1.
Financial accounting is concerned with – (C)
a)
Recording of business expenses and revenue
b)
Recording of costs of products and services
c)
Recording
of day to day business transactions
d)
None of the above
2.
The nature of financial accounting is: (A)
a)
Historical
b)
Forward looking
c)
Analytical
d)
Social
3. The process of
recording financial data upto trial balance is (A)
a) Book
keeping b) Classifying c) Summarising d) Analyzing
4.Accounting principles are
generally based upon: (A)
a) Practicability
b) Subjectivity
c) Convenience
in recording
d) None
of the above
5.The system of recording based
on dual aspect concept is called: (B)
a) Double
account system
b) Double
entry system
c) Single
entry system
d) All
the above
6.The
practice of appending notes regarding contingent liabilities in accounting
statements is in pursuance to: (D)
a) Convention
of consistency
b) Money
measurement concept
c) Convention
of conservatism
d) Convention
of disclosure
7.Which accounting concept satisfy
the valuation criteria (a)
A] Going
concern, Realisation, Cost b)
Going concern, Cost, Dual aspect
c) Cost,
Dual aspect, Conservatism d)
Realisation, Conservatism, Going concern.
8.Interest on drawings is: (C)
a) Expenditure
for the business
b) Cost
for the business
c) Gain
for the business
d) None
of the above
9. Goods given as samples should be
credited to: (c)
a) Advertisement
account
b) Sales
account
c)
Purchase
account
d) None
of the above
10.Outstanding salaries are shown as: (c)
a) Added
to Salaries while preparing P & La/c
b) Shown
in liability side of Balance sheet under current Liability
c)
(a)&(b)
above
d) None
of the above
11.Income tax paid by a sole
proprietor on his business income should be:
(c)
a) Debited
to trading account
b) Debited
to profit and loss account
c)
Deducted
from capital account in the balance sheet
d) None
of the above
12.All direct & indirect expenses related to business
are charged: (c)
a) Profit
and loss account
b) Trading
account
c)
Trading
account Profit and Loss account
d) Directly
to Balance sheet
13.In income measurement & recognisation of assets &
liabilities which of the following concepts goes together ? (A)
(a) Periodicity,
Accural, Matching
(b) Cost,
Accural, matching
(c) Going
concern, cost, Realization
(d) Going
concern, Periodicity, Reliability
14. Interpretation
means (A)
(a) Explanation
of meaning and significance of the data in Financial Statements.
(b) Concerned
with preparation and presentation of classified data
(c) Systematic
analysis of recorded data
(d) Methodical
classification of data given in Financial Statements.
15.The books to be compulsorily maintained by a company are: (D)
a) Cash
book and ledger
b) Sales
and purchase book
c) Journal
d)
All of
the above
16.Carriage outward is charged to (A)
a)
Debit
side Profit & Loss a/c
b) Debit
side Trading a/c
c) Credit
side of Profit & Loss a/c
d) Credit
side of trading a/c
17.Cash Purchases: (C)
a) Increases
assets
b) Results
in no change in the total assets
c)
Decreases
assets
d) Increases
liability
18.Purchases of goods on credit from A is recorded as: (c)
a) Debit
purchases a/c; credit cash a/c
b) Debit
A a/c ;credit purchases a/c
c)
Debit
purchases a/c ; credit A a/c
d) Debit
A a/c ; credit stock a/c
19.Which of the following is not an example of real a/c: (D)
a) Machinery
b) Building
c) Cash
d)
Creditor
20.Payment received from debtor: (C)
a) Decreases
the total assets
b) Increases
the total assets
c)
Results
in no change in total assets
d) Increase
the total liabilities
21.Payment of salary is recorded by: (A)
a)
Debiting
salary a/c; crediting cash a/c
b) Debiting
cash a/c; crediting salary a/c
c) Debiting
employee a/c ; crediting cash a/c
d) Debiting
employee a/c ; crediting salary a/c
22.Cost of asset should always be equal to the cost of the liabilities.
