MCQ Questions for Class 12 Business Studies Chapter 7 Directing with Answers

Directing Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Business Studies Chapter 7 Directing with Answers Pdf free download. MCQ Questions for Class 12 Business Studies with Answers were prepared based on the latest exam pattern. We have provided Directing Class 12 Business Studies MCQs Questions with Answers to help students understand the concept very well.

Class 12 Business Studies Chapter 7 Directing MCQ With Answers

Business Studies Class 12 Chapter 7 MCQs On Directing

Question 1.
Which one of the following is an element of directing?
(a) Delegating authority
(b) Designing organisation structure
(c) Communication
(d) Designing control system

Answer

Answer: (c) Communication

Question 2.
Motivation is not
(a) a complex process.
(b) related to satisfaction
(c) an easy process.
(d) a goal-directed behaviour

Answer

Answer: (c) an easy process.

Question 3.
Need hierarchy theory of motivation has been given by
(a) Maslow.
(b) Fayol.
(c) Taylor.
(d) Koontz.

Answer

Answer: (a) Maslow.

Need hierarchy theory of motivation has been given by

Question 4.
Which one of the following is not a financial incentive?
(a) Bonus
(b) Provident Fund
(c) Co-partnership
(d) Challenging job

Answer

Answer: (d) Challenging job

Question 5.
Which one of the following is a non-financial incentive?
(a) Recognition
(b) Perquisite
(c) Retirement benefit
(d) Stock option

Answer

Answer: (a) Recognition

Question 6.
Leadership is based on a superior’s
(a) authority.
(b) responsibility
(c) accountability.
(d) pesuasive Communication

Answer

Answer: (d) pesuasive Communication

Question 7.
Encoding is related to
(a) converting message into symbols.
(b) converting symbols into machine
(c) transmitting message.
(d) receiving symbols

Answer

Answer: (a) converting message into symbols.

Question 8.
Grapevine is a form of
(a) formal communication.
(b) channel of communication
(c) informal communication.
(d) barrier to communication

Answer

Answer: (c) informal communication.

Question 9.
Which one of the following is a semantic barrier?
(a) Organisational policy
(b) Lack of attention
(c) Technical jargon
(d) Status

Answer

Answer: (c) Technical jargon

Question 10.
___ is the process of stimulating people to engage in goal-directed behaviour.
(a) Communication
(b) Motivation
(c) Directing
(d) None of these

Answer

Answer: (b) Motivation

Question 11.
The channel of communication which is transmitted through informal channels is called ___
(a) Horizontal communication
(b) Formal communication
(c) Grapevine
(d) Gang plank

Answer

Answer: (c) Grapevine

Question 12.
___ aims at instructing, guiding, motivating people to achieve the desired results.
(a) Communication
(b) Directing
(c) Motivating
(d) Organising

Answer

Answer: (b) Directing

Question 13.
___ is the process of converting a message into symbols.
(a) Encoding
(b) Decoding
(c) Coding
(d) Both (b) and (c)

Answer

Answer: (a) Encoding

Question 14.
Directing flows in ___ direction.
(a) Upward
(b) Downward
(c) Diagonal
(d) Both (a) and (c)

Answer

Answer: (b) Downward

Question 15.
___ is the process of exchanging information and understanding between two or more persons.
(a) Directing
(b) Leadership
(c) Communication
(d) Motivation

Answer

Answer: (c) Communication

Question 16.
Directing takes place at ___ levels of management.
(a) Top
(b) Middle
(c) Lower
(d) All

Answer

Answer: (d) All

Question 17.
Identify the style of leadership in which the superior uses file forces from within the groups in order to establish control.
(a) Autocratic leadership
(b) Democratic leadership
(c) Laissez-faire leadership
(d) Authoritarian leadership

Answer

Answer: (b) Democratic leadership

Question 18.
Dheeraj Madan works as a Human Resource Manager in Busybee Limited. He gives due care in designing jobs, so that it offers a meaningful work experience by assuming a diversity of work content requiring higher level of knowledge. Identify the type of incentive being adopted by the company.
(a) Employee recognition programme
(b) Organisational climate
(c) Career advancement opportunities
(d) Job enrichment

Answer

Answer: (c) Career advancement opportunities

Question 19.
During the year 2018, Halla Walla Limited made surplus profits due to growing reputation of the business as a result of sincerity of its employees. In order to give due recognition to its employees and motivate them to continue with the good work, the company decided to give a certain percentage of profits to them. Identify the type of financial incentive being adopted by the company.
(a) Perquisites
(b) Productivity linked wage incentives
(c) Co-partnership
(d) Profit sharing

Answer

Answer: (d) Profit sharing

Question 20.
Yamini received a special gold coin from her school management for exceptionally good board result of her students in her subject. Identify the need of Yamini being fulfilled as per Maslow’s Need Heirarchy Theory.
(a) Esteem Needs
(b) Belonging Needs
(c) Self Actualisation Needs
(d) Basic Physiological Needs

Answer

Answer: (a) Esteem Needs

Yamini received a special gold coin from her school management for exceptionally good board result of her students in her subject. Identify the need of Yamini being fulfilled as per Maslow’s Need Heirarchy Theory.

True or False

State with reasons whether the following statements are True or False.

1. Leadership and motivation are the two elements of directing.

Answer

Answer: True; leadership and motivation are the two elements of directing.

2. Directing takes place at the top, middle and bottom level of management.

Answer

Answer: True; directing takes place at all levels of management.

3. Encoding refers to converting symbols received by the receiver into meaning.

Answer

Answer: False; decoding is converting symbols received by the receiver into meaning.

4. Democratic leadership style involves giving orders by a superior to his subordinates and expecting that his orders will be obeyed by them.

Answer

Answer: False; the given leadership style is authoritative leadership style.

5. Formal and Informal communication flow through officially prescribed channels of communication.

Answer

Answer: False; only formal communication flows through officially prescribed channels of communication.

We hope the given NCERT MCQ Questions for Class 12 Business Studies Chapter 7 Directing with Answers Pdf free download will help you. If you have any queries regarding Directing CBSE Class 12 Business Studies MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Business Studies MCQ:

MCQ Questions for Class 12 Business Studies Chapter 6 Staffing with Answers

Staffing Class 12 MCQ Online Test With Answers Questions

Check the below Online Education NCERT MCQ Questions for Class 12 Business Studies Chapter 6 Staffing with Answers Pdf free download. MCQ Questions for Class 12 Business Studies with Answers were prepared based on the latest exam pattern. We have provided Staffing Class 12 Business Studies MCQs Questions with Answers to help students understand the concept very well.

Class 12 Business Studies Chapter 6 Staffing MCQ With Answers

Business Studies Class 12 Chapter 6 MCQs On Staffing

Question 1.
In staffing function, which one of the following groups of managers is involved?
(a) Only top managers
(b) Only human resource managers
(c) Only middle managers
(d) All managers

Answer

Answer: (d) All managers

Question 2.
Which one of the following is not an importance of staffing?
(a) Suitable division of work among employees
(b) Developing skills in employees
(c) Employee satisfaction
(d) Efficient use of human resources

Answer

Answer: (a) Suitable division of work among employees

Which one of the following is not an importance of staffing?

Question 3.
In staffing function, which combination of activities in sequential order is correct?
(a) Recruitment, selection, training, placement
(b) Selection, training, recruitment, placement
(c) Recruitment, selection, placement, training
(d) Recruitment, training, selection, placement

Answer

Answer: (c) Recruitment, selection, placement, training

Question 4.
Which one of the following sources is most relevant to recruiting managerial personnel?
(a) Direct recruitment
(b) Employment exchange
(c) Advertisement
(d) Casual callers

Answer

Answer: (c) Advertisement

Question 5.
Which one of the following is an internal source of recruitment?
(a) Transfer
(b) Employee recommendations
(c) Campus recruitment
(d) Personal contacts

Answer

Answer: (a) Transfer

Question 6.
Which type of learning is management development concerned with?
(a) Specific job skill development
(b) Multi-skill development
(c) Manual skill development
(d) Inventory development

Answer

Answer: (b) Multi-skill development

Question 7.
For which group of persons is vestibule training relevant?
(a) Operatives
(b) Top management
(c) Middle management
(d) Supervisory management

Answer

Answer: (a) Operatives

Question 8.
___ is a process of learning and growth.
(a) Training
(b) Development
(c) Recruitment
(d) Both (a) and (c)

Answer

Answer: (b) Development

Question 9.
Time perspective in training is ___
(a) Short term
(b) Long term
(c) Medium term
(d) Medium or Long term

Answer

Answer: (a) Short term

Question 10.
___ leads to optimum use of resources.
(a) Recruitment
(b) Staffing
(c) Development
(d) Training

Answer

Answer: (b) Staffing

Question 11.
Web publishing is a/an ___ source of recruitment.
(a) External
(b) Internal
(c) Campus
(d) Both (b) and (c)

Answer

Answer: (a) External

Question 12.
___ is a limitation of internal source of recruitment.
(a) Higher costs
(b) Inbreeding
(c) Lengthy process
(d) Unreliability

Answer

Answer: (b) Inbreeding

Question 13.
___ is the “On the Job Training” method used to train electriciAnswer:
(a) Web publishing
(b) Job rotation
(c) Coaching
(d) Apprenticeship

Answer

Answer: (d) Apprenticeship

Question 14.
When Jaskaran Singh applied for the post of Computer teacher in a school in Bhubaneswar, he was asked to prepare a powerpoint presentation on a particular topic during selection procedure. Identify the type of selection test being mentioned in the above lines,
(a) Trade test
(c) Intelligence test
(b) Personality test
(d) Interest test

Answer

Answer: (a) Trade test

Question 15.
When the Principal of Golden Life Public School was on the verge of retirement, the management of the school contacted a specialised business firm in order to fill up the vacancy. Identify the source of recruitment being used by the management.
(a) Labour contractors
(b) Advertising
(c) Placement agencies and management consultants
(d) Direct recruitment

Answer

Answer: (c) Placement agencies and management consultants

Question 16.
Aruna applied for the post of an art and craft teacher in a reputed school in Delhi. After successfully clearing the tests and the interview, she was offered an employment contract containing the terms and conditions, and the date of joining. Identify the steps in the staffing process being described in the above lines.
(a) Reference and background checking
(b) Selection decision
(c) Job offer
(d) Contract of employment

Answer

Answer: (c) Job offer

Question 17.
Kundan Lai joined a food processing unit as a factory worker. Since he was expected to work on sophisticated machinery, he was asked to undergo a special training. Identify the training method with reference to above lines.
(a) Vestibule training
(b) Apprenticeship training
(c) Internship training
(d) Induction training

Answer

Answer: (a) Vestibule training

Question 18.
Identify the correct sequence of the steps involved in the selection process
(a) Medical Examination, Contract of Employment, Reference and Background checking, Selection Decision, Job Offer
(b) Reference and Background checking, Selection Decision, Contract of Employment, Medical Examination, Job Offer
(c) Job Offer, Reference and Background checking, Selection Decision, Medical Examination, Contract of Employment
(d) Reference and Background checking, Selection Decision, Medical Examination, Job Offer, Contract of Employment

Answer

Answer: (d) Reference and Background checking, Selection Decision, Medical Examination, Job Offer, Contract of Employment

Question 19.
Which of the following activities lie within the scope of Human Resource Department?
(a) Formulating compensation and incentive plans
(b) Ensuring healthy labour relations and union management relations
(c) Creating provision for social security and welfare of employees
(d) All of the above

Answer

Answer:

Question 20.
This type of training method is adopted when employees have to handle sophisticated machinery and equipment at their workplace.
(a) Apprenticeship training
(b) Induction training
(c) Internship training
(d) Vestibule training

Answer

Answer: (d) All of the above

This type of training method is adopted when employees have to handle sophisticated machinery and equipment at their workplace.

True or False

State with reasons whether the following statements are True or False.

1. Promotion is an external source of recruitment.

Answer

Answer: False; it is an internal source.

2. Preliminary screening is a step in the selection process.

Answer

Answer: True; preliminary screening is a step in the selection process. It involves eliminating unqualified or unfit candidates.

3. Development is the process of increasing knowledge and skills.

Answer

Answer: False; that process is training.

4. Vestibule training is a method used in development of employees.

Answer

Answer: False; vestibule training is a method used in training of employees.

5. Recruitment leads to optimum use of resources.

Answer

Answer: False; staffing leads to optimum use of resources.

6. Staffing is searching for prospective candidates.

Answer

Answer: False; searching for prospective candidates is recruitment.

We hope the given NCERT MCQ Questions for Class 12 Business Studies Chapter 6 Staffing with Answers Pdf free download will help you. If you have any queries regarding Staffing CBSE Class 12 Business Studies MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Business Studies MCQ:

MCQ Questions for Class 12 Business Studies Chapter 4 Planning with Answers

Planning Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Business Studies Chapter 4 Planning with Answers Pdf free download. MCQ Questions for Class 12 Business Studies with Answers were prepared based on the latest exam pattern. We have provided Planning Class 12 Business Studies MCQs Questions with Answers to help students understand the concept very well.

