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By Accounting Mcqs No Comments

The amount payable to a person as consideration for the use of rights vested in him is

A. Dividend
B. Royalty
C. Purchase consideration
D. Installment

B. The amount paid to the landlord for use of rights vested in him is the royalty. Dividend is the amount paid for the investment made in an enterprise and is not the correct answer. Purchase consideration is the price paid for receiving a title of a property moveable and immoveable and is not the correct answer. Installment is the payment of amount in stages and is not the amount paid for using the rights vested in the landlord and is not the correct answer.

Related Mcqs:

  1. Debts which are payable in the course of a month are called _____________?

    A. External liabilities
    B. Fixed liabilities
    C. Current liabilities
    D. Liquid Liabilities

  2. Which of the following entries is correct in respect of reserve for discounts on accounts payable?

    A. Debit P&L A/c and Credit Reserve for Discount on Accounts Payable A/c
    B. Debit Accounts Payable A/c and Credit P&L A/c
    C. Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c
    D. Debit Reserve for Discount on Accounts Payable A/c and credit Accounts Payable A/c

  3. A Bill of Exchange is drawn on 1st April, 2018 payable after 3 months. The due date of the bill is?

    A. 30th June,2018
    B. 1st July,2018
    C. 4th July,2018
    D. 4th August,2018

  4. Which of these items are taken into consideration for preparation of adjusted Cash Book

    A. Mistake in Cash Book
    B. Mistake in Pass Book
    C. Cheque issued but not presented for payment
    D. Cheques deposited but not cleared

  5. Which of the following statements is true with regard to written down value method of depreciation?
    i. The rate at which the asset is written off reduces year after year
    ii. The amount of depreciation provided reduces from year to year
    iii. The rate of depreciation as well as the amount of depreciation reduce year after year
    iv. The value of the asset gets reduced to zero over a period of time

    A. Only (i) above
    B. Only (ii) above
    C. Both (i) and (ii) above
    D. (i),(ii) and (iii) above

  6. Sundry debtors as per Trial Balance is 43,000 which includes 2,200 due from ‗H in respect of goods sent to him on approval basis, the cost price of which is 1,800. Rectification would involve:

    A. Adding 2,200 to closing stock
    B. Deducting 1,800 from closing stock and deducting 2,200 each from debtors and sales
    C. Adding 1,800 to closing stock and deducting 2,200 each from debtors and sales
    D. Deducting 1,800 from debtors

  7. The amount invested by the proprietor to start the business is called:

    A. Capital
    B. Business
    C. Drawings
    D. All of them

  8. Amount paid to Masood posted to the credit side of his account would affect___________?

    A. Masood’s account
    B. Cash account
    C. Cash account and Gagan’s account
    D. None of these

  9. Buildings account is debited with an amount towards repairs. This is an example of?

    A. Error of commission
    B. Error of principle
    C. Error of omission
    D. Compensating error

  10. The accountant of Leo Ltd. recorded a payment by cheque to a creditor for supply of materials as 1,340.56. The bank recorded the cheque at its correct amount of 3,140.56. The Company has not passed any rectification entries and the error is not detected through the bank reconciliation. The impact of this error is

    A. The Trial Balance will not agree
    B. The balance of creditors is understated
    C. The purchases are understated
    D. The favorable bank balance as per Pass Book is less than the Bank balance as per Cash book

The correct answer to the question: "The amount payable to a person as consideration for the use of rights vested in him is" is "Royalty".

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