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View Answer: Correct Answer: (A) Convention of Conservatism
View Answer: Correct Answer: (A) Convention of Conservatism
Creating Provision against fluctuation in the price of investment is an example of which accounting convention
A. Convention of conservatism
B. Convention of full disclosure
C. Convention of materiality
D. Convention of consistency
View answer
Correct answer: (A)
Convention of conservatism
A. Customers account
B. Sales return account
C. Goods account
D. Purchase account
View answer
Correct answer: (B)
Sales return account
A. Discount account
B. Customer’s account
C. Sales account
D. Cash account
View answer
Correct answer: (B)
Customer’s account
A. Sole proprietorship
B. Corporation
C. Partnership
D. All of them
View answer
Correct answer: (D)
All of them
A. Practicability
B. Subjectivity
C. Convenience in recording
D. None of the above
View answer
Correct answer: (A)
Practicability
A. Real a/c
B. Personal a/c
C. Nominal a/c
D. None of these
View answer
Correct answer: (B)
Personal a/c
A. Shareholders
B. Creditors
C. Managers
D. Regulatory agencies
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Correct answer: (C)
Managers
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Correct answer: (D)
Preparing trading & profit & loss a/c
9. Which one of the following items would fall under the definition of a liability
A. Cash
B. Debtor
C. Owner’s equity
D. None of these
View answer
Correct answer: (C)
Owner’s equity
10. The basic sequence in the accounting process can best be described as:
View answer
Correct answer: (D)
Transaction, source document, journal entry, ledger account, trial balance.
A. cash account
B. capital account
C. drawings account
D. creditors account
View answer
Correct answer: (B)
capital account
12. Which of the following is a real (permanent) account?
A. Goodwill
B. Sales
C. Accounts Receivable
D. Both Goodwill and Accounts Receivable
View answer
Correct answer: (D)
Both Goodwill and Accounts Receivable
13. Which of the following errors will be disclosed in the preparation of a trial balance?
View answer
Correct answer: (C)
Posting only the debit portion of a particular journal entry.
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Correct answer: (A)
All management function
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Correct answer: (A)
Credited to the trading account
16. Financial information should be neutral and bias free" is the dictation of which one of the following?
A. Completeness concept
B. Faithful representation Concept
C. Objectivity Concept
D. Duality Concept
View answer
Correct answer: (C)
Objectivity Concept
18. A company's telephone bill consisting of a Rs.200 monthly base amount, plus long distance charges, would be classified
as a:
A. Variable cost
B. Committed fixed cost
C. Direct cost
D. Semi variable cost
View answer
Correct answer: (D)
Semi variable cost
19. A book containing a chronological record of business transaction & original record
A. Journal
B. Ledger
C. Trial balance
D. None of these
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Correct answer: (A)
Journal
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Correct answer: (D)
Payment of current period rent
View answer
Correct answer: (B)
Salaries a/c
A. Discount a/c
B. Customer a/c
C. Sales a/c
D. None of these
View answer
Correct answer: (B)
Customer a/c
23. Accounting does not record non-financial transactions because of:
A. Accrual concept
B. Cost concept
C. Continuity concept
D. Money measurement concept
View answer
Correct answer: (D)
Money measurement concept
A. Sole proprietorship
B. Corporation
C. Partnership
D. All of them
View answer
Correct answer: (D)
All of them
View answer
Correct answer: (B)
Revenues & Costs
View answer
Correct answer: (A)
Ascertain the cost of goods and services
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Correct answer: (C)
Assets and expenses.
28. Which of the following statements about differences between financial and managerial accounting is incorrect?
A. Managerial accounting information is prepared primarily for external parties such as stockholders and creditors;
financial accounting is directed at internal users.
B. Financial accounting is aggregated; managerial accounting is focused on products and departments.
C. Managerial accounting pertains to both past and future items; financial accounting focuses primarily on past
transactions and events.
D. Financial accounting is based on generally accepted accounting practices; managerial accounting faces no similar
constraining factors.
View answer
Correct answer: (A)
Managerial accounting information is prepared primarily for external parties such as stockholders and creditors; financial
accounting is directed at internal users.
29. Custom and traditions which guide the accountant while preparing the accounting statements
A. Accounting convention
B. Accounting concepts
C. Accounting principles
D. None of these
View answer
Correct answer: (C)
Accounting principles
A. Assets
B. Liabilities
C. Capital
D. All of these
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Correct answer: (D)
All of these
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Correct answer: (A)
Disclosed in the account
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Correct answer: (E)
Both b and c above
A. Periodicity concept
B. Materiality Principle
C. Entity Concept
D. Consistency concept
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Correct answer: (C)
Entity Concept
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Correct answer: (D)
Profit increases capital
A. Personal a/c
B. Impersonal a/c
C. Real a/c
D. Nominal a/c
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Correct answer: (D)
Nominal a/c
36. Cost of asset should always be equal to the cost of the liabilities. This concept is
View answer
Correct answer: (B)
Matching Concept
A. Consistency concept
B. Conservatism concept
C. Accounting period concept
D. Cost Concept
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Correct answer: (C)
Accounting period concept
A. Current asset
B. Current liability
C. Short term liability
D. None of these
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Correct answer: (A)
Current asset
39. Which of the following is a liability?
View answer
Correct answer: (A)
Loan from Mr.Y
A. Only to workers
B. Only to government
C. Only to consumers
D. To management, workers, consumers and government
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Correct answer: (D)
To management, workers, consumers and government
A. Fixed cost
B. Variable cost
C. Semi variable cost
D. None of the above
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Correct answer: (B)
Variable cost
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Correct answer: (E)
All of a, b, c above
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Correct answer: (A)
It is a list of balances on the books b) It is a special account
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Correct answer: (D)
All of the above
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Correct answer: (C)
Classifying and recording business transaction
46. According to schedule VI Companies Act which item is not shown on Asset side of Balance sheet
A. Investment
B. Current Loan & Advances
C. Provision
D. Lease Holds
View answer
Correct answer: (C)
Provision
A. Prime cost
B. Factory overhead
C. Selling overhead
D. Office overhead
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Correct answer: (B)
Factory overhead
View answer
Correct answer: (A)
Debit side Profit & Loss a/c
View answer
Correct answer: (C)
Results in no change in the Total Assets
A. Accrual concept
B. Cost concept
C. Continuity concept
D. Money measurement concept
View answer
Correct answer: (D)
Money measurement concept
A. Patents
B. Trade Marks
C. Copyright
D. Land
View answer
Correct answer: (D)
Land
52. Creating provision against fluctuation in the price of investment is application of accounting concept
A. Convention of conservatism
B. Convention of full disclosure
C. Convention of consistency
D. None of these
View answer
Correct answer: (A)
Convention of conservatism
A. Real a/c
B. Personal a/c
C. Nominal a/c
D. None of these
View answer
Correct answer: (A)
Real a/c
54. The following comments each relate to the recording of journal entries. Which statement is true?
View answer
Correct answer: (D)
Journalization is the process of converting transactions and events into debit/credit format.
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Correct answer: (C)
Business as a going concern
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Correct answer: (C)
Presentation of account data
A. sales
B. Share capital
C. Reserves and surplus
D. Unsecured loan
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Correct answer: (A)
sales
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Correct answer: (B)
The transactions which cannot be expressed in money, will not be recorded in accounting books
A. Profit
B. Assets
C. Company
D. Books of A/c
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Correct answer: (A)
Profit
60. Fixed assets and current assets are categorized as per concept of:
A. Separate entity
B. Going concern
C. Consistency
D. Time period
View answer
Correct answer: (B)
Going concern
A. Service entities
B. Manufacturing entities
C. Non profit entities
D. All of these
View answer
Correct answer: (D)
All of these
A. Current assets
B. Current liabilities
C. Fixed asset
D. Fixed liability
View answer
Correct answer: (A)
Current assets
View answer
Correct answer: (C)
Recording of day to day business transactions
A. Advertisement account
B. Sales account
C. Purchase account
D. None of the above
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Correct answer: (C)
Purchase account
65. Investment of X company profit in shares of other company PQR Pvt. ltd are recorded in
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Correct answer: (A)
Asset side of Balance Sheet
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Correct answer: (A)
Cash account
67. Income tax paid by a sole proprietor on his business income should be:
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Correct answer: (C)
Deducted from capital account in the balance sheet
A. Rules of Personal
B. Rules of Real
C. Rules of Nominal
D. All of these
View answer
Correct answer: (B)
Rules of Real
A. Machinery
B. Building
C. Cash
D. Creditor
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Correct answer: (D)
Creditor
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Correct answer: (C)
Results in no change in the Total Assets
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Correct answer: (C)
Debit purchases a/c; credit A a/c
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Correct answer: (C)
Results in no change in total assets
74. The transferring of debit and credit items from journal to the respective accounts in the ledger is called as
A. Ledger
B. Posting
C. Forward journal
D. None of these
View answer
Correct answer: (B)
Posting
75. The following comments all relate to the recording process. Which of these statements is correct?
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Correct answer: (B)
The general ledger is posted from transactions recorded in the general journal.
