361. Secret reserve can be created by _______________.
A. public limited company only.
B. banking and financial companies only.
C. private limited company only.
D. co-operative societies

362. General reserve is __________.
A. an appropriation from the profit.
B. a must item in the debit side of the P&L account.
C. an appropriation from the share capital.
D. important item in the balance sheet.

363. When a transaction has not been recorded in the books of account either wholly or partially such errors are
called as _________.
A. Error of commission.
B. Error of omission.
C. Compensating error.
D. Error of principle.

364. Verification of the value of assets, liabilities, the balance of reserves, provision and the amount of profit earned or loss suffered a firm is called _________.
A. Continuous audit.
B. Balance sheet audit.
C. Interim audit.
D. Partial audit.

365. Alterations and heavy repairs to plant etc., is _____________.
A. Deferred revenue expenditure.
B. Capital expenditure.
C. Revenue expenditure.
D. Petty expenses.

366. A sale of Rs. 50000 to Mr. A was entered as a sale to Mr. B. This is an example of:
A. Error of omission.
B. Error of commission.
C. Compensating error.
D. Error of principle.

367. Recording a transaction twice in the books of original entry is an error of __________.
A. Principle.
B. Commission.
C. Duplication.
D. Omission.

368. Errors and frauds already committed can be discovered under the system of ________.
A. Internal audit.
B. Internal check.
C. Internal control.
D. All of the above.

369. Treating revenue expenditure as capital expenditure is a case of _________.
A. fraud
B. misappropriation of cash.
C. misappropriation of goods.
D. manipulation of accounts.

370. Vouching of the balances of all incomes and expenses account is known as vouching of ______.
A. Personal ledger.
B. Impersonal ledger.
C. Cash.
D. Sales.

NOTE
IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG.
PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX.
THANK YOU

Leave a Reply