S No QUESTION OPTION A OPTION B OPTION C OPTION D

Language of
The accounting is often called Day to day record Tallying of two
business Function of any
of work sides.
organisation
1
Correct
Hard work of
Survivor of any organisation depends Sales and Service. business Aggressive
employees
decision marketing.
2
A transaction means such an act which can
alter the ------------- ------------ of the
Management Accounting
accounting Decision making
control. information Financial condition
centre measurable in terms of money.

3
On the basis of payments transactions may be Cash and
Debit and credit Real or nominal Single or double
of two classes – credit
column.
4

Money taken by the proprietor from the

Reimbursemen
business for personal purpose known as – Salary Drawings
t Profit sharing

5
Return of damaged goods to dealer purchased
Increases Obsolete Damage
earlier ---------------- stock. Decreases
6
Accounts maintained with the help of ledger Single Entry Double Entry
Cash Method.
known as System. System Journal Proper

Revenue
Purchase of a building for office purpose is a ---
Cash expenditure Credit expenditure expenditure
---------- expenditure. Capital expenditure
8

Purchase of materials without paying any

amount at the time of purchase known as – Credit
Capital purchase General purchase
purchase Cash purchase

9
Ledger is a book of Prime entry Subsidiary entry Final entry
Auxiliary entry
10
Any cash transaction of a society first recorded Capital
Ledger Bank book
in account Cash book
11

The accounts of persons to whom goods are

sold on credit are kept in ----------- ---------- . General
Creditors’ Ledger Debtors’ Ledger
Ledger Normal Ledger

12

. Accounts of assets, expenses, revenues and Private

Sales Ledger Purchase Ledger
other similar transaction recorded in a Ledger. General Ledger
13
Day to day
Income and Expenditure Account is prepare Non profit making Profit making
household Only for educational
for organisation organisation.
accounting institute
14
Cash balance
Trading Account is prepared to determine – Bank balance Net Profit
Gross Profit
15
For Stock valuation mainly two methods
consider known as Capital and Cash and Accrual LIFO and
Normal and
Revenue method Method FIFO method
Absolute method.
16

The assets which do not have any physical Tangible assets

Fixed assets Current assets
existence known as – Intangible assets
17

Amount owing and payable in money or in

goods or services known as --------------. Drawing Liability Overdraft
Provision

18
 A business, unless otherwise known, will
Money
continue to operate for an indefinite long Cash system of Accrual system
measurement Going concern
period accounting of accounting.
concept concept.
of time known as
19
Pre received
Electricity bill for March 18 paid advance in Outstanding
Prepaid expenditure income Outstanding
January 18 is expenditure
income
20

Difference of balances between Bank book

Income and Revenue
maintained by the business house and Receipts and Bank Reconciliation
Expenditure Expenditure
Ledger maintained by the bank been Payment Account Statement
Account Statement
tallied through –
21
Receipts and
The main purpose of the --------- ----------- is to
Cash Book Trial Balance Payments
detect the mistakes in the accounts Balance Sheet
Account
22
Debit the receiver, Credit the giver – traditional
golden rules for Personal Account Nominal Account Cash Account.
Credit Account
23
The cost which changes directly with the Variable cost
Opportunity cost Standard cost Fixed cost
output is
24
Communication of
Identification of
Accounting is realted to accounting Measurement All the above
transaction
25 information
Decision-
Which is not the function of Accounting Measurement Forecasting Advertising
26 making
estimated
Historical cost of an Useful life of the All the factor stated
depreciation depends upon residual value
asset asset besides
of an asset
27