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Correct answer: (D)
All of these
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Correct answer: (D)
Short term investment
A. 1910
B. 1939
C. 1950
D. 1960
View answer
Correct answer: (C)
1950
A. Cash basis
B. Accrual basis
C. Mercantile basis
D. Single entry basis
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Correct answer: (A)
Cash basis
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Correct answer: (D)
Prime Cost
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Correct answer: (B)
Not relevant for decision making
82. Information about an item is ______________ if its omission or misstatement might influence the financial decision of
the users taken on the basis of that information
A. Concrete
B. Complete
C. Immaterial
D. Material
View answer
Correct answer: (D)
Material
83. Proposed dividends" is shown in the Balance Sheet of a company under the head:
A. Provisions
B. Reserves and Surplus
C. Current Liabilities
D. Other Liabilities
View answer
Correct answer: (A)
Provisions
A. ominal capital
B. Paid up capital
C. Issues capital
D. None of these
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Correct answer: (A)
Nominal capital
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Correct answer: (B)
Liability side of B/S
A. Statutory requirements
B. Competition in the market
C. Labour unrest
D. Limitations of financial accounting
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Correct answer: (D)
Limitations of financial accounting
A. Landlords account
B. Rent account
C. Cash account
D. Expense account
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Correct answer: (C)
Cash account
88. The primary objective of management accounting is
View answer
Correct answer: (B)
Provide management complete and true information
89. Cost of goods sold= opening stock+ net purchases+ expenses on Purchases – sales Which part of formula is wrong?
A. opening stock
B. net purchases
C. expenses on Purchases
D. sales
View answer
Correct answer: (D)
sales
View answer
Correct answer: (C)
Gain for the business
A. Realization Concept
B. Matching Concept
C. Cost Concept
D. Both a and b above
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Correct answer: (D)
Both a and b above
A. Debtors
B. Investors
C. Creditors
D. Shareholders
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Correct answer: (C)
Creditors
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Correct answer: (C)
Trading account Profit and Loss account
A. Loan
B. Unsecured Loan
C. Secured Loan
D. Advance by Manager & director
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Correct answer: (C)
Secured Loan
95. Opening stock + ______________ + Direct Expenses (Carriage on Raw material)-Closing Stock = ______________
A. Sales, Purchases
B. Sales, Sales return
C. Purchases, Cost of goods produced
D. Purchases, Cost of goods sold
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Correct answer: (C)
Purchases, Cost of goods produced
View answer
Correct answer: (A)
Debit side Profit & Loss a/c
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Correct answer: (B)
Liability side of balance sheet
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Correct answer: (B)
Liability side of balance sheet
99. Which of the following is a liability?
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Correct answer: (A)
Loan from Mr.Y
100. The revenue recognition principal dictates that all types of incomes should be recorded or recognized when
A. Cash is received
B. At the end of accounting period
C. When they are earned
D. When interest is paid
View answer
Correct answer: (C)
When they are earned
01. Which of the following is time span into which the total life of a business is divided for the purpose of preparing
financial statements?
A. Fiscal year
B. Calendar year
C. Accounting period
D. Accrual period
View answer
Correct answer: (C)
Accounting period
102. If the total assets of the company amount to Rs 1,50,000 and owner’s equity is Rs 70,000,the amount of liabilities will
be
A. Rs 70,000
B. Rs 80,000
C. Rs 90,000
D. Rs 1,00,000
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Correct answer: (B)
Rs 80,000
View answer
Correct answer: (B)
Double entry system
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Correct answer: (B)
In making provision for bad doubtful debts
105. Rules of action or conduct adopted by the accountants universally while recording accounting transaction
A. Accounting convention
B. Accounting concepts
C. Accounting principles
D. None of these
View answer
Correct answer: (C)
Accounting principles
106. Which of the following items would not fall under the definition of an asset?
A. Land
B. Machine
C. Cash
D. Milk
View answer
Correct answer: (D)
Owner Equity
A. Accounting convention
B. Accounting concepts
C. Accounting principles
D. None of these.
View answer
Correct answer: (B)
Accounting concepts
108. Which of the following is time span into which the total life of a business is divided for the purpose of preparing
financial statements?
A. Fiscal year
B. Calendar year
C. Accounting period
D. Accrual period
View answer
Correct answer: (C)
Accounting period
View answer
Correct answer: (D)
Asset side of B/S
A. Cost unit
B. Cost centre
C. Cost object
D. Cost estimation
View answer
Correct answer: (B)
Cost centre
A. Building
B. Bank Balance
C. Plant Patents
D. Goodwill
View answer
Correct answer: (B)
Bank Balance
A. Dual concept
B. Divider concept
C. Entity concept
D. Landlord concept
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Correct answer: (C)
Entity concept
114. The reduction in the value of the fixed assets which can arise due to time factor is
A. Discount
B. Depreciation
C. Reduction
D. None of the above
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Correct answer: (b)
Depreciation
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Correct answer: (B)
Office fixtures sold
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Correct answer: (D)
Correction concept
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Correct answer: (C)
(a) &(b) above
A. Fixed cost
B. Variable cost
C. Semi variable cost
D. None of the above
View answer
Correct answer: (B)
Variable cost
119. Which of the following account balance will be shown on debit side of Trial Balance?
A. Outstanding expenses
B. Cash a/c
C. Short term loan
D. creditors
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Correct answer: (D)
creditors
120. Cash Purchases:
A. Increases assets
B. Results in no change in the total assets
C. Decreases assets
D. Increases liability
View answer
Correct answer: (C)
Decreases assets
121. The practice of appending notes regarding contingent liabilities in accounting statements is in pursuance to:
A. Convention of consistency
B. Money measurement concept
C. Convention of conservatism
D. Convention of disclosure
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Correct answer: (D)
Convention of disclosure
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Correct answer: (B)
Cost of goods sold + gross profit
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Correct answer: (B)
Real account- credit what comes in
124. The work of factory employees that can be physically associated with converting raw material into finished goods is
classified as-
A. Manufacturing overhead
B. Indirect materials
C. Indirect labour
D. Direct labour
View answer
Correct answer: (D)
Direct labour
125. ______________ cost will still be incurred although a plant is shut down temporarily.
View answer
Correct answer: (D)
Depreciation
126. According to which concept business is treated as a unit apart from owner
A. Dual concept
B. Divider concept
C. Entity concept
D. Landlord concept
View answer
Correct answer: (C)
Entity concept
A. Remains fixed
B. Fluctuates with volume of production
C. Varies in consideration with the volume of sales
D. None of the above
View answer
Correct answer: (B)
Fluctuates with volume of production
128. Making the provision for doubtful debts and discount on debtors in anticipation of actual bad debts and discount is an
example for which concept
A. Conservatism concept
B. Continuity concept
C. Realization concept
D. All of these
View answer
Correct answer: (A)
Conservatism concept
View answer
Correct answer: (D)
All of these
A. Trading a/c
B. Balancesheet
C. Profit & loss a/c
D. Trial balance.
View answer
Correct answer: (C)
Profit & loss a/c
View answer
Correct answer: (A)
The entity continue running for foreseeable future
132. Accounting principles are divided into two types. These are ______________
A. Accounting Concepts
B. Accounting Conventions
C. Accounting Standards
D. Accounting Concepts &Accounting Conventions
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Correct answer: (D)
Accounting Concepts &Accounting Conventions
A. Depreciation
B. Wages
C. Salary
D. Stationary
View answer
Correct answer: (A)
Depreciation
View answer
Correct answer: (B)
Interpret financial data
A. Practicability
B. Subjectivity
C. Convenience in recording
D. None of these
View answer
Correct answer: (A)
Practicability
136. According to the money measurement concept the following will be recorded in the books of accounts of the business
View answer
Correct answer: (C)
Value of plant and machinery
A. Debtors Accounts
B. Bad debts a/c
C. Sales a/c
View answer
Correct answer: (A)
Debtors Accounts
138. Accountant should follow the same principles of accounting continuously is as per which accounting convention
A. Convention of conservatism
B. Convention of full disclosure
C. Convention of consistency
D. None of these
View answer
Correct answer: (C)
Convention of consistency
139. A system in which accounting entries are made on the basis of amounts having become due for payment or receipt is
called
A. Cash concept
B. Accrual concept
C. Matching concept
D. On-going concept
View answer
Correct answer: (B)
Accrual concept
140. Debit all expenses and losses Credit all gains and income.
A. Real a/c
B. Personal a/c
C. Nominal a/c
D. None of these
View answer
Correct answer: (C)
Nominal a/c
141. Transferring the debit and credit item from the journal to the respective accounts is called
A. Compound Journal
B. Ledger
C. Trial balance
D. None of these
View answer
Correct answer: (B)
Ledger
View answer
Correct answer: (C)
Trial balance
143. Retained earnings will change over time because of several factors. Which of the following factors would explain an
increase in retained earnings?
A. Net Loss
B. Net income
C. Dividend
D. Investment by share holder
View answer
Correct answer: (B)
Net income
144. The full disclosure principle, as adopted by the accounting profession, is best described by which of the following?
A. All information related to an entity's business and operating objectives is required to be disclosed in the financial
statements.
B. Information about each account balance appearing in the financial statements is to be included in the notes to the
financial statements.
C. Enough information should be disclosed in the financial statements so a person wishing to invest in the stock of the
company can make a profitable decision.
D. Disclosure of any financial facts significant enough to influence the judgment of an informed reader
View answer
Correct answer: (D)
Disclosure of any financial facts significant enough to influence the judgment of an informed reader
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Correct answer: (D)
Provides a listing of the balance of each account in active use.
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Correct answer: (B)
On Assets side of balance sheet
A. Planning
B. Decision making
C. Control
D. All of these
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Correct answer: (D)
All of these
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Correct answer: (B)
Unlike principles of physical sciences.
