Q.1 Consignment is a type of arrangement where goods are sent by the ______.
Consignee
Consignor
Debtor
Creditor
Explanation - Goods are sent on consignment by the consignor to the consignee for sale on behalf of the consignor.
Correct answer is: Consignor
Q.2 The person who receives goods on consignment is called ______.
Consignee
Consignor
Agent
Principal
Explanation - The consignee is the agent who sells goods on behalf of the consignor.
Correct answer is: Consignee
Q.3 Which account is prepared by the consignor to find out profit or loss on consignment?
Trading Account
Profit & Loss Account
Consignment Account
Consignee Account
Explanation - Consignment Account is prepared to determine the profit or loss made on the consignment.
Correct answer is: Consignment Account
Q.4 Del-credere commission is allowed to protect consignor against ______.
Cash discount
Bad debts
Loss of goods
Expenses
Explanation - Del-credere commission covers the risk of bad debts on credit sales made by the consignee.
Correct answer is: Bad debts
Q.5 Which of the following is NOT a feature of consignment?
Ownership remains with consignor
Consignee acts as agent
Goods are sold on consignee's own behalf
Risk of unsold goods lies with consignor
Explanation - Goods are sold by the consignee but ownership and risk belong to consignor.
Correct answer is: Goods are sold on consignee's own behalf
Q.6 In consignment, ownership of goods is transferred to ______.
Consignee
Consignor
Buyer
Agent
Explanation - Ownership remains with consignor until goods are sold, then it passes to the buyer.
Correct answer is: Buyer
Q.7 Expenses incurred by consignee are classified as ______.
Non-recurring expenses
Recurring expenses
Direct expenses
Capital expenses
Explanation - Expenses incurred by consignee for selling goods are recurring expenses.
Correct answer is: Recurring expenses
Q.8 In consignment, the risk of unsold goods lies with ______.
Consignee
Consignor
Buyer
Agent
Explanation - The consignor bears the risk of unsold goods since ownership remains with him.
Correct answer is: Consignor
Q.9 Which commission provides incentive for consignee to sell at higher price?
Ordinary commission
Del-credere commission
Overriding commission
Special commission
Explanation - Overriding commission is given to encourage consignee to sell goods at higher than invoiced price.
Correct answer is: Overriding commission
Q.10 Joint venture is a type of arrangement similar to ______.
Partnership
Consignment
Sole proprietorship
HUF
Explanation - Joint venture is similar to partnership but is for a specific venture and temporary in nature.
Correct answer is: Partnership
Q.11 In a joint venture, co-venturers share profit and loss in the ______ ratio.
Equal
Capital contribution
Agreed
50:50
Explanation - Profits and losses are shared in the ratio agreed by the co-venturers.
Correct answer is: Agreed
Q.12 Which account is prepared when one co-venturer maintains records?
Consignment Account
Memorandum Joint Venture Account
Joint Venture Account
Profit & Loss Account
Explanation - If one co-venturer maintains records, he opens a Joint Venture Account to ascertain profit or loss.
Correct answer is: Joint Venture Account
Q.13 Memorandum Joint Venture Account is prepared when ______.
One venturer keeps records
No venturer keeps records
Both venturers keep partial records
Consignee keeps records
Explanation - When each venturer records only own transactions, Memorandum Joint Venture Account is prepared.
Correct answer is: Both venturers keep partial records
Q.14 Profit on joint venture is shared among ______.
Consignor and consignee
All co-venturers
Consignee only
Debtors and creditors
Explanation - Profits are shared by all co-venturers in the agreed ratio.
Correct answer is: All co-venturers
Q.15 Joint venture differs from partnership because it is ______.
Permanent
Ongoing
Temporary
Registered
Explanation - A joint venture is a temporary arrangement for a specific project unlike partnership which is ongoing.
Correct answer is: Temporary
Q.16 Which type of account records only own transactions in a joint venture?
Personal account
Own venture account
Co-venturer’s account
Joint bank account
Explanation - Each venturer records his own transactions in his co-venturer’s account.
Correct answer is: Co-venturer’s account
Q.17 If goods are sent on consignment at cost plus 20%, loading means ______.
Excess cost
Excess over invoice
Profit margin included
Overvaluation
Explanation - The 20% above cost is profit margin (loading) included in the invoice price.
Correct answer is: Profit margin included
Q.18 Unsold goods with consignee are called ______.
Closing stock
Opening stock
Goods lost
Goods in transit
Explanation - Unsold goods with consignee at end of accounting period are shown as consignment closing stock.
Correct answer is: Closing stock
Q.19 Which account shows balance due to or from the consignee?
Consignment Account
Consignee’s Account
Joint Venture Account
Profit & Loss Account
Explanation - Consignee’s Account shows the net balance payable or receivable between consignor and consignee.
Correct answer is: Consignee’s Account
Q.20 Abnormal loss in consignment is due to ______.
Normal wastage
Fire, accident, theft
Selling expenses
Commission
Explanation - Loss from unforeseen events like fire or accident is abnormal loss.
Correct answer is: Fire, accident, theft
Q.21 Normal loss in consignment occurs due to ______.
Natural causes
Accidents
Fire
Theft
Explanation - Normal loss arises from natural reasons like evaporation, leakage, drying etc.
Correct answer is: Natural causes
Q.22 The person who contributes resources in a joint venture is called ______.
Consignee
Consignor
Co-venturer
Investor
Explanation - Each party in a joint venture is called co-venturer.
Correct answer is: Co-venturer
Q.23 Goods sent on consignment but still in transit are shown as ______.
Purchases
Goods in transit
Closing stock
Expenses
Explanation - Unsold goods still in transit are shown separately as goods in transit.
Correct answer is: Goods in transit
Q.24 In joint venture, cash transactions may be operated through ______.
Consignee
Joint bank account
Consignor
Personal account
Explanation - Co-venturers may open a joint bank account to record all joint venture transactions.
Correct answer is: Joint bank account
Q.25 Consignment Account is prepared by ______.
Consignor
Consignee
Buyer
Agent
Explanation - Consignment Account is prepared by consignor to determine profit or loss on consignment.
Correct answer is: Consignor