Class 12 Business Studies Chapter 4 Planning MCQ With Answers

Business Studies Class 12 Chapter 4 MCQs On Planning

Planning Class 12 MCQ Question 1.
Pervasiveness of planning indicates that planning
(a) is a top management function.
(b) extends throughout the organisation.
(c) is a future-oriented activity.
(d) is the first element of management process.

Answer

Answer: (b) extends throughout the organisation.

Planning MCQ Question 2.
Which one of the following is an importance of planning?
(a) Reducing uncertainty
(b) Identifying alternatives critically
(c) Developing leadership
(d) Selecting the most appropriate plan

Answer

Answer: (a) Reducing uncertainty

Which one of the following is an importance of planning?

Planning MCQs Class 12 Question 3.
Which one of the following is not a limitation of planning?
(a) Dynamic environment
(b) Costly process
(c) Rigidity
(d) Top management approach

Answer

Answer: (d) Top management approach

Question 4.
Which one of the following is a step of planning?
(a) Analysis of organisation structure
(b) Analysis of environment
(c) Analysis of employee behaviour
(d) Analysis of employee morale

Answer

Answer: (b) Analysis of environment

Question 5.
The basic role of strategy is to provide
(a) setting procedures.
(b) direction for action
(c) direction for motivation.
(d) direction for control

Answer

Answer: (b) direction for action

Question 6.
Which one of the following plans prescribes chronological steps for performing activities?
(a) Procedure
(b) Rule
(c) Policy
(d) Method

Answer

Answer: (a) Procedure

Question 7.
Which one of the following is a single-use plan?
(a) Strategy
(b) Rule
(c) Budget
(d) Method

Answer

Answer: (c) Budget

Question 8.
Decision-making is the case of __
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

Answer

Answer: (a) Planning

Question 9.
__ is a statement of expected results in numerical terms.
(a) Forecast
(b) Budget
(c) Plan
(d) Estimate

Answer

Answer: (b) Budget

Question 10.
___ is a feature of planning also referred to as primacy of planning.
(a) Pervasive
(b) Primary function of management
(c) Continuous
(d) Integrating

Answer

Answer: (b) Primary function of management

Question 11.
___ is a comprehensive plan for achieving its objectives.
(a) Strategy
(b) Method
(c) Rule
(d) Policy

Answer

Answer: (a) Strategy

Question 12.
___ is the type of plan which is time-bound and linked with measurable outcome.
(a) Strategy
(b) Policy
(c) Rule
(d) Budget

Answer

Answer: (d) Budget

Question 13.
___ is a standardised way or manner of performing a routine activity considering its objectives.
(a) Procedure
(b) Method
(c) Rule
(d) Programme

Answer

Answer: (b) Method

Question 14.
___ specifies the end to be achieved.
(a) Objective
(b) Strategy
(c) Policy
(d) Method

Answer

Answer: (a) Objective

Question 15.
___ are relevant to recurring activities.
(a) Single-use plans
(b) Standing plans
(c) Objectives
(d) Programmes

Answer

Answer: (b) Standing plans

Question 16.
In 2019 alone, Swiggy has launched operations in 300 towns and cities. Swiggy follows a two-step sequence while expanding to a small town. First, it provides more laborious training to restaurants and delivery partners compared to their counterparts in the city. Second, it focuses on building scale in operations and increase the restaurant’s reach to a larger base of consumers, including optimizing kitchens, resource planning among others. Identify the type of plan being described in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Procedure

Answer

Answer: (b) Strategy

Question 17.
Deepak is striving to earn a profit of 30% in the current financial year. Identify the type of plan being described in the above lines.
(a) Method
(b) Objective
(c) Strategy
(d) Programme

Answer

Answer: (b) Objective

Deepak is striving to earn a profit of 30% in the current financial year. Identify the type of plan being described in the above lines.

Question 18.
Ketan Enterprises adopts different ways to provide training to employees, like Job . Rotation, Coaching, Vestibule Training, Conference, Lecture Method and Role Playing. Identify the type of plan being described in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Procedure

Answer

Answer: (a) Method

Question 19.
The government has been doubling down on its efforts to switch to 100% electric vehicles by 2030. Many companies such as Tata Motors, Kinetic Motors, Maruti Suzuki and Hyundai Motors are all readying their EV models for a 2020 launch in order to support the plan. Identify the type of plan being described in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Objective

Answer

Answer: (b) Strategy

Question 20.
Based on National Common Mobility Card standards, India’s first indigenously developed inter-operable transport card was launched in March 2019 to make travel across various modes convenient. Identify the type of plan being described in the above lines.
(a) Strategy
(b) Programme
(c) Method
(d) Rule

Answer

Answer: (a) Strategy

True or False

State with reasons whether the following statements are True or False.

1. Rule is a specific statement that prescribes what is to be done or not to be done.

Answer

Answer: True; rule sets the conditions which must be observed in performing various activities.

2. Rule is the prescribed way or manner in which a task has to be performed considering its objectives.

Answer

Answer: False; method is the prescribed way.

3. Identifying alternative courses of action is a step in organising process.

Answer

Answer: False; it is a step in the planning process.

4. Method is a chronological sequence in which an activity should be performed.

Answer

Answer: False; procedure is the chronological sequence in which an activity should be performed.

5. The last step in the process of planning is “Plan Implementation.”

Answer

Answer: False; follow-up action is the last step.

6. Planning premises are the actual plans about the future organisational resources.

Answer

Answer: False; planning premises are the assumptions about future environmental scenario and organisational resources.

We hope the given NCERT MCQ Questions for Class 12 Business Studies Chapter 4 Planning with Answers Pdf free download will help you. If you have any queries regarding Planning CBSE Class 12 Business Studies MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Business Studies MCQ:

MCQ Questions for Class 12 Business Studies Chapter 3 Business Environment with Answers

Business Environment Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Business Studies Chapter 3 Business Environment with Answers Pdf free download. MCQ Questions for Class 12 Business Studies with Answers were prepared based on the latest exam pattern. We have provided Business Environment Class 12 Business Studies MCQs Questions with Answers to help students understand the concept very well.

Class 12 Business Studies Chapter 3 Business Environment MCQ With Answers

Business Studies Class 12 Chapter 3 MCQs On Business Environment

Business Environment Class 12 MCQ Question 1.
Which one of the following is not a feature of business environment?
(a) Uncertainty
(b) Interdependence
(c) Complexity
(d) Stability

Answer

Answer: (d) Stability

Business Environment MCQ Class 12 Question 2.
Which one of the following is a part of economic environment?
(a) Public debt
(b) Lifestyle of people
(c) Technological changes
(d) Level of education

Answer

Answer: (a) Public debt

Business Environment MCQ Question 3.
Proper understanding of business environment is not a prerequisite for
(a) tapping of useful resources.
(b) identification of opportunities and threats.
(c) formulation of strategies.
(d) better coordination of employee efforts.

Answer

Answer: (c) formulation of strategies.

MCQ On Business Environment Class 12 Question 4.
Globalisation means
(a) reduced role of public sector
(b) integration of economies
(c) lowering interest rates
(d) control of inflation

Answer

Answer: (b) integration of economies

MCQ Of Business Studies Class 12 Chapter 3 Question 5.
Which one of the following is the impact of Government policy changes on business and industry?
(a) Increase in agricultural productivity
(b) Increase in product prices
(c) Increase in competition
(d) Increase in urbanisation

Answer

Answer: (c) Increase in competition

Which one of the following is the impact of Government policy changes on business and industry?

MCQ Of Business Environment Class 12 Question 6.
___ nature of business environment suggests that environment keeps on changing.
(a) Dynamic
(b) Pervasive
(c) Continuous
(d) Multidimensional

Answer

Answer: (a) Dynamic

Ch 3 Bst Class 12 MCQ Question 7.
___ is the integration of world economy into a single market through removal of trade barriers between countries.
(a) Privatisation
(b) Liberalisation
(c) Globalisation
(d) Both(a) and (b)

Answer

Answer: (c) Globalisation

Class 12 Business Studies Chapter 3 MCQ Question 8.
___ feature of business environment states that various factors of business environment affect each other.
(a) Pervasive
(b) Continuous
(c) Dynamic
(d) Interrelatedness

Answer

Answer: (d) Interrelatedness

Question 9.
Legal rules and regulations relevant to business are included in ___ environment of business.
(a) Legal
(b) Political
(c) Economic
(d) Technological

Answer

Answer: (a) Legal

Question 10.
A business has to offer wider choice in purchasing enhanced quality of goods and services in order to maintain an edge over its competitors. The implementation of the new economic policy with liberalisation, privatisation and globalisation has posed various challenges for the corporate sector. One of the important challenges is explained in the above lines. Identify it.
(a) Increasing competition
(b) More demanding customers
(c) Necessity for change
(d) Market orientation

Answer

Answer: (a) Increasing competition

Question 11.
On 8th November 2016, with the announcement from Government of India, all the ₹500 and ₹1,000 banknotes of the Mahatma Gandhi series have ceased to be a legal tender. The givemment also announced the issuance of new ₹500 and ₹2,000 banknotes in exchange for the demonetised banknotes. Identify the concept being described in the above lines.
(a) Globalisation
(b) Liberalisation
(c) Demonetisation
(d) Privatisation

Answer

Answer: (c) Demonetisation

Question 12.
The Government of India launched “Make in India” initiative in September, 2014 to increase foreign direct investment (FDI) in 25 sectors. As of April, 2015, FDI inflow in India increased by 48% since the launch of “Make in India” initiative.
Identify the concept being described in the above lines, with regard to inflow of FDI.
(a) Demonetisation
(b) Privatisation
(c) Liberalisation
(d) Globalisation

Answer

Answer: (c) Liberalisation

Question 13.
According to a report by the India Staffing Federation (ISF), India has emerged as the
fifth largest market worldwide in flexi-staffing in 2018 and the country would have 6.1 million flexi-workforce by 2021. It showed that Haryana, Gujarat, Karnataka, Madhya Pradesh and Telangana are the states with high growth potential for flexi- staffing but Andhra Pradesh tops the list of states with favourable business environment. Identify the feature of business environment being discussed above,
(a) Relativity
(b) Dynamic nature
(c) Uncertainty
(d) Interrelatedness

Answer

Answer: (a) Relativity

Question 14.
India’s population is expected to grow under 0.5 per cent during 2031-41 due to decline in fertility rate and increase in life expectancy. These changes in India’s demography will also have implications such as the proportion of elementary school-going children will witness significant declines, lack of hospital beds and increase in retirement age. The related feature of business environment being described in the above lines is
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Relativity

Answer

Answer: (c) Interrelatedness

Question 15.
As a result of major government initiatives, more and more people are going ‘green’. In order to keep in line with the trend, ‘Clapaway’ a carpet cleaning company has advertised that they only use natural cleaners that come from renewable resources and that all their service vehicles are hybrid vehicles that use both gas and electricity. Identify one of the points related to the importance of business environment and its understanding by managers which is being highlighted in the above case.
(a) It helps in assisting in planning and policy formulation.
(b) It helps in coping with rapid changes.
(c) It helps in improving performance.
(d) It enables the firm to identify opportunities and getting the first mover advantage.

Answer

Answer: (c) It helps in improving performance.

Question 16.
Electric vehicles with zero tail pipe emission are emerging as a good alternative to ‘ problems like climate change, surging pollution leading to ill health, crude import bill and energy security. Identify the related dimensions of business environment.
(a) Economic dimension, Legal dimension and Social dimension
(b) Social dimension, Political dimension and Economic dimension
(c) Economic dimension, Technological dimension and Social dimension
(d) Social dimension, Political dimension and Legal dimension

Answer

Answer: (c) Economic dimension, Technological dimension and Social dimension

Question 17.
In order to boost and double India’s export of goods and services to over USD 1,000 billion by 2025, it is important to lower effective corporate tax rate, bring down cost of capital and simplify regulatory and tax framework. Identify the related dimension of business environment.
(a) Social dimension and Legal dimension
(b) Technological dimension and Political dimension
(c) Political dimension and Social dimension
(d) Economic dimension and Legal dimension

Answer

Answer: (a) Social dimension and Legal dimension
Explanation:
Economic dimension and Legal dimension

Question 18.
DigiLocker is the country’s first secured cloud-based platform for the storage, issuance and verification of documents with the Driving Licence & Vehicle Registration System of the Road Transport Ministry. The integration of a government department with DigiLocker since its launch last year is one of the biggest of its kind. It will spare 1 people the trouble of carrying licences & vehicle papers, which can be accessed on phones using the DigiLocker app. Identify the related dimension of business environment.
(a) Ecoriomic dimension
(b) Technological dimension
(c) Social dimension
(d) Political dimension

Answer

Answer: (b) Technological dimension
Explanation:
Technological dimension, as technology is facilitating online process

Question 19.
Any kind of external devices, like compact discs (CD’s) for computer, have become obsolete. Google, with its Google Drive service, Apple with its iCloud offering, enables the users store documents, photos, music and movies on web-based servers. Identify the feature of business environment being described in the above lines.
(a) Relativity
(b) Dynamic nature
(c) Uncertainty
(d) Interrelatedness

Answer

Answer: (c) Uncertainty
Explanation:
Uncertainty, as business environment is largely uncertain as it is very difficult to predict future events.