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Correct answer: (A)
Individual and business
A. Asset
B. Liability
C. Accounts
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Correct answer: (C)
Accounts
A. Management
B. Creditors
C. Bankers
D. All of the above
View answer
Correct answer: (D)
All of the above
A. Current assets
B. Investments
C. Property, plant, and equipment
D. Intangible assets
View answer
Correct answer: (A)
Current assets
153. The Cash account on the balance sheet should not include which of the following items?
View answer
Correct answer: (A)
Travel advances to employees
A. Single aspect
B. Dual aspect
C. Triple aspect
D. None of these
View answer
Correct answer: (B)
Dual aspect
155. Which of the following equations properly represents a derivation of the fundamental accounting equation?
Assets + liabilities = Owner Equity
Asset = OwnerEquity
Cash = Assets
Assets – Liabilities = Owner Equity
A. Only (a)
B. Both (a) (b)
C. All (a)(b)(c)(d)
D. None of these
View answer
Correct answer: (D)
None of these
A. Accounts payable
B. Accounts receivable
C. Sales
D. Cash
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Correct answer: (C)
Sales
View answer
Correct answer: (C)
Both (a) and (b).
158. The cost concept records the figures at
A. Market values
B. Actual amount paid
C. Actual amount or market values whichever is less.
D. MRP maximum retail price
View answer
Correct answer: (B)
Actual amount paid
A. Estimates of facets
B. Anticipated facts
C. Recorded facts
View answer
Correct answer: (C)
Recorded facts
A. 1910
B. 1939
C. 1950
D. 1960
View answer
Correct answer: (C)
1950
A. Fixed asset
B. Investment
C. Current asset
D. Owners equity
View answer
Correct answer: (D)
Owners equity
View answer
Correct answer: (C)
Financial accounting, management accounting and cost accounting
A. Analytical
B. Clerical
C. Executive
D. Non – executive
View answer
Correct answer: (B)
Clerical
164. 206. Which of the following is true for: – "In accounts recording is done of_ _ _ _ _"
View answer
Correct answer: (A)
only financial transaction
A. Capital
B. Revenue
C. Direct
D. Non – cash
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Correct answer: (B)
Revenue
166. A company's telephone bill consisting of a Rs.200 monthly base amount, plus long distance charges, would be
classified as a:
A. Variable cost
B. Committed fixed cost
C. Direct cost
D. Semi variable cost
View answer
Correct answer: (D)
Semi variable cost
167. The practice of appending notes regarding contingent liabilities in accounting statement is pursuant of
A. Convention of consistency
B. Money measurement concept
C. Convention of conservatism
D. Convention of disclosure
View answer
Correct answer: (C)
Convention of conservatism
View answer
Correct answer: (D)
Direct materials and direct labour
A. Direct labour
B. Direct materials
C. Manufacturing overhead
D. Advertising
View answer
Correct answer: (A)
Direct labour
A. Prime Cost
B. Factory Overhead
C. Selling overhead
D. Office overhead
View answer
Correct answer: (B)
Factory Overhead
A. Rs. 1,80,000
B. Rs. 2,00,000
C. Rs. 1,70,000
D. Rs. 2,10,000
View answer
Correct answer: (C)
Rs. 1,70,000
172. Aggregate of cost of goods sold and selling and distribution overheads is known as:
A. Total Cost
B. Office Cost
C. Cost of sales
D. Selling overhead
View answer
Correct answer: (A)
Total Cost
View answer
Correct answer: (D)
All of these
A. Indirect labour
B. Direct materials
C. Insurance on factory building
D. Indirect materials
View answer
Correct answer: (B)
Direct materials
175. A manufacturing process requires small amounts of glue. The glue used in the process is classified as
A. A prime cost
B. An indirect material
C. A direct material
D. Miscellaneous expense
View answer
Correct answer: (B)
An indirect material
A. Miscellaneous expense
B. Direct materials
C. Indirect materials
D. Immaterial items
View answer
Correct answer: (C)
Indirect materials
177. Manufacturing costs are also known as product costs. Which of the following best describes those costs which are
considered to be manufacturing costs?
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Correct answer: (C)
Direct materials, direct labor, factory overhead, and administrative overhead.
178. Accounting principles are ______________ which are adopted by the accountant universally while recording
accounting transaction.
View answer
Correct answer: (C)
Rules of action or conduct
179. Showing purchased office equipments in financial statements is the application of which accounting concept?
A. Historical cost convention
B. Materiality
C. Prudence
D. Matching concept
View answer
Correct answer: (B)
Materiality
View answer
Correct answer: (A & B)
Good sold on credit & Office fixtures sold
A. Disclosure of loss
B. Disclosure of profit
C. Disclosure of all information which are important for investor
D. Disclosure of all information which are important for management
View answer
Correct answer: (C)
Disclosure of all information which are important for investor
182. Using "lower of cost and net realisable value(Market Value)" for the purpose of inventory valuation is the
implementation of which of the following concepts?
View answer
Correct answer: (C)
The prudence concept
183. Which financial statement represents the accounting equation ASSETS = LIABILITIES + OWNER'S EQUITY
A. Income Statement
B. Cash Flow Statement
C. Balance Sheet
D. Fund Flow Statement
View answer
Correct answer: (C)
Balance Sheet
A. Cost
B. Net profit
C. Gross profit
D. Selling price
View answer
Correct answer: (A)
Cost
A. Management only
B. Government only
C. Investor only
D. All of these
View answer
Correct answer: (D)
All of these
A. Projected data
B. External data only
C. Historic data
D. Manager data only
View answer
Correct answer: (C)
Historic data
A. Rules of Personal
B. Rules of Real
C. Rules of Nominal
D. All of these
View answer
Correct answer: (C)
Rules of Nominal
View answer
Correct answer: (A)
Debiting salary a/c; crediting cash a/c
189. Amortization of intangible Asset Such as Goodwill which has indefinite life is an example of accounting concept
A. Conservatism Concept
B. Continuity Concept
C. Realisation Concept
D. Measurement Concept
View answer
Correct answer: (A)
Conservatism Concept
190. ______________ cost refers to those cost which have already been incurred and cannot be altered by any decision in
the future.
A. Opportunity cost
B. Sunk Cost
C. Incremental cost
D. Decremental cost
View answer
Correct answer: (B)
Sunk Cost
View answer
Correct answer: (C)
To ascertain true cost of products and services
A. Historical
B. Forward looking
C. Analytical
D. Social
View answer
Correct answer: (A)
Historical
193. An accounting that deals with the accounting and reporting of information to management regarding the detail
information is
A. Financial accounting
B. Management accounting
C. Cost accounting
D. Real Accounting
View answer
Correct answer: (B)
Management accounting
A. Debtors account
B. Bad debts account
C. Sales account
D. Creditors account
View answer
Correct answer: (A)
Debtors account
View answer
Correct answer: (C)
Control of business activities
A. Creditor
B. Department manager
C. Controller
D. Treasurer
View answer
Correct answer: (A)
Creditor
A. Cost
B. Financial
C. Management
D. All
View answer
Correct answer: (B)
Financial
198. Which type of asset class includes those assets which have only definite use and become valueless when the yield is
over?
A. Fixed asset
B. Current asset
C. Fictitious asset
D. Wasting asset
View answer
Correct answer: (D)
Wasting asset
View answer
Correct answer: (D)
Manufacturing and service concern
200. Reserve for doubtful debts appearing in the trial balance should be:
View answer
Correct answer: (E)
Both a and c
201. Under which concept it is assumed that the enterprises has neither the intention nor the necessity of liquidation or of
curtailing materiality the scale of operation
View answer
Correct answer: (C)
Going concern concept
View answer
Correct answer: (B)
Art
A. Original
B. Duplicate
C. Personal
D. Nominal
View answer
Correct answer: (A)
Original
204. Fixed assets and current assets are categorized as per concept of:
A. Separate entity
B. Going concern
C. Consistency
D. Time period
View answer
Correct answer: (B)
Going concern
205. The allocation of owner's private expenses to his/her business violates which of the following?
A. Accrual concept
B. Matching concept
C. Separate business entity concept
D. Consistency concept
View answer
Correct answer: (C)
Separate business entity concept
206. Profit from sale of assets is example for–
A. Revenue Profit
B. Capital Profit
C. Loss
D. None of these
View answer
Correct answer: (B)
Capital Profit
View answer
Correct answer: (A)
Recording of financial data relating to business operation
208. The convention of conservatism when applied to the balance sheet result in.
View answer
Correct answer: (A)
Understand the asset
A. Cash a/c
B. Capital a/c
C. Drawing a/c
D. Bank a/c
View answer
Correct answer: (B)
Capital a/c
A. Customer a/c
B. Sales return a/c
C. Goods a/c
D. Purchase return a/c
View answer
Correct answer: (B)
Sales return a/c
A. Cash a/c
B. Mahesh a/c
C. Sales a/c
D. Sales return a/c
View answer
Correct answer: (A)
Cash a/c
View answer
Correct answer: (C)
Cash a/c
View answer
Correct answer: (D)
None of the above
A. Rs.1020000
B. Rs.1010000
C. Rs.1030000
D. None of the above
View answer
Correct answer: (C)
Rs.1030000
A. 600,000
B. 1,400,000
C. 2,000,000
D. None of these
View answer
Correct answer: (C)
2,000,000
216. A business has the following items in it:
Land Rs.1, 500,000
Machinery Rs.80, 000
Cash Rs.20, 000
Owners equity Rs.900, 000
Loan Rs.500, 000
Creditors?
A. Rs.200, 000
B. Rs.700, 000
C. Rs.800, 000
D. Rs1, 100,000
View answer
Correct answer: (A)
Rs.200, 000
A. 1,000,000
B. 1,550,000
C. 800,000
D. None of these
View answer
Correct answer: (C)
800,000
218. XYZ ltd.has provided the following information about its balance sheet:
Cash Rs.100
Accounts Receivable Rs.500
Stock holder equity Rs.700
Accounts Payable Rs.200
Bank Loan Rs.1,000
Based on the information provided, how much are XYZ ltd.Total liabilities?
