1. Outstanding expenses are charged to (B)
a) Asset
side of balance sheet
b) Liability
side of balance sheet
c) Not
charged to balance sheet
d) None
of these
2. Liabilities in balance sheet include the following items (D)
a) Long
term loan
b) Short
term loan
c) Owner’s fund
d) All
of these
3. Prepaid expense is treated as (A)
a) Current asset
b) Current
liability
c) Short
term liability
d) None
of these
4. Cost accounting aims at ascertain of
product (A)
a) Cost
b) Net profit
c) Gross profit
d) Selling price
5.The purpose of financial accounts is reporting to (d)
a) Management
only
b) Government
only
c) Investor
only
d) All
of these
6.Accounting does not record non-financial transactions
because of: (D)
a) Accrual concept
b) Cost concept
c) Continuity concept
d) Money
measurement concept
7. ”Proposed dividends" is shown in the Balance Sheet
of a company under the head: (a)
a) Provisions
b) Reserves
and Surplus
c) Current Liabilities
d) Other
Liabilities
8. Fixed assets and current assets are categorized as
per concept of: (b)
a) Separate
entity
b)
Going
concern
c) Consistency
d) Time
period
9.Proprietor (owner) is treated as creditor of business due
to: (c)
a) Periodicity
concept
b) Materiality
Principle
c)
Entity
Concept
d) Consistency
concept
10.Which financial statement represents the accounting
equation ASSETS = LIABILITIES + OWNER'S EQUITY (C)
a) Income
Statement
b) Cash
Flow Statement
c)
Balance
Sheet
d) Fund
Flow Statement
11.Which of the following is a liability? (A)
a)
Loan
from Mr.Y
b) loan
to Mr.y
c) Both
(a) (b)
d) None
of these
12.Accounting does not record
non-financial transactions because of: (B)
a)
Accrual concept
b)
Cost concept
c)
Continuity concept
d)
Money measurement concept
13.Fixed assets and current assets are categorized as
per concept of: (B)
a)
Separate entity
b) Going concern
c)
Consistency
d)
Time period
14.Which of the following is correct (d)
a. Profit does not alter capital
b. Capital can only come from profit
c. Profit reduces capital
d. Profit increases capital
15.Which of the following best describes a trial balance? (a)
a.
It is a list of balances on the books
b. It is a special account
c. Shows the financial position
of a business
d. Shows all the entries in the books
16.Net profit
is calculated in (c)
a. Trading a/c
b. Balancesheet
c. Profit & loss a/c
d. Trial balance.
17.The
concept of separate entity is applicable to which of following types of businesses?
a.
Sole proprietorship
b. Corporation
b. Corporation
c.
Partnership
d. All of them
18. Which of the following is time span into which the total life of a
business is divided for the purpose of preparing financial statements? (c)
a. Fiscal year
b. Calendar year
c.
Accounting period
d. Accrual period
19.Interest ,
rent, electricity bill are types of account (d)
a. Personal a/c
b. Impersonal a/c
c. Real a/c d.
Nominal a/c
20. Provision for discount on debtors is calculated on the
amount of debtors. (b)
a) Before deducting provision for doubtful debts.
b) After deducting provision for doubtful debts.
c) Before deducting actual debts and provision for doubtful debts.
d) After adding actual bad and doubtful debts.
21. Which of the following is not
a Real Account? (c)
a) Cash A/c b) Investments A/c
c) Out standing rent A/c d) Purchases A/c
22. Value of goods withdrawn by the proprietor for his personal use should be credited to (d)
a) Capital A/c b) Sales A/c c)
Drawings A/c d) Purchases A/c
23. Which of the following is incorrect? (D)
a) Good will intangible asset b)
Sundry debtors - current asset
c) Loose tools tangible fixed
asset d) Outstanding expenses -current asset.
