BSNL JAO (Paper II) Sample Quiz

1.Bring out the false statement? (Only one option)
(A)Asset side of balance sheet represents debit balance
(B)Suspense Account appearing in the trial balance is shown in the balance sheet
(C)Prepaid rent is a personal account
(D)Accrued income appearing in the trial balance is shown in the P & L a/c
(E)Sales Tax collected is a liability

2.Which among the following is an incorrect statement?
(A)Estimated sale value of an asset after its working life is called scrap value
(B)Depreciation represents a fall in the value
(C)Discarding the old plant and machinery due to new inventions is called Obsolesce
(D)At a time of charging depreciation asset account is debited and depreciation account is credited
(E)Under fixed installment method depreciation is calculated on original value of the asset

3.Which among the following defines working capital?
(A)Current assets + Current liabilities
(B)Current Assets – Current liabilities
(C)Total Assets – Total liabilities
(D)Total Assets – Current Liabilities
(E)Current Assets – Total liabilities

Note: Study the following data and answer questions 4 to 7:

4.As per the above balance sheet, what will be the current ratio?
(A)1:1
(B)1:2
(C)2:1
(D)3:1
(E)none of the above

5.Which among the following represents the Quick Ratio ?
(A)1:1
(B)2:1
(C)1:2
(D)2:3
(E)3:1

6.What is the Working capital Turnover ratio in the above balance sheet ?
(A)7
(B)8
(C)10
(D)12
(E)14

7.Calculate the Inventory Turnover Ratio?
(A)7
(B)5
(C)7.9
(D)5.9
(E)8.2

8.Wages were paid to Mohan for erecting a machine. Which among the following account will be debited ?
(A)Wages a/c
(B)Machine A/c
(C)Mohan’s A/c
(D)Cash a/c
(E)None of them

9.A bank reconciliation statement is ?
(A)A part of cash book
(B)A part of pass Book
(C)A statement prepared by the bank
(D)A statement prepared by the customer
(E)None of them

10.Which among the following represents an unfavorable bank balance?
(A)Credit balance in the cash book
(B)Credit balance in the passbook
(C)Debit balance in the Cash Book
(D)Favorable balance in the cash Book
(E)None of them

11.The ownership of capital of joint Stock companies is divided in its ?
(A)Equity shares
(B)Debentures
(C)Bonds
(D)Debentures and Preference shares
(E)None of them

12.Which among the following is not an external short term finance source?
(A)Trade Credit
(B)Letter of Credit
(C)Securities if Employees
(D)Depreciation Fund
(E)Advance from customers

13.Which among the following represents correct meaning of written down value?
(A)Original cost – Scrap value
(B)Book value + Depreciation
(C)Book Value – Depreciation
(D)Scrap value – Depreciation
(E)None of them

14.What kind of asset is Goodwill?
(A)Floating
(B)wasting
(C)Fictious
(D)Intangible
(E)Tangible

and structural activities, goodwill etc.

15.The share of a new partner in a business is 1/5 and his capital is Rs. 20,000. If the new profit sharing ratio is 3:1:1 then calculate the share of partners in Total capital ?
(A)80,000: 20,000:20,000
(B)60,000: 20,000:20,000
(C)50,000: 20,000:20,000
(D)80,000: 20,000:25,000
(E)80,000: 25,000:20,000

16.What should be the minimum amount payable on application under the law, on an equity share of Rs. 100?
(A)Rs. 20
(B)Rs. 15
(C)Rs. 5
(D)Rs. 10
(E)Rs. 25

17.In which of the following the pre-incorporation profit will be transferred to ?
(A)General Reserve
(B)Capital Reserve
(C)Profit and loss account
(D)Trading account
(E)None of them

18.The Companies Act 1956 limits the number of partners as follows:
(A)10 for banking Business , 20 for retail business
(B)10 for Banking business , 10 for retail business
(C)12 for banking Business and 18 for retail business
(D)10 for banking business and 25 for retail business
(E)None of them

19.Under which of the following acts National Company Law Tribunal is constituted by the government?
(A)The Companies Amendment Act, 2006
(B)Indian Partnership Act 1932
(C)Companies Act 1956
(D)The Monopolies and Restrictive Trade Practices Act 1969
(E)None of them

20.In a Private company there are restrictions regarding which of the following ?
(A)Transfer of shares
(B)Issue of prospectus
(C)Number of members
(D)all of above
(E)none of above