A. Rs.200
B. Rs.1900
C. Rs.1200
D. Rs.1700
View answer
Correct answer: (B)
s.1900
View answer
Correct answer: (C)
Both (a) and (b).
A. Certain assumptions
B. Certain facts and figures
C. Certain accounting records
D. Practice experience
View answer
Correct answer: (B)
Certain facts and figures
A. Appropriation of profits
B. Estimates of profits
C. Estimates of costs
View answer
Correct answer: (A)
Appropriation of profits
A. Determination of cost
B. Determination of profit
C. Determination of price
D. Determination of selling price
View answer
Correct answer: (B)
Determination of profit
A. Actual figures
B. Budgeted figures
C. Standard figures
D. Management Figure
View answer
Correct answer: (A)
Actual figures
A. Trading account
B. Profit and loss account
C. Balance sheet
D. All of the above
View answer
Correct answer: (D)
All of the above
225. Depreciation is a ______________
View answer
Correct answer: (B)
Non cash operating expenditure
A. Nominal account
B. Real Account
C. Artificial person’s account
D. Representative personal account
View answer
Correct answer: (D)
Representative personal account
227. The work of factory employees that can be physically associated with converting raw material into finished goods is
classified as ––
A. Manufacturing overhead
B. Indirect materials
C. Indirect labour
D. Direct labour
View answer
Correct answer: (D)
Direct labour
A. Work on cost
B. Work Cost
C. Cost of Production
D. Direct Cost
View answer
Correct answer: (B)
Work Cost
View answer
Correct answer: (B)
Raw material, Finished goods
230. All costs other than direct materials cost, direct labour cost and direct expenses are known as:
View answer
Correct answer: (B)
Overhead
A. Balance sheet
B. Trial Balance
C. Ledger
D. Journal
View answer
Correct answer: (C)
Ledger
A. Account of Suresh
B. Salaries account
C. Cash account
D. Outstanding expenses
View answer
Correct answer: (B)
Salaries account
A. M. S. Gosav
B. Wheldon
C. LucoPacioli
D. R. N. Carter
View answer
Correct answer: (C)
LucoPacioli
A. Balance Sheet
B. Director’s Report
C. Foot note down the balance sheet
D. Chairman’s report
View answer
Correct answer: (A)
Balance Sheet
A. Compulsory
B. Optional
C. Obligation
D. Statutory requirement
View answer
Correct answer: B)
Optional
View answer
Correct answer: (A)
Financial
A. Liquidity ratios
B. Debt ratios
C. Coverage ratios
D. Profitability ratios
View answer
Correct answer: (D)
Profitability ratios
238. Process that involves decision making with respect to investment in fixed asset
A. Valuation
B. Breakeven analysis
C. Capital budgeting
D. Material management decision
View answer
Correct answer: (C)
Capital budgeting
239. When a Bond's Yield to Maturity is greater than the Bond's Coupon Rate, the Bond
A. Is selling at a Premium
B. Has reached its Maturity Date
C. Is priced at Par
D. Is selling at a Discount
View answer
Correct answer: (D)
Is selling at a Discount
240. The ______________ is a common term for the market consensus value of the required return on a stock.
View answer
Correct answer: (C)
Market capitalization rate
A. Rs. 18,000
B. Rs. 45,000
C. Rs. (45,000)
D. Rs. (18000)
View answer
Correct answer: (D)
Rs. (18000)
242. ______________ means expanding the number of investments which cover different kinds of stocks.
A. Diversification
B. Standard deviation
C. Variance
D. Covariance
View answer
Correct answer: (A)
Diversification
243. What is the value of a $1,000 Face Value Bond that has twenty years remaining to Maturity, 10 % Coupon (paid
annually), and is priced to yield 6%?
A. $ 980
B. $ 1,000
C. 1,263
D. None
View answer
Correct answer: (D)
None
244. One of the problems with attempting to forecast stock market values is that
View answer
Correct answer: (C)
The level of uncertainty surrounding the forecast will always be quite high
View answer
Correct answer: (A)
Pays interest on a regular basis (typically every six months)
246. When the market's Required Rate of Return for a particular Bond is much less than its Coupon Rate, the Bond is selling
at
A. Premium
B. Discount
C. Par
D. Face
View answer
Correct answer: (A)
Premium
247. ______________ is responsible for financial inventory, management, financial planning etc.
A. Shareholders
B. Treasurer
C. Controller
D. Board of Directors
View answer
Correct answer: (B)
Treasurer
A. Liquidity ratios
B. Debt ratios
C. Coverage ratios
D. Profitability ratios
View answer
Correct answer: (A)
Liquidity ratios
A. Bonds
B. Option
C. Shares
D. Stock
View answer
Correct answer: (B)
Option
250. ABC’s and XYZ’s debt-to-total assets ratio is 0.4. What is its debt-to-equity ratio?
A. 0 .2
B. 0 .77
C. 0.667
D. 0.333
View answer
Correct answer: (C)
0.667
251. The Future Value (FV) of $1000 in 5 years at 5% interest rate will be:
A. $1,000.00
B. $1,276.28
C. $999.99
D. $1,500.52
View answer
Correct answer: (B)
$1,276.28
A. Limited liability
B. Capital shortage
C. Single taxation
D. All of the above
View answer
Correct answer: (A)
Limited liability
253. You wish to earn a return of 13% on each of two stocks, X and Y. Stock X is expected to pay a dividend of Rs. 3 in the
upcoming year while Stock Y is expected to pay a dividend of Rs. 4 in the upcoming year. The expected growth rate of
dividends for both stocks is 7%. The intrinsic value of stock X:
View answer
Correct answer: (C)
Will be less than the intrinsic value of stock Y
View answer
Correct answer: (A)
Use of more debt capital to increase profit
255. A capital budgeting technique that is NOT considered as discounted cash flow method is:
A. Payback period
B. Internal rate of return
C. Net present value
D. Profitability index
View answer
Correct answer: (A)
Payback period
View answer
Correct answer: (D)
Stated Interest Payment on a Bond
257. You wish to earn a return of 10% on each of two stocks, C and D. Each of the stocks is expected to pay a dividend of
Rs2 in the upcoming year. The expected growth rate of dividends is 9% for stock C and nine percent for stock D. The
intrinsic value of stock C ______________.
A. Bonds
B. Option
C. Shares
D. a and c
View answer
Correct answer: (D)
a and c
259. The ______________ is defined as the present value of all cash proceeds to the investor in the stock.
View answer
Correct answer: (B)
Intrinsic value
A. Contribution Margin
B. Unit sales
C. Cost-Volume-Profit analysis
D. None of the above
View answer
Correct answer: (C)
Cost-Volume-Profit analysis
261. ______________ are analysts who use information concerning current and prospective profitability of firms to assess
the firm's fair market value.
A. Credit analysts
B. Fundamental analysts
C. Systems analysts
D. Technical analysts
View answer
Correct answer: (B)
Fundamental analysts
262. Those liabilities which arise only on the happening of some event are called
A. Current liabilities
B. Outstanding liabilities
C. Deferred liabilities
D. Contingent liabilities
View answer
Correct answer: (D)
Contingent liabilities
263. There are ______________ types of financial statements analysis
A. 1
B. 2
C. 3
D. 4
View answer
Correct answer: (C)
3
264. ______________ tells us after how much time period the amount of money will become double.
View answer
Correct answer: (C)
Rule of 72
View answer
Correct answer: (C)
Trend analysis
266. Interest paid (earned) on only the original principal borrowed (lent) is often referred to as ______________.
A. Compound interest
B. Simple interest
C. Present value
D. Future value
View answer
Correct answer: (B)
Simple interest
267. If gross profit is Rs 5,000 and the net profit is 25% of the gross profit the expenses must be
A. Rs 3,750
B. Rs 1,250
C. Rs 4,150
D. Rs 6,250
View answer
Correct answer: (A)
Rs 3,750
268. What are the earnings per share (EPS) for a company that earned Rs.100, 000 last year in after-tax profits, has 200,000
common shares outstanding and Rs.1.2 million in retained earning at the year end?
A. Rs.1.00
B. Rs. 6.00
C. Rs. 0.50
D. Rs. 6.50
View answer
Correct answer: (C)
Rs. 0.50
View answer
Correct answer: (D)
All of the given options
A. One of the ways in which firms can mitigate or reduce agency problems between bondholders and stockholders is
by increasing the amount of debt in the capital structure.
B. Managerial compensation can be structured to reduce agency problems between stockholders and managers.
C. All of above statements are incorrect
D. All of the statements above are correct
View answer
Correct answer: (B)
Managerial compensation can be structured to reduce agency problems between stockholders and managers.
A. Annuities
B. Perpetuity
C. Consol
D. Securities
View answer
Correct answer: (A)
Annuities
A. Inventory cost
B. Ordering cost
C. Purchase cost
D. EOQ
View answer
Correct answer: (C)
Purchase cost
273. Assume that the interest rate is greater than zero. Which of the following cash-inflow streams totalling Rs.1, 500 would
you prefer? The cash flows are listed in order for Year 1, Year 2, and Year 3 respectively.
274. The higher the Future Value (FV) of the payment, the higher will be the:
A. Discount rate
B. Present value
C. Liquidity
D. Cost of borrowing
View answer
Correct answer: (B)
Present value
275. In the Balance Sheet of a firm, the Total Debt-to-Equity Ratio is 2:1.The amount of Long Term and Short Term Sources
are Rs.12 billion. What is the amount of owner’s Net Worth of the firm?