24. M/s Stationery Mart will
debit the purchase of stationery to (a)
a) Purchases A/c b) General
Expenses A/c c) Stationery A/c d) None
25. Small items
like, pencils, pens,
files, etc. are written off within a year according to _ concept. (a)
a)
Materiality b) consistency c) Conservatism d) Realisation
26. Business enterprise is separate from its owner according to concept.(c)
a) Money
measurement concept b) Matching concept
c) Entity concept d) Dual aspect concept
27. The policy
of anticipate no profit
and provide for all
possible losses arise due to the concept of (c)
a)
Consistency b) Disclosure c) Conservatism d) Matching
28. According to which concept, the proprietor pays
interest on drawings (c)
a) Accrual concept b)
Conservatism concept c) Entity concept d)
Dual A spect concept
29. Cost concept basically recognises (b)
a) Fair Market value b) Historical cost c) Realisable value d)
Replacement cost
30.If the Market value of closing Inventory is less than its cost price, inventory will he shown at (a)
a)
Marketable value b) Fair Market value c) Both d)
none
31. The Market
price of good declined
than the cost price. Then the concept
that plays a key role is (C)
a)
Materiality b) Going concern concept c) Realization
d) Consistency
32. Fixed assets
are double the current assets and half the capital. The current assets are Rs.3,00,000 and investments are
Rs.4,00,000. Then the current liabilities recorded in balance sheet will
be (B)
a)
2,00,000 b) 1,00,000 c) 3,00,000 d) 4,00,000
33.Which of the following should
not be called sales? (b)
a) Good
sold on credit
b) Office fixtures sold
c) Sale of item previously
included in purchase
d) Good sold for cash
34.Material concept tell about (C)
a) Disclosure
of loss
b) Disclosure
of profit
c) Disclosure
of all information which are important for investor
d) Disclosure
of all information which are important for management
35.Which of the following is not
regarded as the fundamental accounting concept? (d)
a. The going concern concept
b. The separate entity concept
c. The prudence (conservatism) concept
d. Correction concept
a) The
going concern concept
b) The
separate entity concept
c) The
prudence concept
d) Matching concept
37.The concept of separate entity
is applicable to which of following types of
businesses? (d)
a) Sole proprietorship
b) Corporation
c) Partnership
d) All
of them
38.The
revenue recognition principal dictates that all types of incomes should be
recorded or recognized when (c)
a) Cash
is received
b) At
the end of accounting period
c) When
they are earned
d) When
interest is paid
39.The allocation of owner's private expenses to
his/her business violates which of the following? (c)
a) Accrual concept
b) Matching concept
c) Separate
business entity concept
d) Consistency concept
40.The
going concern concept assumes that (a)
a) The
entity continue running for foreseeable future
b) The entity continue running
until the end of accounting period
c) The entity will close its
operating in 10 years
d) The entity can't be liquidated
41.Which of
the following is time span into which the total life of a business is divided
for the purpose of preparing financial statements? (C)
a) Fiscal year
b) Calendar year
c) Accounting period
d) Accrual period
42.Showing
purchased office equipments in financial statements is the application of which
accounting concept? (B)
a) Historical
cost convention
b) Materiality
c) Prudence
d) Matching
concept
43.Information about an item is
if its omission
or misstatement might influence the financial decision of the users taken on
the basis of that information (d)
a) Concrete
b) Complete
c) Immaterial
d) Material
44."Financial information should be neutral and
bias free" is the dictation of which one of the following? (c)
a) Completeness concept
b) Faithful
representation Concept
c) Objectivity Concept
d) Duality Concept
45.Accounting principles are
divided into two types. These are --- (d)
a) Accounting Concepts
b) Accounting Conventions
c) Accounting Standards
d) Accounting
Concepts &Accounting Conventions
46.Which of the following is not related with Money
Measurement Concept ? (b)
a)
All business transaction should be expressed
only in money
b)
The transactions which cannot be expressed in
money, will not be recorded in accounting books
c)
Business is treated as separate from the proprietor
d)
None of These
47.Which of the following equation is
related with Dual Aspect Concept ? (d)
a) Total
Assets = Total Liabilities
b) Total
Assets = Capital + Outsider’s Liabilities
c) Capital
= Total Assets - Outsider’s Liabilities
d) All
of the above
48.If the total assets of the company amount to Rs
1,50,000 and owner’s equity is Rs 70,000,the amount of liabilities will be – (B)
a) Rs 70,000
b) Rs 80,000
c)
Rs 90,000
d) Rs 1,00,000
49.The system of recording
transaction based on dual aspect concept is
called(B)
a)
Double account system
b)
Double entry system
c)
Single entry system
d)
None of these
50.The
practice of appending notes regarding contingent liabilities in accounting
statement is pursuant of (C)
a) Convention
of consistency
b) Money
measurement concept
c) Convention
of conservatism
d) Convention
of disclosure
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