🧪 Business Accounting MCQ Quiz Hub

1. An agreement enforceable by law is
agreement
contract
offer
promise

2. Every promise and every set of promises, forming the consideration for each other is an
agreement
offer
contract
acceptance

3. In a contract of indemnity the right of the indemnifier is similar to that of the:
debtor
creditor
surety
agent

4. In a contract of indemnity, minimum no of parties are
4
3
2
1

5. The sale of goods act is of:
1903
1923
1930
1932

6. Seller is a person who
sells
buys
debtor
transferee

7. Document of title includes
business reports
railway receipt
cash memo
email

8. A person coming forward to accept after it has been dishonoured is called:
A. acceptor for honour
acceptor for paying
payment for honour
holder

9. Protest for better security is done for publicity stunt.t
rue
false
attention
fun

10. When an instrument is lost, it is presumed that it was duly stamped
true
false
not inchoate
inchoate

11. Which one of the following element is notnecessary for a contract ?
Competent parties
Reasonable terms and conditions
Free consent
Lawful concentration

12. An agreement becomes a contract if :
It is by free consent of the parties.
Parties are competent
It is enforceable by law.
None of the above

13. In a standardized contract :
The individual has no choice but to accept and sign on
The individual must be protected in contract.
The agreement is without consideration.
None of the above.

14. The correct sequence in the formation of a contract is :
Offer, acceptance, agreement, consideration.
Agreement, consideration, offer,acceptance.
Offer , Consideration, acceptance, agreement.
Offer,acceptance, consideration, agreement.

15. A sells, by auction to B a horse which A knows to be unsound. A says nothing to B about the horse unsoundness. A does :
Fraud
Misrepresentation
No fraud
Undue Influence

16. A petient in a lunatic Asylum who is at intervals of sound mind :
May not contract.
May contract
May contact during those intervals when he is of sound mind.
May contract only after he becomes completely of sound mind .

17. Which is not the correct statement ?
If consent is the result of coercion, the agreement is
If a party is minor, the agreement is void .
If the object of an agreement is unlawful, the agreement is void.
If the consideration of an agreement is unlawful, the agreement

18. What is the purpose behind the enactment of Sale of Goods Act, 1930?
To define the laws relating to the sale of goods
To consolidate and amend the laws relating to the sale of goods
To consolidate, amend and define the laws relating to the sale of goods
To define and amend the laws relating to the sale of goods

19. Section 2(1) of Sale of Goods Act defines ‘buyer’ as:
Person who buys goods and services
Person who agrees to buy goods
Person who buys or agrees to buy goods
Person who buys or agrees to buy goods and services

20. Before the enactment of Sale of Goods Act, the provisions regarding Sale of
Indian Contract Act, 1872
Indian Registration Act, 1908
Transfer of Property Act, 1882
Indian Partnership Act, 1932

21. Which of the following cannot be said to be included in the term “goods” defined under section 2(7) of the Sale of Goods
Stock
Shares
Growing crops
Actionable claims

22. The voluntary transfer of possession from one person to another is called
Transfer
change of possession
Delivery
None of above

23. Which of the following is not the right of an unpaid seller under Sale of Goods Act, 1930:
Right of lien on goods for the price while the goods are in possession of seller.
Right of stopping the goods in transit, in case of insolvency of buyer C. Right of resale as limited by the Act
Right of resale as limited by the Act
Right of withholding delivery where the property in the goods has passed to the buyer

24. Future goods means goods to be manufactured or produced or acquired by the seller
In future prescribed time
after making of contract
before making of contract
none of the above

25. Bearer cheques are also known as------ cheques.
Crossed
General
Special
Open

26. Which of the following is not a negotiable instrument
Bill of exchange and cheque
Postal Order & Currency note
Promissory note and cheque
Promissory note & Bill of exchange

27. Holder in due course means any person-
A. Drawing the instrument
who for consideration became the possession of promissory note
to whom order the money is directed to paid
none of the Above

28. Cheque can be of types and crossing of cheques can be of types.
three, two
two, two
two, three
three, three

29. What are the limits of number of members in a Private Company?
Fifty
Seven
Twenty
Two hundred

30. A public company must have at least————- directors whereas a private company must have at least ——————-
3;2
23
25
810

31. The registered office clause of memorandum of association contains
The name of the state in which the registered office of the company is to
The name of the city/town only and not that of the state.
The name of registrar of companies
The complete postal address.