Question 20.
Since more number of people have become more beauty and health conscious, our economy has witnessed an unprecedented surge in the number of health and beauty spas and wellness clinics. Related feature of business environment being described in the above lines is —
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Relativity

Answer

Answer: (c) Interrelatedness
Explanation:
Interrelatedness, as the different elements or parts of business environment are closely interrelated

Since more number of people have become more beauty and health conscious, our economy has witnessed an unprecedented surge in the number of health and beauty spas and wellness clinics. Related feature of business environment being described in the above lines is —

True or False

State with reasons whether the following statements are True or False.

1. Investors and customers are the two components of specific forces of business environment.

Answer

Answer: True; investors and customers are the two components.

2. Dynamic nature of business environment suggests that it is pervasive.

Answer

Answer: False; dynamic nature of business environment suggests that it keeps on changing.

3. Privatisation involves freedom of doing business.

Answer

Answer: False; liberalisation involves freedom of doing business.

4. Political environment consists of political system and its working.

Answer

Answer: True; political environment includes political conditions, working and political system.

5. Business environment consists of factors which are certain by nature.

Answer

Answer: False; there is uncertainty in business environment.

We hope the given NCERT MCQ Questions for Class 12 Business Studies Chapter 3 Business Environment with Answers Pdf free download will help you. If you have any queries regarding Business Environment CBSE Class 12 Business Studies MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Business Studies MCQ:

MCQ Questions for Class 12 Accountancy Chapter 10 Accounting Ratios with Answers

Accounting Ratios Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 10 Accounting Ratios with Answers Pdf free download. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. We have provided Accounting Ratios Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well.

Class 12 Accountancy Chapter 10 Accounting Ratios MCQ With Answers

Accountancy Class 12 Chapter 10 MCQs On Accounting Ratios

Accounting Ratios Class 12 MCQ Question 1.
The formula for ascertaining Total Assets to Debt Ratio is:
MCQ Questions for Class 12 Accountancy Chapter 10 Accounting Ratios with Answers 1

Answer

Answer: (a)

Accounting Ratios MCQ Question 2.
Proprietory Ratio indicates the relationship between proprietor’s funds and….
(a) Reserve
(b) Share Capital
(c) Total Assets
(d) Debentures

Answer

Answer: (c) Total Assets

MCQ Of Accounting Ratios Class 12 Question 3.
Proprietory ratio is calculated by the following formula:
MCQ Questions for Class 12 Accountancy Chapter 10 Accounting Ratios with Answers 2

Answer

Answer: (c)

Accounting Ratios MCQs Class 12 Question 4.
Which one of the following ratios is most important in determining the long-term solvency of a company ?
(a) Profitability Ratio
(b) Debt-Equity Ratio
(c) Stock Turnover Ratio
(d) Current Ratio

Answer

Answer: (b) Debt-Equity Ratio

Which one of the following ratios is most important in determining the long-term solvency of a company ?

Accounting Ratios MCQs Question 5.
Total Assets ₹ 8,10,000
Total Liabilities ₹ 2,60,000
Current Liabilities ₹ 40,000
Debt-equity ratio is:
(a) 0.05 : 1
(b) 0.4 : 1
(c) 2.5 : 1
(d) 4 : 1

Answer

Answer: (c) 2.5 : 1

MCQ On Ratio Analysis Class 12 Question 6.
Equity share capital ₹ 15,00,000
Reserve and Surplus ₹ 7,50,000
Total Assets ₹ 45,00,000
Properletory Ratio ?
(a) 50%
(b) 33.3%
(c) 200%
(d) 60%

Answer

Answer: (a) 50%

Ratio Analysis MCQ Class 12 Question 7.
Total Assets ₹ 7,70,000
Total Liabilities ₹ 2,60,000
Current Liabilities ₹ 40,000
Total Assets to Debt Ratio is:
(a) 3.5 : 1
(b) 2.56 : 1
(c) 2.8 : 1
(d) 3 : 1

Answer

Answer: (a) 3.5 : 1

MCQ On Accounting Ratios Question 8.
Profitability Ratios are generally expressed in :
(a) Simple Ratio
(b) Percentage
(c) Times
(d) None of these

Answer

Answer: (b) Percentage

Ratio Analysis Class 12 MCQ Question 9.
The ratios are primarily measures of earning capacity of the business.
(a) Liquidity
(b) Activity
(c) Debt
(d) Profitability

Answer

Answer: (d) Profitability

Question 10.
The gross profit ratio is the ratio of gross profit to :
(a) Net Cash Sales
(b) Net Credit Sales
(c) Closing Stock
(d) Net Total Sales

Answer

Answer: (d) Net Total Sales

Question 11.
Operating Ratio is:
(a) Profitability Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) None of these

Answer

Answer: (a) Profitability Ratio

Question 12.
Which of the following is an operating’ income ?
(a) Sale of Merchandise
(b) Interest Income
(c) Dividend Income
(d) Profit on the sale of old car

Answer

Answer: (a) Sale of Merchandise

Question 13.
Which of the following non-operating expense?
(a) Rent
(b) Selling Expenses
(c) Wages
(d) Loss on Sale of Machinery

Answer

Answer: (d) Loss on Sale of Machinery

Question 14.
The following groups of ratios primarily measure risk
(a) Liquidity, activity and profitability
(b) Liquidity, activity and common stock
(c) Liquidity, activity and debt
(d) Activity, debt and profitability

Answer

Answer: (d) Activity, debt and profitability

Question 15.
To know the return on investment, by capital employed we mean:
(a) Net Fixed Assets
(b) Current Asset-Current Liabilities
(c) Gross Block
(d) Fixed Assets + Current Assets-Current Liabilities

Answer

Answer: (d) Fixed Assets + Current Assets-Current Liabilities

Question 16.
The term fixed assets include :
(a) Cash
(b) Machinery
(c) Debtors
(d) Prepaid Expenses

Answer

Answer: (b) Machinery

Question 17.
Ratio based on figures of profit & loss as well a the Balance sheet are:
(a) Profitability Ratios
(b) Operation Ratio
(c) Liquidity Ratio
(d) Composite Ratio

Answer

Answer: (d) Composite Ratio

Question 18.
Debtors Turnover Ratio :
MCQ Questions for Class 12 Accountancy Chapter 10 Accounting Ratios with Answers 3

Answer

Answer: (c)

Question 19.
When opening stock is ₹ 50,000 closing stock ₹ 60,000 and cost of goods sold is ₹ 2,20,000, then stock turn over ratio is:
(a) 2 times
(b) 3 times
(c) 4 times
(d) 5 times

Answer

Answer: (a) 2 times

Question 20.
What does Creditors Turnover Ratio take into account:
(a) Total credit purchases
(b) Total credit sales
(c) Total cash sales
(d) Total cash purchases

Answer

Answer: (a) Total credit purchases

Question 21.
Cost of goods sold :
(a) Sales – Net profit
(b) Sales – Gross profit
(c) Purchases – Opening Stock
(d) None of the above

Answer

Answer: (b) Sales – Gross profit

Question 22.
The ideal liquid ratio is :
(a) 2 : 1
(b) 1 : 1
(c) 5 : 1
(d) 4 : 1

Answer

Answer: (b) 1 : 1

Question 23.
The ideal current ratio is :
(a) 2 : 1
(b) 1 : 2
(c) 3 : 2
(d) 3 : 4

Answer

Answer: (a) 2 : 1

Question 24.
Operating Ratio is:
(a) Profitability Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) None of these

Answer

Answer: (a) Profitability Ratio

Question 25.
Profitability Ratio is generally shown in :
(a) Simple Ratio
(b) Percentage
(c) Times
(d) None of these

Answer

Answer: (b) Percentage

Question 26.
If sales is 7 4,20,000 sales returns is 7 20,000 and cost of goods sold 7 3,20,000 gross profit ratio will be :
(a) 20%
(b) 25%
(c) 15%
(d) 10%

Answer

Answer: (a) 20%

Question 27.
Stock turnover ratio comes under :
(a) Liquidity Ratio
(b) Profitability Ratio
(c) Activity Ratio
(d) None of these

Answer

Answer: (c) Activity Ratio

Question 28.
The satisfactory ratio between internal and external equity is. :
(a) 1 : 2
(b) 2 : 1
(c) 3 : 1
(d) 4 : 1

Answer

Answer: (b) 2 : 1

Question 29.
Current Ratio includes:
(a) Stock
(b) Debtors
(c) Cash
(d) All of these

Answer

Answer: (c) Cash

Question 30.
Current Ratio =
(a) Current Assets/Current Liabilities
(b) Liquid Assets/Current Liabilities
(c) Liquid Assets/Current Assets
(d) Fixed Assets/Current Assets

Answer

Answer: (a) Current Assets/Current Liabilities

Question 31.
Liquid Assets include :
(a) Bills Receivable
(b) Debtors
(c) Cash Balance
(d) All of these

Answer

Answer: (d) All of these

Liquid Assets include :

Question 32.
Which of the following assets is not taken into consideration in calculating acid-test ratio ?
(a) Cash
(b) Bills Receivable
(c) Stock
(d) None of these

Answer

Answer: (c) Stock

Question 33.
When Cash is 7 10,000 Stock is 7 25,000, B/R is 7 5,000 Creditors is 7 22,000 and Bank Overdraft is 7 8,000 then current ratio is :
(a) 2 : 1
(b) 4 : 3
(c) 3 : 4
(d) 1 : 2

Answer

Answer: (b) 4 : 3

Question 34.
The two basic measures of liquidity are :
(a) Inventory Turnover and Current Ratio
(b) Current Ratio and Liquid Ratio
(c) Current Ratio and Average Collection Period
(d) Current Ratio and Debtors Turnover Ratio

Answer

Answer: (b) Current Ratio and Liquid Ratio

Question 35.
Liquidity Ratio:
MCQ Questions for Class 12 Accountancy Chapter 10 Accounting Ratios with Answers 4

Answer

Answer: (c)

Question 36.
The term ‘Current Liabilities’ does not include: .
(a) Sundry Creditors
(b) Debentures
(c) Bills Payable
(d) Outstanding Expenses

Answer

Answer: (b) Debentures

Question 37.
The term‘Current Assets’include
(a) Long-term Investment
(b) Short-term Investment
(c) Furniture
(d) Preliminary Expenses

Answer

Answer: (b) Short-term Investment

Question 38.
Liquid Ratio is also known as:
(a) Current Ratio
(b) Quick Ratio
(c) Capital Ratio
(d) None of these

Answer

Answer: (b) Quick Ratio

Question 39.
To test the liquidity of a concern which of the following ratios is useful ?
(a) Capital Turnover Ratio
(b) Acid Test Ratio
(c) Stock Turnover Ratio
(d) Net Profit Ratio

Answer

Answer: (b) Acid Test Ratio

Question 40.
Which of the following transactions will improve the current ratio ?
(a) Purchase of good for cash
(b) Cash received from customers
(c) Payment of creditors
(d) Credit purchase of goods

Answer

Answer: (c) Payment of creditors

Question 41.
Debt-equity ratio is :
(a) Liquidity Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) Operating Ratio

Answer

Answer: (c) Solvency Ratio

Question 42.
The formula for finding out Debt-Equity Ratio is:
(a) Long-term Debts/Shareholders’ Funds
(b) Debentures/Equity Capital
(c) Net Profit/Total Capital
(d) None of these

Answer

Answer: (a) Long-term Debts/Shareholders’ Funds

We hope the given NCERT MCQ Questions for Class 12 Accountancy Chapter 10 Accounting Ratios with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Accountancy Accounting Ratios MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Accountancy MCQ:

MCQ Questions for Class 12 Accountancy Chapter 8 Financial Statements of a Company with Answers

Financial Statements of a Company Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 8 Financial Statements of a Company with Answers Pdf free download. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. We have provided Financial Statements of a Company Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well.

