Roll No. ....................................

Question Booklet Number

O. M. R. Serial No.

B. C. A. (Second Semester) (B. P.)

EXAMINATION, 2022-23
FINANCIAL ACCOUNTING & MANAGEMENT
Questions Booklet
Paper Code Series

B C A 2 0 4 N A
Time : 1:30 Hours ] [ Maximum Marks : 75

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1. What is the purpose of the statement of 4. Financial accounting focuses on :

cash flows ? (A) Internal decision-making

(A) To report the financial position of a (B) External reporting to stakeholders

company at a specific point in time. (C) Cost analysis for management

(B) To present information about a (D) Budgeting and forecasting

company’s cash flows during a 5. The primary objective of financial

specific period. accounting is to :

(C) To provide details about a (A) Maximize profits for the company

company’s revenues and expenses (B) Provide information for internal

during a specific period. decision-making

(D) To show changes in the company’s (C) Facilitate the efficient allocation of

equity accounts over a period of resources

(D) Provide accurate and reliable
time.
financial information to external
2. Which of the following is an example of
users
a non-current liability ?
6. Management accounting primarily
(A) Accounts payable
involves :
(B) Salaries payable
(A) Preparing financial statements
(C) Long-term debt
(B) Reporting to external stakeholders
(D) Prepaid expenses
(C) Analyzing financial data for

3. Which financial statement reports the internal decision-making

financial position of a company at a (D) Auditing financial records

specific point in time ? 7. Cost of goods sold is an example of a :

(A) Income statement (A) Variable cost
(B) Statement of cash flows (B) Fixed cost
(C) Balance sheet (C) Mixed cost

(D) Statement of retained earnings (D) Step cost

BCA-204(N) (3) Set-A

8. Which of the following is a financial 12. The scope of financial accounting
ratio used to assess a company’s includes the recording and reporting of :
liquidity ? (A) Non-financial information such as
customer satisfaction ratings
(A) Return on Investment (ROl)
(B) Future projections and forecasts
(B) Current ratio
(C) Historical financial transactions
(C) Price-earnings ratio (P/E ratio)
and events
(D) Debt-to-equity ratio
(D) Non-monetary assets such as
9. The process of allocating the cost of an human resources

intangible asset over its useful life is 13. Financial accounting focuses on
known as : providing information to :
(A) Depreciation (A) Shareholders and investors
(B) Amortization (B) Internal managers and employees

(C) Depetion (C) Suppliers and vendors

(D) Competitors and industry analysts
(D) Impairment
14. Which of the following is considered an
10. Financial accounting primarily deals with
integral part of financial accounting ?
the :
(A) Management decision-making
(A) Preparation of budgets and
(B) Budgeting and forecasting
forecasts
(C) Risk assessment and management
(B) Analysis of cost behavior
(D) Compliance with accounting
(C) Reporting of financial information standards and regulations
to external stakeholders
15. Which organization is responsible for
(D) Evaluation of investment
formulating and issuing Accounting
opportunities Standards in India ?

11. Which of the following is within the (A) Institute of Chartered Accountants

scope of financial accounting ? of India (ICAI)

(B) Securities and Exchange Board of
(A) Internal management reporting
India (SEBI)
(B) Tax planning and compliance
(C) Reserve Bank of India (RBI)
(C) Cost analysis for decision-making (D) Ministry of Corporate Affairs
(D) Preparation of financial statements (MCA)

BCA-204(N) (4) Set-A

16. Which accounting standard in India 19. Which regulatory body in India has the
governs the treatment of revenue authority to modify or adopt accounting

recognition ? standards issued by ICAI ?

(A) AS 6 - Depreciation Accounting (A) Ministry of Corporate Affairs

(B) AS 9 - Revenue Recognition (MCA)

(C) AS 10 - Accounting for Fixed (B) Reserve Bank of India (RBI)

Assets (C) Securities and Exchange Board of

India (SEBI)
(D) AS 16 - Borrowing Costs
(D) National Financial Reporting
17. Accounting Standards in India are
Authority (NFRA)
primarily based on which international
20. Which of the following tasks can be
accounting framework ?
automated using computer applications
(A) International Financial Reporting
in financial accounting ?
Standards (IFRS)
(A) Interpreting financial statements
(B) Generally Accepted Accounting
(B) Decision-making for management
Principles (GAAP)
(C) Preparation of tax returns
(C) Indian Accounting Standards (Ind
(D) Monitoring cash flows and budgets
AS)
(D) International Public Sector 21. Which of the following is a key benefit

Accounting Standards (IPSAS) of using computer applications in

financial accounting ?
18. Which accounting standard in India deals
(A) Reduction in the need for financial
with the presentation of financial
statements
statements ?
(B) Elimination of the need for external
(A) AS 1 - Disclosure of Accounting audits
Policies (C) Increased speed and accuracy of
(B) AS 3 - Cash Flow Statements financial calculations
(C) AS 17 - Segment Reporting (D) Decreased reliance on accounting
(D) AS 18 - Related Party Disclosures principles and standards

BCA-204(N) (5) Set-A

22. The use of computerized accounting 25. Which of the following statements about
software allows for : a journal is correct ?

(A) Manual recording and processing (A) It records only debit entries.

of financial transactions (B) It summarizes all financial

(B) Real-time access to financial transactions of a specific account.

information (C) It is used to post closing entries at

(C) Limited storage capacity for the end of an accounting period.

financial data (D) It provides a chronological record

of all financial transactions.
(D) Inflexibility in generating financial
reports 26. The process of transferring journal
entries to the respective accounts in the
23. Which computer application is
ledger is known as :
commonly used to record and process
(A) Posting
financial transactions in an organization ?
(B) Balancing
(A) Word processing software
(C) Journalizing
(B) Spreadsheet software
(D) Adjusting
(C) Presentation software

(D) Accounting software 27. Which of the following statements about

a ledger is true ?
24. How can computer applications enhance
(A) It is also known as the book of
data security in financial accounting ?
original entry.
(A) By eliminating the need for backup
(B) It is used to record only the
procedures
summary totals of financial
(B) By allowing access to financial transactions.
data from any location
(C) It provides a chronological record
(C) By implementing encryption and of financial transactions.
password protection (D) It contains separate accounts for
(D) By reducing the need for user each category of assets, liabilities,
authentication equity, revenue, and expenses.

BCA-204(N) (6) Set-A

28. Which type of account is typically found 31. The primary purpose of a trial balance is
in the general ledger ? to :

(A) Sales account (A) Identify errors and correct them

(B) Cash account before financial statements are
(C) Purchase account prepared
(D) Retained earnings account (B) Determine the closing entries

29. In a ledger, debits and credits are required at the end of an

recorded on which sides of the account, accounting period

respectively ? (C) Calculate the balance of retained

(A) Debits on the left, credits on the earnings
right (D) Determine the net profit or loss for
(B) Debits on the right, credits on the the period
left
32. Which of the following statements about
(C) Debits on the top, credits on the
a trial balance is true ?
bottom

(D) Debits on the bottom, credits on the (A) A trial balance ensures that all

top accounts have been closed

properly.
30. A trial balance is prepared to :
(B) A trial balance guarantees that
(A) Determine the net income or loss
financial statements will be error-
of a business
free.
(B) Verify the accuracy of the
accounting records (C) A trial balance ensures that debits

equal credits in the ledger

(C) Calculate the tax liability of a
company accounts.

(D) Determine the financial position of (D) A trial balance is prepared at the

a company end of the accounting period.

BCA-204(N) (7) Set-A

33. If a trial balance doesn’t balance, it 36. Which of the following items would
indicates that : typically be included in the expenses

(A) There are no errors in the section of a Profit and Loss Account ?

accounting records. (A) Accounts receivable

(B) There may be errors in the (B) Sales revenue

accounting records. (C) Rent expense

(C) The financial statements cannot be (D) Share capital

prepared. 37. Gross profit is calculated as :

(D) The trial balance is not necessary
(A) Total revenue minus total expenses
for small businesses.
(B) Net profit plus operating expenses
34. Which of the following errors will cause (C) Sales revenue minus cost of goods
a trial balance to be imbalanced ? sold

(A) Omission of a transaction from the (D) Total assets minus total liabilities

journal and ledger 38. Which of the following is true regarding

(B) Recording a transaction in the the format of a Profit and Loss Account ?
wrong account (A) Expenses are listed before revenues
(C) Incorrectly totaling the debits and (B) Revenues are listed before
credits of an account expenses
(D) All of the above (C) Assets are listed before liabilities

35. The Profit and Loss Account is prepared (D) Liabilities are listed before assets

to determine : 39. Which financial statement is commonly

(A) The net worth of the business prepared first, before the Profit and Loss
(B) The financial position of the Account ?

business (A) Balance Sheet

(C) The profitability of the business for (B) Cash Flow Statement
a specific period (C) Statement of Retained Earnings
(D) The liquidity of the business (D) Trial Balance

BCA-204(N) (8) Set-A

40. The Balance Sheet provides information 43. Which of the following is true regarding
about : the format of a Balance Sheet ?
(A) Liabilities are listed before assets.
(A) Revenues and expenses of a
(B) Assets are listed before liabilities.
business
(C) Current assets are listed before
(B) Cash inflows and outflows of a non-current assets.
business (D) Non-current liabilities are listed

(C) The financial position of a business before current liabilities.

at a specific point in time 44. Which financial statement is commonly

(D) The profitability of a business for a prepared first, before the Balance Sheet ?
(A) Income Statement
specific period
(B) Cash Flow Statement
41. Which of the following is a liability that (C) Statement of Retained Earnings
is typically included in the Balance (D) Trial Balance

Sheet ? 45. The quick ratio is a measure of a

(A) Accounts receivable company’s :

(A) Liquidity
(B) Prepaid expenses
(B) Profitability
(C) Long-term loans
(C) Efficiency
(D) Inventory (D) Solvency

42. The formula for calculating total assets in 46. The debt-to-equity ratio measures :
a Balance Sheet is : (A) The profitability of a company
(B) The liquidity of a company
(A) Total assets = Total liabilities –
(C) The solvency of a company
Owner’s equity
(D) The efficiency of a company
(B) Total assets = Current assets –
47. The inventory turnover ratio is used to
Current liabilities
assess a company’s :
(C) Total assets = Owner’s equity +
(A) Profitability
Total liabilities
(B) Liquidity
(D) Total assets = Total liabilities + (C) Efficiency
Owner’s equity (D) Solvency

BCA-204(N) (9) Set-A

48. Fund flow analysis is used to analyze 51. The primary objective of fund flow
analysis is to :
the :
(A) Determine the profitability of a
(A) Profitability of a company
company
(B) Liquidity position of a company (B) Assess the solvency of a company

