1.The type or
branch of accounting that generates reports for the use of external parties
such as creditors, investors and government agencies is known as: (A)
a.Financial
Accounting b.Managerial
Accounting c.Tax Accounting d.Forensic Accounting
2.
The branch of accounting that generates reports and information for the use of
internal management is known as: (B)
a.Tax Accounting b.Managerial
and management accounting c.Auditing d.International Accounting
3) Outstanding expenditure is a __________ account. (B)
a) Nominal b) Personnel c) Current d) Real
4) _________ deals with the depreciation account. (B)
a) AS78 b) AS6 c) AS18 d) AS16
5) According
to which concept, proprietor of a business is treated as a creditors to the
extent of his
Capital (B)
a).Dual aspect
b). Business entity c). Money
measurement d).Cost
6) Which one
of the following is not an external user of accounting information?(C)
a). Creditor b). Customer c).Manager d). Investor
7) Net worth
of business means (A)
a) Total
assets – total liabilities b)
Fixed assets – current assets.
c) Equity
capital d)
Total assets
8) The policy
of anticipate no profit and provide for all possible losses arises due to (D)
a) Convention
of materiality b) Convention
of full disclosure
c) Convention
of consistency d) Convention of conservatism
9) Capital
account is a (D)
a) Fictitious
account b) Nominal account c) Real account d) Personal account
10) Revenue
is generally recognized as being earned at the point of time (A)
a) Sale is
effected b) Cash is
effected c) Production is completed d) All of the above
11) The
fundamental accounting equation Assets = liabilities is the formal expression
of (D)
a) Matching
concept
b) Entity
concept
c) Going
concern concept
d) Dual
aspect concept
12)
Depreciation is (D)
a) An accounting
necessity only b) Tax
necessity only
c) Tax and
accounting necessity d)
Tax, account and audit necessity
13) ‘Every
debit has a corresponding credit’ it is the concept of (D)
a) Incomplete
records b) Cost sheets c) Single entry system d) Double entry system
14) Bank loan
account is a ______ (C)
a) Real
account b) Nominal
account c) Personal account d) Current account
15) The
process of recording transactions in a journal is known as _______ (A)
a)
Journalizing b) Journal c) Posting d) Journal entry
16)
Accounting records transactions in term of (C)
a) Commodity
units b) Production units c) Monetary units d) Expense units
17) Income
received in advance by a business units is (A)
a) A
liability b) An assets c) A loss d) Gain
18)
Expenditure incurred by a publisher for acquiring copyright is a (B)
a) Deferred
revenue expenditure b)
Capital expenditure
c) Revenue
expenditure d)
Assets
19) Prepaid
expenses appearing in trial balance will appear in _____ (C)
a) Profit and
loss account debit side b) Profit and
loss account credit side
c) Balance
sheet asset side d)
Balance sheet liability side
20) Net
profit / loss is transferred to the ______ account (C)
a) Asset
account b)
Liabilities account c) Capital account d) None of these
21) All
________ expenses are recorded in the trading account (D)
a) Indirect b) Direct c)
Direct and indirect d) None of these
22) ________
expenses are shown in the profit and loss account (A)
a) Indirect b) Direct c)
Direct and indirect d) None of these
23)In the
books of consignee the sale of goods is credited to: (A)
(a). consignor’s account (b). sales account (c). consignee’s account d)None of the above
(a). consignor’s account (b). sales account (c). consignee’s account d)None of the above
24) An
expenditure incurred to derive long term advantage is (C)
a) Revenue
expenditure b) Expense c) Capital expenditure d) Deferred capital expenditure
25) In
accounting only ________ discount is recorded (B)
a) Trade b) Cash c) Real d) None of these
26) Debit
balance of all personal accounts are collectively called (B)
a) Sundry
creditors b) Sundry debtors c) Personal account balance d) Total of personal accounts
27) Discount
on issue of share is (A)
a) Capital
loss b) Revenue loss c) Capital expenditure d) Revenue expenditure
28) Trial
balance will detect (A)
a) Errors of
commission b) Errors of omission c) Errors of principle d) Compensating errors
29) Machinery
purchased on account is recorded in (A)
a) Journal b) Ledger c) Purchase book d)
Cash book
30) The error
disclosed by Trial Balance is (A)
a) Wrong
amount posted in ledger account b)
Error of principle
c) Non‐
recording of a transaction in the books of original entry d) Errors of omission
31) Cash
discount is allowed by (C)
