MCQ All 25 Accounts Xi

MCQ QUESTIONS :
Set-1
1.Answer the following questions :
a) accounting is –
i) A science ii) An art iii) both a science & an art iv ) service activity.
b) internal users of accounting information are –
i) creditors ii) investors iii) management iv) government
c) The father of accounting is –
i) lucapacioli ii) Aristotle iii) kautilya iv) Galileo.
d) book keeping is mainly concerned with
i) recording of financial data
ii) designing the system in recording classifying and summarising the recorded data ;
iii) interpreting the data for internal and external users;
iv) none of the above.
e) Accounting standard are issued in india by –
i) ICAI :ii) ICWAI ;iii) ICSI iv) IAASB .
f) assets are recorded at thecost of acquisition under concept –
i) dual aspect ii) cost or historical cost ii) materiality iv) full disclosure .
g) under which concept business is considered a separate entity distinct from its owners ?-
i) entity concept ii) proprietory concept iii) dual aspect concept iv) cost concept.
h) income is measured on the basis of which concept ?
i) going concern concept
ii) dual aspect concept
iii) proprietory concept
iv) money measurement concept .
i)Goodwill account is a –
Personal account ii) real account iii) nominal account iv ) none of these
J) purchase book is a part of –
i) i) journal ii) ledger iii) trial balance iv) balance sheet .
k) discount shown in cash book is -
i) cash discount ii) trade discount iii) cash and trade discount iv ) none of these .
l) the debit balance of pass book means –
i)deposit in bank ii) overdraft from bank iii) loan from bank iv) none of these .
m) Bought goods from sohanRs 350 is recorded as Rs 530 .it is an –
i) Error of principle ii) Error of commission iii) errors of omission iv) error of compensating
n) which one is not the cause of depreciation –
i) Efflux of time ii) price fluctuation iii) obsolescence iv) natural wear and tear.
O) on maturity a bill is met by –
i) drawer ii) drawee iii) payee iv) endorse.
p) preliminary expenses paid for –
i) capital expenditure ii) revenue expenditure iii) deferred revenue expenditure
iv) none of these .
q)subscription outstanding for the current year is –
i) An income ii) An asset iii) A liability iv) Expenses
r) Income and expenditure account show –
i) surplus or deficit ii) gross profit iii) net profit iv) cash in hand
PTA INTITUTION
9674395971 / 8777813923
Page 1
s) amount received from sale of old newspaper by a club is treated as –
i) Expenses ii) Income iii) assets iv) liability .
t) creditors accounts are prepare to find out –
i) cash purchase ii) credit purchase iii) cash sales iv) credit sales
u) The statement of assets and liabilities under single system is known as –
i) statement of affairs ii) balance sheet iii) trial balance iv) cash flow statement .
v) statement of affairs is prepare to calculate :
i) capital ii) cash balance iii) total liabilities iv) total Assets .
w) how many types of accounting packages are there ?-
i) 2 ii) 3 iii) 4 iv) 5
x) which principle is followed in computerized accounting system to process financial
transaction are events –
i) GAAP ii) Indian accounting system iii) international accounting standard iv) IFRS.
Set-2
1.Choose the correct Answer :

a)The assumption that a business firm is seprate and distinct from its owners is called :
i)Going concern ii) money measurement iii) Entity iv) discloser.
b)A------------- is a person who owes our firm money .
i)Debtors ii) creditors iii) owner iv) money lender.
c)Which of the following is not a fixed assets :
i)Bills receivable ii) furniture iii) plant & machinery iv) land & building .
d)Financial statement do not consider :
i)Assets expressed in monetary terms;
ii)Liabilities expressed in monetary terms ;
iii)Only assets expressed in non –monetary terms ;
iv)Assets and liabilities expressed in non monetary terms .
e)Employees are -------------users of accounting information .
i)External ii) internal iii) both of them iv) none of them.
f)Matching of expenses against ------------is known as matching concept .
i)Cost ii) assets iii) Revenue iv) liability .
g)IFRS are leased on
i)fair value ii) historical value iii) both of them iv) none of them .
h) double entry system is leased on -----------------aspect.
i) entity ii) going concern iii) money measurement iv) dual aspect concept .
i) increase in liability is recorded on the
i) debit ii) credit iii) both debit & credit side iv) none of the side.
j) A journal is a ------------------entry
i) book of original ii) a financial iii) a ledger iv) book of final
k) ---------- discount is shown in the books of account.
i) trade ii) both of them iii) cash iv) none of them
l) cash book is a
i) journal ii) ledger iii) subsidiary book iv) journal as well as ledger.
m) wages paid for the erection of machinery should be debited to :
i) cash A/c ii) wages A/c iii) machinery A/c iv) none of them
PTA INTITUTION
9674395971 / 8777813923
Page 2
n) depreciation is provided on
i) fictitious asset ii) current asset iii) fixed asset iv) intangible asset.
o) A bill of exchange has ----------- parties.
i) three ii) two iii) four iv) none of them
p) balance sheet is an
i) journal ii) ledger iii) statement iv) none of them.
q)A token payment against voluntary services is called :
i) donation ii) salary iii) wages iv) none of them
r) which of the following is an non -profit organization :
i) transport co. ii) partnership firm iii) a library iv) none of them .
s) subscription received by a club in advance is -------------
i) an asset ii) an expenses iii) a income iv) a liability .
t) in single entry system ,the accounts are generally recorded
i) nominal account ii) real account iii) personal account iv) none of them
u) single entry system is ----------system .
i) scientific ii) methodical iii) unscientific iv) none of them .
v) if opening capital is Rs 6000 closing capital is Rs 4000 and net profit is Rs 3000 .proprietor
drawings will be i) Rs 7000 ii) Rs 1000 iii) Rs 5000 iv)Rs 2000.
w) The full form of CAS
i) common admission system
ii) common accounting system
iii)Combined accounting system
iv)computerized accounting system.
x) Accounting software may be classified in -------------ways on the basis of their sources
i)2 ii) 4 iii) 3 iv) none of them.
Set -3
1.Answer the following questions:

The father of accounting is
i)R.N. carter ii) lucapacioliiii) H.chakraborty iv) kautilya
b) External users of accounting information are not
i) lenders ii) officers iii) Employees iv) public .
c) if accounting information is based on facts and it is verifiable document it has the quality of
i) Relevance ii) understandability iii) Reliability iv) comparability.
d) The nature of capital is –
i) an assets ii) a liability iii) an income iv) an expense.
e) The set of accounting standards issued by IASB is –
i) ASB ii) IASC iii)ICAI iv) IFRS .
f) According to business entity concept
i) transactions between the business and its owners are not recorded
ii) transactions between the business and its owners are recorded considering them to be one
single entity ;
iii)transactions between the business and its are recorded from the business point of view ;iv)
transactions between business and its owners are recorded from the owners point of view.
g ) IFRS are based on
i)historical cost ii) fair value iii) both historical and fair value iv) none of them .
PTA INTITUTION
9674395971 / 8777813923
Page 3
h) accounting standards 2 relates to
i) disclosure of accounting policies ii) cash flow statement iii) Depreciation accounting
iv) valuation of inventories.
i)if the capital of the business is Rs 700000 and assets are Rs 900000 ,them liabilities will be
i) Rs 200000 ii) Rs 1600000 iii) Rs 500000 iv) Rs 2000000
j) Rs 5000 received from mohan whose account was written off as bad in the previous year
should be credited to
i) mohan’s account ii) bad debt account iii) cash account iv) bad debt recovered account.
k) credit note is prepared by
i) owner of the business ii) supplier of the goods iii) customer of goods iv) banker of the
business.
l) Trial balance fails to detect
i) Errors of principle ii) Errors of commission iii) compensating errors iv) all the above.
m) purchase of office furniture worth Rs 1200 has been debited to the general expenses account.
It is -i) a clerical error ii) an error of principle iii) an error of commission iv) compensating
error.
n) depreciation is a process of
i) valuation of asset ii) allocation of cost iii) both of valuation of asset and allocation of cost iv)
none of the above.
o) if the due date of the bill falls on a public holiday then the bill is due on :
i) one day after the due date ii) public holiday iii) one day before the due date iv) none of
them.
p) if there is a loss of stock of goods destroyed by fire , then
i) net profit will increase ii) net profit will decrease iii) gross profit will decrease iv) liability
will increase.
q) the income and expenditure account is
i) Real account ii) nominal account iii) capital account iv) personal account.
r) debit balance of income and expenditure account indicates
i) income ii) Receipt iii) surplus iv) deficit.
s) money received from a decreased person under the terms of a will is
i) donation ii) honorarium iii) fund iv) legacy.
t) credit sales can be determined through
i) statement of affairs ii) statement of profit and loss iii) debtors account iv) creditors account.
u) under single entry system ,profit is the
i) excess of income over expenditure
ii) excess of expenditure over income
iii)excess of the opening capital over closing capital
iv)Excess of closing capital over opening capital
v)single entry system of book – keeping is –
i) incomplete and unscientific
ii) complete and scientific
iii)complete and unscientific
iv)statutory system .
w) in computerized accounting system -------- is an indese to all the account in double entry
system .
i) computer hardware
ii) computer software
PTA INTITUTION
9674395971 / 8777813923
Page 4
iii)grouping of account
iv )none of the above
x) The accounting packages in every computerized accounting system is
i) Ready to use ii) customized iii) tailored iv) any one of the above .
set-4
1.Answer the following questions : 1x24=24