(C) Sources and uses of funds over a (C) Identify the sources and
applications of funds
period of time
(D) Evaluate the efficiency of a
(D) Debt structure of a company company’s operations

49. A positive net increase in working capital 52. In a Fund Flow Statement, a positive
value in the “Sources of Funds” section
indicates that :
indicates :
(A) The company’s liquidity has (A) Cash inflow from financing

improved activities
(B) Cash outflow from operating
(B) The company’s profitability has
activities
improved
(C) Cash inflow from investing
(C) The company’s debt has increased activities
(D) Cash inflow from operating
(D) The company’s cash flow has
activities
decreased
53. Which of the following items is
50. In fund flow analysis, sources of funds considered a use of funds in a Fund Flow
Statement ?
include :
(A) Proceeds from the sale of fixed
(A) Payment of dividends assets

(B) Increase in long-term debt (B) Increase in accounts payable

(C) Payment of dividends to
(C) Purchase of fixed assets
shareholders
(D) Increase in accounts payable
(D) Decrease in long-term debt

BCA-204(N) ( 10 ) Set-A
54. Cash flow from operating activities 57. Cash flow from operating activities
includes : includes :

(A) Cash inflows from the sale of (A) Cash inflows from the sale of long-
term investments
investments
(B) Cash inflows from the issuance of
(B) Cash inflows from borrowing
common stock
(C) Cash inflows from the sale of fixed (C) Cash inflows from the sale of
assets inventory
(D) Cash inflows from sales revenue (D) Cash inflows from the repayment
of long-term debt
55. Which of the following items is
58. Which of the following items is
considered a financing cash flow in the
considered a financing cash flow in the
Cash Flow Statement ?
Cash Flow Statement ?
(A) Cash inflows from the sale of
(A) Cash inflows from the purchase of
investments property, plant, and equipment
(B) Cash inflows from the issuance of (B) Cash inflows from the issuance of
common stock bonds payable

(C) Cash inflows from the purchase of (C) Cash inflows from the payment of
dividends
inventory
(D) Cash inflows from the sale of
(D) Cash inflows from the sale of fixed
marketable securities
assets
59. Break-even analysis is a tool used to
56. The Cash Flow Statement is prepared to determine :
provide information about : (A) The point where a business starts
(A) The profitability of a company making a profit

(B) The liquidity of a company (B) The total revenue generated by a

business
(C) The financial position of a
(C) The optimal pricing strategy for a
company
product or service
(D) The sources and uses of cash by a
(D) The fixed costs incurred by a
company business

BCA-204(N) ( 11 ) Set-A
60. The break-even point is calculated by 63. The process of assessing and managing

dividing : the financial risks faced by a company is

(A) Fixed costs by variable costs per known as :

unit (A) Financial analysis

(B) Fixed costs by total revenue (B) Financial forecasting

(C) Variable costs per unit by total (C) Financial planning

revenue (D) Risk management

(D) Total revenue by total costs 64. The term “working capital” refers to :

61. The margin of safety in break-even (A) The funds invested in long-term

assets
analysis represents :
(B) The difference between current
(A) The excess of sales revenue over
assets and current liabilities
the break-even point
(C) The funds borrowed from financial
(B) The difference between fixed costs
institutions
and variable costs
(D) The profits generated by a
(C) The profit generated by the
company
business
65. The cost of capital is the :
(D) The level of sales necessary to

cover all costs (A) interest rate on a loan obtained by a

company
62. The primary goal of financial
(B) Total expenses incurred by a
management in a business is to :
company
(A) Maximize shareholder wealth
(C) Rate of return required by investors
(B) Maximize revenue generation to invest in a company
(C) Minimize expenses (D) Total market value of a company’s
(D) Minimize risk shares

BCA-204(N) ( 12 ) Set-A
66. Financial leverage refers to a 70. The capital structure decision involves
company’s :
determining :
(A) Ability to generate profits from its
(A) The amount of working capital
operations
(B) Ability to borrow funds at a low needed by a company
interest rate
(B) The optimal level of debt a
(C) Use of debt to finance its
operations and investments company should have
(D) Ability to meet its short-term
(C) The number of shareholders in a
obligations
company
67. Which of the following is an example of
an external source of long-term finance ? (D) The pricing strategy for a
(A) Retained earnings
company’s products or services
(B) Trade credit
(C) Venture capital 71. The term “leverage’ in capital structure

(D) Bank overdraft refers to :

68. Bonds and debentures are examples of :

(A) The ability of a company to meet
(A) Equity financing
its short-term obligations
(B) Short-term loans
(C) Trade credit (B) The use of debt financing by a
(D) Debt financing
company
69. Which of the following is a characteristic
of long-term loans ? (C) The ability of a company to

(A) Repayment within one year generate profits from its

(B) Higher interest rates compared to
operations
short-term loans
(C) Flexibility in repayment terms (D) The profitability of a company’s
(D) Typically secured by short-term
investments
assets

BCA-204(N) ( 13 ) Set-A
72. The term “capital structure’ refers to : 75. The cost of debt is typically measured

(A) The total assets owned by a using :

company (A) Weighted Average Cost of Capital
(B) The mix of debt and equity (WACC)
financing used by a company (B) Dividend Discount Model (DDM)
(C) The profitability of a company’s
(C) Capital Asset Pricing Model
operations
(CAPM)
(D) The ability of a company to
(D) Yield to Maturity (YTM)
generate cash flows
76. The cost of equity is generally estimated
73. Which of the following is an example of
using :
an implicit cost ?

(A) Rent paid for office space (A) Net Present Value (NPV)

(B) Wages paid to employees calculation

(C) Interest paid on a bank loan (B) Cost of Debt divided by Equity

(D) Foregone salary when starting your Multiplier

own business (C) Dividend Growth Model (DGM)

(D) Internal Rate of Return (IRR)
74. The difference between explicit and
analysis
implicit costs is that :

(A) Explicit costs are incurred by all 77. The Weighted Average Cost of Capital
businesses, while implicit costs are (WACC) is computed as the weighted
specific to certain industries average of the :
(B) Explicit costs are monetary
(A) Cost of equity and cost of debt
expenses, while implicit costs are
(B) Cost of equity and cost of retained
non-monetary opportunity costs
earnings
(C) Explicit costs are incurred by
(C) Cost of equity, cost of debt, and
established businesses, while
implicit costs are incurred by cost of preferred stock

startups (D) Cost of equity, cost of debt, cost of

(D) Explicit costs are tax-deductible, preferred stock, and cost of internal
while implicit costs are not equity

BCA-204(N) ( 14 ) Set-A
78. The cost of debt is typically calculated 81. Which of the following is considered a
as :
current liability in working capital
(A) The interest rate on the most recent
management ?
loan obtained by the company
(B) The weighted average interest rate (A) Long-term debt

of all outstanding debt (B) Accounts payable

(C) The coupon rate of a company’s
(C) Property, plant, and equipment
bonds
(D) Retained earnings
(D) The current market value of the
company’s debt
82. An increase in working capital can be
79. Which of the following factors affects
achieved by :
the cost of debt ?
(A) Increasing accounts payable
(A) The company’s credit rating

(B) The maturity date of the debt (B) Decreasing accounts receivable

(C) The company’s industry sector (C) Decreasing inventory levels

(D) The dividend payments made by
(D) Decreasing short-term borrowing
the company

83. The cash conversion cycle measures :

80. The cost of debt is typically expressed
as : (A) The time it takes to collect

(A) A percentage of the company’s

accounts receivable
total assets
(B) The time it takes to pay accounts
(B) A percentage of the company’s
total revenue payable

(C) A percentage of the company’s net (C) The time it takes to convert
income
inventory into cash
(D) A percentage above the risk-free
(D) All of the above
rate

BCA-204(N) ( 15 ) Set-A
84. Working capital management aims 87. Which of the following ratios is used to

to : measure a company’s liquidity ?

(A) Minimize profitability (A) Return on Equity (ROE)

(B) Current Ratio

(B) Maximize long-term debt
(C) Gross Profit Margin
(C) Minimize cash flow
(D) Debt-to-Equity Ratio
(D) Optimize the balance between

88. Profitability refers to a company’s ability

liquidity and profitability
to :
85. Working capital is defined as :
(A) Generate revenue from its
(A) The total assets of a company operations

(B) The total liabilities of a company (B) Meet its long-term obligations

(C) The difference between current (C) Maximize shareholder wealth

assets and current liabilities (D) Minimize risk

(D) The amount of cash held by a 89. The Net Profit Margin is calculated

company as :

(A) Net Profit divided by Total

86. Liquidity refers to a company’s ability
Revenue
to :
(B) Gross Profit divided by Total
(A) Generate profits from its operations
Revenue
(B) Meet its short-term obligations
(C) Net Profit divided by Total Assets
(C) Maximize shareholder wealth
(D) Gross Profit divided by Total

(D) Minimize expenses Equity

BCA-204(N) ( 16 ) Set-A
90. The relationship between liquidity and 93. Cash forecasting is a tool used in cash
profitability is : management to :

(A) Inverse, meaning that higher (A) Determine the optimal level of cash

liquidity leads to lower profitability to hold

(B) Identify potential cash inflows and
(B) Direct, meaning that higher
outflows
liquidity leads to higher
(C) Assess the profitability of cash
profitability
investments
(C) Unrelated, as they are independent
(D) Minimize the risk of cash shortages
of each other

(D) Cyclical, with liquidity and 94. A cash budget is a financial plan that

profitability fluctuating together outlines :

(A) The company’s overall financial

91. Which of the following is a cash
performance
management technique used to accelerate
(B) The company’s investment
cash inflows ?
portfolio
(A) Delaying payments to suppliers (C) The company’s cash inflows and
(B) Offering cash discounts to outflows over a specific period
customers (D) The company’s capital structure

(C) Increasing accounts payable 95. Economic Order Quantity (EOQ) is a

(D) Decreasing accounts receivable model used in inventory management to
turnover determine :

(A) The optimal reorder point for

92. The objective of cash management is to
inventory
maintain a balance between :
(B) The minimum level of safety stock
(A) Cash inflows and outflows
required
(B) Liquidity and profitability
(C) The optimal order quantity that
(C) Cash and non-cash assets minimizes total inventory costs
(D) Short-term and long-term (D) The maximum level of stock that
investments can be stored in a warehouse

BCA-204(N) ( 17 ) Set-A
96. ABC analysis categorizes inventory 99. The credit policy of a company outlines :
items based on :
(A) The procedure for collecting
(A) Their sales volume
(B) Their unit cost accounts payable
(C) Their lead time
(B) The procedure for assessing credit
(D) Their contribution to total
inventory value worthiness of potential customers