a) Wholesaler b) Debtor c)
Creditor d) Retailer
32) Rent
prepaid is (A)
a) Assets b) Liability c) Income d)
Expense
33) Closing
stock given in the trial balance will be taken to (D)
a) P&L
account only b)
Income and expenditure account only
c) Trading
account only d)
Balance sheet only
34)Goods sent
on consignment should be debited by consignor to: (A)
a). consignment account b). goods sent on consignment account
c). consignors account d)none of these
a). consignment account b). goods sent on consignment account
c). consignors account d)none of these
35) Sale of
grass in the case of a sports club is (B)
a) An assets b) Revenue receipt c) Capital receipt d) Income
36) In income
& Expenditure accounts, we record (B)
a) Items of
capital nature alone b)
Items of revenue nature alone
c) Both d)
Items of expenditure
37) Double
entry system was propounded by (D)
a) Chanakya b) Lee c) Confucius d)
Luca Pacioli
38) Treatment
of capital expenditure as revenue expenditure is (A)
a) Errors of
principle b) Compensating errors c) Errors of commission d) Errors of omission
39) In non –
profit organizations excess of assets over liabilities is called (B)
a) Capital
block b) General
fund c) Shareholders
fund d) Capital
40)
Collection of all accounts us called (C)
a) Trial
balance b) Journal c) Ledger d) Cash book
41) Source
document for sales returns (B)
a) Debit note b) Credit note c) Source note d) Journal
42) Petty
cash book is prepaid under ______ system (B)
a) Cash b) Imprest c) Credit d)
Mercantile
43) Gross
assets – liabilities will be equal to (C)
a) Net assets b) Total assets c) Capital d) Net
liabilities
44) Purchase
ledger contains the accounts of (B)
a) Debtors b) Creditors c) Total purchase d)
All the above
45) Allowance
made for prompt payment is called (B)
a) Cash
allowance b) Cash discount c) Trade discount d) Discount
46) Special
journal is also called (B)
a) Journal
proper b) Subsidiary
books c) Original books d) Ledger
47) Sales
ledger contains accounts of (A)
a) Suppliers b) Customers c) Total sales d) All the
above
48) Credit
note is sent by (A)
a) Seller b) Customer c) Buyer d) Borrower
49) Total
sales book indicates (A)
a) Total
credit sales b) Total cash sales c) Total sales d) All the above
50) Total
sales made during a year is found out from the (B)
a) Sales book b) Sales account c) Total sales book d) All the above
51) Sales
return account is a _______ account (B)
a) Personal b) Nominal c)
Real d) Current
52) Debit
note is prepared in connection with (D)
a) Sales
return b) Purchase return c) Sales d)
Purchase
53) Cash
purchase of fixed asset is entered in the (C)
a) Purchase
book b) General ledger c) Cashbook d) Purchase account
54) Normally
value of closing stock ________ in the trial balance (B)
a) Appears b) Does not appear c) May or may not appear d)
Sometime appear
55) Cost of
goods sold plus selling expenses equals (B)
a) Cost of
production b) Gross profit c) Sales d) Cost of sales
56) Trading
account is a _______ account (C)
a) Personal b) Real c)
Nominal d) Expenses
57) 1/6
profit on sales means ________ on cost (B)
a) 1/6
b) 1/5
c) ¼
d) 1/3
58) In sole
trader balance sheet asset are arranged in the order of (A)
a) Liquidity b) Permanence c) Transferability d) All the above
59) ________
is an expenditure which does not bring any benefit to the concern (D)
a) Revenue
expenditure b) Capital expenditure c) Deferred revenue expenditure d) Loss
60) Asset
which reduce is value, on use, but are not replaced is called (D)
a) Contingent
assets b) Fictitious assets c) Intangible assets d) Wasting assets
61)Unearned
income is a (B)
a) Asset b) Liability c) Expense d) Income
62) Prepaid
expenses are ______ account (C)
a) Real b) Personal c) Personal account without name d) Nominal
63) Unexpired
expenses is a _______ (C)
a) Liability b) Income c)
Asset d)
Expenditure
64) Income
and expenditure account is the ______ account of a non trading concern (A)
a) P & L
account b) Balance
sheet c) Ledger d) General
65) Receipts
and payment account contains (C)
a) Only
receipts and payment of current year b)
Income and expenditure
c) All
receipts and payments d)
All the above
66) Balance
of receipts and payments account represents (B)
a) Surplus b) Cash in hand or at bank c) Deficit d) Reserve
67) Income
and expenditure account is a ________ (C)
a) Real b) Personal c) Nominal d)
None of these
68) Any
profit on sale of a cricket bat of a club will be taken to ________ (D)
a) Balance
sheet liability side b) Income
and expenditure debit side
c) Balance