Life depends
Unlimited actual Life as per market
Depreciable asset have Limited actual life on
life value
maintainance
28
an asset whose
an asset whose an asset whose
working life can be an asset which is
Fixed method of depreciation is suitable for reasonable life can replace cost is
reasonably given on lease
not be estimated high
29 estimated
charged to
charged to charged to Trading charged to Balance
Stock used as stationery Profit & Loss
Manufacturing A/c A/c Sheet
30 A/c
A company deals in electronic goods
Fixed Assets
purchases two TV sets and install in its Drawing A/c Purchase A/c P & L A/c
A/c
showroom. The expenses will be recorded in.
31
Generally
Generally Accepted Generally Accepted Generally Accepted
Accepted
The word GAPP means Accounting Accounting Adjustment
Accounting
Procedures Principles Procedures
32 Problems
Which of the following is an external user of
The management The Government The owners The employee
33 accounting information
Decrease of
Increase of another Increase of specific
If an individual asset is increased, there will be Increase of drawings another asset
asset or increase of liability or decrease
a corresponding and liability or increase of
capital of capital
liability
34
Meterologocal Research
State who is not the user of Final Accounts Trade Associates General Public
35 Department Workers
Administrative Factory Administrative and
Manufacturing Account consider the General overhead
36 overhead overhead Factory overhead
Liabilities which depends on the happening of External
Liquid liabilities Internal liabilities Contingent liabilities
some uncertain events in future liabilities
37
         In the business field Accounting is Language of Proper recording of
  Face of business Art of business
38 considered as a business events
Cash and
Receipts and Payment accounts start with Cash balance Bank balance With no balance
Bank balance
39
Insurance claim received on a furniture   Capital Revenue
Capital receipt    Revenue receipt
40 destroyed by fire is a expenditure Expenditure
 Capital    Revenue
  Purchase of machinery is a Capital receipt    Revenue receipt
41 expenditure Expenditure
Its benefit is
   Its benefit extends The amount When no cash
An expenditure is treated as revenue exhausted within
to more than one spent is very outflow takes place
expenditure when one accounting
accounting period little. for the same
period
42
Capital   Revenue
Cost of computer purchased for office use is a Capital receipt    Revenue receipt
43 expenditure Expenditure
Gross Profit will Gross Profit will Net Profit will Net Profit will
Income received in Advance
44 increse decrease increse decrease
Amount spent for development of factory site Capital Revenue
Capital receipt Revenue receipt
45 is a expenditure Expenditure
a source of
under Sinking Method of depreciation is a process of a process of a source of
mainteinance
considered as allocation of cost allocation of capital mainteinance of cost
46 of capital
  Nominal Representative
Outstanding salary A/c is a    Personal account    Real account
47 account personal account
Discount received from Mr. Alex, a creditor, is Discount allowed Debtor Discount received
Creditor account
48 credited to account account account
  Nominal Both personal and
Bank account is   Personal account Real account
49 account real account
In the ledger an account shows credit balance To balance b /
To balance c / d By balance c / d on    By balance b / d
at the end of the year. This balance is shown d on the debit
on the debit side. the credit side. on the credit side.
50 as side.
Credit side of Credit side of Debit side of Debit side of
The total of Discount column on the debit side
Discount allowed Discount received Discount Discount received
of cash book is transferred to
51 A/c A/c allowed A/c A/c
Agreement of Trial balance is not a proof of
Exclusive Inclusive Exhaustive Conclusive
52 accuracy in maintaining accounts
Discount
  A triple column cash book has Cash column Bank column All of the above
53 column
Which accounts doesn’t carry a balance for the Nominal Representative
Personal account Real account
54 next year account personal account
Cash columns of Cash columns
cash book and Bank columns of of cashbook Bank columns of
Bank reconciliation is used to show the
bank cashbook and bank and bank bank book and bank
difference between the balance of
statement/passboo statement/passbook columns of statement/passbook
k cashbook
55
Accounts
Bank Reconciliation Statement is a part of Final Accounts Bank Book Cash Book
56 Information
To an account holder credit balance of bank
An asset A liability A provision An expenses
57 pass book will be
Advertisement
For goods distributed as free samples in the   Drawing Dr. To Sales A/c Dr. To Sales A/c Dr. To
A/c Dr. To
market, the journal entry will be purchase A/c cash A/c purchase A/c
purchase A/c
58
At the time of finalization of Financial
statements,Bad debts written off are to be Provisions Reserves Capital A/c Profit and Loss A/c
59 transferred to
Amount recovered from debtor, which was
earlier written off as bad debt is debited to Bad Debts Bad debts recovered Debtors Sales
60 Cash A/c and credited to
61 Subscription received in advance is a/an   Asset Liability   Income   Expenditure
62 Accrued subscription is Asset Liability   Income Expenditure
Income and Expenditure account is prepared Single entry Both accrual and
Accrual basis Cash basis
63 under method cash basis
Receipt and Payment Account is prepared Single entry Both accrual and
Accrual basis Cash basis
64 under method cash basis
Income and
Donation not received from any specific receipt and payment
Reserve fund Capital fund expenditure
purpose is transferred to account
65 account
Any liability which are payable within 12 Non-current Liquid   Contingent
Current Liabilities
66 months. Liabilities Liabilities Liabilities
Rent a/c is a
personal
The balances of
account but In ledger, accounts
Depreciation is a Nominal accounts
Which of the following statements is not true? outstanding are opened
nominal account are transferred to
rent account is separately
Profit & Loss a/c
a nominal
67 account
The art of recording transactions in a set of
  Book Keeping Accounting Auditing Writing
68 books is referred to as
 Total Current Current Assets –
           Gross working capital is equal to: Total Capital Total Assets
Assets Current Liabilities
69