97. The purpose of safety stock in inventory (C) The procedure for handling
management is to :
inventory management
(A) Ensure sufficient stock is available
during peak demand periods (D) The procedure for monitoring cash

(B) Minimize the risk of stockouts due flow

to unexpected fluctuations in
demand or supply 100. The primary objective of a conservative
(C) Reduce the carrying costs
working capital policy is to :
associated with excess inventory
(D) Maximize the utilization of (A) Maximize profitability by
warehouse space
minimizing cash conversion cycle
98. A company uses the average collection
(B) Minimize the risk of liquidity
period to evaluate its receivable
management. Which of the following shortages by maintaining high
formule correctly calculates the average levels of current assets
collection period ?
(C) Minimize borrowing costs by
(A) 365 days divided by the accounts
receivable turnover ratio relying on long-term financing
(B) Accounts receivable turnover ratio
sources
divided by 365 days
(C) Accounts receivable turnover ratio (D) Maximize the return on investment
multiplied by 365 days by optimizing the utilization of
(D) Accounts receivable multiplied by
working capital
365 days

BCA-204(N) ( 18 ) Set-A
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be read carefully. lko/kkuhiwoZd i<+ fy;k tk;sA
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candidates should leave the examination hall viuh OMR Answer Sheet miyC/k djkus ds ckn
only after providing their OMR Answer gh ijh{kk d{k ls izLFkku djsaA ijh{kkFkhZ vius lkFk
Sheet to the invigilator. Candidate can carry
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blank pages provided for the purpose in the
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pager and cellular phone in examination hall Qksu ys tkuk rFkk mldk mi;ksx djuk oftZr gSA
is prohibited.
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and Hindi version of the question, the n’kk esa iz’u dk vaxst
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English version of the question will be held
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discrepancy in the question Booklet, then
after showing it to the invigilator, get
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another question Booklet of the same series. dj ysaA
 Paper Code Á’uiqfLrdk Øekad
Question Booklet No.
Roll No.----------------------
3 6 8
(To be filled in the
OMR Sheet)

O.M.R. Serial No. Á’uiqfLrdk lhjht

Question Booklet Series
A
BCA (Second Semester) Examination, July-2022
BCA-204(N)
Financial Accounting & Management
(B.P.)
Time : 1:30 Hours Maximum Marks-100

tc rd dgk u tk;] bl Á’uiqfLrdk dks u [kksysa

funsZ’k % & 1. ijh{kkFkhZ vius vuqØekad] fo”k; ,oa Á’uiqfLrdk dh lhjht dk fooj.k ;FkkLFkku lgh& lgh Hkjsa]
vU;Fkk ewY;akdu esa fdlh Hkh Ádkj dh folaxfr dh n’kk esa mldh ftEesnkjh Lo;a ijh{kkFkhZ dh gksxhA
2. bl Á’uiqfLrdk esa 100 Á’u gSa] ftues ls dsoy 75 Á’uksa ds mRrj ijh{kkfFkZ;ksa }kjk fn;s tkus gSA
ÁR;sd Á’u ds pkj oSdfYid mRrj Á’u ds uhps fn;s x;s gSaA bu pkjksa esa ls dsoy ,d gh mRrj
lgh gSA ftl mRrj dks vki lgh ;k lcls mfpr le>rs gSa] vius mRrj i=d (O.M.R.
ANSWER SHEET) esa mlds v{kj okys o`Rr dks dkys ;k uhys cky IokabV isu ls iwjk Hkj nsaA
;fn fdlh ijh{kkFkhZ }kjk fdlh iz’u dk ,d ls vf/kd mŸkj fn;k tkrk gS] rks mls xyr mŸkj ekuk
K-368

tk;sxkA
3. ÁR;sd Á’u ds vad leku gSaA vki ds ftrus mRrj lgh gksaxs] mUgha ds vuqlkj vad Ánku fd;s
tk;saxsA
4. lHkh mRrj dsoy vksŒ,eŒvkjŒ mRrj i=d (O.M.R. ANSWER SHEET) ij gh fn;s tkus
gSaA mRrj i=d esa fu/kkZfjr LFkku ds vykok vU;= dgha ij fn;k x;k mRrj ekU; ugha gksxkA
5. vksŒ,eŒvkjŒ mRrj i=d (O.M.R. ANSWER SHEET) ij dqN Hkh fy[kus ls iwoZ mlesa fn;s
x;s lHkh vuqns’kksa dks lko/kkuhiwoZd i<+ fy;k tk;A
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gh ijh{kk d{k ls ÁLFkku djsaA
7. fuxsfVo ekfdZax ugha gSA
egRoiw.kZ % & Á’uiqfLrdk [kksyus ij ÁFker% tkWp dj ns[k ysa fd Á’uiqfLrdk ds lHkh i`”B HkyhHkkWfr Nis gq, gSaA ;fn
Á’uiqfLrdk esa dksbZ deh gks] rks d{k fujh{kd dks fn[kkdj mlh lhjht dh nwljh Á’uiqfLrdk ÁkIr dj ysaA
Series-A BCA 204(N) / K-368 Page - 2
1. Accounting is Commonly treated as a language of Business:
(A) True
(B) False
(C) Partial True
(D) None of the above
2. According to going concern concept, a Business organization is assumed to have:
(A) A Indefinite life
(B) A Short life
(C) A Very Short life
(D) A Definite life
3. According to cost concept the Assets are always valued at:
(A) Market price
(B) Purchase price
(C) Current price
(D) Future price
4. A Person who owes money to a business against sale of Goods is Called:
(A) Creditor
(B) Debtor
(C) (A) & (B) Both
(D) None of the above
5. A liability arises because of:
(A) Cash Transaction
(B) Credit Transaction
(C) Both (A) & (B)
(D) None of the above
6. The expenditure Incurred on acquiring fixed Assets is called:
(A) Revenue Expenditure
(B) Capital Expenditure
(C) Revenue Receipt
(D) Capital Receipts

Series-A BCA 204(N) / K-368 Page - 3

7. Which is not a capital expenditure?
(A) Building
(B) Laptop
(C) Salaries
(D) Plant
8. Mr. xyz ltd Sale goods to abc and Received Rs 50,000 which kind of Receipt is
this:
(A) Revenue Receipts
(B) Capital Receipts
(C) Both (A) & (B)
(D) None of the above
9. Interest on loan paid by a Business is an example of:
(A) Deferred Expenses
(B) Revenue Expenses
(C) Capital Expenses
(D) None of the above
10. Amount Invested by the owner in the business should be credit to:
(A) Cash
(B) Capital
(C) Drawing
(D) None of the above
11. Transaction are first Recorded in which book/Account:
(A) Book of Original Entry
(B) Book of Secondary Entry
(C) Book of Final Entry
(D) T Accounts
12. Goods returned by the Customer will be debited to which Account:
(A) Sales A/C
(B) Purchase A/C
(C) Purchase Return
(D) Sales Return

Series-A BCA 204(N) / K-368 Page - 4

13. Journal lists transactions in ________ order.
(A) Chronological
(B) Decreasing
(C) Alphabetical
(D) Increasing
14. The proprietor withdraws cash Rs. 50,000 for his personal use the account to be
debited:
(A) Capital A/C
(B) Loan A/C of proprietor
(C) Drawings A/C
(D) Expenses A/C
15. Sold Goods to xyz for Rs. 24,000, allowed him 10% Trade discount and 10% cash
discount Half the payment was Received at the time of sale, what is the amount of
cash Received at the time of sale?
(A) 9,720
(B) 1,080
(C) 11,880
(D) 10,820
16. Goods worth Rs. 5,000 Given as charity (Sales price 6,000). What amount would
be debited to charity Account?
(A) 5,000
(B) 6,000
(C) 11,000
(D) 10,000
17. While passing an opening entry all the assets are ________while all the liabilities
are _________.
(A) Debited, Credited
(B) Credited, Credited
(C) Credited, Debited
(D) None of the above

Series-A BCA 204(N) / K-368 Page - 5

18. What account will be debited if cheque received from a debtor and not deposited in
to bank the same day?
(A) Cash A/C
(B) Debtors A/C
(C) Bank A/C
(D) None of the above
19. In journal the ledge folio column is used to:
(A) Record the number of ledger account to which information is posted
(B) Record the number of amounts posted to the ledger account
(C) Record the page number of the ledger Account
(D) None of the above
20. When one account is debited and more than one account is credited such type of
entries are called:
(A) Compounding Entry
(B) Compound Entry
(C) Single Entry
(D) Singular Entry
21. Establishment expenses of new machine will be debited in:
(A) Expenses Account
(B) Machine Account
(C) Profit and loss Account
(D) None of the above
22. Double Entry system was introduced in:
(A) America
(B) Japan
(C) India
(D) Italy

Series-A BCA 204(N) / K-368 Page - 6

23. Which of the following is not an approach to the capital structure?
(A) Gross profit Approach
(B) Net Operating Income Approach
(C) Net Income Approach
(D) Modigliani-Miller Approach
24. What factor are considered while planning the capital structure of corporate?
(A) Trading on Equity
(B) Capital Market Conditions
(C) Cost of financing
(D) All of the above
25. Capital structure refers to _______ in the total capital.
(A) Long-term debts and equity
(B) Short-term debts and equity
(C) Short-term debts and owner’s equity
(D) None of the above
26. Capital structure ________ financial structure.
(A) Is a part of
(B) Is not a part of
(C) Is the same as
(D) Is different from
27. ________ stands for the ratio between the various kinds of securities to the total
capitalization.
(A) Capital Gearing
(B) Capital Market
(C) Cost of Capital
(D) None of the above

Series-A BCA 204(N) / K-368 Page - 7

28. In the concept of Capital gearing A firm is said to be highly geared when:
(A) Ownership Capital > Creditorship Capital
(B) Ownership Capital < Creditorship Capital
(C) Ownership Capital = Creditorship Capital
(D) None of the above
29. When profit on sale of a fixed asset is Rs. 8,000 and net profit is Rs. 48,000, what
is the fund from operation?
(A) 40,000
(B) 44,000
(C) 48,000
(D) None of the above
30. Fund flow statement is prepared on the basis of:
(A) The balance sheet of previous and current year
(B) Profit and loss A/C of current year
(C) None of the above
(D) Both (A) & (B)
31. The statement prepared while conducting fund flow analysis is called:
(A) Fund flow statement
(B) Schedule of changes in working Capital
(C) Both (A) & (B)
(D) None of the above
32. Fund flow statement is based on the concept of:
(A) Matching Concept
(B) Accrual Concept
(C) Going Concern
(D) Accounting period