A. Rs.18 billion
B. Rs.6 billion
C. Rs.4 billion
D. Rs.2 billion
View answer
Correct answer: (B)
Rs.6 billion
276. Which group of ratios shows the extent to which the firm is financed with debt?
A. Liquidity ratios
B. Debt ratios
C. Coverage ratios
D. Profitability ratios
View answer
Correct answer: (B)
Debt ratios
View answer
Correct answer: (D)
Both b & c
278. If you have to judge a project from its NPV, you will select the one with the ______________
A. Lowest NPV
B. Highest NPV
C. NPV cannot judge the project
D. Information is not enough
View answer
Correct answer: (B)
Highest NPV
279. In the Balance Sheet amount of total Assets is Rs.10 million, Current Liabilities Rs.5 million and Owner Equity are
Rs.2 million. What is the Long term Debt-to-Equity Ratio?
A. 1:1
B. 1.5 : 1
C. 2:1
D. None of the above
View answer
Correct answer: (B)
1.5 : 1
A. Current asset
B. Fix asset
C. Equity
D. Mix of finance
View answer
Correct answer: (D)
Mix of finance
A. Yield
B. Liquidity
C. Maturity
D. Safety
View answer
Correct answer: (C)
Maturity
282. Ratio of present value of project’s future net cash flows to projects initial cash flow is
A. Profitability index
B. Internal rate of return
C. Net present value
D. Average rate of return
View answer
Correct answer: (A)
Profitability index
283. The ______________ is responsible for accounting, maintaining and auditing of the accounts.
A. Shareholders
B. Treasurer
C. Controller
D. Board of Directors
View answer
Correct answer: (C)
Controller
View answer
Correct answer: (C)
Interest coverage
A. Ratio analysis
B. Vertical analysis
C. Horizontal analysis
D. None of the above
View answer
Correct answer: (C)
Horizontal analysis
286. Which of the following best represents the total inventory costs, T, where S is total usage of the inventory item for the
period, Q is the q
A. T = C (Q/2) + O (S/Q)
B. T = SQRT [2 (O) (S) / C]
C. T = SQRT [2 (C) (S) / O
D. T = C (S/Q) + O (Q/2)
View answer
Correct answer: (A)
T = C (Q/2) + O (S/Q)
A. Intrinsic value
B. Market price
C. Fair price
D. Theoretical price
View answer
Correct answer: (B)
Market price
288. ______________ is concerned with the acquisition, financing, and management of assets with some overall goal in
mind.
A. Financial management
B. Profit maximization
C. Agency theory
D. Social responsibility
View answer
Correct answer: (A)
Financial management
289. Oliver Incorporated has a current ratio equal to 1.6 and a quick ratio equal to 1.2. The company has $2 million in sales
and its current liabilities are $1 million. What is the company’s inventory turnover ratio?
A. 5.0
B. 5.2
C. 5.5
D. 6.0
View answer
Correct answer: (A)
5.0
A. Money market
B. Capital market
C. Commercial bank
D. Equity market
View answer
Correct answer: (B)
Capital market
A. Convertible bonds
B. Convertible debenture
C. Common shares
D. Preferred shares
View answer
Correct answer: (C)
Common shares
View answer
Correct answer: (B)
Investment, Financial management and Money & capital markets
View answer
Correct answer: (C)
The bondholder can convert into shares
294. ______________ means value at some future time of a present amount of money evaluated at a given interest rate.
A. Compounding
B. Discounting
C. Nominal rate
D. Continuous rate
View answer
Correct answer: (A)
Compounding
295. When the market's Required Rate of Return for a particular Bond is equal to its Coupon Rate, the Bond is selling at
A. Premium
B. Discount
C. Par
D. None
View answer
Correct answer: (C)
Par
296. A Bond has a $1,000 Face Value, a Market Price of $1,115, and pays interest payments of $ 90 every year. What is the
coupon rate?
A. 4.50 %
B. 6.75 %
C. 7.39 %
D. 9.00 %
View answer
Correct answer: (D)
9.00 %
297. A bond with a $1,000 face value and an 8 percent annual coupon pays interest semi-annually. The bond will mature in
15 years. The nominal yield to maturity (i) is 11 percent. What is the price of the bond today?
A. $ 784.27
B. $ 781.99
C. $ 1,259.38
D. $ 739.19
View answer
Correct answer: (B)
$ 781.99
View answer
Correct answer: (A)
Whose intrinsic value exceeds market price
299. ______________ is the set of possible values that a random variable can assume and their association probabilities of
occurrence.
View answer
Correct answer: (B)
Probability Distribution
A. Balance sheet
B. Notes of the account
C. Comparative figure of previous period
D. None of the given option
View answer
Correct answer: (D)
None of the given option
301. If you want to deposit money into bank, what will be yours choice?
A. Compounding annually
B. Compounding Semi-annually
C. Compounding monthly
D. Compounding daily
View answer
Correct answer: (D)
Compounding daily
302. Interest paid (earned) on both the original principal borrowed (lent) and previous interest allowed (earned) is often
referred to as ______________.
A. Compound interest
B. Double interest
C. Simple interest
D. Present value
View answer
Correct answer: (A)
Compound interest
303. Which of the following is the activity which finance people are involved
A. Investing decisions
B. Marketing decisions
C. Promotion decisions
D. Non of Above
View answer
Correct answer: (A)
Investing decisions
304. The Bailey Brothers want to issue 20-year, zero coupon bonds that yield 9 percent. What price should it charge for these
bonds if the face value is $1,000?
A. $ 157.25
B. $ 163.70
C. $ 178.43
D. $ 194.49
View answer
Correct answer: (C)
$ 178.43
305. When bonds are issued, under which of the following category the value of the bond appears?
A. Equity
B. Fixed assets
C. Short term loan
D. Long term loan
View answer
Correct answer: (D)
Long term loan
306. What type of long-term financing most likely has the following features: (1) it has an infinite and finite life (2) it pays
dividends, and (3) its cash flows are expected to be a constant annuity stream.
A. Long-term debt
B. Preferred stock
C. Common stock
D. None of the given option
View answer
Correct answer: (B)
Preferred stock
A. Present payment
B. Future payment
C. Annuity payment
D. Discount payment
View answer
Correct answer: (B)
Future payment
308. ______________ Ratios are used to measure a firm’s ability to meet short-term obligations.mpor
View answer
Correct answer: (C)
Liquidity ratios
A. Activity ratios
B. Asset management ratios
C. All of the above
D. None of the above
View answer
Correct answer: (C)
All of the above
310. Dividend is approved by the shareholder in the ______________ at the recommendation of the directors.
View answer
Correct answer: (A)
Annual general meeting
311. If bank giving 12% interest rate per year, then per month it will be
A. 1%
B. 12%
C. 5%
D. 6%
View answer
Correct answer: (A)
1%
A. On running business
B. When company closedown
C. Before establishment of business
D. When asset sold individually
View answer
Correct answer: (A)
On running business
View answer
Correct answer: (B)
The Current Required Market Rate
314. Muhammad Ali just received an interest payment that is equal to 7 percent of his Rs. 20,000 in Bond investment. This 7
percent is best described as a
A. Real Return
B. Deflated Return
C. Coupon Return
D. None
View answer
Correct answer: (C)
Coupon Return
315. A decrease in the firm's receivable turnover ratio means that ______________.
View answer
Correct answer: (B)
It is collecting credit sales more slowly than before
A. Current Asset
B. Current Liabilities
C. Long Term Asset
D. Long term liabilities
View answer
Correct answer: (A)
Current Asset
View answer
Correct answer: (B)
Annual interest divided by the face value
View answer
Correct answer: (D)
Return on Assets
A. Super ratios
B. Acid-test ratios
C. Cash ratios
D. None of the above
View answer
Correct answer: (B)
Acid-test ratios
A. Debenture
B. Euro bond
C. Mortgage bond
D. Convertible bond
View answer
Correct answer: (C)
Mortgage bond
View answer
Correct answer: (B)
Is equal to the present value of the project benefits
322. Profit maximization is a
View answer
Correct answer: (A)
Short term concept
323. Which of the following is the variability of return on stocks or portfolios associated with changes in return on the
market as a whole?
A. Systematic risk
B. Standard deviation
C. Unsystematic risk
D. Coefficient of variation
View answer
Correct answer: (A)
Systematic risk
324. When the bond approaches its maturity, the market value of the bond approaches to which of the following?
A. Intrinsic value
B. Book value
C. Par value
D. Historic cost
View answer
Correct answer: (A)
Intrinsic value
View answer
Correct answer: (B)
Ordinary annuity + Lumpsum amount
A. Individuals
B. Government
C. Public limited companies
D. All of before
View answer
Correct answer: (C)
Public limited companies
327. A Bond that pays no interest payments and sells at a deep discount is called
A. Bond
B. Zero Coupon
C. Convertible
D. Tax-free
View answer
Correct answer: (B)
Zero Coupon
View answer
Correct answer: (B)
Liabilities + Assets = Capital
329. Given the following, what is the amount of Capital? Assets: Premises £20,000; Stock £8,500; Cash £100. Liabilities:
Creditors £3,000; Loan from A Adams £4,000
A. £21,100
B. £21,400
C. £21,600
D. £32,400
View answer
Correct answer: (C)
£21,600
A. do this by stocktaking
B. deduct cost of goods sold from sales
C. deduct opening stock from cost of goods sold
D. look in the stock account
View answer
Correct answer: (A)
do this by stocktaking
331. Given figures showing: Sales £8,200; Opening stock £1,300; Closing stock £900; Purchases £6,400; Carriage inwards
£200, the cost of goods sold figure is:
A. Another figure
B. £6,200
C. £6,800
D. £7,000
View answer
Correct answer: (D)
£7,000
332. When Lee makes out a cheque for £50 and sends it to Young, then Lee is known as:
A. The payee
B. The banker
C. The drawer
D. The creditor
View answer
Correct answer: (C)
The drawer
View answer
Correct answer: (A)
Making the second entry of a double entry transaction
334. Given a purchases invoice showing 5 items of £80 each, less trade discount of 25 per cent and cash discount of 5 per
cent, if paid within the credit period, your cheque would be made out for:
A. £260
B. £280
C. £285
D. None of these
View answer
Correct answer: (C)
£285
335. We originally sold 25 items at £12 each, less 331/3 per cent trade discount. Our customer now returns 4 of them to us.