a) The nature of capital is –
i) an asset ii) a liability iii) an income iv)an expense.
b) Assets whose value goes on declining with the passage of time is –
i) Fixed asset ii) current asset iii) wasting asset iv) fictitious asset.
c) Land in the hands of land developer is –
i) Fixed asset ii) current asset iii) floating asset iv) wasting asset.
d) The father of Accounting is –
i) R.N. Carter ; ii) Luca pacioli iii) H.Chakraborty iv) Kautilya
e) Trade Discount is :
i) which is allowed at time of receiving the payment
ii) which is allowed at the time of sale of goods
iii)which is allowed both at the time of receiving payment and sale of goods
iv)allowed in all of the above.
f)out of the following assets which one is not an intangible asset ?
i) Patents ii) Investment iii) goodwill iv) Trademark.
g) At the end of financial year during which sale of goods was worth Rs 200000 ,the closing
stock is valued at Rs 10,this is ------
i) An Event ii) A transaction iii) both an event as well as transaction iv) none of ( i) and (ii)
h) which of the following is the capital expenditure ?
i) wages paid for repair of building
ii) wages paid for white washing of building
iii)wages paid for construction of building
iv)wages paid for cleaning of building .
i)total assets Rs 150000 . outstanding liabilities Rs 40000. During the year introduction of capital
Rs 40000 drawings Rs 30000 and profit for the year Rs 40000 .what will be the opening capital ?
i) Rs 60000 ii) Rs 70000 iii) Rs 100000 iv) Rs 110000.
j) Accounting equation is a statement of equality between -
i) Debit and credit ii) Assets and capital iii) income and expenses iv) liabilities and capital.
k) credit voucher is prepared for –
i) cash payment ii) cash receipt ii) credit purchase iv) credit sale.
l) personal account debit balance means –
i) profit ii) debtor iii) creditor iv ) capital
m) when trial balance does not agree the difference is put to –
i) suspense account ii) balance sheet iii) profit and loss account iv) cash book.
n) charging depreciation is –
i) compulsory ii) voluntary iii) Dependent on the condition of assets iv) none of these
o) A bill which is drawn and payable in the same country is called –
i) Trade bill ii) Accommodation bill iii) inland bill iv) foreign
PTA INTITUTION
9674395971 / 8777813923
Page 5
p) preliminary expenses paid are :
i) capital expenditure ii) revenue expenditure iii) Deferred revenue expenditure iv) none of
these.
q) subscription outstanding for the current year is
i) An income ii) An assets iii) A liability iv) Expenses .
r) Receipts and payments account is leased on –
i) cash principle ii) accrual principle iii) credit principle iv) cash & credit principle .
s) The primary object of a non trading organization is to –
i) Render service ii) Earn profit iii) Distribute profit iv) charity .
t) single entry system of book keeping is –
i) Incomplete and unscientific ii) complete and scientific iii) complete and unscientific iv)
statutory system .
u) which accounting concept is followed under single entry system ?
i) proprietary conceptii)money measurement concept
iii) entity concept iv) dual aspect concept .
v) credit sales can be determined through –
i) statement of affairs
ii) statement of profit and loss
iii)debtors account
iv)creditors account.
w) when collected data are analysed systematically ,it is called –
i) information ii) data iii) statistic iv) communication .
x) The system of collecting ,processing summarizing and reporting information about a
business unit in monetary terms is called – i) management information system
ii) accounting information system iii) executive information system iv) marketing information
system.
Set-5
1. Answer the following questions:
The nature of capital is :
i)An assets ii) an income iii) a liability iv) an expenses .
b) The position statement of a concern is :
i) Trial balance ii) balance sheet iii) Receipts & payment A/c iv) profit and loss A/c .
c) if a furniture dealer buys 5 almirah ;it will be treated in accounted in accounting as :
i) income ii) assets iii) purchase iv) liability.
d) The following is not an asset :
i)patent ii) stock in trade iii) loan from X co. iv) premises.
e) under matching principle ;matching is done between :
i) assets & liabilities ii) capital and drawing iii) Receipts & payments iv) Expenses & income .
f) accounting to -------assumption ,it is taken that the entity will continue forever :
i) consistency ii) accrual iii) going concern iv) periodically .
g) if the order sale is received on 1st may 2013 ;goods are sent on 16th may ,2013 and amount
realized on 25th may ,2013 ;then date of recognition of income will be :
i) 1st may ,2013 ii) 16th may ,2013 iii) 25th may ,2013 iv) closing date of accounting year .
h) The Indian accounting standard related to “ Depreciation accounting is –
i) As-1 ii) AS-2 iii) AS-10 iv) AS- 6
i) debit indicates :
PTA INTITUTION
9674395971 / 8777813923
Page 6
i) increase in liability ii) decrease in owners equity iii)decrease in expenses iv) increase in
owners equity.
j) which of the following is correct?
i) i) assets = liability +capital +income –expenses ii) assets = capital –liability iii) assets +
income = liabilities – Expenses +capital iv) assets = External Equities .
k) when petty cashier is given money for making petty payments ,the two accounts involved
are : i) petty cash A/c and petty cashier A/c ii)petty expense A/c and petty cash A/c iii) petty
cash A/c cash A/c iv) petty cashier A/c and petty cash expenses A/c .
l) when goods are taken over by the owner for personal use from the business ,which account is
credited :
i) capital a/c ii) sales a/c iii) purchase a/c iv) drawing a/c .
m) which of the following errors affects the agreement of Trial balance :
i) stationery purchased but records in purchase books ii) cash received from gautam but
credited to rahul a/c iii) sales day book was overcast iv) goods returns by mahim but not
recorded .
n) Reserves are actually :
i) Appropriation of profit ii) charges against profit iii) creation of assets iv) creation of liability.
o) when a bill exchange is dishonoured and drawee is not able to make full payment on bill ,so
the amount unpaid by him is credited to which of the following account :
i) drawer A/c ii) bad debt a/c iii) cash a/c iv) deficiency a/c
p) which of the following statement of identity is not correct :
i) sales –gross profit = cost of goods sold
ii) sale –cost of goods sold = net profit + indirect exp – indirect income
iii)operating profit =net profit –indirect exp.+ indirect income
iv)gross profit =net profit +indirect expenses – indirect income .
q) Receipts & payment A/c is prepare on :
i) cash basis ii) mixed basis iii) accrual basis iv) none .
r) income & expenditure A/c is a :
i) Real A/c ii) personal A/c iii) nominal A/c iv) valuation A/c .
s) debit balance of income & expenditure A/c indicates :
i) surplus ii) net loss iii) net income iv) deficit .
t) single entry system of accounting is –
i) scientific system ii) unscientific system iii) statutory system iv) none of these .
u) under single entry system ,profit is the
i) excess of income over expenditure ii) excess of expenditure over income iii) excess of closing
capital over closing capital iv) excess of opening capital over closing capital .
v) statement of affairs is prepared to find out –
i) Assets ii) liabilities iii) fixed assets iv) capital
w) which part of computer is known as it’s brain –
i) C.P.U ii) keyboard iii) monitor iv)software
x) The term LAN stands for -
i) level across network ii) limited area network iii) level area network iv) local area network
set-6
PTA INTITUTION
9674395971 / 8777813923
Page 7
The father of double entry system of accounting is :
i)Aristotle ii) luca pacioli iii) marshall iv) Ricardo
b) Amount investment by the owner in business is called :
i) income ii) expenses iii) capital iv) none of these
c) The following is not an asset :
i) patent ii) stock in trade iii) loan from X co. iv) premises .
d) which of the following is not a subfield of accounting ?
i) management accounting ii) cost accounting iii) financial accounting iv) book –keeping
e)which one of the following is not a basis accounting principle
i) conservation ii) materiality iii) going concern iv) equity
f) capital is shown on the liability side of the balance sheet because of :
i) entity principle ii) dual aspect principle iii) accrual principle iv) going concern principle
g) The principle of accounting which recognizes the two fold aspect of a business transaction is :
i) matching concept ii) cost concept iii) dual aspect concept iv) business entity principle.
h) of the items below the one which differs significantly from all of the others is :
i) accrual concept ii) limited liability concept iii) business entity concept iv) consistency
concept.
i) increase in an expense accounting is recorded on the :
i) debit side ii) credit side iii) both side iv) neither side.
j) The following account has a credit balance :
i) discount allowed ii) carriage outward iii) carriage inward iv) discount received .
k) following one is not a book of original entry :
i) purchase day book ii) cash book , iii) bills receivable iv) ledger.
l) a bank reconciliation statement is a part of :
i) cash book ii) pass book iii) ledger iv) none of above .
m) A suspense account is opened when the :
i) trading a/c does not balance ii) Trial balance does not balance iii) bank A/c does not
balance iv) P/L A/c does not balance .
n) following is a method of calculate of depreciation :
i) LIFO ii) simple average iii) weighted averages iv) straight line method.
o) when a bill is dishonoured noting charge is borne by :
i) drawer ii) endorsee iii) drawee iv) bank
p) return inwards are deducted from :
i) opening stock ii) sales iii) purchase iv) none of these
q) receivable subscription of a club is it ‘s
i)liability ii) asset iii) asset or liability iv) none
r) An income & expenditure account reveals :
i) cash in hand ii) profit iii) loss iv) surplus or deficit .
s) The following is not for profit entity :
i) a school ii) a hospital iii) a liability iv) an iron & steel co.
t) If closing capital is less than opening capital ,it denotes :
i) profit ii) loss iii) expenses iv) income .
u) statement of affairs is prepared to find out :
i) assets ii) liability iii) fixed assets iv) capital
v) The capital in the beginning of the accounting year is ascertained by preparing :
i) debtor account ii) creditors account iii) cash account iv) opening statement of affairs .
w) printer is an example of
PTA INTITUTION
9674395971 / 8777813923
Page 8
i) input ii) output device iii) server iv) none of the above
x) The physical parts or components of a computer is called :
i) software ii) hardware iii) hard disc iv) memory
set-7
1.answer the following questions :

a) the basis of accounting following by professional person :
i) cash basis ii) accrual basis iii) hybrid basis iv)none of these.
b) the dr. balance of profit & loss A/c is :
i) a fixed assets ;ii) a current assets iii) a fictitious asset iv) none of these
c) the sequence followed in account related activities are :
i) accounting book keeping auditing
ii) auditing accounting book keeping
iii)book keeping accounting auditing
iv)none of these.
d)In account recording is made of :
i)only financial transactions ii) only non financial transactions iii) financial and non financial
transactions iv) personal transaction of the proprietor.
e) under matching concept ,matching
i)income and expenses ii) current assets and current liabilities iii) receipts and payments iv)
capital and advertisement.
f) The consumption of thread for binding a book is not relevant to the cost of the book .this
statement coherent with which accounting doctrines or conventions :
i)doctrine of conservatism ii) doctrine of full disclosure iii) doctrine of materiality iv) doctrine
of objectivity.
g) valuation of inventories is included in Indian accounting standard in :
i) AS -32 ii) AS-6 iii)AS-11 iv) AS-2
h) the entity concept is clearly depicted in :
i) the sole proprietorship business ii) the unregistered firm iii) the joint stock company iv)
none of these.
i) under dual aspect concept ,the correct accounting equation is :
i)assets +expenses =capital +revenue +liability ;
ii)capital =assets +liabilities;
iii)liabilities =capital +assets
iv)none of these.
j)Withdrawals by the proprietor :
i)reduce both assets and owner’s equity
ii) reduce assets and increase liabilities
iii)reduce owner’s equity and increase liabilities
iv)affect none of assets ,liabilities and owner equity.
k)outstanding wages is recorded in
i)petty cash book ii) purchase day book iii) bank book iv) journalproper.
l) Reparing exp. Of building is debited to building A/c which types of errors is it :
i) error of principle ii) compensating error ; iii) Error of mis posting iv) Error of commission
m) closing stock was overcasted by Rs 5000 owing to the inclusion of an item twice in the stock
sheet .what will be the suggested (rectified ) answer if error discovered after preparation of trial
balance :i) closing stock A/c will be credited ii) profit and loss adjustment A/c will be credited
PTA INTITUTION
9674395971 / 8777813923
Page 9
iii) purchase A/c will be credited iv) stock sheet will be corrected by exclusion of Rs 5000.
n)which of the following would result from a decrease in the provision for bad and doubtful
debts :
i) an increase in net profit ii) a reduction in net profit iii) profitability will be glooming iv)
profitability does not vary .
o) when a bill is dishonoured noting charges is borne by :