Class 12 Accountancy Chapter 8 Financial Statements of a Company MCQ With Answers

Accountancy Class 12 Chapter 8 MCQs On Financial Statements of a Company

Financial Statements Of A Company Class 12 MCQ Question 1.
Which of the following is the element of financial statements?
(a) Balance Sheet
(b) Profit & Loss A/c
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (c) Both (a) and (b)

Financial Statements Of A Company MCQ Question 2.
Which of the following is not required to be prepared under the Companies Act:
(a) Statement of Profit & Loss
(b) Balance Sheet
(c) Anditor’s Report
(d) Fund Flow Statement

Answer

Answer: (c) Anditor’s Report

MCQ Of Financial Statements Of A Company Class 12 Question 3.
Equity ₹ 90,000 Liabilities ₹ 60,000 Profit of the year ₹ 20,000. Then total assets will be :
(a) ₹ 1.70,000
(b) ₹ 1,50,000
(c) ₹1,10,000
(d) ₹ 80,000

Answer

Answer: (a) ₹ 1.70,000

MCQ On Financial Statements Of A Company Class 12 Question 4.
The reserve which is created for a particular (specific) purpose and which is a charge against revenue is called:
(a) Capital Reserve
(b) General Reserve
(c) Secret Reserve
(d) Specific Reserve

Answer

Answer: (d) Specific Reserve

Financial Statements MCQ Question 5.
An Annual Report is issued by a company to its:
(a) Directors
(b) Authors
(c) Shareholders
(d) Management

Answer

Answer: (c) Shareholders

Financial Statements MCQ Class 12 Question 6.
The profit and loss disclosed by the accounts of a company is:
(a) Transferred to share capital account
(b) Shown under the head of ‘Current liabilities’ and provisions
(c) Shown under the head ‘Reserves and Surplus
(d) None of these

Answer

Answer: (c) Shown under the head ‘Reserves and Surplus

Financial Statements Disclose MCQ Question 7.
The assets of a business can be classified as :
(a) Fixed and Non-fixed Assets
(b) Tangible and Intangible Assets
(c) Non-Current and Current Asset
(d) None of these

Answer

Answer: (c) Non-Current and Current Asset

Financial Statements Of Company MCQ Question 8.
The term financial statements includes :
(a) Statement of Profit & Loss
(b) Balance Sheet
(c) Statement of Profit & Loss and Balance Sheet
(d) None of these

Answer

Answer: (c) Statement of Profit & Loss and Balance Sheet

MCQs Of Financial Statements Of A Company Question 9.
Balance Sheet is a :
(a) Account
(b) Statement
(c) Both (a) and (b)
(d) All the above

Answer

Answer: (b) Statement

Financial Statements Class 12 MCQ Question 10.
Financial statements are the product of accounting process.
(a) First
(b) Second
(c) End
(d) None of these

Answer

Answer: (c) End

Financial statements are the product of accounting process.

Question 11.
Financial statements disclose :
(a) Monetary information
(b) Qualitative information
(c) Non-monetary information
(d) All the above

Answer

Answer: (a) Monetary information

Question 12.
Statement of Profit & Loss is also called………:
(a) Operating Profit
(b) Balance Sheet
(c) Income Statement
(d) Trading Account

Answer

Answer: (c) Income Statement

Question 13.
Preliminary expenses are shown in the Balance Sheet under the head:
(a) Non-current assets
(b) Current assets
(c) Non-current liabilities
(d) Deducted from securities premium reserve

Answer

Answer: (d) Deducted from securities premium reserve

Question 14.
Debit Balance of Profit & Loss Statement will be shown on:
(a) Assets Side of Balance Sheet
(b) Liabilities Side of Balance Sheet
(c) Under the head Reserve & Surplus
(d) Under the head Reserves and Surplus as a negative item

Answer

Answer: (d) Under the head Reserves and Surplus as a negative item

Question 15.
Patents and copyrights fall under the category of:
(a) Current Assets
(b) Liquid Assets
(c) Intangible Assets
(d) None of these

Answer

Answer: (c) Intangible Assets

Question 16.
Goodwill falls under which category of assets:
(a) Current Assets
(b) Tangible Assets
(c) Intangible Assets
(d) None of the above

Answer

Answer: (c) Intangible Assets

Question 17.
Contingent Liabilities are exhibited under the heading:
(a) Fixed Liabilities
(b) Current Liabilities
(c) As a footnote
(d) None of these

Answer

Answer: (c) As a footnote

Question 18.
Provision for Provident Funds is shown in the Balance Sheet of a company under the head :
(a) Reserves and Surplus
(b) Non-current Liabilities
(c) Provision
(d) Contingent Liabilities

Answer

Answer: (b) Non-current Liabilities

Question 19.
Preliminary Expenses are shown in the Balance Sheet under which head ?
(a) Fixed Assets
(b) Reserves and Surplus
(c) Loans & Advances
(d) None of these

Answer

Answer: (d) None of these

Question 20.
Financial Statements are :
(a) Anticipated facts
(b) Recorded facts
(c) Estimated facts
(d) None of these

Answer

Answer: (b) Recorded facts

Question 21.
The term current assets includes :
(a) Stock
(b) Debtors
(c) Cash
(d) All of these

Answer

Answer: (d) All of these

Question 22.
Which of the following is not a part of financial statement of a company ?
(a) Profit & Loss A/c
(b) Balance Sheet
(c) Ledger Account
(d) Cash Flow Statement

Answer

Answer: (c) Ledger Account

Question 23.
Under which heading of Balance Sheet is general reserve shown:
(a) Miscellaneous Expenditure
(b) Share Capital
(c) Reserves & Surplus
(d) None of these

Answer

Answer: (c) Reserves & Surplus

Question 24.
Current Assets on the Assets side of Balance Sheet of a Company includes:
(a) Sundry Debtors
(b) Cash in hand
(c) Stock
(d) All of these

Answer

Answer: (d) All of these

Question 25.
As per provisions of Companies Act, 2013 under which Section, the final accounts of a company is prepard :
(a) 128
(b) 210
(c) 129
(d) 212

Answer

Answer: (c) 129

Question 26.
According to which part of Schedule III of the Indian Companies Act, 2013, Indian companies have to prepare Balance Sheet:
(a) Part 1
(b) Part 2
(c) Part 3
(d) Part 4

Answer

Answer: (a) Part 1

Question 27.
Balance sheet of companies is now prepared in :
(a) Horizontal Form
(b) Vertical Form
(c) Either (a) or (b) Form
(d) None of these

Answer

Answer: (b) Vertical Form

Question 28.
Goodwill of a company is shown on the assets side of the Balance Sheet under the head.
(a) Current Assets
(b) Non-current Assets
(c) Miscellaneous Expenditure
(d) None of these

Answer

Answer: (b) Non-current Assets

Question 29.
The form of Balance Sheet as per Companies Act, 2013 is:
(a) Horizontal
(b) Horizontal or Vertical
(c) Vertical
(d) None of these

Answer

Answer: (c) Vertical

Question 30.
Which of the following assets is not shown undeer the head ‘Fixed Asset’ in the Balance Sheet ?
(a) Goodwill
(b) Bills Receivable
(c) Buildings
(d) Vehicle

Answer

Answer: (b) Bills Receivable

Question 31.
Securities Premium Account is shown on the liabilities side in the Balance Sheet Under heading
(a) Reserves and Surplus
(b) Current Liabilities and Provisions
(c) Share Capital
(d) Contingent Liabilities

Answer

Answer: (a) Reserves and Surplus

Question 32.
Debentures are shown in the Balance Sheet under the head of:
(a) Short-term Loan
(b) Secured Loan
(c) Current Liability
(d) Share Capital

Answer

Answer: (b) Secured Loan

Question 33.
Divident is usually paid :
(a) On Authorised Capital
(b) On Ussued Capital
(c) On Paid-up Capital
(d) On Called-up Capital

Answer

Answer: (c) On Paid-up Capital

Question 34.
Amount set aside to meet losses due to bad debts is called:
(a) Reserve
(b) Provision
(c) Liability
(d) None of these

Answer

Answer: (b) Provision

Amount set aside to meet losses due to bad debts is called:

Question 35.
Which Section of the Companies Act, 2013 requires that the Balance Sheet to be prepared in prescribed form ?
(a) Section 128
(b) Section 130
(c) Section 129
(d) Section 212

Answer

Answer: (c) Section 129

Question 36.
The prescribe from the Balance Sheet has given in the Schedule:
(a) VI Part I
(b) VI Part II
(c) III Part I
(d) VII Part IV

Answer

Answer: (c) III Part I

Question 37.
Share capital is shown in Balance Sheet under. the head ?
(a) Authorised Capital
(b) Issued Capital
(c) Paid-up Capital
(d) Shareholders’ Funds

Answer

Answer: (d) Shareholders’ Funds

We hope the given NCERT MCQ Questions for Class 12 Accountancy Chapter 8 Financial Statements of a Company with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Accountancy Financial Statements of a Company MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Accountancy MCQ:

MCQ Questions for Class 12 Accountancy Chapter 5 Dissolution of a Partnership Firm with Answers

Dissolution of a Partnership Firm Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 5 Dissolution of a Partnership Firm with Answers Pdf free download. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. We have provided Dissolution of a Partnership Firm Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well.

Class 12 Accountancy Chapter 5 Dissolution of a Partnership Firm MCQ With Answers

Accountancy Class 12 Chapter 5 MCQs On Dissolution of a Partnership Firm

Capital Account Is Related To MCQ Class 12 Question 1.
In the event of dissolution of partnership firm, the provision for doubtful debts is transferred to :
(a) Realisation Account
(b) Partners’ Capital Accounts
(c) Sundry Debtors Account
(d) None of the above

Answer

Answer: (a) Realisation Account

MCQ On Dissolution Of Partnership Firm Class 12 Question 2.
On dissolution, if a partner undertakes to make payment of a liability of the firm, the account to be debited is:
(a) profit & Loss Account
(b) Realisation Account
(c) Partner’s Capital Account
(d) Cash Account

Answer

Answer: (b) Realisation Account

Dissolution Of Partnership Firm MCQ Class 12 Question 3.
At the dime of firm’s dissolution, Balance of General Reserve shown in the Balance Sheet is credited to :
(a) Realisation Account
(b) Creditors’ Account
(c) Partners’ Capital Accounts
(d) Profit & Loss Account

Answer

Answer: (c) Partners’ Capital Accounts

MCQs On Dissolution Of Partnership Firm Class 12 Question 4.
On dissolution, goodwill account is transferred to :
(a) In the Capital Accounts of Partners
(b) In the Credit of Cash Accounts
(c) In the Debit of Realisation Account
(d) In the Credit of Realisation Account

Answer

Answer: (c) In the Debit of Realisation Account

On The Dissolution Of The Partnership MCQ Class 12 Question 5.
At the time of dissolution of partnership firm, fictitions assets are transferred to :
(a) Capital Accounts of Partners
(b) Realisation Account
(c) Cash Account
(d) Partners’ Loan Account

Answer

Answer: (a) Capital Accounts of Partners

Question 6.
On dissolution of a firm, a partner paid 1,500 Rs. for firm’s realisation expenses. Which account will be debited ?
(a) Cash Account
(b) Realisation Account
(c) Capital Account of the Partner
(d) Profit & Loss A/c

Answer

Answer: (b) Realisation Account

Question 7.
On taking responsibility of payment of realisation expenses by a partner, the account credited will be :
(a) Realisastion Account
(b) Cash Account
(c) Capital Account of the Partner
(d) None of the above

Answer

Answer: (c) Capital Account of the Partner

Question 8.
When realisation expenses are paid by the firm on behalf of a partner, such expenses are debited to :
(a) Realisation Account
(b) Partners’ Capital Account
(c) Partner’s Loan Account
(d) None of these

Answer

Answer: (b) Partners’ Capital Account

When realisation expenses are paid by the firm on behalf of a partner, such expenses are debited to :

Question 9.
Which of the following is transferred to Realisation Account ?
(a) Balance of Profit Account
(b) Balance of Profit & Loss Account
(c) Amount realised on sale of assets
(d) Reserves

Answer

Answer: (c) Amount realised on sale of assets

Question 10.
On disolution of firm, loss calculated in realisation account is debited/credited to which account ?
(a) Cash Account
(b) Partners’ Capital Accounts
(c) Realisation Account
(d) None of these

Answer

Answer: (b) Partners’ Capital Accounts

Question 11.
Which of the following is not transferred to Realisatsion Account ?
(a) Balance of Cash Account
(b) Balance of Reserves
(c) Balance of Profit & Loss Account
(d) All of the above

Answer

Answer: (d) All of the above

Question 12.
On taking responsibility of payment of a liability of ₹ 20,000 by a partner, the account credited will be :
(a) Realisation Account
(b) Cash Account
(c) Capital Account of the Partner
(d) Liability Account

Answer

Answer: (c) Capital Account of the Partner

Question 13.
Cash balance shown in the Balance Sheet is shown on dissolution of firm in :
(a) Realisation Account
(b) Cash Account
(c) Capital Account
(d) None of the Account

Answer

Answer: (b) Cash Account

Question 14.
There was an Unrecorded asset of ₹ 12,000 which was taken over by a partner at ₹ 10,500. Partner’s Capital Account will be debited by…….
(a) ₹ 12,000
(b) ₹ 10,500
(c) ₹ 1,500
(d) ₹ 32,500

Answer

Answer: (b) ₹ 10,500

Question 15.
On dissolution of a firm, Bank overdraft is transferred to:
(a) Cash Account
(b) Bank Account
(c) Realisation Account
(d) Partners’ Capital Account

Answer

Answer: (c) Realisation Account

Question 16.
On dissolution of a firm, Partner’s Loan Account is transferred to:
(a) Realisation Account
(b) Partner’s Capital Account
(c) Partner’s Current Account
(d) None of these