What is the amount of credit note to be issued?
A. £36
B. £30
C. £32
D. £48
View answer
Correct answer: (C)
£32
336. At the balance sheet date the balance on the Accumulated Provision for Depreciation Account is:
View answer
Correct answer: (D)
Simply deducted from the asset in the Balance Sheet
View answer
Correct answer: (C)
We owe that rent at that date
View answer
Correct answer: (B)
(i), (iii) and (iv)
View answer
Correct answer: (A)
(i) and (iii)
View answer
Correct answer: (D)
Find the error(s) before publishing the final accounts
341. If opening stock is £3,000, closing stock £5,000, sales £40,000 and margin 20 per cent, then stock turn is:
A. 7 ½ times
B. 8 times
C. 5 times
D. 6 times
View answer
Correct answer: (B)
8 times
342. Which of the following should be charged in the Profit and Loss Account?
View answer
Correct answer: (C)
Office rent
343. You are to buy an existing business which has assets valued at buildings £50,000, Motor vehicles £15,000, Fixtures
£5,000 and Stock £40,000. You are to pay £140,000 for the business. This means that:
View answer
Correct answer: (D)
You are paying £30,000 for Goodwill
344. A company wishes to pay out all available profits as dividends. Net profit is £26,600. There are 20,000 8% Preference
shares of £1 each, and 50,000 Ordinary shares of £1 each. £5,000 is to be transferred to General Reserve. What Ordinary
dividends are to be paid, in percentage terms?
A. 40 per cent
B. 60 per cent
C. 10 per cent
D. 20 per cent
View answer
Correct answer: (A)
40 per cent
A. Buildings
B. Debtors
C. Loan from K Harris
D. Cash balance
View answer
Correct answer: (C)
Loan from K Harris
View answer
Correct answer: (C)
Goods bought for resale
View answer
Correct answer: (B)
It is a list of balances on the books
348. The descending order in which current assets should be shown in the balance sheet is:
View answer
Correct answer: (D)
Stock, Debtors, Bank, Cash
View answer
Correct answer: (D)
A list of credit sales
View answer
Correct answer: (A)
There was £100 cash in hand
View answer
Correct answer: (C)
The Sales Journal
A. Sales Account
B. Returns Outwards Journal
C. Returns Inwards Journal
D. Returns Inwards Account
View answer
Correct answer: (C)
Returns Inwards Journal
353. If an accumulated provision for depreciation account is in use then the entries for the year's depreciation would be:
View answer
Correct answer: (C)
Credit Provision for Depreciation Account, debit Profit and Loss Account
View answer
Correct answer: (A)
Debit Drawings Account: Credit Purchases Account
355. A cheque paid by you, but not yet passed through the banking system, is:
A. A credit transfer
B. A dishonored cheque
C. An un-presented cheque
D. A standing order
View answer
Correct answer: (C)
An un-presented cheque
356. Given desired cash float of £200, if £146 is spent in the period, how much will be reimbursed at the end of the period?
A. £53
B. £146
C. £254
D. £200
View answer
Correct answer: (B)
£146
View answer
Correct answer: (D)
Cheque £95 from C Smith entered in Smith's account as £59
View answer
Correct answer: (C)
(iii) and (iv)
View answer
Correct answer: (B)
In which the opening and closing cash balances are shown
View answer
Correct answer: (A)
Must be shared equally
361. In a limited company which of the following are shown in the Appropriation Account?
View answer
Correct answer: (C)
(ii) and (iii)
A. Motor Vehicles
B. Machinery
C. Creditors for goods
D. Cash at Bank
View answer
Correct answer: (C)
Creditors for goods
View answer
Correct answer: (C)
Office fixtures sold
364. What would have been the balance on the account of C De Freitas in MC17 on 19 May 20X5?
View answer
Correct answer: (D)
A debit balance of £265
View answer
Correct answer: (D)
Are of long life and are not bought specifically for resale
1. (i) Buildings
2. (ii) Wages
3. (iii) Debtors
4. (iv) Creditors
View answer
Correct answer: (D)
(iii) and (iv) only
View answer
Correct answer: (A)
Deducted by us when we pay our accounts
A. Discounts received
B. Purchases invoices
C. Payments to suppliers
D. Trade discounts
View answer
Correct answer: (B)
Purchases invoices
369. A firm bought a machine for £3,200. It is to be depreciated at a rate of 25 per cent using the Reducing Balance Method.
What would be the remaining book value after 2 years?
A. £2,400
B. £1,800
C. £1,600
D. Some other figure
View answer
Correct answer: (B)
£1,800
View answer
Correct answer: (B)
To provide for possible bad debts
371. In the business of C Songster, who owns a clothing store, which of the following is Capital Expenditure?
View answer
Correct answer: (B)
(i) and (iii)
View answer
Correct answer: (B)
(ii) and (iv)
View answer
Correct answer: (A)
(iii) and (iv)
374. Given opening debtors of £11,500, Sales £48,000 and receipts from debtors £45,000, the closing debtors should total:
A. £14,500
B. £83,500
C. £18,500
D. £8,500
View answer
Correct answer: (A)
£14,500
375. If creditors at 1 January 20X3 were £2,500, creditors at 31 December 20X3 £4,200 and payments to creditors £32,000,
then purchases for 20X3 are:
A. £31,600
B. £38,700
C. £33,700
D. £30,300
View answer
Correct answer: (C)
£33,700
View answer
Correct answer: (D)
To charge against each department its controllable costs
View answer
Correct answer: (A)
Debited to old partners in old profit-sharing ratios
View answer
Correct answer: (D)
None of the above
View answer
Correct answer: (B)
Profit increases capital
View answer
Correct answer: (B)
Excess of sales over cost of goods sold
1. The credit entry for net profit is on the credit side of:
View answer
Correct answer: (C)
The capital account
2. When banking money in to your current account you should always use:
A. A general ledger
B. A cheque book
C. A cash book
D. A paying-in slip
View answer
Correct answer: (D)
A paying-in slip
View answer
Correct answer: (C)
The credit side of the Sales Account in the General Ledger
4. Depreciation is:
View answer
Correct answer: (C)
The part of the cost of the fixed asset consumed during its period of use by the firm
5. When the final accounts are prepared, the Bad Debts Account is closed by a transfer to the:
A. Trading Account
B. Provision for Doubtful Debts Account
C. Balance Sheet
D. Profit and Loss Account
View answer
Correct answer: (D)
Profit and Loss Account
View answer
Correct answer: (B)
Money spent on buying fixed assets or adding value to them
View answer
Correct answer: (D)
Drawn up by us to verify our cash book balance with the bank statement balance
8. When a petty cash book is kept there will be:
A. No entries made at all in the general ledger for items paid by petty cash
B. The same number of entries in the general ledger
C. Fewer entries made in the general ledger
D. More entries made in the general ledger
View answer
Correct answer: (C)
Fewer entries made in the general ledger
9. If a trial balance totals do not agree, the difference must be entered in:
View answer
Correct answer: (D)
A Suspense Account
10. Given cost of goods sold £16,000 and margin of 20 per cent, then sales figure is:
A. £21,000
B. £20,000
C. £13,600
D. £20,160
View answer
Correct answer: (B)
£20,000
391. Given opening capital of £16,500, closing capital as £11,350 and drawings were £3,300, then:
View answer
Correct answer: (D)
Loss for the year was £1,850
View answer
Correct answer: (D)
The production cost of goods completed in the period
View answer
Correct answer: (B)
It helps prevent injustice to some partners
View answer
Correct answer: (B)
Yes, always
View answer
Correct answer: (B)
It is an expense connected with buying goods
A. Sales ledger
B. Nominal ledger
C. Purchases ledger
D. General ledger
View answer
Correct answer: (C)
Purchases ledger
397. £50 cash taken from the cash till and banked is entered:
View answer
Correct answer: (C)
Debit bank column £50: Credit cash column £50
398. The total of the 'Discounts Allowed' column in the Cash Book is posted to:
View answer
Correct answer: (B)
The debit of the Discounts Allowed account
View answer
Correct answer: (C)
Debit side of the Purchases Account
400. A firm bought a machine for £16,000. It is expected to be used for 5 years then sold for £1,000. What is the annual
amount of depreciation if the straight line method is used?