i) drawer ii) maker iii) drawee iv) bank
p) while preparation of final account closing stock are valued on the principle cost price and
market price which ever is lower .it is done under :
i) accrual basis of accounting ii) accounting period concept iii) dual aspect concept iv) concept
ofconservatism and Indian AS-2.
q) the balance of receipts & payment A/c is :
i) only cash in hand ii) only cash at bank iii) both cash in hand iv) capital
r)outstanding subscription is actually :i) an income ii) an expense iii) a liability iv) an asset.
s) under pure single entry system :
i)no subsidiary book is maintained ii) only one subsidiary book is maintained iii) more than
one subsidiary books are maintained iv) only cash books is maintain
t)The credit balance of income & expenditure A/c indicates :
i) surplus ii) deficit iii) capital iv) cash balance
u) A description of assets and liabilities under single entry system on a particular date is called :
a)statement of assets & liabilities ii) balance sheet iii) statement of affairs iv) schedule of assets
& liabilities .
v) if opening capital is Rs 200000 drawings Rs 20000 and closing capital Rs 190000 the amount of
profit earned during the year will be
w) The system of which the accounting information system is a part is :
i)) management information system ;
ii) human resource information system ;
iii)marketing information system information system
iv)production information system .
x) production information system .
i) customized ii) tailor made iii)readymade iv)none of these .
set-8
1.Answer the following questions : 1x24=24
a)Which of the following is not a business transaction ?
i)Bought furniture of Rs 10000 for business ;
ii)paid salaries of employees Rs 5000;
iii)paid son ‘s tuition fees from personal bank account ;
iv)paid Rs 600 as interest on business loan .
b)Which of the following is not an internal user of financial information ?
i)directors ii) employees iii) managers iv) lenders
c)The basic function of financial accounting is to

i) record all business transaction ;
ii) interpret financial data ;
iii)assist the management in performing more efficiently;
PTA INTITUTION
9674395971 / 8777813923
Page 10
iv)none of the above.
d)users of accounting information include
i)creditors ii) lenders iii) customers iv) all of the above .
e)accounting to going concern concept ,a business is viewed as having
i) a limited life ;ii) a long life ; iii) an unlimited life iv) none of these
f)valuation of stock at lower cost in an example of
i)consistency convention ii) conservation convention
iii)realization concept iv) matching concept .
g)IFRS are based on
i) historical cost ii) fair value iii) both historical cost & fair value iv) none of the above .
h) Accounting to money measurement concept
i)all transaction & events are recorded ;
ii) all transaction which can be estimated in money terms are recorded ;
iii)all transaction which can be recorded ;
iv)none of the above .
i)Which of the following will not be recorded in the books of account ?
Purchase of machinery ii) quality of staff ;
iii)sale of goods iv)payment of wages
j)credit means
i) an increase in assets ii) increase in liability iii) a decrease in liability
iv) none of these .
K) A journal is called a book of
i) original entry ii) secondary entry iii) final entry iv) none of the above .
l)A credit balance in the bank column of the cash book indicate
i) cash in hand ii) cash at bank iii)bank overdraft iv) account is closed .
m) Rs 500 paid as wages for erecting a machinery should be debited to i) wages A/c ; ii)
machinery A/c iii) cash A/c iv) none of these .
n) Reserve arising out of the capital receipts are known as
i) General reserve ii) capital reserve iii) reserve fund iv) none of these
o) A 3 months bill drawn on January 1 2013 will nature for payment on i) April 1,2013 ii) April
3,2013 iii) april 4, 2013 iv) april 5,2013.
p) Return inward is deducted from
i) purchases ii) sales iii) opening stock iv) closing stock .
q) non –profit seeking organizations prepare
i) manufacturing account ;
ii) profit & loss A/c iii) income & expenditure a/c
iv)none of these.
r) Receipts & payments A/c is a
i) personal A/c ii) nominal A/c iii) real A/c iv) none of these
s) donations received for a special purpose is treated as
i) asset ;ii) Revenue Receipt iii) capital receipt iv) not taken into account .
t) single entry system can be adopter by
i) small firms ii) joint stock companies iii) co- operative societies iv) banks.
u) from incomplete records it is possible to prepare
i) ledger account ii) Trial balance iii) statement of affairs iv) none of these
v) in case of net worth method of single entry ,profit is ascertained by :
PTA INTITUTION
9674395971 / 8777813923
Page 11
i) companing the capital in the beginning and at the end of the accounting period ; ii)
preparing a profit and loss account
iii) preparing a income and expenditure account iv) preparing a balance sheet .
w) which of the following is a limitation of a computer ?
i) speed ;ii) accuracy ; iii) intelligence iv) reliability.
x) which of the following is not a hardware ?
i) keyboard ii) mouse iii) monitor iv) operating system.
set-9
Answer the following questions (alternatives are to be stated) 1x24=24

a)Which of the following is not an asset :
Patent right ii) prepaid insurance ; iii) stock –in Trade iv) bank overdraft.
b)The father of double entry system of accounting is :
Aristole ii) Galileo iii) lucapacioli iv) kautilya
c)The different between what the business own and what it owes is treated as :
Resource ii) capital iii) surplus iv) revenue .
d)Book keeping is mainly concerned with:
Recording of financial data; ii) designing the system in recording ;classifying and
summarizing the recorded data ;iii) interpreting the data for internal and external users iv)
none of the above .
e)Accounting standards are issued in india by;
ICWA ii) ICAI iii) ICSI iv) IASB.
f)The matching principle means that :
i)Assets should be matched against liabilities ;
ii)Revenue should be matched against expenses;
iii)Expenses should relate to the goods or services spldduring the period;
iv)None of the above.
g)Which one of the dual aspect principle results in the accounting equation :
i)assets =liabilities; ii) assets +expenses =capital +profit ; iii) assets =capital liabilities ; iv)
Revenue =expenses.
h) which one of the following is not a basis accounting principle :
i) consistency ii) materiality iii) going concern iv) Equity .
i) under cash basis accounting revenue is recognized on :
i) Actual cash receipt ;ii) sales of goods iii) delivery of goods iv) none of these .
j) The assets of a business are worth Rs 156000 and its capital is Rs 9600.its liabilities are:
i) Rs 52000;ii) Rs 60000 iii) Rs 96000 iv) Rs 156000.
k) journal is a :
i) primary books of account ;
ii) secondary books of account ;
iii)both of “a”and “b”;
iv)none of the above.
l)cash book is a : i) journal ii)ledger iii) journal ledger iv) none of these .
m) Errors not affecting the Trial balance is :
i) compensating error ii) casting error iii) both of “a” and “b”; iv) none of these .
PTA INTITUTION
9674395971 / 8777813923
Page 12
n) depreciation is a : i) cash expenditure ii) non cash expenditure iii) revenue income iv) none
of these
o) bills of exchange is a : i) negotiable instrument ii) non –negotiable instrument iii) both “a”
and “b”; iv) none of these
p) gross profit is derived from :i) trading account ii) profit & loss account iii) balance sheet iv)
trial balance.
q)subscription received in advance by a club is its ;
i) liability ii) assets iii) expenses iv) surplus .
r) A Receipts & payment account is similar to :
i) an income & expenditure account ii) a cash or bank account iii) a statement of affairs iv)
none of these.
s) club subscription account is of the nature of :
i) income account ii) expenses account iii) liability account iv) none of these
t) when closing capital is greater then opening capital ,it denotes:
i) profit ii) loss iii) no profit no loss iv) profit ,if there is no introduction of capital
u) Recording of transaction under single entry system is :
i) incomplete ii) unscientific iii) inaccurate iv) all of these .
v) statement of affairs is prepared to calculate :
i)capital ii) cash balance iii) total liabilities iv) total assets.
w) ALU stands for : i) arithmetic logic unit ii) area local uses iii) arithmetic logical uses iv)
none of these
x) CPU stand for :i) central processing unit ii) central production unit iii) central planning
unit iv) none of these.
Set-10
1.answer the following questions:

A )the following is not an asset
i ) patent ii) stock in trade iii) prepaid insurance iv) loan from B ltd.
b)The liability created by a business enterprise when it makes a purchase credit is termed as
i)assets ii) depreciation iii) creditors iv) none of these
c)amount of money owned by a business are its

i) assets ii) liabilities iii) income iv) expenses
d) financial statement do not consider :
i)assets expressed in monetary terms
ii) liabilities expressed in monetary terms ;
iii)only assets expressed in non monetary terms ;
iv)assets and liabilities expressed in non –monetary terms .
Dual aspect concept result in the accounting equation
i)assets =capital ii) assets – capital +liabilities iii) assets + expenses = capital +profit iv)
revenue = expenses
f) The idea of separation of the owner’s business transaction is referred to as
i)net worth ii) entity concept iii) prudence principle iv) full disclosure principle .
g) which one of the following is not a basic accounting principle ?
i) entity ii) cost ii) matching iv)rationalization .
h) the principle which assumes that financial statement are all inclusive is
PTA INTITUTION
9674395971 / 8777813923
Page 13
i) full disclosure ii) conservatism iii) entity iv) verifiable objective
i) The assets of a business are worth Rs 156000 and its capital is Rs 96000 .its liabilities are :
j) classified summary of all transaction is called
i) cash book ii) journal iii) ledger iv)trial balance .
l) An accrued revenue is
i) a revenue which has been collected ii) an unearned revenue iii) a revenue which has been
earnedbut not yet collected iv) a liability.
m) The following error is an error of omission :
i) Rent paid to landlord has been debited to his account .
ii) A purchase of Rs 2000 has been entered in the sales journal
iii)purchase of furniture for use in the business has been posted to purchase account .
iv)Rs 480 has been received from a customer in full discharges of debt of Rs 500;in the books
of account an entry has been passed for Rs 480 only.
n)The firm ‘s assets at cost total Rs 160000.the total depreciation charges to date is Rs 72000
.the book value of the asset is
i) Rs 72000 ii)160000 iii) 88000 iv) 232000
o) on 1.1.2012 ,X draws a bill on Y for Rs 10000 for 3 months maturity date of the bill will be :
i) 1.4.2012 ii) 3.4.2012. iii) 4.5.2012 iv) 4.4.2012
p)general reserve is debited to
i) trading account ii) profit & loss account iii) profit & loss appropriation account iv)balance
sheet .
q) life membership subscription is
i) a revenue receipts ii) a capital receipts iii) an asset iv) a liability
r) The main source of income of a club is
i) salary ii) sale of goods iii) interest iv) subscription
s) outstanding subscription is actually :
i) an income ii) an expense iii) a liability iv) a asset
t) outstanding subscription information relates to a trader :
opening capital Rs 25000
closing capital Rs 28000
net profit Rs 5000
his drawings are i) Rs 1000 ii) Rs 2000 iii) Rs 4000 iv) Rs 5000
u) A trader has opening capital of Rs 30000 and closing capital of Rs 36000 .this drawings
during the year amount to Rs 9000 .his profit during the year is
i)Rs 3000 ii) Rs 6000 iii) Rs 15000 iv) Rs 7000.
v) if opening capital is Rs 6000 closing capital is Rs 4000 and net profit is Rs 3000 . proprietor
drawings will be : i) Rs 7000 ii) Rs 1000 iii) Rs 5000 iv) Rs 2000.
w) which of the following is secondary storage device :
i) RAM ii)pen drive iii) ROM iv) all of the above .
x) which of the following is not an input device :
i) scanners ii) key boards iii) monitors iv) none of the above .
set-11
1. select the correct answer :