Series-A BCA 204(N) / K-368 Page - 8

33. Fund flow statement is used for:
(A) Human Resource Analysis
(B) Controlling Cost
(C) Financial Analysis
(D) All of the above
34. Which of the following is not a fund out flow for the firm?
(A) Depreciation
(B) Dividends
(C) Interest payments
(D) Taxes
35. Cash flow means:
(A) Movement of cash in and out of the business
(B) Movement of cash out of the business
(C) Movement of cash inside the business
(D) None of the above
36. Cash flow statement estimates the ________ by a firm in a presented time.
(A) Cash produced
(B) Cash used
(C) Profit & loss Account
(D) Both (A) & (B)
37. Which item comes under financial activity in cash flow?
(A) Issue of Preference Share
(B) Interest Paid on Borrowings
(C) HR Accounting
(D) Both (A) & (B)
38. Cash payment to employees is a cash flow from:
(A) Finance Activities
(B) Operating Activities
(C) Investing Activities
(D) All of the above

Series-A BCA 204(N) / K-368 Page - 9

39. Purchase of laud & Building is a cash flow from:
(A) Investing Activities
(B) Financial Activities
(C) Operating Activities
(D) None of the above
40. Break Even point is the point of:
(A) Zero profit and zero loss
(B) High profit or High loss
(C) Low profit or low loss
(D) None of the above
41. Break Even Analysis explain the Relationship between:
(A) Cost, volume of sales, profit
(B) Cost, volume of purchase, profit
(C) Cost, volume of sales, loss
(D) Cost, volume of purchase, loss
42. Break-even point can be calculated in the follows way:
(A) B. E. P in Units
(B) B. E. P in Rupees
(C) B. E. P in Capacity
(D) All of the above
43. Motive of holding cash:
(A) Transaction
(B) Precautionary
(C) Compensation
(D) All of the above
44. Payment of dividend should be done within _______ days of its declaration.
(A) 30
(B) 45
(C) 42
(D) 90

Series-A BCA 204(N) / K-368 Page - 10

45. Financial leverage is called synonym to:
(A) Trading on Equity
(B) Trading on Capital
(C) Trading on Credit
(D) Trading on fixed cost
46. The Capital contributed by the share holders is known as:
(A) Borrowed Capital
(B) Owned Capital
(C) Both of them
(D) None of them
47. Fund needed for acquiring fixed Assets are known as:
(A) Short term finance
(B) Long term finance
(C) Medium term finance
(D) None of the above
48. Distribution of dividend be done out of:
(A) Capital
(B) Interest
(C) Profits
(D) Debentures
49. Preference shares which guarantee a fixed rate of dividend is known as:
(A) Cumulative preference shares
(B) Non-Cumulative preference shares
(C) Participating preference shares
(D) None of the above
50. The Capital contributed by equity share holders in business is called:
(A) Venture Capital
(B) Debenture Capital
(C) Both (A) & (B)
(D) None of the above

Series-A BCA 204(N) / K-368 Page - 11

51. Ploughing back of profit is also known as:
(A) Self financing
(B) Equity financing
(C) Reserve financing
(D) None of the above
52. Debenture is a:
(A) White paper
(B) Promissory note
(C) Voting paper
(D) All of the above
53. Debenture holders are known as the _______ of the company.
(A) Debtors
(B) Owners
(C) Creditors
(D) Partners
54. Book keeping means:
(A) Keeping of Books
(B) Keeping the books in library
(C) Keeping the Account in Almirah
(D) Recording of Business Transactions in a set of Books
55. Kinds of Accounting are:
(A) Financial Accounting
(B) Cost Accounting
(C) Management Accounting
(D) All of the above
56. Amount withdrawn by a businessman for personal use is:
(A) Cash
(B) Expenses
(C) Drawings
(D) Loss

Series-A BCA 204(N) / K-368 Page - 12

57. Intangible Asset is:
(A) Good will
(B) Patent
(C) Building
(D) (A) & (B) Only
58. XYZ Ltd follows the written down value method of depreciating Building year
after year due to:
(A) Convenience
(B) Consistency
(C) Comparability
(D) None of the above
59. Accounting standard’s:
(A) Improve the reliability of financial statements
(B) Ensure uniformity in the preperation of financial statements
(C) Harmonies accounting policies
(D) All of the above
60. When accounting standard board has been constitute:
(A) 21 Feb 1977
(B) 21 Jan 1977
(C) 19 Apr 1977
(D) 21 Apr 1977
61. Which Accounting standard deals with the accounting for government grants?
(A) AS - 12
(B) AS - 13
(C) AS - 14
(D) AS - 15
62. What is accounting equation?
(A) Assets = Capital + Liability
(B) Assets = Liabilities – Capital
(C) Capital = Assets + Liability
(D) None of the above

Series-A BCA 204(N) / K-368 Page - 13

63. Which among the following component is calculated as the sum of the fixed cost
that happen each time an item is ordered?
(A) Carrying cost
(B) Order cost
(C) Holding cost
(D) Storing cost
64. Which Technique applied for Inventory Management?
(A) Economic order Quantity
(B) Just - in - time
(C) Inventory Ratio
(D) All of the above
65. The objective of credit sales by firm is:
(A) Attaining growth in sales
(B) Enhancing profit
(C) Facing competition
(D) All of the above
66. The closing stock is appeared in:
(A) Balance sheet
(B) Trading A/C
(C) Both (A) & (B)
(D) None of the above
67. Depreciation is provided on:
(A) Fixed Assets
(B) Current Assets
(C) Both (A) & (B)
(D) None of the above

Series-A BCA 204(N) / K-368 Page - 14

68. Provision for doubtful debts gives in the credit side of the trial balance is known as
an:
(A) Old provision
(B) New provision
(C) Doubtful provision
(D) None of the above
69. At the Beginning of the Accounting year a firm has assets worth 25,000, liabilities
5,000 and 1,800 as the debit balance the Income and expenditure account. The
opening capital is:
(A) 21,800
(B) 15,800
(C) 11,200
(D) 31,800
70. Drawings are deducted from:
(A) Sales
(B) Purchase
(C) Return outward
(D) Capital
71. Which of the following is debited to Trading Account:
(A) Sales
(B) Closing stock
(C) Salaries & wages
(D) Wages & salaries
72. Which error will discovered by the preparation of Trial Balance?
(A) Wrong totalling of debit & credit amount
(B) Wrong posting
(C) Both (A) & (B)
(D) None of these

Series-A BCA 204(N) / K-368 Page - 15

73. What shall be the amount of capital If Cash is ₹10,000 fixed Assets ₹ 1,20,000,
stock of ₹ 60,000 and creditors ₹ 60,000?
(A) ₹ 1,30,000
(B) ₹ 1,90,000
(C) ₹ 2,40,000
(D) ₹ 2,50,000
74. A Trial balance is:
(A) A Book
(B) A Statement
(C) Chapter
(D) None of the above
75. Which regulatory body regulate securities and commodity market in India?
(A) SEBI
(B) IRDA
(C) Reserve bank of India
(D) None of the above
76. Which is the type of leverage?
(A) Operating leverage
(B) Financial leverage
(C) Cost leverage
(D) Both (A) & (B)
77. A Newly established company cannot be successful in Raising fund by:
(A) Issue of equity share
(B) Issue of preference share
(C) Issue of debentures
(D) None of the above

Series-A BCA 204(N) / K-368 Page - 16

78. Discount Received Account will always have:
(A) Credit Balance
(B) Debit Balance
(C) No Balance
(D) None of the above
79. What type of following Accounts will have the debit balance only?
(A) Real Account
(B) Personal Account
(C) Nominal Account
(D) All of the above
80. Ledger is a book in which:
(A) Real & Nominal Account are Included
(B) Only Real Account are Included
(C) Real personal and Nominal Accounts are Included
(D) No Account are Included
81. The size of Account Receivables depends on:
(A) Sales level
(B) Credit policies
(C) Credit period
(D) All the above
82. The cost Involved in maintaining account Receivable is:
(A) Cost of Capital
(B) Cost of Collection
(C) Both (A) & (B)
(D) None of the above
83. To Goal of Receivable Management is to maximize the value of the firm by
achieving Trade off between:
(A) Risk and profitability
(B) Liquidity & profitability
(C) Return & Liquidity
(D) None of the above

Series-A BCA 204(N) / K-368 Page - 17

84. The payment to a creditor will:

(A) Decrease in Asset and decrease in liability

(B) Increase an Asset and Increase in liability

(C) Increase one Asset and decrease another

(D) None of these

85. A Ledger is called the book of:

(A) Original Entry

(B) Secondary Entry

(C) Both (A) & (B)

(D) None of the above

86. Transfer of entry from journal to ledger is called:

(A) Posting

(B) Journalizing

(C) Balancing

(D) None of the above

87. Which of the following has an Implicit Cost of capital?

(A) Equity share capital
(B) Debentures
(C) Retained Earning
(D) All of the above
88. Cost of Capital highest in case of:
(A) Equity
(B) Debentures
(C) Retained earning
(D) Fixed deposits
Series-A BCA 204(N) / K-368 Page - 18
89. Cash balance ₹ 15,000; Trade Receivable ₹ 70,000 Inventory ₹ 95,000; Trade
payables ͅ₹ 24,000 and Bank overdraft is ₹ 6,000 current Ratio will be:
(A) 1 : 3
(B) 1 : 3.75
(C) 3.75 : 1
(D) 3 : 1
90. Inventory Ratio is the Relationship between:
(A) Cost of goods sold & cost of average Inventory
(B) Current Assets & Current liabilities
(C) Both (A) & (B)
(D) None of the above
91. The basic measure of liquidity are:
(A) Current Ratio and Quick Ratio
(B) Gross profit ratio and operating Ratio
(C) Inventory turnover and Current Ratio
(D) None of the above
92. Generally Ideal Ratio for debt to equity ratio is:
(A) 2 : 1
(B) 1 : 1
(C) 1 : 2
(D) 1 : 75
93. Working capital is expressed by:
(A) Current Assets – Current liabilities
(B) Current Assets + Current liabilities
(C) Current Assets = Current liabilities
(D) None of the above

Series-A BCA 204(N) / K-368 Page - 19

94. Which one of the following emphasises the Qualitative aspect of working capital ?

(A) Gross working capital

(B) Quick working capital

(C) Net working capital

(D) None of the above

95. Which of the following factors affect the working capital requirement of a Business

unit ?