sheet assets side d)
Income and expenditure( credits side)
69)
Educational institutions are (B)
a) Wealth organizations b) Non profit organizations c) Profit organization d) Social organization
70) Purchase
of assets are entered in nonprofit organization’s book is called (A)
a) Stock
register b) Purchase register c)
Asset register d)
Cash register
68) Receipts
and payment account is a ________ account (B)
a) Personal b) Real c)
Nominal d) General
71) In a non
profit organizations cashbook shows________ in its debit side (C)
a) Assets b) Liabilities c) Receipts d) Payment
72) Receipts
and payment account begins with opening balance of (A)
a) Cash b) Payments c) Creditors d)
Receipts
73) Receipts
and payment accounts includes all receipts and payments of (A)
a) Revenue nature b) Capital nature c) Cash nature d) None of these
74) Receipts
and payment accounts records all receipts and payments of (D)
a) Current
year b) Previous
year c) Subsequent
year d) All of these
75)A bills of
exchange includes (B)
a)A request
to pay b)An order to pay c)A promise to pay d)all the above
76)What is
the person known as who draws a bill of exchange (C)
a)Payee b)Drawee c)Drawer d)Endorsee
77)What kind
of acceptance is known as when the bill is accepted without any condition
(A)
a)General
acceptance b)conditional
acceptance c)blank
acceptance d)qualified acceptance
78) 83) The
system of keeping incomplete record is termed as (B)
a) Double
entry system b)
Single entry system c) Original
entry system d)
journal entry system
79) Opening
statement of affairs is prepared to find out (B)
a) opening profit b) opening capital c) opening assets d) opening liability
80) In
capital comparison method gross profit= (D)
a) excess of
opening capital over closing capital b)
excess of income over expenditure
c) excess of
sales over purchase d)
excess of closing capital over opening capital
81) Creditors
account is prepared to ascertain (C)
a) credit
sales b) cash sales c) cash purchases d) credit purchases
82) To find out
credit sales which account should be prepared (D)
a) purchases
account b) creditors account c) sales account d) debtors account
83) Bills
receivable as endorsed is debited to (B)
a) bills
receivable account b)
creditors account c) debtors account d) bills payable account
84) Bills
payable honored during the year will be debited to ______ (A)
a) bills
payable b)
creditors c) bills
receivable d) cash
account
85) Cash paid
to creditors + closing creditors – opening creditors = (D)
a) total
purchase b) cash
purchase c) total
debtors d) credit
purchases
86)Incomplete
records are maintained usually by a (B)
a) company b) sole trader c) government d)
partnership firm
87) 125) As
per the cost of concept an asset is recorded at its (B)
a) market
cost b) actual cost c) normal cost d) purchase cost
88)Which book
the work classification is done (A)
a) ledger b) trial balance c) balance sheet d) Journal
89)
A person who owes money to the firm is called (C)
a) Owners b) Creditors c) Debtors d)
Bankers
90) Debit the
losses and expenses and credit the gain and income is applicable to ______ (B)
a) Personal
account b) Nominal account c) Real account d) Owners account
91) ) Return
outwards book is known as (A)
a) Purchase
return journal b) Sales
return book c) Purchase from outsiders d) Return inwards
92)Bank
reconciliation statement description is composed of (B)
a)Bank
accountant b)business
accountant c)business manager d)controller of the bank
93)on the
bank statetment,cash deposited by the company is known as (C)
a)Liability b)Debit c) Credit d) Expenses
94) In Cash
book the favourable balance indicates
(A)
a)Debit
balance b) Credit
balance c)Bank OD d) Adjusted balance
95)Joint
venture account is a _______ account (B)
a) personal b) Nominal c) Real d)Current
96) In the
books of consignee th sale of goods is credited ---------------------account (C)
a)Cosignees
a/c b)Sales a/c c)Consignors a/c d) non of them
97) Goods
sent on consignment should be debited by consignor to ---------account (A)
a)Consignment
a/c b) Goods sent on
Consignment a/c c)
Consignors a/c d)None
of them
98)Consignment
account is ____account (B)
a) personal b) Nominal c) Real d)Current
99) A
cashbook which contain only one column is (C)
a) Three
column cashbook b) Double column
cashbook c) Simple cashbook d) Petty cashbook
100)Journal
entries passed to correct the errors are called (Cs)
a) Adjusting
entry b) Opening entries c) Rectifying entry d) Closing entry
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