with the
motive of
to maximize the earning profits
with the motive of
Business is an economic activity undertaken wealth for the and to None of the above
earning profits
owners. maximize the
wealth for the
owners.
70

Both measurement
The main functions of accounting are as   Measurement   Forecasting Analysing
and forecasting
71

Which one is not the example of Revenue Salary & wages Installation cost of
Repairs Insurance
Expenditure to employees machineries
72
Which account gets debited when Net Loss is
Profit & Loss Capital
transferred from Profit & Loss Account to Trading Account (d) Net Loss Account
Account Account
73 Capital Account
Which of the discount usually allowed by the
Special Both cash and trade
wholesaler to the retailer computed on the list   Cash Discount Trade Discount
Discount discount
price or invoice price.
74

Assests types whose usefulness does not

Capital Deferred revenue   Revenue Deferred capital
expire in the year of their occurrence but
Expenditure expenditures expenditure expenditures
generally expires in the near future.
75
Trading
Capital expenditure forms part of Balance Sheet Profit & Loss Trial balance
76 account
Credited to Bad Debited to
The debts written off as bad, if recovered Credited to Trade Appeared in the
Debts recovered Profit And Loss
subsequently are Receivables Account Balance Sheet
77 A/c Account
Return outward
Purchase Day Profit and Loss
book records the
A journal is often Book records Appropriation A/c is
transactions relating
Which fact is not likely to be true referred to as Book all credit prepared to know
to goods that are
of Final Entry purchase of the mathematical
returned by an
goods accuracy
entity to its creditors
78

Liabilities
Liabilities which which payable Liabilities which are
Liabilities which are
Current Liabilities means are payable within after one readable within 3
payable immediately
12 months accounting months
year
79
  deferred
Carriage of Rs 16,000 spent on machinery revenue   deferred capital
capital expenditure revenue
purchased and installed expenditure expenditure
80 expenditure
All revenue receipts and expenditures are Trading and Profit Cash Flow
Balance Sheet Statement of Affairs
81 shown in: and Loss A/c Statement
Reduce an asset, Increase an asset, Only reduce a Only reduce an
Payment to a creditor
82 reduce a liability reduce a liability liability asset
For showing
For the close of
Balance sheet is prepared At a particular date At the close of a day performance of an
a period
83 organisation.
Shown in the
Shown in the
Stock lost due to accident not compensated by Debited to profit & Credited to trading asset side of
liability side of the
the insurance company should be Loss account account the balance
balance sheet
84 sheet
Provision for discount on debtor is created
Good debtors Doubtful debtors Bad debtors Insolvent debtors
85 only on
Normal wear and Abnormal Management
Internal cause of depreciation is Obsolescence
86 tear occurences decision
In a period of rising prices, which of the
Last-in, first- Specific
inventory methods usually provides the best Weighted average First-in, first-out
out identification
matching of expenses against revenues
87
Traditionally sssets are listed on the balance
purchase date.    adjustments. liquidity balance
88 sheet in the order of their
Which of the following is and insider so far as Chief Executive
Money lenders Banks Creditors
use of accounting information is made Officer
89
    Depreciation   Service   Accumulated
Which of the following accounts is not closed Dividends
90 Expense Revenue Depreciation
   Profit and loss Funds flow
Which is consider as position statement   Balance sheet Trial balance
91 account statement
Reduce an asset, Increase an asset, Only reduce a Only reduce an
Payment to a creditor
92 reduce a liability reduce a liability liability asset
An increase in the provision for doubtful debt Increase in net Decrease in net Increase in
Non of the above
93 will profit profit liability
Which of the factor is not considered for
Cost of asset Life of asset Scrap value Fair market value
94 measurement of depreciation
concerns
Which of the factor support the objectives of is useful for making helps management enterprise helps investors and
financial reporting except providing investment and evaluate alternative resources and creditors predict
information that credit decisions. projects. claims to those future cash flows
resources.
95