Answer

Answer: (d) None of these

Question 17.
The accumulated profits and reserves are transferred to:
(a) Realisation Accounts
(b) Partners’ Capital Accounts
(c) Bank Account
(d) None of these

Answer

Answer: (b) Partners’ Capital Accounts

Question 18.
On dissolution, Goodwill Account is transferred to :
(a) In the Capital Accounts of Partners
(b) On the Credit side of Cash Account
(c) On the Debit side of Realisation Account
(d) On the Credit side of Realisation Account

Answer

Answer: (c) On the Debit side of Realisation Account

Question 19.
On dissolution, when a partner takes over an asset……….is debited :
(a) Realisation Account
(b) Partner’s Capital Account
(c) Cash Account
(d) Asset Account

Answer

Answer: (b) Partner’s Capital Account

Question 20.
After transferring liabilities like creditors and bills payable in the Realisation Account in the absence of any informations regarding their payment, such liabilities are treated as :
(a) Never paid
(b) Fully paid
(c) Partly paid
(d) None of these

Answer

Answer: (b) Fully paid

Question 21.
Unrecorded liabilities when paid are shown in :
(a) Debit side of Realisation Account
(b) Debit side of Bank Account
(c) Credit side of Realisation Account
(d) Credit side of Bank Account

Answer

Answer: (a) Debit side of Realisation Account

Question 22.
Payment of credit balance of Partners’ Capital Accounts at the time of dissolution of a firm is made to:
(a) Partners
(b) Firm
(c) Wife
(d) None of these

Answer

Answer: (a) Partners

Question 23.
On dissolution of a firm Partner’s Loan A/c is transferred to:
(a) Realisation A/c
(b) Partners’ Capital A/cs
(c) Suspense A/c
(d) None of these

Answer

Answer: (d) None of these

Question 24.
At the time of dissolution of firm book value of assets is recorded in which side of the Realisation Account ?
(a) Debit Side
(b) Credit Side
(c) All of the above
(d) Liabilities Side

Answer

Answer: (a) Debit Side

Question 25.
Realisation expenses are recorded in which side of Realisation A/c:
(a) Liabilities
(b) Assets
(c) Credit
(d) Debit

Answer

Answer: (c) Credit

Question 26.
Realisation Account is a :
(a) Personal A/c
(b) Nominal A/c
(c) Read A/c
(d) None of these

Answer

Answer: (b) Nominal A/c

Question 27.
On dissolution of the firm, Partners’ Capital Accounts are closed through :
(a) Realisation Account
(b) Drawings Account .
(c) Bank Account
(d) Loan Account

Answer

Answer: (c) Bank Account

Question 28.
Unrecorded assets when taken over by a partner are shown in:
(a) Debit side of Realisation A/c
(b) Debit side of Bank A/c
(c) Credit side of Realisation A/c
(d) Credit side of Bank A/c

Answer

Answer: (c) Credit side of Realisation A/c

Question 29.
Expenses on dissolution of firm is called :
(a) Realisation Expenses
(b) Legal Expenses
(c) Loss Expenses
(d) None of these

Answer

Answer: (a) Realisation Expenses

Question 30.
Sundry creditors amounted to ₹ 8,000. They were paid at a discount of 5 %. Realisation A/c will be debited by :
(a) ₹ 8,000
(b) ₹ 7,600
(c) ₹ 400
(d) ₹ 8,400

Answer

Answer: (b) ₹ 7,600

Question 31.
Amount realised from sale of assets is recorded in :
(a) Debit side of Realisation Account
(b) Credit side of Realisation Account
(c) Liabilities side of Balance Sheet
(d) Assets side of Balance Sheet

Answer

Answer: (b) Credit side of Realisation Account

Question 32.
A firm can be voluntarily dissolved by the partners :
(a) On Majority basis
(b) On 3/4 Member’s decision
(c) On 1/2 Member’s decision
(d) None of these

Answer

Answer: (d) None of these

Question 33.
On dissolution of a firm, amount realised from an unrecorded asset is credited to:
(a) partners’ Capital Accounts
(b) Cash Account
(c) Realisation Account
(d) Revaluation Account

Answer

Answer: (c) Realisation Account

Question 34.
Profit/loss on Realisation Account is distributed among partners:
(a) In Profit-sharing Ratio
(b) In Capital Ratio
(c) Equally
(d) None of these

Answer

Answer: (a) In Profit-sharing Ratio

Question 35.
Which of the following is correct profit or loss in case the amount received from the sale of assets is ₹ 50,000, total assets is ₹ 60,000, total liabilities ₹ 20,000 and realisation expenses ₹ 2,000 ?
(a) ₹ 12,000 Loss
(b) ₹ 32,000 Profit
(c) ₹ 30,000 Loss
(d) ₹ 12,000 Profit

Answer

Answer: (a) ₹ 12,000 Loss

Question 36.
What will be the total assets (except cash) of the firm from the following: if Creditor ₹ 15,000, Partner’s loan ₹ 10,000, Partners’ capital ₹ 40,000. Cash in hand ₹ 5,000
(a) ₹ 60,000
(b) ₹ 65,000
(c) ₹ 70,000
(d) ₹ 55,000

Answer

Answer: (b) ₹ 65,000

Question 37.
If the total assets are ₹ 3,25,000 and the total outside liabilities ₹ 45,000 then the amount of all partner’s capital will be:
(a) ₹ 3,70,000
(b) ₹ 2,80,000
(c) ₹ 3,00,000
(d) None of these

Answer

Answer: (b) ₹ 2,80,000

Question 38.
Insolvency of a partner will come under what type of dissolution of a firm ?
(a) Dissolutiuon by Court
(b) Compulsory Dissolution
(c) On happening of certain contingencies
(d) None of these

Answer

Answer: (c) On happening of certain contingencies

Question 39.
On firm’s dissolution, which one of the following account should be prepared at the last ?
(a) Realisation Account
(b) Partner’s Capital Accounts
(c) Cash/Bank Account
(d) Partner’s Loan Account

Answer

Answer: (c) Cash/Bank Account

On firm’s dissolution, which one of the following account should be prepared at the last ?

Question 40.
On dissolution of a firm, realisation account is debited with:
(a) All assets to be realised
(b) All outside liabilities of the firm
(c) Cash received on sale of assets
(d) Any assets taken over by one of the partners

Answer

Answer: (a) All assets to be realised

Question 41.
On dissolution of a firm, out of the proceeds received from the sale of assets will be paid first of all:
(a) Partner’s Capitals
(b) Partner’s Loan to Firm
(c) Partner’s additional capital
(d) Outside Creditors

Answer

Answer: (d) Outside Creditors

We hope the given NCERT MCQ Questions for Class 12 Accountancy Chapter 5 Dissolution of a Partnership Firm with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Accountancy Dissolution of a Partnership Firm MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Accountancy MCQ:

MCQ Questions for Class 12 Business Studies Chapter 2 Principles of Management with Answers

Principles of Management Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Business Studies Chapter 2 Principles of Management with Answers Pdf free download. MCQ Questions for Class 12 Business Studies with Answers were prepared based on the latest exam pattern. We have provided Nature and Significance of Management Class 12 Business Studies MCQs Questions with Answers to help students understand the concept very well.

Class 12 Business Studies Chapter 2 Principles of Management MCQ With Answers

Business Studies Class 12 Chapter 2 MCQs On Principles of Management

Principles Of Management Provide Question 1.
Principles of management are not
(a) behavioural.
(b) absolute
(c) universal.
(d) flexible

Answer

Answer: (b) absolute

Principles Of Management Class 12 MCQ Question 2.
Principles of management provide
(a) readymade solutions to problems.
(b) general guidelines.
(c) methods and procedures.
(d) rules and regulations.

Answer

Answer: (b) general guidelines.

MCQ On Principles Of Management Class 12 Question 3.
Management principles differ from pure science principles because management principles are
(a) vague.
(b) situation-bound.
(c) rigid.
(d) easy to learn.

Answer

Answer: (b) situation-bound.

Management principles differ from pure science principles because management principles are

Principles Of Management MCQ Question 4.
Principles of management are significant because these result in
(a) taking initiative.
(b) adapting to new technology.
(c) employee satisfaction.
(d) optimum utilisation of resources.

Answer

Answer: (d) optimum utilisation of resources.

Principles Of Management Provide MCQ Question 5.
Which one of the following is not a principle of scientific management?
(a) Functional foremanship
(b) Development of personnel
(c) Harmony, not discord
(d) Maximum, not restricted output

Answer

Answer: (a) Functional foremanship

Principle Of Management Provide Question 6.
Management should find ‘one best way’ to perform a task. Which technique of scientific management is defined in this sentence?
(a) Time Study
(b) Method Study
(c) Fatigue Study
(d) Motion Study

Answer

Answer: (b) Method Study

Principles Of Management Are Not MCQ Question 7.
Unity of command is related to
(a) superiors and subordinates.
(b) management and workers.
(c) planned actions.
(d) cooperation among employees

Answer

Answer: (a) superiors and subordinates.

Question 8.
Gang plank is related to
(a) communication.
(b) motivation
(c) supervision of workers.
(d) incentives to workers

Answer

Answer: (a) communication.

Question 9.
Management principles are flexible whereas ___ principles are rigid.
(a) Pure Science
(b) Employment
(c) Scientific Management
(d) Art

Answer

Answer: (a) Pure Science

Question 10.
___ denotes concentration of authority at the top level.
(a) Decentralisation
(b) Centralisation
(c) Coordination
(d) Delegation

Answer

Answer: (b) Centralisation

Question 11.
___ is the technique in which each worker is supervised by eight supervisors.
(a) Functional foremanship
(b) Unity of action
(c) Centralisation
(d) Simplification of work

Answer

Answer: (a) Functional foremanship

Question 12.
___ principle of management puts emphasis on judicious application of penalties by the management.
(a) Esprit de corps
(b) Order
(c) Division of work
(d) Discipline

Answer

Answer: (d) Discipline

Question 13.
___ principle of management states that there should be a place for everything and everything should be in its place.
(a) Equity
(b) Discipline
(c) Order
(d) Esprit de corps

Answer

Answer: (c) Order

Question 14.
____ means one plan, one boss.
(a) Unity of direction
(b) Unity of command
(c) Centralisation
(d) Gang plank

Answer

Answer: (a) Unity of direction

Question 15.
__ involves harmony and team spirit among employees.
(a) Discipline
(b) Esprit de corps
(c) Order
(d) Standardisation

Answer

Answer: (b) Esprit de corps

Question 16.
Which principle of general management advocates that, “Employee turnover should be minimised to maintain organisational efficiency.”?
(a) Stability of personnel
(b) Remuneration of employees
(c) Equity
(d) Esprit De Corps

Answer

Answer: (a) Stability of personnel
Explanation:
According to Fayol, due care should be taken while carrying out the recruitment and selection process and the new recruits should be placed at a particular position for a sufficient tenure.

Question 17.
According to Henri Fayol, if this principle of general management is violated, “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened.” Identify the principle.
(a) Authority and responsibility
(b) Discipline
(c) Unity of command
(d) Equity

Answer

Answer: (b) Discipline
Explanation:
According to Fayol, there should be one and only one boss for every individual employee and dual subordination should be avoided.

Question 18.
According to this principle of general management, “an organisation should safeguard against abuse of managerial power, but at the same time a manager should have the necessary authority to carry out his responsibility.” Name the principle of management being described in the given statement.
(a) Discipline
(b) Authority and responsibility
(c) Unity of command
(d) Unity of direction

Answer

Answer: (b) Authority and responsibility
Explanation:
Through the principle of authority and responsibility, Taylor advocated that there should always be a balance between the authority granted and the responsibility entrusted to an employee

Question 19.
The technique of differential piece rate system was developed by Taylor in order to
(a) Discriminate between efficient and inefficient workers
(b) Reward the efficient worker
(c) Motivate the inefficient workers to perform better
(d) All of the above

Answer

Answer: (d) All of the above
Explanation:
Through the technique of differential piece rate wage system, Taylor advocated . that efficient workers should be paid at a higher rate as compared to inefficient workers.

Question 20.
Which of the following is an objective of time study?
(a) To determine the number of workers to be employed
(b) To formulate suitable incentive schemes
(c) To calculate the labour costs
(d) All of the above

Answer

Answer: (d) All of the above

Which of the following is an objective of time study?

True or False

State with reasons whether the following statements are True or False.

1. “Unity of command means one employee getting orders and instructions from one supervisor”.

Answer

Answer: True; in unity of command, one employee gets orders/instructions from only one supervisor.

2. Time study involves analysing movements involved in performing an activity.

Answer

Answer: False; motion study involves analysing these movements.

3. Scalar chain involves direct communication between two employees at horizontal level.

Answer

Answer: False; Gang plank involves such direct communication.

4. Discipline principle of management leads to development of team spirit.

Answer

Answer: False; Esprit de corps leads to development of team spirit.