(A) Nature of Business

(B) Credit policy

(C) Production policy

(D) All of the above

96. Net working capital will be called positive working capital when:

(A) Current Assets > Current Liabilities

(B) Current Assets < Current Liabilities

(C) Current Assets = Current Liabilities

(D) None of the above

97. Working Capital Management is concerned with:

(A) Raising fund for day to day operation

(B) Planning the total Investment is Current Assets

(C) Both (A) & (B)

(D) None of the above

Series-A BCA 204(N) / K-368 Page - 20

98. The Balance sheet of the firm shows:

(A) Financial position of the firm

(B) Profit & loss of the firm

(C) Sale of goods of the firm

(D) None of the above

99. Balancing of Accounts are also known as:

(A) Closing of Account

(B) Opening of Account

(C) End of Account

(D) None of the above

100. An explicit cost is a _______ made to others in the course of running a Business.

(A) Direct Payment

(B) Indirect Payment

(C) Both (A) & (B)

(D) No actual Payment

******

Series-A BCA 204(N) / K-368 Page - 21

 Rough Work / jQ dk;Z

Series-A BCA 204(N) / K-368 Page - 22

 Rough Work / jQ dk;Z

Series-A BCA 204(N) / K-368 Page - 23

 DO NOT OPEN THE QUESTION BOOKLET UNTIL ASKED TO DO SO

1. Examinee should enter his / her roll number, subject and Question Booklet
Series correctly in the O.M.R. sheet, the examinee will be responsible for
the error he / she has made.
2. This Question Booklet contains 100 questions, out of which only 75
Question are to be Answered by the examinee. Every question has 4
options and only one of them is correct. The answer which seems
correct to you, darken that option number in your Answer Booklet
(O.M.R ANSWER SHEET) completely with black or blue ball point
pen. If any examinee will mark more than one answer of a particular
question, then the answer will be marked as wrong.
3. Every question has same marks. Every question you attempt correctly,
marks will be given according to that.
4. Every answer should be marked only on Answer Booklet (O.M.R
ANSWER SHEET). Answer marked anywhere else other than the
determined place will not be considered valid.
5. Please read all the instructions carefully before attempting anything on
Answer Booklet (O.M.R ANSWER SHEET).
6. After completion of examination, please hand over the O.M.R. SHEET to
the Examiner before leaving the examination room.
7. There is no negative marking.
Note: On opening the question booklet, first check that all the pages of the
question booklet are printed properly in case there is an issue please ask the
examiner to change the booklet of same series and get another one.

Series-A BCA 204(N) / K-368 Page - 24

 Paper Code Á’uiqfLrdk Øekad
Question Booklet No.
Roll No.----------------------
3 6 9
(To be filled in the
OMR Sheet)

O.M.R. Serial No. Á’uiqfLrdk lhjht

Question Booklet Series
D
BCA (Second Semester) Examination, July-2022
BCA-2004
Financial Accounting & Management
Time : 1:30 Hours Maximum Marks-100

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K-369

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5. vksŒ,eŒvkjŒ mRrj i=d (O.M.R. ANSWER SHEET) ij dqN Hkh fy[kus ls iwoZ mlesa fn;s
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Series-D BCA 2004 / K-369 Page - 2
1. Double entry system was introduced in:
(A) America
(B) Japan
(C) India
(D) Italy
2. Establishment expenses of new machine will be debited in:
(A) Expenses Account
(B) Machine Account
(C) Profit and Loss Account
(D) None of the above
3. When one account is debited and more than one account is credited such type of
entries are called?
(A) Compound entry
(B) Single compound entry
(C) Single entry
(D) None of the above
4. In journal the ledger folio column is used to:
(A) Record the number of ledger account to which information is posted
(B) Record the number of amounts posted to the ledger account
(C) Record the page number of the ledger account
(D) None of the above
5. What account will be debited if cheque received from a debtor and not deposited in
to bank the same day?
(A) Cash A/c
(B) Debtors A/c
(C) Bank A/c
(D) None of the above

Series-D BCA 2004 / K-369 Page - 3

6. Received cash for a bad debts written off last year Rs. 7,000. What would be the
journal entry?
(A) Cash A/c Dr. 7,000 To Bad debts recovered A/c 7,000
(B) Cash A/c Dr. 7,000 To Purchase A/c 7,000
(C) Bad debts recovered A/c 7,000 To cash A/c 7,000
(D) None of the above
7. While passing an opening entry all the assets are__________ while all the
liabilities are____________.
(A) Debited, Credited
(B) Credited, Credited
(C) Credited, Debited
(D) None of the above
8. Interest due but not received ₹5,000. Name the Account to be debited:
(A) Accrued Interest A/c
(B) Interest A/c
(C) Cash A/c
(D) Debtors A/c
9. Salaries due to Clerk ₹10,000 which Account to be debited?
(A) Clerk A/c
(B) Salary A/c
(C) Debtors A/c
(D) Cash A/c
10. Paid Income Tax ₹50,000 by cheque which Account will be debited?
(A) Income Tax A/c
(B) Drawings A/c
(C) Bank A/c
(D) Government A/c

Series-D BCA 2004 / K-369 Page - 4

11. Goods worth ₹50000 given as charity (sales price 1,00,000). What amount would
be debited to charity Account?
(A) 50,000
(B) 1,00,000
(C) 1,000
(D) None of the above
12. Suneet become insolvent and a final composition of 60 paisa in a rupee was
received out of the debt of ₹10,000. Bad debts account will be debited by:
(A) 4,000
(B) 6,000
(C) 10,000
(D) 8,000
13. Sold goods to xyz for ₹24,000 allowed him 10% Trade discount and 10% cash
discount. Half the payment was received at the time of sale. What is the amount of
cash received at the time of sale?
(A) 9,720
(B) 10,80
(C) 11,880
(D) 10,820
14. Goods returned by the customer will be debited to which Account?
(A) Sales A/c
(B) Purchase A/c
(C) Return outward
(D) Return inward
15. Transactions are first recorded in which book/Account?
(A) Book of original entry
(B) Book of secondary entry
(C) Book of final entry
(D) Accounting equation
Series-D BCA 2004 / K-369 Page - 5
16. Amount invested by the owner in the business should be credit to:
(A) Drawing
(B) Cash
(C) Capital
(D) None of the above
17. Interest on loan paid by business is an example of:
(A) Deferred expenses
(B) Revenue expenses
(C) Capital expenses
(D) None of the above
18. Mr. xyz Ltd. sale goods to abc and Received Rs. 50,000 which kind of receipt is
this:
(A) Revenue receipt
(B) Capital receipt
(C) Deferred revenue receipt
(D) Not a receipt
19. Which is not a capital expenditure?
(A) Building
(B) Laptop
(C) Salaries
(D) Wages paid for installation of machinery
20. The expenditure incurred on acquiring fixed assets is called:
(A) Revenue expenditure
(B) Capital expenditure
(C) Both (A) & (B)
(D) None of the above

Series-D BCA 2004 / K-369 Page - 6

21. A liability arises because of:
(A) Cash transaction
(B) Credit transaction
(C) Both (A) and (B)
(D) None of the above
22. A person who owes money to a business against sale of goods is called:
(A) Creditor
(B) Debtor
(C) (A) & (B) both
(D) None of the above
23. According to the cost concept the assets are always valued at:
(A) Market price
(B) Current price
(C) Purchase price
(D) None of the above
24. What is accounting equation?
(A) Assets = Capital + Liability
(B) Assets = Liabilities – Capital
(C) Capital = Assets + Liability
(D) None of the above
25. Which type of asset class include those assets which have only definite use and
become value less when the yield is over?
(A) Fixed assets
(B) Current assets
(C) Fictitious assets
(D) Wasting assets

Series-D BCA 2004 / K-369 Page - 7

26. Income taxes comes under:
(A) Ind AS 11
(B) Ind AS 12
(C) Ind AS 13
(D) Ind AS 14
27. An employee of the organization suffers an accident at work and the organization
decide to pay him Rs.1,00,000 as compensation. Should the organization pass an
entry even though it has not paid it ?
(A) Yes, because of accrual concept
(B) No, because it is not paid
(C) No, because the employee has not accepted
(D) None of the above
28. Which Accounting standard deals with the accounting for government grants?
(A) AS-12
(B) AS-13
(C) AS-14
(D) AS-15
29. When accounting standard board has been constitute?
(A) 21 Feb 1977
(B) 21 Jan 1977
(C) 19 April 1977
(D) 21 April 1977
30. Accounting standards:
(A) Improve the reliability of financial statements
(B) Ensure uniformity in the preparation of financial statements
(C) Harmonies accounting policies
(D) All of the above
Series-D BCA 2004 / K-369 Page - 8
31. Which concept is used by all accounting frame works for generating accurate and
reliable financial statements?
(A) Cost concept
(B) Matching concept
(C) Dual aspect concept
(D) None of the above
32. According to which of the following accounting concepts even the owner of a
Business is treated as Creditor to the extent of his Capital:
(A) Dual aspect concept
(B) Money measurement concept
(C) Cost concept
(D) Business entity concept
33. According to going concern concept, a business is viewed as having:
(A) A limited life
(B) A definite life
(C) An indefinite life
(D) None of the above
34. ABC ltd. Follows the written down value method of depreciating building year
after year due to:
(A) Convenience
(B) Consistency
(C) Comparability
(D) All of the above
35. Intangible asset is:
(A) Goodwill
(B) Patent
(C) Building
(D) (A) and (B) only

Series-D BCA 2004 / K-369 Page - 9

36. Amount withdrawn by a businessman for personal use is:
(A) Cash
(B) Expenses
(C) Drawings
(D) Loss
37. Kinds of Accounting are:
(A) Financial Accounting
(B) Cost Accounting
(C) Management Accounting
(D) All of the above
38. Book-Keeping means:
(A) Keeping of books
(B) Keeping of the books in library
(C) Keeping the account in Almirah
(D) Recording of business transactions in a set of books
39. “Optimum cash level is that level of cash where the carrying cost and transaction
costs are the minimum”? This statement is given by:
(A) J.L. Massie
(B) J.F. Bradley
(C) William J. Baumol
(D) None of the above
40. Debenture holders are known as the ______________ of the company.
(A) Debtors
(B) Owners
(C) Creditors
(D) partners

Series-D BCA 2004 / K-369 Page - 10

41. Debenture is a:
(A) White paper
(B) Promissory note
(C) Voting paper
(D) All of the above

42. Ploughing back of profit is also known as:

(A) Self financing
(B) Reserve financing
(C) Equity financing
(D) None of the above
43. The capital contributed by equity shareholders in business is called:
(A) Venture capital
(B) Ventura capital
(C) Both (A) and (B)
(D) None of the above
44. Preference shares which guarantee a fixed rate of dividend is known as:
(A) Cumulative preference shares
(B) Non-cumulative preference shares
(C) Participating preference shares
(D) None of the above
45. Distribution of dividend, be done out of:
(A) Capital
(B) Interest
(C) Profits
(D) Debentures
Series-D BCA 2004 / K-369 Page - 11
46. Funds needed for acquiring fixed assets are known as:
(A) Short term finance
(B) Long term finance
(C) Medium term finance
(D) None of the above
47. The capital contributed by the shareholders is known as:
(A) Borrowed capital
(B) Owned capital
(C) Both of them
(D) None of them
48. Financial leverage is called synonym to:
(A) Trading on equity
(B) Trading on capital
(C) Trading on credit
(D) Trading on fixed cost
49. Payment of dividend should be done within ____________ days of its declaration.
(A) 30 days
(B) 45 days
(C) 42 days
(D) 90 days
50. Motive of holding cash:
(A) Transaction
(B) Precautionary
(C) Compensation
(D) All of above

