) Profit & Loss
8. 14. Wages paid for installation of Machinery are debited to Wages A/c. - Answer: a) Gross
Loss
9. - Answer: d) two sided error
10. 15. Rectification entries are passed in Cash Book. - Answer: b) Capital
11. - Answer: c) current
12. 16. Income due but not received is a liability. - Answer: b) Profit & Loss
13. - Answer: d) Balance Sheet
14. 17. Bank statement is sent by bank to businessman. - Answer: d) Trial Balance
15. - Answer: b) Scrap value
16. 18. It is not necessary to depreciate an asset if it is not in use. - Answer: c) receipts
17. - Answer: a) Straight Line Method
18. 19. Credit balance of Profit and Loss A/c shows net profit. - Answer: c) Commission
19. - Answer: b) Liabilities
20. 20. Only cash and personal accounts are maintained under Single Entry System. - Answer:
b) less
Q.3 Give one Word, Term or Phrase for the following statements:
1. - Answer: Two sided errors
2. Q.2Select the most appropriate alternatives given below: - Answer: Prepaid Expenses
3. - Answer: Current Account
4. 1.Direct deposit made by customer into our bank is recorded in the ____________ side of -
Answer: Scrap Value
5. the Cash Book. - Answer: Provision for Bad Debts
6. a) Paymentsb) Creditc) receiptsd) both - Answer: Cash Book
7. - Answer: Balance Sheet
8. 2.Bank balance as per Pass Book means ____________ balance of Pass Book. - Answer:
Suspense Account
9. a) Creditb) Openingc) Debitd) Closing - Answer: Capital Gain
10. - Answer: Bank Reconciliation Statement
11. 3.The balance of depreciation A/c is transferred to _____________. - Answer: Analytical Petty
Cash Book
12. a) Manufacturing A/c b) Trading A/cc) Profit and Loss A/c d) Balance Sheet - Answer:
Current Account
13. - Answer: Depreciation
14. 4.If transaction is totally omitted from the books, it is called ___________. - Answer: Closing
Stock
15. a) Error of recording b) Error of Omission c) Error of Principle d) Error of Commission -
Answer: Compensating Error
16. - Answer: Petty Cashier
17. 5.Debit balance of Trading Account means ___________. - Answer: Useful Life
18. a) Gross Loss b) Net Loss c) Gross Profit d) Net Profit - Answer: Overcasting
19. - Answer: Profit & Loss Account
20. 6.Debit balance as per cash book is also known as ___________ balance. - Answer: Single
Entry System
Q.4 Find the odd one out:
1. - Answer: Debtors
2. 7. Discount Allowed is transferred to debit side of __________________ account. -
Answer: Interest paid on Loan
3. a) Current A/c b) Profit & Loss c) Trading d) Capital - Answer: Reserve for
Doubtful Debts
4. - Answer: Debtors
5. 8. Debit balance of Trading Account means _____________ . - Answer: Interest on
Drawings
6. a) Gross Loss b) Net Loss c) Net Profit d) Gross Profit - Answer:
Interest paid on Loan
7. - Answer: Outstanding Expenses
8. 9. The type of error for which journal entry is always required for rectification __________
- Answer: Goodwill
9. a) overcasting b) one sided error c) undercasting d) two sided error - Answer:
Factory Building
10. - Answer: Commission receivable
11. 10. The amount spent on installation of new machinery is a ________________
expenditure. - Answer: Bank overdraft
12. a) Revenue b) Capital c) Deferred Revenue d) Income - Answer: Bad debts
13. - Answer: Plant and Machinery
14. 11. Bank gives overdraft facility to __________ account holder. - Answer: Debtors
15. a) savings b) recurring c) current d) fixed - Answer: Loan to Riya
16. - Answer: Factory Rent
17. 12. Discount earned is transferred to credit side of __________. - Answer: Reserve for
Doubtful Debt
18. a) Current A/c b) Profit & Loss c) Trading d) Capital - Answer: Plant and
Machinery
19. - Answer: Factory rent
20. 13. _________ is a statement which shows the financial position of business on a - Answer:
Stock in trade