The father of accountancy is
i)herryfeol ii) F.W Taylor iii) Kautilyaiv) Luca pacioli.
PTA INTITUTION
9674395971 / 8777813923
Page 14
b) accountancy is –
i) a science ii) a fine art iii) both art and science iv ) a management
c)The nature of capital is _
i)a liability ii) an assets iii) an income iv) an expense .
d)accounting standards are issued in India by :
i) ICAI ii)ICWAI iii) ICSI iv) IAASB.
e)At present existing number of accounting standards in India are –
i) 22 ii) 28 iii) 32 iv) 49
f) AS -6 deals with the accounting for –
i) valuation of inventories
ii) depreciation of fixed assets
iii)Govt. grants
iv)fixed assets
g)international financial reporting standards (IFRS) are the accounting standards developed by-
i) GAAP ii) IASC iii)IAS iv) IASB
h) under matching concept ,matching is done between –
i) assets & liabilities ii) loan & capital iii) Receipts & payments iv) income & expenses
i) drawing A/c is –
i) personal a/c ii) REAL A/c iii) nominal a/c iv) none of these.
j) credit balance of nominal A/c means-
i) expense ii) loss iii) profit iv) income
k) purchase book is
i) journal ii) ledger iii) journal proper iv) none of these
l) discount record in the debit side of cash book means –
i) cash discount allowed ii) cash discount received iii) trade discount allowed iv) trade
discount received
m) machinery purchased for Rs 10000 wrongly recorded in purchase day book it is the error of –
i) omission ii) commission iii) principle iv) compensating error.
n) charging depreciation is –
i) voluntary ii) compulsory iii) depend on situation iv) none of these.
o) on maturity a bill is met by –
i) drawer ii) endorse iii) payee iv) drawee
p) closing stock is valued at –
i) cost price ii) market price iii) cost or market price which is lower iv) none
q) Receipts & payments account belongs to –
i) nominal A/c ii)Real A/c iii) personal A/c iv) none of these
r) The debit balance of income & expenditure A/c indicates –
i) surplus ii) deficit iii) capital iv) profit
s) The income & expenditure A/c is equivalent to –
i) balance sheet ii) Receipts & payments A/c iii) profit & loss A/c iv) none of these
t) Excess of assets over liabilities is called –
i) creditor ii) debenture iii) capital iv) Loan .
u) statement of affairs is prepare to find out –
i) assets ii) liabilities iii) capital iv) cash at bank
v) creditors accounts are prepare to find out :
i) cash purchase ii) credit purchase iii) cash sales iv) credit sales
w) when collected data are analysed systematically is called –
PTA INTITUTION
9674395971 / 8777813923
Page 15
i) information ii) data iii) statistics iv) communication .
x) The frame work of storage and processing data is called –
i) accounting package ii) data processing iii) transaction of processing system iv) automation
set-12
1.answer the following questions :

a) the father of double entry system of accounting is –
i) Aristotle ii) lucapacioli iii) Galileo iv) kautilya
b)which is not one of the branches of accounting ?
i) financial accounting ii) cost accounting iii) management accounting iv)farm accounting
c)the following is not an asset –
i) patent ii) stock in trade iii) prepaid insurance iv)loan from B ltd.
d) a person who owes money to the firm is called
i) debtors ii) creditors iii) supplier iv) none of these.
e) which of the following is not a basic accounting principle ?
i) entity ii) matching iii) cost iv) rationalization.
f) The principle of matching costs and revenue means that-
i)relate to the i) the expenses off set against revenues should same period .
ii) revenue are at least as great as expenses
iii)revenue and expenses are equal
iv)net income equals revenue minus expenses.
g)Accounting standards are issued in India by
i) ICWA ii)ICAI iii)ICSI iv)IASB.
h) In India how many accounting standards have so far been published
i) 41 ii)14 iii)32 iv)23
i) The basic accounting equation is
i) A=L+OE ii) A=L-OE iii)OE=A+L iv)L=OE+A
j) purchase of premises is
i) an expense ii) an asset iii) a liability iv) none of these
k)classified summary of all transactions is called
i)cash book ii) journal iii) a liability iv) none
l) The following is entered in the journal proper
i) purchase of an asset for cash
ii)purchase of an asset on credit
iii)purchase of goods on credit
iv)purchase of goods on credit.
m)Trial balance can detect-
i)error of omission ii) compensating error iii) errors of principle iv) errors of misposting.
n) The value of furniture at cost on 1st January is Rs 32000 .Two year later the books value is Rs
16000 .the straight line depreciation rate of charges each year is
i) 12 ½% ii)25% iii) 33 ½% iv) 50%
o) when a bill is dishonoured ,noting charges is borne by
i) drawer ii) drawee iii) endorsee iv) bank
p) trading A/c is a
i) Real A/c ii) personal A/c iii) nominal A/c iv) none
PTA INTITUTION
9674395971 / 8777813923
Page 16
q) The surplus of a club is transferred and added to
i) cash balance ii) capital A/c iii) capital fund iv) fixed asset
r) special fund is normally shown in the
i) debit side ii) credit side iii) assets side of balance sheet iv) liabilities side of balance sheet .
s) The nature of Receipts and payments A/c is
i) personal A/c ii) real A/c iii) nominal A/c iv) none of these
t) The following is not prepared under single entry system
i) cash book ii) Trial balance iii) day book iv) leger account of customer and creditors
u) A statement of affairs resembles
i) a profit & loss A/c ii) a trading A/c iii) a balance sheet iv) none
v) if the opening capital Rs 190000 ,closing capital Rs 200000 the amount of profit earned during
the year will be
w) The full form of DBMS is
i) direct basic management system
ii)data base management system
iii)date basic monitoring system
iv)date base measuring system .
x)MS word is a –
i)system software ii) application software iii) hardware iv) input unit.
Set-13
Rebate received at the time of payment of liability is ------
i)profit ii) gain iii) income iv) loss
b) goodwill is a -----
i)current asset ii)fixed asset iii) fictitious asset iv)intangible fixed asset.
c) excess of current assets over current liabilities is ----
i)working capital ii) net capital iii) circulating capital iv) none
d) users of accounting information include ---
i) creditors ii) landers iii) customers iv) all of the above.
e) accounting standing are issued in India by ---
i) ICWAI ii)IASB iii) ICAI iv)IASC
f) A concept that a business enterprise will not be sold /liquidated in the near future is known
-----
i) going concern ii) monetary unit iii) economic unit iv) none
g) under going concern concept assets are valued at -----
i) Realizable price ii) cost price iii) trade price iv) none
h) The capital is treated as a business liability under ---
i) entity concept ii) historical cost concept iii) dual aspect concept iv) matching concept
i) point out the correct equation ----
i) Assets = ;liabilities –capital
ii) Assets =liabilities +capital
iii)liabilities =assets +capital
iv)capital =assets +liabilities
j) suspense account is ---
i) personal A/c ii) real A/c iii) nominal A/c iv) none
k)when a firm maintains cash book ,it need not maintain ---
PTA INTITUTION
9674395971 / 8777813923
Page 17
i)cash A/c ,and bank A/c ii) Sales book iii) journal proper iv) purchase book
l)bank reconciliation statement is ---
i) an account ii) a statement iii) a rectification statement iv) Revenue statement .
m) debiting wages A/c for machine installation is an error of ----
i) principle ii) mis posting iii)omission iv) none
n) depreciation according to straight line method is calculate on ----
i) opening balance ii) closing balance iii) originalcost iv) market price
o) noting charge are paid to the notary public by ----
i) drawer ii) bank iii) Endorse iv) Either of the three parties
p) The financial statement consist of ---
i) Trial balance iv) profit & loss A/c . iii) Balance sheet iv) balance sheet and profit & loss
account
q) income & expenditure A/c shows
i) surplus or deficit ii) net profit /net loss iii) cash in hand iv) gross profit .
r) subscription received in advance in current year is ---
i) an asset ii) a liability iii) an income iv) an expenses
s) Receipts & payments account is based on ---
i) accrued concept ii) a liability iii) an income iv) an expenses
t) from debtors A/c ---
i) Total purchase ii) only cash sales iii) only creditsales iv) credit purchase is available .
u) under incomplete records only ----
i) personal A/c ii) Real A/c . iii) nominal A/c iv) both (a) and (b) are maintained
v) The capital in the beginning of the accounting year is ascertained by preparing –
i) debtors account ii) creditors account iii) cash account iv) opening statement of affairs .
w) Readymade software packages---
i) very costly ii) moderate cost iii) costless iv) cost charges
x) customized software
i) very costly ii) moderate cost iii) costless iv) low cost
set-14