We hope the given NCERT MCQ Questions for Class 12 Business Studies Chapter 2 Principles of Management with Answers Pdf free download will help you. If you have any queries regarding Principles of Management CBSE Class 12 Business Studies MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Business Studies MCQ:

MCQ Questions for Class 12 Business Studies Chapter 5 Organising with Answers

Organising Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Business Studies Chapter 5 Organising with Answers Pdf free download. MCQ Questions for Class 12 Business Studies with Answers were prepared based on the latest exam pattern. We have provided Organising Class 12 Business Studies MCQs Questions with Answers to help students understand the concept very well.

Class 12 Business Studies Chapter 5 Organising MCQ With Answers

Business Studies Class 12 Chapter 5 MCQs On Organising

Organising Class 12 MCQ Question 1.
Organising process includes one of the following:
(a) Grouping of activities
(b) Prescribing disciplinary action
(c) Determining objectives
(d) Prescribing work schedule

Answer

Answer: (a) Grouping of activities

Organizing Includes MCQ Question 2.
One of the following is not an importance of organising:
(a) Role clarity
(b) Performance appraisal
(c) Adaptation to change
(d) Growth and expansion

Answer

Answer: (b) Performance appraisal

Organising MCQ Question 3.
Organisation structure establishes relationships between
(a) organisation and environment.
(b) people, work and resources.
(c) organisation and society.
(d) suppliers and customers.

Answer

Answer: (b) people, work and resources.

Organising MCQ Class 12 Question 4.
One of the following is an advantage of functional structure:
(a) Responsibility for end results
(b) Flexibility
(c) Personalised attention
(d) Easier employee learning

Answer

Answer: (d) Easier employee learning

One of the following is an advantage of functional structure:

MCQ Of Organising Class 12 Question 5.
Divisional structure leads to conflict in
(a) resource allocation.
(b) marketing management.
(c) motivation.
(d) planning process.

Answer

Answer: (a) resource allocation.

Question 6.
In which respect does formal organisation differ from informal organisation?
(a) Production process
(b) Structuring
(c) Financial procedure
(d) Purchasing

Answer

Answer: (b) Structuring

Question 7.
Which one of the following does not follow scalar chain?
(a) Informal organisation
(b) Functional structure
(c) Formal organisation
(d) Divisional structure

Answer

Answer: (a) Informal organisation

Question 8.
Degree of decentralisation indicates
(a) degree of authority delegation.
(b) degree of responsibility.
(c) degree of power delegation.
(d) degree of accountability.

Answer

Answer: (a) degree of authority delegation.

Question 9.
___ involves giving authority and responsibility to subordinates.
(a) Division of work
(b) Decentralisation
(c) Delegation
(d) Centralisation

Answer

Answer: (c) Delegation

Question 10.
___ is the process of grouting similar activities together and creating departments.
(a) Division of work
(b) Departmentalisation
(c) Delegation
(d) Centralisation

Answer

Answer: (b) Departmentalisation

Question 11.
___ is the organisational structure in which activities are grouped on the basis of products.
(a) Divisional structure
(b) Functional structure
(c) Formal
(d) Informal

Answer

Answer: (a) Divisional structure

Question 12.
__ is the organisational structure in which no department is responsible for end results.
(a) Divisional structure
(b) Functional structure
(c) Formal
(d) Informal

Answer

Answer: (b) Functional structure

Question 13.
___ is the duty for job performance.
(a) Authority
(b) Responsibility
(c) Accountability
(d) Both(a) and(c)

Answer

Answer: (b) Responsibility

Question 14.
___ is the right to command.
(a) Authority
(b) Responsibility
(c) Accountability
(d) Both (b) and (c)

Answer

Answer: (a) Authority

Question 15.
___ cannot be delegated.
(a) Authority
(b) Responsibility
(c) Accountability
(d) Both (a) and (b)

Answer

Answer: (c) Accountability

Question 16.
When decision-making authority is retained organisation is said to be by higher management levels, an
(a) Decentralised
(b) Centralised
(c) Fragmented
(d) None of the above

Answer

Answer: (b) Centralised

Question 17.
Responsibility is derived from
(a) Authority
(b)Formal position
(c) Accountability
(d) All of the above

Answer

Answer: (a) Authority

Question 18.
Which of the following cannot be delegated?
(a) Responsibility and accountability
(b) Authority and responsibility
(c) Accountability and responsibility
(d) All of the above

Answer

Answer: (a) Responsibility and accountability

Question 19.
The accountability flows
(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above

Answer

Answer: (c) Upwards
Explanation:
a subordinate is accountable to his superior

Question 20.
Authority granted to an employee should be
(a) More than the responsibility entrusted to him
(b) Less than the responsibility entrusted to him
(c) Equal to the responsibility entrusted to him
(d) All of the above

Answer

Answer: (c) Equal to the responsibility entrusted to him

Authority granted to an employee should be

True or False

State with reasons whether the following statements are True or False.

1. Delegation is the step of organising process through which departments and sections in an organisation are created.

Answer

Answer: False; departmentalisation is the step.

2. Divisional structure is the aspect of organising that establishes relationships between people, work and resources.

Answer

Answer: False; organisation structure is the aspect of organising.

3. Formal organisational structure is consciously and deliberately designed structure of well-defined jobs.

Answer

Answer: True; formal organisational structure is consciously and deliberately designed structure of well-defined jobs, each bearing a definite authority, responsibility and accountability.

4. Responsibility cannot be delegated at all.

Answer

Answer: False; accountability cannot be delegated at all.

5. Responsibility is the duty for job performance.

Answer

Answer: True; it originates from delegated authority.

6. Accountability originates from delegated authority.

Answer

Answer: False; responsibility originates from delegated authority.

We hope the given NCERT MCQ Questions for Class 12 Business Studies Chapter 5 Organising with Answers Pdf free download will help you. If you have any queries regarding Organising CBSE Class 12 Business Studies MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Business Studies MCQ:

MCQ Questions for Class 12 Accountancy Chapter 3 Reconstitution of Partnership Firm: Admission of a Partner with Answers

Reconstitution of Partnership Firm: Admission of a Partner Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 3 Reconstitution of Partnership Firm: Admission of a Partner with Answers Pdf free download. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. We have provided Reconstitution of Partnership Firm: Admission of a Partner Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well.

Class 12 Accountancy Chapter 3 Reconstitution of Partnership Firm: Admission of a Partner MCQ With Answers

Accountancy Class 12 Chapter 3 MCQs On Reconstitution of Partnership Firm: Admission of a Partner

Admission Of A Partner MCQ Chapter 3 Class 12 Question 1.
Goodwill is nothing more than probability that the old customer will resort to the old place. This definition of goodwill was given by:
(a) Spicer and Pegler
(b) ICAI
(c) Lord Elton
(d) AICPA

Answer

Answer: (c) Lord Elton

Admission Of Partner MCQ Chapter 3 Class 12 Question 2.
Goodwill is to be calculated at one and half year’ purchase of average profit of last 5 years. The firm earned profits during 3 years as ₹ 20,000 ₹ 18,000 and ₹ 9,000 and suffered losses of ₹ 2,000 and ₹5,000 in last 2 years. The amount of goodwill will be :
(a) ₹ 12,000
(b) ₹ 10,000
(c) ₹ 15,000
(d) None of these

Answer

Answer: (a) ₹ 12,000

MCQ Of Goodwill Class 12 Class 12 Question 3.
When there is no Goodwill Account in the books and goodwill is raised,…………….account will be debited :
(a) Partner’s Capital
(b) Goodwill
(c) Cash
(d) Reserve

Answer

Answer: (b) Goodwill

MCQ Questions For Class 12 Accountancy Chapter 3  Question 4.
The amount of goodwill is paid by new partner :
(a) for the payment of capital
(b) for sharing the profit
(c) for purchase of assets
(d) None of these

Answer

Answer: (b) for sharing the profit

MCQ On Admission Of A Partner Chapter 3 Class 12 Question 5.
At the time of admission of a new partners general reserve appearning in the old Balance Sheet is transferred to:
(a) All Partner’s Capital Accounts
(b) New Partner’s Capital Account
(c) Old Partners’. Capital Accounts
(d) None of these

Answer

Answer: (c) Old Partners’. Capital Accounts

MCQ Questions For Class 12 Accountancy Chapter Goodwill Question 6.
Profit or Loss on Revaluation is borne by:
(a) Old Partners
(b) New Partners
(c) All Partners
(d) Only Two Partners

Answer

Answer: (a) Old Partners

Admission Of Partner MCQ Pdf Chapter 3 Class 12 Question 7.
Share of goodwill brought by new partner in case is shared by old partners in :
(a) Sacrificing Ratio
(b) Old Ratio
(c) New Ratio
(d) Equal Ratio

Answer

Answer: (a) Sacrificing Ratio

Reconstitution Of Partnership Firm Class 12 MCQ Class 12 Question 8.
A, Band Care three partners sharing profits and losses in the ratio of 4:3:2. D is admitted for 1/10 share, the new ratio will be :
(a) 10 : 7 : 7 :4
(b) 5 : 3 : 2 : 1
(c) 4 : 3 : 2 : 1
(d) None of these

Answer

Answer: (c) 4 : 3 : 2 : 1

Question 9.
A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a new partner for 1/3 rd share in the profits of the firm. The new profit sharing ratio of A, B and C would be :
(a) 3 : 2 : 1
(b) 3 : 2 : 2
(c) 3 : 2 : 3
(d) 6 : 4 : 5

Answer

Answer: (d) 6 : 4 : 5

Question 10.
X and Y are partners sharing profits in the ratio of 1:1. They admit Z for 1/5 th share who contributed ₹25,000 for his share of goodwill. The total value of goodwill of the firm will be :
(a) ₹ 2,50,000
(b) ₹ 50,000
(c) ₹ 1,00,000
(d) ₹ 1,25,000

Answer

Answer: (c) ₹ 1,00,000

Question 11.
A, B and C are partners in a firm. If D is admitted as a new partner, then:
(a) Old firm is dissolved
(b) Old firm and old partnership is dissolved
(c) Old Partnership is reconsitituted
(d) None of these

Answer

Answer: (c) Old Partnership is reconsitituted

A, B and C are partners in a firm. If D is admitted as a new partner, then:

Question 12.
In which ratio, the cash brought in for goodwill by the new partner is shared by the existing partners :
(a) Profit sharing ratio
(b) Capital ratio
(c) Sacrificing ratio
(d) None of these

Answer

Answer: (c) Sacrificing ratio

Question 13.
Sacrificing ratio is ascertained at the time of:
(a) Death of a partner
(b) Retirement of a partner
(c) Admission of a partner
(d) None of these

Answer

Answer: (c) Admission of a partner

Question 14.
If at the time of admission of new partner, Profit and Loss Account balance appears in the books, it will the transferred to:
(a) Profit & Loss Appropriation A/c
(b) All Partners’ Capital A/cs
(c) Old Partners’ Capital A/cs
(d) Revaluation A/c

Answer

Answer: (c) Old Partners’ Capital A/cs

Question 15.
State the ‘true’ statement:
(a) Profit & Loss Adjustment A/c is prepared for revaluated of assets and liabilities on the admission of a partner
(b) The new partner is liable for the past losses of the firm
(c) In case the new partner is unable to bring in cash for goodwill, Goodwill Account may be raised in the firm’s books as per AS-26
(d) When a partner is admitted, there is dissolution of firm

Answer

Answer: (a) Profit & Loss Adjustment A/c is prepared for revaluated of assets and liabilities on the admission of a partner

Question 16.
Excess of the credit side over the debit side of Revaluation account is:
(a) Profit
(b) Loss
(c) Gain
(d) Expense

Answer

Answer: (a) Profit

Question 17.
Balance sheet prepared after new partnership agreement, assets and liabilities are recorded at:
(a) Original Value
(b) Revalued Figure
(c) At Realisable Value
(d) Either of (a) or (b)

Answer

Answer: (b) Revalued Figure

Question 18.
Assets and Liabilities are shown at their revalued values in :
(a) New Balance Sheet
(b) Revaluation A/c
(c) All Partner’s Capital A/c’s
(d) Realisation A/c

Answer

Answer: (a) New Balance Sheet

Question 19.
Which of the following assets is compulsorily revalued at the time of admission of a new partner :
(a) stock
(b) Fixed Assets
(c) Investment
(d) Goodwill

Answer

Answer: (d) Goodwill

Question 20.
A and B are partners. C is admitted with 1/5 share. C brings 7 1,20,000 as his share towards capital. The total net worth of the firm is :
(a) ₹ 1,00,000
(b) ₹ 4,00,000
(c) ₹ 1,20,000
(d) ₹ 6,00,000

Answer

Answer: (d) ₹ 6,00,000

Question 21.
A and B share profits and losses in the ratio of 3:4. C was admitted for 1/5 th share. New profit sharing ratio will be:
(a) 3 : 4 : 1
(b) 12 : 16 : 7
(c) 16 : 12 : 7
(d) None of these

Answer

Answer: (b) 12 : 16 : 7

Question 22.
The opening balance of Partner’s Capital Account is credited with:
(a) Interest on Capital
(b) Interest on Drawings
(c) Drawings
(d) Share in loss

Answer

Answer: (a) Interest on Capital

Question 23.
Share of goodwill brought in cash by the new partner is called:
(a) Assets
(b) Profit
(c) Premium
(d) None of these

Answer

Answer: (c) Premium

Question 24.
If the incoming partner brings the amount of goodwill in cash and also a balance exists in Goodwill A/c, then the Goodwill A/c is written off among the old partners:
(a) In new profit-sharing ratio
(b) In old profit-sharing ratio
(c) In sacrificing ratio
(d) In gaining ratio

Answer

Answer: (b) In old profit-sharing ratio

Question 25.
A and B share profits and losses in the ratio of 3 : 1.C is admitted into partnership for 1/4 share. The sacrificing ratio of A and B is :
(a) Equal
(b) 3 : 1
(c) 2 : 1
(d) 3 : 2

Answer

Answer: (b) 3 : 1

Question 26.
A and B are partners sharing profites in the ratio of 3 : 1. They admit C for 1/4 share in future profits. The new profit sharing ratio will be:
(a) A\(\frac {9}{16}\), B\(\frac {3}{16}\), C\(\frac {4}{16}\)
(b) A\(\frac {8}{16}\), B\(\frac {4}{16}\), C\(\frac {4}{16}\)
(c) A\(\frac {10}{10}\), B\(\frac {2}{16}\), C\(\frac {4}{16}\)
(d) A\(\frac {8}{16}\), B\(\frac {9}{16}\), C\(\frac {10}{16}\)

Answer

Answer: (a) A\(\frac {9}{16}\), B\(\frac {3}{16}\), C\(\frac {4}{16}\)

Question 27.
Formula of Sacrificing ratio is:
(a) New Ratio – Old Ratio
(b) Old Ratio – New Ratio
(c) Gain Ratio – Sacrificing Ratio
(d) New Ratio – Sacrificing Ratio .

