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Hybrid method of accounting means -----

When transactions are recorded on cash basis

When transactions are recorded on due basis

When revenue or expenditure are recorded on cash and mercantile basis

None of the above

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Question 2

A company may follow -----

Cash basis of accounting

Mercantile basis of accounting

Hybrid method of accounting

None of these

Under accounting conventions, conservatism means -----

All future profits or losses are recognised

All future profits are taken into account during the current year

All future losses are accounted for

Future losses are totally ignored

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Question 5

Which one of the following is not correct as per the principles of double
entry ?

Debit the receiver

Credit what comes in

Debit the expenditure

Credit all liabilities

Mr. A, customer directly deposited Rs.1,500/- into firm's bank account. The
same is -----

Recorded in bank column on the debit side of cash book


Recorded in bank column on the credit side of cash book

Recorded as contra entry

Ignored

Which one of the following is true ?

Receipt of Rs. 1 Lac as award for the innovation is a transaction

Increase in the market value of shares is a transaction

Receipt of certificate for the innovation is a transaction

Increase in the prices of raw material is a transaction

Which of the following is not part of floating assets ?

Debtors

Copyrights

Land and building

Both (b) and ( c) above

All personal balances are transferred to Trading and Profit & Loss Account at the end of each
financial year, is it true ?

It is false

It is true

No effect is given

None of these

Question 12

How many parties are there in the bill of exchange ?

Three parties

Four parties

Five parties

None of the above


A promissory note is written by -----

Creditor

Debtor

Seller

Payee

Final accounts are prepared to show -----

Business results

Financial position

Business results and financial position

Balances of general ledger

How the "Closing Stock" is shown in final accounts ?

Debit side of trading account and asset side of balance sheet

Credit side of the trading account and liabilities side of balance sheet

Credit side of trading account and asset side of balance sheet

Credit side of trading account

Which of the following is true ?

Nominal account cannot be transferred to balance sheet

Balance sheet is an account

Carriage inward is debited to profit and loss account

Closing stock is always valued at cost price

Payment of Rs.35,000/- to Mr. A for goods purchased from him on credit is -----

Capital expenditure

Revenue expenditure

Deferred revenue expenditure

Discharge of liability

Receipt of Rs.1,000/- on account of sale old


tyers of the car is -----
Capital receipt

Revenue receipt

Receipt against dues

Deferred revenue receipt

Bad debts recovered (written off in the same year) are recorded as -----

Debtors account debit and bank account credit

Bank account debit and debtors account credit

Bank account debit and bad debts account credit

Debtors account debit and bad debts account credit

Bad debts recovered (written off in the same year) are recorded as -----

Debtors account debit and bank account credit

Bank account debit and debtors account credit

Bank account debit and bad debts account credit

Debtors account debit and bad debts account credit

LAN/WAN is used by -----

Single user

Double user

Multiple users

Limited users

Question 21

When share applications are received, what accounting entry is recorded ?

Debit bank account and credit share capital account

Debit bank account and credit share allotment account

Debit bank account and credit share application account

Debit bank account and credit share adjustment account


Which of the conditions for issue of non-voting equity shares is applicable ?
Issue of non-voting equity shares shall be authorised by the Articles of
Association of the company and approved by the shareholders at their general
body meeting by passing a special resolution
Such shareholders are entitled to all rights and bonus shares but do not enjoy
voting rights
Only 25% of the paid-up capital of the company can be issued as equity shares
without voting rights

All of the above

Which of the following is not part of "Fixed Assets" in a company balance


sheet ?

Goodwill

Stock in trade

Patents, trademarks and designs

Plant and machinery

Which of the following is an advantage of a lease contract not relating to


lessee ?

Reduction in capital investment

Increase in borrowing capacity

Tool of tax planning

Reduction in tax liability

Which of the following statements of lease contract is false ?

The owner of the asset is known as lessor

The user of the asset is known as lessee

In a lease agreement there are three parties

The ownership of the asset remains with the lessor