Series-D BCA 2004 / K-369 Page - 12

51. The closing stock is appeared in:
(A) Balance sheet + Trading Account
(B) Journal
(C) Ledger
(D) None of the above
52. Depreciation is provided on:
(A) Current Assets
(B) Intangible Assets
(C) Fixed Assets
(D) All of the above
53. Provision for doubtful debts given on the credit side of the trial balance is known as
an:
(A) Old provision
(B) New provision
(C) No provision
(D) Doubtful provision
54. Preliminary expenses are shown in the balance sheet under which head?
(A) Fixed Assets
(B) Reserve & Surplus
(C) Loan and Advances
(D) None of the above
55. At the beginning of an accounting year a club has assets worth 25,000 liabilities
5,000 and 1800 as the debit balance of the income & expenditure account. The
opening capital is:
(A) 21,800
(B) 15,800
(C) 11,200
(D) 31,800

Series-D BCA 2004 / K-369 Page - 13

56. Drawings are deducted from:
(A) Sales
(B) Purchase
(C) Return out ward
(D) Capital
57. Which of the following is debited to the trading Account?
(A) Sales
(B) Closing stock
(C) Salaries & wages
(D) Wages & salaries
58. Which error will discovered by the preparation of trial balance?
(A) Capital expenditure treated as revenue expenditure
(B) Complete omission of a transaction
(C) An incorrect amount entered twice as a debit
(D) None of the above
59. What shall be the amount of capital if cash is ₹10,000, fixed Assets ₹1,20,000,
stock ₹60,000 and creditors ₹60,000?
(A) ₹1,30,000
(B) ₹1,90,000
(C) ₹2,40,000
(D) ₹2,50,000
60. A trial balance is merely a____________ of debit & credit balances of ledger at a
particular date.
(A) Book
(B) Statement
(C) Chapter
(D) None of the above

Series-D BCA 2004 / K-369 Page - 14

61. Which regulatory body regulate securities and commodity market in India?
(A) SEBI
(B) IRDA
(C) Reserve Bank of India
(D) None of the above
62. Which is the type of leverage?
(A) Operating leverage
(B) financial leverage
(C) Cost leverage
(D) Both (A) & (B)
63. A newly established company cannot be successful in obtaining of finance by:
(A) Issue of equity capital
(B) Issue of preference share
(C) Issue of debentures
(D) None of the above
64. Discount received account will always have:
(A) Credit balance
(B) Debit balance
(C) Both (A) & (B)
(D) None of the above
65. What type of following Accounts will have the debit balance only?
(A) Real Account
(B) Personal Account
(C) Nominal Account
(D) All of the above

Series-D BCA 2004 / K-369 Page - 15

66. Ledger is a book in which?
(A) Real and Nominal Account are included
(B) Only real Accounts are included
(C) Real, personal and Nominal Accounts are included
(D) No Accounts are included
67. The payment to a creditor will:
(A) Decrease an asset and decrease a liability
(B) Increase an asset and increase in liability
(C) Increase one asset and decrease another
(D) None of these
68. In ledger, excess of debit side over credit side is called:
(A) Debit balance
(B) Credit balance
(C) Assets account
(D) Liability account
69. A ledger is called the book of:
(A) Original entry
(B) Final entry
(C) Secondary entry
(D) Both (B) & (C)
70. The process of transferring of items from a journal to their respective ledger
account is called as:
(A) Arithmetic correction
(B) Journalizing
(C) Balancing
(D) Posting

Series-D BCA 2004 / K-369 Page - 16

71. Which of the following is the correct formula to calculate the cost of debt issued at
premium or discount:
(A) Kd = (1−T)

(B) Kd = (1−T) R

(C) Kd =

(D) None of the above

72. Which of the following has an implicit cost of capital?
(A) Equity share capital
(B) Preference share capital
(C) Debentures
(D) Retained earnings
73. Cost of capital highest in case of :
(A) Equity
(B) Debentures
(C) Fixed deposits
(D) Retained earning
74. In weighted average cost of capital an organization can affect its cost of capital
through:
(A) The policy of investment
(B) The policy of capital structure
(C) The policy of dividend
(D) All of the above
75. Cash balance ₹15,000; Trade receivables. ₹70,000; Inventory ₹95,000; Trade
payables ₹24,000 and Bank overdraft is ₹6,000 current ratio will be:
(A) 1:3
(B) 1:3.75
(C) 3.75:1
(D) 3:1
Series-D BCA 2004 / K-369 Page - 17
76. Inventory ratio is a relationship between:
(A) Cost of goods sold and cost of average inventory
(B) Current Assets and Current liabilities
(C) Cost of goods purchased and Cost of average inventory
(D) None of the above
77. Two basic measures of liquidity are:
(A) Current ratio and Quick ratio
(B) Gross profit ratio and Operating ratio
(C) Current ratio and Average collection period
(D) Inventory turnover and current ratio
78. Generally ideal ratio for debt to equity ratio is:
(A) 2:1
(B) 1:1
(C) 1:2
(D) 1:75
79. Working capital is expressed by:
(A) Current Assets – Current liabilities
(B) Current Assets + Current liabilities
(C) Current Assets = Current liabilities
(D) None of the above
80. The amount of current assets that varies with seasonal requirements is referred to
as___________ working capital.
(A) Permanent
(B) Net
(C) Temporary
(D) Gross

Series-D BCA 2004 / K-369 Page - 18

81. Which one of the following emphasizes the qualitative aspects of working capital
management?
(A) Gross working capital
(B) Quick working capital
(C) Net working capital
(D) None of the above
82. Which of the following factors affects the working capital requirement of a
business unit?
(A) Nature of business
(B) Credit policy
(C) Production policy
(D) All the above
83. Net working capital will be called positive working capital when:
(A) Current Assets > Current liabilities
(B) Current Assets < Current liabilities
(C) Current Assets = Current liabilities
(D) None of the above
84. Working capital management is concerned with:
(A) Raising of funds for day to day operations
(B) Planning the total investment in current assets
(C) Planning the level and composition of current liabilities
(D) All of the above
85. Which one of the following events will reduce the cash balance of a business?
(A) Purchase of stock on credit
(B) Purchase of fixed assets on interest free credit
(C) Creditors paid accounts owed
(D) None of the above

Series-D BCA 2004 / K-369 Page - 19

86. Which of the following statement most accurately describes the modern approach
to cash management?
(A) Cash management involves the efficient collection and disbursement of cash
(B) Cash management involves the efficient disbursement of cash
(C) Both (A) & (B)
(D) Cash management involves the efficient processing, collection, and depositing
of cash
87. The goal of receivables management is to maximize the value of the firm by
achieving trade-off between:
(A) Risk and Profitability
(B) Liquidity and Profitability
(C) Return and Profitability
(D) Return and Liquidity
88. The cost involved in maintaining accounts receivable is:
(A) Cost of capital
(B) Cost of collection
(C) Both (A) & (B)
(D) None of the above
89. The size of Accounts receivables depends on:
(A) Sales level
(B) Credit policies
(C) Credit period
(D) All of the above
90. The objective of credit sales by firm is:
(A) Attaining growth in sales
(B) Enhancing profit
(C) Facing competition
(D) All of the above

Series-D BCA 2004 / K-369 Page - 20

91. _________are the result of extension of credit facility of the customers.
(A) Payables
(B) Receivables
(C) Equity share
(D) None of the above
92. Which technique applied for inventory management?
(A) Economic order quantity
(B) Just-in-time
(C) Inventory ratio
(D) All of the above
93. Annual requirement of an item of inventory are 3,200 units. Inventory ordering.
Costs are ₹100 per order. The inventory. Carrying costs are ₹4 per unit. Calculate
EOQ of the firm-
(A) 500 units
(B) 400 units
(C) 200 units
(D) 100 units
94. Which among the following component is calculated as the sum of the fixed costs
that happen each time an item is ordered?
(A) Carrying cost
(B) Order cost
(C) Holding cost
(D) Storing cost
95. In the concept of capital gearing. A firm is said to be highly geared when:
(A) Ownership capital > Creditorship capital
(B) Ownership capital < Creditorship capital
(C) Ownership capital = Creditorship capital
(D) None of the above

Series-D BCA 2004 / K-369 Page - 21

96. _______stands for the ratio between the various binds of securities to the total
capitalization.
(A) Capital gearing
(B) Capital market
(C) Cost of capital
(D) None of the above
97. Capital structure _________ financial structure.
(A) Is a part of
(B) Is not a part of
(C) Is the same as
(D) Is different from
98. Capital structure refers to __________in the total capital.
(A) Long-term debts and equity
(B) Short–term debts and equity
(C) Short-term debts and owner’s equity
(D) None of the above
99. What factor are considered while planning the capital structure of corporate?
(A) Trading on equity
(B) Capital market conditions
(C) Cost of financing
(D) All of the above
100. Which of the following is not an approach to the capital structure?
(A) Gross profit approach
(B) Net operating income approach
(C) Net income approach
(D) Modigliani-Miller approach
******
Series-D BCA 2004 / K-369 Page - 22
 Rough Work / jQ dk;Z

Series-D BCA 2004 / K-369 Page - 23

 DO NOT OPEN THE QUESTION BOOKLET UNTIL ASKED TO DO SO

1. Examinee should enter his / her roll number, subject and Question Booklet
Series correctly in the O.M.R. sheet, the examinee will be responsible for
the error he / she has made.
2. This Question Booklet contains 100 questions, out of which only 75
Question are to be Answered by the examinee. Every question has 4
options and only one of them is correct. The answer which seems
correct to you, darken that option number in your Answer Booklet
(O.M.R ANSWER SHEET) completely with black or blue ball point
pen. If any examinee will mark more than one answer of a particular
question, then the answer will be marked as wrong.
3. Every question has same marks. Every question you attempt correctly,
marks will be given according to that.
4. Every answer should be marked only on Answer Booklet (O.M.R
ANSWER SHEET). Answer marked anywhere else other than the
determined place will not be considered valid.
5. Please read all the instructions carefully before attempting anything on
Answer Booklet (O.M.R ANSWER SHEET).
6. After completion of examination, please hand over the O.M.R. SHEET to
the Examiner before leaving the examination room.
7. There is no negative marking.
Note: On opening the question booklet, first check that all the pages of the
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examiner to change the booklet of same series and get another one.