Who invested the double entry system of book –keeping ?
i)William pickles ii) Luca pacioli iii) J.R ballibon iv) karl marks .
b) which form of accounting is adopted by a business man ?
i) cost accounting ii)financial accounting iii) tax accounting iv) management accounting
c) drawings account is in the nature of
i) personal account ii) Real account iii) nominal account iv) none
i) management accounting ii) cost accounting iii) financial accounting iv) book –keeping
e) the policy “anticipate no profit and provide all possible losses “arise due to i) conversion of
consistency ; ii) conventions of conservatism
ii) convention of disclosure; iv) none
f)revenue is generally recognized when :
i)production is completed ii) order of goods is received iii) goods are delivered iv) cash is
received
g)full name of GAAP is i) generally accepted accounting policy
PTA INTITUTION
9674395971 / 8777813923
Page 18
ii) generally accepted accounting principle ;iii) generally accepted accounting provision iv)
none
h)it is essential to standardize the accounting principles and policies in order to ensure i)
transparency ii) consistency iii) comparatrility iv) all of the above
i) journal is a book of
i) prime entry ii) final entry iii) secondary entry iv) none
j) contra entries are recorded in cash book for
i) one side ii) two side iii) three side iv) no side
k) ledger is a book of
i) original entry ii) prime entry iii) final entry iv) all cash transactions.
l) credit purchase of goods recorded in
i) purchase day book ii) sales book iii) journal proper iv) returned outward book
m) treating a revenue expense as a capital expenditure is an example of
i) compensating error ii) error of principle iii) error of omission iv) error of commission
n) which of the following expenses is not included in the acquisition cost of a plant and
equipment ?
i) cost of site preparation ii) delivery and handling charges iii)installation costs iv) financing
costs incurred subsequent to the period after plant and equipment is not put to use .
o) bills receivable account is actually a :
i) nominal A/c ii) real A/c iii) personal A/c iv) none
p) balance sheet is prepared by :
i) all going concern ii) only trading concern , iii) only manufacturing concern iv) only
servicing concern .
q) entrance fee is a :
i) a revenue receipt ii) a capital receipts iii) an asset iv) a liability
r) The excess of expenditure over income of a club is called as :
i) surplus ii) deficit iii) net profit iv) net loss
s)single entry system of accounting is -----
i) scientific system ii) un-scientific system iii) statutory system iv) quasi double entry system
t) income and expenditure account is
i) Real A/c ii) personal A/c iii) liability iv) nominal A/c
u) the statement of assets and liabilities under single entry system is called :
i) statement of affairs ii) balance sheet iii) statement of profit & loss iv) position statement
v) in case of net worth method of single entry profit is ascertained by
i) comparing capital in the beginning and at the end of the accounting period ii) preparing
profit & loss account iii) preparing income & expenditure account iv) preparing a balance
sheet .
w) how many bits constitute one byte ?
i) 10 ii)12 iii)6 iv) 8
concept of relational made
i)1950 ii)1972 iii) 1960 iv)1901
set-15
Answer the following questions : 1x24=24
On march 31 ,there is closing stock of Rs 10000 .This can be classified :
i)an event ii) a transaction iii) a transaction as well as event iv) neither transaction nor event
b) internal users of accounting information is
i)
PTA INTITUTION
9674395971 / 8777813923
Page 19
i) potential investors ii) creditors iii) management iv) employees
c) main features of business transaction is
i) it involves an economic activity
ii) it results in a changes in the financial position of the firm
iii)change must be capable of being expressed in terms of money
iv)all of the above
d)Book –keeping is mainly concerned with
i)Recording of financial data
ii)Designing the system in recording ,classifying and summarizing the recorded data ;
iii)interpreting the data for internal and external users .
iv)none
e)Recording of capital contributed by the owner as liability ensures the adherence to principle
of
i)double entry ii) going concern iii) separate entity of business iv) materiality
f) A business man purchased goods for Rs 300000 and sold 80 % such goods during the
accounting year ended 31st march 2005. The market value of the remaining goods was Rs 500000
he has not valued the closing stock at market price he has violated the concept of :
i) money measurement ii) conservatism iii) cost iv) periodicity .
g) recording of fixed assets at cost ensures adherence of :
i) conservatism concept ii) going concern concept iii) cost concept iv) both (b) and (c) above
h) how many accounting standards have been issued by the institute of chartered accountants
of India ?
i) 25 ii) 31 iii) 29 iv) 30
i) main object of preparing a journal is
i) To ascertain the financial position of the business
ii) To journal the cash transactions
iii)To make posting in the ledger
iv)To record the business transaction first of all.
j) ledger is a book of :
i) original entry ii) secondary entry iii) all cash transaction iv) all non –cash transactions
k) cash book is a
i) subsidiary book
ii) subsidiary journal and ledger
iii)ledger account iv) none
l)which of the following is accounting equation ?
i) capital =assets +liabilities ii) capital =assets +liabilities iii) assets =liabilities –capital iv)
liabilities =assets +capital .
m) An item of Rs 72 has been debited to a personal account as Rs 27 ,is an error of :
i) commission ii) omission iii) principle iv) none
n) provision is i) an appropriation of profits ii) a charges against the profits iii) writing off
losses iv) charging depreciation.
o) X draws a bill on Y for Rs 10000 X endorsed it to Z .T will pay the amount of the bill on
maturity to :
i) X ii) Z iii)himself iv) none.
p) closing stock appearing in the trial balance is shown :
i) on the Dr. side of trading A/c ii) on the cr. Side of trading A/c iii) on the assets side of
balance sheet iv) on the cr. Side of trading A/c and on the assets side of balance sheet .
PTA INTITUTION
9674395971 / 8777813923
Page 20
q) the receipts and payments account is a
i) nominal account ii) Real account iii) personal account iv) none
r) subscription received in advance are :
i) an assets ii) an income iii) a liability iv) an expenditure
s) the income and expenditure account reveals :
i) cash in hand ii) surplus or deficiency iii)capital account iv) cash at bank
t) if opening net worth is Rs 30000 closing net worth Rs 50000 ,drawing in cash Rs 4000 and in
goods worth Rs 6000 and additional capital introduced by the owner is Rs 20000 ,then the profit
would be :
i) Rs 10000 ii) Rs 20000 iii)Rs 30000 iv) 40000
u) the opening capital of an accounting year is found by preparing :
i) capital account ii) opening balance sheet iii) opening statement of affairs iv) cash account
v) statement of affairs is prepare to calculate
i) capital ii) cash balance iii) total liabilities iv) total assets
w) which of the following software is not an operating software :
i) ms.dos ii) windows Xp iii) Ms word iv) none
x) which of the following is a limitation of a computer :
i) speed ii) accuracy iii) intelligence iv) all of above
set-16
1 . Answer the following questions :
A ) accounting record all –
i)Transaction ii) financial transaction ,iii) non –financial transaction ,iv) personal transaction.
B) capital means amount contributed by the :
i) creditors ii) outsiders iii) owners iv) employees
c) which of the following is not the limitation of accounting :
i) based on accounting conventions ii) Evidence in legal matters ,
iii) incomplete information iv) omission of qualitative in formations .
d)Internal users of accounting information are :
i) potential investors ii) creditors iii) management iv) employees .
e)The system of recording transaction is based on which concept :
going concern ii) proprietary concept iii) dual aspect concept iv)going concern concept
f) Accounting standards are used in India by ..
i) ICSI ii) ICAI iii)ICWAI iv) IAASB.
g) under going concern concept assets are always valued at :
i) cost price ii) market price iii) invoice price iv) Replacement cost .
h) provision are :
i) external transactions, ii) monetary transactions iii)internal transactions iv) none
i) drawing account is
i) real a/c ii) personal a/c iii) nominal a/c iv) none
j) Transfer entries are pass through :
i) cash book ii) sales day book iii) journal proper iv) purchase day book
k) Bank Reconciliation statement is :
i) an account ii) a statement iii) a journal iv) a ledger
l) Trial balance is prepared for the :
i) whole year ii) one month iii) specific date iv) all of these
PTA INTITUTION
9674395971 / 8777813923
Page 21
m) Error which affects equally or unequally both debit and credit is :
i) one sided errors ii) double sided errors iii) compensating errors iv) Errors of principle
n) The loss on sale of assets is debited to :
i) capital reserve account
ii) profit and loss account
iii)cash account
iv)asset account
o)with which type of bill no document attached :
i) order bill ii) clear bill iii) after sight bill iv) demand bill .
p) Accured income means :
i) income earned but not received
ii) income received in advance
iii)Arrear income iv) Arrear income received
q) Receipts and payment account is based on :
i) cash principle ii) accrual principle iii) credit principle iv) cash and credit principle
r) subscription outstanding for current year is :
i) an income ii) an assets iii) a liability iv) expense
s) income and expenditure account belongs to :
i) Real a/c ii) personal A/c iii)nominal A/civ) suspense A/c
t) Excess of assets over liabilities called :
i) profit ii) debtors iii) creditors iv) capital
u) A statement of affairs is similar to the ----
i) balance sheet ii) Trial balance iii) Trading account iv) profit and loss a/c
v) Total debtors account shows :
i) cash sale ii) credit sale iii) cash purchase iv) credit purchase .
w) The frame work of storage and processing data is called .
i)data processing ii) Automation iii) accounting package iv) Transaction processing system
x) A set of computer software that manage and organize data efficiency is called:
i) operating system ii) data processing iii) data based iv) computerized accounting system .
set-17
Accounting is –i) a science ii) an art iii) both (a) & (b) iv) service activity
b)The father of Accounting is-
i)Luca pacioli ii) Aristotle iii) Kautilya iv) Galileo
c) On march 31.2013 after sale of goods worth Rs 2000 ,he is left with the closing stock of Rs
10000. This is –i) An event ii) A transaction iii) A transaction as well as an event iv) neuther a
transaction nor an event
d) Internal users of accounting information are –
i) potential investors ii) Creditors iii) Management iv) Employees
e) The capital of the proprietor is treated as a liability of the business under –
i) Entity concept ii) proprietory concept iii) Dual aspect concept iv) Going concern concept
f) The principle of accounting which recogzines the two fold aspects of business transaction is-
i) matching concept ii) Business entity concept iii) Dual aspectconcept iv) Cost concept
g) Accounting standards are issued in india by
PTA INTITUTION
9674395971 / 8777813923
Page 22
i) IASB ii)IASC iii)SAFA iv) ICAI
h) How many accounting standard so far have been issued –
i) 28 ii) 29 iii) 32 iv) 34
i) Drawing account is a
i) Real A/c ii) personal A/c iii) Nominal A/c iv) none
j) sales made to Akash on credit should be debited to
i) sales A/c ii) Akash A/c iii) cash A/c iv) sales return A/c
k) Debit voucher is prepared for –
i) cash receipts ii) cash payments iii) credit purchase iv) credit sales .
l) If total of a business are Rs 150000 and capital is Rs 90000 .; the amount of creditor will be –
i) 240000 ii) 90000 iii)60000 iv) 150000
m) When trial balance does not agree the difference is put to –
i) suspense A/c ii) balance sheet iii) cash book iv) profit & loss A/c
n) Depreciation on fixed assets is -
i) cash transaction ii) internal transaction iii) External transaction iv) No transaction at all .
o) Bill drawn on 5th April , 2013 and payable 3 months after date the date of maturity will be
i) 05.07.13 ii) 0.8.7.13 iii) .05.08.13 iv) 08.08.13
p) The gross profit ratio is 25% and the amount of sale is Rs 300000. What will be cost of goods
sold ?
i) Rs 300000 ii) Rs 250000 iii) Rs 225000 iv)Rs 200000
q) Income and expenditure account belongs to
i) Real account ii) personal A/c iii) nominal A/c iv) none
r) subscription outstanding for the current year is –
i) An income ii) An assets iii) A liability iv) Expense
s) which type of income expenses are recorded in income and expenditure account ?
i) cash revenue income and expenses ii) cash capital income iii) both cash and non revenue
incomeand expense s iv) non cash revenue income and expenses
t) Statement of affairs is prepared to find out –
i) Assets ii) liabilities iii) capital iv) fixed assets
u) creditors account is prepare to find out –
i) cash purchases ii) credit purchases iii) cash sales iv) credit sales
v) If opening net worth is Rs 30000 closing net worth Rs 60000 and drawings is Rs 10000 then
the profit would be –
i) Rs 40000; ii) Rs 30000 ;iii) Rs 20000 iv) Rs 100000
w) which principle is followed in computerized accounting system to process financial
transaction and events ?
i) GAAP ii) Indian accounting standard iii) international accounting standard iv) IFRS
x) which accounting software is used in large and typical business organization with multi
users and geographically scattered location ?
i) Ready – to – use software ii) customized software iii) Tailor - made software iv)
Application software
set-18
Answer the following questions : 1x24=24
The father of accounting is -
i)Aristotle ii) lucapacioli iii) Kautilya iv) Galileo
b) The nature of capital is
i) An assets ii) Aliability iii) An income iv) An expenditure
PTA INTITUTION
9674395971 / 8777813923
Page 23
c) drawings account is a –
i) Real A/c ii) personal A/c iii) nominal A/c iv) none
d) The following is not an assets –
i) patent ii) stock in trade ii) prepaid insurance iv) loan from b.
e) under going concern concept assets are always valued at –
i) market price ii) cost price iii) Replacement cost iv) invoice price
f) financial business transaction are measured under the concept –
i) Entity ii) moneymeasurement iii) going concern iv) proprietary
g) The system of recording transaction is based in which concept –
i) Going concern concept ii) Dual aspect concept iii) proprietary concept iv) Entity concept
h) Accounting principle are generally based on –
i) practicability ii) subjectivity iii) convenience in recording iv) none
i) payment of wages to workmen for installation of machinery should be debited to –
i) wages a/c ii) cash A/c iii) machinery A/c iv) Repairs to machinery A/c
j) purchase return book records –
i) return of asset purchased on credit ii) return of all type of purchases iii) return of goods
purchased on credit iv) return of capital
k) The trail balance checks –
i) valuation of closing stock ii) valuation of assets iii) valuation of liabilities iv) Arithmetical
accuracy of books of account
l) prepaid insurance account is a –
i) nominal A/c ii) personal A/c iii) Real A/c iv) none
m) In case of one sided errors detected after preparation of trial balance ,the rectification is
done by –
i) suspense A/cii) double entry iii) blank entry iv) single entry
n) in which method ,depreciation of fixed asset is calculated at a certain rate percent upon the
reduced valued of asset ?
i) fixed installment method ii) written down value method iii) sinking fund method iv)
Annuity method .
o) Amount of noting charges paid by the drawer is a –
i) loss to the drawer ii) profit to the drawer iii) loss to the drawer iv) profit to the drawee.
p) Recovery of bad debt is credited to –
i) Bad debt A/c ii) provision for bad debt A/c iii) profit & loss iv) none
q) income and expenditure account belongs to –
i) Real A/c ii) personal A/c iii) nominal A/c iv) suspense A/c
r) Receipts and payments a/c is based on –
i) cash principle ii) Accrual principle iii) credit principle iv) cash and credit principle
s)Donation received from purchase of asset is a –
i) capital receipt ii) capital expenses iii) Revenue receipts iv) Revenue expenses.
t) under single entry system , to ascertain financial position of a business ,the business men
prepare –
i) Trial balance ii) profit & loss A/c iii) balance sheet iv)statement of affairs .
u) While preparing statement of profit or loss , fresh capital introduced during the year is –
i) deducted from closing capital ii) Added with closing capital iii) Added with drawings iv)
Deducted from opening capital
v) from incomplete records it is possible to prepare
i) ledger A/c ii) trial balance iii) statement of affairs iv) none
PTA INTITUTION
9674395971 / 8777813923
Page 24
w) The accounting information system which helps in processing the financial transaction and
events as per GAAP is called –
i) Accounting information system ii) computerized accounting system iii) marketing
information system iv) management information system .
x) Readymade software are developed for –
i)Specific user ii) users in general iii) both specific and general user iv) for software
developers .
set-19
Answer the following questions :