A. £3,750
B. £3,100
C. £3,200
D. £3,000
View answer
Correct answer: (D)
£3,000
View answer
Correct answer: (D)
The excess of the current assets over the current liabilities
402. If £500 was shown added to Purchases instead of being added to a fixed asset:
View answer
Correct answer: (B)
Both gross and net profits would be understated
View answer
Correct answer: (C)
Not part of the double entry system
404. Errors are corrected via the Journal because:
View answer
Correct answer: (B)
It provides a good record explaining the double entry records
405. In a Sales Ledger Control Account the Bad Debts written off should be shown in the account:
A. As a credit
B. As a debit
C. As a balance carried down
D. Both as a debit and as a credit
View answer
Correct answer: (A)
As a credit
i. Direct labour
ii. Factory overhead expenses
iii. Raw materials consumed
iv. Direct expenses
View answer
Correct answer: (A)
(i), (iii) and (iv)
407. If it is required to maintain fixed capitals then the partners' shares of profits must be:
View answer
Correct answer: (D)
Credited to partners' current accounts
View answer
Correct answer: (A)
Profit and loss account
409. The costs of putting goods into a saleable condition should be charged to:
A. Trading account
B. Profit and loss account
C. Balance sheet
D. None of these
View answer
Correct answer: (A)
Trading account
410. If you want to make sure that your money will be safe if Cheques sent are lost in the post, you should:
View answer
Correct answer: (B)
Cross your Cheques 'Account Payee only, Not Negotiable'
411. A credit balance of £200 on the cash columns of the cash book would mean:
View answer
Correct answer: (D)
The bookkeeper has made a mistake
View answer
Correct answer: (D)
If payment is made within a previously agreed period
View answer
Correct answer: (A)
Sales Day Book
415. In the trial balance the balance on the Provision for Depreciation Account is:
View answer
Correct answer: (C)
Shown as a credit item
View answer
Correct answer: (A)
We have a stock of packing materials unused
A. A statement of assets
B. A listing of balances
C. An account proving the books balance
D. A record of closing entries
View answer
Correct answer: (B)
A listing of balances
A. Classifyi
B. Recordi
C. Summarisi
D. None of the
View answer
Correct answer: (B)
Recordi
A. Nominal account
B. Personal account
C. Real account
D. Tangible account
View answer
Correct answer: (C)
Real account
View answer
Correct answer: (B)
amount payable to the bank
A. credit note
B. bills payable book
C. debit note
D. purchases return book
View answer
Correct answer: (A)
credit note
A. working capita
B. current asset
C. fixed asset
D. intangible assets
View answer
Correct answer: (C)
fixed asset
A. Purchase of land
B. Salaries
C. Lease
D. Purchase of buildings
View answer
Correct answer: (B)
Salaries
A. the .drawee
B. endorsees personal account
C. bills receivable account
D. bills for collection account
View answer
Correct answer: (C)
bills receivable account
A. Debi
B. Credi
C. Debit and Credi
D. none of thes
View answer
Correct answer: (A)
Debi
A. Ledge
B. Journa
C. Subsidiary book
D. Trial Balance
View answer
Correct answer: (D)
Trial Balance
View answer
Correct answer: (C)
Gross working capital
A. subsidiar
B. a. principal book
C. a. ledger
D. a. memorandum book
View answer
Correct answer: (A)
subsidiar
A. ledger account
B. part of the cash book
C. separate statement
D. a sub division of the journal
View answer
Correct answer: (C)
separate statement
430. The distinction between capital and revenue is necessary for the preparation of ______________.
View answer
Correct answer: (B)
receipts and payment account
431. If payment is made on the average due date it results in ______________
View answer
Correct answer: (C)
no loss of interest to either of them
A. Vidhya account
B. Cash account
C. Sale of goods accoun
D. Purchases account
View answer
Correct answer: (B)
Cash account
A. general journal
B. cash book
C. purchases book
D. sales book
View answer
Correct answer: (B)
cash book
434. Payment of compensation to a worker who has been discharged from service is a ______________.
A. capital expenditure
B. revenue expenditure
C. deferred revenue expenditure
D. partly capital expenditure
View answer
Correct answer: (B)
revenue expenditure
435. The following items are shown in profit and loss appropriation account ______________
A. Dividend declared
B. Discount on issue of shares
C. Non-operating expenses
D. Current assets
View answer
Correct answer: (A)
Dividend declared
A. Wages
B. Machinery
C. Factory expenses
D. Offices expenses
View answer
Correct answer: (A)
Wages
View answer
Correct answer: (C)
both revenue and capital nature
438. In a receipts and payments account the payments are recorded on the ______________ side.
A. credit
B. debit
C. Upper
D. Lower
View answer
Correct answer: (A)
credit
439. Any revenue expense for when a separate fund is available will be ______________.
View answer
Correct answer: (A)
debited to the separate fund
A. revenue receipt
B. capital receipt
C. capital expenditure
D. revenue expenditur
View answer
Correct answer: (A)
revenue receipt
441. Errors of carry forward from one year to another year affect ______________
A. personal account
B. real account
C. nominal account
D. both personal and real account
View answer
Correct answer: (A)
personal account
442. Average due date can be called as ______________
View answer
Correct answer: (A)
mean due date
443. The person upon whom the bill of exchange is drawn is called ______________
A. Drawer
B. Drawer
C. Payee
D. Maker
View answer
Correct answer: (A)
Drawer
444. When furniture is sold for cash, the entry should be made in ______________.
A. sales book
B. cash book
C. Journal.
D. petty cash book.
View answer
Correct answer: (B)
cash book
445. A Cheque received and paid into the bank on the same day id recorded in the ______________.
View answer
Correct answer: (B)
a. bank column of the cash book
A. revenue expenditure
B. deferred revenue expenditure
C. capital expenditure
D. deferred capital expenditure
View answer
Correct answer: (D)
deferred capital expenditure
A. cash sales
B. credit sales of assets
C. credit sales of goods
D. credit purchase
View answer
Correct answer: (C)
credit sales of goods
View answer
Correct answer: (A)
the expenses relating to postage and conveyance
A. capital expenditure
B. reserve expenditure
C. deferred reserve expenditur
D. capital receipts
View answer
Correct answer: (A)
capital expenditure
450. A gross profit is transferred to the ______________side of the profit and loss account.
A. Debit
B. Credit
C. Current
D. Asset
View answer
Correct answer: (B)
Credit
451. Subscription received in advance by a club is shown on the ______________ side of the balance sheet.
A. Liabilities
B. Assets
C. credit
D. debit
View answer
Correct answer: (A)
Liabilities
452. Interest received on special fund investments will be added to ______________ fund in the balance sheet.
A. investment fund
B. bank fund
C. General
D. specia
View answer
Correct answer: (D)
specia
453. The information for the preparation of receipt and payments account is taken from ______________.
A. cash book
B. income and expenditure
C. cash book and balance sheet
D. revenue account
View answer
Correct answer: (A)
cash book
454. Any profit on the sale of furniture of a cricket club will be taken to ______________.
View answer
Correct answer: (A)
income and expenditure account
455. The main purpose of this ______________ accounting is to ascertain profit or loss during a specific period, to show
financial position of the business.
A. financial accounting
B. cost accounting
C. management account
D. human resource accounting
View answer
Correct answer: (A)
financial accounting
A. Cash discount
B. Trade discount
C. Quantity discount
D. Price discount
View answer
Correct answer: (A)
Cash discount
View answer
Correct answer: (C)
classifying and recording business transactions
458. The system of recording transactions based on dual aspect concept is called ______________
View answer
Correct answer: (B)
double entry system
View answer
Correct answer: (C)
all cash receipts and payments
A. bank
B. creditors of a business
C. customer of a bank
D. Suppliers
View answer
Correct answer: (C)
customer of a bank
View answer
Correct answer: (A)
single sided errors
A. subsidiary book
B. principal book
C. ledger
D. memorandum book
View answer
Correct answer: (B)
principal book
View answer
Correct answer: (A)
gross profit or loss
464. A bill of exchange payable after a certain period is known as ______________ bill.
A. Time
B. accommodation
C. revenue
D. Dishonored
View answer
Correct answer: (A)
Time
A. Outwar
B. inwar
C. Foreig
D. Ne
View answer
Correct answer: (C)
Foreig
View answer
Correct answer: (C)
liabilities side of the balance sheet.
A. Buildi
B. Furnitu
C. Sto
D. Investme
View answer
Correct answer: (C)
Furnitu
A. sundry debtors
B. bill receivable
C. promissory note
D. all of the above
View answer
Correct answer: (D)
all of the above
A. bank account
B. bill receivable account
C. acceptors account
D. cash account
View answer
Correct answer: (A)
bank account
A. True
B. False
C. Partly true
D. Partly false
View answer
Correct answer: (B)
False
A. Endorse
B. Endorse
C. Accepto
D. Paye
View answer
Correct answer: (A)
Endorse
View answer
Correct answer: (C)
net cash on hand
A. Wages account
B. Machinery account
C. Profit and loss account
D. Deferred wages account
View answer
Correct answer: (B)
Machinery account
474. A Cheque received and deposited in the bank on the same day is recorded in the ______________.
View answer
Correct answer: (B)
bank column of the cash book
A. capital expenditure
B. revenue expenditure
C. deferred revenue expenditure
D. partly capital expenditur
View answer
Correct answer: (C)
deferred revenue expenditure
View answer
Correct answer: (A)
principal book of accounts
View answer
Correct answer: (C)
Repairs account
A. debit balance
B. credit balance
C. no balance
D. normal balance
View answer
Correct answer: (A)
debit balance
479. A debit balance in the income and expenditure account denotes excess of ______________over______________.
A. income, expenditure
B. assets, liabilities
C. liabilities, assets
D. expenditure, income
View answer
Correct answer: (D)
expenditure, income
480. Which of the following items should not be entered in receipts and payments account of a club?
View answer
Correct answer: (B)
Loss on sale of old furniture
A. cash in hand
B. surplus or deficiency
C. capital account
D. a. revenue account
View answer
Correct answer: (B)
surplus or deficiency
A. Voucher
B. Bill
C. Carbon copy
D. Expense bill
View answer
Correct answer: (A)
Voucher
View answer
Correct answer: (A)
bills received from customers
View answer
Correct answer: (A)
recording of financial data relating to business operations
A. sales book
B. journal proper
C. purchases book
D. sales returns book
View answer
Correct answer: (B)
journal proper
View answer
Correct answer: (C)
the customers account in the banks ledger
A. non-recurring
B. Recurring
C. Accumulating
D. non-accumulating
View answer
Correct answer: (B)
Recurring
A. Memorandum account
B. Suspense account
C. Rectification account
D. Adjustment account
View answer
Correct answer: (B)
Suspense account
A. statement
B. Account
C. Ledger
D. Book
View answer
Correct answer: (A)
statement
A. Drawee.
B. Drawer.
C. Payer.
D. Payee.
View answer
Correct answer: (B)
Drawer.
