CUET Business Studies Test 1

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1 / 40

1. On dissolution of a firm, realisation account is debited with

a) Any asset taken over by one of the partners

b) All outside liabilities of the firm

c) Cash received on sale of assets

d) All assets to be realised

2 / 40

2. On Dissolution, if a partner pays firm’s liability which of the following account is debited?

a) Partner’s Capital A/c

b) Cash A/c

c) Profit and Loss A/c

d) Realisation A/c

3 / 40

3. A firm’s value added is equal to :

a) Profit

b) Sales + Intermediate consumption

c) Sales

d) Sales – Intermediate consumption

4 / 40

4. In the event of dissolution of a partnership firm, the provision for doubtful debts is transferred to

a) Sundry Debtors Account

b) Partners Capital Accounts

c) Realisation Account

d) Bank Account

5 / 40

5. Depreciation means:

a) Loss in fixed assets due to normal wear and tear

b) Destruction of a factory due to fire

c) Loss in fixed assets due to earthquake

d) Shut-down of a factory due to strike

6 / 40

6. Which of the following is a final expenditure?

a) Scooter purchased by a dealer

b) Vegetables purchased by a restaurant

c) Milk purchased by a tea-maker

d) Computer purchased by a school

7 / 40

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

a) Partner’s Capital Accounts

b) Cash Account

c) Realisation Account

d) Partner’s Loan Account

8 / 40

8. Which of the following is not a problem of Barter system?

a) Double coincidence of wants

b) Unit of Account

c) Unemployment

d) Store of Value

9 / 40

9. In which condition a partnership firm is deemed to be dissolved?

a) On expiry of the period of partnership

b) On loss in partnership

c) On retirement of a partner

d) On a partner’s admission

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10. On firm’s Dissolution, Patents realised at ₹ 50,000. State which account will be credited.

a) Patents A/c

b) Realisation A/c

c) Cash A/c

d) Profit and Loss A/c

11 / 40

11. Supply of money refers to quantity of money:

a) at a particular point of time

b) as on 31st March

c) during a period of time

d) during a fiscal year

12 / 40

12. Which item from the following will be included in national income?

a) Interest payment by employees on loan given from employer

b) Employees contribution to the social security schemes

c) Expenditure on the construction of building

d) Expenditure on the maintenance of building

13 / 40

13. Court can make an order to dissolve the firm when :

a) Continued future profits are expected

b) Some partner has become unsound mind

c) Firm is running legal business

d) Partnership deed is fully followed

14 / 40

14. Which of the following is also known as domestic factor income?

a) NDPfc

b) NNPfc

c) NNPmp

d) GDPfc

15 / 40

15. While estimating national income, depreciation is measured from:

a) Durable Consumer goods

b) Intermediate goods

c) Final Goods

d) Capita Goods

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16. The net value at Market Price of final goods and services during an accounting year within the domestic territory of a country is known as

a) GDPmp

b) GDPfc

c) NNPfc

d) NDPmp

17 / 40

17. Which of the following is intermediate product?

a) Machine purchased by a firm

b) Wheat used by household

c) Pulses purchased by consumers

d) Wheat used by flour mill

18 / 40

18. Domestic income is greater than National Income if

a) NFIA is positive

b) None of these

c) NFIA is zero

d) NFIA is negative

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19. Which of the following is not the mode of dissolution of the firm?

a) Retirement of a Partner

b) Dissolution by Court

c) By Mutual Agreement

d) On Happening of an Event

20 / 40

20. Amount received from sale of unrecorded asset at the time of dissolution of the firm is credited to

a) Realisation A/c

b) Profit and Loss A/c

c) Partner’s Capital A/c

d) Cash A/c

21 / 40

21. Why does the Peddler knit up various thoughts?

a) because of loneliness during travelling

b) because of his optimistic nature

c) because he loved fairy tales

d) because of greed

22 / 40

22. Who regulates money supply?

a) Planning Commission

b) Commercial Bank

c) Government of India

d) Central Bank

23 / 40

23. Which of the following is transferred to Realisation A/c?

a) Balance of Profit and Loss

b) Balance of Cash A/c

c) Patents A/c

d) Balance of Reserves

24 / 40

24. On dissolution of a partnership firm, profit or loss on realisation is distributed among the partners

a) Equally

b) In capital ratio

c) In Profit sharing ratio

d) Gaining Ratio

25 / 40

25. At the time of dissolution of firm, at what stage the balance of Partner’s Capital Account are paid?

a) After payment of Outsider’s Liabilities and Partner’s Loan

b) Before payment of loan by partner

c) Before Payment of Outside Liabilities

d) After payment of Outsider’s Liabilities

26 / 40

26. Unrecorded liability, when paid on dissolution of a firm is debited to :

a) Liabilities A/c

b) Asset A/c

c) Realisation A/c

d) Partner’s Capital A/c

27 / 40

27. Which of these is not transfer payment?

a) None of these

b) Indirect Tax

c) Subsidies

d) Scholarship

28 / 40

28. When the value of same output is counted more than once while measuring national income it results:

a) Correct Measurement of National Income

b) None of these

c) Less Measurement of National Income

d) More Measurement of National Income

29 / 40

29. Old age pension given by Government of India comes under:

a) Factor Income

b) Domestic Factor Payment

c) Current Transfer

d) Capital Transfer

30 / 40

30. On Dissolution, Goodwill Account is transferred to

a) On the credit side of Cash A/c

b) On the Credit side of Realisation A/c

c) In the Capital Account of Partners

d) On the Debit side of Realisation A/c

31 / 40

31. From where did the Peddler get the material to make rattraps?

a) streets railings

b) factories and market

c) stores and farms

d) roads side

32 / 40

32. What does the rattrap seller resort to, at times, make his both ends meet?

a) thievery and begging

b) robbery

c) drug peddling

d) selling cookies

33 / 40

33. Whom does this story revolve around?

a) the crofter

b) the ironman

c) the Peddler- the Rattrap seller

d) the crofter and his daughter

34 / 40

34. If the money value of final goods and services produced by normal residents of a country in a year, measured at the prices of the current year then it is called as:

a) Real GDP

b) GDP at constant Price

c) National Product

d) GDP at Current price

35 / 40

35. Which of these is not an example of leakage?

a) Imports

b) Taxes

c) Savings

d) Intermediate goods

36 / 40

36. Which of the following is included in national income?

a) None of these

b) Interest payment on loan by households to banks

c) Sale of bonds by a company

d) Expenditure on transportation by a firm

37 / 40

37. Which of the stat ement is correct?

a) GNPmp will be greater than GDPmp when NFIA will be less than zero

b) GNPmp will be greater than GDPmp when NIT will be zero

c) GNPmp will be greater than GDPmp when NFIA will be zero

d) GNPmp will be greater than GDPmp when NFIA will be more than zero

38 / 40

38. In the absence of partnership deed, interest on capital is allowed at the rate of:

a) 12% simple interest

b) 6% p.a. compound interest

c) 6% p.a. simple interest

d) None of these

39 / 40

39. Medicine supply to the Earthquake victim in India by British Government is :

a) Net factor Income from abroad

b) Current Transfer

c) Capital Transfer

d) Factor Income

40 / 40

40. Which of these is transfer income?

a) Profit

b) Wages

c) Gifts received from abroad

d) Rent

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CUET Business Studies Test 1

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