Which method of costing is used for

process costing operating costing batch costing job costing
determination of costs for printing industry
96
machinery
On which type of costs, management is likely building insurance
wages cost breakdown advertisement cost
to have least control cost
97 cost
for a particular
depends upon
Variable costs are fixed for a period per unit process of
the entity
98 production
production and non- controllable and non- direct and fixed and variable
In behavioral analysis’, costs are divided into
production costs controllable costs indirect costs costs
99
Which of the following items is excluded from interest on
Income tax cash discount    All of these
100 cost Accounts debentures
The following is included in financial accounts,
carriage and freight Excise duty Royalty Dividend paid
101 but not in cost accounts
selling distribution
Advertisements are treated as direct expenses cost of production
102 overheads overheads
  The guidance and regulation by executive
action of the cost of operating an undertaking Budgetary control cost control cost analysis None
103 is said to be
chargeable
Direct expenses are also known as Overhead expenses process expenses None
104 expenses
Which is a part of both Prime cost and Indirect
Direct Material Indirect Labour Direct Labour
105 conversion cost Material
Statement showing break-up of costs is known production
cost-sheet statement of profit Tender
106 as account
  The works cost plus administration expenses Total Cost Cost of production cost of sales Factory cost
107
It is carried
Long term It challenges the out without
Cost reduction is All of the above
phenomena standards compromising
108 the quality
109 Interest on own capital is   Cash cost Notional cost Sunk cost Part of Prime Cost
The financial statement that reflects
Cash Flow
information about the financial performance of Income Statement Balance Sheet Profit and Loss A/c
Statement
an organisation can be stated as
110

The summarised record of transactions

Journal Cash book Account (Voucher
related to a person or a thin can be defines as.
111
Accounts related to expenses or losses and Representative Nominal
Personal accounts Real accounts
112 incomes or gains are called Personal accounts accounts
Directors remuneration and expenses form a Production Administration Selling Distribution
113 part of overhead overhead overhead overhead
Proper
Ensuring proper
The purpose of distinguishing transactions Determination of disclosure of As required by the
accounting of
between capital and revenue are true operating result financial management
transactions
114 position
Capital cost of fixed Installation and Overhauling of Purchases of
Which is not a capital expenditure
115 assets Erection charges machinery stationeries
116
Which accounting concept is related to capital Periodicity
Entity concept (b) Matching concept Consistency concept
117 and revenue transactions concept
Determination of Repayment of For disclosure of
Which is not the objective of providing For maintenance of
the true operating external the true value of the
depreciation capital
118 result liabilities asset
The financial statements of an organisation are Ledger
Transactions Events Journal proper
119 drafted using the balances
Prime cost plus factory overheads is known as   factory on cost conversion cost factory cost marginal cost
120
 existence of
concealed
efforts made
the achievement in potential
Cost Control represents towards achieving a corrective function
reduction of cost savings in
target or goal
standards or
121 norms
Loss due to
Which of the following is considered as normal careless
Pilferage Loss due to accident Theft
loss of material handling of
122 material
Production
Discarded material that does not
Loss in the Wastage due to
Scrap can be stated as having no or meet the
production process mishandling
insignificant value quality
requirements
123
Accounting
Indian AS 16 deals with Property, Plant and Valuation method Valuation approach Accounting analysis
treatment for
Equipmnts (PPE) suggested for PPE for PPE for PPE
124 PPE
affect the
organisation' change in
organisation;s change of value due
In IAS 16 the user of financial statement can investment and the value due to
method towards to sudden changes
have information in its PPE about an changes in such change in
value methods in technology
investments demand in
125 market
decisison of
obsolescence of an change of technology timing of recognition
One of the pricipal issue in Ind AS 16 is management of
asset of an asset of an asset
126 an asset
Institute of Any other
Ministry of Management of any
Company accounting
Ind As 16 PPE is applicable to all PPE until Corporate affairs organisation decided
secretaries of India standard asks
and unless restrict the use of AS not to apply Ind As
give certain for a different
16 16
guidelines tratment
127

