ACCOUNTING AND BUSINESS ORGANISATION TEST FOR I
B.COM STUDENTS
Total
Marks: 50
Section-I
Fill in the Blanks with correct answers. Each
carries 1 marks. 20X1=20
1._______________ is a method of accounting in which
only cash and personal accounts are recorded or stored.
Ans). Single entry system
2. Accounting Equation is affected by each
transaction in the ________________system.
Ans). Double-entry accounting
3. The process of recording financial data upto
trial balance is
_______________
Ans).Book keeping
4. The proprietor of the business is treated as
creditor for the capital introduced by him due to_____ concept.
Ans).Business Entity
5. Sales – Gross Profit = ________
Ans).Cost of Goods sold
6. As per the Matching concept, Revenue –_______________=
Profit
Ans).Expenses
7. Capital A/c is a _______ A/c.
Ans) Personal
8. Cash A/c is a ________ A/c.
Ans).Real
9. The rule debit all expenses and losses and credit
all income and gains relates to
Ans) Nominal
10. Bad Debts A/c is ___ A/c
Ans).Nominal
11.The element that aims at integrating group
efforts to achieve group objectives is called ________.
Ans) Coordination
12. _________ means one plan, one boss.
Ans).Unity of
direction
13. Organisation structure establishes relationships
between
People,____________and reources.
Ans).Work
14.Legal rules and regulations relevant to business
are included in _______________ environment of business.
Ans). Legal
15. __________ cannot be delegated.
Ans) Accountability
16. _________ is the right to command.
Ans).Authority
17. ____________ is the market which helps existing
investors to sell their securities.
Ans). Secondary Market
18.A sole trader has ___________liability.
Ans).Limited
19.____________members can form a public limited
company.
Ans).7
20.Purchase and sale of goods and services is
called___________
Ans).Trade
Section II
Give one word answers to the
following questions. Each carries 1 marks. 20X1=20
1.Which accounting concept tells that to recognize
revenue it has to be realized?
Ans)
Realization
2.
Mines
quarries is the example of which type of assets.
Ans) Wasting Assets
3.
A
process of accounting that recognizes the impact of transactions on the
financial statements in the time periods when revenues and expenses occur
instead of when cash is received or disbursed is called which basis?
Ans)Accrual
4.Which commission is paid to the consignee over and
above the ordinary commission?
Ans)Over riding commission
5). Long term assets
without any physical existence but, possessing a value are called?
Ans)
Intangible assets
6. Net profit is calculated in which account?
Ans).Profit and loss A/c
7. If a trial balance
totals do not agree, the difference must be entered in which Account?
Ans) A Suspense A/c
8.What is defined as permanent and
continuing diminution in the quality,quantity or value of the asset?
Ans) Depreciation
9.The person who draws a bill is
called?
Ans) Drawer
10) The relationship between a
consignor and consignee is not seller and buyer but what?
Ans) Principal and Agent
11.Who prepares Account sales?
Ans) Consignee
12 Which form of business follows “One
man One Vote” is the principle?
Ans)
Cooperative society
13. Name the person who manages a
Hindu Joint Family business?
Ans) Karta
14.Which capital is called Risk
Capital?
Ans) Equity share capital
15.Which type of company cannot invite
public for subscription of shares?
Ans) A Private Company
16.Which document is called as
Constitution of the company?
Ans) MOA
17.Which document frames rules and
regulations for internal management of a company?
Ans)AOA
18.Which level of management is
concerned with implementation of policies.
Ans) Middle level
19.Which partner can not share profits
of partnership business.?
Ans)Nominal
20.Trade between two countries is
known as?
Ans)External Trade
Section III
Answer the following questions. Each carries 2
marks. 5X2=10
1. What is the concept of accrual?
Answer: Under this concept, the outstanding expenses
are added to the related expenses which have been paid, and the outstanding
revenues are added to the related revenues which have already been received
during the accounting year concerned.
2. What is the
Conservatism Principle?
Answer: According to this principle, all
possible losses have to be estimated and recorded in the books of accounts, but
the potential gains cannot be recorded in the books of accounts.
3. What is Ledger?
Answer: The book in which a trader’s transactions
are recorded in a classified permanent form is called the ledger.
4. What is Stock Exchange?
Answer: According to Securities Contracts
(Regulation) Act, 1956, ‘Stock exchange means anybody of individuals, whether
incorporated or not, constituted for the purpose of assisting, regulating or
controlling the business of buying and selling or dealing in securities.’
5. What is Management?
Answer: Management is defined as the process of
planning, organising and controlling an organisation's operations in order to
achieve the target efficiently and effectively. It is essential for all
organisations.