Series-D BCA 2004 / K-369 Page - 24

 Paper Code Á’uiqfLrdk Øekad
Question Booklet No.
Roll No.----------------------
3 6 9
(To be filled in the
OMR Sheet)

O.M.R. Serial No. Á’uiqfLrdk lhjht

Question Booklet Series
A
BCA (Second Semester) Examination, July-2022
BCA-2004
Financial Accounting & Management
Time : 1:30 Hours Maximum Marks-100

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vU;Fkk ewY;akdu esa fdlh Hkh Ádkj dh folaxfr dh n’kk esa mldh ftEesnkjh Lo;a ijh{kkFkhZ dh gksxhA
2. bl Á’uiqfLrdk esa 100 Á’u gSa] ftues ls dsoy 75 Á’uksa ds mRrj ijh{kkfFkZ;ksa }kjk fn;s tkus gSA
ÁR;sd Á’u ds pkj oSdfYid mRrj Á’u ds uhps fn;s x;s gSaA bu pkjksa esa ls dsoy ,d gh mRrj
lgh gSA ftl mRrj dks vki lgh ;k lcls mfpr le>rs gSa] vius mRrj i=d (O.M.R.
ANSWER SHEET) esa mlds v{kj okys o`Rr dks dkys ;k uhys cky IokabV isu ls iwjk Hkj nsaA
;fn fdlh ijh{kkFkhZ }kjk fdlh iz’u dk ,d ls vf/kd mŸkj fn;k tkrk gS] rks mls xyr mŸkj ekuk
K-369

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tk;saxsA
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gSaA mRrj i=d esa fu/kkZfjr LFkku ds vykok vU;= dgha ij fn;k x;k mRrj ekU; ugha gksxkA
5. vksŒ,eŒvkjŒ mRrj i=d (O.M.R. ANSWER SHEET) ij dqN Hkh fy[kus ls iwoZ mlesa fn;s
x;s lHkh vuqns’kksa dks lko/kkuhiwoZd i<+ fy;k tk;A
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Series-A BCA 2004 / K-369 Page - 2
1. Motive of holding cash:
(A) Transaction
(B) Precautionary
(C) Compensation
(D) All of above
2. Payment of dividend should be done within ____________ days of its declaration.
(A) 30 days
(B) 45 days
(C) 42 days
(D) 90 days
3. Financial leverage is called synonym to:
(A) Trading on equity
(B) Trading on capital
(C) Trading on credit
(D) Trading on fixed cost
4. The capital contributed by the shareholders is known as:
(A) Borrowed capital
(B) Owned capital
(C) Both of them
(D) None of them
5. Funds needed for acquiring fixed assets are known as:
(A) Short term finance
(B) Long term finance
(C) Medium term finance
(D) None of the above

Series-A BCA 2004 / K-369 Page - 3

6. Distribution of dividend, be done out of:
(A) Capital
(B) Interest
(C) Profits
(D) Debentures
7. Preference shares which guarantee a fixed rate of dividend is known as:
(A) Cumulative preference shares
(B) Non-cumulative preference shares
(C) Participating preference shares
(D) None of the above
8. The capital contributed by equity shareholders in business is called:
(A) Venture capital
(B) Ventura capital
(C) Both (A) and (B)
(D) None of the above
9. Ploughing back of profit is also known as:
(A) Self financing
(B) Reserve financing
(C) Equity financing
(D) None of the above
10. Debenture is a:
(A) White paper
(B) Promissory note
(C) Voting paper
(D) All of the above

Series-A BCA 2004 / K-369 Page - 4

11. Debenture holders are known as the ______________ of the company.
(A) Debtors
(B) Owners
(C) Creditors
(D) partners
12. “Optimum cash level is that level of cash where the carrying cost and transaction
costs are the minimum”? This statement is given by:
(A) J.L. Massie
(B) J.F. Bradley
(C) William J. Baumol
(D) None of the above
13. Book-Keeping means:
(A) Keeping of books
(B) Keeping of the books in library
(C) Keeping the account in Almirah
(D) Recording of business transactions in a set of books
14. Kinds of Accounting are:
(A) Financial Accounting
(B) Cost Accounting
(C) Management Accounting
(D) All of the above
15. Amount withdrawn by a businessman for personal use is:
(A) Cash
(B) Expenses
(C) Drawings
(D) Loss

Series-A BCA 2004 / K-369 Page - 5

16. Intangible asset is:
(A) Goodwill
(B) Patent
(C) Building
(D) (A) and (B) only
17. ABC ltd. Follows the written down value method of depreciating building year
after year due to:
(A) Convenience
(B) Consistency
(C) Comparability
(D) All of the above
18. According to going concern concept, a business is viewed as having:
(A) A limited life
(B) A definite life
(C) An indefinite life
(D) None of the above
19. According to which of the following accounting concepts even the owner of a
Business is treated as Creditor to the extent of his Capital:
(A) Dual aspect concept
(B) Money measurement concept
(C) Cost concept
(D) Business entity concept
20. Which concept is used by all accounting frame works for generating accurate and
reliable financial statements?
(A) Cost concept
(B) Matching concept
(C) Dual aspect concept
(D) None of the above

Series-A BCA 2004 / K-369 Page - 6

21. Accounting standards:
(A) Improve the reliability of financial statements
(B) Ensure uniformity in the preparation of financial statements
(C) Harmonies accounting policies
(D) All of the above
22. When accounting standard board has been constitute?
(A) 21 Feb 1977
(B) 21 Jan 1977
(C) 19 April 1977
(D) 21 April 1977
23. Which Accounting standard deals with the accounting for government grants?
(A) AS-12
(B) AS-13
(C) AS-14
(D) AS-15
24. An employee of the organization suffers an accident at work and the organization
decide to pay him Rs.1,00,000 as compensation. Should the organization pass an
entry even though it has not paid it ?
(A) Yes, because of accrual concept
(B) No, because it is not paid
(C) No, because the employee has not accepted
(D) None of the above
25. Income taxes comes under:
(A) Ind AS 11
(B) Ind AS 12
(C) Ind AS 13
(D) Ind AS 14

Series-A BCA 2004 / K-369 Page - 7

26. Which type of asset class include those assets which have only definite use and
become value less when the yield is over?
(A) Fixed assets
(B) Current assets
(C) Fictitious assets
(D) Wasting assets
27. What is accounting equation?
(A) Assets = Capital + Liability
(B) Assets = Liabilities – Capital
(C) Capital = Assets + Liability
(D) None of the above
28. According to the cost concept the assets are always valued at:
(A) Market price
(B) Current price
(C) Purchase price
(D) None of the above
29. A person who owes money to a business against sale of goods is called:
(A) Creditor
(B) Debtor
(C) (A) & (B) both
(D) None of the above
30. A liability arises because of:
(A) Cash transaction
(B) Credit transaction
(C) Both (A) and (B)
(D) None of the above

Series-A BCA 2004 / K-369 Page - 8

31. The expenditure incurred on acquiring fixed assets is called:
(A) Revenue expenditure
(B) Capital expenditure
(C) Both (A) & (B)
(D) None of the above
32. Which is not a capital expenditure?
(A) Building
(B) Laptop
(C) Salaries
(D) Wages paid for installation of machinery
33. Mr. xyz Ltd. sale goods to abc and Received Rs. 50,000 which kind of receipt is
this:
(A) Revenue receipt
(B) Capital receipt
(C) Deferred revenue receipt
(D) Not a receipt
34. Interest on loan paid by business is an example of:
(A) Deferred expenses
(B) Revenue expenses
(C) Capital expenses
(D) None of the above
35. Amount invested by the owner in the business should be credit to:
(A) Drawing
(B) Cash
(C) Capital
(D) None of the above

Series-A BCA 2004 / K-369 Page - 9

36. Transactions are first recorded in which book/Account?
(A) Book of original entry
(B) Book of secondary entry
(C) Book of final entry
(D) Accounting equation
37. Goods returned by the customer will be debited to which Account?
(A) Sales A/c
(B) Purchase A/c
(C) Return outward
(D) Return inward
38. Sold goods to xyz for ₹24,000 allowed him 10% Trade discount and 10% cash
discount. Half the payment was received at the time of sale. What is the amount of
cash received at the time of sale?
(A) 9,720
(B) 10,80
(C) 11,880
(D) 10,820
39. Suneet become insolvent and a final composition of 60 paisa in a rupee was
received out of the debt of ₹10,000. Bad debts account will be debited by:
(A) 4,000
(B) 6,000
(C) 10,000
(D) 8,000
40. Goods worth ₹50000 given as charity (sales price 1,00,000). What amount would
be debited to charity Account?
(A) 50,000
(B) 1,00,000
(C) 1,000
(D) None of the above
Series-A BCA 2004 / K-369 Page - 10
41. Paid Income Tax ₹50,000 by cheque which Account will be debited?
(A) Income Tax A/c
(B) Drawings A/c
(C) Bank A/c
(D) Government A/c
42. Salaries due to Clerk ₹10,000 which Account to be debited?
(A) Clerk A/c
(B) Salary A/c
(C) Debtors A/c
(D) Cash A/c
43. Interest due but not received ₹5,000. Name the Account to be debited:
(A) Accrued Interest A/c
(B) Interest A/c
(C) Cash A/c
(D) Debtors A/c
44. While passing an opening entry all the assets are__________ while all the
liabilities are____________.
(A) Debited, Credited
(B) Credited, Credited
(C) Credited, Debited
(D) None of the above
45. Received cash for a bad debts written off last year Rs. 7,000. What would be the
journal entry?
(A) Cash A/c Dr. 7,000 To Bad debts recovered A/c 7,000
(B) Cash A/c Dr. 7,000 To Purchase A/c 7,000
(C) Bad debts recovered A/c 7,000 To cash A/c 7,000
(D) None of the above

Series-A BCA 2004 / K-369 Page - 11

46. What account will be debited if cheque received from a debtor and not deposited in
to bank the same day?
(A) Cash A/c
(B) Debtors A/c
(C) Bank A/c
(D) None of the above
47. In journal the ledger folio column is used to:
(A) Record the number of ledger account to which information is posted
(B) Record the number of amounts posted to the ledger account
(C) Record the page number of the ledger account
(D) None of the above
48. When one account is debited and more than one account is credited such type of
entries are called?
(A) Compound entry
(B) Single compound entry
(C) Single entry
(D) None of the above
49. Establishment expenses of new machine will be debited in:
(A) Expenses Account
(B) Machine Account
(C) Profit and Loss Account
(D) None of the above
50. Double entry system was introduced in:
(A) America
(B) Japan
(C) India
(D) Italy