For recognising the asssets in Ind As 16 which Subsequent

Obsolescence De recognition Revaluation
concept may not be taken inti account measurement
128

It is apparent that
the future The future benefit Cost of such
Categories of such
The cost of any item of PPE (AS 16) to be economic benefit can be shifted to assets would
assets could be
recognised as an asset only when related to such other categories of be reliably
easily recognised
assets would not assets measured
flow to the business
129
Cost of
Initial
Which one will the initial measurement for Cost of opening a advertiseement and
operating Borrowing cost
purchased assets will be at cost new facility promotional
losses
130 activities
Legal fee for
Which one of the cost to be deducted from the Non refundable Transportation purchase contract
Import duties
purchased asset price purchase taxes costs and recording
131 ownership
Legal fee for
Which one of the cost to be deducted from the Non refundable Transportation purchase contract
Import duties
purchased asset price purchase taxes costs and recording
132 ownership
Cost of the
Which of the cost not to be considered for technical staff to Initial handling
Site preparation cost Cost of testing
bringing the asset to the working condition start operation of cost
133 the plant
The carrying amount of items of PPE should be At the time when When technonoly At the time of When market
deecgnised valuation is needed changes their disposal adversely affect
134

In Ind AS 16 when an assets i.e. PPE acquired Value decided by Exchange

Liquidation value Fair value
in exchange,the valuation will be management value
135

Amount with
Measurement basis respect respect
Management
Which one is required to be disclose as per Ind for determining Depreciation method to any due for
decision regarding
AS 16 by valuer technological used acquiring PPE
maintaining of PPE
obsolence with local
authority
136
 assets are
the useful life of the carried at not proper depreciation
assets being
The object of Ind AS 36 is to ensure that assets properly more than method are used for
properly valued
estimated recoverable assets
value
137
adjust the properly calculate
reverse an
change the value of the the residual value of
The Ind AS 36 also specifies when an entity impairement loss
valuation method assets as per the assets dislose
should and prescribes
and give disclosure the fair market the same in financial
disclosures
138 value statement
carrying carrying amount
carrying amount carrying amount amount does affect the
As per the Ind AS 36 an asset is considered to
exceeds its does not exceeds its not affect the revaluation as
be impaired when its
recoverable amount recoverable amount recoverable decided by
amount management
139

