1.
Profit from sale of assets is example for – (B)
a)
Revenue Profit
b)
Capital Profit
c)
Loss
d)
None of these
2.
Depreciation is a charge against – (A)
a) Profit
b)
Assets
c)
Company
d)
Books of A/c
3.
Which expenses is a Capital Nature? (A)
a) Depreciation
b)
Wages
c)
Salary
d)
Stationary
4.
Balance Sheet is a statement of……………. (D)
a)
Assets
b)
Liabilities
c)
Capital
d)
All of these
5.
Accounting is the process of matching…….. (B)
a)
Benefits & Costs
b) Revenues
& Costs
c)
Cash Inflow & Cash Outflow
d)
Potential & Real Performance
6.
Which one of the following is not an example of Intangible Assets? (D)
a)
Patents
b)
Trade Marks
c)
Copyright
d)
Land
7.
The prime function of accounting is
to (C)
a)
To record economic data
b)
Provide the information basis of action
c) Classifying
and recording business transaction
d)
Attainment of economic goal
8.Bad debt amount should be credited to (a)
a) Debtors account
b) Bad
debts account
c) Sales account
d) Creditors account
9.Identify which is wrong
rule (B)
a) Nominal
account- debit all expenses & losses
b) Real
account- credit what comes in
c) Nominal
account- credit all incomes & gains
d) Personal
account- debit the receiver
10. Return of
goods by a customer should be debited to
(B)
a) Customers account
b) Sales
return account
c) Goods account
d) Purchase
account
11.Sales made to Mahesh for
cash should be debited to (a)
a) Cash account
b) Mahesh Account
c) Sales account
d) Purchase account
12.Rent
paid to landlord should be credited to (C)
a) Landlords account
b) Rent account
c) Cash account
d) Expense account
13.Cash
discount allowed to a debtor should be credited to (b)
a)
Discount account
b)
Customer’s
account
c) Sales account
d) Cash account
14.Which of the following is a Real
A/c? (a)
a) Building A/c b) Capital A/c c)
Shyam A/c d) Rent A/c
15. Which of the following is not a nominal Account? (A)
A] Outstanding salaries Account B] Salaries account C] Interest paid D] Commission received
16. Mr. X is a dealer in electronic goods (refrigerator,
washing machine, air conditioners, televisions, etc.) He purchased two air
conditioners and installed in his showroom. In the books of X the cost two air
conditioners will be debited to (C)
A] Drawing account B]
Capital Account C] Fixed assets D]
Purchases account
17. A trader calculated his profit as Rs.150000 on
31/03/2014. It is an (B)
A] Transaction B] Event
C] Transaction as well as event D] Neither transaction nor event
18. For every debit there will be an equal credit according
to (D)
A] Matching concept B] cost concept
C] Money measurement concept D]
Dual aspect concept
19. Historical cost concept requires the valuation of an
asset at (A)
A] Original cost B]
Replacement val ue
C] Net realizable value D]
Market value
20. The comparison of financial statement of one year with
that of another is possible only when----- concept
is followed (C)
A] Going concern B]
Accrual
C] Consistency D]
Materiality
21. Profit and loss is calculated at the stage of (d)
A] Recording B] Posting
C] Classifying D]
Summarising
22. Which of the following is not the main objective of
accounting? (d)
A] Systematic
recording of transactions B]
Ascertaining profit or loss
C] Ascertainment of financial position D] Solving tax
disputes with tax authorities
23. An asset was purchased for Rs.1000000 with the down
payment of Rs.200000 and bills accepted for Rs.800000/ -. What would be the
effect on the total asset and total liabilities in the balance sheet? (D)
A] Assets increased by Rs.800000 and liabilities decreased by
Rs.800000 B] Assets decreased by Rs.800000 and liabilities increased by
Rs.800000 C] Assets increased by Rs.1000000 and liabilities increased by
Rs.800000 D] Assets increased by Rs.800000 and liabilities in creased by
Rs.800000
24. The rule debit all expenses and losses and credit all
income and gains relates to (c)
A] Personal account B]
Real account C] Nominal accounts D] All
25. Matching concept means (D)
A] Assets = capital + liabilities B] Transactions recorded at accrual concept
C] Anticipate no profit but recognize all losses
D] Expenses should be matched with the revenue of the period.
26.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
27.The
nature of financial accounting is: (a)
a) Historical
b) Forward looking
c) Analytical
d) Social
28. 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
29.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
30. Sales
are equal to: (a)
a. Cost
of goods sold + gross profit
b. Cost of goods sold - gross profit
c. Gross profit- Cost of goods sold
d. None of the above
31.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
32. Goods given as samples should
be credited to: (c)
a. Advertisement account
b. Sales account
c. Purchase account
d. None of the above
33.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
34.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
35.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
36.Creating provision
against fluctuation in the price of investment is application of accounting
concept (A)
a)
Convention of conservatism
b)
Convention of full disclosure
c)
Convention of consistency
d)
None of these
37.Accountant should follow the
same principles of accounting continuously is as per which accounting convention (C)
e)
Convention of conservatism
f)
Convention of full disclosure
g) Convention
of consistency
h)
None of these
38.
Accounting principles are …………………………. which are adopted by the accountant
universally while recording accounting transaction. (A)
a)
Rules of action or conduct
b)
Which u can change as per accountant
c)
Which keep changing every year
d)
None of these
39.The convention of disclosure
implies that all material information should
be (A)
a)
Disclosed in the account
b)
Disclosed in the accounts which is required to owner
c)
Not disclosed
d)
None of these
40.In accounting
all business transaction are recorded as having (b)
a)
Single aspect
b)
Dual aspect
c)
Triple aspect
d)
None of these
41.Custom
and traditions which guide the accountant while preparing the accounting
statements (c)
a)
Accounting convention
b) Accounting concepts
c)
Accounting principles
d)
None of these
42.Rules of action or
conduct adopted by the accountants universally while recording accounting transaction (c)
a)
Accounting convention
b)
Accounting concepts
c) Accounting principles
d)
None of these
43.Basic assumptions or conditions
upon which the science of accounting is based.
(b)
a)
Accounting convention
b) Accounting concepts
c)
Accounting principles
d)
None of these.
44.A system
in which accounting entries are made on the basis of amounts having become due
for payment or receipt is called (b)
a)
Cash concept
b)
Accrual concept
c)
Matching concept
d)
On-going concept
45.Debit the receiver credit the
giver rule for (c)
a. Real a/c
b. Personal a/c
c. Nominal a/c
d. None of these
46.Outstanding
salary account is a account (d)
a. Nominal account
b. Real Account
c. Artificial
person’s account
d. Representative
personal account
47. is a summary of all transactions
relating to particular account. (c)
a. Balance sheet
b. Trial Balance
c. Ledger
d. Journal
48. The
transferring of debit and credit items from journal to the respective accounts
in the ledger is called as Ledger (A)
a)
Posting
b)
Forward
c)
journal
d)
None of these
49. A book
containing a chronological record of business transaction & original record(A)
a. Journal
b. Ledger
c. Trial balance
d. None of these
50.Transferring the debit and
credit item from the journal to the respective accounts is called(B)
a. Compound Journal
b. Ledger
c. Trial balance
d. None
of these
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