Ram purchased goods of Rs 10000 .this can be classified as
i . An event ii) A transaction iii) A transaction but not an event iv) neither a transaction nor an
event .
b. external users of accounting information are not:
i) lenders ii) officers iii) Employees iv) public
c) which one of the following is not an objective of accounting ?
i) To provide information about the assets liabilities and capital of the enterprise.
ii) To provide information about the private assets and liabilities of the proprietor
iii)To maintain record of the business ;
iv)To provide information regarding the profit and loss of the enterprise.
D)The basic function of financial accounting is to
i)record all business transaction ii) interpret financial data iii) assis the management in
performing more efficiently ; iv) none
e, If a ratio seller proprietor buys a radio fot his personal use from out of business funds the
amount paid for the radio will be treated as “drawings “ of the proprietor because of the :
i)Dual aspect concept ii) going concern concept iii) business entity concept iv) matching
concept
f. Accounting standard in india are issued by –
i)central government of India ;ii) SEBI iii) institute of chartered accountants of india iv)
Reserve bank of india
g) the principle that an accountant should not anticipate profit ,but must provide for the losses
is known as –
i) the realization concept ii) the consistency concept iii) the conservatism concept iv) the
materiality concept .
h) The going concern concept is the basis for :
i) stating fixed assets at their cost ; ii) disclosing the market values of assets iii) disclosing the
sales and other operating cost in the income statement iv) none
i) The process of recording a transaction in the journal is called :
i) posting ii) journalizing iii) tallying iv) costing .
j) ledger book is popularly known as :
i) secondary book of accounts ii) principle book of account iii) subsidiary book of accounts iv)
none
k) which of the following will be recorded as contra entry ?
i) withdrew from bank for personal use ;
ii)Acheque received from X lodged into bank on the same day
PTA INTITUTION
9674395971 / 8777813923
Page 25
iii)A cheque received from Y a week earlier lodged into bank
iv)A customer directly deposited the money in our bank account.
l)The outside liabilities of a business are Rs 20000 the proprietor’s capital is Rs 50000 .total aeests
of the firm are –
i)Rs 50000 ii) Rs 30000 iii) Rs 70000 iv) Rs 20000.
m) which of the following errors will not affect the trial balance –
i) wrong balancing of an account ii) wrong totaling of an A/c iii) writing an amount in the
wrong accountbut on the correct side ;
iv) omission of an account from trial balance .
n)Depreciation is –
i) A fall in the original cost of an asset ii) A fall in the book value of an asset iii) Afall in the
market value of an asset iv) A fall in real value of an assets
o) A draws a bill on B for Rs 5000 A endorsed it to C . C endorsed it to D . The payee of the bill
will be :
i) A ii) B iii) C iv) D
p) income earned but not received is shown in –
i) liabilities ii) Assets iii) footnote iv) none
q) Receipts & payment A/c is –
i)A summary of cash book ii) A statement of revenue income & expenditure ; iii) An account
of assets & liabilities iv) A summary of ledger account .
r) At the time of preparing the final accounting of a non – trading concern the closing
outstanding expenses ,if any is –
i)Added with the relevant expenses and shown on the liabilities side of the closing balance
sheet ii) deducting from the relevant expenses and shown on the assets side of the closing
balance sheet .
iii) added with the relevant expenses and shown on the liabilities side of the opening balance
sheet iv) deducted from the relevant expense and shown on the liabilities side of the closing
balance sheet .
s. At the time of preparing the final accounts of a non trading concern opening prepaid
expenses ,if any is –
i) Added with the relevant expenses and shown on the assets side of the opening balance
sheet ii) Added with the relevant expenses and shown on the liabilities side of the opening
balance sheet
iii)deducted from the relevant expenses and shown on the assets side of the closing balance
sheet iv)deducted from the relevant expenses and shown on the liabilities side of opening
balance sheet .
t) if opening capital is Rs 120000, closing capital is Rs 160000 and further capital introduced by
the owner is more Rs 10000 than the drawings made by him the profit would be –
u) The closing balance of trade debtors is traced in –
i) closing statement of affairs ii) closing balance sheet iii) credit A/c iv) total debtors A/c
v) from incomplete records it is possible to prepare –
i) ledger A/c ii) Trial balance iii) statement ofaffairs iv) none
w) which of the following is an output device :
i) scanner ii) printer iii) smart card Reader iv) none
x) which of the following is secondary storage device:
i) RAM ii) ROM iii) Pen Drive iv) none
PTA INTITUTION
9674395971 / 8777813923
Page 26
set-20
a)Which of the following is not a part of book keeping:
i)Collection of data ii) recording of transaction iii) Analysing of transaction iv.) classification of
transaction .
b)Modern accounting system is originated in the year:
i)1484 ii) 1464, iii)1494 iv) 1454
c)An accounting performed duties in respect of
i)Book keeping ii) Accounting iii) Auditing iv) All.
d)Which of the following is not an internal user of financial information ?
i)Directors ii) Employees iii) Managers iv)landers
e)Equality of debit and credit means :
i)For each transaction ii) for group transaction iii) for total transaction iv) All ofthese
f)In India Accounting standard making authority is :
i)ICAI ii.)IASC iii) SEBI iv) ICWA .
g)Depreciation accounting follows:
i)AS-4 ii) AS-6 iii) AS-7 iv) AS-8
h)Accounting period concept developed from –
i)Matching concept ii) realization concept iii)going concern concept iv) money measurement concept .
i)Which of the following is correct ?
i)Capital =assets + liabilities ;
ii)Assets = capital –liabilities;
iii)Capital =total assets-other liabilities;
iv)Assets =liabilities + profit.
i)When proprietor drew cash from business for personal use it :
i)Increase capital ii) increase liabilities iii) decrease capital iv) none
j)Preparation of bank Reconciliation is :
i)Compulsory to trader ii) compulsory for bank iii) optional for trader iv) optional for bank
k)Trial balance can prepare by a trader on :
i)Any date ii) closing date of every month iii) at the end of accounting year ,iii) at the end of accounting
year, iv) mod of the year.
l)Suspense A/c used rectification of error
i)Always in before trial balance ii) one fide error in before trial balance iii) always in after trial balance
iv) one side error on after trial balance
m)Provision for bad debt is
i)Appropriation of profit ii) charge against profit iii) both of these iv) none
n) For Dishonour of endorsed bill entry debited by drawer through:
i) Drawee A/c ii) drawer A/c iii) endorsee A/c iv) none
o)Loss due to use of fixed asset is :
i) Revenue expenditure , ii) capital expenditure iii) deferred revenue expenditure iv) none
p) Income & expenditure Account prepared by :
i) Trading concern ii) manufacturing concern iii) all concern iv) non trading concern. iv) non trading
concern
q) Receipts & payments accounts is a :
i) Personal a/c ii) Real a/c iii) nominal a/c iv) none
r) Outstanding subscription is actually:
PTA INTITUTION
9674395971 / 8777813923
Page 27
i) An asset ii) an expenses iii) an income iv) a liability
s) Statement of affairs as on beginning date is to be prepare to ascertain amount of :
i)Capital of closing date , ii) capital of beginning date iii) total asset of closing date iv) total asset of
beginning date .
t)Conversion to double entry method is called :
i)Single entry ii) doublr entry iii) Quasi single entry iv) Trial entry .
u)Single entry system can be adopted by:
i)Small firms ii) joint stock companies iii) co – operative societies iv) bank .
v)Which one of the following is not a component of computer accounting system (CAS):
i)Hardware ii) software iii) internet iv) LAN.
w)Tally is a package of accounting system under :
i)Ready to use ii) customized iii) Toilored iv) none
Set-21
Section –I
1.Answer the following question 1X24=24
a. In accounts recording is made of :
i)Only financial transaction ,
ii)Only non financial transaction,
iii)financial and non financial transaction ,
iv)personal transaction of the proprietor.
b) inter users of accounting information are:
i)potential investors,
ii)creditors,
iii) management ,
iv)Employees,
c) A person who owes money to the firm is called …
i)debtors ii)creditors ,iii)supplier, iv) none of these .
i)management accounting
ii)cost accounting
iii)financial accounting
iv)Book keeping.
e) Revenue is generally realized at the time of sale ,which principal is involved in this situation :
i)matching ,
ii)full Disclosure
iii)revenue recognition
iv)consistency.
f) Expense need to be recorded in the period in which the revenue are recognized which
principle is involved therein ,
i)Consistency ,ii) matching iii)revenue recognition iv)full disclosure .
g) The irrelevant information or facts need not be disclosed .which principle is applied therein:
i)Consistency,
ii) matching
iii)going concern
PTA INTITUTION
9674395971 / 8777813923
Page 28
iv)materiality.
h)AS-8 deais with the accounting for:
i)fixed assets ii)revenue recognition
iii)construction contracts iv)research development.
i)Accounting Equation signifies :
i)capital of a business is equal to assets
ii)assets of a business are equal to liabilities
iii)liabilities of a business are equal to capital
iv)assets of a business are always equal to the total and liabilities.