Answer

Answer: (b) Old Ratio – New Ratio

Question 28.
The accumulated profits and reserves are transferred to:
(a) Realisation A/c
(b) Partner’s Capital A/cs
(c) Bank A/c
(d) Savings A/c

Answer

Answer: (b) Partner’s Capital A/cs

Question 29.
A, B and C are equal partners. D is admitted to the firm for non-ourth share. D brings ₹ 20,000 as capital and ₹ 5,000 being half of the premium for goodwill. The value of goodwill of the firm is :
(a) ₹ 10,000
(b) ₹ 40,000
(c) ₹ 30,000
(d) None of these

Answer

Answer: (b) ₹ 40,000

Question 30.
On the admission of a new partner, increase in the value of assets is debited to which account ?
(a) Revaluation Account
(b) Assets Account
(c) Old Partners’ Capital Accounts
(d) None of these

Answer

Answer: (b) Assets Account

Question 31.
Z is admitted in a firm for a 1/4 share in the profit for which he brings 7 30,000 for goodwill. It will be taken away by the old partners X and Y in :
(a) Old profit-sharing ratio
(b) New profit-sharing ratio
(c) Sacrificing ratio
(d) Capital ratio

Answer

Answer: (c) Sacrificing ratio

Question 32.
On the admission of a new partner, the decrease in the value of assets is debited to:
(a) Revaluation Account
(b) Assets Account
(c) Old Partners’ Capital Accounts
(d) None of these

Answer

Answer: (a) Revaluation Account

Question 33.
When the new partner pays for goodwill in cash, the amount should be debited in the firm’s book to:
(a) Goodwill Account
(b) Cash Account
(c) Capital Account of new partner
(d) None of these

Answer

Answer: (b) Cash Account

Question 34.
The balance of Revaluation Account or Profit & Loss Adjustment Account is transferred to Old Partners’ Capital Accounts in their :
(a) Old profit-sharing ratio
(b) New profit-sharing ratio
(c) Equal ratio
(d) Capital ratio

Answer

Answer: (a) Old profit-sharing ratio

Question 35.
X and Y share profits in the ratio of 3 : 2 Z was admitted as a partner who gets 1/5 share. Z acquires 3/20 from X and 1/20 from Y. The new profit sharing ratio will be :
(a) 9 : 7 : 4
(b) 8 : 8 : 4
(c) 6 : 10 : 4
(d) 10 : 6 :4

Answer

Answer: (a) 9 : 7 : 4

Question 36.
The opening balance of Partner’s Capital Account is credited with:
(a) Interest on Capital
(b) Interest on Drawings
(c) Drawings
(d) Share in loss

Answer

Answer: (a) Interest on Capital

Question 37.
At the time of admission of a new partner, Undistributed Profits appearing in the Balance Sheet of the old firm is transferred to the Capital Account of:
(a) Old partners is old profit-sharing ratio
(b) Old partners in new profit-sharing ratio
(c) All the partners in the new profit-sharing ratio
(d) None of these

Answer

Answer: (a) Old partners is old profit-sharing ratio

Question 38.
Z is admitted in a firm for al/4 share in the profit for which he brings 7 30,000 for goodwill. It will be taken away by the old partners X and Y in :
(a) Old profit-sharing ratio
(b) New profit-sharing ratio
(c) Sacrificing ratio
(d) Capital ratio

Answer

Answer: (c) Sacrificing ratio

Question 39.
General Reserval at the time of admission of a new partner is transferred to :
(a) Revaluation Account
(b) Old Partner’s Capital Account
(c) Profit and Loss Adjustment Account
(d) Realisation Account

Answer

Answer: (b) Old Partner’s Capital Account

Question 40.
Change in profit-sharing ratio of existing partners results in:
(a) Revaluation of Firm
(b) Reconstitutions of Firm
(c) Dissolution of Firm
(d) None of these

Answer

Answer: (b) Reconstitutions of Firm

Question 41.
X, Y and Z are partners in a firm, they divided profit and loss in the ratio of 4:3:1. They decided to share profit In the ratio 5:4:3. X’s and Y’s sacrifices are :
(a) \(\frac{2}{24}: \frac{1}{24}\)
(b) \(\frac{1}{24}: \frac{3}{24}\)
(c) \(\frac{2}{24}: \frac{3}{24}\)
(d) None of these

Answer

Answer: (a) \(\frac{2}{24}: \frac{1}{24}\)

Question 42.
On reconstitution of a partnership firm, recording of an unrecorded liability wil result in:
(a) Gain to the existing partners
(b) Loss to the existing partners
(c) Neither gain nor loss to the existing partners
(d) None of these

Answer

Answer: (b) Loss to the existing partners

Question 43.
Increase In the value of assets on reconstitution of the partnership firm results into :
(a) Gain to the existing partners
(b) Loss to the existing partners
(c) Neither gain nor loss to the existing partners
(d) None of these

Answer

Answer: (a) Gain to the existing partners

Question 44.
The balance of Revaluation Account is transferred to old Partner’s Capital Accounts in their:
(a) Old Profit-sharing Ratio
(b) New Profit-sharing Ratio
(c) Equal Ratio
(d) None of these

Answer

Answer: (a) Old Profit-sharing Ratio

Question 45.
X and Y share profits in the ratio 2 :3. In future they have decided to share profits in equal ratio. Which partner will sacrifice in which ratio ?
(a) X sacrifice 1/10
(b) Y sacrifice 1/5
(c) Y sacrifice 1/10
(d) None of these

Answer

Answer: (c) Y sacrifice 1/10

Question 46.
Change in the partnership agreement results in:
(a) Reconstitution of Firm
(b) Dissolution of Firm
(c) Amalgamation of Firm
(d) None of these

Answer

Answer: (a) Reconstitution of Firm

Question 47.
Change in the partnership agreement:
(a) Changes the relationship among the partners
(b) Results in end of partnership business
(c) Dissolves the partnership firm
(d) None of these

Answer

Answer: (a) Changes the relationship among the partners

Question 48.
Excess of credit side over the debit side in Revalution Account is:
(a) Profit
(b) Loss
(c) Receipt
(d) Expense

Answer

Answer: (a) Profit

Question 49.
A, B and C are partners in a firm, if D is admitted as a new partner:
(a) Old firm is dissolved
(b) Old firm and old partnership are dissolved
(c) Old partnership is reconstituted
(d) None of these

Answer

Answer: (c) Old partnership is reconstituted

Question 50.
Recording of an unrecorded asset on the reconstltutlam of a partnership firm will be:
(a) A gain to the existing partners
(b) A loss to the existing partners
(c) Neither a gain nor a loss to the existing partners
(d) None of these

Answer

Answer: (a) A gain to the existing partners

Question 51.
Revaluation Account or Profit & Loss Adjustment Account is a:
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these

Answer

Answer: (c) Nominal Account

Question 52.
A, B, C and D are partners sharing their profits and losses equally. They change their profit sharing ratio to 2:2:1:1. How much will C sacrifice ?
(a) 1/6
(b) 1/12
(c) 1/24
(d) None of these

Answer

Answer: (d) None of these

Question 53.
Sacrificing Ratio:
(a) New Ratio – Old Ratio
(b) Old Ratio – New Ratio
(c) Gaining Ratio – Old Ratio
(d) Old Ratio – Gaining Ratio

Answer

Answer: (b) Old Ratio – New Ratio

Question 54.
Gaining Ratio:
(a) New Ratio – Old Ratio
(b) Old Ratio – Sacrificing Ratio
(c) New Ratio – Sacrificing Ratio
(d) Old Ratio – New Ratio

Answer

Answer: (a) New Ratio – Old Ratio

Question 55.
X and Y share profit and loss in 3:2. From 1st January, 2017 they agreed to share profit equally. Their sacrifice or gain will be :
(a) Sacrifice by X: 1/10
(b) Sacrifices by Y : 1/10
(c) Both (a) and (b)
(d) Non of these

Answer

Answer: (c) Both (a) and (b)

Question 56.
At the time of admission of a new partner, General Reserve a appearing in the old Balances Sheet is transferred to:
(a) All Partner’s Capital Accounts .
(b) New Partners’ Capital Accounts
(c) Old Partner’s Capital Accounts
(d) None of these

Answer

Answer: (c) Old Partner’s Capital Accounts

Question 57.
Change in profit-sharing ratio of existing partners results in:
(a) Revaluation of Firm
(b) Reconstitution of Firm
(c) Dissolution of Firm
(d) None of these

Answer

Answer: (b) Reconstitution of Firm

Question 58.
Generally the interest on capital is considered as :
(a) An appropriation of profit
(b) An Asset
(c) An Expense
(d) None of these

Answer

Answer: (a) An appropriation of profit

Question 59.
Increase in the value of assets on reconstitution of the partnership firm results into:
(a) Gain to the existing partners
(b) Loss to the existing partners
(c) Neither a gain nor a loss to the existing partners
(d) None of these

Answer

Answer: (a) Gain to the existing partners

Question 60.
Following are the factors affecting goodwill except:
(a) Nature of business
(b) Efficiency of Management
(c) Technical Knowledge
(d) Location of the Customers

Answer

Answer: (c) Technical Knowledge

Question 61.
The profit of the last three years are ₹ 42,000, ₹ 39,000 and ₹ 45,000. Value of goodwill at two years purchases of the average profits will be :
(a) ₹ 42,000
(b) ₹ 84,000
(c) ₹ 1,26,000
(d) ₹ 36,000

Answer

Answer: (b) ₹ 84,000

Question 62.
Under average profit basis goodwill is calculated by :
(a) No. of years’ purchased x Average profit
(b) No. of years’ purchased x Super profit
(c) Super Profit -r Expected Rate of Return
(d) None of these

Answer

Answer: (a) No. of years’ purchased x Average profit

Question 63.
Goodwill is:
(a) Tangible Asset
(b) Intangible Asset
(c) Current Asset
(d) None of these

Answer

Answer: (b) Intangible Asset

Question 64.
An asset which is not ficitious but intangible in nature, having realisable value is :
(a) Machinery
(b) Building
(c) Furniture
(d) Goodwill

Answer

Answer: (d) Goodwill

Question 65.
Which of the following is not a method of valuation of Goodwill:
(a) Revaluation Method
(b) Average Profit Method
(c) Super Profit Method
(d) Capitalisation Method

Answer

Answer: (a) Revaluation Method

Question 66.
The excess of average profits over the normal profits are called :
(a) Super Profits
(b) Fixed Profits
(c) Abnormal Profits
(d) Normal Profits

Answer

Answer: (a) Super Profits

The excess of average profits over the normal profits are called :

Question 67.
Goodwill is a…………….asset
(a) Useless
(b) Tangible
(c) Worthless
(d) Valuable

Answer

Answer: (c) Worthless

Question 68.
Under super profit basis goodwill is calculated by :
(a) No. of years’ purchased x Average Profit
(b) No. of years’ purchased x Super profit
(c) Super profit -r Expected rate of return
(d) None of these

Answer

Answer: (b) No. of years’ purchased x Super profit

Question 69.
Profits of the last three years were ₹ 6,000, ₹ 13,000 and ₹ 8,000 respectively. Goodwill at two years purchase of the average net profit will be :
(a) ₹ 81,000
(b) ₹ 27,0000
(c) ₹ 9,000
(d) ₹ 18,000