A. Nominal account
B. Real account
C. Personal account
D. none of these above
View answer
Correct answer: (C)
Personal account
View answer
Correct answer: (C)
petty cash book
A. capital expenditure
B. deferred revenue expenditur
C. other expenditure
D. revenue expendtur
View answer
Correct answer: (C)
other expenditure
A. Creditors account
B. Cash account
C. Bills payable account
D. Bills receivable account
View answer
Correct answer: (C)
Bills payable account
495. Capital=
A. Asset - Liabilitie
B. Asse
C. Liabilitie
D. All the abov
View answer
Correct answer: (A)
Asset - Liabilitie
496. Which one the following is an example of an intangible asset?
A. Preliminary expenses
B. Discount on issue of debentures
C. Investments
D. Copyrights
View answer
Correct answer: (D)
Copyrights
A. Capital account
B. Building account
C. Cash account
D. Investment account
View answer
Correct answer: (A)
Capital account
A. capital expenditure
B. revenue expenditure
C. deferred revenue expenditure
D. promotional expenditure
View answer
Correct answer: (A)
capital expenditure
499. The method of account current usually employed by the banker is known as ______________.
View answer
Correct answer: (A)
Daily balance method
A. Sales account
B. Goods account
C. Shiva account
D. Purchase account
View answer
Correct answer: (C)
Shiva account
A. Liability
B. Assets
C. revenue receipt
D. capital receipts
View answer
Correct answer: (D)
capital receipts
A. Change
B. application
C. Service
D. no flow
View answer
Correct answer: (C)
Service
A. Liability
B. Asset
C. Expenses
D. Incomes
View answer
Correct answer: (B)
Asset
504. Excess of income over expenditure in shown on the ______________ side of income and expenditure account.
A. Credit
B. Debit
C. Upper
D. Lower
View answer
Correct answer: (B)
Debit
A. balance sheet
B. receipts and payment account
C. income and expenditure account
D. revenue account
View answer
Correct answer: (A)
balance sheet
A. revenue receipt
B. capital receipt
C. capital expenditur
D. revenue expenditure
View answer
Correct answer: (B)
capital receipt
A. an income
B. an asset
C. a liability
D. an expense
View answer
Correct answer: (C)
a liability
A. Cash discount
B. Trade discount
C. Quantity discount
D. Price discount
View answer
Correct answer: (B)
Trade discount
View answer
Correct answer: (A)
record all business transactions
A. original entry
B. final entry
C. all cash entry
D. all credit entry
View answer
Correct answer: (B)
final entry
511. In triple column cash book, cash withdrawn from bank for office use will appear in ______________
View answer
Correct answer: (B)
both sides of the cash book
512. The appropriate book to record credit purchase of machinery is ______________.
A. purchases book
B. journal
C. cash book
D. petty cash book
View answer
Correct answer: (A)
purchases book
View answer
Correct answer: (C)
gain for the business
514. A bill drawn and accepted for providing funds to a friend in need is known as ______________
A. Cheque.
B. promissory note.
C. accommodation bill.
D. demand bill.
View answer
Correct answer: (C)
accommodation bill.
A. Bank account
B. Commission account
C. Furniture account
D. Interest received account
View answer
Correct answer: (B)
Commission account
A. Purchases account
B. Sales account
C. Loss of goods by fire account
D. Insurance account
View answer
Correct answer: (A)
Purchases account
A. errors of omission
B. errors of principle
C. errors of posting
D. error of commission
View answer
Correct answer: (C)
errors of posting
A. Creditors
B. Debtors
C. Agent
D. Brokers
View answer
Correct answer: (C)
Agent
519. The Letter "c" is shown in the Cash book which means ______________
A. consignment
B. Commitment
C. Contra Entry
D. Cash entry
View answer
Correct answer: (C)
Contra Entry
A. Ledger
B. Journal
C. Trial Balance
D. None of these
View answer
Correct answer: (B)
Journal
A. Drawee
B. Drawer
C. Acceptor
D. Payee
View answer
Correct answer: (D)
Payee
A. purchases book
B. journal
C. cash book
D. petty cash book
View answer
Correct answer: (B)
journal
View answer
Correct answer: (B)
Suspense account
A. capital receipt
B. revenue receipt
C. deferred capital receipt
D. deferred revenue receipt
View answer
Correct answer: (A)
capital receipt
View answer
Correct answer: (C)
locating clerical errors
A. Cost of advertisement
B. Purchase of a delivery van
C. Purchase of raw material
D. Purchase of machine oil
View answer
Correct answer: (B)
Purchase of a delivery van
A. Expenses account
B. Income account
C. Capital account
D. Asset account
View answer
Correct answer: (C)
Capital account
A. Personal account
B. Nominal account
C. Real account
D. Representative account
View answer
Correct answer: (B)
Nominal account
A. Ordinary
B. Special
C. Revenue
D. Capital
View answer
Correct answer: (D)
Capital
A. Real account
B. Nominal account
C. Personal account
D. Representative account
View answer
Correct answer: (B)
Nominal account
A. cash book
B. income and expenditure
C. balance sheet
D. trading account
View answer
Correct answer: (B)
income and expenditure
View answer
Correct answer: (D)
income and expenditure account
A. Journalizing
B. Utilizing
C. Posting
D. Balancing
View answer
Correct answer: (A)
Journalizing
534. Accounting principles are generally based on ______________
A. practicability
B. Subjectivity
C. convenience in recording
D. Applicability
View answer
Correct answer: (A)
practicability
A. sales book
B. cash book
C. journal proper
D. purchases book
View answer
Correct answer: (A)
sales book
View answer
Correct answer: (C)
credit balance as per pass book
A. an asset
B. a liability
C. an income
D. an expenditure
View answer
Correct answer: (A)
an asset
View answer
Correct answer: (B)
revenue Expenditure
A. capital expenses
B. indirect expenses
C. direct expenses
D. revenue expenses
View answer
Correct answer: (C)
direct expenses
540. A bill drawn and accepted for a genuine trade transaction is termed as a ______________ bill.
A. Trade
B. Time
C. Inland
D. Personal
View answer
Correct answer: (A)
Trade
A. Nominal Account
B. Personal Account
C. Real Account
D. None of the abov
View answer
Correct answer: (B)
Personal Account
View answer
Correct answer: (A)
goods returned to the suppliers
View answer
Correct answer: (C)
the trail balance to agree
544. Cancelling the original bill and drawing a fresh acceptance is known as ______________.
A. Debit
B. Credit
C. Debit and Credit
D. None of these
View answer
Correct answer: (B)
Credit
A. Payee
B. Drawee
C. Drawer
D. Acceptor
View answer
Correct answer: (C)
Drawer
A. an asset
B. a liability
C. an income
D. an expenditure
View answer
Correct answer: (A)
an asset
A. current period
B. future period
C. past period
D. both (1) and (2)
View answer
Correct answer: (A)
current period
A. Endorse
B. Endorse
C. Drawe
D. Drawe
View answer
Correct answer: (B)
Endorse
View answer
Correct answer: (C)
Purchases account and suppliers account
A. Rent outstanding
B. Prepaid expenses
C. Purchases returns
D. Excess of income over expenses by the firm
View answer
Correct answer: (B)
Prepaid expenses
A. Folio
B. Pages
C. serial number
D. part number
View answer
Correct answer: (A)
Folio
View answer
Correct answer: (C)
fixed and current assets
View answer
Correct answer: (A)
Income and expenditure account
A. cash book
B. income and expenditure account
C. balance sheet
D. trading account
View answer
Correct answer: (B)
income and expenditure account
556. The main aim of ______________ accounting is to ascertain cost relating to the various activities of the business and to
have cost control.
A. financial accounting
B. cost accounting
C. management account
D. human resource accounting
View answer
Correct answer: (B)
cost accounting
View answer
Correct answer: (A)
bills payable to creditors
558. The amount brought in by the proprietor in the business should be credited to:
A. cash account
B. capital account
C. drawing account
D. bank account
View answer
Correct answer: (B)
capital account
559. If a cheque sent for collection is dishonoured, the debit is given to ______________
A. suppliers account
B. bank account
C. customers account
D. cash account
View answer
Correct answer: (C)
customers account
560. State which of the following errors will not be revealed by the trial balance ______________
View answer
Correct answer: (A)
errors of complete omission
View answer
Correct answer: (C)
net cash on hand
A. an expense
B. a liability
C. an asset
D. an income
View answer
Correct answer: (B)
a liability
A. Nominal account
B. Personal account
C. Real account
D. Prepaid account
View answer
Correct answer: (B)
Personal account
View answer
Correct answer: (A)
customer of the bank
A. creditors
B. Sales
C. Purchases
D. Debtors
View answer
Correct answer: (D)
Debtors
566. The discount column of a triple column cash book records ______________.
A. trade discount
B. cash discount
C. quantity discount
D. seasonal discount
View answer
Correct answer: (B)
cash discount