j)Goods given away as charity it should be credited to :
i)charity account ii) drawing account iii)sales account iv)purchase account .
k)when the goods are purchased for cash the entry will be recorded in :
i)cash book ii) purchases book iii)journal iv)sales book .
l) purchases book records:
i)all purchases ,
ii) all cash purchases
iii)all credit purchases of goods
iv)all credit purchases of assets other than goods.
m)Rent paid to landlord amounting to Rs 500 was credited to rent a/c with Rs 5000 .in the
rectifying entry ,rent a/c will be debited with:
i) Rs 5000, ii) 500 iii)5500 iv) 4500
n) reserves are actually :
:i) appropriation of profit ii) charge against profit ,iii)creation of asset, iv)creation of liability.
o)A one month bill drawn on 31st may 2005it will mature for payment on :
i)3rdjuly ,2005,ii) 2ndjuly 2005 iii) 4thjuly 2005 iv) 1stjuly 2005
p) Heavy expenditure to launch a new product in the market is-
i)revenue expenditure
ii) capital expenditure
iii) deferred revenue expenditure
iv)none of these.
q) record and payment account generally shows :
i)a debit balance ii) a capital balance iii)surplus or deficit iv) capital fund
r)income and expenditure account record transaction of
i) revenue nature only
ii)capital nature only
iii)both revenue and capital nature
iv) income of only revenue nature and expenditure of revenue and capital nature.
s)donation received for a special purpose :
i)should be credited to income and expenditure account ,
ii)should be credited to separate account and shown in the balance sheet
iii)should be shown on the assets side ,
iv)should not be recorded at all.
t) if opening capital is Rs 200000 drawing Rs 20000 and closing capital Rs 190000 the amount of
profit earned during the year will be:
i)Rs 20000 ii) 30000 iv) 5000 iv) 10000
u)A statement of affairs is similar to the –
i)balance sheet
PTA INTITUTION
9674395971 / 8777813923
Page 29
ii) trial balance
iii)trading account
iv)profit and loss account.
v) the capital in the beginning of the accounting year ascertained by
i) debtor account
ii)creditor account
iii)cash account
iv)opening statement of affairs.
w)A limitation of computer system is –
i)versatility ,ii) accuracy ,iii) decision making iv)storage .
x)the process of making data available to different users at the same time is called-
i)data sharing ii)data base iii)operating system iv) front end data base.
Set-22
1.Answer of the following questions: 1x24=24
a)which of the following is not a subfield of accounting?
i)management accounting,
ii)cost accounting,
iii)financial accounting,
iv)book keeping.
b)users of accounting information include.
i)creditors ii) lenders iii) customers, iv)all of the above.
c)a person who owes money to an enterprise against sale of goods is called a
i)creditor ii) debtor iii) lender iv) none of these
d)in account recording is made of :
i) only financial transactions,
ii)only non financial transactions,
iii)financial and non financial transactions,
iv)personal transaction of the proprietor.
e)all the following items are classified as fundamental accounting assumptions except.
i)consistency , ii)business entity iii)going concern iv) accrual.
f) Rahul enterprises follows the written down value method of depreciating machinery year
after year due to
i) comparability convenience iii)consistency, iv) all of the above.
g) the determination of expenses for an accounting period is based on the principle of
i)objective ii)materiality iii)matching iv)periodicity.
h) economic life of an enterprise is split into the periodic interval as per
i) periodicity ii) matching iii)going concern iv)accrual.
i)the process of transferring the debit and credit items from a journal to their respective
accounts in the ledger is termed as
i) posting ii)balancing of an account ,iii) recording , iv)arithmetically accuracy test.
j) the technique of finding the net balance of an account after considering the totals of both
debits and credits appearing in the accounts is known as
i) posting ii)recording iii) balancing of an account iv)arithmetically accuracy test.
k) ledger book is popularly known as
i)secondary book of accounts
PTA INTITUTION
9674395971 / 8777813923
Page 30
ii)principle book of accounts,
iii) subsidiary book of accounts,
iv) all of the above.
l) after preparing the trial balance the accountant finds that’s the total of debit side is short by
Rs 2500. This difference will be
i) credited to suspense account,
ii) debited to suspense account,
iii) adjusted to any of the debit balance account
iv) adjusted to any of the credit balance account.
m) if the amount is posted in the wrong account or it is written on the wrong side of the
account it is called
i) error of omission
ii) error of commission ,
iii) error of principle
iv)compensating error.
n) original cost =Rs 126000. Salvage value =Rs 6000 . depreciation for 2nd year @10% p.a under
WDV method
i) Rs 10800 ii) Rs 11340 iii) 15000 iv) 14000
o) on 1.1.2012 ,x draws a bill on y for Rs 10000 for 3 months maturity date of the bill will be:
i)1.4.2012 ii) 3.4.2012 iii) 4.4.2012 iv) 4.5.2012
p) sales is equal to
i) cost of goods sold –gross profit
ii) cost of goods sold + gross profit
iii) gross profit –cost of goods profit
iv) cost of goods sold + net profit.
q) non trading organization prepare
i) the income and expenditure account
ii) the trading account
iii) the profit and loss account ,
iv) the trading and profit & loss account.
r) the receipts and payments account is a summary of
i) debit balance of ledger account
ii) credit balance of ledger account
iii) cash receipts and payments
iv) income and expenses.
s) subscriptions received in advance by a club are shown
i) on the debit side of the income and expenditure account,
ii) on the credit side of the income and expenditure account
iii) on the assets side of the balance sheet
iv) on the liabilities side of the balance sheet .
t) the capital in the beginning of the accounting year is ascertained by preparing:
i) debtor’s account
ii) creditor’s account
iii) cash account
iv) opening statement of affairs.
u) in case of net worth method of single entry profit is ascertained by
i) comparing the capital in the beginning and at the end of the accounting period ,
PTA INTITUTION
9674395971 / 8777813923
Page 31
ii) preparing a profit & loss account ,
iii) preparing a income and expenditure account ,
iv) preparing a balance sheet
v) if opening capital is Rs 200000 drawings Rs 20000 and closing capital Rs 190000 the amount
of profit earned during the year will be
i) Rs 20000 ii)Rs 30000 iii)Rs 5000 iv)Rs 10000
w) readymade software packages
i) very costly ii) moderatecost iii) costless iv) cost changes .
x) customized software
i) very costlyii) moderate cost iii) costless iv) low cost
set-23
1Answer the following question :
a)Book –keeping is mainly concerned with
i)Recording of financial data
ii)Designing the systems in recording, classifying and summarizing the recorded data
iii)Interpreting the data for internal and external users;
iv)None of the above
b)Financial statement do not consider
i)Assets expressed in monetary terms
ii)Liabilities expressed in monetary terms
iii)Only assets expressed in non monetary terms
iv)Assets and liabilities expressed in non-monetary terms
c)On January I, sohan paid rent of Rs. 5000. This can be classified as
i)An event
ii)A transaction
iii)A transaction as well as an event
iv)Neither a transaction nor an event
d) users of accounting information include
i) creditors ii) landers iii) customers iv) all of the above .
e) Transaction between business and owner are recorded following ------- concept
i) periodicity ii) business entity iii) prudence iv) going concern.
F) one of the fundamental accounting assumption is
i) materiality ii) going concern iii) business entity iv) dual aspect .
g) bhagat ltd. Depreciate machinery by written down value method year after year due to
i) consistency ii)comparability iii) convenience ,iv) all of the above.
h) income is measured on the basis of
i) matching concept . ii) consistency concept, iii) cost concept, iv) None of the above
i) In double entry system of book keeping every business transaction affects :
i) Two accounts, ii) two sides of the same account, iii)the same account on two different dates,
all of the above
j) the debit note issued are used to prepare
i) Sales return book, ii) Purchase return book, iii) Sales book, iv) Purchase book.
k) The total of the purchases day book is posted periodically to the debit of :
i) Purchases account, ii) Cash book, iii) Journal proper, iv) None of these.
l) After the preparation of ledger , the next step is the preparation of
i) Trading accounts, ii) Trail balance, iii) Profit and Loss account, iv) None of the above
PTA INTITUTION
9674395971 / 8777813923
Page 32
m) Purchase of the office furniture Rs.1200 has been debited to General Expenses Account It is.
i) A clerical error, ii) An error of principle, iii) An error of omission, iv) Compensating error.
n) Original cost = Rs.126000
Salvage value = Rs. 6000
Useful life = 6 year.
Annual depreciation under SLM =
i)21000, ii) 20000, iii) 15000, iv) 14000
o) On 1.1.2012, X draws a bill on Y for Rs. 15000 for 3 months. At maturity Y requests X to
accept Rs. 5000 in cash and for the balance to draw a fresh bill for 2 months together with 12%
p.a. interest, amount of interest will be :
i) 200, ii) 300, iii) 240, iv) 380.
p) Goodwill is
i) a current asset, ii) an intangible fixed asset, iii) a tangible fixed asset, iv) an investment.
q) Subscription received in advance during the accounting year is
i) An income, ii) An expense, iii) An asset, iv) A liability.
r) Income and expenditure account shows a balance of