Series-A BCA 2004 / K-369 Page - 12

51. Which of the following is not an approach to the capital structure?
(A) Gross profit approach
(B) Net operating income approach
(C) Net income approach
(D) Modigliani-Miller approach
52. What factor are considered while planning the capital structure of corporate?
(A) Trading on equity
(B) Capital market conditions
(C) Cost of financing
(D) All of the above
53. Capital structure refers to __________in the total capital.
(A) Long-term debts and equity
(B) Short–term debts and equity
(C) Short-term debts and owner’s equity
(D) None of the above
54. Capital structure _________ financial structure.
(A) Is a part of
(B) Is not a part of
(C) Is the same as
(D) Is different from
55. _______stands for the ratio between the various binds of securities to the total
capitalization.
(A) Capital gearing
(B) Capital market
(C) Cost of capital
(D) None of the above

Series-A BCA 2004 / K-369 Page - 13

56. In the concept of capital gearing. A firm is said to be highly geared when:
(A) Ownership capital > Creditorship capital
(B) Ownership capital < Creditorship capital
(C) Ownership capital = Creditorship capital
(D) None of the above
57. Which among the following component is calculated as the sum of the fixed costs
that happen each time an item is ordered?
(A) Carrying cost
(B) Order cost
(C) Holding cost
(D) Storing cost
58. Annual requirement of an item of inventory are 3,200 units. Inventory ordering.
Costs are ₹100 per order. The inventory. Carrying costs are ₹4 per unit. Calculate
EOQ of the firm-
(A) 500 units
(B) 400 units
(C) 200 units
(D) 100 units
59. Which technique applied for inventory management?
(A) Economic order quantity
(B) Just-in-time
(C) Inventory ratio
(D) All of the above
60. _________are the result of extension of credit facility of the customers.
(A) Payables
(B) Receivables
(C) Equity share
(D) None of the above

Series-A BCA 2004 / K-369 Page - 14

61. The objective of credit sales by firm is:
(A) Attaining growth in sales
(B) Enhancing profit
(C) Facing competition
(D) All of the above
62. The size of Accounts receivables depends on:
(A) Sales level
(B) Credit policies
(C) Credit period
(D) All of the above
63. The cost involved in maintaining accounts receivable is:
(A) Cost of capital
(B) Cost of collection
(C) Both (A) & (B)
(D) None of the above
64. The goal of receivables management is to maximize the value of the firm by
achieving trade-off between:
(A) Risk and Profitability
(B) Liquidity and Profitability
(C) Return and Profitability
(D) Return and Liquidity
65. Which of the following statement most accurately describes the modern approach
to cash management?
(A) Cash management involves the efficient collection and disbursement of cash
(B) Cash management involves the efficient disbursement of cash
(C) Both (A) & (B)
(D) Cash management involves the efficient processing, collection, and depositing
of cash

Series-A BCA 2004 / K-369 Page - 15

66. Which one of the following events will reduce the cash balance of a business?
(A) Purchase of stock on credit
(B) Purchase of fixed assets on interest free credit
(C) Creditors paid accounts owed
(D) None of the above
67. Working capital management is concerned with:
(A) Raising of funds for day to day operations
(B) Planning the total investment in current assets
(C) Planning the level and composition of current liabilities
(D) All of the above
68. Net working capital will be called positive working capital when:
(A) Current Assets > Current liabilities
(B) Current Assets < Current liabilities
(C) Current Assets = Current liabilities
(D) None of the above
69. Which of the following factors affects the working capital requirement of a
business unit?
(A) Nature of business
(B) Credit policy
(C) Production policy
(D) All the above
70. Which one of the following emphasizes the qualitative aspects of working capital
management?
(A) Gross working capital
(B) Quick working capital
(C) Net working capital
(D) None of the above

Series-A BCA 2004 / K-369 Page - 16

71. The amount of current assets that varies with seasonal requirements is referred to
as___________ working capital.
(A) Permanent
(B) Net
(C) Temporary
(D) Gross
72. Working capital is expressed by:
(A) Current Assets – Current liabilities
(B) Current Assets + Current liabilities
(C) Current Assets = Current liabilities
(D) None of the above
73. Generally ideal ratio for debt to equity ratio is:
(A) 2:1
(B) 1:1
(C) 1:2
(D) 1:75
74. Two basic measures of liquidity are:
(A) Current ratio and Quick ratio
(B) Gross profit ratio and Operating ratio
(C) Current ratio and Average collection period
(D) Inventory turnover and current ratio
75. Inventory ratio is a relationship between:
(A) Cost of goods sold and cost of average inventory
(B) Current Assets and Current liabilities
(C) Cost of goods purchased and Cost of average inventory
(D) None of the above

Series-A BCA 2004 / K-369 Page - 17

76. Cash balance ₹15,000; Trade receivables. ₹70,000; Inventory ₹95,000; Trade
payables ₹24,000 and Bank overdraft is ₹6,000 current ratio will be:
(A) 1:3
(B) 1:3.75
(C) 3.75:1
(D) 3:1
77. In weighted average cost of capital an organization can affect its cost of capital
through:
(A) The policy of investment
(B) The policy of capital structure
(C) The policy of dividend
(D) All of the above
78. Cost of capital highest in case of :
(A) Equity
(B) Debentures
(C) Fixed deposits
(D) Retained earning
79. Which of the following has an implicit cost of capital?
(A) Equity share capital
(B) Preference share capital
(C) Debentures
(D) Retained earnings
80. Which of the following is the correct formula to calculate the cost of debt issued at
premium or discount:
(A) Kd = (1−T)

(B) Kd = (1−T) R

(C) Kd =

(D) None of the above

Series-A BCA 2004 / K-369 Page - 18
81. The process of transferring of items from a journal to their respective ledger
account is called as:
(A) Arithmetic correction
(B) Journalizing
(C) Balancing
(D) Posting
82. A ledger is called the book of:
(A) Original entry
(B) Final entry
(C) Secondary entry
(D) Both (B) & (C)
83. In ledger, excess of debit side over credit side is called:
(A) Debit balance
(B) Credit balance
(C) Assets account
(D) Liability account
84. The payment to a creditor will:
(A) Decrease an asset and decrease a liability
(B) Increase an asset and increase in liability
(C) Increase one asset and decrease another
(D) None of these
85. Ledger is a book in which?
(A) Real and Nominal Account are included
(B) Only real Accounts are included
(C) Real, personal and Nominal Accounts are included
(D) No Accounts are included

Series-A BCA 2004 / K-369 Page - 19

86. What type of following Accounts will have the debit balance only?
(A) Real Account
(B) Personal Account
(C) Nominal Account
(D) All of the above
87. Discount received account will always have:
(A) Credit balance
(B) Debit balance
(C) Both (A) & (B)
(D) None of the above
88. A newly established company cannot be successful in obtaining of finance by:
(A) Issue of equity capital
(B) Issue of preference share
(C) Issue of debentures
(D) None of the above
89. Which is the type of leverage?
(A) Operating leverage
(B) financial leverage
(C) Cost leverage
(D) Both (A) & (B)
90. Which regulatory body regulate securities and commodity market in India?
(A) SEBI
(B) IRDA
(C) Reserve Bank of India
(D) None of the above

Series-A BCA 2004 / K-369 Page - 20

91. A trial balance is merely a____________ of debit & credit balances of ledger at a
particular date.
(A) Book
(B) Statement
(C) Chapter
(D) None of the above
92. What shall be the amount of capital if cash is ₹10,000, fixed Assets ₹1,20,000,
stock ₹60,000 and creditors ₹60,000?
(A) ₹1,30,000
(B) ₹1,90,000
(C) ₹2,40,000
(D) ₹2,50,000
93. Which error will discovered by the preparation of trial balance?
(A) Capital expenditure treated as revenue expenditure
(B) Complete omission of a transaction
(C) An incorrect amount entered twice as a debit
(D) None of the above
94. Which of the following is debited to the trading Account?
(A) Sales
(B) Closing stock
(C) Salaries & wages
(D) Wages & salaries
95. Drawings are deducted from:
(A) Sales
(B) Purchase
(C) Return out ward
(D) Capital

Series-A BCA 2004 / K-369 Page - 21

96. At the beginning of an accounting year a club has assets worth 25,000 liabilities
5,000 and 1800 as the debit balance of the income & expenditure account. The
opening capital is:
(A) 21,800
(B) 15,800
(C) 11,200
(D) 31,800
97. Preliminary expenses are shown in the balance sheet under which head?
(A) Fixed Assets
(B) Reserve & Surplus
(C) Loan and Advances
(D) None of the above
98. Provision for doubtful debts given on the credit side of the trial balance is known as
an:
(A) Old provision
(B) New provision
(C) No provision
(D) Doubtful provision
99. Depreciation is provided on:
(A) Current Assets
(B) Intangible Assets
(C) Fixed Assets
(D) All of the above
100. The closing stock is appeared in:
(A) Balance sheet + Trading Account
(B) Journal
(C) Ledger
(D) None of the above
******
Series-A BCA 2004 / K-369 Page - 22
 Rough Work / jQ dk;Z

Series-A BCA 2004 / K-369 Page - 23

 DO NOT OPEN THE QUESTION BOOKLET UNTIL ASKED TO DO SO

1. Examinee should enter his / her roll number, subject and Question Booklet
Series correctly in the O.M.R. sheet, the examinee will be responsible for
the error he / she has made.
2. This Question Booklet contains 100 questions, out of which only 75
Question are to be Answered by the examinee. Every question has 4
options and only one of them is correct. The answer which seems
correct to you, darken that option number in your Answer Booklet
(O.M.R ANSWER SHEET) completely with black or blue ball point
pen. If any examinee will mark more than one answer of a particular
question, then the answer will be marked as wrong.
3. Every question has same marks. Every question you attempt correctly,
marks will be given according to that.
4. Every answer should be marked only on Answer Booklet (O.M.R
ANSWER SHEET). Answer marked anywhere else other than the
determined place will not be considered valid.
5. Please read all the instructions carefully before attempting anything on
Answer Booklet (O.M.R ANSWER SHEET).
6. After completion of examination, please hand over the O.M.R. SHEET to
the Examiner before leaving the examination room.
7. There is no negative marking.
Note: On opening the question booklet, first check that all the pages of the
question booklet are printed properly in case there is an issue please ask the
examiner to change the booklet of same series and get another one.

Series-A BCA 2004 / K-369 Page - 24