This concept is (B)
a) Double
Entry Bookkeeping
b)
Matching
Concept
c) Consistency
d) Money
measurement Concept
23.Which of the following is not a fixed asset? (B)
a) Building
b)
Bank Balance
c) Plant
Patents
d) Goodwill
24.The basic concepts related to p& l a/c are: (D)
a) Realization
Concept
b) Matching
Concept
c) Cost
Concept
d)
Both a
and b above
25.P& l a/c is prepared for a period of one year by following: (C)
a) Consistency
concept
b) Conservatism
concept
c)
Accounting
period concept
d) Cost
Concept
26.Insurance prepaid is shown as: (A)
a)
Current assets
b) Current
liabilities
c) Fixed
asset
d) Fixed
liability
27.Outstanding salary is shown as: (D)
a) An
asset in the balance sheet
b) A
liability
c) By
adjusting it in the P & L a/c
d)
Both b
and c above
28.Reserve for doubtful debts appearing in the trial balance
should be:(D)
a) credited
to P & L a/c
b) Shown
as liability side in balance sheet
c) Reduced
from related asset in the balance sheet
d)
Both a
and c
29.All those to whom business owes money are: (C)
a) Debtors
b) Investors
c)
Creditors
d) Shareholders
30.According to which concept business is treated as a unit
apart from owner (c)
a) Dual
concept
b) Divider
concept
c)
Entity concept
d) Landlord
concept
31.Authorized capital, also known as (a)
a)
Nominal capital
b) Paid
up capital
c) Issues
capital
d) None
of these
32.True & fair profit and loss a/c of a company know by (D)
a) Preparing
trial balance
b) Preparing
respective ledger of account
c) Preparing
trading a/c
d)
Preparing
trading & profit & loss a/c
33.A trader has made a sale of Rs.75,500 out of which cash
sales amounted to Rs.25,500. He showed trade receivables on 31 -3-2014 at
Rs.25,500. Which concept is followed by him? (c)
a) Going concern b) Cost c) Accrual d) Money measurement
34. The proprietor
of the business is treated
as creditor for the capital introduced by him due to concept.
a) Money measurement b) Cost c)
Entity d) Dual aspect
34. Fixed assets are held by business for (b)
a) Converting into cash b)
Generating revenue c) Resale d) None of the above
35. Which accounting concept specifies the practice of crediting closing
stock to the trading account? (d)
a) Cost b) Realisation c) Going
concern d) Matching
36. Amount spent to increasing the earning capacity is a
---------expenditure (a)
a) Capital b) Revenue c)
Deferred revenue d) Capital Loss
37. Change in the capital A/c of proprietor
may occur due to -----------
(d)
a) Profit earned b) Loss incurred
c) Capital Introduced d) All of the above
38. Consistency with reference to
application of accounting procedures means (c)
a) All companies in the same Industry should
use identical accounting procedures
b) Income & assets have not been overstated
c) Accounting methods & procedures shall be followed
uniform basis year after year
d) Any accounting method can be
followed as per convenience
39. If one of the cars purchased
by a car dealer is used for business
purpose, instead of resale,
then it should be recorded by (c)
a) Dr Drawing A/c & Cr
Purchases A/c b) Dr Office Expenses A/c & Cr Motor Car A/c
c) Dr Motor Car A/c & Cr
Purchases A/c d) Dr Motor Car & Cr Sales A/c
40. If wages are paid for construction of business premises A/c is credited and
A/c is debited. (d)
a)
Wages, Cash b) Premises, Cash c) Cash, Wages d) Cash, Premises
41. Human resources will not appear
in the balance sheet according to ----------concept.(c)
a)
Accrual b) Going concern c) Money measurement concept d) None
42.Under which concept it is assumed that the enterprises
has neither the intention nor the necessity of liquidation or of curtailing
materiality the scale of operation (b)
a) Revenue
realization concept
b) Matching
cost concept
c) Going
concern concept
d) None
of these
43.Making the provision for doubtful debts and discount on
debtors in anticipation of actual bad debts
and discount is an example for which concept (a)
a) Conservatism concept
b) Continuity concept
c) Realization concept
d) All
of these
44.Financial accounting use
data (c)
a) Projected data
b) External
data only
c) Historic data
d) Manager
data only
45.Payment received from Debtor (c)
a) Decreases
the Total Assets
b) Increases
the Total Assets
c) Results
in no change in the Total Assets
d) Increases
the Total Liabilities
46.Journal Entries are known as book of Entry. (a)
a) Original
b) Duplicate
c) Personal
d) Nominal
47.What comes in is to be debited, what goes out is to be credited. (B)
a) Rules
of Personal
b) Rules
of Real
c) Rules
of Nominal
d) All
of these
48. Which of the following account balance will be shown on
debit side of Trial Balance?(d)
a) Outstanding expenses
b) Cash
a/c
c) Short
term loan
d) creditors
49.The reduction in the value of the fixed assets which can
arise due to time factor is(B)
a) a)Discount
b) Depreciation
c) c)Reduction
d) None
of the above
50.If closing stock appears in the trial balance, it should be (A)
a) Credited
to the trading account
b) Credited
to the profit and loss account
c) Deducted
from the purchases in the trading account
d) Shown
on the liability side of the Balance sheet
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