i) Cash in hand, ii) Capital account, iii) Net Profit, iv) Excess of revenue over expenditure or
vice versa.
s) Donation received for special purposes should be :
i) Credited to a separate fund account and shown in the Balance sheet, ii) Treated as revenue
iii) Treated as revenue unless the amount is large, iv) not recorded at all.
t) Statement at affairs is prepared to calculate :
i) Capital, ii) Cash balance, iii) Total Liabilities, iv) total assets.
u) If Opening Capital is Rs. 6000, closing Capital is Rs. 4000 and Net Profit is Rs. 3000.
Proprietor Drawings will be
i) 7000, ii) 1000, iii) 5000, iv) 2000.
v) In case of net worth method of single entry, Profit is ascertained by :
i) Comparing the capital in the beginning and at the end of the accounting period.
ii) Preparing a profit and loss account. iii) Preparing a Income and Expenditure Account.
Iv)Preparing a Balance sheet.
w) Which of the following is secondary storage device :
i) RAM, ii) ROM, iii) Pen Drive, iv) All of the above.
x) Which of the following is not an input device :
i) scanners, ii) Key boards, iii) Monitors, iv) None of the above.
Set-24
1.Answer the following questions:
a)Amount of money owed by a business are its –
i)Assets ii) liabilities iii) income iv) expenses
b)Which is not one of the three branches of accounting ?
i)Financial ii) cost accounting iii) management accounting
iv)form accounting .
c)The father of double entry system of accounting is –
i)Aristotle ii) lucapacioli iii) galileo iv) kautilya
d)Internal users of accounting information are :
i) Potential investors, ii)creditors iii) management iv) employees
e)The assumption that a business firm is separate and distinct from its owners is called –
PTA INTITUTION
9674395971 / 8777813923
Page 33
i)Going concern ii) conservatism iii) entity iv) consistency .
f)Dual aspect principle results in the accounting equation-
i)Assets=capital ,ii)assets +expenses=capital +profit,
iii)assets =capital + liabilities, iv)revenue =expenses
g)Capital is shown on the liability side of the balance sheet because of –
i) entity principle ii)dual aspect principle iii)accrual principle iv)going concern principle
h)revenue is usually recognized when the earning process is virtually complete.the principle described
here is - i) consistency ii) matching iii) revenue recognition iv) conservatism
i)classified summary of all transaction is called –
i)cash book ii) journal iii) ledger iv) trial balance .
j) the return inward day book is entered up from the following documents –
i) invoices received ,ii) credit notes sent out iii) invoices sent out, iv) debit notes received.
k) cash book is i) ledger account ii)subsidiary book iii) journal as well as ledger iv) none of these
l) a book reconciliation statement is prepare by –
i) bank ii)creditor of a bank iii) customer of a bank iv) debtors of a bank
m) a trial balance is prepared to detect-i) errors of omission ii) errors of principle
iii) compensating errors iv) errors of posting .
n) a provision is –i)an appropriation of profit ii) a charge against profit
iii)neither an appropriation of profit nor a charge against profit iv) none of these
o)on 8.7.13 draws on bill for Rs 1500 payable 2 months after sight .B accepts the bill on 10.7.13.the due
date of the bill is –i) 10.9.13ii) 13.9.13iii)8.9.13 iv) 11.9.13
p) drawings are deducted from i) sales ii) purchases iii)expenses iv) capital .
q) receipts and payment account is –i) an expense account ii) an asset account iii) a liability account
iv)none of these.
r) income and expenditure account is prepare on i) cash basis ii) accrual basis iii) mixed basis iv )none of
these.
s) a club is income and expenditure account performs the same function as a firm ‘s –
i)trading and profit and loss account ii) petty cash book iii) balance sheet iv) bank account
t) recording of transactions under single entry is- i) incomplete ii) unscientific iii) inaccurate iv) all of
these.
u)the following information relates to a trader :
opening capital Rs 25000, closing capital Rs 28000 and net profit Rs 5000 his drawings are
i)Rs 1000 ii)Rs2000 iii)Rs4000 iv) Rs5000
v)a statement of affairs is similar to the –i) balance sheet ii) trading account iii) trial balance
iv) profit and loss account .
w) what is the full form of MIS ?
i)master information system
ii) marketing information system
iii)management information system
iv) methodical information system .
x) in how many types the accounting can be classified ?
i) three ii) four iii) five vi)no classification .
set-25
Select the best alternative : 1x24=24
a) A person who owes money to the business is called :
PTA INTITUTION
9674395971 / 8777813923
Page 34
(i) Debtors , (ii) Creditor, (iii) worker, (iv) Proprietor
b) Following are users of accounting information :
(i) Creditors , (ii) Lenders, (iii) Customers, (iv) All of the above
c) When information about two different enter prises has been prepared and presented in a similar
manner, the information exhibits the characteristics of :
Reliability, (ii) Consistency, (iii) Verifiability, (iv) comparability
d) Which of the following is not an Asset :
i)Patent right, (ii) Prepaid Insurance; (ii) Stock-in-trade; (iv) Bank overdraft
e)According to convention of conservatisms purchase :
i) Closing stock is valued at cost price,
ii) Closing stock is valued at market price,
iii) Closing stock is valued at cost price or market price whenever is lower,
iv) Closing stock is valued at real value.
f) Accounting principles are :
i) Wwitter, (ii) Oral, (iii) Acceptable to all, (iv) According to will
g) A machinery was purchases on 1st April 2012, for 100000. But its market value as on 31 st march,
2013, was 1300000. If the company shows the machinery at 1300000 in its Balance Sheet, which of the
following concepts is not followed by the company ?
(I Cost concept, (ii) Matching concept, (Realization concept, (iv) Periodicity concept.
h) AS- 6 explains :
Cash Flow Statements, (ii) Accounting for Government Grants, (iii) Depreciation Accounting
(iv) Intangibles Assets
i)The term ‘Journal’ is derived from :
I ) The French word, (ii) the Dutch word, (iii) Greek word, (iv) Roman word
j) When favorable balance as per Pass Book is the starting point and final result is negative figure :
i) Bank balance as per Pass Book, (ii) Bank Overdraft Balance as per Pass Book, (iii) Bank balance as per
Cash Book (iv) Bank Overdraft6 balance as per Cash Book
k) The Trail Balance is :
i)A subsidiary book, (ii) a statement, (iii) an Account, (iv) a General Journal.
l)Wages paid for the construction of building debited to wages account, is an error of :
i)Error of principle, (ii) Error of commission, (iii) Mathematical error, (iv) Error of Omission.
m)Secret Reserve is created :
i) By showing capital expenses in profit and loss Account, (ii) By decreasing the sales,
Iii) By showing the closing stock at lesser price (iv) All the above.
n) Noting Charges are paid in the event of ;
i) Honour of a bill, (ii) dishonor of a bill, (iii) renewal of a bil, (iv) endorsement of a bill.
o)Gross Profit is equal to :
i) [Net Sales – (Net purchases + Direct Expenses]
ii) Closing stock – (opening stock + net purchases)
iii) [Net sales + Closing stock] – [opening stock +Net purchases + Direct expenses]
iv)None of the above.
p) A credit balance of the Income & Expenditure A/C indicates :
i) Excess of Asset over Liabilities,
ii) Excess of Income over expenditure,
iii) Excess of Liabilities Over Income
PTA INTITUTION
9674395971 / 8777813923
Page 35
iv) Excess of Expenditure Over Income.
q) Receipts & Payments A/C indicates :
i)Statement, (ii) Real A/c, (iii) Personal A/c, (iv) None of above.
r) Income and Expenditure Account records transaction of :
i)All revenue nature, (ii) All Capital nature, (iii) Both revenue and Capital nature,
None of above
s) If the opening capital is more 20000 then closing capital and drawings are more 30000 than the
further capital introduced by the owner, then :
The profit would be 50000
The loss would be 50000
The profit would be 10000
The loss would be 10000
u) Payments to creditors can be obtained from :
i) Debtors account, (ii) Bills Payable Account,(iii) Creditor Account,
(iv Bills Receivable Account.
w) Recording of transition under single entry system is-
i) Incomplete,(ii) unscientific, (iii) Inaccurate,(iv) All of these.
x)The system which helps to make decision at the strategies level by graphics and communications is
called :
i)Accounting information system,
ii) Transaction processing system,
iii) Management Information system,
iv) Exceptive Information System.
y) Which accounting software is used in large and typhus business organization with multi-user and
geographically cottered Location ?
i) Ready to use Software, ii)Customized Software, (iii) Application Software, (iv) Tailor-made Software.
z) If goods is returned to the supplier then we prepare :
Debit note, (ii) credit note, (iii)receipt, (iv) invoice.
PTA INTITUTION
9674395971 / 8777813923
Page 36

MCQ All 25 Accounts Xi

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MCQ All 25 Accounts Xi

Uploaded by

Copyright:

Available Formats

MCQ QUESTIONS :

1.Choose the correct Answer :

1.Answer the following questions:

1.Answer the following questions : 1x24=24

1.Answer the following questions :

1.answer the following questions :

o) when a bill is dishonoured noting charges is borne by :

c)The basic function of financial accounting is to

Answer the following questions (alternatives are to be stated) 1x24=24

1.answer the following questions:

c)amount of money owned by a business are its

1. select the correct answer :

1.answer the following questions :

1.Answer the following questions :

Answer the following questions :

You might also like