at any time
at the begenning of during an at any time during
at the end of an
an annual annual an annual period
annual
The impairement test may be performed by an period,provided it is period,provide and can be
period,provided it is
entitiy performed at the d it is performed at
performed at the
same time every performed at different time of the
same time every year
year the same time year
every year
140
Assets arising from
Deffered financial Intangible
The Ind AS 36 shall apply to Inventories the employee
assets assets
141 benefits
Recoverable value Recoverable value Recoverable
Recoverable value
Method of calculating impairement loss is plus scarrying less scarrying value plus
less depreciation
amount amount depreciation
142
Cost of
Which will not be considered cost of diaposal Stamp duty and
Legal cost removing the Depreciation
while determining the fair value similar taxes
143 assets
Estimated
Estimated present Estimated future
Present cash flow future cash
Value in use is calculated on cash flow and cash flow and
and discout rate flow and
depreciation rate depreciation rate
144 discount rate
While test for Impairment which one will be Assets perfornace Discontinuence or Change in Evidence of physical
considered as External Indicator is declining restructuring plan interest rate obsolescence
145
type of assets
class of assets
whose
As per Ind AS 36 an organisation required to certain specified become
each class of assets economic life
make a disclosure for types of assets technologically
almost
obsolate
146 exhausted
An entity shall disclose for each material
method of nature of market goodwoll or cash
impairment loss recognised or reversed during
depreciation used obsolescence fluctuation generating
the period for an individual asset including
147

Ind AS 40 Investment Property applies to the all movable or all tangible and land and land and/or
accouting for property of immovable assets intangible assets buildings buildings
148
earn rental
only for capital only research
Investment property held to earn only rentals and for cpital
appreciation purpose
149 appreciation
Land held for a
Land held for long Property leased to Building lease out
Which one will not be considered as example currently
term capital another entity under under an operating
of Invest Property undermined
appreciation financial lease lease
150 future use
a property held by
a property held by a property held by a property held
the owner only for
the owner or by the the owner or by the by the owner
use in the
lessee under a lessee under a or by the
production under a
fnance lease for use operating lease for lessee under a
As Ind AS 40 owner occupied property means fnance lease for use
in the production use in the operating lease
in the production or
or supply of goods production or supply for use only for
supply of goods or
or services or for of goods or services administrative
services or for
administrative or for administrative purpose
administrative
151
 If the portion of any property can not be sold Owner
Owner occupied
or leased out separately, the property is Owner occupied Owner occupied occupied
portion is
considered to be as investment property only if portion is 50% portion is 30% portion is
insignificant
152 the significant
Where the ancillary services provided by the owner partly owned by
property under property under
entity are more significant then the property occupied owner and partly
operating lease financial lease
153 shoul be classified as property under lease
Under Ind AS 40 if a property rented to a is an investment is not an investment is leasehold is aowner occupied
154 parent,subsidiary or fellow subsidiary property property property property
both fair value
either fair value or
As per Ind AS 40 an entity can adopt for all of a fair value method a cost value method and cost value
cost value method /
it's investment property / model / model method /
model
model
155

Correct method of Indication of Actual market Decision and

As per Ind AS 40 Fair Value should reflect as
Depreciation Impairement and derecognition of an
of the Balance Sheet date
applied properly reflected circumtances asset
156
As per IAS 40 which one will bethe part of Management
Sudden change in Technological Rental income from
disclosure in both Fair value model and Cost decision for
market condition obsolescence investment property
157 model modification
the
As per IAS 40 which one will not be the part of thedepreciation the change in useful
the useful life depreciation
Disclosure for the Cost model method used life of th eassets
158 rate used
characteristics
that are nature of assets and
As per IAS 113 the measurement of assets or method of useful life of the
relevant for the relevant market
liability is affected by depreciation used assets
market potentiality
159 participation
Technological
As per IAS 113 which one will not be a obsolescence
Principal / most
requirement by an entity to state fair value Asset or liability or current Non financial assets
advantegious market
measurement assets or
liabilities
160

Present value
Reflects the technique i.e. Guideline
For non financial
amount that would Discounted transactions in the
As per IAS 113 valuation technique to be assets =
be required to cash flow market in the same
cconsidered for market approach Replacement cost +
replace the service method when industry as the
obsolecence
capacity of an asset valuing a project company
business
161
As per IAS 113 an entity shall present the
Vertical format Horizontal format Tabular format Special format
162 quantitative dislosure generally
To set out a
To make a To require
single Ind As
To determine fair comparison with disclosure with
Which one is not the object of Ind AS 113 framework for
value various valuation respect to fair value
measuring fair
method measurement
value
163