32. Which documents contains the regulations relating to the internal management of a
Memorandum of Association
Articles of Association
Both (a) and (b)
None

33. …….meeting is the first meeting of the members of the public company after
board
annual general
departmental
statutory

34. Who can endorse the negotiable
Maker of the
older of the
Drawee
Both of A and B

35. A Bill of exchange contains —
Conditional undertaking
Unconditional undertaking
Unconditional order
Conditional order

36. Memorandum of Association does notinclude.
SubscriptionClause.
Capital Clause.
Liability Clause
Assets Clause.

37. Quorum for general meeting for private and public companies.
2 and 5.
3 and 6
5 and 7.
None of the above

38. What do you mean by symbolic possession?
Delivery of keys of lock of godown where the goods
Conditional promise to delivery.
Actual Delivery.
None of the above

39. What does Caveat emptor means?
beware agent
beware customer
beware trader
beware seller

40. The Income and Expenditure Account is a summary of cash transactions.Sol:
True
False
none
all

41. Law is either private law or _________ law.
Public
Private
Family
None of these

42. A minor can be an _____________?
Surety
Partner
Agent
None of these

43. An agreement that is caused by fraud, misrepresentation & coercion is _____?
Voidable
Partially Void
Valid
All of these

44. The person which is represented as an agent ______?
Middleman
Owner
None of these
Principal

45. Public law includes _______law?
Middleman
Owner
None of these
Principal

46. Public law includes _______law?
Administrative
Constitution
Criminal
All of these

47. Contingent goods belongs to _______ goods?
Existing
Future
Contingent
None of these

48. Is voidable contract?
Partly valid agreement
An illegal agreement
All of these
None of these

49. According to Contract Act, Select the true about the “Contract”?A. Legal Term B. Binding agreement C. Always in written
B only
A and B only
A, B and C
None of these

50. In general, Partnership entails which one of the following liability?
Unlimited Liability
Limited Liability
No Liability at all
Both A and C

51. Select the best of partnership that entails more legal benefits?
Unlimited Liability Partnership
Limited Liability Partnership
Ordinary Partnership
None of these

52. Reciprocal represent the meaning of
One sided contracts
Trilateral contracts
Bilateral contracts
None of these

53. A proposal may be revoked by different ways as are provided in which one of the followings section of the Contract Act 1872.
6
7
8
None of above

54. How many ways for revocation of proposal, according to the section 6 of the Contract Act, 1872
2
3
4
None of the above

55. Which one of the following is the agreement that is not enforceable by law is?
Valid agreement
Void agreement
Voidable agreement
None of above

56. Which one of the following is the agreement that is enforceable by law?
Contract
An agreement
Both (a) and (b)
None of above

57. The Section 5 of the Contract Act, deals with which one of the followings;
Communication of contract B. C. D. None of above
Revocation of proposals and acceptances
Acceptance of contracts
Revocation of proposals and acceptances

58. Which one of the following is the agreement that is ceases to be enforceable by law becomes void when it ceases to be enforceable?
Valid contract
Void contract
Voidable contract
None of the above

59. Sameed proposes by letter to sell a house to Shahzeb. When the Communication of the proposal in between Sameed and Shahzeb is complete?
When Sameed make such proposal
When Shahzeb accepts the proposal
Both (A) and (B)
None of above

60. Sameed proposes by letter to sell a house to Shahzeb. When the Communication of the proposal in between Sameed and Shahzeb is complete?
A. When Sameed make such proposal B.C. D.
When Shahzeb accepts the proposal
Both (A) and (B)
None of above