Answer

Answer: (d) ₹ 18,000

Question 70.
What do you mean by Super Profit ?
(a) Total Profit/No. of Years
(b) Average Profit – Normal Profit
(c) Weighted Profit/No. of Years’ Purchase
(d) None of these

Answer

Answer: (b) Average Profit – Normal Profit

Question 71.
Capital employed in a business is ₹ 1,50,000. Profits are ₹ 50,000 and the normal rate of profit is 20%. The amount of goodwill as per capitalisation method will be:
(a) ₹ 2,00,000
(b) ₹ 1,50,000
(c) ₹ 3,00,000
(d) ₹ 1,00,000

Answer

Answer: (d) ₹ 1,00,000

Question 72.
Weighted average method of calculating goodwill is used when:
(a) Profits are equal
(b) Profit has increasing trend
(c) Profit has decreasing trend
(d) Either (b) or (c)

Answer

Answer: (d) Either (b) or (c)

Question 73.
The monetary value of reputation of the business is called:
(a) Goodwill
(b) Super Profit
(c) Surplus
(d) Abnormal Profit

Answer

Answer: (a) Goodwill

Question 74.
A firm has an average profit of ₹ 60,000 Rate of return on capital employed is 12.5% p.a. Total capital employed in the firm was ₹ 4,00,000. Goodwill on the basis of two years purchase of super profit is :
(a) ₹ 20,000
(b) ₹ 15,000
(c) ₹ 10,000
(d) None of these

Answer

Answer: (a) ₹ 20,000

Question 75.
Under capitalisation method, goodwill is calculated by :
(a) Average Profit x No. of Years’ Purchase
(b) Super Profit x No. of Years’ Purchase
(c) Total of the discounted value of expected future benefits
(d) Super Profit -r Expected Rate of Return

Answer

Answer: (d) Super Profit -r Expected Rate of Return

Question 76.
“Goodwill is nothing more than probability that the old customer will resort to the old place.” This definition of goodwill was given by :
(a) Spicer and Pegler
(b) ICAI
(c) Lord Eldon
(d) AICPA

Answer

Answer: (c) Lord Eldon

Question 77.
What will be the value of goodwill at twice the average of last three years profit if the profits of the last three years were ₹ 4,000, ₹ 5,000 and ₹ 6,000 ?
(a) ₹ 5,000
(b) ₹ 10,000
(c) ₹ 8,000
(d) None of these

Answer

Answer: (b) ₹ 10,000

Question 78.
The Valuation of Goodwill is not necessary in Sole Trading:
(a) On selling the Firm
(b) On making a partner
(c) On estimation of Assets
(d) On Closing the Firm

Answer

Answer: (d) On Closing the Firm

We hope the given NCERT MCQ Questions for Class 12 Accountancy Chapter 3 Reconstitution of Partnership Firm: Admission of a Partner with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Accountancy Reconstitution of Partnership Firm: Admission of a Partner MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Accountancy MCQ:

MCQ Questions for Class 12 Accountancy Chapter 1 Accounting for Not for Profit Organisation with Answers

Accounting for Not for Profit Organisation Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 1 Accounting for Not for Profit Organisation with Answers Pdf free download. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. We have provided Accounting for Not for Profit Organisation Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well.

Class 12 Accountancy Chapter 1 Accounting for Not for Profit Organisation MCQ With Answers

Accountancy Class 12 Chapter 1 MCQs On Accounting for Not for Profit Organisation

Npo MCQ Class 12 Question 1.
Receipts and Payments A/c is a summary of:
(a) All Capital Receipts and Payments
(b) All Revenue Receipts and Payments
(c) All Revenue and Capital Receipts and Payments
(d) None of the above

Answer

Answer: (c) All Revenue and Capital Receipts and Payments

MCQ Of Npo Class 12 Question 2.
Subscription received by a schoblfbr organising annual V function is treated as:
(a) Capital Receipt
(b) Revenue Receipt
(c) Asset
(d) Earned Income

Answer

Answer: (c) Asset

MCQ On Non Profit Organisation Pdf Question 3.
Out of the following items, which one is shown in the Receipts and Payments Account?
(a) Outstanding Salary
(b) Depreciation
(c) Life Membership Fees
(d) Accrued Subscription

Answer

Answer: (b) Depreciation

Npo MCQ Questions Question 4.
In case specific fund is maintained, the expenses exceeding the amount of the fluids, should be recorded on:
(a) Liabilities side of the Balance Sheet
(b) Debit side the Income and Expenditure Account
(c) Credit side of the Income and Expenditure Account
(d) Assets side of the Balance Sheet

Answer

Answer: (b) Debit side the Income and Expenditure Account

MCQ Of Accountancy Class 12 Chapter 1 Question 5.
All receipts from sale of consumable items are treated as:
(a) Capital Receipts
(b) Revenue Receipts
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (b) Revenue Receipts

Npo Class 12 MCQ Question 6.
Capital fUnd is calculated:
(a) Income-Expenditure
(b) Assets Liabilities
(c) Capital + Liabilities
(d) None of these

Answer

Answer: (b) Assets Liabilities

Question 7.
Subscription redeved in advance during the current year is:
(a) An income
(b) An Asset
(c) A liability
(d) None of these

Answer

Answer: (c) A liability

Question 8.
Balance of Income and Expenditure Account shows:
(a) Cash in hand
(b) Capital Fund
(c) Net Profit
(d) Excess of Income over Expenditure or Vice Versa

Answer

Answer: (d) Excess of Income over Expenditure or Vice Versa

Balance of Income and Expenditure Account shows:

Question 9.
Property received as a result of the will of the deceased person is called:
(a) Legacy
(b) Honorarium
(c) Donation
(d) Subscription

Answer

Answer: (a) Legacy

Question 10.
Receipts and Payments Account usually indicates:
(a) Surplus
(b) Capital Fund
(c) Debit Balance
(d) Credit Balance

Answer

Answer: (c) Debit Balance

Question 11.
Income and Expenditure Account generally indicates:
(a) Surplus/Deficit
(b) Cash Balance
(c) Capital Fund
(d) Net Profit/Loss

Answer

Answer: (a) Surplus/Deficit

Question 12.
Donation received for a special purpose:
(a) Should be credited to Income and Expenditure A/c
(b) Should be credited to a separate account and shown in the Balance Sheet
(c) Should be shown on the Assets side of the Balance Sheet
(d) None of these

Answer

Answer: (b) Should be credited to a separate account and shown in the Balance Sheet

Question 13.
In not-for-profit organisation, excess of expenditure over income is called :
(a) Loss
(b) Profit
(c) Deficit
(d) Surplus

Answer

Answer: (c) Deficit

Question 14.
Which of the following is a non-profitable organisation ?
(a) Jharkhand Academic Council
(b) Tata Steel
(c) Air India
(d) Reliance Co. Ltd.

Answer

Answer: (a) Jharkhand Academic Council

Question 15.
Income and Expenditure Account is preparedly :
(a) Trending Organisation
(b) Non-trading Organisation
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (b) Non-trading Organisation

Question 16.
Sale of old newspapers is:
(a) Capital Receipt
(b) Revenue Receipt
(c) Asset
(d) Profit

Answer

Answer: (b) Revenue Receipt

Question 17.
Income and expenses related to the prize fund is shown in:
(a) Income and Expenditure Account
(b) Assets side of the Balance Sheet
(c) Liabilities side of the Balance Sheet
(d) Cash Account

Answer

Answer: (a) Income and Expenditure Account

Question 18.
Which of the following is not a not-for-profit organisation:
(a) School
(b) Hospital
(c) Club
(d) Partnership Firm

Answer

Answer: (d) Partnership Firm

Question 19.
Subscription received during the year 50,000 Rs. Subscriptions outstanding at the end of the year 8,000 Rs. Subscription outstanding at the beginning of the year 6,000 Rs. Net Income from subscription will be :
(a) 48,000 Rs.
(b) 64,000 Rs.
(c) 52,000 Rs.
(d) 36,000 Rs.

Answer

Answer: (c) 52,000 Rs.

Question 20.
Subscription received during the year ₹ 1,80,000 Subscriptions outstanding at the end of the year ₹ 20,000 Subscriptions received in advance at the end of the year ₹ 10,000. The amount of subscription to be credited to Income and Expenditure Account will be:
(a) ₹ 2,10,000
(b) ₹ 1,90,000
(c) ₹ 1,70,000
(d) ₹ 2,00,000

Answer

Answer: (b) ₹ 1,90,000

Question 21.
In case specific fund is maintained, the expenses exceeding the amount of the funds, should be recorded on:
(a) Liabilities side of the Balance Sheet
(b) Debit side of the Income and Expenditure Account
(c) Credit side of the Income and Expenditure Account
(d) Assets side of the Balance Sheet

Answer

Answer: (b) Debit side of the Income and Expenditure Account

Question 22.
Income and Expenditure Account is:
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these

Answer

Answer: (c) Nominal Account

Question 23.
Life Membership Fees received by a club is shown in :
(a) Income and Expenditure A/c
(b) Balance Sheet
(c) Receipts and Payments A/c
(d) None of these

Answer

Answer: (b) Balance Sheet

Question 24.
Receipts and Payments Account is a :
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these

Answer

Answer: (b) Real Account

Question 25.
Income and Expenditure Account is prepared :
(a) By Business Organisation
(b) By Industrial Organisation
(c) By Not-for-Profit Organisation
(d) By All Organisations

Answer

Answer: (c) By Not-for-Profit Organisation

Question 26.
Payment of honorarium to secretary is treated as :
(a) Capital expenditure
(b) Revenue expenditure
(c) An Income
(D/) None of these

Answer

Answer: (b) Revenue expenditure

Question 27.
Outstanding subscription is a:
(a) Income
(b) Asset
(c) (a) and (b) both
(d) None of these

Answer

Answer: (c) (a) and (b) both

Question 28.
Legacies should be treated as :
(a) A Liability
(b) A Revenue Receipt
(c) An Income
(d) None of these

Answer

Answer: (a) A Liability

Question 29.
The excess of assets over liabilities in non-trading concerns is termed as:
(a) Capital Fund
(b) Capital
(c) Profit
(d) Net Profit

Answer

Answer: (a) Capital Fund

Question 30.
For a non-trading concern, honorarium paid is:
(a) An Income
(b) An Asset
(c) An Expense
(d) None of these

Answer

Answer: (c) An Expense

For a non-trading concern, honorarium paid is:

Question 31.
Entrance fees, unless otherwise stated, is treated as:
(a) A Capital Receipt
(b) A Revenue Income
(c) A Liability
(d) None of these

Answer

Answer: (b) A Revenue Income

Question 32.
Specific donation is:
(a) Capital Receipt
(b) Revenue Receipt
(c) Asset
(d) None of these

Answer

Answer: (a) Capital Receipt

Question 33.
Income and Expenditure Account records transactions of:
(a) Capital nature only
(b) Revenue nature only
(c) (a) and (b) both
(d) None of these

Answer

Answer: (b) Revenue nature only

Question 34.
Life membership fee received by a club is:
(a) Revenue Receipt
(b) Capital Receipt
(c) (a) and (b) both
(d) None of these

Answer

Answer: (b) Capital Receipt

Question 35.
All receipts of capital nature are shown in :
(a) Income and Expenditure A/c
(b) Balance Sheet
(c) P. & L. A/c
(d) None of these

Answer

Answer: (b) Balance Sheet

Question 36.
All items of revenue in nature are shown in:
(a) Income and Expenditure A/c
(b) Balance Sheet
(c) (a) and (b) both
(d) None of these

Answer

Answer: (a) Income and Expenditure A/c

Question 37.
Which of the following is not a not-for-profit organisation ?
(a) College
(b) Sports Club
(c) Maruti Udyog
(d) Hospital

Answer

Answer: (c) Maruti Udyog

Question 38.
Subscriptions received in advance by a club are shown on… .of the Balance Sheet
(a) Assets Side
(b) Liabilities Side
(c) Debit Side
(d) Credit Side

Answer

Answer: (b) Liabilities Side

Question 39.
Which of the following is not an income ?
(a) Subscription
(b) Donation
(c) Sale of Ticket
(d) Endowment Fund

Answer

Answer: (d) Endowment Fund

Question 40.
Most transaction in non-trading concerns are:
(a) Cash
(b) Credit
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (a) Cash

Question 41.
The main object of non-profit organisation is:
(a) To earn Profit
(b) To Serve the Society
(c) To Prepare Profit & Loss A/c
(d) All the above

Answer

Answer: (b) To Serve the Society

Question 42.
Subscription received by an organisation is:
(a) Capital Receipt
(b) Revenue Receipt
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (b) Revenue Receipt

We hope the given NCERT MCQ Questions for Class 12 Accountancy Chapter 1 Accounting for Not for Profit Organisation with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Accountancy Accounting for Not for Profit Organisation MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Accountancy MCQ: