Financial Accounting

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Contents
1 FINANCIAL ACCOUNTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 FINANCIAL ACCOUNTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1. FINANCIAL ACCOUNTING
NARAYAN CHANGDER
1.1 FINANCIAL ACCOUNTING
1. Goodwill WILL BE INCLUDED A. Customer
A. PERSONAL ACCOUNT B. Business Owner
B. NOMINAL ACCOUNT C. Manager
C. REAL ACCOUNT D. Promoter
D. NONE OF THE ABOVE
4. Types of Accounts?
2. Which of the following is one of the possi- A. Personal
ble nonrecurring items that must be shown
in a separate line item BELOW the Income B. Real
from Continuing Operations subtotal in the C. Nominal
income statement?
D. All the above
A. A. Gains and losses from the sale of
fixed assets 5. It is a measurement of financial position of
B. B. Discounted operations the company.
C. C. Extraordinary items A. Income Statement

D. Both A and B B. Balance Sheet
C. Cash Flow Statement
3. Identify this user of accounting informa-
tion best depicted by the picture. D. Adequate disclosure Principle
6. At the time of partnership liquidation,

which credits shall be settled first?
A. Those amounts owing to third persons
B. Those amounts owing to partners
other than capital contribution and share
in profit.
1. C 2. B 3. B 4. D 5. B 6. A
1.1 FINANCIAL ACCOUNTING 3
C. Those amounts owing to partners with A. Balance Sheet

respect to capital contribution.
B. Cash Flow

D. Those amounts owing to partners with
C. Income statement
respect to share in profit.
D. none of above
7. An expense is termed an accrual because
it 11. A receivables confirmation letter that is
A. is yet to be paid for sent back to the Public Accountant to pro-
vide a response that the receivables data
B. is a profit and loss account item
sent is incorrect is a confirmation letter
C. must appear in the balance sheet
A. Negative
D. is a trading account item
B. End of year
8. What is the correct adjusting entry for ac-
C. Positive
cumulated depreciation?
A. Dr Accumulated DepreciationCr Depre- D. Accounts receivable balance
ciation Expense
12. A weakness of the accrual basis account-
B. Dr LandCr Accumulated Depreciation- ing system is that it takes the focus off
Land of:
C. Db Depreciation ExpenseCr Cash A. stock
D. Dr Depreciation ExpenseCr Accumu- B. inventory
lated Depreciation
C. notes payable
9. A company issues 4% convertible bonds
at their nominal value of $5 million. In- D. cash
terest is payable annually in arrears. Each
13. Parallel accounting consists of implement-
$1, 000 bond is convertible at any time up
ing multiple ledgers and using each ledger
to maturity into 400 ordinary shares. Al-
for different purposes.
ternatively the bonds will be redeemed at
par after 3 years. The market rate applica- A. True
ble to non-convertible bonds is 6%Which
B. False
TWO of the followings are incorrect:
A. At issuing date, the company recog- 14. Employees always receive the company’s
nized a financial liability at $ 5 million accounts and an employee report
B. The bonds are recorded as both liabil- A. TRUE
ity and equity
B. FALSE
C. The company recognized interest ex-
pense at market rate of 6%. 15. Cash at bank is a/c
D. The company recognized interest ex- A. Real a/c
pense at coupon rate of 4%.
B. nominal a/c
10. Which statement looks at Costs, Expenses
C. expenses a/c
and Sales revenue at the end of a fiscal
period? D. personal a/c
7. A 8. D 9. A 9. D 10. C 11. A 12. D 13. A 14. B 15. A 16. A

16. Records revenue when it is earned and 22. Financial reports that summarize the finan-
matches expenses against the revenue cial condition and operations of a business
they generate, even if cash is not received.
A. financial statements
A. Accrual accounting B. ethics
B. Depreciation C. withdrawals
C. Net Income D. equities
D. GAAP
NARAYAN CHANGDER
23. where is depreciation recorded
17. The best interpretation of the word credit A. current asset
is the
B. current liability
A. offset side of an account.
C. not a current asset
B. increase side of an account.
D. OE
C. right side of an account.
24. An AllIn company purchases goods on
D. decrease side of an account.
credit. What are the two moving accounts
18. Which side does Receipts from debtors be- A. Clients/stocks
long? B. Purchase of goods/operating suppli-
A. Debit ers
B. Credit C. Achat marchandises/clients
D. Achat marchandises/banque
19. Oracle Corporation reports information
about pending lawsuits in the notes to its 25. A debit to an asset account indicates
financial statements.
A. an increase in the asset
A. Revenue Recognition
B. an increase in liability
B. Matching
C. a credit was made to a liability account
C. Full Disclosure
D. a credit was made to a liability account
D. Historical Cost
26. The following figures have been taken
20. The balance sheet is a snapshot of the or- from the accounts of a manufacturing orga-
ganization at a point in time. nization:$Cost of raw materials used 90
000Direct wages 50 000Indirect wages
A. True
30 000Direct expenses 40 000Indirect ex-
B. False penses 20 000 Which of the following fig-
ures represents the manufacturers’ prime
21. Cash discount is classified into cost?
A. 4 A. $230 000
B. 3 B. $180 000
C. 2 C. $140 000
D. 1 D. $90 000
17. C 18. B 19. C 20. A 21. C 22. A 23. C 24. B 25. A 26. B 27. C
27. The main purpose of cost Accounting is to B. Cash basis accounting records trans-
actions only when cash is exchanged,
while accrual basis accounting records

A. Maximize profits
transactions when they occur, regardless
B. Help in inventory of when the cash is exchanged.
C. Provide information to management C. Cash basis accounting records trans-
for decision making actions only when loans are exchanged,
D. Aid in the fixation of Selling price while accrual basis accounting records
28. Purchases returns is also known as of when the loans are exchanged.
A. Sales returns D. Cash basis accounting records trans-
actions only when checks are exchanged,
B. Return outwards
C. Returns inwards transactions when they occur, regardless
D. Discount allowed of when the checks are exchanged.
32. n/30
29. sale of finished goods will be recorded in
A. 2 days for 10% discount, or total is due
A. trading account debit side
in 30 days
B. profit and loss account debit side
B. 2% discount in 10 days, or total is due
C. profit and loss account credit side in 30 days
D. trading account credit side C. $2 off in 10 days, or total is due in 30
days
30. Which account increases equity?
D. None of the above
33. The process of bringing a zero balance to

all temporary accounts by crediting debit
balances and debiting credit balances and
transferring those balances to the capital
account.
A. Closing the books
A. EXPENSES B. Trial Balance
B. WITHDRAWALS C. Balancing the books

D. none of above
C. TREASURY STOCK
D. REVENUES 34. Accounting Principles are, the Rules of Ac-
tion or the Methods and Procedures of Ac-
31. What is the difference between cash basis counting commonly adopted while record-
and accrual basis accounting? ing Business transactions.
A. Cash basis accounting records trans- A. true
actions only when credit is exchanged, B. false
transactions when they occur, regardless C. can’t say
of when the credit is exchanged. D. situation based
28. B 29. D 30. D 31. B 32. B 33. A 34. A 35. A

35. the records daily transactions of a busi- D. Complex means Challenging to sur-
ness in the order in which they occur vive and do well in a complex environ-
A. journal ment, characterized by conflicting pres-
sures from different groups in their inter-
B. ledger ests in financial reporting
C. account E. all answers are wrong
D. trial balance
40. Under hire purchase the buyer has the op-
NARAYAN CHANGDER
36. Which of the following statements is cor- tion to return the goods
rect? A. True
A. The process of recording a transaction B. False
in a journal is called posting.
B. A group of accounts for a business en- 41. The method of depreciation assumes
tity is called a Journal. that the non current asset is used EVENLY
throughout its useful life
C. A listing of all the accounts in a ledger
is called a chart of accounts. A. Reducing Balance Method
D. All the statements above are correct. B. Straight Line Method

C. revaluations method
37. A written report which describes the fi-
nancial health of a company. Examples D. My own method
include:balance sheet, income statement,
42. Donations received for a special purpose
statement of changes in owners equity
will be taken to the
A. financial statement
A. Liability side of the balance sheet
B. balance sheet
B. Asset side of the balance sheet
C. audit
C. Income and Expenditure account
D. budget
D. Receipts and payments account
38. Royalty account is
43. Transportation costs are borne by the
A. Personal a/c buyer
B. Real a/c A. FOB Shipping Point
C. Nominal a/c B. FOB Destination Point
D. Capital a/c C. COD
39. The complexity of information in Account- D. none of above
ing and Financial Reporting means that:
44. Sold goods to Sahil for cash 1800, in this
A. The accounting environment is very transaction sahil’s A/c will be
complex and challenging
A. debited
B. Complex means that the accounting
product is INFORMATION B. Credited
C. Accounting is a producer of powerful C. Neither debited nor Credited

and important information commodities D. None of the above
36. C 37. A 38. C 39. A 39. B 39. C 39. D 40. A 41. B 42. A 43. A 44. C 45. B
45. The contract of insurance is a contract of 51. The money owed to a company for services
guarantee. rendered or goods purchased by customers
on credit.

A. True
A. Accounts Receivable
B. False
B. Accounts Payable
46. “Business transaction derived from busi-
C. Loans
ness documents”, this describe which pro-
cess of accounting? D. Service payable
A. Decision making 52. is the total of the direct materials, di-
B. Identifying rect labour and direct expenses. It is the
cost of the essentials necessary for produc-
C. Reporting
tion.
D. Auditing A. Manufacturing account
47. A not-for-profit entity has all of the fol- B. Prime cost
lowing characteristics except that it will C. Cost of production
A. Have positive fund balance D. Work in progress
B. Not possess ownership interests like a
corporation 53. GAAP stands for
C. Operate for purposes other than to A. Generally Accepted Accounting Proce-

provide goods or service dures.
B. Generally Accepted Auditing Princi-
D. Receive significant contributions from
ples.
providers who do not expect returns
C. Generally Accepted Auditing Proce-
48. The accountant’s word to indicate that an dures.
entry will be recorded on the left-side of
D. Generally Accepted Accounting Princi-
an account is
ples.
A. Debit
54. A check returned by the bank marked
B. Credit
“NSF” means
49. Statement of affairs is prepared to A. no service fee.
A. Know about assets B. not satisfactorily filled-out.
B. Know about liabilities C. no signature found.
C. Calculate capital D. not sufficient funds.
D. Know financial position 55. Which of the following departments does
SEBI have?
50. Audit of LLP is compulsory when
A. Commodity Derivatives Market Regula-
A. Contribution exceeds |25, 00, 000
tion Department (CDMRD)
B. Turnover exceeds |50, 00, 000
B. Human Resources Department
C. Turnover less than |20, 00, 000 (HRDM)
D. Turnover less than |10, 00, 000 C. Regional Offices (ROs)
46. B 47. A 48. A 49. C 50. A 51. A 52. B 53. D 54. D 55. D
D. All of them 60. When cash is received, the account Cash

E. None of them will be
A. Debited
56. Which inventory tracking method is more
B. Credited
accurate?
A. periodic 61. A person cannot act as an underwriter un-
less he holds a certificate granted by
B. LIFO
A. RBI
NARAYAN CHANGDER
C. perpetual
B. SEBI
D. average
C. ROC
57. a list of assets, liabilities and owners eq- D. MCA
uity of a business enterprise as of a spe-
cific date is 62. The differences between credit sales and
installment sales are, except
A. income statement
A. Difference in maturity period, if credit
B. cash flow statement sales period is 30-60 days
C. balance sheet B. Differences in repayment methods, if
D. profit and loss account credit sales are paid immediately (not
paid regularly)
58. Short-term debt investments must be C. The difference in the agreement con-
readily marketable and expected to be tract, if there is a promise of installment
sold within: sales.
A. 3 months from the date of purchase. D. Differences in ownership rights, if the
B. the next year or operating cycle, installment sale of goods has become
whichever is shorter. property rights.
C. the next year or operating cycle, 63. To have a debit, you must always have a
whichever is longer. credit
D. the operating cycle. A. True
59. The CPA firm auditing Mason Street B. False
Recording Studios found that total stock- 64. The Adequate Disclosure accounting con-
holders’ equity was understated and lia- cept is applied when financial statements
bilities were overstated. Which of the fol- contain all information necessary to under-
lowing errors could have been the cause? stand a business’s financial condition.
A. Making the adjustment entry for depre- A. True
ciation expense twice.
B. False
B. Failure to record interest accrued on a
note payable. 65. The cash account shows a balance of $85,
000 before reconciliation. The bank state-
C. Failure to make the adjusting entry to ment does not include a deposit of $5, 000
record revenue that had been earned but made on the last day of the month. The
not yet billed to clients. bank statement shows a collection by the
D. Failure to record the earned portion of bank of $2, 400 and a customer’s check for
fees received in advance. $680 was returned because it was NSF. A
56. C 57. C 58. C 59. C 60. A 61. B 62. D 63. A 64. A

customer’s check for $900 was recorded 70. Profit should be accounted for only when
on the books as $1, 080, and a check writ- it is actually realised.
ten for $138 was recorded as $183. The

A. Matching Concept
correct balance in the cash account was
B. Dual Aspect
A. RM86, 540.
C. Money Measurement
B. RM86, 585.
D. Realisation Concept
C. RM87, 400.
D. RM95, 350. 71. JJ Company owns a building. Which of the
following statements regarding deprecia-
66. During January 2016, Ms. Nanaka bor- tion as used by accountants is false?
rowed RM4 million from Malaysia Bank.
How would this affect Ms.Nanaka assets, A. As depreciation is recorded, stockhold-
liabilities and capital? ers’ equity is reduced
A. Assets decrease, liabilities decrease B. Depreciation is an estimated expense

and capital increase to be recorded over the buildings esti-
mated useful life
B. Assets increase, liabilities increase
and capital has no effect C. As depreciation is recorded, the net
book value of the asset is reduced
67. Received Rs 990 in full and final settle- D. As the value of the building decreases
ment of Rs 1000 rupees from Manoj.The over time, it “depreciates”
difference of Rs 10 will be posted to
A. Debit side of the manuj account 72. Who is the guardian of the country’s bank-
ing system?
B. Debit side of discount account
A. Lok Sabha
C. Credit side of discount account
B. central government
D. Debit side of cash account
C. state Bank of India
68. Merits of accounting are
D. Reserve Bank of India
A. Helps the management in planning and
decision making process 73. Which accounting reports on the past
B. Helps in determining the profitability events?
of the concern A. Managerial Accounting
C. Helps in understanding the financial B. Financial Accounting
health of the concern
74. Which of the following are the types
D. all of the above
of financial statements 1.Statement
69. Obligations (amounts owed) are reported of Cash Flow2.Statement of Profit or
on the balance sheet and are referred to loss3.Statement of Financial Position4.
as Trial balance
A. Assets A. 1, 2, 3 and 4
B. Liabilities B. 1, 2 and 3
C. Debt C. 2 and 4
D. Owner Equity D. 2, 3 and 4
65. B 66. B 67. B 68. D 69. B 70. D 71. D 72. D 73. B 74. B 75. A
75. When the call money is received by the B. Dividend

company, account is credited
C. Shares
A. Share Call Account
D. Profit
B. Cash Account
C. Share Capital 81. According to Nominal category of Golden
rules, Debit includes
D. None of the Above
A. all incomes and gains
NARAYAN CHANGDER
76. A plot of land containing mining deposits
was purchased for IDR 200, 000, 000. B. all expenses and losses
The estimated content is 2, 000, 000 tons.
So the depletion rate is 82. What is the purpose of preparing profit
and loss statement?
A. 200/ton
A. To calculate gross profit
B. 200/kg
C. 2000/ton B. To compute closing capital
D. 20/ton C. To calculate net profit/ (loss)

E. 20000/ton D. To calculate cost of sales
77. Who issues IFRS/IAS? 83. Which of the following expenses would
A. IASB vary with the amount of goods produced?
B. IFRS Foundation A. Wages paid to machine operators
C. IFRS Interpretation Committee B. Works manager’s salary
D. IFRS Advisory Council C. Rent of factory production units
78. Closing capital =? D. Insurance premium on factory build-
ings
A. Opening capital+ Net profit+Additional
capital-drawings
84. For expenses incurred by consignor, this
B. Opening capital +net profit-drawings account is debited.
C. opening inventory+purchase-closing A. Consignor
inventory
B. Consignment
D. Non of the above
C. Consignee
79. balancesheet is an account
D. Bank
A. true
B. false 85. A contra asset account has what type of
balance?
C. not acceptable
D. its a statement A. Debit
B. Credit
80. is a part of the profit distributable to
shareholders of an organization C. Contra
A. Premium D. All of the above
76. A 77. A 78. A 79. D 80. B 81. B 82. C 83. A 84. B 85. B 86. B
86. George and Ringo met at law school and 91. The financial statement that reports the
decide to start a small law practice after revenues and expenses for a period of
graduation. They agree to split revenues time such as a year or a month is the:

and expenses evenly. The most common
A. Balance Sheet
form of business organization for a busi-
ness such as this would be B. Income Statement
A. proprietorship C. Statement of Cash Flows
B. partnership. D. None of These
C. corporation.
92. What does COGS stand for?
D. joint venture.
A. cost of goals scored
87. A company receives $500 of cash as an ad-
B. cost of goods stocked
ditional investment in the company by its
owner, Mary Smith. The company’s Cash C. cost of goods sold
account is increased and Mary Smith, Cap- D. cost of goods solvent
ital is increased.Should the $500 entry to
the Cash account be a debit? 93. You are presented a financial statement
A. yes and from it you can tell what the business
owed looking at a financial statement. By
B. no
studying the information on the statement,
88. What is the minimum and maximum num- you can tell what the business owns and
ber of members in a public company? what it owes as of a certain date. You are
looking at:
A. Minimum-7Maximum-No Limit
A. Income Statement
B. Minimum-2Maximum-200
B. Assets
C. Minimum 1Maximum-100
C. Revenues
D. Minimum-10Maximum-No Limit
D. Balance Sheet
89. Goods worth Rs 7, 000 given away as
charity will be recorded in 94. Net Income =?
A. Sales Book A. Revenue-Expenses
B. Purchase book B. Assets-Liabilities
C. Cash Book
C. Stockholder’s Equity + Revenue-
D. Journal Proper Expenses
90. Which of the following is considered an in- D. Retained Earnings + Net Income-
tangible asset? Dividends
A. Copyright 95. Stock splits and stock dividends both af-

B. Patent fect the par value of the stock.
C. Goodwill A. True
D. All of the above B. False
87. A 88. A 89. D 90. D 91. B 92. C 93. D 94. A 95. B

96. A company using the accrual method of ac- 101. Rights of the creditors are called liabili-
counting performed services on account in ties.
August. The services were for $2, 000 A. True
and the company gave the customer credit
terms that state the amount is to be paid B. False
to the company in September.Which ac-
102. (d) :A document of the company that
count should the company credit for $2,
lists the goods that a business has re-
000 in August?
ceived from a supplier.
NARAYAN CHANGDER
A. Cash
A. Debit advice
B. Accounts Receivable B. Credit advice
C. Service Revenue C. Goods received note (GRN)
D. none of above D. Goods dispatched (delivery) note
97. What is the formula for Gross Profit Mar- (GDN)
gin E. Purchase order
A. Profit / Net sales revenue X 100 103. X and Y are in partnership with com-
B. Gross profit / Net sales revenue X 100 bined capital and current account balances
C. Gross profit / Sales revenue X 100 of $125 000.Z is admitted as a partner, in-
troducing capital of $40 000. At that time,
D. Profit / Cost of sales X 100 the assets of the partnership are revalued
upwards by $50 000 and goodwill was
98. Find the term to match the meaning be-
valued at $18 000. Goodwill was not to
low:A charge added to purchases when
remain in the books of account.What was
the supplier delivers inventory to the busi-
the total capital employed of the partner-
ness’s premises. It is sometimes referred
ship immediately after the admission of Z?
to as a delivery charge
A. $183 000
A. Carriage in
B. $197 000
B. Carriage way
C. $215 000
C. Carriage out
D. $233 000
D. Carriage car
104. Which account is not a liability account?
99. is referred to as a statement of net
worth, or a statement of financial position. A. Accounts payable
A. Income Statement B. Accrued expenses
B. Cash Flow Statement C. Cash
C. Balance Sheet D. Notes payable
D. Statement of Changes in Equity 105. Accounting Principles include
100. Sales Book records both cash and credit A. Accounting Concepts
sales. B. Accounting Conventions
A. True C. both of them
B. False D. none of them
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106. All the following are reasons why trial 111. To increase the balance in the following
balance may not balance except accounts, would you debit the account or
would you credit the account?Supplies Ex-

A. Error of posting
pense
B. Errors in addition
A. Debit
C. Wrong figures in the ledger
D. Error of omission B. Credit
107. Which of the following is not a business 112. An amount entered on the right side of a
transaction? T account.
A. Bought furniture of $10, 000 for busi- A. debit
ness
B. credit
B. Paid for salaries of employees $5, 000
C. normal balance
C. Paid son’s fees from her personal bank
account $20, 000 D. all of the above
D. Paid son’s fees from the business $2,
000 113. In the Absence of Profit and Loss Sharing
Ration in the agreement the Profit or Loss
108. Choose the correct option is Divided by
A. Capital Proportion
B. Last Profit or Loss Ratio
C. Equally
A. 4, 300, 000 D. Any Ratio
B. 4, 700, 000 114. Liabilities often have the word in

C. 3, 700, 000 their account title.
D. 3, 300, 000 A. Assets
109. What are the most common transaction B. Payable
types that occur during the life of an as-
C. Paid
set?
A. Production D. Equity
B. Allocation 115. Rent Outstanding have balance

C. Acquisition
A. Credit
D. Depreciation
B. Debit
E. Retirement
110. There is no difference between Receipts 116. Generally when revenues are involved in
and Payment Account and Income and Ex- a transaction, a revenue account will be
penditure Account.
A. True A. Debited
B. False B. Credited

117. Pay attention to the following A. The result of the question is what is the
data:Initial inventory 2, 000 kg @ Rp. problem?
10, 000 Purchase I 4, 000 kg @ Rp. 12, B. Regulations to protect investors:Information
000 Purchase II 3, 000 kg @ Rp. 15, 000 is a complex and important commodity.
PD Merpati Jaya made sales of 5, 000 kg. PSR power itself fails to control two types
If the ending inventory value calculated of information asymmetry.
using the LIFO method is
C. difficult/unfavorable selection (ad-
A. Rp 44.000.000 verse selection)
NARAYAN CHANGDER
B. Rp 44.400.000 D. behavioral deviation (moral hazard).
C. Rp 54.700.000 E. Increase our understanding of the ac-
D. Rp 64.000.000 counting environment
118. What’s the accounting cycle after trial 122. Accounting concepts and conventions are
balance? (What accounting cycle should like the Basic rules and regulations of Ac-
we create after the trial balance?) counting to be followed in a business
A. Ledger A. True
B. Adjustment Journal B. False
C. Work Sheet 123. Double entry System was introduced in
D. Financial Reports A. America
119. A system of record-keeping in which each B. France
business transaction affects at least two C. Germany
accounts.
D. Italy
A. double entry accounting
124. Income Summary is a temporary account
B. double entry finance
only used for the closing process that has
C. business finance a credit for total expenses and debit for
D. financial reports total revenues.
A. True
120. Martha Innocenzi Ito began the Innocenzi
Company by investing $75, 000 of cash in B. False
the business. The company recorded rev- Explanation:Credit for total REVENUES
enues of $555, 000, expenses of $410, and a Debit for total EXPENSES
000, and had owner drawings of $30, 125. Which is a non-current asset?
000. What was Innocenzi’s net income for
the year? A. cash
A. $115, 000. B. Inventories
B. $145, 000. C. typewriter
C. $175, 000. D. bank deposit
D. $190, 000. 126. Explain the accounting equation.
121. Regulation as a Reaction to Fundamental A. Assets-Liabilities = Equity

Problems in Accounting Theory: B. Assets = Liabilities + Equity

C. Assets = Liabilities-Equity this date, Sorrell had the fair values of

D. Assets + Liabilities = Equity assets and liabilities $120, 000 and $20,
000, respectively, while retained earnings

127. Tobruk Company has an agreement to of $50, 000. What is the record by Pull
pay its sales manager a bonus of 5% of when acquiring Sorrell?
the income after bonus and after tax. The A. Dr. Investment in Sorrell $120, 000Cr.
income for the current year before bonus Gain on bargain purchase $20, 000Cr.
and tax is P5, 250, 000. The income tax Cash in bank $100, 000
rate is 30% of income after bonus. What
is the bonus of the sales manager for the B. Dr. Investment in Sorrell $100, 000Cr.
current year? Cash in bank $100, 000
A. 262, 000 C. Dr. Investment in Sorrell $100, 000Cr.
Gain on bargain purchase $50, 000Cr.
B. 250, 000
Cash in bank $50, 000
C. 177, 536
D. Dr. Investment in Sorrell $120, 000Cr.
D. 186, 548 Cash in bank $120, 000
128. .6 Interest earned is a E. Dr. Investment in Sorrell $50, 000Cr.
A. personal account Cash in bank $50, 000
B. real account 131. Which of the following is not a primary

C. nominal account reason why corporations invest in debt
and equity securities?
D. Intangible real account
A. They wish to gain control of a competi-
129. The lessor should report the underlying tor.
asset under an operating lease and income
therefrom as which of the following? B. They have excess cash.
A. The asset should be kept off the state- C. They wish to move into a new line of
ment of financial position and the lease in- business.
come should go to other comprehensive D. They are required to by law.
income.
B. The asset should be kept off the state- 132. The proprietor is treated as a creditor to
ment of financial position and the lease in- the extent of his capital according to:
come should go to the income statement. A. Cost Concept
C. The asset should be reported in the B. Business Entity Concept
statement of financial position according
to its nature and the lease income should C. Going Concern Concept
go other comprehensive income. D. Materiality Concept
D. The asset should be reported in the
statement of financial position according 133. Identify the type of expenditure. Paint-
to its nature and the lease income should ing extension to warehouse when it is first
go to the income statement. built.
A. Capital
130. On June 1, 2019, Pull Company acquired
100% of Sorrell Inc. for $100, 000. On B. Revenue

134. Owner’s equity is best depicted by the 140. Which of the following is the form of busi-
following: ness combination?
A. Assets = Liabilities. A. Merger
B. Liabilities + Assets. B. Consolidation
C. Residual equity + Assets. C. Acquisition
D. Assets-Liabilities. D. All of the above
135. rent received will be recorded in
NARAYAN CHANGDER
141. Manufacturing Account is prepared to cal-
A. profit and loss account debit side culate
B. profit and loss account credit side A. Cost of capital
C. trading account credit side B. Cost of sales
D. trading account debit side C. Cost of goods sold
136. Which of the following is not a liability? D. Cost of production
A. Finished Stock 142. During 2016, Tor sold goods costing $1,
B. Credit Card Balance 500 to its subsidiary, Rab, at a gross
C. Car Loan profit of 40%. Rab had $200 of these
goods on hand at Dec 31, 2016. What
D. Mortgage
is the journal entry to record purchases of
137. What is the journal entry for the follow- goods at Rab in 2016?
ing:Christian Co. sold $15, 000 in shoes A. Dr. CoGS $1, 500Cr. Inventories $1,
on credit to Posh Co. with the agreement 500
to be paid the following month.
B. Dr. Inventories 2, 500Cr. Cash in Bank
A. Dr. Sales Revenue 15, 000Cr. Ac- 2, 500
counts Payable 15, 000
C. Dr. Cash in Bank $2, 500Cr. Sales $2,
B. Dr Cash 15, 000Cr Account Receivable 500
15000
D. Dr. Inventories 1, 500Cr. Cash in Bank
C. Dr Account Receivable 15000Cr. Sales 1, 500
Revenue 15, 000
E. Inventories $2, 100
D. Dr Cash 15, 000Cr Sales Revenue
143. In which business form is the profit taxed
138. are paid by the consumer when buying
separately from the owners?
most goods and services.
A. Income Tax A. sole proprietorship
B. Equity B. partnership
C. Expenses C. corporation
D. Sales Taxes D. all of the above
139. Premium received on issue of shares is a 144. The account format that displays debits,
revenue profit. credits, balances, and headings.
A. True A. General journal
B. False B. General ledger

C. T-account 148. Original cost minus scrap value is the de-

preciated value of an asset.
D. Ledger account

A. True
145. Which is the last step of accounting as a B. False
process of information?
A. Recording of data in the books of ac- 149. Which of the following describes a trial
counts balance?
A. It is a special account
B. Preparation of summaries in the form
of financial statements B. It is a list of balance in the books
C. Communication of information C. It reveals the financial position of a
business
D. Analysis and interpretation of informa-
tion D. It shows all the entries in the books of
a business
146. Identify the main problems faced by the
150. In theory formulation, it is known as a de-
textile industry.
ductive approach. The deductive approach
A. Erratic power supply is
B. Old and obsolete machinery A. the use of basic assumptions and rules
that will be used to draw logical conclu-
C. Stiff competition from the synthetic fi-
sions from the problem being analyzed
bre industry
B. The development of theory is directed
D. All of these from the abstraction of the unreal world
that exists in the human mind
147. Which of the following is a change in ac-
counting policy in accordance with IAS8 C. relates to how accounting concepts
and practices can influence a person’s be-
A. An entity changes the warranty provi- havior.
sions, based upon more up-to-date infor-
mation about claims frequency and value D. making conclusions that come from
generalizations or phenomena that are
B. An entity previously depreciated vehi- specific (specific)
cles using the reducing balance method
at 40% pa. It now uses the straight-line 151. Which of the following statements con-
method over a period of five years cerning the leading ledger are true?
C. An entity previously charged interest A. It is a type of sub-ledger
incurred in connection with the construc- B. Global accounting principles are con-
tion of tangible non-current assets to the solidated into it
statement of profit or loss. Following
the revision of IAS23 Borrowing Cost, and C. Having a leading ledger is optional
in accordance with the revised require- D. All transaction data are posted to it
ments of that standard, it now capitalizes
this interest 152. From the given items which is not shown
under current liabilities
D. Reducing the value of inventory from
cost to net relisable value due to a valid A. Trade payables
adjusting event after the reporting period. B. Short-term provisions

C. Short-term borrowings A. Purchases Account

D. Inventories B. Sales Account
153. Trade Payable: C. Office equipment Account
A. Your business’ cumulative financial D. Stock Account

holdings. 158. Unearned revenue is reported in the fi-
B. How much you gained or lost on a busi- nancial statements as
ness investment relative to how much you
NARAYAN CHANGDER
A. A liability on the balance sheet
spent on it.
B. An operating activity on the statement
C. How much you owe your suppliers for of cash flows
goods or services supplied to you.
C. An unearned revenue on the income
D. none of above statement
154. It guides how the expenses should be D. An asset on the balance sheet
matched with revenue for determining ex- E. A revenue on the balance sheet
act profit or loss for a particular period.
A. Accrual Concept 159. In petty cash book the credit side is for
B. Matching Concept A. Creditors

B. Debtors
C. Revenue Recognition Concept
C. Analysis columns
D. Going Concern Concept
D. Payment
155. In case of sub division of share capital,
the total number of shares- 160. Rani acquired 70% of Moly on 2, Jan
2018, and the acquisition was made at
A. Increases
book value (no amortizations). During the
B. Decreases current year, Moly reported net income of
C. Doesn’t change $5, 000 and paid dividends of $2, 000.
During 2018, Moly sold goods to Rani for
D. none of above
$1, 200 at a mark-up of 25% and Rani
156. A petty cash fund system where the still had $500 on hand at the end of the
amount of petty cash is set at a certain year. What is the journal entry to record
amount so that the replacement of petty noncontrolling interest in sub’s earnings
cash does not need to be the same as the and dividends?
amount that has been used is a petty cash A. Dr. Noncontrolling interest share $1,
fund system 470Cr. Dividends $600Cr. Noncontrolling
A. Imprest fund system interest $870
B. Fluctuation fund system B. Dr. Investment in Moly $1, 470Cr.
Noncontrolling interest $1, 470
C. Pettycash
C. Dr. Investment in Moly $1, 500Cr.
D. Cash overage Noncontrolling interest $1, 500
157. Which of the following account will be D. Dr. Noncontrolling interest share $3,
credited when a typewriter is sold that has 500Cr. Dividends $1, 400Cr. Noncontrol-
been used in the office? ling interest $2, 100

E. Dr. Noncontrolling interest $1, 500 Cr. A. Issue of shares for Cash
Income from Moly $1, 500
B. Issue of shares for consideration

161. When is the origin of modern accounting? other than cash
A. In 1894 C. Issue of shares for ESOP
B. In 1694 D. None of the Above
C. In 1494
167. Compensation paid to employees who
D. In 1794
are retrenched is Capital expenditure.
162. Large corporations must follow the A. True
basis of accounting.
B. False
A. Cash
B. Accrual 168. Which is the formula for the debt ratio?
163. Which of the following is not an activity A. Total Expenses Total Notes Payable
listed in the statement of cash flows?
B. Total AssetsTotal Liabilities
A. Funding Activities
C. Total Notes PayableTotal Cash
B. Investing Activities
C. Financing Activities D. Total LiabilitiesTotal Assets
D. Operating Activities
169. The total amount of money owed to the
164. Apply the matching principle to determine creditors of a business.
which salary expense would be reported in A. Accounts Payable
May income statement?
B. Accounts Receivable
A. Salary payments in May for work per-
formed by employees in April C. Account Balance
B. Salary payments in May for work per- D. Account Title
formed by employees in May.
C. Salary payments in June for work per- 170. Pre acquisition profit in subsidiary com-
formed by employees in May pany is considered as
D. All of the above A. Capital profit
165. Agreement between partners is con- B. Revenue profit
tained in the partnership
C. Goodwill
A. Act
D. Reserve
B. Deed
C. Accord 171. If a business has a net loss for the pe-
D. Deal riod, expenses should be reported before
revenues on the income statement.
166. When a company issues shares to the
A. True
vendor for the Asset purchase, the issue
is termed as B. False

172. Sold goods worth list price of Rs. 8, 000 B. the economic entity assumptions
at 10% trade discount and 2% cash dis- states that there should be a particular
count. 25% received at the time of trans- unit of accountability
action only. The amount posted to dis- C. the monetary unit assumption enables
count account will be: accounting to measure employee morale
A. Rs. 36 on debit side D. partnerships are not economic entities
B. Rs. 144 on Credit side
176. In the accounts of a manufacturing firm,
NARAYAN CHANGDER
C. Rs. 144 on debit side the cost of direct labour
D. Rs. 40 on credit side A. should be included as part of the prime
cost.
173. The recording of all the sales and pur- B. should be included in factory over-
chases in accounting books in term of Ring- heads.
git Malaysia is in line with the concept of
C. should be included in the Profit and
Loss Account.
A. Historical cost
D. should be divided between the prime
B. Consistency cost and the cost of factory overheads.
C. Materiality 177. When complete sequence of accounting
D. Monetary measurement procedure is done, which happens fre-
quently and repeatedly in same directions
174. Section 24 of FRS 102 deals with govern- then it is called an accounting cycle.
ment grants. Under this section which of A. True
the following statements is correct:
B. False
A. The accruals model only applies to cap-
ital grants 178. Statement showing summary of all the
assets and liabilities of a business is
B. Under the performance model a grant
known as ?
that imposes future performance related
conditions on the entity is recognised in in- A. Journal Book
come only when the performance related B. Ledger Book
condition is met;
C. Trial Balance
C. Under the performance model grants D. Balance Sheet
received before the revenue recognition
criteria are satisfied are recognised as an 179. Cash Sales Recording Journal
asset; A. Sales Journal
D. A grant is recognised in income even B. Purchasing Journal
if there is no reasonable assurances that
conditions on which it is based will be met; C. Cash Receipts Journal
D. Cash Disbursement Journal
175. Which of the following statements about
basic assumptions is correct 180. Regulations can help promote what?
A. basic assumptions are the same as ac- A. Standardization

counting principles B. Honest behavior

C. Both Standardization and Honest be- 185. If equity increases by $10, 000 which of
havior the following can NOT be true:

D. None of the above. A. cash increases by $10, 000
181. Subscriptions in arrears is treated in the B. liabilities decrease by $10, 000
balance sheet as a club as
C. net income was $10, 000 with no con-
A. current liability tributions or distributions
B. intangible assets D. net income was a net loss of $10, 000
C. fictitious asset with no contributions or distributions
D. current assee
186. accounting principles are generally based
182. Resources owned by a company (such as on
cash, trade receivables, vehicles) are re- A. practicability
ported on the statement of financial posi-
tion and are referred to as B. subjectivity
A. Liabilities C. objectivity
B. Assets D. none of above
C. Income
187. Firms must conduct impairment tests
D. Owner’s Equity
more frequently than annually when:
183. Which one of the following would not be A. other shareholders hold more than
valid grounds for a provision? 50% interest.
A. A company has a policy has a policy of
B. a more-likely-than-not expectation ex-
cleaning up any environmental contamina-
ists that a reporting unit will be sold or dis-
tion caused by its operations, but is not
posed of.
legally obliged to do so.
B. A company is leasing an office building C. a specific unit does not have publicly
for which it has no further use. However, traded stock.
it is tied into the lease for another year. D. using the equity method.
C. A company is closing down a division.
The Board has prepared detailed closure 188. Financial analysis is used only by the cred-
plans which have been communicated to itors.
customers and employees. A. True
D. A company has acquired a machine B. False
which requires a major overhaul every
three years. The cost of the first overhaul 189. Which financial statement is prepared us-
is reliably estimated at $120, 000. ing the balance sheet equation?
184. Which accounting that reports to people A. Income statement
within the business organizations (typi-
cally managers)? B. Balance Sheet Statement
A. Managerial Accounting C. Cash Flow Statement
B. Financial Accounting D. Retained Earnings Statement

190. If the average variable costs $10, aver- 195. Accounting polies used differently in a
age selling price is $25 and fixed costs are particular industry refers to which con-
$60, 000, then what is the break-even straint?
output? A. cost benefit
A. 5000 B. materiality
B. 7000 C. conservatism
C. 6000 D. industry practice
NARAYAN CHANGDER
D. 4000 196. Describe the process of closing the books
in double-entry accounting.
191. in a manufacturing account, prime cost
comprises three cost:direct materials, di- A. Adding up all the transactions for the
rect labour and production overheads year
B. Transferring balances of temporary ac-
A. True
counts to retained earnings and resetting
B. False temporary account balances to zero
C. Closing the physical books and storing
192. The process of recording financial transac-
them away
tions:Collect and verify source documents
Journalize transactions Post journal trans- D. Transferring balances of permanent
actions to ledger Prepare a trial bal- accounts to retained earnings
ance Prepare financial statements Prepare,
197. Accounting has a long history, including:
journalize, and post closing entries Pre-
pare the post-closing trial balance A. 1494:Luca Pacioli tentang doble entry
bookkeeping system (Italia)
A. Accounting Cycle
B. 1543:Pacioli’s works are anglicized
B. Journalizing
C. 1909:development of batteries to the
C. Trial Balance U.S.; introduction of income tax in the US
D. Wash Cycle D. 1940:historical cost-based accounting,
this basis receives its ultimate expression
193. Income and Expenditure account is in Paton & Littleton’s famous monograph,
A. Personal Account Introduction to the Corporate Accounting
Standard
B. Nominal Account
E. 1945 August, Indonesia became inde-
C. Real Account pendent
D. none of above 198. A specialized field of accounting con-
cerned mainly with the recording and re-
194. All of the following are ways to earn
porting of financial data and activities to
money as a stockholder except:
users to facilitate making decisions.
A. Getting dividends A. Taxation
B. Selling the stock at a higher value B. Audit
C. Stock splits C. Management Accounting
D. Selling the stock at a lower value D. Financial Accounting

199. Trial balance shows B. Limited to the amount which the mem-
A. Only debit balance bers undertake to contribute to the event
of the winding-up of the company.

B. Only credit balance
C. Unlimited
C. Both credit and debit balance
D. Limited to the extent paid on the
D. None of the above shares held by them.
200. Some parties involved in a transaction 204. In the balance sheet of a social club, sub-
may have information advantages over scription owing is treated as a
others, characterized by: A. current liability
A. difficult/unfavorable selection (ad- B. current asset
verse selection)
C. tangible assets
B. behavioral deviation (moral hazard).
D. long-term liability
C. Increase our understanding of the ac-
counting environment 205. Royalty account is a nominal account in
nature.
D. Accounting theory is based on funda-
mental research so that improvements in A. True
disclosure are based on investor decision B. False
making theory and capital market theory
206. Ascertain purchases from the follow-
E. Fundamental research using agency
ing:Cost of goods sold 80700Opening
theory models has improved our under-
stock 5800Closing stock 6000
standing of managers’ interests in finan-
cial reporting A. 80900
B. 60900
201. Interest is charged on the amount
C. 50900
A. Outstanding
D. none of above
B. Part
207. Credit notes that are sent to customer as
C. None of these
result of prompt payment discount will be
D. none of above entered into
202. Reflect the using up of assets that result A. Discount receive day book
in a decrease in equity B. Discount allowed day book
A. Revenue C. Sales day book
B. Sales D. Purchase day book
C. Owner’s Equity 208. Which account is on the Statement of
D. Expenses Changes in Equity
A. Revenue
203. In the case of unlimited companies, the
liability of members is B. Cash
A. Limited to the extent unpaid on the C. Loan

shares held by them. D. M. Smith, capital

209. Accounting standards are 213. Historical cost less accumulated deprecia-
tion is referred to as:
A. consensus on recording economic re-
sources, liabilities, capital, results, costs A. Net book value
and changes thereto in the form of finan- B. Fair market value
cial reports
C. Depreciable cost
B. document transactions that must be
D. Loss on sale
recorded, disclosed and presented in the
Financial Report 214. The Matching Concept states that rev-
NARAYAN CHANGDER
C. useful approach to decision- enue should only be recognised when it
usefulness is earned and not received. If a company
sells goods on credit in March and receives
D. all true payment in May, this would be shown in
the sales figure for?
210. Payment of rupees 6000 as wages to
workers for installation of machine should A. The month the goods were sold.
be debited to B. The month the goods were produced.
A. Wedges account C. The month the cash is creceived from
the customer.
B. Repairs account
D. None of the above.
C. Machinery account
215. Costs that are not added to the purchase
D. none of above
price of fixed assets in connection with ef-
211. Bank reconciliation forts to place said fixed assets in a place
and condition that is ready for use are
A. helps with internal control
A. value-added tax
B. is conducted by multiple people in a B. Freight Costs
company
C. Installation costs
C. reduces the amount of cash on hand
D. Advertising Costs
D. controls cash payments
216. Depreciation is a charge against profit.
212. A partnership in liquidation has converted A. True
all assets into cash and paid all liabilities.
B. False
The order of payment
217. Choose the correct option
A.
B.
C. A. $4, 500
B. $3, 950
C. $4, 200
D.
D. $2, 700

218. Send bills to collect money from cus- 223. Opening statement of affairs is usually
tomers for unpaid service fees. You can prepared to find out the
save your account by

A. Capital in the beginning of the year
A. Debit payable, credit cash
B. Capital at the end of the year
B. Debit cash, credit creditor
C. Profit made during the year
C. Debit Accounts Receivable, Credit
Cash D. Loss occurred during the year
D. Debit accounts receivable, credit ser- 224. Users of accounting information are:
vice income
A. external users
219. Journal entry will be made when the pre-
B. subsidiary users
mium amount is payable on allotment-
C. external and internal users
A. Share Allotment A/c Dr.Securities
Prem. A/c Dr.To Share Capital A/c D. Internal users
B. Share Allotment A/C Dr.To Share Capi-
225. Revenue = 1000Cost of Goods Sold =
tal A/c To Securities Prem. A/c
200Expenses = 300Gross Profit =?
C. Bank A/c Dr.To Share Capital A/c To
A. 800
Securities Prem. A/c
D. Share Allotment A/c Dr.Securities B. 500
Prem. A/c Dr.To Bank A/c C. 700
220. Which branch of accounting is less regu- D. 300
lated?
226. On January 2 2011, ABC company pur-
A. Audit chased a machine for Rp. 100, 000, 000
B. Tax accounting with an economic life of 4 years. The ma-
C. Managerial accounting chine has no residual value. What is the
book value at the end of 2012 using the
D. Financial accounting double declining balance method?
221. The internal users of accounting informa- A. Rp. 12.500.000
tion are:Pick at least two options
B. Rp. 25.000.000
A. Employees
C. Rp. 50.000.000
B. Employers
D. Rp. 6.250.000
C. Loan creditors
E. Rp. 75.000.000
D. Competitors
222. Perpetual Inventory system is a 227. Under hire purchase system the buyer is
count of all inventory in a corporation. called
A. continuous A. Buyer
B. hand count B. Hirer
C. one time per year C. Hire Vendor
D. end of fiscal period D. Debtor

228. During 2018, Jack sold goods costing 233. unearned income a/c is
$400 to its subsidiary, Chan, at a mark-up
of 25%. Chan had $100 of these goods on A. asset
hand at Dec 31, 2018. What is the elim- B. liability
ination worksheet entry to defer profit in
ending inventory? C. expense
A. Dr. Sales $20Cr. Cost of sales $20 D. accrued income
B. Dr. Sales $25Cr. Cost of sales $25
NARAYAN CHANGDER
C. Dr. Cost of sales $20Cr. Inventory $20 234. Voyage A/c (Sea Travel Account) is-
D. Dr. Inventory $25Cr. Cost of sales $25 A. real account
E. Dr. Sales $25Cr. Cost of sales $25
B. nominal ledger
229. Under the equity method, the investor
records dividendsreceived by crediting: C. personal account
A. Dividend Revenue. D. None of these

B. Investment Income.
235. Which basic journal is used to record spe-
C. Revenue from Investment.
cific basic transactions?
D. Stock Investments.
A. general journal
230. A company is a going concern if
A. its balance sheet shows a strong finan- B. Special journal
cial position C. General ledger
B. its income statement for the current
year shows huge profit D. All correct.
C. there is no evidence that it will or will

236. A is a copy of the bank’s customer’s
have to cease operations within foresee-
account in the books of the bank.
able future
D. it is a public limited company A. Cash Book
231. The main revenue generating activity of B. Bank Reconciliation Statement

the company is
C. Bank Statement
A. Operational Activities
B. Sales Activities D. none of above
C. Funding Activities
237. The main objective of financial reporting
D. Investment Activities is to provide information
232. Converting Assets to Expenses What A. to government departments
would be the effect on liabilities?
A. Liabilities would increase B. about the profitability of the business
B. Liabilities would remain constant C. useful for making investment and lend-
C. LIabilities would decrease ing decisions
D. None of the above D. regarding sources and uses of cash

238. Which branch of accounting deals with C. Floor area of each machine
the calculate the profit or loss of a busi- D. Rent rate of each machine
ness during a period and to provide an ac-

curate picture of the financial position of 243. How do creditors utilize financial account-
the business as on a particular date to in- ing information?
vestors or banks? A. To determine the company’s employee
A. Auditing benefits
B. Cost accounting B. To provide marketing strategies for
C. Financial Accounting the company
C. To assess the financial health and
D. Management accounting
creditworthiness of a company, make
E. Tax accounting lending decisions, and determine the
terms of credit extended to the company.
239. A system of accounting which Is not
based on double entry system is called D. To assess the company’s environmen-
tal impact
A. Cash system
B. Mahajani system of accounting 244. The value of this assets diminishes with
the passage of time
C. Incomplete accounting system
A. Fixed asset
D. Non of these
B. Current asset
240. The statement that provides information C. Wasting asset
on the financial position of the entity.
D. Fictitious asset
A. Statement of Cash Flows
B. Statement of Profit and Loss 245. A balance sheet reports financial informa-
tion on a specific date and includes the as-
C. Statement of Financial Position sets, liabilities, and owner’s equity.
D. Statement of Comprehensive Income A. True
241. How do calculate a company’s Net Sales? B. False
A. Sales Discounts-(Sales) + Sales Re- 246. Who is Father of Accounting?
turns & Allowances)
A. Luca Pacioli
B. Sales Returns & Allowances-Sales Dis-
B. Lewis Pacioli
counts + Sales
C. J.R. Batliboi
C. Sales-(Sales Discounts + Sales Re-
turns & Allowances) D. None
D. Sales Returns & Allowances-(Sales 247. Efficiency ratios highlights:
Discounts + Sales)
A. How well assets and liabilities are
242. Repairs to machinery is apportioned over managed
the departments on the basis of B. Measures how quickly assets can be
A. Number of machines in each depart- converted to cash
ment C. Share of ownership in a company
B. Value of machine D. A comparison of two amounts

248. On January 1, Jack Company purchased C. Generally accepted accounting prac-

a 40 percent interest in Pur Company tices (GAAP)
for $350, 000. On this date, the book D. disclosure principle
value of Pur’s stockholders’ equity was
$500, 000. Pur reported net income of 252. (l) :a list of goods sent or services
$200, 000 and paid no dividends. Jack ac- provided, with a statement of the sum due
counts for this investment using the equity for these; as a bill.
method. In its December 31 balance sheet,
A. Debit advice
what amount should Jack report for this
NARAYAN CHANGDER
investment? B. Credit advice
A. $410, 000 C. Receipt
B. $420, 000 D. Invoice
C. $470, 000 E. Quotation
D. $430, 000 253. Means transactions or entries of one na-
ture are grouped under one head of ac-
249. What is the example of information that
count.
a managerial accountant will share to the
decision makers to help them making deci- A. Summarizing
sion? B. Journalizing
A. The past financial performance C. Recording
B. The company’s profits reported sev- D. Classifying
eral years ago
C. The anticipated profits or losses from 254. Step 5 in the Accounting Cycle
a decision to be made A. closing entries
D. The name of the company B. trial balance
250. WHAT STATEMENT OF FINANCIAL POSI- C. adjusted trial balance
TION IS PREPARED AT THE DATE OF TRAN- D. source documents
SITION TO PFRS FOR SME?
255. Which attributes are presented in the FI
A. ORIGINATING STATEMENT OF FINAN-
document items?
CIAL POSITION
A. Amount
B. CLOSING STATEMENT OF FINANCIAL
POSITION B. Document type
C. OPENING STATEMENT OF FINANCIAL C. Posting date
POSITION D. Currency
D. PROVISIONAL STATEMENT OF FINAN- E. Posting key
CIAL POSITION
256. Cash book is journal as well as
251. common set of accounting rules and proce-
dures; needed in accounting to maintain ac- A. Cash A/c
curacy and consistency of financial reports B. Ledger
A. IRS laws C. Journal
B. financial reporting D. Journal & Ledger

257. Sale of goods to X will be debited to? 263. The business combination that ultimately
A. cash a/c result in the new company is called:

A. Acquisition
B. sales a/c
B. Merger
C. X a/c
C. Consolidation
D. none of these
258. A amount will appear on the left side
264. What are the different types of accounts
of a T-account.
used in double-entry accounting?
A. Credit
A. Income, Expenditure, Profit
B. Debit B. Assets, Liabilities, Equity, Revenue, Ex-
259. Income Statement, Statement of Finan- penses
cial Position, and Statement of Cash C. Cash, Check, Savings
Flows. D. Debits, Credits, Balances
A. Books of Accounts
265. Which is not an expense on the income
B. Accounting Equation statement of a sole proprietorship?
C. Financial Statements A. depreciation
D. Financial Accounting B. owner’s drawing
C. advertising
260. Policies and procedures companies follow
to safeguard their assets. D. all of the above
A. Controls 266. Sales discounts with terms 2/10, n/30
B. Hoarding assets mean:
A. 10 percent discount for payment
C. Safeguarding
within 30 days
D. none of above
B. 2 percent discount for payment within
261. Define the chart of accounts. Overdraft 10 days or the full amount (less returns)
due within 30 days
A. No. 101
C. two-tenths of a percent discount for
B. No. 1101 payment within 30 days
C. No. 2101 D. none of the above
D. No. 1201 267. What is the definition of financial account-
262. If any kind of error is made in preparing ing?
a check, A. The process of analyzing stock market
trends
A. VOID should be written on the check.
B. The process of recording, summariz-
B. VOID should be written on the check
ing, and reporting the transactions of a
stub.
business for external users.
C. a new check should be prepared. C. The process of marketing financial
D. all of the above. products to consumers

D. The process of managing internal fi- 272. What is the purpose of a Purchase
nances within a business Ledger?
A. To record all cash and bank transac-
268. Explain the concept of ‘matching princi-
tions
ple’ in financial accounting.
B. To keep track of all sales and revenue
A. Expenses should be recognized in a dif-
ferent period than the revenues to which C. To record all purchase invoices
they relate. D. To contain all impersonal accounts
NARAYAN CHANGDER
B. Matching principle is not important in
273. What is a cashbook?
financial accounting.
A. A statement prepared by a bank and
C. Matching principle only applies to non- sent to a current account holder
operating expenses.
B. A statement prepared by a business
D. Expenses should be recognized in the owner to show monthly bank transactions
same period as the revenues to which
they relate. C. A statement prepared by a bank to
show business profits
269. The owner withdraws cash from the busi- D. A prime entry showing actual
ness for personal use. Owner’s Equity will cash/cheque received and paid on a daily
basis
A. Increase
274. Del credere commission is calculated on:
B. Decrease A. cash sales only
C. No Effect B. credit sales only
D. none of above C. total of both cash and credit sales
270. John & Co sold an item of used machinery D. cost price of goods sold
at $5000.What will be the effect on finan-
275. All the following accounts follow the prin-
cial statements?1. Sales will increase by
ciple of double entry except
$5000 2. Profit will increase by $5000
3. Non-Current assets will decrease by A. Trading account
$5000 B. Balance sheet
A. 1 & 2 C. Cash book
B. 1 & 3 D. Sales account
C. 3 only 276. If the month-end bank statement shows
D. 1, 2 & 3 a balance of $58, 000, outstanding checks
are $15, 000, a deposit of $7, 000 was
271. Which of the following is an assets? in transit at month end, and a check for
A. Bad debt provision $600 was erroneously charged by the
bank against the account, the correct bal-
B. Rent in arrears ance in the bank account at month end is
C. Sales A. $49, 400.
D. Insurance prepaid B. $50, 000.

C. $50, 600. 283. Credit purchase of Plant & Machinery will

D. $65, 400. be recorded in

A. Purchase Book
277. bad debts will be recorded in
B. Sales Book
A. trading account credit side
C. Journal Proper
B. profit and loss account debit side
D. Cash Book
C. balancesheet liablity side
284. Profit or loss made on sale of old assets
D. profit and loss account credit side
is recorded in
278. Number Processing Program A. Income and Expenditure account
A. Microsoft Access B. Receipts and payments account
B. Microsoft Word C. Balance sheet
C. Microsoft Excel D. Trading account
D. Microsoft Publisher 285. Given the following data:Net Sales of
P160, 000; Sales returns of P15, 000;
279. The is the that guides external
Cost of Goods available for sale of 120,
rules of a company
000; Purchase returns of P20, 000. How
A. articles of association much is the cost of goods sold if Gross
B. memorandum of association profit is 30% of Net Sales.
C. certificate of agreement A. P112, 000
D. document B. P48, 000
C. P101, 500
280. A decrease in Notes Payable is recorded
by a entry in the account. D. Impossible to determine
A. Debit 286. Which of the following is related to Sci-

B. Credit entific system of maintaining account?
A. single entry
281. The value of assets received or receivable
B. double entry
as result of selling goods or services to cus-
tomers is called: C. contra entry
A. Revenue D. book entry
B. Expenses 287. Which of the following material events
C. Partnership after the reporting period and before the
financial statements are approved by the
D. Accounts receivable
directors should be adjusted for in those
282. Honour of a Bill means that the acceptor financial statements? 1-A valuation of
refuses to honour his commitment on due property providing evidence of impairment
date and for this, payment of the bill on in value at the reporting period 2-Sale of
presentation does not take place. inventory held at the end of the reporting
period for less than cost 3-Discovery of
A. True fraud or error affecting the financial state-
B. False ments 4-The insolvency of a customer with

a debt owing at the end of the reporting 292. The person who supplies goods to the
period which is still outstanding business is of the business
A. All of them A. Debtor
B. 1, 2 and 4 only B. Creditor
C. 3 and 4 only C. Customer
D. 1, 2 and 3 only D. Partner
NARAYAN CHANGDER
288. Switching accounting principles every 293. account is credited when application
year would violate the money is transferred
A. Share Capital
A. money measurement principle
B. Share Application Account
B. consistency principle
C. None of the Above
289. Net income was $850, 000. Beginning D. Any of the Above
and ending assets were $8, 500, 000 and
$9, 600, 000, respectively. What was the 294. Assets = Liabilities + Owner’s Equity
return on assets (ROA)?
A. Financial Accounting
A. 9.39% B. Accounting Concept
B. 10.59% C. Accounting Equation
C. 9.94% D. Financial Statements
D. 10.41%
295. Financial accounting:
290. The current ratio is also known as the: A. focuses on the future and includes ac-
A. Quick ratio tivities such as preparing next year’s op-
erating budget
B. Working capital ratio
B. must comply with GAAP (generally ac-
C. Cash flow ratio cepted accounting principles)
D. Capital structure ratio C. reports include detailed information
on the various operating segments of the
291. An entity purchased a property 10 years business such asproduct lines or depart-
ago at a cost of $200, 000 and have been ments
depreciating it at a rate of 2.5% per an-
D. is prepared for the use of department
num, on the straight-line basis. The en-
heads and other employees
tity have had the property professionally
revalued at $250, 000What is the annual 296. Find the term to match the meaning be-
depreciation after the revaluation in re- low:The result of subtracting cost of sales
spect of this property from the net sales revenue
A. 5000 A. Gross profit
B. 6250 B. Profit for the year
C. 3750 C. Net sales
D. Other D. Expenses

297. Realisation Account is a 303. Income received in advance is shown in

balance sheet as
A. Real Account

A. Current Assets
B. Personal Account
B. Current Liability
C. Nominal Account
C. Intangible assets
D. Long term liability
298. Select two or more correct options:These 304. Assume that Horicon Corp. acquired 25%
are the important ledger accounts in the of the common stock of Sheboygan Corp.
books of Consignor on January 1, 2017, for $300, 000. Dur-
A. Consignment Account ing 2017, Sheboygan Corp. reported net
income of $160, 000 and paid total divi-
B. Consignee Account dends of $60, 000. If Horicon uses the eq-
C. B/R Account uity method to account for its investment,
the balance in the investment account on
D. Bad Debts Account
December 31, 2017, will be:
299. What will usually cause the liability ac- A. $300, 000.
count Accounts Payable to increase? B. $325, 000.
A. Debit C. $400, 000.
B. Credit D. $340, 000.
300. Financial statements report the fair mar- 305. The account that reflects interest accrued
ket value of a company. on business debts.
A. True A. Interest Payable

B. Liabilities
B. False
C. Note Payable
301. Capital account is D. Expense
A. Real Account
306. Which of the following elements of a
B. Nominal Account manufacturing account matches the defini-
tion below:Fees that must be paid to other
C. Personal Account
persons for the right to produce their prod-
D. Impersonal Account ucts or to use their processes.
A. Direct expenses
302. describes a company’s revenues and
expenses along with the resulting net B. Royalties
profit or loss over a period of time due to C. Hire of specialist equipment
earnings activities.
D. Prime cost
A. Revenue
307. Allowance for Doubtful Accounts is clas-
B. Balance sheet sified as
C. Income Statement A. Asset
D. Statement of cash flows B. Current Asset

C. Against the Asset B. The discovery of a fraud which had oc-

D. Fixed Asset curred during the year
C. The determination of the sale pro-
308. The meaning of monetary unit assump-
ceeds of an item of plant sold before the
tion is
year end
A. the company will have a long life
D. The destruction of a factory by fire
B. the company can divide its economic
activities into artificial time periods
NARAYAN CHANGDER
313. A manufacturing account records the ad-
C. the common denominator of economic ministrative expenses and the finance ex-
activity and provides an appropriate basis penses of the business
for accounting measurement and analysis
A. TRUE
D. economic activity can be identified
with a particular unit of accountability B. FALSE
309. The modern system of Accounting owes 314. Identify the type of expenditure. Cost of
to installing a new machine
A. AICPA A. Capital
B. Luca pacioli
B. Revenue
C. GAAP
D. None of these 315. In accounting, everything is recorded in
terms of money.
310. The book of original entry
A. Business Entity
A. Journal
B. Dual Aspect
B. Subsidiary book
C. trial balance C. Money Measurement
D. ledger D. Periodicity Concept
311. Which assets are depreciated? 316. Accounts Payable

A. Current assets A. Current Asset
B. Variable assets
B. Fixed Asset
C. Fixed assets
C. Current Liability
D. Cash-back assets
D. Owner’s Equity
312. Which TWO of the following events
which occur after the reporting date of 317. The sources of money generated by the
a company but before the financial state- sale of products or services.
ments are authorized for issue are classi-
fied as adjusting events in accordance with A. Revenue
IAS 10 Events afterthe reporting period? B. Expenses
A. A change in tax rate announced after
C. Net Income
the reporting date, but affecting the cur-
rent tax liability D. Net Loss

318. The cost of a tape dispenser has been 323. The timeliness principle assumes that an
charged to an expense account although it organization’s activities can be divided
will still be in use in 10 years time. Which into specific periods.

accounting concept is being applied? A. True
A. materiality concept
B. False
B. prudence concept
C. going concern concept 324. The long term assets that have no physi-
cal existence but are rights that have value
D. accrual concept is known as
319. Under hire purchase system the initial A. Current assets
payment is known as
B. Fixed assets
A. First instalment
B. Down payment
D. Investments
C. Purchase price
D. Hire charges 325. When a company pays a bill, the account
Cash will be
320. In which year were the first 14 banks na-
A. Debited
tionalized in India?
B. Credited
A. 1949
B. 1980 326. According to the FASB conceptual frame-
C. 1969 work, the objectives of financial reporting
for business enterprises are based on?
D. 1955
A. Generally accepted accounting princi-
321. Which of the following would normally ples
NOT be found in the notes to the financial
B. Reporting on management’s steward-
statements?
ship
A. accounting rules applied in the com-
pany’s financial statements C. The need for conservatism
B. additional detail supporting numbers D. The needs of the users of the informa-
reported in the company’s financial state- tion
ments
327. The purpose of trading account is to as-
C. relevant financial information not pre- certain
sented in the company’s financial state-
A. Gross profit
ments
B. Gross loss
D. all of the above would be found in the
notes to the financial statements C. Gross profit/loss
322. Departments are located in D. Net profit/loss

A. same place 328. Adjusting entries are made at the begin-
B. Outside the city ning of the accounting period.
C. another city A. True
D. Foreign country B. False

329. Which is a current asset? $700.2 A contra with a supplier in the pur-
A. land chases ledger of $200 had only been en-
tered in the sales ledger control account.3
B. computer The discount allowed column in the cash
C. bank deposit book totalled $500. This had not been
D. car posted to the nominal ledger.What was
the correct balance on the sales ledger con-
330. Amount owed by a business trol account?
NARAYAN CHANGDER
A. liability A. $11 200
B. asset B. $11 400
C. capital C. $12 000
D. account D. $12 400
331. Which of the following is nominal account 335. The Financial Reporting Standards Coun-
A. Outstanding interest account cil (FRSC) was created by the BOA to as-
sist the BoA in carrying out its power and
B. Prepaid interest account function to
C. Accrued Interest account A. Promulgate accounting standards in
D. Interest Account the Philippines.
B. Promulgate auditing standards in the
332. It involves using financial data to assess
Philippines.
a company’s performance and make recom-
mendations about how it can improve go- C. Ensure that all higher educational in-
ing forward struction and offering of accountancy
comply with the policies, standards and
A. FINANCIAL REPORTING
requirements of the course prescribed by
B. FINANCIAL ANALYSIS CHED.
333. Find the term to match the meaning be- D. Implement the CPE program
low:Total value of inventory returned to
336. Who are the primary users of financial
suppliers by the business, (e.g. when the
accounting information?
wrong goods are delivered by the supplier
or a greater quantity than ordered is deliv- A. Investors, creditors, government
ered) agencies, and management
A. Carriage in B. Athletes, coaches, and fans
B. Purchase returns C. Students, teachers, and parents
C. Sales returns D. Doctors, nurses, and patients
D. Carriage out 337. Provision for Doubtful Debts is calculated
334. At the end of the year, the balance on on
a firm’s sales ledger control account was A. Creditors
$12 900. The total of the customers’ ac- B. Debtors
counts in sales ledger was $11 900.The
following errors were then discovered.1 A C. Capital
customer’s account had been undercast by D. Profit

338. Which of these best describes fixed as- C. operating cycle

sets?
D. closing cycle

A. Are items which will not wear out
quickly E. natural business year
B. Are expensive items bought for the 344. Identify the type of expenditure. Trans-
business portation costs on purchases
C. Are bought to be used in the business A. Capital
D. Are of long life and are not bought
B. Revenue
specifically for resale
339. Current Assests 345. Short workings irrecoverable are trans-

ferred to
A. Cash
A. Profit and loss a/c
B. Inventory
C. Other receivables B. Minimum Rent a/c
D. Buildings C. Royalty a/c
340. Main users of financial accounting D. Land Lord a/c
A. Owner manager 346. The cost of a small calculator is accounted

B. Creditors as an expense and not shown as an asset
in financial statement of a business entity
C. Investors
due to
D. Buyers
A. expense recognition
341. A business purchases equipment cash. In
B. monetary measurement
which account is the debit entry made?
C. historical cost
A. Cash
B. Equipment D. materiality
342. Which of the following is an example of 347. Capital Receipts and Payments appear in
accrued expenses?
A. Trading Account
A. Wages payable
B. Profit and Loss Account
B. Income tax payable
C. Balance Sheet
C. Revenue payable
D. All
D. Prepaid expenses
343. The eight recurring steps performed each 348. Subject to a higher income tax rate and
accounting period, starting with recording has limited powers.
transaction in the journal and continuing A. Partnership
through the post-closing trial balance is
called the B. Corporation
A. accounting period C. Sole Proprietorship
B. accounting cycle D. none of above

349. Choose the correct option 354. Which of the following should be charged
as an expense in the profit and loss ac-
count of a manufacturing firm?
A. Office rent.
B. Work in progress.
C. Direct material costs.
D. Carriage charged on raw materials
NARAYAN CHANGDER
A. Internal user purchased.
B. External user
355. A credit to an asset account increases the
350. Sales deduct Cost of sales = balance.
A. Net profit/ (loss) A. True
B. Gross profit B. False
C. Gross (loss)/ Profit
356. Interest on Drawings is to drawings
D. Marginal loss and deducted from capital
351. Royalty account is a real account in na- A. deducted
ture.
B. added
A. True
C. simplified
B. False
D. none
352. Define the term ‘depreciation’ in account-
ing. 357. Explain the concept of goodwill in ac-
counting.
A. The process of recording revenue from
the sale of an asset A. Goodwill is the total revenue gener-
B. Allocation of the cost of a tangible as- ated by a business in a year
set over its useful life B. Goodwill is the amount of money a
C. The increase in value of an asset over business has in its bank account
time C. Goodwill is the value of a business’s
D. Selling an asset at a higher price than physical assets such as buildings and
its original cost equipment
353. Which of the following errors is not dis- D. Goodwill represents the value of a
closed in the trial balance? business’s reputation, customer base,
and other intangible assets.
A. entries made to wrong side of the each
account 358. From an investor’s point of view, a liqui-
B. transactions omitted entirely or put in dating dividend from an investee is:
twice A. a dividend declared by the investee in
C. a transaction posted to only one ac- excess of its earnings in current year.
count B. a dividend declared by the investee in
D. entries made in the wrong account but excess of its earnings since acquisition by
on the correct side. the investor.

C. any dividend declared by the investee B. have been recorded by the bank but
since acquisition. not yet by the company.

D. a dividend declared by the investee C. have not been recorded by the bank or
in excess of the investee’s retained earn- the company.
ings. D. are checks from customers which have
359. A receipt of $15, 700 cash from a cus- not yet been received by the company.
tomer as a payment on account was incor- 363. Though financial statements are useful,
rectly credit to service revenue. Which is they are limited because
the effect of this error on the company’s
financial statements? A. reports are based on current market
value
A. Assets are understated by $31, 400
and liabilities are understated by $31, B. they do not use estimates
400. C. non-financial success factors cannot
B. Assets are overstated by $15, 700 and be measured and reported monetarily
owners’ equity is overstated by $15, 700. D. there are no standards for reporting
C. Assets are overstated by $31, 400 and the economic events of a business
owners’ equity is overstated by $31, 400.
364. What is Cash book?
D. Assets are understated by $15, 700 A. reording sales information
and owners’ equity is understated by $15,
700. B. Recording all cash transaction
E. Assets are understated by $15, 700 C. Recording three column, single, dou-
and liabilities are understated by $15, ble
700. D. ledger
360. Under hire purchase system buyer be- 365. Three factors that contribute to fraudu-
comes the owner lent activity, except
A. On payment of down payment A. Opportunity
B. After receipts of goods B. Financial Pressure
C. On payment of last instalment C. Rationalization
D. On payment of first instalment D. Integrity
361. In closing entries, there are several ac- 366. Define the chart of accounts for cash.
counts that are not closed, except
A. No. 101
A. all asset accounts
B. No. 1101
B. all liability accounts C. No. 2101
C. all revenue account D. No. 1201
D. owner’s capital accounts
367. Goods and Services are Transferred from
362. Deposits in transit one department to another department is
A. have been recorded on the company’s known as
books but not yet by the bank. A. Intra Department Transfer

B. Inside Department Transfer 374. Records revenue before payment is re-

C. Department Transfer ceived
D. Inter Department Transfer A. Accrual Accounting
B. Cash Accounting
368. Reports that summarize changes that re-
sult from business transactions during an 375. Management accounting, or controlling
accounting period. (CO), is intended primarily for audiences
A. trial balance outside the organization
NARAYAN CHANGDER
B. general ledger A. True
C. financial statements B. False
D. journal 376. The remaining equipment is IDR 500,

000, in the Trial Balance there is an Equip-
369. Work in progress is the: ment account IDR 800, 000
A. sales less cost of goods sold A. Supplies (D) Rp. 300, 000 Supplies Ex-
B. sales plus cost of goods sold pense (K) Rp. 300, 000
C. value of finished goods on hand B. Supplies Expense (D) 500, 000 Sup-
D. value of partly finished goods plies (K) Rp. 500, 000
C. Supplies (D) Rp. 500, 000 Supplies Ex-
370. A disbursement journal is a summary of pense (K) Rp. 500, 000
A. All daily transactions D. Supplies Expense (D) Rp. 300, 000 Sup-
B. Refunds plies (K) Rp. 300, 000
C. Patient receipts 377. There is no difference between instal-
D. Accounts paid out ment purchase and credit sale
371. In case of Hire Purchase ownership A. False
passes at the time of sale. B. True
A. True 378. Which of the following accounts would
B. False NOT appear in a closing entry?
372. Carriage outwards account will appear on A. salary expense
the B. interest income
A. debit side of trading account C. accumulated depreciation
B. credit side of trading account D. retained earnings
C. debit side of profit and loss account 379. The transfer of goods between depart-
D. credit side of profit and loss account ment is recorded by debiting
373. Receipts or increases in cash A. the receiving department and crediting

the giving department
A. Source
B. the giving department and crediting
B. Use the crediting the receiving department
C. WT$ C. Stock account and crediting Trading ac-
D. Liability count

D. Trading account and crediting pur- kg @ Rp. 3, 750 Sales II 2, 500 kg If us-
chases account ing the FIFO method, the ending inventory
value is

380. Allocation of costs obtained from natural
A. Rp 7.500.000
sources during certain resource utilization
periods, namely B. Rp 8.200.500
A. Depreciation C. Rp 8.500.170
D. Rp 9.250.000
B. Amortization
C. Depletion 385. is the discount received from suppli-
ers for prompt payment of our accounts
D. Acquisition cost
A. Discount allowed
E. Goodwill
B. Discount received
381. Lona wants to a buy raincoat for her goat. C. Sales
If the raincoat costs $39.99 and has a D. Creditor
sales tax rate of 7%. What will be the
FINAL PRICE (with tax) of the raincoat? 386. governed by the Civil Code of the Philip-
pines.
A. $42.79
A. Sole Proprietorship
B. $42.78
B. Partnership
C. $2.80
C. Corporation
D. $2.79 D. none of above
382. are non-cash expenses that are cre- 387. Which of the following is not included in
ated by accountants to spread out the cost faithful representation?
of capital assets.
A. Free from error
A. Depreciation B. Free from fraud
B. Interest C. Free from Bias
C. Provisions D. Completeness
D. none of above 388. Capital can be acquired to start a busi-
ness from:
383. Terms for when payments for merchan-
dise to be made, agreed on by buyer and A. Personal Savings
seller. B. Business Loans
A. Invoice C. Investments
B. Credit Terms D. All of the above
C. Credit Period 389. What is the equation for the fundamental
D. Sales Discount accounting identity?
A. Assets = Liabilities-Equity
384. Pay attention to the following
B. Assets + Equity = Liabilities
data:Beginning inventory 1, 000 kg @
Rp. 3, 000 Purchase I 5, 000 kg @ Rp. 3, C. Liabilities + Equity = Assets
500 Sales I 3, 000 kg Purchase II 2, 000 D. none of above

390. Creditor may be types 395. Which accounting standard relevant to

A. 3 group accounting specifically requires dis-
closures that enable users to evaluate the
B. 2 financial effects of adjustments recognized
C. 4 in the current reporting period that relate
D. 5 to acquisition that occurred in the current
or previous reporting periods?
391. A cost center:
A. IFRS 1
NARAYAN CHANGDER
A. Absorbs costs
B. IFRS 3
B. Can be associated with a department
C. Is similar to a cost object C. IFRS 5
D. Is associated with locations where D. IFRS 12
costs are incurred
396. The average clause is applicable when the
392. Department accounts are prepared to actual loss is less than the sum assured.
know the
A. True
A. efficiency of the department
B. False
B. Profit made
C. Performance of department 397. Maximum amount Share Capital that a
D. All of the above company can raise will be stated in the
of Memorandum of Association
393. How to restore public trust in financial re-
A. Object Clause
ports (due to cases:Enron & Worldcom)
A. Must behave ethically:Do everything B. Association Clause
right C. Capital Clause
B. Accountants must behave with in- D. Liability Clause
tegrity and independence in placing the
public interest above the interests of em- 398. Non-Current Assets
ployees and clients which may conflict
A. Prepaid Expenses
C. There must be full disclosure in the
disclosure of the entity’s financial state- B. Long Term Investments
ments C. Cash Equivalents
D. Must behave cooperatively and comply D. Equipment
with rules and laws in disclosing the en-
tity’s financial statements 399. The accounting book that controls the bal-
E. Must act according to behavior that is ance of every ledger account. It is used
currently viral to record changes in assets, liabilities, and
owner’s equity. Which account book is it?
394. Types of business
A. general journal
A. 3
B. 4 B. General ledger
C. 5 C. Sub-ledger
D. 6 D. Special journal

400. At the beginning of the year, an entity 404. What sales price should be recorded
provided the following in connection with when an item having a P90, 000 list
a defined benefit plan: price is sold with 15% trade discount?

The sales invoice includes the terms 2/10,
n/30.
A. P 74, 700
B. P 76, 500
C. P 78, 300
D. P 80, 000
A. 14, 600, 000
B. 15, 000, 000 405. Which of the following is an example of
a liability?
C. 15, 400, 000
A. Inventory
D. 13, 600, 000
B. Receivables
401. Owner’s equity can be described as C. Plant and machinery
A. benefactor’s claim on total assets. D. Loan
B. creditorship claim on total assets.
406. Who utilize accounting information to
C. ownership claim on total assets. make lending decisions:
D. debtor claim on total assets. A. Investors
402. Under FRS 102, dividends paid; B. Customers

C. Creditors
A. Are included as an expense on the face
of the Statement of Comprehensive In- D. Employees
come
407. A claim against a customer for sales made
B. Are included as an appropriation on on credit is an account payable.
the face of the Statement of Comprehen-
A. True
sive Income
B. False
C. Are included as an exceptional item on
the Statement of Comprehensive Income 408. Which of the following is considered plant
D. Are included as an appropriation on (permanent) assets?
the Statement of Changes in Equity A. Land, Building, Cash
B. Land, Building, Equipment
403. Franchise fees are properly recognized as
revenue C. Cash, Accounts Receivable, Supplies
A. When received in cash. D. Cash, Accounts Receivable, Land
B. When a contractual agreement has 409. What is the general rule for dealing with
been signed. Work-in-Progress on a manufacturing ac-
C. After the franchise business has be- count?
gun operations. A. Add opening WIP and closing WIP
D. After the franchiser has substantially B. Subtract opening WIP and add closing
performed its service WIP

C. Add opening WIP and subtract closing 414. Meaning of double entry system
WIP A. Two entries in one book
D. Subtract opening WIP and closing WIP B. Two entries in one account
410. Which branch of accounting is heavily reg- C. Entries in both sides of one transaction
ulated? D. Entries in two personal accounts
A. Tax accounting 415. Which book of original entry records the
NARAYAN CHANGDER
B. Managerial accounting goods sold which are returned by the cus-
tomers?
C. Audit
A. Sales Returns Daybook
D. Financial accounting
B. Purchases Daybook
411. Which of the following is TRUE about the C. Sales Daybook
Security Commission (SC) Malaysia: D. Purchases Returns Daybook
A. SC is a company incorporated under
416. A corporation exercises control over an
Companies Act 2016
affiliate in which it holds a 25 percent com-
B. SC’s main functions are the encourage- mon stock interest. If its affiliate com-
ment and promotion of the development of pleted a fiscal year profitably but paid no
the capital market in Malaysia through the dividends, how would this affect the in-
regulation and enforcement of all matters vestor?
relating to the securities industry. A. Result in an increased current ratio
C. SC directly involved in the develop- B. Result in increased earnings per share
ment of accounting standards in Malaysia.
C. Increase several turnover ratios
D. SC’s functions also include promoting
D. Decrease book value per share
and regulating corporate governance and
approved accounting standards among 417. Final account of trading concern includes:
both public and private companies.
A. Receipt and payment account
412. Tee Co. recorded the sale of P6, 000. If B. Trading Account
the sale was subject to a 20% trade dis- C. Profit and Loss account
count and credit terms of 5/10, n/60, the
list price was D. Balance sheet
A. P 4, 500 418. Carriage inwards should be apportioned

on the basis of
B. P 4, 800
A. Sales ratio
C. P 7, 500
B. Purchase ratio
D. P 7, 700
C. GP ratio
413. Royalty paid on sales is debited to the D. Liquidity Ratio
profit and loss a/c
419. An organization can possess which of the
A. True following types of assets?
B. False A. Tangible

B. Intangible 425. Expenses prepaid for future financial

C. Financial period-subtracted from expense in Income
Statement and treated as a current asset

D. Economic in the Statement of Financial position
E. Virtual A. Other Payables
420. The area of accounting that focuses on B. Other Receivables

reporting information to internal users is 426. A strategy where a company tries to de-
called managerial accounting. sign and produce products or services that
A. True serve unique market needs, allowing it to
charge premium prices, such as BMW or
B. False
Nike is using which business strategy?
421. If Assets amounts to $1 500 and Liabili- A. Low cost strategy
ties amounts to $600, what is the amount
B. Premium Price strategy
for Capital?
C. Operating strategy
A. $800
D. Accounting strategy
B. $850
C. $900 427. Income for which money has been re-
ceived but has not been recognized as in-
D. $2 100 come in the relevant period is called
422. Which is the best example of internal con- A. Accrued revenue
trols to ensure accurate financial records? B. Accrued expense
A. Hiring more employees C. Unearned revenue
B. Reconciling bank statements D. Prepaid expense
C. Hiring external auditors E. Operating expense
D. Duplicating records 428. Import duty paid will be included in
423. Partnership Act A. trading account credit side
A. 1956 B. trading account debit side
B. 1932 C. profit and loss account debit side
C. 1972 D. profit and loss account credit side
D. 1883 429. Interest on Capital is to Capital

A. Added
424. Which of the following items are funda-
mental qualitative characteristics of finan- B. Deducted
cial information C. No effect
A. going concern and accrual accounting D. None
B. relevance and faithful representation
430. A decrease in the balance of Accounts Re-
C. materiality and cost benefits ceivable.
D. assets and liabilities A. Operating

B. Investing B. Profit and Loss Account

C. Financing C. Balance Sheet
D. Supplemental D. Cash Book
431. The ownership of goods under hire pur- 436. Which one of the following cites has
chase agreement belongs to the emerged as a ‘ electronic capital of India’?
A. Seller A. Delhi
NARAYAN CHANGDER
B. Purchaser B. Kolkata
C. Seller and purchaser C. Bangalore
D. Purchaser and financial institutions
D. Hyderabad
432. According to IAS 2 Inventories, which
437. Which of the following groups/organisations
of the following costs should be included
would be interested in the accounting
in valuing the inventories of a manu-
records of a business enterprise?
facturing entity?(1) Carriage inwards(2)
Carriage outwards(3) Depreciation of fac- A. Management
tory plant(4) General administrative over- B. Shareholders
heads
C. Inland Revenue
A. All four items
D. All of the above
B. (1), (2) and (4) only
C. (2) and (3) only 438. The basic approach(es) to recording eco-
D. (1) and (3) only nomic activity is(are)
A. the true net income basis
433. Which of the following accounts has a
debit balance B. the cash basis and the accrual basis
A. Contributions C. the cash basis
B. Unearned Revenue D. the accrual basis
C. Service Revenue 439. The non-government organization that
D. Accounts Receivable researches and develops new accounting
standards is
434. Lease is an agreement between lessor
and lessee for A. AICPA
A. Maintenance B. FASB
B. Rent C. IRS
C. Concession D. SEC
D. Down payment 440. To increase the balance in the following
accounts, would you debit the account or
435. The following is a statement showing
would you credit the account?Land
the financial status of the company at any
given time. A. Debit
A. Trading Account B. Credit

441. An increase in revenue or liability results 445. Income for which the money has not been
in a debit posting. received in cash but has been recognized as
A. True income for the period concerned

B. False A. Accrued expense
442. Debentures represent B. Accrued revenue

A. The investment of equity shareholders C. Unearned revenue
B. Directors’ share in the business D. Prepaid expenses
C. Long term liabilities of a business E. Operating expenses
D. Promoters investment
446. Plant Assets Costs for Buildings include
443. Below is the information about a com- all costs directly related to the purchase or
pany:Desa Berhad is a company incorpo- construction, which include Purchase Costs
rated in Malaysia that involved in provid- and Construction Costs. Which is not the
ing telecommunication services. The com- scope of purchase costs.
pany’s shares are freely traded to the pub- A. Purchase costs
lic. However, the company is not listed
in any stock exchange market in Malaysia. B. Closing costs
Based on the above situation, Desa Berhad C. Building permit fees
must comply with the following statutory
D. Notary fees
regulation:
A. Companies Act 2016 and Income Tax 447. Which of the following is not used in solv-
Act 1967 ing problems of incomplete records?
B. Companies Act 2016, Income Tax Act A. control accounts
1967, Regulation by Securities Commis-
B. statement of affairs
sion Malaysia and Bursa Malaysia Listing
Requirements. C. cash book
C. Companies Act 2016, Income Tax Act D. balance sheet
1967 and Regulation by Securities Com-
mission Malaysia. 448. The Matching Expenses with Revenue ac-
counting concept is applied when the rev-
D. Companies Act 2016, Income Tax Act
enue earned and the expenses incurred to
1967, Regulation by Securities Commis-
earn that revenue are reported in the same
sion Malaysia and Regulation by Bank Ne-
fiscal period.
gara Malaysia.
A. True
444. Closing stock appearing in the trial bal-
ance is shown B. False
A. On Credit of Trading A/c only 449. An act of exchange of things or services
B. On Balance Sheet Asset side only between the two parties is termed as:
C. On Credit of Trading Account & Bal- A. Ledger
ance sheet Asset side
B. Transfer
D. If closing stock appears in Trial bal-
ance it does not appear in the Financial C. Transactions
Statements D. Business

450. Choose the correct option 454. Which of the following is a primary users
of final accounts
A. Employees
B. Existing investors
C. Customers
A. 825, 000 D. Suppliers
NARAYAN CHANGDER
B. 930, 000
C. 700, 000 455. An expenditure that only provides eco-
nomic benefits in the period in which the
D. 785, 000 expenditure occurs is called
451. What is the purpose of information pre- A. Capital Expenditures
sented in notes to the financial state-
ments? B. Revenue Expenditures
A. To correct improper presentation in C. Maintenance
the financial statements.
D. Replacement
B. To provide disclosure required by gen-
erally accepted accounting principles. 456. The final step in the accounting cycle is to
C. To present management’s responses prepare:
to auditor comments.
A. closing entries
D. To provide recognition of amounts not
included in the totals of the financial state- B. financial statement
ments. C. a post-closing trial balance
452. Suspense Account shown in trial balance D. adjusting entries
debit side will appear in
A. Balance sheet assets side 457. Which side of the ledger would increase
B. Balance sheet liabilities side capital?
C. Trading and Profit and loss account A. Debit
D. None B. Credit
453. The balance on a firm’s creditors control
458. The adoption of international accounting
account at the end of an accounting period
standards is an application of which of the
should equal
following quality enhancing characteristics
A. the total amount which the finn paid to of financial information:
its creditors during the period.
A. Verifiability
B. the firm’s total purchases for the pe-
riod. B. Understandability
C. the total of its list of creditors out- C. Timeliness
standing at the end of the period.
D. Comparability
D. the cost of the firm’s sales for the pe-
riod. E. Completeness

459. THE LINE ITEMS IN THE STATEMENT OF 464. Translate this account into Viet-
FINANCIAL POSITION OF AN SME(SMALL namese:“Cash on hand”
MEDIUM ENTERPRISE) INCLUDED ALL, EX-

A. Cash
CEPT
B. Bank deposits
A. DEFERRED TAX LIABILITIES
C. Money is moving
B. FINANCIAL LIABILITIES
D. Cash and cash equivalents
C. TOTAL LIABILITIES IN A DISPOSAL
GROUP CLASSIFIED AS HELD FOR SALE 465. What is the half year’s interest on the
D. TRADE AND OTHER PAYABLES debenture not yet paid
A. £2, 400
460. Principles of right and wrong that guide
our decision making B. £1, 200
A. transaction C. £2, 000
B. ethics D. £1, 500
C. asset 466. The accounts that records expenses,

D. accounting gains and losses are
A. Personal accounts
461. Which of the following is not a non-
B. Real accounts
current asset
C. Nominal accounts
A. Fixed assets
B. Share capital
C. Long-term loans and advances 467. Shareholder’s Equity is the sum of share
capital and
D. Non-current investments
A. retained earnings
462. It helps in knowing actual expenses and B. profits
actual income during a particular time pe-
riod. C. drawings
A. Matching Concept D. bonds
B. Accrual Concept 468. Joint Venture is a Temporary form of busi-
C. Revenue Recognition Concept ness organization.
D. Cost Concept A. True

B. False
463. On sales of Rs. 1500 to A at 5% trade
discount, the sales account will be- 469. Wages and salaries will be recorded in
A. Debited by Rs. 1425 A. profit and loss account
B. Credited by Rs. 1425 B. balancesheet
C. Credited by Rs. 1500 C. Trading account debit side
D. Debited by Rs. 1575 D. trading account credit side

470. Spongebob Squarepants’ Best Friend 476. Dishonour of a Bill means that the accep-
tor refuses to honour his commitment on
A. Patrick Star
due date and payment of the bill on pre-
B. Squidward Tentacles sentation does not take place.
C. Eugene Krabs A. True
D. Sandy Cheeks B. False
471. Explain the concept of debit and credit in 477. During 2018, Jack sold goods costing
NARAYAN CHANGDER
double-entry accounting. $450 to its subsidiary, Chan, at a mark-up
of 25%. Chan had $150 of these goods on
A. Debit means money is coming in, and hand at Dec 31, 2018. What is the elim-
credit means money is going out. ination worksheet entry to defer profit in
B. Debit and credit are the same thing in ending inventory?
accounting. A. Dr. Sales $30Cr. Cost of sales $30
C. Debit and credit only apply to personal B. Dr. Sales $37.5Cr. Cost of sales $37.5
bank accounts, not business accounts.
C. Dr. Cost of sales $30Cr. Inventory $30
D. Debit and credit are the two sides of D. Dr. Cost of sales $37.5Cr. Inventory
every accounting transaction. $37.5
472. Account sales is submitted by consignee E. None of the above
to the consignor.
478. The financial statement that reports the
A. True revenues and expenses for a period of
B. False time such as a year or a month is the
A. Balance Sheet
473. An item of value held by an entity that is
B. Income Statement
going to generate income in the future.
C. Statement Of Cash Flows
A. Liability
D. Statements of Shareholders’ Equity
B. Asset
479. The cost of goods sold on hire purchase is
C. Revenue
transferred to
D. Expense A. Sales a/c
474. A promissory note can be made payable B. Purchase a/c
to the bearer. C. Hire purchase a/c
A. True D. Instalment a/c
B. False 480. All of the following are transaction types
that occur during the life of an asset ex-
475. Returns Inwards is cept
A. Sales Return A. Acquisition
B. Purchases Return B. Depreciation
C. carriage C. Allocation
D. All D. Retirement

481. #22 B. The fair value of the liability shall be

remeasured at the date of settlement.

C. The fair value of the liability shall be
remeasured at every year-end and at the
date of settlement.
D. The fair value of the liability shall be
remeasured at the date of grant.
485. The amount by which the minimum rent
exceeds the actual Royalty is known as
Excess Workings.
A. True
B. False
486. A suspense account has a balance of
$450 debit. What has caused this balance
in the suspense account?
A. #240, 000 A. motor expenses of $225, correctly en-
tered in cash book, & posted to motor ex-
B. #220, 000
penses as a credit
C. #180, 000
B. motor expenses of $225, entered in
D. #200, 000 cash book as a receipt & posted to motor
expenses as credit
482. Sale of goods to ram for cash is debited
to C. motor expenses of $450, correctly en-
tered in cash book, & posted to motor ve-
A. Ram account hicles as a debit
B. Cash account D. motor expenses of $675, entered in
C. Sales account the cash book as a credit of $225 and
posted to motor expenses as $225 debit
D. Stock account
487. When bonds are sold, the gain or loss on
483. What is the purpose of preparing trading sale is thedifference between the:
account?
A. sales price and the cost of the bonds.
A. To calculate net sales
B. net proceeds and the cost of the
B. To calculate cost of sales bonds.
C. To calculate gross profit/(loss) C. sales price and the market value of the
D. To calculate net profit bonds.
D. net proceeds and the market value of
484. Which statement in relation to a cash set-
the bonds.
tled share-based payment transaction is
true? 488. How does double-entry accounting help
A. The fair value of the liability shall be in detecting errors and fraud?
remeasured at the end of each reporting A. By creating confusion and making it
period. harder to identify errors

B. By allowing for more errors to go un- B. Capital

detected
C. Asset
C. By making it easier to manipulate fi-
D. Liability
nancial records
D. By providing a cross-check for accu- 494. last step of accounting process is-
racy A. classifying
489. AN ENTITY SHALL DISCLOSE THE FAIR B. summarising
NARAYAN CHANGDER
VALUE OF WHICH OF THE FOLLOWING AS-
C. recording
SETS MEASURED AT COST LESS ANY ACCU-
MULATED DEPRECIATION AND ANY ACCU- D. communicating
MULATED IMPAIRMENT LOSSES?
495. What accounting system matches Mea-
A. BIOLOGICAL ASSETS
surement of profit or loss, assets, liabili-
B. PROPERTY, PLANT AND EQUIPMENT ties and capital?
C. INVESTMENT PROPERTY A. Arithmetical checking of double-entry
D. BOTH A AND C bookkeeping
B. FINANCIAL STATEMENTS
490. Donation to a club are
C. Trial balance
A. credited to the income and expendi-
ture account D. Books of prime entry
B. credited to receipts and payments ac-
496. Discount received has
count
A. Debit balance
C. debited to income and expenditure ac-
count B. Credit balance
D. debited to donation account C. Both debit and credit balance
491. Limited liability company can be divided D. none of above

into two types which are
497. Revenue that is earned but not yet col-
A. unquoted lected.
B. quoted A. Accrued Expense
C. public B. Account Payable
D. private C. Accrued Revenue
492. Types of errors Accounting D. Accrued Liability
A. Errors of Principle
498. ‘Paid Wages’ here wages account will be
B. Errors of Omission credited. State whether the statement is
C. Errors of commission A. True
D. All the above B. Partially True
493. Amount invested in a business is called C. False
A. Investment D. None of the above

499. The deduction obtained if you use the 504. Cash discount is given
terms 3/10, n/30 A. On purchase of goods for cash

A. 0, 3% B. On sale of goods
B. 3% C. On purchase of goods on credit
C. 10% D. Payment receiving in cash before time
D. 30%
505. Which branch of accounting is more valu-
500. The following data are available for the able for making decisions about the fu-
months of April and May of the current ture?
year: A. Tax accounting
B. Financial accounting
C. Audit
D. Managerial accounting
A. P17, 000 506. Journal Entry to record-Goodwill being

created / raised in the books-
B. P16, 000
A. Goodwill DebitOld Partner’s Capital Ac-
C. Pch, 800
counts Credit
D. P17, 500
B. Goodwill DebitExisting Partner’s Capi-
501. Subscription received by a school for or- tal Accounts Credit
ganising annual function is treated as: C. Old Partner’s Capital Accounts Debit-
A. Capital Receipt (i.e., Liability) Goodwill Credit
B. Revenue Receipt {i.e., Income) D. Existing Partner’s Capital Accounts
DebitGoodwill Credit
C. Asset
D. Earned Income 507. Accountants who provide audit and tax
consulting services
502. Which of the following is increased with A. Internal Accountant
a credit?
B. Public Accountant
C. Educator Accountant
B. Accumulated Depreciation
D. Government Accountant
C. Depreciation Expense
D. Withdrawals 508. Discuss the concept of inventory valua-
tion methods in accounting.
503. Major forms of organizations we studied A. There are several inventory valuation
are Proprietary firms, Partnership firms methods in accounting, including FIFO
and (First In, First Out), LIFO (Last In, First
A. Cooperatives Out), and weighted average cost method.
B. Joint Stock Companies B. Average selling price method
C. NGOs C. Specific Identification method
D. Public Sector Enterprises D. FIFO (First In, Last Out)

509. What is the advantage of a bank recon- 514. This type of accounting records historic
ciliation statement? transactions
A. To record daily cash transactions A. Management Accounting
B. To calculate business profits B. Financial Accounting
C. To prepare financial statements for 515. What will usually cause an asset account
the business to increase?
D. To detect errors or mistakes made by A. Debit
NARAYAN CHANGDER
the business and the bank B. Credit
510. When the hire purchaser makes default in 516. The basic elements of financial state-
paying the instalment the hire vendor has ments are classified into how many groups
A. The right to take repossession of the by the IASB?
asset A. 2
B. No right to take repossession B. 3
C. The option to reposses the assets C. 4
D. He has to approach the court D. 5
517. and are the two methods of
511. Fixed assets are recorded at cost less de-
preparing trading, profit and loss account
preciation value due to the concept of
A. Vertical and horizontal
A. BUSINESS ENTITY CONCEPT
B. Vertical and parallel
B. GOING CONCERN CONCEPT
C. T and vertical
C. MONETARY UNIT CONCEPT
D. T and horizontal
D. ACCOUNTING PERIOD CONCEPT
518. All taxes can be divided into how many
512. (g) :A document sent by a supplier to basic types?
a customer in respect of goods returned or A. 5
overpayment made by customer. It is a
negative invoice. B. 2
C. 3
A. Debit note
D. 10
B. Credit note
C. Goods received note (GRN) 519. The excess of expense over income is
called Profit.
D. Goods dispatched (delivery) note
A. True
(GDN)
B. False
E. Statement
520. Calculate the trading stock deficit in
513. Which is a current liability? 2022. (Question 1)
A. 2 year loan A. 81000 + 150-79100 = 2050
B. Trade accounts payable B. 81000-150 + 79100 = 2050
C. long term loan C. 81000 x 150 / 79100 = 2050
D. investment D. 81000 / 150 + 79100 = 2050

521. What is the main purpose of financial ac- B. 2, 252

counting? C. 2, 246

D. 2, 352
524. Accounting for Intangible Assets are re-

lated to
A. AS-10
B. AS-12
C. AS-24
D. AS-26
A. ORGANIZE FINANCIAL INFORMATION 525. (f) :A document sent out by a sup-

plier to a customer listing the transaction
B. PROVIDE USEFUL, FINANCIAL INFOR-
on the customer account, including all in-
MATION TO OUTSIDERS
voices and credit notes issued and all pay-
C. KEEP TRACK OF COMPANY EXPENSES ments received from the customer.
D. MINIMIZE COMPANY TAXES A. Debit advice
522. Which statement is incorrect regarding B. Credit advice
the Professional Regulatory Board of Ac- C. Goods received note (GRN)
countancy (BOA)?
D. Goods dispatched (delivery) note
A. It is under the supervision and admin- (GDN)
istrative control of the Professional Regu-
E. Statement
lation Commission.
B. It is composed of a chairman and six 526. How do you calculate Cost of Raw Mate-
(6) members appointed by the President rials Consumed?
of the Philippines A. Opening Inventory of Finished Goods
C. The Chairman and members of the + Purchases-Closing Inventory of Fin-
BOA shall hold office for a term of three ished Goods
(3) years. B. Closing Inventory of Raw Materials +
D. No person shall serve in the BOA for Purchases-Opening Inventory of Raw Ma-
more than six years. terials
523. Rivera Company purchased merchandise C. Opening Inventory of Raw Materials +

from Dimatulac Suppliers for P3, 600 list Purchases-Closing Inventory of Raw Ma-
price, subject to a trade discount of 25%. terials
The goods were purchased on terms of D. Purchases-Carriage In + Purchase
2/10, n/30, F.O.B. destination. Rivera Returns
paid P100 transportation costs. Rivera re-
turned P400 (list price) of the merchandise 527. GAAP stands for
to Dimatulac and later paid the amount due A. Generally Allowed Accounting Princi-
within the discount period. The amount ples
paid is B. Generally Accepted Accounting Princi-
A. 2, 254 ples

C. Globally Accepted Accounting Princi- D. Credit Cash (decrease), Debit Common

ples Stock (increase)
532. What is the amount of prepayment for
528. If Rita sells goods for cash, it will be rates from October to December 2022?
recorded in
A. £1, 150
A. Sales book
B. £2, 300
B. Purchases book
NARAYAN CHANGDER
C. £575
C. Cash book
D. Journal proper D. £3, 450
529. What is the primary objective of the Com- 533. A company using the accrual method of
panies Act 2016 in Malaysia as it relates accounting performed services on account
to financial reporting? in August. The services were for $2,
A. To simplify tax regulations for compa- 000.The customer will pay in the next
nies month.Assuming that the company pre-
pares monthly income statements, what
B. To regulate the cryptocurrency market will be the account debited for $2, 000 in
C. To promote international trade agree- August?
ments
A. Cash
D. To enhance corporate governance and
financial transparency B. Accounts Receivable
C. Service Revenue
530. Mr. Kan brought cash to invest in the
business of 100, 000 baht. It can be D. none of above
recorded in the account by
A. Debit Cash 100, 000 baht Credit 534. Management accounting is concerned
Capital-Mr. Kan 100, 000 baht with both information and events from the
past and in the future. Management ac-
B. Debit Capital 100, 000 baht Credit count attempts to focus more on future
Cash 100, 000 baht events.
C. Debit Cash 100, 000 baht Credit Debt
A. True
100, 000 baht
D. Debit Cash 100, 000 baht Credit With- B. False
drawal for personal use 100, 000 baht
531. What two accounts are impacted when a low:Total value of goods returned to the
company issues (sells) stock? business from customers (e.g. because the
A. Credit Cash (increase), Debit Common goods sold were faulty)
Stock (decrease) A. Sales returns
B. Debit Cash (increase), Credit Common B. Purchase returns
Stock (decrease)
C. Carriage in
C. Debit Cash (decrease), Credit Com-
mon Stock (increase) D. Warehouse expenses

536. A, B and C were partner in a firm sharing 541. book keeping is mainly concerned with
Profit in the ratio of 3:2:1 during the year the recording of financial data relating to
the firm earned profit of Rs. 84, 000.Cal- the in significant and orderly manner

culate the amount of Profit or Loss trans- A. business
ferred to the capital A/c of B.
B. personal
A. Loss Rs. 87, 000
C. company
B. Profit Rs.28, 000 D. monetary
C. profit Rs. 87, 000
542. Accounting is an information system that
D. Profit Rs.14, 000 provides reports to users about the eco-
nomic activities and condition of a busi-
537. Which of the following is a credit item in
ness.
an income and expenditure account?
A. TRUE
A. Electricity
B. FALSE
B. Donation
543. Who is the world’s richest men?
C. Stationery
A. Jeff Bezos
D. Bar suppliers
B. Elon Musk
538. The following is a journal to record depre- C. Bernard Arnault
ciation of fixed assets:
D. Steve Jobs
A. Asset depreciation expense (D); Accu-
mulated depreciation of assets (K) 544. The type or branch of accounting that gen-
erates reports for the use of external par-
B. Accumulated depreciation of as-
ties such as creditors, investors and gov-
sets(D); Asset depreciation expense (K)
ernment agencies is known as:
C. Asset depreciation expense (D); Amor- A. Financial accounting
tization expense (K)
B. Managerial accounting
D. Amortization expense (D); Accumu-
C. Tax accounting
lated depreciation of assets (K)
D. Forensic accounting
E. Amortization expense (D); Patent
rights (K) 545. Which element is not a part of the typ-
ical company code data in general ledger
539. A person who cannot pay his debts is accounts?
called
A. Tax-related data
A. Creditor
B. Field status groups
B. Debtor
C. Line item display
C. Insolvent D. Reconciliation account data
D. None E. None of the above
540. Profit and loss account reveals financial 546. Retiring a bill under rebate means pay-
position of an organization ment of the bill before due date.
A. True A. True
B. False B. False

547. Within accounts receivable accounting, D. To provide information about the per-
when a payment is made the bank account sonal finances of employees
is debited and the appropriate customer ac-
count is credited. 552. In a manufacturing account, prime cost
comprises three cost:direct materials, di-
A. True rect labour and factory overhead
B. False A. TRUE
548. The Audit Oversight Board (AOB) is es- B. FALSE
NARAYAN CHANGDER
tablished with the mission in assisting
the Securities Commission. This mission 553. Accounting terms used to describe the ex-
is explained[NS1] by the following state- cess of current assets over current liabili-
ments:i. Overseeing the auditors of public ties is
interest entities. ii. Protecting the inter- A. share capital
ests of investors by promoting confidence
B. working capital
in the quality and reliability of audited fi-
nancial statements of public interest enti- C. subscribed capital
ties. iii. Overseeing the accountants of D. reserved capital
public interest entities. iv. Overseeing the
Financial Reporting Foundation (FRF). 554. are goods or cash withdrawn by the
A. i and ii owner of a business at interval for his own
use
B. ii and iii
A. Contra entries
C. ii and iv
B. Capital
D. i and iii
C. Income
549. Consignee becomes consignor’s debtor D. Drawing
when the goods are:
A. shipped by the consignor 555. This type of accounting analyses financial
information in detail to work out the costs
B. received by consignee of individual products
C. sold by consignee
A. Management Accounting
D. returned by consignee
B. Financial Accounting
550. Joint Venture is temporary partnership.
556. COGS Stands for?
A. True
A. Cost Out of Goods Sold
B. False
B. Closing Opening Goods Stock
551. What is the purpose of financial account- C. Cost Of Goods Sold
ing?
D. none of above
A. To provide information about the finan-
cial position and performance of an orga- 557. WHICH ARE THE THREE COMMONLY
nization to external users. USED TOOLS OF FINANCIAL STATEMENT
B. To manage the human resources de- ANALYSIS, EXCEPT
partment of an organization A. RATIO ANALYSIS
C. To track the inventory of a company B. FINANCIAL ANALYSIS

C. HORIZONTAL ANALYSIS 563. THE PERMISSION REQUIRED FROM

D. VERTICAL ANALYSIS IN THE CASE OF BILLS OF EXCHANGE

A. BANK
558. Select the Right options which are
branches of Accounting? B. DRAWER
A. Financial Accounting C. DRAWEE
B. Books Accounting D. PAYEE
C. Management Accounting
564. The Accumulated Depreciation account is
D. Cost Accounting a contra asset account.
559. The unfavorable balance of Profit and A. True
Loss account should be:
B. False
A. Added in liabilities
B. Subtracted from current assets 565. What is net worth of a business?
C. Subtracted from capital A. income statement
D. Subtracted from liabilities B. balance sheet
560. Round 15.67348 to the correct decimal C. owner’s equity

place so that it deals with money. D. statement
A. $15.7
566. Your boss decides to purchase a luxury
B. $15.67 suite at Mudhens Stadium. This purchase
C. $15.68 provides a venue to do which of the fol-
D. $15.673 lowing?
A. Accomplish more office work
561. Which of the following reasons is not a
reason for a company to create its own B. Develop business networks and fos-
Tangible Fixed Assets? ter relationships with potential clients
through social vs. business environments
A. The acquisition price is definitely
cheaper C. Store important record
B. Utilize idle facilities D. Spy on your competitors
C. Obtain a Tangible Fixed Asset with
567. This type of accounting is legally required
good quality
D. No other party can provide the Tangi- A. Mangement Accounting
ble Fixed Assets required according to the B. Financial Accounting
company’s desired criteria
E. All are correct 568. Business is distinct from the owner. This
concept is called
562. New-partner pays premium for goodwill, A. Business entity concept
which will be shared by old partners in
their new profit-sharing ratio B. Cost concept
A. True C. Going concern concept
B. False D. Money measurement concept

569. When closing the withdrawals account C. Presenting information to internal

A. the owner’s capital should be debited managers
B. The income summary account should D. Reporting on past transactions and

be debited events
C. The owner’s capital account should be 575. What is the purpose of information pre-
credited sented in notes to the financial state-
D. a liability account should be credited ments?
NARAYAN CHANGDER
E. the income summary account should A. To provide disclosure required by gen-
be credited erally accepted accounting principles.
B. To provide recognition of amounts not
570. A/c to be charged when proprietor with- included in the totals of the financial state-
draws funds ments.
A. Capital C. To correct improper presentation in
B. Cash the financial statements.
C. Bank D. To present management’s responses
to auditor comments.
D. Drawings
576. A current asset is generally converted
571. Purchase Return Book is used to record
into cash within a year or operating period
A. Return of goods purchase in cash
A. True
B. Return of goods purchase on credit
B. False
C. None of the above
577. What is the periodical statement sent by
D. none of above
the consignee to the consignor?
572. To increase the balance in the following A. Performa Invoice
B. Account sales
would you credit the account?Service Rev-
enue C. Both
A. Debit D. None of the above
B. Credit 578. Paid wages by bank transfer what is the
double entry
573. accounting doesn’t record non-financial
transactions because of A. Dr wagesCr Cash
A. entity concept B. Dr BankCr wages
B. accrual concept C. Dr WagesCr Bank
C. measurement concept D. Dr CashCr Wages
D. none of above 579. Subscription received in advance is
574. What is the focus of managerial account- A. An Income
ing? B. An Expense
A. Future planning and decision-making C. An Asset
B. Managing risks within a business D. A liability

580. The reason a company discontinues 585. The equipment bought at a price of Php
fixed assets is because of the following, 450, 000 has an economic life of 5 years
except and a salvage value of Php 50, 000. The

A. Bored cost of money is 12% per year. Com-
pute the first year depreciation using De-
B. Damaged clining Balance Method NOTES:SV = FC
C. For sale (1-K)*n50, 000 = 450, 000 (1-K)*5K =
0.356
D. Change plus
A. 50.000
E. Destroyed
B. 250.000
C. 450.000
D. 160.200
586. Current liabilities

A. are to be settled within the shorter of
A. DD, P9, 825; EE, P20, 175 one year or the operating cycle
B. DD, P15, 000; EE, P15, 000 B. are closed at the end of the accounting
period to current assets
C. DD, P10, 000; EE, P20, 000
C. are due to be settled after one year or
D. DD, P9, 300; EE, P20, 700
the operating cycle
582. Which of the following would NOT be D. are listed in order of liquidity
considered as internal users of accounting
E. are listed in order in which they are to
data for a company?
be paid, with the first one listed to be paid
A. External auditor first
B. CEO of the company
587. Pragmatic is a study of the behaviour of
C. President of the company accountants and non-accountants
D. Salesman of the company A. True
583. Sales & Purchase book doesn’t record B. False
A. Credit Sales 588. The rights of creditors that represent a
B. Credit Purchase legal obligation to repay an amount bor-
rowed according to terms of the borrow-
C. Credit Sales & Purchase ing agreement.
D. Cash Sales & Purchase A. Assets
584. Double entry in accounting means there B. Liabilities
must be entries for every transaction? C. Revenue
A. two D. Expenses
B. Three
589. Unearned revenue is a liability that is cre-
C. six ated when a customer pays for a service
D. one or product in advance.

A. True 595. The financial statement which is an ex-

B. False pression of the account equation is the
A. Trading account
590. Which of the following is required when
calculating prime cost? B. Profit and loss account
A. Office wages C. Balance sheet
B. Manufacturing wages D. Statement of casg flow
NARAYAN CHANGDER
C. Depreciation of machinery 596. The purpose of this convention is to com-
D. Factory water charges municate all material and relevant facts
concerning financial position and results of
591. The balance of petty cash is operations to the users.
A. Assets A. Convention of Materiality
B. Liabilities B. Convention of Full Disclosure
C. Expenses C. Convention of Consistency
D. Income D. Convention of Conservatism
592. Which of the following elements of a 597. If revenue expenditure transaction is mis-
manufacturing account matches the defi- takenly classified as capital expenditure,
nition below:The raw materials actually what is the effect on the following items
used to manufacture the product (e.g. in financial statement?
cloth used to produce shirts, flour used to A. Net profit will be reduced
produce bread)
B. Net profit will increase
A. Direct materials
C. There will be no effect on net profit
B. Direct wages
D. none of above
C. Indirect materials
D. Direct expenses 598. What occurs when a customer has with-
drawn more funds than were actually in
593. The following are some reasons why com- the banking account resulting in the cus-
panies choose business combination over tomer owing money to the bank?
internal expansion except: A. Credit balance
A. Cost saving B. Overdraft
B. Increasing competition C. Levies
C. Enter a new geographic region D. Transactions
D. Reduce competition
599. A trader made four transactions.1 paid
594. Amounts owing by the business to its for repairs to manufacturing equipment2
creditors. purchased an item to be used by the
A. Trade Receivables business for more than 12 months3 took
goods for resale for his own use4 trans-
B. Trade Payables ferred his own vehicle to the business-
C. Loan from Bank Which items are capital expenditure?
D. Owner’s Equity A. 1 and 2

B. 2 and 3 604. The process of converting raw materials

C. 2 only into finished goods that are produced on a
large scale called:

D. 3 and 4
A. Information technology
600. The amount paid at the time of enter-
B. Electronic industry
ing the Hire-purchase transaction for the
goods purchased is known as C. Manufacturing
A. Cash price D. Factory
B. Down payment
605. Limit of Maximum Number of Partners is
C. First Instalment Fixed by
D. Hire purchase price A. Partnership Act 1932
601. Using the Specific Identification inventory B. Agreement Act 2000
system we use the sales records to iden-
C. Companies Act 2013
tify the following:Aug. 14 Sold 8 bikes
costing $91 each and 12 bikes costing D. Companies Act 1956
$106 each.Aug. 30 Sold 2 bikes costing
$91 each, 3 bikes costing $106 each, 15 606. Information users for financial accounting
bikes costing $115 each, and 3 bikes cost- comprise of both internal (management,
ing $119 each.Total cost of 55 units avail- shareholders, employees etc) and external
able for sale is $5, 990.Calculate cost of (creditors, suppliers, banks, tax authori-
the ending inventory. ties).
A. $2, 490 A. True
B. $1, 408 B. False
C. $2, 408 607. When Allotment money is received, the
D. $1, 308 entry will be
602. State whether each of the following is A. Debit:Share Capital Credit:Share Allot-
True or FalseIn a Common size statement ment Account
each item is expressed as a percentage of B. Debit:Share Allotment Account
some common base. Credit:Share Capital
A. True C. Debit:Cash Account Credit:Share Allot-
B. False ment Account
603. Statement of Financial Position: D. Debit:Share Allotment Credit:Cash Ac-
count
A. When your total expenses exceed your
overall revenues. 608. How many accounts, at a minimum, are
B. A financial document that provides a required for accounting entries?
snapshot of business assets, liabilities A. 1
and owner’s equity.
B. 2
C. The movement of money in and out of
your business C. 3
D. none of above D. 4

609. Manufacturing Account does not include 615. At December 31, 2017, the fair value
of available-forsale securities is $41, 300
A. Direct and Indirect cost
and the cost is $39, 800. At January 1,
B. Prime and Factory Overhead cost 2017, there was a credit balance of $900
C. Administrative & Selling cost in the Fair Value Adjustment-Available-
for-Sale account. The required adjusting
D. Direct & Indirect cost entry would be:
610. When a company repurchases its own A. Debit Fair Value Adjustment-Available-
NARAYAN CHANGDER
stock it is referred to as: for-Sale for $1, 500 and credit Unrealized
Gain or Loss-Equity for $1, 500.
A. Preferred stock
B. Debit Fair Value Adjustment-Available-
B. Common stock for-Sale for $600 and credit Unrealized
C. Treasury stock Gain or Loss-Equity for $600.
D. Retained earnings C. Debit Fair Value Adjustment-Available-
for-Sale for $2, 400 and credit Unrealized
611. Concept:Revenue is recorded at the same Gain or Loss-Equity for $2, 400.
time goods or services are sold. D. Debit Unrealized Gain or Loss-Equity
A. realization of revenue for $2, 400 and credit Fair Value
Adjustment-Available-forSale for $2, 400.
B. the revenue principle
C. going concern 616. Costs incurred or the using up of assets
as a result of the main operations of a busi-
D. prudence ness are called:
612. This type of accounting is used for deci- A. Liabilities
sion making B. Equity
A. Financial Accounting C. Revenues
B. Management Accounting D. Expenses
E. Net losses
613. To form an incorporated public company,
a group of persons should subscribe 617. Which is the correct definition of a provi-
their names to the Memorandum of Asso- sion?
ciation.
A. A possible obligation arising from past
A. 14 event
B. 10 B. A liability of uncertain timing or
C. 7 amount
D. 6 C. A liability which cannot be easily mea-

sured
614. Net profit is the surplus, if any, from D. An obligation to transfer funds to an
sales revenues after all expenses are ac- entity
counted for.
618. Where is the fare received from an in-
A. false
complete journey shown as Voyage-in-
B. true Progress?

A. Debit side of voyage account 622. The type or branch of accounting that gen-
erates reports for the use of external par-
B. On credit side of voyage account
ties such as creditors, investors and gov-

C. Debit side of profit loss account ernment agencies is known as
D. In the credit side of profit and loss ac- A. cost accounting
count B. managerial accounting
C. financial accounting
619. Calculate the income tax for the year
2021. (Question 2) D. tax accounting
A. 1054000 x 68/32 = 604000 623. The Unrealised profit in Closing stock is

transferred to Which Account?
B. 1054000 x 32/68 = 604000
A. Credit Side of General Profit and Loss
C. 1054000 x 68/32 = 496000 Account
D. 1054000 x 32/68 = 496000 B. Debit Side of General Profit and Loss
Account
620. Which process explains that financial C. Liability Side of Balance Sheet
statements are analysed and the results
of the analysis are used as a guidance to D. Assets Side of Balance Sheet
make decision? 624. Which of the following is already
A. Summarizing recorded in the Cash at Bank account but
not in the Bank Statement?
B. Interpreting
A. Bank charges
C. Recording B. Dishonoured cheque
D. Classifying C. Uncredited cheque
D. Direct deposit
621. On June 1, 2020, Susi acquires 100%
of Kiki for $80, 000. On this date, Kiki 625. The accounting process is used to analyze
had assets of $50, 000. Assume the book and record transactions in a hospitality op-
value and fair value of Kiki’s net assets eration.
were equal at the acquisition date. What A. True
is the record at Kiki when acquired by
Susi? B. False
A. Dr. Cash in Bank $50, 000Cr. Invest- 626. ALL OF THE FOLLOWING ARE COMPO-
ment in Susi $50, 000 NENTS OF INCOME OR LOSS FROM CON-
TINUING OPERATIONS, EXCEPT:
B. Dr. Investment in Susi $80, 000Cr.
A. REVENUE FROM THE SALE OF MER-
Cash in Bank $80, 000
CHANDISE
C. Dr. Capital Stock $50, 000Cr. Cash in B. INTEREST INCOME
Bank $50, 000
C. IMPAIRMENT LOSS OF ASSETS OF A
D. Dr. Cash in Bank $80, 000Cr. Capital MAJOR DIVISION CLASSIFIED AS HELD
Stock $80, 000 FOR SALE
E. Dr. Cash in Bank $50, 000Cr. Capital D. UNREALIZED LOSS ON TRADING IN-
Stock $50, 000 VESTMENT

627. accounting used by business and non busi- the business recorded $100, 000 in car re-
ness class both pair revenues, $55, 000 in expenses, and
A. true dividends of $10, 000. The net income re-
ported by John Keneth’s Barber Shop for
B. false the year was
C. can’t say
A. $45, 000
D. none of above
B. $100, 000
NARAYAN CHANGDER
628. Huge advertising expenses are incurred
C. $90, 000
to introduce a new product in the market,
it is D. $35, 000
A. a capital expenditure
633. All properties and services acquired by
B. a revenue expenditure the business must be recorded at their orig-
C. a deferred revenue expenditure inal acquisition cost. This principle pertains
D. none of the above to
A. Historical Principle
629. The items raw materials inventory,
work-in-progress inventory and finished B. Business Entity
goods inventory are MOST likely seen to-
C. Accrual Principle
gether on the balance sheet of a
A. garage D. Objectivity principle
B. supermarket 634. A public limited company is allowed to

C. shoe factory start business after receipt of
D. bus company A. CoC
630. A control account is B. CoI
A. an imprest system C. LoC
B. a statement of affairs D. none of above
C. a bank reconciliation statement
D. a self balancing ledger system 635. What is a business doing when it sells
output beyond the break-even point?
631. Cash used to finance relatively small and
A. Making a loss
inefficient expenses using checks is the
definition of B. Making a profit
A. Cash on hand C. Making neither a profit or loss
B. Cash D. It is not possible to tell from the graph
C. Petty cash
D. Cheque 636. This type of accounting is used to control
the costs of the business
632. John Keneth’s Barber Shop started the
year with total assets of $60, 000 and to-
tal liabilities of $40, 000. During the year B. Management Accounting

637. On October 1, Green Company purchased 642. Internal stakeholders can use final ac-
P6, 000 worth of goods on terms of counts to manage the business and to aid
2/15, n/30. Freight of P500 was pre- strategic decision-making.

paid by the seller under the term FOB ship- A. YES
ping point, goods worth P1, 000 were re-
B. NO
turned and the account was paid October
3. How much discount was received from 643. Generally incomplete records are main-
the seller? tained by
A. P 100 A. Trader
B. P 110 B. Society
C. P 90 C. Company
D. P 120 D. Government
638. Only current year income and expenses 644. Liability of partners is unlimited in case of
are recorded in Income and Expenditure ac- general partnership whereas it is limited
count incase of Limited Liability Partnership.
A. True A. True
B. False B. False
639. Failure to make an adjusting entry to
recognize accrued salaries payable would D. none of above
cause which of the following?
645. If one aspect of a transaction is not
A. An understatement of expenses, liabil- recorded, which accounting concept is vi-
ities, and stockholders’ equity olated?
B. An understatement of expenses and li- A. Cost
abilities and an overstatement of stock- B. Business Entity
holders’ equity
C. Matching
C. An overstatement of assets and stock-
holders’ equity D. Dual Aspect.
D. An overstatement of assets and liabili- 646. A decrease in owner’s equity resulting

ties from the operation of a business
A. revenue
640. Expenses incurred by branch out of petty
cash balance are debited to branch account B. expense
by the head office. C. transaction
A. True D. debt
B. False 647. When the capitalization of profits method
641. Object to keep fixed assets is is used then the value of goodwill on
the basis of future maintainable profits is
A. Long-term use more than that of on the basis of super
B. Resale profits.
C. Liquidity A. True

648. shows the change in an owner’s or share- 654. The receipt of cash from customers in pay-
holder’s equity throughout an accounting ment of their accounts would be recorded
period. by a:
A. Income Statement A. debit to Cash and a credit to Accounts
B. Statement of Financial Position Payable
B. debit to Cash and a credit to Accounts
C. Statement of Changes in Equity
Receivable
D. Trading Account
C. debit to Accounts Receivable and a
NARAYAN CHANGDER
649. A small neighborhood barber shop that is credit to Retained Earnings
operated by its owner would likely be or- D. debit to Accounts Payable and a credit
ganized as a to Cash
A. corporation. 655. Double entries of the business buying a
B. proprietorship. van with cheque
C. partnership. A. Dr. BankCr. By
D. joint venture. B. Dr. VanCr. Cash
C. Dr. Motor VehicleCr. Bank
650. What is the normal balance for assets?
D. Dr. Motor VehicleCr. Cash
A. Debit
B. Credit 656. He is the father of modern accounting.
Identify the person?
651. what is included in the income statement A. Luca Pacioli
in worksheet?
B. Geometry
A. drawings and owner’s equity
C. Angelo Lorenzo
B. all revenues and expenses
D. Michelle Ballack
C. all assets
657. Complete the following state-
D. accumulated depreciation and account
ment.Assets=
payable
A. Owners equity +liabilities
652. Which is a liability? B. Bank + Owners equity
A. taxes to be paid C. Liabilities +Bank
B. land D. none of above
C. office equipment
658. ALL OF THE FOLLOWING ARE CONSID-
D. buildings you own ERED INVESTMENT PROPERTY, EXCEPT:
653. Which of the following is NOT an exam- A. LAND THAT IS HELD FOR CAPITAL AP-
ple of a manufacturing firm? PRECIATION
A. Grocery B. BUILDING LEASED OUT UNDER AN OP-
ERATING LEASE
B. Bakery
C. BUILDING THAT IS CONSTRUCTED
C. Garment factory FOR FUTURE USE AS INVESTMENT PROP-
D. Woodworking shop ERTY

D. LAND FOR SALE IN THE ORDINARY 664. How much is the insurance expense for
COURSE OF BUSINESS 2022 given that you pre-paid $24, 000
for 24 months beginning November 1,

659. A silent partner in a general partnership 2022?
A. Helps manage the partnership without A. $1000
letting those outside the partnership know
this. B. $12, 000
B. Retains unlimited liability for the debts C. $200

of the partnership. D. $2, 000
C. Exempted to the liability of the partner- 665. From the given items which is a part of
ship current liabilities
D. None of the above is correct. A. Inventories
660. What is the basic accounting equation? B. Trade payables
A. Assets = Liabilities + Owner’s equity C. Cash and cash equivalents
B. Assets + Liabilities = Owner’s equity D. Trade receivables
C. Assets = Owner’s equity-Liabilities 666. Pay attention to the following compo-
D. none of above nents of the work paper! 1) Balance sheet
2) Income statement 3) Adjusted trial bal-
661. is an extracted book of an account ance 4) Adjustment journal 5) Trial balance
A. Balance sheet The following is the correct sequence of
steps in compiling a 10 column work pa-
B. Bank reconciliation
per:
C. Trial balance
A. 1-2-3-4-5
D. Petty cash book
B. 1-3-4-5-2
662. Which of the following is an example of C. 3-5-1-2-4
a deferral?
D. 5-4-3-2-1
A. Recognizing expenses incurred but not
yet recorded 667. Ralph buys a computer for $675. The
sales tax rate is 6%. How much total did
B. Recording prepaid rent
Ralph pay for the computer?
C. Recognizing revenues earned but not
A. 40.50
yet recorded
B. 715.50
D. Accruing year-end wages
C. 6.00
663. Converting Liabilities to Revenue What
D. 634.50
would be the impact on stockholders’ eq-
uity? 668. Another name term for non-current asset
A. Stockholders’ equity would increase is:
B. Stockholders’ equity would remain un- A. Fixed Asset
changed B. Current Asset
C. Stockholders’ equity would decrease C. Feasible Asset
D. All of the above D. Liability Asset

669. Under accrual accounting we recognize 673. Which of the following items is a current
revenue when it is: liability?
A. received, no matter when it is earned. A. Stock of raw materials
B. earned, as long as payment for it oc-
B. Cash in hand
curs in the same time. period
C. earned, no matter when payment for it C. Cash at bank
is received. D. Bills payable
NARAYAN CHANGDER
D. received, as long as payment for it oc-
curs in the same time period. 674. The first cost of a machine is Php 1, 800,
000 with a salvage value of Php 300, 000
670. Where an investor has discontinued the
at the end of its six years of life. De-
use of the equity method because the as-
termine the total depreciation after three
sociate has incurred losses it must disclose
years using the Straight Line Method of
the:
Depreciation.
A. unrecognised share of current period
and cumulative losses of the associate A. 250.000
B. reason why it has discontinued the B. 300.000
method
C. 750.000
C. accounting policy it has adopted in
place of the equity method D. 1000.000
D. effect on the statement of changes
675. Balance Sheet is also known as
in equity if it had continued to use the
method A. Trading A/c
671. Debits are always recorded on the right- B. Income Statement
side of a T-Account
C. Position Statement
A. True
D. P & L A/c
B. False
672. Which TWO of the following situations 676. is the discount given to the customers
would not require a prior year adjustment for prompt payment of their accounts
per IAS 8
A. Discount allowed
A. In last year’s financial statements, in-
ventories were understated by a material B. Trade discount
amount due to system error. C. Discount received
B. A company changes its allowance for
D. Legal tender
irrecoverable debts from 10% of outstand-
ing debt to everything over 120 days old
677. Gross profit is calculated in
C. A company has chosen to value inven-
tory using FIFO rather than AVCO as in A. balancesheet
previous periods. B. profit and loss account
D. A company has decided to move from
C. trading account
charging the depreciation on the straight-
line basis to the reducing balance basis D. ledger

678. The events that affect the entity and in C. Public Company Accounting Oversight
which other entities participate are known Board (PCAOB)
as

D. Securities and Exchange Commission
A. Internal events (SEC)
B. External events 682. The owner of a business paid his private
C. Current events telephone bill from the business bank ac-
count. The amount was debited to the
D. Obligating events
drawings account. Which concept was ap-
679. On May 1, 2020, Rani acquires 100% plied?
of Moly for $100, 000. On this date, A. realization
Moly had assets of $80, 000. Assume the B. expense recognition
book value and fair value of Moly’s net
assets were equal at the acquisition date. C. economic entity
What is the elimination journal when Par- D. prudence
ent making the consolidation?
683. Treatment of Advance income in the finan-
A. Dr. Cash in Bank $100, 000Cr. Invest- cial statements
ment in Moly $100, 000
A. Increase incomes, increase current
B. Dr. Investment in Moly $80, 000Cr. assets
B. Decrease Income, increase Current Li-
C. Dr. Capital Stock $100, 000Cr. Invest- ability
C. Increase incomes, decrease current
D. Dr. Investment in Moly $80, 000Cr. assets
Capital Stock $80, 000
D. Decrease incomes, Decrease current
E. Dr. Capital Stock $80, 000Cr. Invest- assets
684. During a period of consistently rising
680. Module for creating supplier and cus- prices, the method of inventory costing
tomer data that will result in reporting the greatest
A. Account cost of merchandise sold is:
B. Banking A. FIFO
B. LIFO
C. Card File
C. Average Cost
D. Payroll
D. Lower cost or market
681. The professional organization that CPAs
may join. The organization creates and ad- 685. In accounting, consignment signifies
ministers the CPA exam and nurtures CPA A. goods forwarded from one place to an-
professional practice. other
A. American Institute of Certified Public B. goods forwarded by one person to an-
Accountants (AICPA) other
B. Financial Accounting Standards Board C. goods despatched by the owner to its
(FASB) agent

D. goods despatched by the owner to its A. True

agent for the purpose of sale B. False
686. What amount will be reported under Cash
690. Keeping accurate and up to date is
From Investing Activities?
important for the smooth running of the
business.
A. Lists
B. Records
NARAYAN CHANGDER
C. Laws
A. 3, 000 D. Funds
B. 8, 000
691. After recording interest and amortiza-
C. 13, 000 tion, an entity converted P5, 000, 000
D. none of above of 12% convertible bonds into 50, 000
shares of P50 par value. On the con-
687. Financial accounting is concerned primar- version date, the carrying amount of the
ily with: bonds payable was P6, 000, 000, the
A. external reporting to investors, credi- market value of the bonds was P6, 500,
tors, and government authorities 000, and the share was publicly trading
at P150. The entity incurred P100, 000 in
B. cost planning and cost controls
connection with the conversion. When the
C. profitability analysis bonds were originally issued, the equity
D. providing information for strategic and component was recorded at P1, 500, 000.
tactical decisions What amount of share premium should be
recorded as a result of the conversion?
688. At the beginning of the current year,
A. 5, 000, 000
Donna Company had $1, 000 of supplies
on hand. During the current year, the B. 3, 500, 000
company purchased supplies amounting to C. 4, 900, 000
$6, 400 (paid for in cash and debited
to Supplies). At the end of the current D. 3, 400, 000
year, a count of supplies reflected $2, 000.
692. A plant was purchased on January 01,
The adjusting entry Donna Company would
200X at a cost of $150, 000 and has been
record at the end of the current year to ad-
depreciated at a rate of 2% per annum, on
just the Supplies account would include a
the straight-line basis. 20 years later, the
A. Debit to Supplies for $2, 000 plant is professionally revalued at $120,
B. Credit to Supplies Expense for $5, 400 000. 5 years later from the first revalu-
ation, the plant is revalued at $20, 000.
C. Credit to Supplies for $5, 4000 What should be recorded in relation to the
D. Debit to Supplies expense for $4, 400 second revaluation?
689. An income statement reports information A. Decrease in revaluation surplus of $30,

for a specific date indicating the financial 000
progress of a business in earning a net in- B. Decrease in revaluation surplus of $80,
come or a net loss. 000

C. Increase in expense of $80, 000 B. 1.50

D. Other C. 16.50

D. 13.50
693. Independent Branches maintain indepen-
dent accounting records. 698. What is the normal balance for equity?
A. True A. Debit
B. False B. Credit
694. Which of the following is used to imple- 699. Where in the cashflow statement would
ment multiple ledgers and use each ledger you find depreciation expense?
for different purposes? A. Operating
A. Financial accounting document B. Investing
B. Subsidiary ledger C. Financing
C. Sub-ledger D. Supplemental
D. Parallel Accounting
700. Provide with databases on various
E. None of the above variables to conduct of taxation, regula-
tion of the economy and enhancement of
695. At the end of the accounting year Depre-
economic efficiency and other social goals.
ciation Expense is closed to
A. Auditors
A. Income Summary
B. The user of financial statement
B. Accumulated Depreciation
C. Shareholders
C. Recording
D. The government
D. Journal
701. 9 Depreciation is generated due to
A. Increase in the value of liability
B. Decrease in capital
C. Wear and tear
D. Decrease in the value of assets
A. Income Tax Payable = 480, 000In-
come Tax Expense = 480, 000 702. The following data are available for the
months of April and May of the current
B. Income Tax Payable = 280, 000In- year. The cost of goods sold for the month
come Tax Expense = 528, 000 of May is:
C. Income Tax Payable = 450, 000In-
come Tax Expense = 540, 000
D. Income Tax Payable = 470, 000In-
come Tax Expense = 450, 000
A. P13, 000
697. In a video store, a DVD that sells for $15
is marked 10% off. What is the amount B. P18, 000
of discount? C. P17, 500
A. 1.00 D. P18, 500

703. Sam bought an $85.00 jacket for 40% 709. is a financial statement which summa-
off of the regular price. How much did he rizes the transactions related to the share-
pay for the jacket? holder’s equity over an accounting period.
A. 75 A. Income Statement
B. 51 B. Cash Flow Statement
C. 36 C. Balance Sheet
D. 34 D. Statement of Changes in Equity
NARAYAN CHANGDER
710. return outward means
704. IFRS was created in what year?
A. sales return
A. 2001
B. purchase return
B. 2002
C. actual sales
C. 1913
D. actual purchases
D. 1969
711. In preparing accounting standards, it re-
705. Expenses which cannot be apportioned to ally depends on
department must be shown in the A. market mechanisms and professions
A. Balance Sheet B. government
B. Trading a/c C. market mechanisms, professions, and
C. Profit and Loss a/c government
D. profession and government
D. Profit and loss appropriation a/c
712. TK/0
706. Cash book is an example of
A. Rp54.000.000, 00
A. General journal
B. Rp58.500.000, 00
B. Special book
C. 000, 000, 000
C. None of these D. 500, 000, 000
D. none of above
713. Why is there a tendency for Sugar mills
707. Ministry of Corporate Affairs enforced to concentrate in the southern and western
the LLP Act, with effect from states of India?
A. 1st April, 2009 A. Higher sucrose content and yield

greater quantity
B. 31st March, 2008
B. Cooler climate
C. 31st March, 2009
C. Cooperative are more successful in
D. 1st April, 2008 these reason
D. All of these
708. The source document for an electronic
funds transfer is a memorandum. 714. An amount owed by the customer.
A. True A. Trade Payable
B. False B. Loan from Bank

C. Trade Receivable 721. Explain the significance of the accounting

D. Owner’s Equity equation in double-entry accounting.

A. It only applies to small businesses
715. Financial statements can be generated
for different organizational levels includ- B. It has no significance in double-entry
ing one or more company codes and busi- accounting
ness areas. C. It ensures that the balance sheet al-
A. True ways balances and helps in maintaining
the accuracy of financial records.
B. False
D. It is only used for tax purposes
716. Which of the following is a liability?
A. Machinery 722. FOB destination point means
B. Credit suppliers for goods A. buyer pays freight cost
C. Motor vehicles B. seller pays buyer
D. cash at bank C. seller gets discount
717. Income and Expenditure Account is pre- D. seller pays fright cost
pared by adopting accrual principle of Ac- 723. The process of Writing Financial Transac-
counting. tion according to their nature is known as
A. True ?
B. False A. Journalising
718. Accruing Unpaid Expenses What would B. Ledger Posting
be the impact on revenue? C. Trial Balance
A. Revenue would decrease D. Financial Statement Preparation
B. Revenue would increase
724. Which of the following questions will be
C. Revenue would remain constant asked by the owner when using the com-
D. All of the above pany’s accounting information?
719. How do you read 5/10, n/30 term A. Should I invest in this business?
A. 10 percent discount if paid in 30 days B. Is there enough money to pay suppli-
ers?
B. 5 percent discount if paid in 10 days
C. 5 percent discount if paid in 30 days C. How is my share of profits?
D. get a discount if paid in 30 days D. How much tax will this business be
able to contribute to the national account?
720. Calculate the total assets? Cur-
rent Assets-$100.00Fixed Assets- 725. Limitations of Financial Accounting
$200Current Liabilities-$300Capital- A. Does not consider human beings as an
$100 asset of the concern
A. 300 B. Does not take into consideration non
B. 400 monetary transactions
C. 500 C. Possible to draw them wrongly
D. 200 D. all of the above

726. The cost of goods sold (COGS) is the ac- B. Source Document
countant’s term for the direct costs of the- C. Fiscal Year
goods thatareactually sold, e.g. raw ma-
terial costs D. None of the Above
A. TRUE 731. Which of the following statements about

B. FALSE contingent assets and contingent liabilities
are correct? 1-A contingent asset should
727. Sam Ryo is the proprietor (owner) of be disclosed by note if an inflow of eco-
NARAYAN CHANGDER
Sam’s, a retailer of golf apparel. When nomic benefits is probable. 2-A contingent
recording the financial transactions of liability should be disclosed by note if it is
Sam’s, Sam does not record an entry for probable that a transfer of economic ben-
a car he purchased for personal use. Sam efits to settle it will be required, with no
took out a personal loan to pay for the car. provision being made. 3-No disclosure is
What accounting concept guides Sam’s be- required for a contingent liability if it is not
havior in this situation? probable that a transfer of economic bene-
A. Monetary unit assumption fits to settle it will be required. 4-No dis-
closure is required for either a contingent
B. Cash basis concept liability or a contingent asset if the likeli-
C. Economic entity assumption hood of a payment or receipt is remote.
D. Pay back concept A. 1 and 4 only
728. If I buy a machine from you under Higher B. 2 and 3 only

Purchase System, I am called a C. 2, 3 and 4
A. Purchaser D. 1, 2 and 4
B. Higher Vendor 732. The act that repealed earlier ordinances
C. Higher customer and provide formal rules on accounting and
D. Higher Purchaser requirement for true and fair view report-
ing.
729. What is the main objective of managerial A. Financial Reporting Act 2016
accounting?
B. Companies Act 1997
A. To create internal reports for man-
agers C. Financial Reporting Act 1997
B. To assist management in decision- D. Companies Act 2016

making 733. Amitav purchased a van costing $20 000.
C. To allocate resources within a busi- He provided an old van with a net book
ness value of $8 000 in part exchange. There
D. To report on a business’s financial was a profit on disposal of $1 500.What
health to external parties was the cash outflow arising from the pur-
chase?
730. The accounting period of a business is sep- A. $9 500
arated into activitiess that help the busi-
ness keep its accounting records in an or- B. $10 500
derly fashion. C. $12 000
A. Accounting Period Cycle D. $13 500

734. purchasing an asset would be an example 740. An asset account refers to money or fi-
of nancial obligations owed by the business.

A. cash inflow A. True
B. cash outflow B. False
741. Companies have ?

735. Which one of the following industries
uses limestone as a raw material? A. Unlimited liability
A. Aluminum B. Limited liability
B. Cement 742. Current Asset(s)
C. Sugar A. Account Payable
D. Jute B. Note Payable
C. Account Receivable
736. A financial ratio is a comparison between
two components of financial information. D. Furniture and Equipment
A. True 743. The receipt of cash from customers in pay-

ment of their accounts would be recorded
B. False by a
737. A person who woes money to the busi- A. debit to accounts payable; credit to
ness is know as cash
A. A debtor B. debit to cash; credit to accounts
payable
B. A creditor
C. debit to accounts receivable; credit to
C. All of the above cash
D. None of this D. debit to cash; credit to accounts re-
ceivable
738. Net profit formula is:
744. Owner’s Contributions are the cash or as-
A. =COGS = Opening stock + sets removed from an event business
Purchases-Closing stock
A. True
B. =Gross profit-Expenses
B. False
739. Describe the components of the state-
745. ALL OF THE FOLLOWING OCI ITEMS MAY
ment of cash flows.
NOT BE RECLASSIFIED TO PROFIT OR
A. Income activities, expense activities, LOSS, EXCEPT:
and profit activities A. UNREALIZED LOSS ON DEBT INVEST-
B. Operating activities, investing activi- MENT AT FVOCI
ties, and financing activities B. UNREALIZED LOSS ON EQUITY IN-
C. Sales activities, marketing activities, VESTMENT AT FVOCI
and production activities C. REMEASUREMENT LOSS ON DEFINED
D. Debt activities, equity activities, and BENEFITS PLANS
asset activities D. REVALUATION SURPLUS

746. What is the importance of financial state- 750. If a bank agrees to lend a certain amount
ments for investors? of money to a company using a bill of ex-
A. Financial statements only provide irrel- change that has been signed and has a ma-
evant information for investors turity date, then the correct journal entry
is
B. Investors do not rely on financial state-
ments for making investment decisions A. Cash (debit) to Current liabilities
(credit)
C. Financial statements have no impact
on investors’ decisions B. Current Liabilities (debit) to Cash
NARAYAN CHANGDER
(credit)
D. Financial statements provide impor-
tant information about the financial health C. Kas (debit) pada Wesel bayar (kredit)
and performance of a company, which D. Wesel pay (debit) pada Kas (kredit)
helps investors make informed decisions
about buying, holding, or selling stocks or 751. Which of the following could be a journal
bonds. entry that increases equity for the Walt
Disney Company?
747. On November 9, 20x1, Entity G received A. Dr W. Disney WithdrawlsCr Cash
$1, 200 from a subscriber to a magazine
issued by the entity. Each issue of the B. Db Cash Cr Service Revenue
magazine is published and sent to sub- C. Db Salaries ExpenseCr Salaries
scribers on the first day of each month. Payable
Prepare journal entries on the following D. Db EquipmentCr Cash
dates:December 1, 20x1
752. Which of the following may be used to
A. Unearned Revenue (D) 100 Revenue
calculate the cost of production?
(K) 100
A. Prime cost + factory overheads-
B. Unearned Service Revenue (D)
opening work in progress + closing work
1200Service Revenue (K) 1200
in progress.
C. Unearned Service Revenue (D)
B. ....Prime cost-factory overheads-
100Cash (K) 100
opening work in progress + closing work
D. Unearned Service Revenue (D) in progress.
1200Cash (K) 1200
C. Prime cost + factory overheads-
748. What is an asset? opening work in progress-closing work in
A. describes what an organization has in- progress.
vested in D. Prime cost + factory overheads +
B. describes non-owner financing opening work in progress-closing work in
progress.
C. describes owner financing
D. describes the success of the business 753. The act of buying an asset without hav-
ing to make full payment in the immediate
749. Which of the following is nominal account future is known as:
A. Capital Account A. Hire Purchase
B. Drawings Account B. Finance lease
C. Interest Account C. Operating lease
D. Prepaid Interest Account D. Sale and lease back

754. A summary of the revenue and expenses 759. Which of the following are assets?
for a specific period of time, such as a A. buildings you own
month or a year. Shows the Net Income

of a business. B. land
A. Statement of Cash Flows C. office equipment

D. all of the answers are correct
B. Balance Sheet
C. Income Statement 760. Define the term ‘depreciation’ in the con-
text of financial accounting.
D. Retained Earnings Statement
A. The process of acquiring a new asset
755. Assets that are kept for less than a year for a business
is classified as: B. Allocation of the cost of a tangible as-
A. Fixed assets set over its useful life
B. Non-current assets C. The increase in value of an asset over
time
C. Current assets
D. Selling an asset at a higher price than
D. Liabilities its original cost
756. Income earned in advance 761. Is gross salary before or after deduc-
tions?
A. Liability
A. Before
B. Asset
B. After
C. None
C. During
D. none of above
757. Which should not be included in the acqui-
762. Pryor Company receives net proceeds of
sition cost of an asset.
$42, 000 on the sale of stock investments
A. Taxes paid at time of purchase that cost $39, 500. This transaction will
B. Transportation charges result in reporting in the income statement
a:
C. Interest paid on the loan to purchase
A. loss of $2, 500 under “Other expenses
the asset
and losses.”
D. Installation charges
B. loss of $2, 500 under “Operating ex-
penses.”
758. Principle that assumes the business is in
business for the long haul and is not ex- C. gain of $2, 500 under “Other revenues
pected to be interrupted or to close down and gains.”
in the short run. D. gain of $2, 500 under “Operating rev-
A. Principle of Consistency enues.”
B. Principle of Continuity 763. Journal Proper records
C. Principle of Permanence of Methods A. All transactions
D. Principle of Periodicity B. Only Credit Transaction

C. Only Cash Transaction C. Prepaid insurance expense (+A) 3,

D. All the transaction not recorded in sub- 000 Insurance expense (-E) 3, 000
sidiary book D. Prepaid insurance expense (+A) 9,
000 Insurance expense (-E) 9, 000
764. Inventory recording system by carrying
out stock taking at the end of each period 768. A consignee is paid del-credere commis-
A. Periodic System sion for bearing the risk of bad debts on
account of credit sales made by him.
B. Perpetual System
NARAYAN CHANGDER
A. True
C. Imprest System
B. False
D. Fluctuative System
769. Which of the following is not an Asset ac-
765. Purchased for meeting consumption count?
amounting to Rp. 300, 000.00 The jour-
nal to record the above transactions using A. Accounts Receivable
the variable funds method is B. Unearned Revenue
A. Consumption expenses IDR 300, 000 C. Cash
Petty Cash IDR 300, 000 D. Prepaid Expense
B. Consumption expenses IDR 300, 000
Cash IDR 300, 000 770. WHICH OF THE FOLLOWING MAYBE
CONSIDERED AN SME IN THE PHILIP-
C. Not journaled PINES?
D. Consumption expenses IDR 300, 000 A. A BANK WITH TOTAL ASSETS OF P100,
Bank cash IDR 300, 000 000, 000
766. Financial accounting reports are produced B. AN INSURANCE COMPANY WITH TO-
to meet the needs of: TAL LIABILITIES OF P230, 000, 000
A. Investors and employees of the enter- C. A MANUFACTURING COMPANY WITH
prise TOTAL ASSETS OF P500, 000, 000
B. Investors and lending peo- D. A RETAIL COMPANY WITH TOTAL LIA-
ple/institutions BILITIES OF P200, 000, 000
C. Corporate employees and lending peo- 771. Depreciation is calculated on
ple/institutions
A. Asset
D. Investors and customers
B. Liability
767. On October 1, 2020, the $12, 000 pre- C. capital
mium on a one-year insurance policy for
the building was paid and recorded as Pre- D. Closing Stock
paid Insurance Expense. On December 31, 772. COST ACCOUNTING IS USEFUL TO
2020 (end of the accounting period), what
adjusting entry is needed? A. CONTROLLING COST
A. Insurance expense (+E) 2, 000 Pre- B. ASCERTAINMENT OF FINANCIAL POSI-

paid insurance expense (-A) 2, 000 TION
B. Insurance expense (+E) 3, 000 Pre- C. FIND OUT PROFIT OR LOSS

paid insurance expense (-A) 3, 000 D. ALL THE ABOVE

773. Where is profit recorded 777. Reducing balance method for deprecia-
tion is followed to have a uniform charge
A. Current Asset
for depreciation and repairs and mainte-

B. Current liability nance together.
C. OE A. True
D. Non current asset B. False
774. A three column cash book contains column 778. What is the role of management in using
for financial accounting information?
A. cash, assets and liabilities A. To only focus on short-term financial
goals and ignore long-term implications
B. bank, cash and asset
B. To rely solely on financial accounting
C. cash, bank and return information without considering other fac-
D. discount, cash and bank tors
C. To make informed decisions, monitor
775. Who is this? financial health, and communicate finan-
cial performance.
D. To ignore financial information and
make decisions based on intuition
779. The originator of Double Entry System
A. Elon Musk
B. Bruce Lee
A. Lucas Pacioli
C. Jeff Bezos
B. Marshall
D. Bernard Arnault
C. Pickles
776. Departments operate in the same build- D. Batliboi
ing along with the main office
780. Identify the type of expenditure. Cost
A. Yes
of rebuilding warehouse wall which had
B. No fallen down
C. None of the above A. Capital
D. All of the Above B. Revenue

781. A place or location within an account- 784. A bank reconciliation statement is

ing system in which the increases and de-
A. Part of the cash book
creases in a specific asset, liability, or eq-
uity item is recorded and stored is called B. Part of Bank account
a(n): C. Part of financial statement
A. Journal D. None of the above
B. Ledger
785. Debenture Interest is
NARAYAN CHANGDER
C. Trial balance
A. A long term loan
D. Account
B. Interest earned from a bank
E. Chart of accounts
C. A payment made to a shareholder
782. Assume that Company ABC purchased D. Interest paid on a debenture
real estate for cash of Rp. 500, 000, 000,
-. On the land stood an old warehouse 786. Trading account is prepared to find out
which had to be razed because it was not the Gross profit or Gross loss of the or-
suitable for the company’s intended use. ganization.
After deducting the proceeds from the sale
of the remains of the old building, ABC A. True
Company still had to spend Rp. 60, 000, B. False
000, -. The notary fee is IDR. 10, 000,
000, -, and brokerage commission of Rp. 787. Module in MYOB to record cash receipt
8, 000, 000, -which is also borne by the transactions
company. How to record the land pur-
A. Purchases
chase.
B. Sales
A. Tanah 500.000 (K) Kas 500.000
C. Banking
B. Kas 500.000 (K) Tanah 500.000
D. Inventory
C. Tanah 578.000 (K) Kas 578.000
D. Kas 578.000 (K) Tanah 578.000 788. Which of the following is not an assets
A. Buildings
783. Bought a factory machine for Rp. 55,
000, 000, related additional costs include, B. Debtors
VAT of Rp. 5, 500, 000, insurance pre- C. Loan from K Harris
mium of Rp. 550, 000 and machine instal-
lation costs of Rp. 1, 450, 000. then the D. Cash balance
purchase price is
789. What is the total cost with sales tax?
A. Rp. 62.500.000 Price $330.00 Tax 7%
B. Rp. 55.000.000 A. $360.00
C. Rp. 65.500.000 B. $375.00
D. Rp. 56.450.000 C. $353.10
E. Rp. 55.550.000 D. $23.10

790. tax on company profits B. An increase in an asset from incidental

A. Income tax transactions

B. Inheritance tax C. An increase in a liability from inciden-
tal transactions
C. VAT
D. Corporation tax D. A decrease in a liability from primary
operations
791. A properly designed internal control sys-
tem: 796. Which of the following item will appear
on the credit site of the Profit And Loss
A. Lowers the company’s risk of loss
Appropriation Account?
B. Insures profitable operations
A. Interest On Capital
C. Eliminates the need for an audit
B. Interest On Drawings
D. Requires the use of non-computerized
systems C. Partners’ Drawings
792. What is the correct double entry for part- D. Partners’ Salaries
ners introduce capital?
797. Accounting equation is stated as
A. DR Assets CR Partners Capital
A. Liabilities-Assets=Capital
B. DR Assets CR Partners Current
C. DR Assets CR Appropriation B. Assets-Liabilities=Capital
D. DR Capital CR Assets C. Assets+Capital=Liabilities

D. none of above
793. Branches of “Accounting”
A. financial accounting 798. Due to the extreme financial difficulties,
B. coat accounting an entity negotiated a restructuring of a
10%, P5, 000, 000 note payable due on
C. management accounting
December 31, 2019. The unpaid interest
D. all of the above on the note on such date is P500, 000. The
creditor agreed to reduce the face amount
794. If total liabilities decreased by $40, 000
to P4, 000, 000, forgive the unpaid inter-
and owner’s equity increased by $30, 000
est, reduce the interest rate to 8% and
during a period of time, then total assets
extend the due date three years from De-
must change by what amount and direction
cember 31, 2019. The present value of 1
during that same period?
at 10% for three periods is 0.75 and the
A. $10, 000 decrease present value of an ordinary annuity of 1
B. $10, 000 increase at 10% for three periods is 2.49. Under
IFRS, what is the gain on extinguishment
C. $50, 000 decrease
for 2019?
D. $50, 000 increase
A. 1, 703, 200
795. According to the FASB conceptual frame- B. 1, 203, 200
work, an entity’s revenue may result from
C. 2, 000, 000
A. A decrease in an asset from primary
operations D. 540, 000

799. not include overhead expenses re- 803. Which of the following statements con-
lated to the general operation of the busi- cerning reconciliation accounts are true?
ness. A. Reconciliation account for customers
A. Gross Profit is accounts payable
B. SG & A Expenses B. Reconciliation account for customers
is accounts receivable
C. Indirect Expenses
C. Reconciliation account for vendors is
D. Cost of Goods Sold
NARAYAN CHANGDER
accounts payable
800. Cost Plus Profit is known as D. Reconciliation account for vendors is
accounts receivable
A. Invoice Price
B. Loaded Price 804. Which of the following best describes the
operative chart of accounts?
C. A or B
A. Contains the operational accounts that
D. None of the Above are used to record the financial impact of
an organization’s day-to-day transactions
801. In reference to intercompany transac-
tions between an investor and an investee, B. Used to enable companies to meet
when the investor can significantly influ- special country-specific reporting require-
ence the investee, which of the following ments
statements is correct, assuming that the C. Contains accounts that are used by
investor is using the equity method? multiple companies to consolidate their fi-
A. There is the presumption of arms- nancial reporting
length bargaining between the related D. Contains only accounts payable trans-
parties. actions
B. As long as the investor recognizes the E. Contains only accounts receivable
effects of the transaction in its financial transaction
statements, it is not required to provide
any additional disclosures. 805. During 2015, Rani sold goods costing $1,
500 to its subsidiary, Moly, at a gross
C. In reporting its share of earnings and profit of 20%. Moly had $300 of these
losses of an investee, the investor must goods on hand at Dec 31, 2015. Which of
eliminate the effect of profits and losses the following journal entry is recorded by
on the intercompany transactions until Moly in 2015?
they are realized.
A. Dr. CoGS $1, 575Cr. Inventories $1,
D. None of the above is correct. 575
802. “Assets = Liabilities + Owner’s Equity” B. Dr. Cash in Bank 1, 875Cr. Sales 1, 875
is referred to in accounting as C. Dr. CoGS $1, 500Cr. Inventories $1,
500
A. the basic accounting equation.
D. Dr. Cash in Bank $1, 875Cr. Invento-
B. the balance sheet.
ries $1, 875
C. the accountant’s creed.
E. Dr. Inventories $1, 800Cr. Cash in
D. the accountant’s motto. Bank $1, 800

806. The assets that can be easily converted 811. Assets normally show
into cash within a short period, i.e., 1 year A. credit balances.
or less are known as

B. debit balances.
A. CURRENT ASSETS
C. debit and credit balances.
B. FIXED ASSETS
D. debit or credit balances.
C. FICTITIOUS ASSETS
812. Which of the following group belongs to
D. INVESTMENT
current assets?
807. Where was the first successful textile A. Cash at bank, motor vehicle, invento-
mill established in India? ries
A. Bengal B. Account receivable, inventories, cash
B. Bangalore at bank
C. Mumbai C. Cash in hand, furniture, inventories
D. Ahmedabad D. Land, building, machinery
808. The basic principle of a closing entry is 813. The production cost is the total of:
that, the account to be closed should be A. A. prime cost + factory overhead ex-
credited if it has a debit balance and the penses
account to which it is transferred should B. B. direct labour + direct materials +
be debited. direct expenses
A. True C. C. administrative expenses + selling
B. False expenses
809. The business entity concept means
A. The owner is part of the business en- 814. Accounting information is if it is capa-
tity ble to provide feedback.
B. An entity is organised according to that A. reliable
country’s law B. consistent
C. An entity is organised according to teh C. relevant
rules set by the MASB
D. comparable
D. The entity is an individual economic
unit for which data are recorded, anal- 815. Which of these is not included as a sepa-
ysed, and reported rate item in the basic accounting equation?
810. The process of transferring the debit &

credit items from a journal to their respec-
tive a/c in the ledger is termed as?
A. Ledger Posting
B. journalising
C. Balancing
D. Accounting

A. ASSETS with 4/30/20 bank statement 940De-

B. REVENUES posits in transit, 4/30/20 9, 000Out-
standing checks, 4/30/20 9, 300Bank
C. LIABILITIES service charges for April 60What should
D. STOCKHOLDERS EQUITY be the adjusted cash balance at April 30,
2020?
816. A company’s list of all ledger accounts A. RM75, 100.
and the identification numbers assigned to
each account. B. RM75, 800.
NARAYAN CHANGDER
A. Journal C. RM75, 920.
D. RM76, 500.
B. Source document
C. Chart of accounts 821. Concept:When a business activity is large
enough to impact business decisions, it
D. Trial balance
should be recorded clearly in the financial
817. Accrued income is added to and it is statements
treated as an A. realization of revenue
A. Income, asset B. materiality
B. Income, liability C. unit of measurement
C. Income, expense D. consistent reporting
D. Expenses, asset 822. The accounting equation must always be
818. If total expenses exceed total revenue, a A. balanced

net loss is reported B. uneven
A. True C. zero
B. False D. equal to the square root of 5
819. If the Matrenakan Museum, a not-for- 823. The balance in the office supplies account
profit organization, received a contribu- on May 1 was $6, 380, supplies pur-
tion of historical artifacts, it need not rec- chased during May were $4, 740, and the
ognize the contribution if the artifacts are supplies on hand at May 31 were $2, 360.
to be sold and the proceeds used to The amount to be used for the appropriate
adjusting entry is:
A. Support general museum activities.
A. $4740
B. Acquire other items for collections.
B. $8740
C. Repair existing collections.
C. $8760
D. Purchase buildings to house collec-
D. $13480
tions.
824. What is a bank statement?
820. In preparing its bank reconciliation
for the month of April 2020, Leno, A. A statement prepared by a bank to
Inc. has available the following in- show business profits
formation.Balance per bank statement, B. A statement prepared by a bank and
4/30/20 RM76, 800NSF check returned sent to a current account holder

C. A statement prepared by a business B. Limited liability Partnership

owner to show monthly bank transactions
C. Partnership firm

D. A statement prepared by a business
D. Public Limited Company
owner to show daily cash transactions
825. Agreement Between Partners is Known 830. Item 19 refers to the following:Factory
as workers’ wages-$2 250Direct materials-
$3 200Factory lighting-$550Factory man-
A. Partnership Deed ager’s salary-$2 400Indirect materials-
B. Articles of Partnership $625 What is the total value of direct ex-
C. A or B penses?
D. None of the Above A. $3 200

B. $5 200
C. $5 450
D. $9 025
831. Which is not a limitation of financial ac-

counting?A. Inadequate information to fix
up the price of products manufacturedB.
A. 1, 900, 000 Lack of data for comparison of cost of op-
eration of the firm with other firms in the
B. 2, 900, 000
industryC. The data available is historical
C. 2, 350, 000 in natureD. Complies with the various le-
D. 400, 000 gal requirements
A. Inadequate information to fix up the
827. What type of accounting do you typically
price of products manufactured
see in financial accounting?
A. cash B. Lack of data for comparison of cost of
operation of the firm with other firms in
B. accrual the industry
C. magic C. The data available is historical in na-
D. tax ture
828. Which item is not a commercial transac- D. Complies with the various legal re-
tion? quirements
A. Buy a computer for cash 832. What portion of the subsidiary stock-
B. pay off debt holders’ equity account balances should be
C. Borrow money from the bank eliminated in preparing the consolidation
balance sheet?
D. Product demo
A. Common stock
829. Which of the following business organiza-
B. Additional paid in capital
tion can issue their shares to general pub-
lic? C. Retained Earnings
A. Private limited Company D. All of the balances are eliminated

833. Assets are monies the company earns by 838. An established business will be following
selling its products and services. which method of accounting?
A. True A. single entry system
B. False B. Double entry system
C. multiple entry
834. Who is often referred to as the “Fa-
ther of Nigerian Accountancy” and is rec- D. none of above
ognized as a pioneering figure in the ac-
NARAYAN CHANGDER
839. What is the purpose of the statement of
counting profession in Nigeria?
retained earnings?
A. Ngozi Okonjo-Iweala
A. To calculate the total assets of a com-
B. Olusegun Obasanjo pany
C. Akintola Williams B. To determine the market value of the
company’s stock
D. Where is Dangote?
C. To track the number of employees in
835. 1) Trial Balance. 2) Journal entries. the company
3) Financial statement. 4) Ledger ac- D. To show the changes in the retained
count.Choose the correct order. earnings account over a specific period
A. 1-3-4-2
840. Cash and cash equivalents does not in-
B. 2-4-1-3 clude
C. 2-1-4-3 A. Cheques
D. 4-2-1-3 B. Balance with banks
836. The portion of called-up capital for which C. Bank deposits with more than 12
the shareholders made payment is called months maturity
D. Inventories
A. Paid-down Capital 841. The balance sheet heading will specify a
B. Subscribed Capital A. Period Of Time
C. Paid-up Capital B. Point In Time
D. Called-up Capital
842. This type of accounting is mainly for in-
837. The approach to preparing financial state- ternal users
ments based on recognizing revenues A. Management Accounting
when they are earned and matching ex-
penses to those revenues is:
A. Accrual basis accounting 843. On June 1, 2020, Sony acquires 100%
of Mel for $90, 000. On this date, Mel
B. The operating cycle of a business had assets of $60, 000. Assume the book
C. Cash basis accounting value and fair value of Mel’s net assets
were equal at the acquisition date. What
D. The revenue recognition principle
is the record at Mel when acquired by
E. The matching principle Sony?

A. Dr. Cash in Bank $90, 000Cr. Invest- 848. Osa started business with Le40,
ment in Sony $90, 000 000cash. The accounting entry is debit

B. Dr. Investment in Sony $90, 000Cr. A. cash account; credit capital account
Cash in Bank $90, 000 B. capital account; credit cash account
C. Dr. Capital Stock $90, 000Cr. Cash in C. purchases account; credit cash ac-
Bank $90, 000 count
D. Dr. Cash in Bank $90, 000Cr. Capital D. expenses account; credit capital ac-
Stock $90, 000 count
E. None of above
849. Goods worth rupees 7000 given away as
844. An increase in the balance in a retailer’s charity should be credited to
Merchandise Inventory.
A. Sales account
A. Operating
B. Purchases account
B. Investing
C. Charity account
C. Financing
D. Trustee account
D. Supplemental
850. If the company does not record petty cash
845. What are the External Users of Financial disbursements from the beginning until the
Accounting? petty cash is replenished then the petty
A. Suppliers cash cashier is held accountable
B. Creditors A. Petty cash journal
C. Customers B. Petty cash card
D. Employees C. Petty cash voucher
E. All of the above D. Cash disbursement journal
846. Withdrawals by the proprietor would: 851. When payment is made to a supplier
for goods previously purchased on account,
A. Reduced both assets and owner equity
the debit is to:
B. Reduced assets and increase liabilities
A. an asset account
C. Reduced owner equity and increase li-
B. a liability account
abilities
C. an owner’s equity account
D. none of above
D. an expense account
847. Which of the following is a correct journal
entry for the sale of inventory on credit? 852. What do we call a cheque that the bank
A. Debit Cash, Credit Sales Revenue refused to pay the payee because the
drawer has insufficient funds in his current
B. Debit Accounts Receivable, Credit account?
Sales Revenue
A. Stale cheque
C. Debit Sales Revenue, Credit Accounts
Payable B. Dishonoured cheque
D. Debit Accounts Payable, Credit Sales C. Sad cheque

Revenue D. Dubious cheque

853. Identify the type of expenditure. Build- 859. At 31 May 2016 Moo was being sued
ing extension to warehouse by a supplier over a disputed contract-
A. Capital Moo’s solicitors advise that the supplier is
likely to be successful and that damages
B. Revenue of $100, 000 will be awarded against
themHow should this be dealt with in the
854. Account currency determines the currency
accounts?
in which all the transactions are recorded.
A. A disclosure in the accounts
A. True
NARAYAN CHANGDER
B. Dr Expense 100, 000 Cr Provision 100,
B. False
000
855. In the case of cumulative preference
860. Name the account credited for credit pur-
shares unpaid dividend is treated as
chases
A. unpaid capital
A. Purchases account
B. remuneration B. Creditor account
C. Arrears C. cash account
D. cumulative preference D. Debtor account
856. refers to the final section of a Profit 861. Mirah Company compiled the follow-
and loss account and shows how the net ing financial information as of December
profit after interest and tax is distributed, 31, 2020:Revenues $340, 000Owner’s
i.e.dividends to shareholders and/or re- Capital (1/1/20) 140, 000Equipment
tained profit kept by the business. 80, 000Expenses 240, 000Cash 90,
A. A balance sheet 000Owner’s Drawings 20, 000Supplies
B. The appropriation account 20, 000Accounts payable 40, 000Ac-
counts receivable 70, 000Mirah’s assets
C. Cost of goods sold on December 31, 2020 are
D. Retained profit A. $190, 000.
857. Result of operation of the Business Activ- B. $260, 000.
ity C. $360, 000.
A. Standing of Business in the Financial D. $480, 000.
Terms at any given point of time
862. P. Hack has a manufacturing business.
B. finding profit only
The cost of his raw materials is $1, 900.
C. finding financial position only Rates and rent total $2, 000 and factory
D. none of the above wages amount to $2, 500.The number of
units produced is 640, What is the cost of
858. A ONE unit?
A. B A. $4
B. C B. $6
C. D C. $10
D. none of above D. $13

863. The expense created by allocating the B. Mineral based

cost of plant and equipment to the periods
C. Both Agro and mineral based
in which they are used, representing the

expense of using the assets, is called: D. None of these
A. Accumulated depreciation
868. Opening Stock-47, 000:Purchases-48,
B. The cash basis of accounting
900:Wages-3, 500:Sales-1, 27, 000:Clos-
C. The matching principle ing Stock-50, 000. Gross Profit-?
D. Depreciation A. 68, 200
E. Allowance for depreciation
B. 77, 600
864. Diminishing balance method is proper for C. 49, 400
A. Fixed Assets
D. 99, 400
B. Liabilities
C. Copyright 869. Office Salaries expense, rent expense,
D. Livestock office supplies exp. are all included in
A. Administrative expenses
865. In accordance with IAS 36 Impairment of
Assets which of the following statements B. Selling Expenses
are true1. An impairment review must be
carried out annually on all intangible as- C. Manufacturing expenses
sets.2. If the fair value less costs to sell of D. Merchandising expenses
an asset exceed the carrying amount there
is no need to calculate a value in use.3. Im- 870. What are the key differences between fi-
pairment is charged to the statement of nancial accounting and managerial account-
profit or loss unless it reverses a gain that ing?
has been recognised in equity in which case
it is offset against the revaluation surplus A. Financial accounting and managerial
accounting are the same and can be used
A. 1 and 3 only interchangeably.
B. 2 & 3 only
B. Financial accounting provides histor-
C. 1 and 2 only ical financial information for external
D. All three stakeholders, while managerial account-
ing provides future-oriented financial in-
866. Revenue = 1000Cost of Goods Sold = formation for internal stakeholders.
200Expenses = 300Net Profit =?
C. Financial accounting provides future-
A. 800
oriented financial information for internal
B. 500 stakeholders, while managerial account-
C. 700 ing provides historical financial informa-
tion for external stakeholders.
D. 300
D. Financial accounting is only used by
867. Classification of industry based on source small businesses, while managerial ac-
of raw material: counting is only used by large corpora-
A. Agro Based tions.

871. On January 2 2011, ABC company pur- 876. In preparing its bank reconciliation
chased a machine for Rp. 100, 000, 000 for the month of April 2020, Sells,
with an economic life of 4 years. The ma- Inc. has available the following in-
chine has no residual value. What is the formation.Balance per bank statement,
depreciation expense at the end of 2012 4/30/20 RM40, 290NSF check returned
if you use the double declining balance with 4/30/20 bank statement 1, 450De-
method? posits in transit, 4/30/20 10, 200Out-
A. Rp. 12.500.000 standing checks, 4/30/20 15, 060Bank
service charges for April 60What should
NARAYAN CHANGDER
B. Rp. 25.000.000 be the adjusted cash balance at April 30,
C. Rp. 50.000.000 2020?
D. Rp. 6.250.000 A. RM33, 920.
E. Rp. 75.000.000 B. RM33, 980.
872. A record of all the transactions of a busi- C. RM35, 370.

ness. D. RM35, 430.
A. ledger
877. Which of the following records the impact
B. income statement of a transaction step on financial account-
C. balance sheet ing?
D. journal A. Financial accounting document
B. Parallel accounting document
873. This type of accounting is mainly for ex-
ternal users C. Sub-ledger
A. Financial Accounting D. Subsidiary ledger
B. Management Accounting E. None of the above
874. In case of shortage, under stock and 878. A decrease in owner’s equity resulting
debtors system the profit element is deb- from the operation of a business
ited to
A. account
A. Branch stock a/c
B. capital
B. Branch Debtors a/c
C. asset
C. Branch expenses a/c
D. Branch adjustments a/c D. expense
875. Principle that says that statements must 879. It helps in calculating tax on business in-
be presented honestly and accurately at all come calculated for a particular time pe-
times. riod.
A. Principle of Sincerity A. Dual Aspect Concept

B. Principle of Consistency B. Revenue Recognition Concept
C. Principle of Prudence C. Accounting Period Concept
D. Principle of Noncompensation D. Going Concern Concept

880. What is the role of the IASB? B. Chua’s Company

A. Oversee the standard setting and reg- C. Sole Proprietorship

ulatory process D. Partnership
B. Formulate international financial re-
886. Generally the minimum rent is when
porting standards
there is strike
C. Review defective accounts
A. Fixed
D. Control the accountancy profession
B. Variable
881. Ram & Shyam are partners with the cap- C. No amount
ital of Rs.25, 000 and Rs.15, 000 respec-
D. Partially fixed and variable
tively. Interest payable on capital is 10%
p.a. Find the profit to be shared by the 887. Which of the following is the example of
partners if profit earned by the firm before internal users
interest charges is Rs.2, 400. A. Government
A. Rs.2500 and RS.1500 B. Investors
B. Rs.1500 and RS.900 C. Creditors
C. Rs.1200 and RS.1200 D. Employees
888. Journal entry will be made on returning
882. A trading account is prepared to disclose the amount of rejected applications-
the A. Share Application A/c Dr.To Share Cap-
A. appropriation account ital A/c
B. gross profit or loss for the year B. Bank A/c Dr.To Share Application A/c
C. accumulated fund for the year C. Share Application A/c Dr.To Bank A/c
D. gross profit on manufacturing D. Share Capital A/c Dr. To Share Appli-
cation A/c
883. Ledgers come after Journal Entries True
or False? 889. Examples of Liabilities include which of
the following:
A. True
A. Loans, credit cards, and real property
B. False
B. Loans, mortgage, and credit cards
884. A cashbook which records both cash and C. Loans, Art collection, and savings ac-
bank transactions is called a cashbook. count
A. single column D. Mortgage, credit card, and real prop-
B. flex erty
C. double column 890. Whcih of the following consist of only as-
D. hyper sets?
A. Car, Bank Loan, Computer
885. Legal form of business that faces financ-
ing problems because of the enterprise’s B. Creditor, Debtors, Cash at Bank
limited ability to raise capital. C. Debtors. Cash at bank, Building
A. Corporation D. Cash in hand, cash at bank, creditors

891. An outstanding check is one that has been curred during the same period for earning
issued but not yet reported on a bank that revenue is explained by concept
statement.
A. Objectivity
A. True
B. Matching
B. False
C. Dual Aspect
892. What is the main objective of financial ac- D. Accounting Cost
counting?
NARAYAN CHANGDER
A. To assist management in decision- 895. Choclate Chews Company gathered the
making following reconciling information in prepar-
ing its August bank reconciliation:Cash bal-
B. To create internal reports for man- ance per books, 8/31 $15, 900Deposits
agers in transit 900Notes receivable and inter-
C. To allocate resources within a busi- est collected by bank 8, 400Bank charge
ness for check printing 120Outstanding checks
D. To report on a business’s financial 12, 000NSF check 1, 200The adjusted
health to external parties cash balance per books on August 31 is
A. $10, 980.
893. IAS 10 Events after the reporting period
regulates the extent to which events after B. $11, 880.
the reporting period should be reflected in C. $22, 980.
financial statements. Which one of the fol-
lowing lists of such events consists only D. $23, 880.
of items that, according to IAS 10, should
896. The amount a business earns by selling
normally be classified as non-adjusting?
goods or services to its customers.
A. Insolvency of an account receivable
A. Expense
which was outstanding at the end of the
reporting period, issue of shares or loan B. Revenue
notes, an acquisition of another company C. Asset
B. Issue of shares or loan notes, changes
D. Liability
in foreign exchange rates, major pur-
chases of non-current assets 897. Generally a Journal is divided
C. An acquisition of another company, de- A. Into two parts
struction of a major non-current asset by
fire, discovery of fraud or error which B. Into four parts
shows that the financial statements were C. Into five parts
incorrect
D. Into eight parts
D. Sale of inventory which gives evidence
about its value at the end of the reporting 898. of Invoice is
period, issue of shares or loan notes, de-
A. 1/2 of cost
struction of a major non-current asset by
fire B. 1/4 of cost
C. 1/5 of cost
894. Revenues earned during an accounting pe-
riod are compared with the expenditure in- D. None of the Above

899. Down payment is the payment made 903. The extra cost a business pays for an-
A. At the time of paying the first instal- other business for beginning unusually
profitable.

ment
B. At the time of signing the agreement A. Copyrights
C. At the time of paying the second instal- B. Patents
ment C. Goodwill
D. At the time of paying the last instal- D. Franchises
ment
900. Wages and salaries will be recorded in
A. profit and loss account
B. balancesheet
C. Trading account debit side
D. trading account credit side
A. 27.00
901. Which of the following best describes
bookkeeping? B. 23.00
A. The interpretation of financial data C. 25.00
B. The preparation of tax returns D. 26.00
C. The systematic recording of financial 905. an account is a summary of at one
transactions place relating to a particular head
D. The analysis of financial statements A. all transactions
902. In the trial balance there is an Insurance B. some transactions
Expense account amounting to IDR 3, 600, C. journal
000.00 in debit. The insurance was paid
D. none
on March 1 2014 for 2 years. The adjust-
ing entry as of December 31, 2014 is 906. Which of the following includes ONLY Cur-
A. Insurance expense (D) IDR 1, 500, rent Liabilities include
000.00 Prepaid insurance (K) IDR 1, 500, A. trademark, creditors, mortgage
000.00
B. bank overdraft, mortgage, bank loan
B. Prepaid insurance (D) Rp. 1, 500,
C. Short-term loan, creditors, bank over-
000.00 Insurance Expense (K) Rp. 1, 500,
draft.
000.00
C. Insurance expense (D) Rp. 2, 100, D. cash in hand, bank balance, short term
000.00 Prepaid insurance (K) Rp. 2, 100, loan
000.00 907. Under the debtors system in branch a/c,
D. Prepaid insurance (D) Rp. 2, 100, credit sales are
000.00 Insurance Expense (K) Rp. 2, 100, A. Debited to branch a/c
000.00
B. Credited to branch a/c
E. Insurance expense (D) Rp. 3, 600,
000.00 Prepaid insurance (K) Rp. 3, 600, C. Debited to debtors a/c
000.00 D. Credited to debtors a/c

908. Financial Statements of a firm are pre- D. Prepaid Rent (DR) Rp. 6.300.000 Rent
pared every year on 31st March, accord- Expense (KRp. 6.300.000
ing to which concept?
912. Which of the following is NOT part of the
A. Money Measurement accounting process?
B. Revenue Recognition
A. Identifying financial matters.
C. Materiality
B. Recording financial transactions.
D. Accounting Period
C. Reporting financial events.
NARAYAN CHANGDER
909. S Company sold merchandise to B Com- D. Increase the income of the company.
pany on October 6, 2018 at a list price
of P150, 000, trade discounts of 5% and 913. Financial accounting is governed by
8%, FOB shipping point. Cash discount A. International Standard
terms:2/eom, n/60. Because defective
merchandise amounting to P10, 000 was B. Local standard
erroneously delivered, S Company issued a C. Local as well as International
credit memorandum to the buyer on Octo-
D. Top Management
ber 11, 2018. B Company paid in full the
balance due on October 25, 2018. The in- 914. Current Assets-Current Liabilities =?
voice price of goods purchased on October Helps to determine if a company can pay
6, 2018 is: its liabilities.
A. P131, 100 A. Quick Ratio
B. P130, 500 B. Current Ratio
C. P150, 000 C. Working Capital
D. For 122, 360 D. Return on Assets
910. How do we calculate Total Assets? 915. In Malaysia, which regulatory body over-
A. Fixed Assets-Current Liabilities sees the regulation and supervision of com-
B. Current Assets / Current Liabilities panies listed on the stock exchange (Bursa
Malaysia)?
C. Fixed Assets + Current Assets
A. Securities Commission Malaysia (SC)
D. Fixed Assets-Current Assets
B. Ministry of Finance Malaysia
911. Prepaid rent on September 30, 2021 was C. Malaysian Institute of Accountants
recorded as prepaid rent of Rp. 9, 000, (MIA)
000 for a period of 10 months. The correct
adjusting entry on December 31, 2021 D. Malaysian National Bank
is
916. Under instalment payment system the
A. Rent Expense (D) Rp. 3.600.000Pre- seller treats the transaction as a
paid Rent (K) Rp. 3.600.000
A. Cash sale
B. Rent Expense (D) Rp. 2.700.000Pre-
paid Rent (K) Rp. 2.700.000 B. Credit sale
C. Rent Expense (D) Rp. 9.000.000Pre- C. None of these

paid Rent (K) Rp. 9.000.000 D. none of above

917. The rental income that still needs to be re- 922. The owner invests personal cash in the
ceived as of December 31 is IDR 10, 000, business.-The Assets will
000

A. Increase
A. Account Receivable (D) Rp10.000.000
B. Decrease
Rent Revenue (K) Rp10.000.000
C. no affect
B. Account Receivable (D) Rp1.000.000
Rent Revenue (K) Rp1.000.000 D. none of above
C. Account Payable (D) Rp10.000.000
923. Receipt & Payment Account only records
Rent Revenue (K) Rp10.000.000
the revenue nature of receipts and ex-
D. Account Receivable (D) Rp10.000.000 penses.
Interest Revenue (K) Rp10.000.000
A. True
918. Misrepresenting the truth, cheating, or B. False
deceiving others on purpose.
A. Fraud 924. A business omitted discounts allowed of
$700 from its trial balance. During the
B. White Collar Crime
year a machine had been sold for cash of
C. Conning $500 but the only accounting entry made
D. none of above was a debit in the bank account.What is
the balance on the suspense account be-
919. If working capital of a company is nil, fore these errors are corrected?
what will be the current ratio? A. $200 debit
A. 1:1
B. $1200 debit
B. 0:1
C. $200 credit
C. 1:0
D. $1200 credit
D. 2:1
925. Current Assets / Current Liabilities =?
920. Which statement is true Measures a relationship among amounts,
A. Owners equity+assets=current lia- and facilitates comparisons among compa-
bilities nies of different sizes.
B. Total assets-Total liabilities=owners A. Quick Ratio
equity
B. Current Ratio
C. Income+liabilities =owners equity
C. Working Capital
D. none of above
D. Return on Assets
921. WHICH REPORT IS NOT A COMPONENT
OF THE FINANCIAL STATEMENTS? 926. Trial balance is prepared from
A. STATEMENT OF FINANCIAL POSITION A. Ledger
B. STATEMENT OF CHANGES EQUITY B. Ledgers and journal
C. BOARD OF DIRECTORS REPORT C. Ledger and cash book
D. NOTES TO FINANCIAL STATEMENTS D. None of these

927. Company A buys 70% ownership of com- C. costs that change depending upon the
pany B, an asset with a book value of IDR output
400, 000, 000 and a fair value of IDR 600,
D. the point in a business when the prof-
000, 000, then it will be recorded at?
its are equal to costs
A. Rp 600.000.000
B. Rp 560.000.000 932. General Nature items are Recording in
which account?
C. Rp 540.000.000
NARAYAN CHANGDER
A. General Trading Account
D. Rp 440.000.000
B. General Profit and Loss A/C
928. When is a suspense account prepared
C. Balance Sheet
A. when a Balance Sheet fails to balance
D. Position Statement of Departments
B. when a trial balance fails to balance
C. when an error of omission is corrected 933. The owner of business purchase a motor
D. when an error of principle is corrected van for his private use and it is not been
recorded in the business account. Which
929. Explain the concept of double-entry ac- accounting concept did it follow?
counting.
A. Monetary measurement concept
A. Double-entry accounting involves us-
ing only debit entries B. Consistency concept
B. Every transaction is recorded in at C. Business entity concept
least two accounts, with one debit and D. Materiality concept
one credit entry.
C. Every transaction is recorded in only 934. Income that has been earned but not yet
one account collected.
D. There is no need for both debit and A. accrued income
credit entries in double-entry accounting
B. prepaid income
930. The objective of branch accounting is to
C. unearned income
know
D. all of these
A. Profit and loss
B. Profit and loss of each department 935. The list of accounts unique to a specific
C. Profit and loss of head office company based on its business. These ac-
counts are used to track dollar amounts
D. Profit and loss of manufacturing com-
coming into and going out of a company.
panies
A. Chart of accounts
931. What are Fixed Costs?
B. T Account
A. the amount of money allocated for a
business to use in certain departments C. Accounts list
B. business costs, such as rent, that do D. none of above
not vary because of the amount of goods
produced 936. Which account is not a liability account?

940. The amount of money owed to others for

goods or services bought on credit.

A. accounts payable
B. Accounts receivable
C. Expenses
D. Loans
941. Cash received from Debtor will be

recorded in
A. ACCOUNTS PAYABLE
A. Cash Book
B. ACCRUED EXPENSES
B. Sales Book
C. CASH
C. Purchase Book
D. NOTES PAYABLE
D. Journal Proper
937. What is the transaction for the purchase
of supplies? 942. If general expenses and trade expenses
are given in Trial balance, then trade ex-
A. Debit Accounts payable, Credit sup- penses will be taken in
plies
A. Trading Account
B. Debit supplies, credit accounts
payable B. Profit and Loss Account
C. Debit supplies, credit Owner’s capital C. Balance Sheet
D. Debit unearned revenue, credit sup- D. None
plies
943. How do financial statements help stake-
938. If a Personal Account carrying Credit bal- holders make decisions?
ance is to be carried forward to the subse- A. By creating confusion and uncertainty
quent Accounting period it will be written
B. By providing important financial infor-
in
mation for decision-making
A. Dr side of Balance Sheet C. By providing irrelevant information
B. Cr. Side of Balance sheet D. By causing delays and inefficiencies
C. Liability side of Balance sheet
944. An amount owed by a business.
D. Asset side of Balance sheet
A. Asset
939. If petty cash is maintained using a fixed B. Liability
fund system, petty cash disbursement
transactions are recorded when C. Equity
A. Petty cash replenishment D. Revenue
B. Establishment of a petty cash fund 945. A record of all accounts used by a busi-
C. Petty cash withdrawals/disbursements ness is called a:
A. Journal
D. Making adjusting journals B. Book of original entry

C. General Journal B. Tangible asset

D. Trial balance C. Intangible asset
E. Ledger D. none of above
946. Which is not a benefit of financial account- 950. Which is not an asset in the balance sheet
ing?A. Maintaining systematic recordsB. of a bank?
Protecting and safeguarding business as-
setsC. Historical in natureD. Facilitates ra- A. Investments
NARAYAN CHANGDER
tional decision making B. Loans
A. Maintaining systematic records C. Cash & Balance with RBIRBI
B. Protecting and safeguarding business D. Deposits
assets
C. Historical in nature 951. In a business combination, which of the
following will occur?
D. Facilitates rational decision making
A. All identifiable assets and liabilities
947. What are the key differences between are recorded at fair value at the date of
cash basis accounting and accrual basis ac- acquisition.
counting?
B. All identifiable assets and liabilities
A. Cash basis records transactions when are recorded at book value at the date of
credit is exchanged, while accrual basis acquisition.
records transactions when they occur.
C. Goodwill is recorded if the fair value of
B. Cash basis records transactions when the net assets acquired exceeds the book
cash is exchanged, while accrual basis value of the net assets acquired.
D. None of the above is correct.
C. Cash basis records transactions when
invoices are exchanged, while accrual ba- 952. Double entries of:an owner investing
sis records transactions when they occur. cash into the business and bank in the
D. Cash basis records transactions when money to the bank
checks are exchanged, while accrual ba- A. Dr. OwnerCr. Bank
sis records transactions when they occur.
B. Dr. BankCr. Owner
948. Is the Proforma / Format of Journal En- C. Dr. CashCr. Capital
try is correct?
D. Dr. BankCr. Capital
953. What type of error is ‘the original figure

may be incorrectly entered although the
correct double-entry principle has been ob-
served using incorrect figure’.
A. Yes A. errors of omission
B. No B. errors of commission
949. Land is an example of C. errors of original entry
A. Current asset D. compensating errors

954. Bought goods worth $4000 on credit B. current asset

from Ben. What is the double entry to C. gain on plant asset
record this transaction?

D. modified half-year convention
A. Debit Purchases and Credit Cash
B. Debit Cash and Credit Purchases 960. Furniture and Fixtures is classified as
C. Debit Ben and Credit Purchases A. Current Asset
D. Debit Purchases and Credit Ben B. Current Liability
C. Noncurrent Asset
955. When the concept of ratio is defined in re-
spected to the items shown in the financial D. Noncurrent Liability
statements, it is termed as
961. What are the different types of financial
A. Accounting ratio ratios used in financial accounting analy-
B. Financial ratio sis?
C. Costing ratio A. Cash ratios, credit ratios, investment
ratios, and debt ratios
B. Liquidity ratios, profitability ratios, sol-
956. An expenditure that generates economic vency ratios, and efficiency ratios
benefits over more than one period is
C. Growth ratios, stability ratios, risk ra-
called
tios, and return ratios
A. Capital Expenditures
D. Income ratios, expense ratios, asset
B. Revenue Expenditures ratios, and liability ratios
C. Maintenance
962. Financial records keeping were believed
D. Replacement to have begun at about years BC
957. Accounting Equation? A. 4000
A. Asset + Liability = Equity B. 150
B. Asset = Equity + Liability C. 400
C. Asset + Equity = Liability D. 2400
D. none of above 963. Assets =?, Liabilities = $5, 000, Owner’s
Equity = $24, 000
958. Motor van, building, furniture are exam-
ples of A. $24, 000
A. Liabilities B. $29, 000
B. Capital C. $5, 000
C. Assets D. $28, 000
D. Equity 964. Which of the following is NOT one of the
959. Cash and other assets expected to be three main categories in the statement of
exchanged for cash or consumed within a cash flows?
year. A. Operating activities
A. loss on plant asset B. Investing activities

C. Financing activities 970. Shraddha Shipping Company started a

D. Administrative activities voyage on 1 November 2021 and com-
pleted it on 28 February 2022. Annual in-
965. Sources of increases to owner’s equity surance on freight= 18, 000= How much
are insurance amount will be recorded in the
A. expenses. voyage account?
B. additional investments by owners. A. 1, 800=

B. 3, 600=
NARAYAN CHANGDER
C. withdrawals by the owner.
C. 6, 000=
D. purchases of merchandise.
D. 18, 000=
966. When the share call is made and money
is due from shareholders, the entry will be 971. The procedure of transferring journal
entries to the ledger accounts is called
(Prosedur pemindahan akun dari jurnal ke
A. Debit:Cash Account Credit:Share Call buku besar disebut)
Account
A. journalizing.
B. Debit:Cash Account Credit:Share Capi-
tal B. analyzing.
C. Debit:Share Capital Credit:Share Call C. reporting.

Account D. posting.
D. Debit:Share Call Account Credit:Share 972. When considering an acquisition, which
Capital of the following is not a method by which
one company may gain control of another
967. Normative deriving the “true income”
company?
for an accounting period, or on discussing
the type of accounting information A. Purchase of the majority of outstand-
ing voting stock of the acquired company.
A. True
B. Purchase of all assets and liabilities of
B. False another company.
968. Why are redeemable shares shown under C. Purchase the assets, but not necessar-
long term loans rather equity? ily the liabilities, of another company pre-
A. Due to IAS 3 viously in bankruptcy.
B. Due to substance over form concept D. All of the above methods result in
a company gaining control over another
C. Due to Concept of limited liability company.
D. Due to separate legal entity
973. (i) :A document confirming confirma-
969. Under the accrual basis of accounting, tion that a payment has been received, e.g.
which of the following will not cause a cash receipt
change in owner’s equity? A. Debit advice
A. Purchase of land B. Credit advice
B. Advertising a product C. Receipt
C. Performing services on credit D. Invoice
D. All of the above E. Quotation

974. Which of the following is not the purpose 979. Book of original entry
of control account? A. Journal

A. Check on errors of addition B. Ledger
B. Locate errors C. Trial Balance
C. Locate missing figures D. Final Accounts
D. monitor the cash book 980. Accounting treatment for department and
branch account are one and the same
975. Assets-Liabilities = Owner’s Equity; the
basis for keeping all accounting records in A. True
balance. B. False
A. Fiscal Period
981. The firm that acquires a business and sell
B. Financial Statements it to another company for profit is
C. Accounting Equation A. seller
D. Financial Equation B. corporate company
C. promoter
976. A bank reconciliation should be prepared
D. a vendor
A. whenever the bank refuses to lend the
company money. 982. Which of the following statements is cor-
rect in relation to normative theories?
B. when an employee is suspected of
fraud. A. Normative theories often evolve as a
result of research performed in relation
C. to explain any difference between the
to positive theories
depositor’s balance per books and the bal-
ance per bank. B. Facts about current accounting prac-
tice are not considered in the develop-
D. by the person who is authorized to sign ment of normative theories
checks.
C. Normative theories are not likely to
977. Which term is associated with “right” or evolve from the consideration of positive
“right-side”? theories
A. Debit D. Normative theories always evolve as a
consequence or result of positive theories
B. Credit
983. Select the item which is not a component
C. Plus
of a balance sheet.
D. Minus
A. Fixed Assets
978. Who is known as the father of account- B. Current Assets
ing? C. Current Liabilities
A. F W Taylor D. Expenses
B. Fr Luca Pacioli
984. Advance payment of insurance premium
C. Sir William anson is
D. Warton A. Current Assets

B. Current Liabilities 989. As prepaid expenses expire with the pas-

sage of time, the correct adjusting entry
C. Fixed Liabilities
will be a
D. Fixed assets
A. debit to an expense account and a
credit to an expense account.
985. A trial balance prepared after adjust-
ments have been recorded is called B. debit to an asset account and a credit
to an asset account.
A. Income Statement
NARAYAN CHANGDER
C. debit to an expense account and a
B. Adjusted Trial Balance credit to an asset account.
C. Summary trial Balance D. debit to an asset account and a credit
D. Unadjusted Trial balance to an expense account.
990. Where is the birthplace of accounting?

986. Costs of Plant Assets in the form of land
include all costs incurred to obtain and pre- A. Mesopotamia
pare the land according to its intended use. B. Italy
The following is not included in the scope
C. Roman Empire
of Land Costs:
D. England
A. Purchase price
B. Intermediary commission 991. the use of a single financial ratio provides
a strong indication of a company’s financial
C. Notary fees position.
D. Maintenance cost A. True
B. False
987. According to accrual concept of account-
ing, financial or business transaction is 992. Borrowing money from a 3rd party or
recorded owner invests money in return for capital
A. when cash is received or paid stock.
B. when transaction occurs A. Operating activity

B. Financing activity
C. when profit is computed
C. Investing activity
D. when balance sheet is prepared
D. Accounting
988. Which of the following is calculated in a
993. Which of the following are fixed assets?
manufacturing account?
A. Cash in hand
A. The total production costs paid during
an accounting period. B. Cash at the bank
C. Fixtures & Fittings
B. The total cost of goods produced dur-
ing an accounting period. D. Inventory
C. The production cost of goods com- 994. is a brief explanation to a journal en-
pleted during an accounting period. try, given below the journal entry, within
D. The gross profit on goods sold during brackets
an accounting period. A. Narration

B. Ledger 1000. Management accounting is subject to

C. Credit statutory requirements ie Company Act
1965 where all registered companies are

D. Debit required to publish financial statements
annually.
995. A specific type of fraud that involves mis-
representing the truth on any one of the A. True
financial statements, either by lying or B. False
by omitting important information causing
loss to another. 1001. Income and Expenditure Account records
transactions of
A. Accounting Fraud
A. Revenue nature only
B. Economic Fraud
B. Capital nature only
C. Financial Fraud
C. Both Capital and Revenue
D. White Collar Fraud
D. Cash transactions only
996. Trial balance is used to check the accuracy
of 1002. Mirah Company compiled the follow-
ing financial information as of December
A. Balance sheet balances
31, 2020:Revenues $340, 000Owner’s
B. Ledger accounts balances Capital (1/1/20) 140, 000Equipment
C. Cash flow statement balances 80, 000Expenses 240, 000Cash 90,
000Owner’s Drawings 20, 000Supplies
D. Income statement balances 20, 000Accounts payable 40, 000Ac-
counts receivable 70, 000Mirah’s owner’s
997. All house bank accounts are represented
equity on December 31, 2020 is
by G/L accounts in SAP.
A. $100, 000.
A. True
B. $140, 000.
B. False
C. $220, 000.
998. LLP is registered under Act. 2008.
D. $260, 000.
A. NCLT
1003. It’s not included in work sheet
B. LLP
A. Trial balance
C. ICAI
B. Adjustment journal
D. Indian Companies Act 1956
C. Income statement
999. Which of the following is the general pur- D. Cash flow
pose of financial statements?
A. Provide financial reporting informa- 1004. DEBTS INVESTMENTS CAN BE SUBSE-
tion to a wide variety of users QUENTLY MEASURED AT:
B. Provide the most useful information A. FVPL AND AMORTIZED COST

possible at the least cost B. FVOCI AND AMORTIZED COST
C. All of the above C. FVPL, FVOCI AND AMORTIZED COST
D. None of the above D. FVPL AND FVOCI

1005. A(n) would be likely to use financial C. Neraca

statements to make decisions for a busi- D. Retained earnings report
ness’s future.
A. investor 1011. Proof of Credit Purchase Return Trans-
action
B. manager
A. Nota Kontan
C. bank
B. Credit Notes
D. stockholder
NARAYAN CHANGDER
C. It should be noted
1006. Where there is no agreement, the part-
D. Receipt
ners are to share their profit
A. Equally 1012. The Receipts and Payments Account is a
summary of:
B. 2:3
A. Debit and Credit balance of Ledger Ac-
C. 5%
counts
D. 50% each
B. Cash Receipts and Payments
1007. Money that is given to states to C. Expenses and Incomes
cover expenses like roads, education, and
D. Assets and Liabilities
healthcare is
A. appropriations 1013. The following is the extract of
Statement of Financial Position as at
B. grants-in-aid
31/12/20:Non Current AssetMotor ve-
C. discretionary spending hicle RM 56, 000Machinery RM 25, 300
D. mandatory spending Motor vehicle are revalued at RM 35, 200
while machinery at RM23, 000. What is
1008. In case of transfer from Creditors the correct changes for machinery?
Ledger to Debtors Ledger, the Debtors
A. Increase RM 20, 800
Ledger Adjustment Account should be deb-
ited. B. Decrease RM 20, 800
A. True C. Increase RM 2, 300
B. False D. Decrease RM 2, 300
1009. In preparing a bank reconciliation, out- 1014. Average Clause is a clause contained in
standing checks are a fire insurance policy.
A. added to the balance per bank. A. True
B. deducted from the balance per books. B. False
C. added to the balance per books. 1015. Converting Assets to Expenses What
D. deducted from the balance per bank. would be the impact on net income
1010. The financial report that presents fixed A. Net income would increase
assets at the end of the period is B. Net income would remain unchanged
A. Income statement C. Net income would decrease
B. Capital change report D. None of the above

1016. Year of the latest Companies Act 1022. What is the account number associated
A. 1956 with the debt to the state

A. 50
B. 2013
B. 42
C. 2019
C. 43
D. 2020
D. 44
1017. The State Bank of India allocated how
much amount towards the fight against 1023. Gross Profit =
Covid-19? A. Net Income + Operating Expenses
A. Rs. 70 Cr B. Sales + Cost of Merchandise Sold
B. Rs. 92 Cr C. Sales-Cost of Merchandise Sold
C. Rs. 71 Cr D. Sales-Operating Expenses
D. Rs. 60 Cr 1024. In the purchase of a business, a buyer
has paid more than the of the value of the
1018. A GAIN ON THE INITIAL RECOGNITION net assets of the business. The excess pay-
OF A NEWLY BORN BIOLOGICAL ASSET IS ment is referred to as
RECOGNIZED IN
A. bonus
A. OTHER COMPREHENSIVE INCOME
B. goodwill
B. PROFIT OR LOSS
C. net profit
C. RETAINED EARNINGS D. premium
D. SHARE PREMIUM
1025. Which of the following is not reported
1019. Pre-Income tax is also known as on the income statement?
A. EBIT A. Revenues earned by a business
B. EBT B. Expenses incurred by a business
C. EBITDA C. Withdrawals
D. EAT D. Net income

E. All of these answers are correct.
1020. In the books of hire vendor the depreci-
ation is charged 1026. ADJUSTING ENTRIES NORMALLY IN-
VOLVED
A. True
A. REAL ACCOUNTS ONLY
B. False
B. NOMINAL ACCOUNTS ONLY
1021. What is liability when asset is N4000, C. REAL AND NOMINAL ACCOUNTS
and capital is N2000?
D. LIABILITY ACCOUNTS ONLY
A. N6000
1027. Principle that prohibits adding fake pos-
B. N1000
itive items on financial statement to coun-
C. N20000 terbalance real negative items.
D. N2000 A. Principle of noncompensation

B. Principle of sincerity C. Electronic

C. Principle of prudence D. Chemical
D. none of above
1033. Petty cash method where journalizing is
1028. Before an adjusting entry for accrued done when replenishing
salaries is made, the amount in Salaries
A. Imprest Fund System
Expense is understated and the amount in
Salaries Payable is also understated. B. Fluctuative Fund System
NARAYAN CHANGDER
A. True C. Direct Write Off Method
B. False D. Allowance Method
1029. Suspense account is usually closed when
1034. From an accounting standpoint, cash in-
cludes which of the following?
A. Accounts are finalised
A. credit accounts
B. Accounts are audited
B. checks
C. All the errors are rectified
C. payments on credit
D. Unbalanced account
D. physical assets
1030. Which of the following are the disadvan-
tage of Corporation? 1035. Discuss the limitations of double-entry
A. Double Taxation accounting.
B. Limited Life A. Complexity, cost, and potential for hu-
C. Great capacity of raising capital man error
D. Easy transfer of Ownership B. Simplicity, low cost, and accuracy

C. Transparency, reliability, and ease of
1031. Which of the following statements is
use
false? Consolidated financial statements
are useful to: D. Flexibility, efficiency, and reduced risk
A. determine the profi tability of specifi c
subsidiaries. 1036. What is the name of the accounting
method created by Luca Pacioli?
B. determine the total profi tability of
companies under common control. A. Triple entry system
C. determine the breadth of a parent com- B. Single entry system
pany’s operations. C. Matching entry system
D. determine the full extent of total obli-
D. Double entry system
gations of companies under common con-
trol.
1037. Liabilities are resources owned by the
1032. Which one of the following industries business with the purpose of using it for
manufactures telephones, computers etc. generating future profits.
A. Cement A. True
B. Iron and steel B. False

1038. What is the role of GAAP (Generally Ac- 1043. Who issues International Financial Re-
cepted Accounting Principles) in financial porting Standards?
accounting?

A. The government
A. GAAP is not important in financial ac- B. The International Accounting Stan-
counting dards Board
B. GAAP provides a standard framework C. The stock exchange
for financial reporting
D. The IFRS Advisory Committee
C. GAAP is only applicable to small busi-
nesses 1044. The financial statement that reports rev-
D. GAAP is a flexible set of guidelines enue and expenses on a specific date.
with no standard framework A. worksheet
1039. Declaration and payment of dividends B. balance sheet
on company’s stock. C. income statement
A. Operating D. none of above
B. Investing 1045. Qwik Company showed the following
C. Financing balances at the end of its first year:Cash
D. Supplemental $ 8, 700Prepaid insurance 9, 400Ac-
counts receivable 7, 000Accounts payable
1040. The system of acquiring a business as 5, 800Notes payable 9, 400Owner’s Cap-
a going concern by another business is ital 2, 300Owner’s Drawings 1, 400Rev-
(a) business consideration (b) goodwill (c) enues 44, 000Expenses 35, 000What did
redemption reserve (d) purchase of busi- Qwik Company show as total credits on its
ness. trial balance?
A. business consideration A. 52, 400
B. goodwill B. 61, 500
C. redemption reserve C. 62, 900
D. purchase of business D. 70, 900
1041. According to traditional classification, 1046. In cash book, discount allowed on a dis-
the nature of consignee account is: honored cheque is cancelled by
A. real A. Crediting the bank column
B. valuation B. crediting discount column
C. nominal C. journal entry
D. personal D. debiting the discount column
1042. When Capital is increased by an amount, 1047. The Income Summary Account is
it is recorded on the:
A. a temporary account
A. Right or debit side of the account
B. the account from which the amount of
B. Left or credit side of the accoun profit or loss is transferred to the owners’
C. Left or debit side of the account capital accounts in a partnership
D. Right or credit side of the account C. not a permanent account

D. used in the closing process to sum- 1052. Buyers will get a 2% discount if pay-
marize the amounts of revenues and ex- ment is made within 10 days after the
penses transaction and payment is made within
E. all of the above 30 days. The correct term to express this
is
1048. Which term refers to an ordered listing A. 2/10
of accounts that comprise a company’s gen-
B. 2/10, n/30
eral ledger?
NARAYAN CHANGDER
C. 2%/10, n/30
A. General ledger
D. n/30
B. Balance sheet
E. 2/10, EOM
C. Bank ledger
D. Chart of accounts (COA) 1053. If a company wants to increase its re-
ported income by manipulating its invest-
E. None of the above ment accounts, which should it do?
1049. The final day of the financial year saw A. Sell its “winner” trading securities and
the passing of a new law which rendered hold its “loser” trading securities.
the goods that we sell illegal and the busi- B. Hold its “winner” trading securities
ness would have to close down. The ac- and sell its “loser” trading securities.
countant says that the assets in the finan-
cial statements cannot be shown at cost. C. Sell its “winner” available-for-sale se-
What accounting concept is being applied? curities and hold its “loser” available-for-
sale securities.
A. going concern
D. Hold its “winner” available-for-sale
B. historical cost securities and sell its “loser” available-
C. realisation for-sale securities.
D. substance over form 1054. Which quality has predictive and confir-
matory value?
1050. According to the cost concept the assets
are valued at A. Relevance
A. Market price B. Faithful representation
B. purchase price C. Timeliness
C. Current price D. Understandability
D. purchase price 1055. What is known as manufacturing, mer-

chandising and service?
1051. A petty cashier operates with an im-
A. Business types
prest of D1, 000 per week. At the end
of the week he had disbursed D920. How B. Business forms
much is needed to restore the imprest? C. Business structures
A. D1, 920 D. none of above
B. D1, 000 1056. Limitations of financial accounting in-
C. D920 clude
D. D80 A. Recording of monetary transaction

B. Recording non monetary transaction B. Acquisition Price reduced by deprecia-

C. May be manipulated tion

D. Both a and c C. The value of fixed assets after their
economic life has expired
1057. Ordinary shares issued as part of a busi-
ness combination are included in the EPS D. Final value of goods
calculation from
1062. Owner’s drawing will be deducted from
A. The beginning of eh accounting period
A. Capital
B. The date of acquisition
C. The end of the accounting period B. Closing stock
D. The midpoint of the accounting year C. Sales
1058. What is the balance sheet and what D. Furniture

does it show?
1063. Insurance paid Rp. 18, 000, 000 for a
A. It shows a company’s financial posi- period of 1 year starting May 1 2020 and
tion at a specific point in time. recorded as insurance expense. If adjust-
B. It shows the company’s marketing ments to insurance are made on June 30
strategy 2020. Then the correct amount of insur-
C. It displays the company’s employee ance expense is
satisfaction levels A. Rp. 1.500.000
D. It indicates the company’s future stock B. Rp. 3.000.000
performance
C. Rp. 7.500.000
1059. One of the external users of accounting
information are D. Rp. 10.500.000
A. Managers
1064. The source of accounting standards in In-
B. Proprietors donesia is
C. Creditors A. Financial Accounting Standards
D. Employees
B. Issuer’s Annual Report
1060. This concept assumes that, for account- C. GAAP
ing purposes, the business enterprise and
its owners are two separate independent D. Accounting Principle Bulletins
entities
1065. The process of copying journal informa-
A. Money Measurement Concept
tion to the ledger is called:
B. Going Concern Concept
A. Double-entering
C. Business Entity Concept
B. Posting
D. Cost Concept
C. An internal business transaction
1061. Residue value (salvage) contains the
meaning D. Journalizing
A. Purchase price minus depreciation E. An external business transaction

1066. The main difference between them is 1071. On October 1 2019, IDR 2, 400, 000
that management accounting describes in- was paid for advertising in the Republika
ternal information and includes both finan- daily, for a publication period of 1 year.
cial and non-financial information, while fi- The transaction is recorded in the prepaid
nancial accounting includes only financial advertising estimate of Rp. 2, 400, 000.
figures and company’s performance. On December 31 2019, the following ad-
A. True justing journal will be made
B. False A. Prepaid advertising (D) Rp. 600,
NARAYAN CHANGDER
000.00 Advertising costs (K) Rp. 600,
1067. Where goodwill is acquired on an invest- 000.00
ment in an associate the goodwill is:
B. Advertising costs (D) Rp. 1, 800,
A. amortised across the useful life of the 000.00 Prepaid advertising (K) Rp. 1, 800,
goodwill. 000.00
B. written off immediately against the C. Advertising costs (D) Rp. 2, 400,
carrying amount of the investment. 000.00 Prepaid advertising (K) Rp. 2, 400,
C. carried as a separate asset in the ac- 000.00
counting records of the investor. D. Prepaid advertising (D) Rp. 1, 800,
D. not subject to amortisation. 000.00 Advertising costs (K) Rp. 1, 800,
000.00
1068. Identify the type of expenditure. Trans-
E. Advertising costs (DI) Rp. 600, 000.00
portation costs on sales
Prepaid advertising (K) Rp. 600, 000.00
A. Capital
B. Revenue 1072. During the year, Ferguson made the fol-
lowing accounting entries to account for
1069. Theory is the depreciation charge relating to motor
vehicles:Debit Accumulated depreciation-
A. temporary testing
motor vehicles $5, 000 Credit Deprecia-
B. consequences of observation tion expense-motor vehicles $5, 000What
C. capture the world, to rationalize, and are the journal entries required to account
explain it correctly for the depreciation charge for
motor vehicles for the year?
D. principles and standards
A. Debit Motor vehicles $5, 000, and
1070. Journal Entry for Purchasing Machine in Credit Accumulated depreciation $5, 000
Cash is?
B. Debit Depreciation Expense $10, 000,
A. Purchase A/C (Debit)-To Cash A/C and Credit Accumulated depreciation $10,
(Credit) 000
B. Purchase A/C (Debit)-To Machine A/C C. Debit Depreciation expense $5, 000,
(Credit) and Credit Accumulated depreciation $5,
C. Machine A/C(Debit)-To Purchase A/c 000
(Credit) D. Debit Accumulated depreciation $10,
D. Machine A/C (Debit)-To Cash A/C 000, and Credit Depreciation expense $10,
(Credit) 000

1073. Which category of accounts is category 1079. Assets that has useful life more than a
2? year is
A. Currest assets

A. asset
B. debt B. Fixed Assets
C. income C. Other Assets
D. Owner’s equity D. Current Liabilities
1074. The following are the common causes of 1080. Selling expenses
depreciation except A. Result from the company’s effort to
A. Wear and tear purchase items
B. Passage of time B. Result from the company’s effort to

create sales
C. Usage
C. Result from the company’s effort to
D. Amount of bad debts buy lands
1075. The ledger provides up-to-date financial D. All the above
information pertaining to which of the fol- 1081. Cornhusker Supplies Inc. purchased a
lowing? 12-month insurance policy on March 1,
A. Patients 2020 for $2, 640. At March 31, 2020,
B. Employees the adjusting journal entry to record expi-
ration of this asset will include a
C. Physician
A. debit to Prepaid Insurance and a credit
D. Insurance companies to Cash for $2, 640.
1076. what is journal? B. debit to Prepaid Insurance and a credit
A. Primary book to Insurance Expense for $275.
C. debit to Insurance Expense and a
B. Secondary
credit to Prepaid Insurance for $220.
C. third book
D. debit to Insurance Expense and a
D. None credit to Cash for $220.
1077. The is one of the main financial 1082. A company prepares financial state-
statements and reports revenues and ex- ments to 31st December 2014. The ac-
penses for a period of time such as a month counts are to be approved by the Board
or year. of Directors on 4th March 2015. On 22nd
A. Income Statement January 2015 an item of equipment shown
as an asset in the Statement of Financial
B. Balance Sheet
Position at 31st December 2014 was sold.
C. Income Worksheet According to FRS 102-section 32 “Events
D. Balance Sheet After the end of the Reporting Period”:
A. This is an adjusting event and the Fi-
1078. Does an increase in gross profit have to nancial Statements need to be adjusted
equate to an increase in gross margin?
B. This is a non-adjusting event but may
A. True be disclosed in the notes to the Financial
B. False Statements if of material value

C. This is an adjusting event and should from October 1, 2000. The adjusting en-
be disclosed in the notes to the Financial tries for the transactions mentioned above
Statements are:
D. This is an adjusting event but is imma- A. Prepaid rent Rp. 450, 000 Rent ex-
terial in nature pense Rp. 450, 000
1083. Revenues minus expenses equals: B. Rent expense Rp. 450, 000 Prepaid
rent Rp. 450, 000
A. Assets
NARAYAN CHANGDER
C. Rent expense Rp. 450, 000 Rent
B. Liabilities payable Rp. 450, 000
C. Owner Equity D. Prepaid rent Rp. 1, 350, 000 Cash Rp.
D. Net Income 1, 350, 000
E. Rent expense Rp. 1, 350, 000 Prepaid
1084. Sam bought an $85.00 jacket for 40%
rent Rp. 1, 350, 000
off of the regular price. How much did he
pay for the jacket? 1088. To increase a liability account requires a
A. 75
B. 51
C. 36
D. isaiah
1085. A company purchased a an equipment

on January 1 for $5, 400. This register
has a useful life of 10 years and a sal-
vage value of $400. What would be the
depreciation expense for the second-year
of its useful life using the double-declining- A. credit
balance method?
B. debit
A. 864
B. 500 1089. What is Accounting?
C. 800 A. Recording
D. 1080 B. Classifying
C. Summarizing
1086. Transferring information from a journal
entry to a ledger account (p. 98) D. all the above
A. journaling 1090. Insurance Claim Received on account of

B. posting plant and machinery completely damaged
by fire is a capital receipt
C. file maintenance
A. True
D. correcting entry
B. False
1087. In the trial balance as of December 31,
2000, the prepaid rent account shows IDR 1091. Interest is the cost of
1, 800, 000 for 1 year’s rent, starting A. Using someone else’s money

B. Purchasing inventory with cash B. non-current assets

C. Making a sale C. current liabilities

D. Being in business D. current assets
1092. Correct form of Accounting Equation is? 1098. Interest expense in relation to issued
bonds was recognized using:
A. Assets = Liabilities + Capital
A. Effective interest rate
B. Assets + Liabilities = Capital
B. coupon rate of the bond
C. Assets + Capital = Liabilities
C. Other rate
D. Assets-Capital = Liabilities
D. none of above
1093. A decrease in Owner’s Equity is
1099. Which of the following is not used for
recorded by a entry in the account.
determining working capital?
A. Debit
A. Cash
B. Credit B. Debtors
1094. Final account includes C. Motor vehicle
A. Trial balance D. Overdraft
B. journal entries 1100. A sole trader purchased goods in cash
C. trading account, profit and loss ac- worth N2, 000 at 2% discount and made
count and balance sheet a cash sale of N 1, 000 at the same rate
of discount. Determine the amount of dis-
D. ledger account
count allowed.
1095. Which statement contains all of the A. N20
following-asset, liability, and equity? B. N40
A. statement of financial position C. N400
B. statement of profit or loss D. N200
C. statement of cash flow
1101. Who is wrong in case of preference
D. statement of changes in equity shares?
1096. How many account for each partner A. dividend before equity shares
According to Fluctuating Capital Account B. Capital returned first in case of liquida-
Method tion
A. 1 C. a predetermined rate of dividend
B. 2 D. Right to participate in management op-
C. 3 erations
D. 4 1102. Which of the following is a liability?

1097. the long-term debts or financial obliga-
tions that are listed on the SOFP of a com- B. Long Term Investments
pany. C. Inventory
A. non-current liabilities D. Accounts Payable

1103. Which of the following is not an objec- D. Partnership & Sole Proprietorship
tive of financial reporting?
1109. When cash is received or paid in advance
A. to provide information that will in- before a service is provided is considered?
crease the value of a company
A. Accrual accounting
B. to provide information in assessing fu-
B. GAAP
ture cash flows
C. Deferral revenue or expenses
C. to provide information that is useful
D. Depreciation
NARAYAN CHANGDER
for making credit and investment deci-
sions
1110. Buildings-2, 50, 000. Calculate Depre-
D. to provide information that identifies ciation on Buildings at 10%.
what is owned, what is owed and the own-
A. 10, 000
ership interest in the company
B. 15, 000
1104. Rules for Real Account is C. 20, 000
A. Debit what comes in Credit what goes D. 25, 000
out
B. Debit all Expenses and Lossess credit 1111. P. Hawk has a manufacturing business.
all incomes and gains The cost of his raw materials is $1 900.
Rates and rent total $2 000 and factory
C. Debit the receiver credit the giver wages amount to $2 500. The number of
D. None of the above units produced is 1 640. What is the cost
of producing ONE unit?
1105. Anything of value that is owned.
A. A. $ 4
A. Asset
B. B, $ 6
B. Liability
C. C. $10
C. Capital
D. D, $13
D. Creditor
1112. The branch of accounting that generates
1106. A business is a going concern if it does reports and information for the use of in-
not plan to go bankrupt and liquidate its ternal management is known as:
assets
A. Auditing
A. True
B. Tax accounting
B. False
C. Management accounting
1107. In case of trading concern, cost of goods D. International counter
sold and cost of sales are same.
1113. The enforcement of the Financial Re-
A. True porting Act 1997 took place on 9 March
B. False 1997, giving rise to the establishment of
both the Malaysian Accounting Standards
1108. Has unlimited personal liability. Board (MASB) and the Financial Reporting
A. Sole Proprietorship & Corporation Foundation (FRF).
B. Corporation & Partnership A. True
C. Partnership B. False

1114. Who has been appointed as the 1st A. DD, P60, 000; EE, P59, 400
chairman of the International Financial Ser- B. DD, P61, 200; EE, P58, 800
vices Centre Authority for a 3 years term?

C. DD, P67, 200; EE, P52, 800
A. Ingiti Srinivas
D. DD, P68, 800; EE, P51, 200
B. Sumant Chowdhury
1119. A list of the assets, liabilities, and stock
C. Anant Narayan Nanda holder’s equity as of a specific date, usu-
D. Arun Goel ally at the close of the last day of a month
or a year; balances the accounting equa-
1115. Accountants should use when mak- tion.
ing payments to vendors.
A. Income Statement
A. vouchers
B. Retained Earnings Statement
B. checks C. Balance Sheet
C. receipts D. Statement of Cash Flows
D. cash
1120. Expenses which are paid in advance is
1116. The place where transactions are first
recorded is called the A. Prepaid Expenses
A. daily log. B. Postpaid Expenses
B. daysheet C. Outstanding Expenses
C. charge journal. D. Accrued Expenses
D. general journal. 1121. is the excess of the purchase consid-
E. All of these are correct. eration over the net value of assets
A. cash
1117. The profit made by a business in 2017
B. goodwill
was P35, 400. The proprietor injected
new capital of P10, 200 during the year C. purchase consideration
and withdrew a monthly salary of P500. D. capital reserve
If the net assets at the end of 2017 were
P95, 100, what was the proprietor’s cap- 1122. Asset accounts have what type of bal-
ital at the beginning of the year? ance?
A. 50, 000
B. 55, 500
C. 63, 900
D. 134, 700
A. DEBIT
B. CREDIT
C. CONTRA
D. ALL OF THE ABOVE

1123. Which of these items represent ex- 1128. All the following are users of accounting
penses? information except
A. Purchased a copying machine for $2, A. Shareholders
750 cash. B. Management
B. Paid $192 for gasoline purchases for a C. Government
delivery truck
D. Debtors
C. Paid $2, 280 salary to an employee for
NARAYAN CHANGDER
time worked. 1129. Accounting entries involve a minimum of
D. Paid an attorney $560 for legal ser- how many accounts?
vices rendered. A. 0
1124. Which of the following is the internal B. 1

user of accounting information? C. 2
A. Inland Revenue Board D. 3
B. Creditors 1130. Has limited liability.
C. Managers A. Sole Proprietorship
D. Customers B. Corporation
1125. What accounting system records the C. Partnership
dual aspect of business transactions D. none of above
A. BOOKS OF PRIME ENTRY
1131. Resources owned by a company (such
B. DOUBLE-ENTRY SYSTEM OF LEDGERS as cash, accounts receivable, vehicles) are
C. TRIAL BALANCE reported on the balance sheet and are re-
ferred to as
D. FINANCIAL STATEMENTS
A. Assets
1126. Financial Accounting is an B. Liabilities
A. Art of C. Owner Equity
B. Science of D. Equity
C. Commerce
1132. Salary paid to Ram, in this entry Ram’s
D. Art & science of A/c will be
E. None of the above A. Debited
1127. Amounts of money owed to a medical B. Credited
practice for professional services rendered C. Neither debited nor credited
are
A. accounts payable.
1133. Journal Entry to record new / agreed
B. major medical expenses.
value of Non current Asset
C. accounts receivable. A. Non-Current Asset (new / agreed
D. actual charges. value) DebitRevaluation Credit

B. Revaluation DebitNon-Current Asset B. Neither income nor expense

(new / agreed value) Credit
C. An expense

C. Both Entry 1 and 2
D. An income
1139. is the statement of the position of
1134. Andy has started a business and trans- the business which shows the assets of a
ferred his computer, worth $1, 500 into business and the sources of those assets
the business.What are the accounting en-
tries to record this? A. Balance sheet
A. Dr Capital Cr Computer equipment B. Capital
B. Dr Computer equipment Cr Capital C. Assets
C. Dr Computer equipment Cr Drawings D. Liabilities
D. Dr Drawings Cr Computer equipment
1140. All the following are branches of ac-
1135. Rohan want to withdraw Rs.50, 000 counting except
from Bank. But in his account total bal- A. Balance sheet accounting
ance is Rs. 30, 000. To withdraw more
account process is called B. Cost accounting
A. Bank overdraft C. Management accounting
B. Loan D. Financial accounting
C. Cash withdrawal
1141. It provides the detailed cost data that
D. Liabilities management needs to control current op-
erations and plan for the future.
1136. Obligation to pay out money out money
as some time in the future is A. Cost Accounting
A. Asset B. Management Accounting
B. Capital C. Financial Accounting
C. Liabilities D. Financial Analysis
D. Resources
1142. The money that’s spent by a company
1137. According to the double-entry system, to continue its business activities and op-
for every debit entry, there must be a cor- erations.
responding A. Investments
A. Debit entry
B. Expenses
B. Credit entry
C. Asset entry 1143. Explain the accounting equation.
D. Liability entry A. Assets = Liabilities-Equity

B. Assets-Liabilities = Equity
1138. Is provisions for bad debts adjustment
an income or an expense? C. Assets + Liabilities = Equity
A. Both income and expense D. Assets = Liabilities + Equity

1144. In a not-profit making organization, the 1148. How many methods are used to main-
cash book is referred to as taining capital accounts of the Partners
A. income and expenditure account A. 1
B. receipts and payments account B. 2
C. two column cash book C. 3
D. petty cash book D. 4
NARAYAN CHANGDER
1145. It is known that PT M2M has several 1149. *The balance sheet displays the com-
debtors with receivable balances as of pany’s total assets, and how these assets
November 30 2018, such as PD Ngentak are , through either debt or equity.
IDR 2, 000, 000, PD Ngijon IDR 5, 000, A. financed
000, and PD Gedongan IDR 3, 000, 000.
B. used
During December 2019, there was a PD
Ngijon transaction, on December 2 2019, C. shared
receiving payment for an invoice from PT D. classified
Ngijon to PT M2M amounting to IDR 2,
000, 000. The balance on the PT M2M 1150. This type of accounting is used to assess
receivable card is the past financial performance of a busi-
ness
A. (D) IDR 3, 000, 000
A. Management Accounting
B. (D) IDR 2, 000, 000
C. (K) IDR 3, 000, 000
D. (D) IDR 5, 000, 000 1151. What are the advantages of the fair
value measurement method?
1146. Double entry accounting means debits A. The information provided will be more
will equal liabilities suitable than the original price for users
A. True B. Provide verifiable information
B. False C. Create consistency in recording the
value of assets or liabilities
1147. A balance sheet lists:
D. Honestly reflect the values of transac-
A. The types and amounts of the rev-
tions occurring
enues and expenses of a business
B. Only the information about what hap- 1152. How is Prime Cost calculated on a man-
pened to equity during a specific time pe- ufacturing account?
riod A. Prime Cost = Direct Materials + Di-
C. The types and amounts of assets, lia- rect Wages + Direct Expenses
bilities, and equity of a business at a spe- B. Prime Cost = Direct Materials-Direct
cific date Wages-Direct Expenses
D. The inflows and outflows of cash dur- C. Prime Cost = Direct Materials x Direct
ing a specific time period Wages
E. The assets and liabilities of a business D. Prime Cost = Direct Materials / Direct
but not the equity Expenses

1153. Which of the following is a current as- 1159. is the blending together two or more
set? existing companies into one

A. Cash at the bank A. combination
B. Cash in hand B. amalgamation
C. Money at the credit union C. purchase of business
D. All of the above D. blending
1154. Reserve for Discount on Creditors has a 1160. Which one of the following agencies
credit balance. markets steel for the public sector plants?
A. True A. HAIL
B. False B. SAIL
C. Tata Steel
1155. A balance sheet reports financial infor-
D. MNCC
mation for a specific date.
A. True 1161. How many account for each partner Ac-
cording to Fixed Capital Account Method
B. False
A. 1
1156. Which side of a ledger account is known B. 2
as the CREDIT side?
C. 3
A. Right-hand side
D. 4
B. Left-hand side
1162. Which one of the following public sector
C. Top side
plants is located in Chhattisgarh?
D. Bottom side
A. Bokaro Steel plant
1157. Marked applications refers to B. Bhilai Steel Plant
A. Applications bearing the stamp of the C. Durgapur steel plant
underwriters D. Rourkela steel plant
B. Applications carrying the signatures of
public who applied for shares 1163. Salary is an example of
C. Applications carrying the stamp of A. Direct expense

company which offered the shares B. Indirect expense
D. Application bearing Government C. Both direct and indirect expenses
stamp D. Capital expense
1158. Receipt and Payment Account is 1164. Luca Pacioli was a
A. Real Account A. Philosopher
B. Personal Account B. Doctor
C. Nominal Account C. Engineer
D. none of above D. Mathematician

1165. When a company acquired the business D. Cash Rp. 6, 600-Sales Deductions-Rp.
of another company, the difference be- 6, 000 Accounts receivable-Rp. 600
tween Purchase Consideration and the net
asset acquired is debited to 1169. Which of the following is not true about
accounting information?
A. Property, Plant and Equipments
A. It reflects the mood of the business
B. Capital Reserve
B. Only events with monetary values are
C. Cash Account recorded
NARAYAN CHANGDER
D. Goodwill C. Different policies make comparison
between companies easy
1166. On January 8, Gallery Corp. records
$5, 000 of accrued salaries. On January D. none of above
15, $10, 000 of salaries are paid. The en-
try on January 15 includes a debit to the 1170. The hire purchaser can record the asset
Salaries Payable account. at its
A. Hire purchase price
A. True
B. Cash down price
B. False
C. None of these
1167. The Role of Accounting Research
D. none of above
A. Effects on accounting practice
1171. Discuss the limitations of financial state-
B. Increase our understanding of the ac-
ments.
counting environment
A. Historical nature, reliance on esti-
C. Accounting theory is based on funda-
mates, lack of non-financial information,
mental research so that improvements in
potential for manipulation
disclosure are based on investor decision
making theory and capital market theory B. Predictive nature, reliance on guesses,
abundance of financial information, poten-
D. Fundamental research using agency tial for honesty
theory models has improved our under-
standing of managers’ interests in finan- C. Real-time nature, reliance on actuals,
cial reporting lack of financial information, potential for
transparency
E. all answers are wrong
D. Future nature, reliance on facts, abun-
1168. On January 1 2019, PD Jalali sold mer- dance of non-financial information, poten-
chandise to Toko Kenari for IDR 6, 000 tial for accuracy
with payment terms n/30. Based on this
data, the recording carried out by PD Jalali 1172. The following are the causes of the dis-
is solution of the federation based on the
agreement of the court decision, EXCEPT
A. Trade receivables Rp. 6, 600-Sales-Rp.
6, 000 Input VAT-Rp. 600
A. It’s no longer possible to make a profit
B. Accounts receivable Rp. 6, 600-Sales-
Rp. 6, 000 B. There is no compatibility
C. Sales Return Rp. 6, 600-Accounts C. Internal disputes

Receivable-Rp. 6, 000 D. A member’s abilities

1173. On 1 January 20X1, Everton received 1177. The Hire purchase Act came into force on
$6m from the local government on the con- 1st September, 1973
dition that they employ at least 200 staff

A. True
each year for the next 4 years. On this
date, it was virtually certain that Ever- B. False
ton would meet these requirements. How
much income and deferred income that Ev- 1178. Building repair costs of IDR 200, 000,
erton should present in its financial state- 000 were incurred. If the repair of the
ments for the year ended 31 December building extends its economic life, then the
20X2 journal that must be made is
A. Income:3m; deferred income:3m A. Building Rp. 200, 000, 000, -Cash Rp.
B. Income:1.5m; deferred income:3m 200, 000, 000, -
C. Deferred income:nil; Income:nil B. Accumulated building depreciation Rp.
D. Other 200, 000, 000, -Cash Rp. 200, 000, 000, -
1174. What is accounts payable? C. Building depreciation expense Rp. 200,

000, 000, -Accumulated building deprecia-
A. Money that you owe someone else tion Rp. 200, 000, 000, -
B. Money that you loaned to the bank
D. Building depreciation expense Rp. 200,
C. Money that a business owes to an- 000, 000, -Cash Rp. 200, 000, 000,
other business
D. Money that you invested in a company 1179. If beginning capital was RM25, 000,
ending capital is RM40, 000, and the
1175. Which of the following statements is in- owner’s withdrawals were RM25, 000,
correct? the amount of net income or net loss was:
A. Permanent accounts remain open as
A. Net income RM40, 000
long as the asset, liability, or equity items
recorded in the accounts continue in exis- B. Net loss RM5, 000
tence
C. Net loss RM40, 000
B. Permanent accounts include assets
D. Net income RM15, 000
C. Temporary accounts carry a zero bal-
ance at the beginning of each accounting 1180. Cost of materials consumed is calculated
period as opening inventory of raw materials +
D. Permanent accounts are another purchases-closing inventory of raw mate-
name for temporary accounts rials
E. The income summary account is a tem- A. TRUE
porary account
B. FALSE
1176. An unadjusted balance in cash book is
because of the result of which error 1181. Shareholders are legally distinct from
A. Deposit in transit the business. They loss is not limited to
B. The omission of Bank charges what they invest.
C. Outstanding cheques A. True

D. Unpresented cheques B. False

1182. Which of the following should be 1188. which form of business creates a sepa-
charged to the manufacturing account? rate business entity?
A. Office rent A. sole proprietorship
B. Carriage on sales B. partnership
C. Managing Director’s salary C. corporation
D. Carriage on raw materials D. all of the above
1183. The basic rule of book-keeping ‘debit
NARAYAN CHANGDER
1189. Cost Classification
the receiver and credit the giver’?
A. Direct, indirect
A. personal a/c
B. real a/c B. manager
C. nominal a/c C. Harbor
D. none of these D. none of above
1184. An asset account shows a 1190. Which user has the need of financial re-
porting to assess the company’s ability to
A. Credit balance
pay its employees increased salaries?
B. Debit balance
A. Government
C. Credit or debit balance
B. Trade Unions
D. none of above
C. Trade creditors
1185. What are the basic financial statements
D. Shareholders
in financial accounting?
A. Cash flow report, income summary, 1191. is the properties or resources of a
and stockholder’s equity report business organization
B. Profit statement, equity statement, A. Assets
and investment statement
B. Capital
C. Income statement, balance sheet, and
C. Long term
cash flow statement
D. Expense report, liability statement, D. Liability
and revenue statement 1192. Deferred revenue expenditure is current
1186. Accounting provides financial informa- year’s revenue expenditure to be paid in
tion about a business to stakeholders of the later years.
business: A. True
A. true B. False
B. false
1193. Below are example of cash except for:
1187. is the inflow of moneyfrom ordinary
A. Petty cash
trading activities, e.g. cash sales, credit
sales, charges/fees and royalties. B. Bank draft
A. Revenue C. Cash receipt
B. Costs D. Coins

1194. A customer saw a carpet in 2017 and C. managers, board of directors, part-
said she might well buy it. She telephoned ners
in 2018 and asked for the carpet to be de-

D. government planners, supervisors,
livered. The item was not treated as a sale customers
in 2017 but was treated as a sale in 2018.
What accounting concept is being applied? 1199. When a company issues stock with a
A. realisation par value, what columns are typically pre-
sented in the statement of stockholders’
B. accruals equity?
C. prudence A. common stock; additional paid-in cap-
D. going concern ital; and property, plant, and equipment,
net
1195. Returns Outwards B. cash; and property, plant, and equip-
A. Sales Return ment, net
B. Purchases Return C. common stock; additional paid-in capi-
tal; and retained earnings
C. Carriage
D. common stock; additional paid-in capi-
D. All
tal; and cash
1196. (k) :is used in a transaction that in- 1200. Identify the objective behind the formu-
creases a customer’s funds. Stated differ- lation of National Jute Policy, 2005.
ently, a credit memorandum refers to an
increase in a deposit account balance, such A. Increasing productivity
as a deposit made to the account. B. Improving quality and ensuring good
A. Debit advice prices
B. Credit advice C. Enhance the yield per hectare
C. Receipt D. All the above
D. Invoice 1201. 1 Pak Darmawan has a trademark that

is quite popular with the public. Pak Dar-
E. Quotation
mawan is often the main sponsor of sport-
1197. Capital of NPO is generally known as: ing events so that Pak Darmawan’s prod-
ucts sell well in the market and the com-
A. Equity pany’s financial impact is growing. From
B. Accumulated fund the illustration of Mr. Darmawan’s com-
pany, what type of assets do you mean
C. Capital fund
A. Tangible fixed assets
D. Financial reserve
B. Intangible fixed assets
1198. Which of the following groups has only C. Depresiasi fixed assets
external users of accounting information?
D. Deplesiation of intangible fixed assets
A. owners, present investors, stock ex-
change E. Amortisasi fixed assets
B. potential investors, government plan- 1202. Which of the following accounts will be
ners, stock exchange credited on giving cash donation?

A. Cash A/c 1207. A list of all accounts used by a com-

pany, including the identification number
B. Donation A/c
assigned to each account, is called a:
C. Purchases A/c
A. Ledger
D. None of these B. Journal
1203. Which of the following best represents C. Trial balance
a current liability D. Chart of accounts
NARAYAN CHANGDER
A. Short Term loan E. General Journal
B. Intangible asset 1208. Goodwill is a fictitious asset.
C. Sales revenue A. True
D. Building B. False
1204. What is the priority in financial account- 1209. To which sector does the textile indus-
ing? try belong to?
A. Using estimates and shortcuts A. Agro-based
B. Being relevant and timely B. Mineral based
C. Following a strict framework C. Chemical based

D. None of these
D. Being objective and precise
1210. Which statement is true about liquidity?
1205. In what circumstances is compensation Prepaid rent is
expense immediately recognized under a
share option plan? A. less liquid than rent revenue
A. In all circumstances. B. less liquid than land

C. Less liquid than inventories
B. In circumstances when the options are
exercisable within two years for services D. more liquid than inventories
rendered over the next two years. E. more liquid than cash
C. In circumstances when the options are
1211. Rent paid to landlord is Debited to
granted for prior service and the options
are immediately exercisable. A. Landlord’s a/c
D. In no circumstances is compensation B. Bad debts a/c
expense immediately recognized. C. Rent a/c
1206. The party who receives the goods in a D. Cash a/c

consignment sale is called 1212. Rent paid is related to:
A. Trustee A. Personal account
B. Commissioner B. Real account
C. Investor C. Nominal account
D. Creditor D. none of above

1213. The trading account is the first section 1217. Describe the process of preparing a bal-
of the P&L account and shows the differ- ance sheet.
ence between a firm’s sales revenue (the

A. Compile all assets, liabilities, and eq-
valueof products sold to customers) and uity of a company at a specific point in
its costs of producing or purchasing those time.
products to sell. Hence, the trading ac-
countshows the gross profit of a firm. B. Summarize the cash flow of a company
for a specific period of time.
A. no
C. Calculate the total profit of a company
B. yes by subtracting expenses from revenues.
1214. Alfredo received his bank statement D. List all the expenses and revenues of
which showed a balance of $937 over- a company over a specific period of time.
drawn. This did not agree with his cash
book.On investigation he noted the fol- 1218. Which of the following is used to report
lowing.Bank charges of $76 had not been data needed to meet legal and regulatory
entered in the cash book.There was an requirements?
unpresented cheque paid to suppliers of A. Assets
$214.Alfredo had recorded $35 cash paid B. Equity
into his bank account, but this was not
showing on the statement.At which value C. Tangible document
was the bank overdraft shown in the D. Financial statement
statement of financial position? E. None of the above
A. $758
1219. What are assets?
B. $937
A. What a company owns; anything of
C. $1116 value owned by a business.
D. $1192 B. Costs of operating a business.
1215. Accounting standard setting process be- C. Detailed plans for the financial needs
gan with formation IASC in London in of individuals, families, and businesses.
A. 1972 D. Differences between actual and bud-
geted performance.
B. 1973
C. 1974 1220. Marketable securities bought and held
primarily for salein the near term are clas-
D. 1975
sified as:
1216. While putting the value or price of an A. available-for-sale securities.
entity in financial records the lowest price B. held-to-maturity securities.
is recorded not the current price or current
market value. This is known as C. stock securities.
A. Business Entity Concept D. trading securities
B. Conservatism 1221. Credits will increase equity balances

C. Expenditure Concept A. True
D. Money Measurement Concept B. False

1222. Profit and loss a/c starts with 1228. Rent and rates paid are apportioned
A. net profit among the departments on the basis of
B. gross profit A. Sales
C. gross loss B. Space occupied

C. Purchase
D. net loss
D. Number of employees
1223. All membership collected by a non trad-
1229. T-account format is used in situations
NARAYAN CHANGDER
ing concern must be entered in the assets
side of the balance sheet where account balance is required
A. True A. Periodically
B. False B. After each transaction
C. At the end of the business
1224. Each instalment including down pay-
ment is treated as hire charges by the D. None of the above
A. Buyer 1230. Based on the consideration obtained on
B. Seller the share issue, the issue is classified as
C. None of these
A. Issue of shares for cash
D. none of above
B. Issue of shares for consideration
1225. The amount of money that an asset on other than Cash
the balance sheet is officially worth based C. Both of the Above
on its age, style, and condition.
A. Book value
B. Net worth 1231. Generally when an expense is involved
in a transaction, an expense will be
C. Purchase value
A. Debited
D. none of above
B. Credited
1226. Trade discount received on purchases is
1232. Who is the user of managerial account-
recorded in the books of account as fol-
ing information?
lows:
A. Investors
A. Trade discount is credited to discount
received account B. Managers
B. Trade discount is deducted from the in- C. Creditors
voice price and recorded at net value D. Business competitors
1233. Find out the amount of capital, Assets
D. Any of (a) and (b) Rs. 20, 000, Liabilities Rs. 5, 400
1227. Bank reconciliation statement is pre- A. Rs. 4, 200
pared to arrive at the bank balance. B. Rs. 14, 600
A. True C. Rs. 5, 600
B. False D. Rs. 12, 600

1234. Accounting provides data or information C. national debt

on
D. Banarupa

A. Income and cost for the managers
B. Financial conditions of the institutions 1240. Which of the following statements re-
garding reconciliation accounts are not
C. Company’s tax liability for a particular
true?
year
D. All the above A. Data are posted directly into them
B. Data are automatically posted into
1235. Cash discount allowed is recorded in the
them after they are posted to the corre-
books of account as follows:
sponding sub-ledger
A. Cash discount is debited to discount al-
lowed account C. The reconciliation account includes
the sum of the postings of the sub-ledgers
B. Cash discount is reduced from the in-
voice price D. None of the above
1241. Which category of accounts is category
D. Any of (a) and (b) 1?
1236. A tool used to increase or decrease each A. asset
a account that is affected by a transaction.
B. debt
A. debit
C. income
B. credit
C. T account D. Owner’s equity
D. normal balance 1242. The primary objective of financial ac-

1237. The business entity concept requires counting is:
that a business is treated as being sepa- A. To help organizations keep track of fi-
rate from its owners nancing activities.
A. True B. To provide external reports to help
B. False users analyze an organization’s activities.
1238. To decrease the balance in the following C. To help an organization define its
accounts, would you debit the account or ideas, goals, and actions.
would you credit the account?Prepaid In-
D. To help an organization to keep track
surance
of its buying and selling of resources.
A. Debit
E. To prepare budgets.
B. Credit
1239. When the government spends more 1243. Any loss resulting on sale of repos-
money than it receives in revenue, it is re- sessed goods can be recovered from hire
ferred to as purchaser
A. debt A. True
B. deficit B. False

1244. Wallowa Company purchased supplies $2, 000, interest expense $500, operat-
costing $6, 000 and debited Supplies for ing expense $3, 500, sales revenue $14,
the full amount. At the end of the account- 000), what amount would be reported for
ing period, a physical count of supplies re- the subtotal “income from operations”?
vealed $1, 800 still on hand. The appro- A. $8, 000
priate adjusting journal entry to be made
at the end of the period would be B. $2, 000
A. Debit Supplies Expense, $1, 800; C. $4, 500
NARAYAN CHANGDER
Credit Supplies, $1, 800. D. $4, 000
B. Debit Supplies, $4, 200; Credit Sup- 1249. The money and things a company owns
plies Expense, $4, 200. or controls.
C. Debit Supplies Expense, $4, 200; A. Assets
Credit Supplies, $4, 200.
B. Accounts Payable
D. Debit Supplies, $1, 800; Credit Sup-
plies Expense, $1, 800. C. Shareholders Equity
D. none of above
1245. Which of the following is not a column
of a three column cash book? 1250. In the absence of a partnership agree-
A. Cash ment, additional capital contributions by
partners attract interest of
B. Bank
A. 5%
C. Discount
B. 10%
D. Petty Cash
C. 12%
D. 15%
1251. Which user is matched correctly with its

major need?
A. User:ShareholderNeed:Assess man-
agers’ stewardship
A. 3, 050, 000 B. User:Trade UnionNeed:Potential eq-
B. 2, 950, 000 uity investment
C. 3, 450, 000 C. User:Government Need:Analyse com-
D. 2, 800, 000 pany’s performance in relation to others
D. User:Trade creditorsNeed:Assess se-
1247. The profit and loss account shows the curities to provide loans
trading position of a business at the end
of a specified accounting period. 1252. Internal groups interested in Accounting
A. YES information:
B. NO A. Creditors
B. Government
1248. If a company reported the following
items on its income statement (cost of C. Owners
goods sold $6, 000, income tax expense D. none of above

1253. A business is started with the injection C. to find out the Profitability & Financial
of $10, 000 in cash. In which account is Position of any business at given point of
the credit entry made? time

A. Cash D. recording the event
B. Capital 1259. A company issues 100 000 new $1
1254. Where will you record the following ordinary shares at a premium of $0.20
transaction:Cash purchase of goods each.Which effect does this have on the
statement of financial position?
A. Both debit and credit
A. Equity increases by the nominal value
B. Credit side of the shares but decreases by the value
C. Debit side of the premium.
D. none of above B. Equity increases by the nominal value
of the shares only.
1255. Which of these are an example of a Di-
C. Net assets increase by the nominal
rect Cost?
value of the shares plus the value of the
A. Royalties premium.
B. Production Wages D. Net assets increase by the nominal
C. Depreciation of Factory Machinery value of the shares but decrease by the
value of the premium.
D. Factory Insurance
1260. Investments made by the owner into
1256. Double entries of selling goods on credit the business
to Ali
A. Current Asset
A. Dr. AliCr. Sales
B. Fixed Asset
B. Dr. BankCr. Sales
C. Current Liability
C. Dr. AliCr. Bank
D. Owner’s Equity
D. Dr. AliCr. Cash
1261. The basic rules of bookkeeping “Debit
1257. The ratio to show the ability of own cap- all expenses and losses and credit all in-
ital to generate profits for both preferred comes
and ordinary shareholders is
A. Personal account
A. Rate of Return on Equity
B. Nominal account
B. Rate of Return on Net Worth
C. Real account
C. Net Earning Power Ratio
D. none of above
D. Earning Power of Equity
1262. The cash book records all cash
1258. What are the objective of Financial Ac-
counting. A. Receipts
A. to find out the Profitability of business B. Payments
B. to find out the Financial Position of C. Receipts and payments

business. D. None of the above

1263. Assets, liabilities and equity reflect the 1268. The Assumptions that the business will
value of current resources continue to operate in the future and its
A. 1 time records are kept on that basis is the
B. 1 period A. Entity assumption
C. Nothingness B. Period assumption
D. 1 point in time or 1 period of time C. Accrual basis assumption
1264. Which of the following companies have D. Going concern assumption
NARAYAN CHANGDER
this kind of logo?
1269. As of December 31, 2020, Cancon Com-
pany has assets of $42, 000 and owner’s
equity of $22, 000. What are the liabil-
ities for Cancon Company as of December
31, 2020?
A. $22, 000.
B. $20, 000.
A. LIFEBLOOM FINANCIAL GROUP C. $42, 000.
B. WESTMILL CAPITAL D. $64, 000.
C. LEOSTAN FINANCE 1270. What is the left side of a T account?
D. GRIFFIN
A. Debit
1265. Return outwards are B. Credit
A. Goods returned to supplier
1271. To convey the Language of Business, cer-
B. Goods received from supplier tain principles are required to be followed
C. Goods sold to customers for maintaining Business transactions.
D. Goods returned from customer A. true
1266. An assumption is that a sale is deemed B. false
to have taken place at the time at which C. can’t say
the goods are delivered.
D. depend on situation
B. Relevance 1272. Paid Salary to Staff via Bank Transfer
C. Matching Concept 1, 00, 000.
D. Reliability A. Salary A/C (Debit)-To Cash A/C

(Credit)
1267. An amount entered on the left side of a
B. A) Salary A/C (Debit)-To Bank A/C
T account.
(Credit)
A. debit
C. A) Cash A/C (Debit)-To Bank A/C
B. credit (Credit)
C. normal balance D. A) Salary A/C (Debit)-To Income A/C
D. all of the above (Credit)

1273. Income and expenditure account is a 1279. Equipment is depreciated at 10% of

A. Personal account cost, in Trial Balance there is an Equipment
account Rp20.000.000 and Accumulated

B. Nominal account Depreciation Equipment Rp5.000.000
C. Real account A. Depreciation Expense (D) Rp4.000.000
D. Real and nominal account Accumulated Dep. Equipment (K)
Rp4.000.000
1274. owners equity, assets and liabilities are B. Depreciation Expense (D) Rp1.500.000
shown on which year end statement Accumulated Depreciation (K) Rp1.500.000
A. Income statement
B. Cash flow statement C. Depreciation Expense (D) Rp2.000.000
Accumulated Dep. Equipment (K)
C. Balance sheet
Rp2.000.000
D. Profit and Loss Account D. Depreciation Expense (D) Rp1.000.000
Accumulated Dep. Equipment (K)
Rp1.000.000
low:Inventory carried forward from the
previous accounting period 1280. $Work in progress as at January 1 1
A. Opening Inventory 600Work in progress as at December 31
1 700Cost of materials used 3 000Indi-
B. Purchases
rect expenses 3 200Factory wages 5 000
C. Closing Inventory What is the cost of goods produced?
D. Carriage In A. $ 8 000
B. $ 8 700
1276. The calculation and interpretation of a
financial ratio is called ratio analysis. C. $11 100
A. True D. $11 200
B. False 1281. X buys a machine on 1 January 2000
for $10 000 and depreciates it by 20 %
1277. the most complex form of business or- per annum using thestraight-line method.X
ganization. sells the machine on 1 January 2003 for
A. Corporation $3000.What is the profit or loss on dis-
posal?
B. Partnership
A. $1000 loss
C. Sole Proprietorship
B. $3000 loss
D. none of above
C. $1000 profit
1278. A reduction in the ability of plant asset D. $3000 profit
to provide service over time is known as:
1282. Obligations (amounts owed) are re-
A. accrual accounting
ported on the statement of financial posi-
B. depreciation tion and are referred to as
C. deferrals A. Assets
D. GAAP B. Liabilities

C. Equity C. Bank deposits

D. Debt D. Chequing
1283. Which of the following is the basis for E. all of the above
apportioning rent among departments?
1289. A method of inventory of merchandise
A. Sales that results in low taxes
B. Floor area A. FIFO
NARAYAN CHANGDER
C. Number of employees B. LIFO
D. Direct labour cost C. Average
1284. The purchase of treasury shares D. Specific Identification
A. Decreases shares authorized 1290. Discuss the importance of financial
B. Decreases shares issued accounting in decision-making for busi-
nesses.
C. Decreases shares outstanding
A. Financial accounting helps businesses
D. Has no effect on shares outstanding
make informed decisions by providing cru-
1285. Notional Loss Method is also Known as cial financial information.
A. Minimum Loss Method B. Financial accounting is only useful for
personal finance, not for businesses
B. Average Loss Method
C. Financial accounting has no impact on
C. Expected Loss Method
decision-making
D. Maximum Loss Method
D. Financial accounting only provides ir-
1286. is a specialised branch of accounting relevant information for decision-making
that keeps track of a company’s financial
transactions. 1291. What does GST stands for
A. Cost accounting A. Grocery service tax
B. Management accounting B. Goods and service tax
C. Financial Accounting C. Goods and sustainability tax
D. Corporate accounting D. Good stuff tax
1287. CURRENT VALUE INCLUDES ALL THE 1292. selling an asset would be an example of
FOLLOWING, EXCEPT A. cash inflow
A. FAIR VALUE B. cash outflow
B. HISTORICAL COST
1293. How do you calculate the breakeven
C. CURRENT COST point?
D. FULFILLMENT VALUE A. Fixed cost / contribution per unit
1288. Banking activities include B. fixed cost + variable cost
A. Bank accounts C. Contribution / Variable cost per unit
B. Electronic funds transfer D. none of above

1294. In comparison to common stockholders 1299. The car was purchased in August 2017
preferred stockholders generally: for Rp. 200, 000, 000. until June 30
2018, Rp. 10, 000, 000. on September 3

A. get paid dividends first
2018 it was exchanged for a new car of
B. have no voting rights the same type at a price of Rp. 240, 000,
C. have first right to company assets in 000. at the time of exchange cash of IDR
case of bankruptcy was handed over. 55, 000, 000. record
D. all of the above the transaction in the journal
A. Car(new) Rp. 240, 000, 000 Akm. Car
1295. If revenue expenditure transaction is
cost Rp. 10, 000, 000 Car exchange loss
mistakenly classified as capital expendi-
Rp. 5, 000, 000 Car (old) Rp. 200, 000,
ture, what is the effect on the following
000 Cash Rp. 55, 000, 000
items in financial statement?
A. Current asset will reduce B. Car Rp. 240, 000, 000 Cash Rp. 240,
000, 000
B. Current asset will increase
C. Car (old) Rp. 200, 000, 000Cash Rp.
C. No effect on current asset
55, 000, 000 Car (new) Rp. 240, 000, 000
D. none of above Akm. Car cost Rp. 10, 000, 000 Car Ex-
change Losses Rp. 5, 000, 000
1296. Define the term ‘depreciation’ in ac-
counting. D. Car (old) Rp. 200, 000, 000 Cash Rp.
A. Allocation of the cost of a tangible as- 55, 000, 000 Car (new) Rp. 240, 000, 000
set over its useful life Akm. Car cost Rp. 10, 000, 000 Profit from
car exchange Rp. 5, 000, 000
B. Selling an asset at a higher price than
its original cost 1300. In accounting, the phrase to “to recog-
C. The increase in value of an asset over nize” means (choose the incorrect state-
time ment)
D. The process of recording revenue from A. to record.
the sale of an asset B. to journalize.
1297. Purchase price of the ship = 10, 00, C. to include in the totals of the balance
000-Years of life of the ship = 16, Dura- sheet or income statement.
tion of voyage = 45 days
D. to say “hi.”
A. Rs. 7, 705-
B. Rs. 6, 250- 1301. Calculate the Units available for Sale
and the Goods available for sale ($) using
C. Rs. 4, 500-
the following information:Purchases:Jan:8
D. Rs. 7, 205- units @ $140; Feb:10 @ $135; March:13
@ $130; April:15 @$120; May:8 @
1298. The process of recording financial data
$115.
up to trial balance is
A. Book keeping A. 50 units/$5, 400
B. Classifying B. 76 units/$8, 740
C. Summarising C. 64 units/$7, 890
D. Analyzing D. 54 units/$6, 880

1302. Unmarked applications refers to 1307. The hire purchase system is regulated
A. Applications bearing the stamp of the by the Hire purchase Act
underwriters A. 1970
B. Applications carrying the signatures of B. 1971
public who applied for shares C. 1972
C. Applications carrying the stamp of D. 1973
company which offered the shares
NARAYAN CHANGDER
D. Application bearing Government 1308. SKPD
stamp A. Regional Apparatus Performance Unit
1303. is the book of original or prime entry B. Regional Work Unit

which is used for recording small disburse- C. Regional Government Work Unit
ment or expenses (a) (b) (c) (d) D. Regional Government Performance
A. Cash book Unit
B. Petty cash book 1309. Choose the correct option
C. Trial balance
D. Bank statement
1304. Incomes are debited

A. 3, 000, 000
A. True
B. 5, 000, 00
B. False
C. 4, 000, 000
C. Partially True
D. 2, 000, 000
1310. All the following are non manufacturing
1305. If average total assets increase, but net
cost except
income, net sales and average stockhold-
ers’ equity remain the same, what is the A. Selling expenses
impact on the return on assets ratio? B. Direct expenses
A. increases C. Distribution expenses
B. decreases D. Administration expenses
C. remains the same 1311. Zang Company had no office supplies on
D. cannot be determined without addi- hand at the beginning of the year. Dur-
tional information ing the year, the company purchased $250
worth of office supplies. At the end of the
1306. Net Revenue means all proceeds from year, $50 worth of office supplies were
the sale of goods and services excluding on hand. How much should Zang Company
the report as office supplies expense for the
A. profit year?
B. cost of goods sold A. $75
C. returns B. $325
D. SG & A expenses C. $200

D. $175 adjusting entry at the end of December

E. $125 2020 was

A. Salaries Expense (D); Salaries Payable
1312. The unrealised profit in opening stock is (K) Rp. 50.000
transferred to which account which side?
B. Salaries Expense (D); Salaries Payable
A. Debit Side of General Profit and Loss (K) Rp. 150.000
Account
C. Salaries Expense (D); Salaries Payable
B. Credit Side of General Profit and Loss (K) Rp. 750.000
Account
D. Salaries Expense (D); Salaries Payable
C. Assets Side of Balance Sheet (K) Rp. 250.000
D. Liability Side of Balance Sheet
1317. The account that reflects money owed
1313. Which of the following documents sets to the employees earned as of the end of
out the internal regulations of a partner- the period but not paid.
ship?
A. Interest Payable
A. Law
B. Depreciation Payable
B. Deed
C. Wages Payable
C. Regulation
D. Liability
D. Code
1318. When the issue price and face value are
1314. Preparing financial statements at the same, the issue is termed as
end of each monthly fiscal period is an ap-
A. Issued at Premium
plication of the accounting concept:
A. Adequate Disclosure. B. Issued at Par
B. Going Concern. C. Issued at Discount
C. Objective Evidence. D. All of the Above
D. Accounting Period Cycle. 1319. On settlement of the vendors account,

the correct accounting entries are debit
1315. Under which of the following circum- vendor account and credit
stances will the asset of hire purchase
legally belong to the purchaser? A. bank account
A. When the deposit is paid B. purchase consideration account
B. When the hire purchase agreement is C. capital reserve account
signed D. goodwill account
C. When the first instalment is paid
1320. A non-cash journal entry at the end of a
D. When the final instalment is paid period that adjust a balance sheet account.
1316. Employee salaries are paid every Satur- A. Reversing entry
day for 6 working days. Employee salary B. Adjusting Entry
per person Rp. 50, 000/day. Cafe “Dan-
bam” has 5 employees. The last salary C. Payable Entry
payment was on December 28 2020. The D. Liability Entry

1321. Which is not included in the category of 1327. What is the value of the closing inven-
current liabilities? tory?
A. long-term obligation A. £13, 480
B. note payable B. £11, 180
C. trade debt C. £15, 680

D. £10, 980
D. income received in advance
NARAYAN CHANGDER
1328. The following are the reasons why com-
1322. An asset-expense relationship exists panies invest in debt or stock securities,
with except:
A. liability accounts. A. the company may have more money
B. revenue accounts. B. to generate income from investments
C. prepaid expense adjusting entries. C. to increase the company’s liabilities
D. accrued expense adjusting entries. D. for strategic reasons
1323. Financial Statements 1329. A schedule showing the principle, inter-

est, and remaining balance for each pay-
A. Direct cost ment on a loan.
B. Administrative A. Amortization Schedule
C. Operative B. Payment Schedule
D. Balance Sheet, Income statement C. Depreciation Schedule
D. Interest Schedule
1324. Capital provided by the owner is
treated as a liability. 1330. Dead Rent is also called as
A. True A. Outstanding Rent
B. False B. Prepaid Rent
C. Minimum Rent
1325. Which of the following is not a transac-
D. Post paid Rent
tion that will affect owner’s equity?
A. paid cash for supplies 1331. The procedures and processes used by a
company to safeguard assets, process in-
B. received cash from sales formation accurately, ensure compliance to
C. sold services on account rules and regulations.
D. received cash from owner as an invest- A. Internal control
ment B. Control Environment
C. Risk assessment
1326. Memorandum joint venture account is
prepared to find out amount due from co D. Monitoring
venture
1332. The process of collecting, measuring and
A. True recording an enterprise’s transactions.
B. False A. Business Transaction

B. Financial Accounting needed to pay for construction may be tem-

C. Bookkeeping porarily invested in interest-bearing secu-
rities. Interest earned on these temporary

D. Financial Statements investments should be
1333. Buyer pays freight costs A. offset against interest cost incurred
during construction
A. FOB
B. recognized as revenue of the period
B. FOB Shipping Point
C. increase the cost of assets being con-
C. FOB Destination
structed
D. FOB Merchandise
D. multiplied by an appropriate interest
1334. What is Accounting? rate to determine the interest to be cap-
italized
1338. Accounting is defined as a process of the

following, except
A. Recording
B. Recognizing
A. systematic record of transaction C. Summarizing
B. Analysing D. Classifying
C. interpretating 1339. A cash book with a credit balance indi-

D. All the above cates a bank
A. Asset
1335. The date of the balance b/d is:
B. Loan
C. Account
D. Overdraft
1340. Choose enhancing qualitative character-

A. 31 January
istics.
B. 1 February
A. Verifiability.
1336. there are 2 systems of accounting i.e B. Understandability.
cash basis system of accounting and
C. Timeliness
basis of accounting
D. All of these.
A. double entry
B. accrual 1341. Goodwill may be brought into the books
C. single entry when
D. dual aspect A. no partner retires

B. assets are more than liabilities
1337. When funds are borrowed to pay for
construction of assets that qualify for capi- C. profit for the period is high
talization of interest, the excess funds not D. a new partner is admitted

1342. What is the purpose of a trial balance? C. Transactions are presented in such a
A. To ensure the accuracy of entries in a way to maximise asset values in the state-
company’s bookkeeping system ment of financial position.
B. To record all cash and bank transac- D. Transactions are presented to reflect
tions their commercial substance of a transac-
tion rather than their legal form.
C. To keep track of all sales and revenue
D. To contain all impersonal accounts 1348. Which book of original entry records all
NARAYAN CHANGDER
the purchase invoices for goods and ser-
1343. Which of the following is a direct cost? vices supplied on credit to the firm?
A. Factory rent A. Sales Returns Daybook
B. Production workers’ wages B. Purchases Daybook
C. Factory supervisor’s salary C. Sales Daybook
D. Factory machine maintenance D. Purchases Returns Daybook
1344. True or False. It is possible for a com-
1349. What are the basic principles of financial
pany to be profitable but have negative
accounting?
cash flows.
A. Principles of irregularity, inconsis-
A. True
tency, insincerity, impermanence of meth-
B. False ods, compensation, recklessness, discon-
tinuity, unpredictability, and bad faith.
1345. Which of the folowing is the example of
prepaid expenses? B. Principles of accuracy, flexibility, hon-
esty, changeability, compensation, risk-
A. Unearned revenue
taking, discontinuity, unpredictability, and
B. Unexpired insurance bad faith.
C. Uncollected revenue C. Principles of regularity, consistency,
D. Office supplies sincerity, permanence of methods, non-
compensation, prudence, continuity, peri-
1346. concept has the basic of Continuity odicity, and good faith.
of life.
D. Principles of regularity, inconsistency,
A. Going concern concept insincerity, impermanence of methods,
B. Business entity concept non-compensation, recklessness, discon-
C. None of the above tinuity, unpredictability, and bad faith.
D. none of above 1350. Property and equipment are examples
of current assets
1347. Which of the following statements best
explains the principle of faithful represen- A. True
tation in relation to the preparation of the B. False
annual financial statements?
A. Transactions are presented any way 1351. Book-Keeping is the first stage of ac-
that is considered appropriate. counting
B. Transactions are presented in such a A. True

way as to maximise profit for the year. B. False

C. Partial True What is the financial statement that you

D. None of the above need to check?

A. Income Statement
1352. Double entries of buying goods with
B. Balance Sheet
cash from Abu
A. Dr. PurchasesCr. Abu
D. Statement of Owner’s Equity
B. Dr. PurchasesCr. Cash
C. Dr. AbuCr. Purchases 1357. This is applied when there is uncertainty
of the accounting choice to be used.
D. Dr. CashCr. Purchases
A. cost benefit
1353. There are three parts of accounting stan- B. materiality
dards, EXCEPT
C. conservatism
A. Description of the problem to be
D. industry practice
tacked.
B. A discussion or ways of solving the 1358. All the factors that influence financial re-
problem porting practices in Malaysia except
C. Making a conclusion without any dis- A. legal system
cussion B. tax laws
D. A line with decision or theory, the pre- C. educational system
scribed solution D. culture
1354. The following defines Accounting ex- E. foreign currency
cept:
1359. are paid on many sources of income you
A. A service activity might earn, like the taxes taken directly
B. An information that is collected is pri- from your paycheck.
marily numerical. A. Income Taxes
C. An information system. B. Personal Taxes
D. An art of recording, classifying and C. Safe Taxes
summarizing. D. Sales Tax
1355. The corporate financial reporting prac- 1360. A book or set of electronic files that con-
tices of Malaysia are primarily governed tains the accounts used for a business.
by the Companies Act 1965 (now, Com-
A. journal
panies Act 2016), the Securities Commis-
sion Act 1993, the Kuala Lumpur Stock B. trial balance
Exchange (KLSE) Listing Requirements and C. general ledger
the Companies Commission of Malaysia.
D. worksheet
A. True
1361. Concept:Financial information is re-
B. False
ported for a specific period of time on
1356. You want to know how much cash came financial statements.
out from the business to the suppliers. A. Matching Expenses with Revenue

B. Accounting Period Cycle C. Real a/c

C. Business Entity D. None
D. none of above 1368. The exclusive right to publish, perform,
1362. The original cost of a plant asset minus or reproduce music, art, film, books, or
accumulated depreciation. software.
A. Copyrights
A. assessed value
B. Patents
NARAYAN CHANGDER
B. half-year convention
C. Trademarks
C. current asset
D. Goodwill
D. book value of a plant asset
1369. Carriage inwards are
1363. Hybrid Basis of Accounting is the com-
bination of both Cash as well as Accrual A. Credited to the Trading Account
basis. B. debited to the Trading account
A. True C. credited to the Profit and Loss account
B. False D. debited to the Profit and Loss Account
1364. What is the amount of the monthly 1370. When the goods are returned by branch
IRPP for an annual taxable net amount goods sent to branch account will be cred-
to:31297.97024 ited in the books of head office.
A. 592.946 A. True
B. 692.946 B. False
C. 492.946 1371. Financial statements are prepared in the
D. 792.946 following order
A. Balance sheet, statement of changes
1365. manufacturing companies prepares
in equity, income statement
A. manufacturing account
B. Statement of changes in equity, bal-
B. trading account ance sheet, income statement
C. purchase account C. Income statement, balance sheet,
D. none of above statement of changes in equity
D. Balance sheet, income statement,
1366. The expenses which are due but have
statement of changes in equity
not been paid are called
E. Income statement, statement of
A. Prepaid expenses
changes in equity, balance sheet
B. Advance expenses
1372. The loss on sale of furniture is debited
C. Accrued expenses
to account
D. Unincurred expenses A. Profit and loss
1367. Drawings account is related to B. Furniture
A. Nominal a/c C. Depriciation
B. Personal a/c D. Trading

1373. A dividend is the distribution of corpo- C. You can make an unlimited amount of
rate profits to eligible shareholders money
D. It is hard to start a business

A. True
B. False 1378. In the case of the death of the part-
ner, accounting treatment will be similar
1374. Item 20 refers to the following:Factory
to that of a retiring partner.
workers’ wages-$2 250Direct materials-
$3 200Factory lighting-$550Factory man- A. True
ager’s salary-$2 400Indirect materials- B. False
$625 What is the total value of indirect
expenses? 1379. In a sales ledger control account, bad
debts written off should be shown as
A. $625
A. a debit.
B. $2 950
B. a balance carried down.
C. $3 025
C. a credit.
D. $3 575
D. both a debit and a credit.
1375. The assets that can be easily converted
1380. During August, Gallery Corp. purchased
into cash within a short period, i.e., 1 year
$4, 000 worth of supplies. At August
or less are known as
31 the adjusted balance in the Supplies ac-
A. Current assets count was $2, 800. The adjusting entry
B. Fixed assets included a $1, 200 debit to Supplies Ex-
pense.
A. True
D. Investments
B. False
1376. On December 16, 20x1, Entity E hired
a new staff with a monthly salary of $4, 1381. When the Issue Price is lower than the
600. Monthly salary is paid on the 15th Face Value, the issue is termed as
of each month. Prepare journal entries on A. Issued at Discount
the following dates:December 31, 20x1 B. Issued at Premium
A. Salary Expense (D) 4600Salary C. Issued at Par
Payable (K) 4600
D. All of the Above
B. Salary Payable (D2300 Salary Ex-
penses) 2300 1382. Which statement shows a period of
time?
C. Salary Payble (D) 4600Salary Expense
(K) 4600 A. Income Statement
D. Salary Expense (D) 2300Salary B. Balance Sheet

Payable (K) 2300 C. Both A & B
D. Neither A nor B
1377. What does unlimited liability mean?
A. You are responsible if the business 1383. The right hand side of a “T” account is
fails called
B. You are not responsible if the business A. Debit
fails B. Credit

1384. With the object to promote sales the cus- 1389. Income and Expenditure Account re-
tomers are allowed veals:
A. Cash Discount A. Net Profit
B. Cash & trade discount B. Cash in hand
C. Trade Discount C. Surplus or Deficit
D. Loan D. Bank overdraft
NARAYAN CHANGDER
1385. Accounting standards result from the in- 1390. Capital fund of non profit organization
teraction of factors includes
A. economic events A. Cash and bank balance
B. personal interests B. Dividends and shares
C. historical journey C. Mutual funds
D. all true D. Donations and membership fees
1386. The established system of keeping track 1391. In the financing phrase, 2/10, n/30,
of economic resources such as money, what does the number 2 represent?
buildings, equipment, and products
A. Accounting
B. Finance
C. Journalizing
D. Managerial Accounting
A. The discount percentage
1387. Financial obligations that will not be
paid off within a year B. The number of days the customer has
to pay the remaining balance
A. Current Assets
C. The remaining balance percentage
B. Account Payables
D. The number of days the customer has
C. Long-Term Liabilities to return the product
D. Fixed Assets
1392. is concerned with the production of
1388. What is the significance of the trial bal- financial statements for external users.
ance in financial accounting? A. Management reporting
A. It has no impact on the accuracy of the B. Environmental reporting
accounting records C. Financial accounting
B. It is only important for small busi- D. none of above
nesses
C. It is used to calculate the total revenue 1393. Transaction & events not capable of be-
of the company ing expressed in terms of money are not
to be recorded in accounting due to
D. It helps in detecting errors and en-
suring the accuracy of the accounting A. Going concern
records. B. Accounting entity

C. Money measurement 1399. is the scope of financial accounting.

D. Periodicity A. Collection and processing of data

1394. are the basis of the business’s fi- B. Verifying or auditing data
nancial accounting.A. Accounting recordsB. C. Publishing data
BookkeepingC. Sales VolumeD. Both A & B
D. All of the above
A. Accounting records
B. Bookkeeping 1400. Cash book is having Types?
C. Sales Volume A. 1
D. Both A & B B. 2
C. 3
1395. If Push Company owned 51 percent in
the outstanding common stock of Shove D. 4
Company, which reporting method would
1401. Using the information in Question 6,
be appropriate?
what entry would Horicon make to record
A. Cost method the receipt of the dividend from Sheboy-
B. Consolidation gan?
C. Equity method A. Debit Cash and credit Revenue from
D. Merger method Stock Investments.
B. Debit Cash Dividends and credit Rev-
1396. Adjusting entries enue from Stock Investments.
A. Affect only equity accounts
C. Debit Cash and credit Stock Invest-
B. Affect only statement of cash flows ac- ments.
counts
D. Debit Cash and credit Dividend Rev-
C. Affect only income statement accounts enue.
D. Affect only balance sheet accounts
1402. Viking issues $100, 000 5% loan
E. Affect both income statement and bal- notes on 1 January 20X4, incurring issue
ance sheet accounts costs of $3, 000.These loan notes are re-
1397. Receipts and Payments Account is pre- deemable at a premium, meaning that the
pared by adopting cash principle of ac- effective rate of interest is 8% per an-
counting. num.What is the finance cost to be shown
in the statement of profit or loss for the
A. True year ended 31 December 20X5?
B. False A. $8, 240
1398. Which principle/guideline justifies a B. $7, 981
company violating an accounting principle
C. $7, 760
because the amounts are immaterial?
D. Other
A. Materiality
B. Full Disclosure 1403. The effect for cash sales is?
C. Conservatism A. Assets increase, liability increase
D. Monetary Unit B. Assets increase, revenue increase

C. Assets decrease, revenue increase 1409. a

D. Assets increase, revenue decrease A. b
B. c
1404. Net income appears on which of the fol-
lowing statement(s)? C. d
A. Balance sheet D. none of above
B. Income statement 1410. Liabilities that are owed for more than
NARAYAN CHANGDER
C. Statement of changes in equity 12 months are referred to as:
D. Statement of cash flows A. Current liabilities
E. Both an income statement and state- B. Long-term Liabilities
ment of changes in equity C. Current Assets
1405. Use information in question one D. Equity
A. #23, 000 1411. For which category of financial liabilities
B. #18, 000 are transaction costs excluded from the ini-
tial value, and instead expensed to profit
C. #16, 000
or loss
D. #13, 000
A. Financial Liabilities at amortised cost
1406. The discount on the debit side of a triple B. Financial Liabilities at fair value
column cashbook is called through profit or loss
A. discount allowed 1412. On December 31, there is unpaid bank
B. Trade discount interest for this month which is calcu-
lated with an interest rate of 12%. In
C. discount received
Trial Balance there is a bank loan account
D. discount flow Rp100.000.000
1407. Which category of accounts is category A. Interest Expense (D) Rp2.000.000 In-
3? terest Payable (K) Rp2.000.000
A. asset B. Interest Expense (D) Rp1.000.000 In-

terest Payable (K) Rp1.000.000
B. debt
C. Interest Expense (D) Rp3.000.000 In-
C. income terest Payable (K) Rp3.000.000
D. Owner’s equity D. Interest Expense (D) Rp4.000.000 In-
terest Payable (K) Rp4.000.000
1408. Which of the following are assets?
A. Bank account 1413. An advantage of the partnership as
form of business organization would be
B. Vehicles
A. Partners do not pay income taxes on
C. Bank overdraft
their share in partnership income.
D. Furniture
B. A partnership is bound by the act of the
E. Credit card partners.

C. A partnership is created by mere 1418. What is the primary difference between

agreements of the partners. bookkeeping and accounting?

D. A partnership may be terminated by A. Bookkeeping focuses on recording
the death or withdrawal of a partner. transactions, while accounting involves fi-
nancial analysis and decision-making.
1414. Which of the following is true?
B. Bookkeeping is used for internal pur-
A. poses, while accounting is primarily for
external stakeholders.
C. Bookkeeping is a subset of accounting,
B.
and the terms are often used interchange-
ably.
C. D. Bookkeeping is only concerned with
tax compliance, while accounting encom-
passes all financial activities
D. 1419. What is the transaction for rendering
services for cash?
1415. What is business A. Debit cash, credit unearned revenue
A. an economic activity B. Debit cash, credit owner’s capital
B. an economic activity to earn profit C. Debit cash, credit revenue
C. a social activity D. Debit cash, credit supplies
D. none of them 1420. Each Department is Considered as
1416. The historical cost principles states that: A. Profit and Loss Centre
A. assets should be initially recorded at B. Profit or Loss Centre

cost and adjusted when the fair value C. Profit Centre
changes D. Loss Centre
B. activities of an entity are to be kept
separate and distinct from its owner 1421. On September 1, 2018, Pine Company
issued a note payable to National Bank in
C. assets should be recorded at their cost the amount of P1, 800, 000, bearing in-
D. only transaction data capable of being terest at 12% and payable in three equal
expressed in terms of money be included annual principal payments of P600, 000.
in the accounting records On this date, the bank’s prime rate was
11%. The first interest and principal pay-
1417. An agreement between a buyer and a ment was made on September 1, 2019.
seller about payment for merchandise is What amount should be reported as inter-
called est expense for 2019?
A. Due date A. 144, 000
B. Terms of sale B. 216, 000
C. purchase order C. 192, 000
D. time of purchase D. 132, 000

1422. There is no difference between hire pur- 1426. Non-for-profit organisations prepare
chase and instalment system
A. True A. Trading account
B. False B. Trading &profit &loss account
1423. Book keeping is mainly concerned with C. Income and Expenditure account
A. Recording of financial data relating to D. Profit and loss account

business operation 1427. is the cost of transportation charged
NARAYAN CHANGDER
B. Designing the system in recording, on goods purchased(a)
classifying, summarizing the data A. Carriage Outwards
C. None of this B. Carriage Inwards
D. All of the above C. Returns Outwards
1424. Tor Corp. acquired 80% of Sam Inc. on D. Returns Inwards
Jan 5, 2017. The acquisition was made 1428. In the double-entry system, which ac-
at book value (no amortizations). During count type is debited when recording an
2017, Sam sold goods for $450 to Tor at increase in assets
a mark-up of 20% and Tor still had $150
on hand at Dec 31, 2017. What is the A. Revenue accounts
elimination worksheet entry to eliminate B. Expense accounts
intercompany sales? C. Liability account s
A. Dr. Sales $540Cr. Cost of sales $540 D. Asset accounts
B. Dr. Cost of sales $540Cr. Inventory
1429. (a) :A document sent to a customer
$540
by a company stating the fixed price that
C. Dr. Cost of sales $450Cr. Inventory would be charged to produce or deliver
$450 goods or services.
D. Dr. Cost of sales $150Cr. Inventory A. Quotation
$150
B. Purchase order
E. Dr. Sales $450Cr. Cost of sales $450
C. Receipt
1425. Assume Fisher Corporation usually D. Debit advice
earns taxable income, but sustains a loss E. Statement
in the current period. The entry to record
income taxes expense in the current period 1430. Nobes and Parker (2006) argue that
will most likely be: there is no ideal model of enforcement of
A. Increase the amount of that loss. accounting standards which fits all coun-
tries as it depends on the overall regula-
B. Include a credit to the Income Taxes tory system of the country. Two types of
Expense account. mechanisms, , can be used to enforce
C. Be an adjusting entry, rather than an accounting regulations, helping to ensure
entry to record a transaction completed quality in the financial reporting practices
during the period. of a country (Craig & Diga, 1996; Sauda-
D. Include a credit to Income Taxes garan & Diga, 2000).
Payable. A. positive and negative

B. conservatism and pluralism OF WORK EXPERIENCE IN THE PRACTICE

C. proactive and energetic OF PUBLIC ACCOUNTANCY

D. preventive and punitive D. COMPLIANCE WITH THE PHILIPPINES
INTERPRETATION COMMITTEE IMPLE-
1431. Written records that summarize that re- MENTATION GUIDANCE IS REQUIRED
sults of financial transactions affecting a FOR THE FAIR PRESENTATION OF FINAN-
business and report its current financial po- CIAL STATEMETN IN ACCORDANCE WITH
sition. PFRS
A. accounting cycle 1435. Another name for the balance sheet is
B. Financial Reports A. Statement Of Operations
C. business finance B. Statement Of Financial Position
D. accounting finance C. Statement of Profit or Loss
1432. Which of the following is a floating in- D. Statements Of Shareholders’ Equity
come security?
1436. The cost a company pays to create and
A. bond develop a product.
B. preference share A. Copyright
C. equity share B. Trademark
D. Bond C. Research and Development
1433. Find the term to match the meaning be- D. Depletion
low:Money the business receives from cus-
1437. Reduction in the ability of a fixed asset
tomers from selling their goods and ser-
to provide service over time.
vices
A. Gross profit
B. Deferrals (revenue/expenses)
B. Sales revenue
C. GAAP
C. Sales returns
D. Depreciation
D. Warehouse expenses
1438. A debt has been written off as bad even
1434. WHICH STATEMENT IS CORRECT? if there is still a chance that debtor may
A. THE BOARD OF ACCOUNTANCY IS eventually pay it. What concept is being
COMPOSED OF FIFTEEN MEMBERS WITH applied?
A CHAIRMAN A. prudence
B. THE FINANCIAL REPORTING STAN- B. going concern
DARD COUNCIL SHALL HAVE A CHAIR-
MAN WHO HAD BEEN OR PRESENTLY A SE- C. materiality
NIOR PRACTITIONER IN PUBLIC ACCOUN- D. substance over form
TANCY
1439. ACCOUNTING EQUATION is
C. A MEMBER OF THE AUDITING AND AS-
SURANCE STANDARD COUNCIL MUST BE A. Assets = Equities
A DULY REGISTERED CERTIFIED PUBLIC B. Assets = Internal Equities + External
ACCOUNTANT WITH AT LEAST TEN YEARS Equities

C. Assets = Capital + Liabilities 1445. = Sales revenue-Cost of goods

D. all of the above A. Gross Profit
B. Revenue
1440. What is the main purpose of GAAP?
A. Create fairness 1446. The type of asset which has no physical
existence but has rights as their value are
B. Create stability known as?
C. Create financial statements that are A. Fixed assets
NARAYAN CHANGDER
useful
B. Intangible assets
D. Reduce crime
C. Investments
1441. Financial accounting provides accounting D. Cureent assets
information to the though the informa-
tion is useful for internal purposes also 1447. Mr Song bought an existing business
assets valued at:Shophouse RM89, 000,
A. external users Motor Van RM31, 500, Inventory RM13,
B. internal users 700 and Liabilities RM21, 600. He paid
RM140, 000 for the business. This means
C. company
that
D. competitors
A. he paid RM15, 800 for the goodwill
1442. Which account is classified as an In- B. he paid RM27, 400 for the goodwill
come? C. he bore a loss of RM15, 800 for the
A. Auto Loan business purchase
B. college Fund D. he made a profit of RM27, 400 for the
business purchase
C. Bank Account
D. Allowance 1448. A good regulation is:
A. Clear
1443. The maximum number of members ex-
cluding persons who are employees of the B. Concise
company is for a private company C. Enforceable
A. 10 D. Complicated
B. 6 1449. The accounts of limited liability compa-
C. 5 nies are sometimes filed with the Regis-
trar of Companies
D. 12
A. TRUE
1444. The amounts incurred in the process of B. FALSE
earning revenue.
1450. Which ONE pair of the following items
A. Assets
would appear on the same side of the trial
B. Liabilities balance?
C. Owner’s Equity A. Drawings and accruals
D. Expenses B. Carriage outwards and prepayments

C. Carriage inwards and rental income 1456. Net income RM 200, 000Depreciation
expense RM 30, 000Gain on sale of truck
D. Opening inventory and purchase re-
RM 5, 000Proceeds from sale of truck RM

turns
8, 000Decrease in account receivable RM
1451. Land is a asset 10, 000 What amount will the corporation
report as the Net Cash Provided by Op-
A. Fixed Asset erating Activities on the cash flow state-
B. Current Asset ment?
C. Intangible Asset A. RM 225, 000
D. Fictitious asset B. RM 235, 000

C. RM 253, 000
1452. Which statement shows information at
a point in time? D. RM 218, 000
A. Balance sheet 1457. How many countries are currently using

the IFRS?
B. Statement of Profit or Loss
A. 138 and United States are one of them
C. Statement of Cash Flows
B. 138 and United States is not one
D. Income Statement
of them. Multinational Businesses are
barred from using them.
1453. Income from the sale of scrap is usually
shown in C. 138 and United States is not currently
one of them. Multinational business do
A. Profit and loss account
use IFRS anyway.
B. Trading account
D. All the countries are using GAAP in-
C. Manufacturing account stead of IFRS.
D. All of the above 1458. Payment of Rs. 6, 000 as wages
to workmen for installation of a machine
1454. If an expense is made, it has to be deb-
should be debited to:
ited to
A. Wages A/c
A. final accounts
B. Repairs A/c
B. Trial balance
C. Machinery A/c
C. Both
D. Installation A/c
D. none of above
1459. A hedge of the exposure to changes in
1455. A daysheet provides complete and up- the fair value of a recognized asset or li-
to-date information about ability, or an unrecognized firm commit-
A. Accounts payable ment, is classified as a
B. Accounts receivable A. Cash flow hedge
C. Accounts forwarded to a collection B. Receivable hedge

agency C. Hedge fund
D. Income taxes D. Fair value hedge

1460. Which Italian mathematician and Fran- 1465. Accrual concept is based on:
ciscan friar is often referred to as the “Fa- A. matching principle
ther of Accounting” for his contributions
B. dual aspect principle
to double-entry bookkeeping in the 15th
century? C. cost principle
A. Niccolo Machiavelli D. going concern concept
B. Luca Pacioli 1466. Which of the following is not a type of
General Insurance?
NARAYAN CHANGDER
C. Galileo Galilei
D. Leonardo da Vinci A. Fire insurance
B. Marine Insurance
1461. A statement of profit and loss is another
C. Accident insurance
name for:
D. Life insurance
A. The income statement
B. The balance sheet 1467. The cash over and short account
C. The statement of cash flows A. Is an income statement account used
for recording the income effects of cash
D. The statement of changes in equity overages and cash shortages from errors
E. The accounting equation in making change and missing petty cash
receipts and is not necessary in a comput-
1462. ALL OF THE FOLLOWING MAYBE REC- erized accounting system
OGNIZED AS A BIOLOGICAL ASSET, EX-
CEPT: B. Is not necessary in a computerized ac-
counting system
A. COCONUT TREE
C. Is an income statement account used
B. BEARER ANIMALS for recording the income effects of cash
C. MILKING COWS overages and cash shortages from errors
D. AGRICULTURAL PRODUCE GROWING in making change and missing petty cash
ON A BEARER PLANT receipts
D. Is used to record a credit balance in
1463. Sales book is meant for recording all the cash account
A. Credit sales E. None of these
B. Cash sales 1468. When goods are returned to the Sup-
C. Credit purchases plier, a Credit Note is raised and sent to
D. Cash transactions the Supplier
A. True
1464. A confirmation letter sent by a public ac-
countant to a debtor where the debtor is B. False
asked to send a reply directly to the public 1469. The financial statement that reports as-
accountant is called sets, liabilities, and equity is
A. Negative confirmation A. income statement
B. Positive confirmation B. retained earnings statement
C. List of receivable balances C. statement of financial position
D. . List of accounts receivable ages D. statement of cash flow

1470. Intangible assets are physical items B. A summary of activities in a business

such as buildings, machinery, and comput-
C. People who operate a business
ers.

A. True D. A program used by the business.
B. False 1476. “Cost of an asset/useful life (years)” is

1471. If Capital amounts to $2 550 and Liabili- the formula for:
ties amounts to $400, what is the amount A. Diminishing Balance Depreciation
for Assets? Method.
A. $2950 B. Sum of Years’ Digits Depreciation
B. $2150 Method
C. $2800 C. Straight Line Depreciation Method
D. $3050 D. Double Declining Balance Deprecia-
tion Method
1472. Financial accounting reports to the
after the completion of the accounting
1477. A compound journal entry
year.A. internal managementB. external
partiesC. MediaD. rivals A. has equal debits and credits
A. internal management B. generally extends to several pages
B. external parties C. does not require narration
C. Media
D. all of these
D. rivals
1478. The purpose of preparing a departmen-
1473. Which of the following should be
tal profit and loss account for a firm is
recorded under non-current liability in the
SOFP? A. to show the relative financial perfor-
A. Accounts Payable mance of different sections of the firm.
B. Salaries Payable B. to estimate the firm’s.future cash re-

quirements.
C. Long-term Debt
D. Prepaid Expenses C. to ensure that all likely bad debts are
provided for.
1474. What is meant by current liabilities? D. to ensure that discounts allowed by
A. Fines to be paid by the company the firm do not exceed discounts received
B. Debts that must be paid by the com- by it.
pany for more than one year
1479. not the cause of the difference in the
C. Debts that must be paid by the com- cash balance at the bank
pany in less than a year
A. Deposit In Transit
D. none of above
B. Outstanding Check
1475. Which of the following is the correct def-
inition for the term transactions? C. Error
A. A list of items in a business D. Bank Service Charge

1480. “Bank overdraft” is an item which is A. Historical Cost Concept

classified into what type? B. Accounting Period Concept
A. Current assets C. Revenue Recognition Concept
B. Non-current assets D. Matching Concept
C. Current liabilities
1486. *The balance sheet is based on the fun-
D. Non-current liabilities damental equation:
NARAYAN CHANGDER
1481. Non-Departmental items of expenses A. Assets = Liabilities+ Retained Earn-
are charged to ings
A. Departments on the basis of sales B. Assets = Liabilities+ Profits
B. General Profit and Loss account C. Assets = Liabilities + Share Capital
C. Departments based on fixed assets D. Assets = Liabilities + Shareholders’
employed Equity
D. Capital fund 1487. Nominal accounts are related to?
1482. The concept states that businesses A. assets and liabilities
should be treated as if they will continue B. expenses and incomes
to stay in business.
C. customers and creditors
A. going concern
D. none of these
B. business entity
1488. An amount written in parentheses on a
1483. If a company is successful in acquiring financial statement indicates an estimate.
several large buildings at the end of the
year, what is the effect on the total asset A. True
turnover ratio? B. False
A. A. The ratio will increase 1489. Bank statement is prepared by
B. B. The ratio will not change A. Bank
C. C. The ratio will decrease B. Account holder
D. either a or c C. Cashier
1484. THE PERMISSION REQUIRED FROM D. Manager
IN THE CASE OF INTERNAL RECONSTRUC-
TION 1490. What is the accounting equation?
A. BMC A. Assets = Liabilities + Owner’s Equity
B. COURT B. Assets = Liabilities-Owner’s Equity
C. LIGHT OFFICE C. Liabilities = Assets-Owner’s Equity
D. RAILWAY D. Owner’s Equity = Assets-Liabilities
1485. This concept requires asset to be shown 1491. Meghna invested 10, 000 in green com-
at the price it has been acquired, which pany, what would happen to the balance
can be verified from the supporting docu- sheet Asset = liability + OE
ments. A. asset goes up

B. liability goes up 1497. Which of the following is not a sub-

C. both go up sidiary book?

A. sales day book
D. capital goes up
B. purchases day book
1492. ALL OF THE FOLLOWING ARE THE CRI-
C. general journal
TERIA FOR AN ASSET TO BE CLASSIFIED
AS CURRENT, EXCEPT: D. trial balance
A. REALIZED, SOLD, OR CONSUMED BE- 1498. Bar purchased 10 percent of Liz Com-
YOND THE NORMAL OPERATING CYCLE pany’s 100, 000 shares of common stock
B. REALIZED WITHIN 12 MONTHS AFTER on January 2 for $100, 000. On Decem-
THE END OF THE REPORTING PERIOD ber 31, Bar purchased an additional 20,
000 shares of Liz for $300, 000. There
C. HELD FOR TRADING was no goodwill as a result of either ac-
D. CASH OR CASH EQUIVALENTS quisition, and Liz had not issued any addi-
tional stock during the year. Liz reported
1493. Which of the following is a correct jour- earnings of $600, 000 for the year. What
nal entry for the payment of a loan? amount should Bar report in its December
A. Debit Interest Expense, Credit Cash 31 balance sheet as investment in Liz?
B. Debit Cash, Credit Notes Payable A. $340, 000
C. Debit Cash, Credit Interest Expense B. $400, 000
D. Debit Notes Payable, Credit Cash C. $460, 000
D. $580, 000
1494. Which of the following is a current as-
set? 1499. Financial Accounting rule
A. Cash at Bank A. Thumb rules
B. Cash at Bank B. Golden rules
C. Prepaid Expenses C. Financial rule
D. All of the above D. none of above
1495. carriage inward is recorded in 1500. is the amount that flows into re-
tained earnings on the balance sheet, after
A. trading account credit side deductions for any dividends.
B. trading account debit side A. EBT
C. profit and loss account debit side B. EBIT
D. profit and loss account credit side C. EBITDA
1496. A business owned by one person D. EAT
A. service business 1501. Which of the following are true? I. The
B. revenue main purpose of financial reporting is to
provide information aimed at running a
C. expense business more efficiently. II. The principal
D. proprietorship function of financial accounts is to provide

information to parties external to a busi- C. something owned by a business that

ness. III. The term “reporting entity” may has a ready market value
be used to describe a group of companies D. an economic resource representing
A. I and II only. cash or the right to receive cash in the fu-
B. I and III only. ture
C. II and III only. 1507. Which of the following items cannot be

D. I, II, and III. considered as a revenue?
NARAYAN CHANGDER
A. Discount received
1502. An account that shows the estimated
amount owed on the warranties a busi- B. Commission received
ness offers. C. Interest on loan
A. Warranty D. Dividend on investment
B. Liability
1508. Which Malaysian government agency is
C. Warranty expense responsible for regulating and supervising
D. Warranty payable financial institutions, including banks and
insurance companies?
1503. In Proprietorship business, Income-tax
payable is shown as a liability in Balance A. Securities Commission Malaysia (SC)
Sheet. B. Malaysian National Bank
A. True C. Ministry of Finance Malaysia
B. False D. Bursa Malaysia
1504. Preference Shareholders are 1509. Which account increases equity?

A. creditors A. Expenses
B. owners B. Withdrawals
C. customers C. Liability
D. none of these D. Revenues
1505. The accounting equation may be ex- 1510. Soft Water Company gathered the fol-
pressed as lowing reconciling information in preparing
A. Assets = Equities-Liabilities its July bank reconciliation:Cash balance
B. Assets = Revenues-Liabilities per books, 7/31 RM23, 500Deposits in
transit 1, 200Notes receivable and inter-
C. Assets + Liabilities = Owner’s Equity est collected by bank 4, 800Bank charge
D. Assets = Liabilities + Owner’s Equity for check printing 80Outstanding checks 8,
000NSF check 860The adjusted cash bal-
1506. The nature of an asset is best described ance per books on July 31 is
as
A. RM19, 360.
A. an economic resources that’s ex-
B. RM20, 560.
pected to benefit future operations
B. something with physical form that’s C. RM27, 360.
valued at cost in the accounting records D. RM28, 560.

1511. Rules for the way financial statements 1517. The resources owned by a business are
should be prepared, that help guide busi- called
nesses in accounting procedures.

A. assets
A. GAAP B. liabilities
B. Balance Sheet C. the accounting equation
C. Income Statement D. capital
D. Accrual Accounting
1518. is the market for trading short term
1512. Which of the following is represented
both to the FRSC and the AASC? A. capital market
A. None of these B. money market
B. Bureau of Internal Revenue C. securities
C. Insurance Commission D. bonds
D. Central Bank of the Philippines 1519. Debts and financial obligations (respon-
1513. Financial statement has relevance if sibilities).
have 3 values following this, except A. Liabilities
A. confirmatory B. Assets
B. materiality C. Negative Net Worth
C. predictive D. Property
D. comparability 1520. Which of the following may have both
Dr and Cr balance
1514. The formula for profit margin is?
A. Only cash column of the cash book
A. Net SalesNet Income
B. Only bank column of the cash book
B. Net IncomeNet Sales
C. Both cash and bank column
C. Net SalesNet Expense
D. Neither cash or bank balance
D. Net Income Net Assets
1521. The business entity assumption is
1515. Accruing Uncollected Revenue What where
would be the impact on net income?
A. each business keeps its own books
A. Net income would decrease
B. a business owner can not mix business
B. Net income would remain constant and personal expenses on the same books
C. Net income would increase C. both a and b
D. All of the above D. neither a nor b
1516. Accounting processes are broadly di- 1522. While preparing common-size balance
vided into two main categories:financial sheet each item of balance sheet is ex-
accounting and management accounting. pressed as percentage of
A. True A. Non-current assets
B. False B. Current assets

C. Non-current liabilities 1528. What portion of the subsidiary stock-

holders’ equity account balances should be
D. Total assets
eliminated in preparing the consolidated
1523. Which information is not included in the balance sheet?
work sheet heading? A. Common stock
A. The period covered B. Additional paid-in capital
B. Name of the accounting form C. Retained earnings
NARAYAN CHANGDER
C. Business name D. All of the balances are eliminated
D. Accountant’s name 1529. To record the expense for the use of
fixed assets is called
1524. Standards approved by the FRSC include
A. Depletion
paragraphs in bold type and plain type,
which have equal authority. Paragraphs in B. Depreciation
bold type indicate the main principles. Any C. Amortization
limitation of the scope of a PFRS is made
clear in the standard D. Adjustment
A. T, T 1530. An external user of account is:

B. F, T A. One who supplies goods on credit
C. F, F B. Someone who purchase goods and ser-
vices
D. T, F
C. Someone who is considering to invest
1525. According to AS-2 Inventories are held in the business
for sale in normal course of business. D. All of the above
A. True
1531. The cost of developing software for a
B. False company engaged in software business is
revenue expenditure.
1526. What is the priority in managerial ac-
A. True
counting?
B. False
A. Being objective and precise
B. Following a strict framework 1532. The financial statements that show the
beginning balance of equity, the changes in
C. Being relevant and timely equity that resulted from new investments
D. Using estimates and shortcuts by the owner, net income (or net loss),
withdrawals, and the ending balance of eq-
1527. Accounting entries involve a minimum of uity is the:
how many accounts A. Statement of financial position
A. One B. Statement of cash flows
B. Two C. Balance sheet
C. Three D. Income statement
D. Four E. Statement of changes in equity

1533. closing stock is recorded in trading ac- B. Liability

count and C. Asset

A. balancesheet liablity side D. Expenses
B. balancesheet asset side
1539. As per full disclosure principle, the finan-
C. profit and loss account cial statements should disclose all irrele-
D. trading account debit side vant information.
1534. Principle that declares that preparers of A. True

statements must use caution when record- B. False
ing transactions and err on the side of fi-
nancial carefulness. 1540. Trial balance is a rough draft of,
A. Principle of Prudence A. Final accounts

B. P & L a/c
B. Principle of Sincerity
C. All the above
C. Principle of Noncompensation
D. none of above
D. Principle of Continuity
1541. Concept:The revenue from business ac-
1535. What is the most important difference
tivities and the expenses associated with
between financial accounting and manage-
earning that revenue are recorded in the
ment accounting?
same accounting period
A. Research subjects.
A. Complete disclosure
B. Research techniques
B. money measurement
C. Report output.
C. dual concept
D. User output information.
D. matching expenses with revenue
1536. In a system of incomplete records, the
1542. A provision for doubtful debts is created
opening capital is determined by preparing
A. When debtors become bankrupt
A. Statement of affairs
B. When debtors cease to be in business
B. Balance sheet
C. To provide for possible bad debts
C. Cash book
D. To write off bad debts
D. Trial balance
1543. IASB is replaced by IASC in 2001?
1537. assumption a company intends to con-
tinue operations A. True
A. matching principle B. False
B. disclosure principle 1544. One item of information available
C. going concern principle through a departmental accounting system
is the
D. reliability principle
A. net income or net loss for each depart-
1538. Amount which the proprietor has in- ment.
vested in a business is known as B. administrative expenses for each de-
A. Capital partment.

C. total operating expenses for each de- C. Refers to amounts earned

partment. D. none of above
D. gross profit from operations for each
department. 1549. Total amount of depreciation of an asset
cannot exceed its
1545. Rent and rates to be apportioned on the A. Depreciation value
basis of
B. Scrap value
A. Space occupied by department
NARAYAN CHANGDER
C. Market value
B. Based on unused area
D. None of these
C. Sales ratio
D. none of above 1550. The accounting system provides a
system of checks and balances
1546. When are cash control procedures most A. Single entry
important?
B. Financial entry
A. When customers pay using checks or
money orders C. Double entry
B. When new employees are being D. Triple entry

trained to handle cash 1551. Property was purchased on December
C. When cash is being received or dis- 31, 2021 for 90 million baht. The general
bursed price index in the country was 60 on that
D. When cash is in the form of bills and date. On December 31, 2023, the general
coins price index had risen to 270.4. If the en-
tity operates in a hyperinflationary econ-
1547. illustrate Branch Stock Account.Choose omy, what would be the carrying amount
CORRECT balance c/d for that account. in the financial statements of the property
after restatement?
A. 405.6 million baht
B. 180.3 billion baht
C. 19.97 trillion baht
D. 320 million baht
1552. Which of the following should be the

taken into consideration by Company ABC
A. RM389, 550
when deciding whether or not to store
B. RM389, 580 their client information in external (in-
C. RM389, 560 stead of internal) databases?
D. RM389, 570 A. The possible increase in the cost of do-
ing business with your company
1548. An Asset is: B. A possible breach of confidential and
A. Refers to items that are owned private information
B. Refers to amounts that are owed to C. The possible increase in time that it
others will take to access your records

D. A need to remember yet another login 1558. A disadvantage of single-entry book-

and password keeping is that it

1553. Pond Corporation uses the fair value A. Makes errors hard to spot
method of accounting for its investment in B. Is hard to learn
Swan Company. Which one of the follow- C. Is time-consuming
ing events would affect the Investment in
Swan Co. account? D. Is the most expensive system to set up
A. Investee losses. 1559. The time period covered by an account-
B. Investee dividend payments. ing report is called
C. An increase in the investee’s share A. accounting period
price from last period. B. going concern
D. All of the above would affect the In-
1560. What is not included in the characteris-
vestment in Swan Co. account.
tics of the Federation is
1554. The amount set aside out of profit A. Try together
earned by a company which are not meant
for liability or contingencies are B. Limited time period
A. Dividend C. Limited liability
B. Provisions D. Have shares/rights in the partnership
C. retained profit 1561. Total of purchases return book is

D. reserve recorded
A. debit of purchases account
1555. Financial Accounting is focused on the
financial statements of a company. B. credit of purchases return account
A. External C. debit of purchases return account
B. Internal D. Credit of purchases account
1556. There are 4 owners in a business part- 1562. A business has Current asset of £100,
nership. The business makes a profit of 000, Non current asset of 50, 000, Cur-
$100. Each owner makes: rent liabilities of £20, 000 what is the net
current asset?
A. $400 profit
A. £150, 000
B. $100 profit
B. £130000
C. $25 profit
C. £30000
D. $20 profit
D. £80, 000
1557. Three column cash book has how many
columns? 1563. Cash book records
A. two A. All transactions
B. one B. All cash transactions
C. three C. All credit transactions
D. none of the above D. All of the above

1564. If the capital of a business is $ 5, 00, 1569. Companies are required to comply with
000 and liabilities are $200, 000. Calcu- the following provisions regarding finan-
late total assets of the business. cial accounting and reporting:The printed
annual report shall be issued to the com-
A. 3, 00, 000
pany’s shareholders within a period not
B. 7, 00, 000 exceeding 6 months from the close of the
C. 10, 00, 000 financial year of a company. The annual
audited accounts together with the audi-
D. 2, 50, 000 tor’s and directors’ reports shall be given
NARAYAN CHANGDER
to Exchange for public release, within a pe-
1565. The amount of interest is credited by the riod not exceeding 4 months from the close
buyer to of the financial year of the company. Cor-
A. Interest Account porations are required to comply with the
Quarterly Reporting requirements where
B. Vendor Account they are required to file the quarter report
C. Asset Account with the Exchange for public release. The
above statutory requirements are referred
D. Depreciation Account
to:
1566. The closing process resets, , and A. Security Commission Guidelines.
account balances to zero at the end of B. Regulations by Bursa Malaysia
every account period.
C. Companies Act 2016
A. Revenue
D. Financial Reporting Act 1997
B. Expense
1570. The agency responsible for regulating
C. Withdrawals
the accounting profession in Thailand is
D. Equity
A. Federation of Accounting Professions
1567. When a company receives applications Under the Royal Patronage of His Majesty
for less number of shares than what is is- the King
sued, the situation is called as B. Office of the Securities and Exchange
Commission
A. Higher Subscription
C. Stock Exchange of Thailand
B. Over Subscription
D. Bank of Thailand
C. Under Subscription
D. Lower Subscription 1571. Tangible assets are non-physical items
such as trademarks and patents.
1568. Tells you how well you are operating A. True
your event business on a day-to-day ba-
sis B. False
A. Income Statement 1572. A machine has been bought for $5 000

and entered in the machine account at that
B. Balance Sheet
amount even though it is worth $12 000.
C. Statement of Retained Earnings What accounting concept is being applied?
D. Expenses A. historical cost

B. dual aspect A. Trading Account

C. prudence B. Profit and Loss Account

D. realisation C. Both Trading and Balance sheet
D. Balance Sheet
1573. WHICH OF THE FOLLOWING ADJUST-
ING ENTRIES MAY NOT REQUIRE REVERS- 1578. If an event business paid $10, 000 for a
ING ENTRY? catering truck, but the catering truck was
A. ACCRUED INCOME worth $15, 000, how much is recorded in
the books?
B. ACCRUED EXPENSE
A. $5, 000
C. PREPAID EXPENSE USING THE EX-
PENSE METHOD B. $10, 000
D. DEFERRED INCOME USING THE LIA- C. $15, 000
BILITY METHOD D. $0
1574. If it is known that the Gross Profit Mar- 1579. All these items of revenue nature which
gin of a company is 67%, it can be inter- received during the period of accounts, are
preted as only shown in the Income and Expenditure
Account.
A. shows the company’s ability to gener-
ate operating profit is 67% of sales A. True
B. shows the company’s ability to gener- B. False
ate operating profits is 67% of the com-
1580. Assuring that financial statements con-
pany’s total assets
tain all information necessary to under-
C. shows the company’s ability to gener- stand a business’s financial condition is an
ate gross profit is 67% of sales application of the accounting concept:
D. shows the company’s ability to gener- A. Adequate Disclosure.
ate gross profit is 67% of the company’s
B. Going Concern.
total assets
C. Objective Evidence.
1575. What is the main objective of financial D. Accounting Period Cycle.
accounting?
A. Profit and Loss Account 1581. Down payment is the payment made
B. Balance Sheet A. At the time of first instalment
C. Both P/L account and Balance Sheet B. At the time of last instalment
C. At the time of signing the agreement
D. Trial balance
D. none of above
1576. Should an asset be revalued every year
if the revaluation policy is chosen? 1582. Why does a business provide for depre-
ciation on fixed assets?
A. Yes to market value
A. to retain cash in the business for re-
B. No only when necessary placement of the assets
1577. When closing stock is given in Trial Bal- B. to charge the cost of fixed assets
ance it will appear in against profits in the year of purchase

C. to ensure that the realisable value of 1588. Loss of goods by fire should be credited
assets is shown in the Balance Sheet to:
D. to ensure that the matching principle A. Sales A/c
is applied when preparing final accounts B. Loss A/c
1583. Receipt and Payment Account is sum- C. Profit and Loss A/c
mary of cash transactions D. Purchase A/c
A. False 1589. When preparing Financial Statements
NARAYAN CHANGDER
B. True which monetary measurement basis states
that the accounting records should be
1584. The process of identify, classify, record- based on the original cost of the transac-
ing and communicating business transaction.
tion is called as book-keeping. A. Current Value
A. True B. Replacement Value
B. False C. Realisation Value
D. Historical Cost
1585. Concept:Revenue is recorded at the
same time goods or services are sold. 1590. On January 2, Joy Company purchased
A. realization of revenue a 30 percent interest in Pid Company
for $250, 000. On this date, the book
B. the revenue principle value of Pid’s stockholders’ equity was
C. going concern $500, 000. Pid reported net income of
$100, 000 and paid no dividends. Joy ac-
D. historical cost counts for this investment using the equity
method. In its December 31 balance sheet,
1586. Principle requiring that accounting
what amount should Joy report for this in-
should be split into periods of the same
vestment?
time length and each transaction should
be accounted for in a given period; long- A. $210, 000
run events might have to be split across B. $220, 000
many periods if necessary.
C. $270, 000
A. Principle of Periodicity D. $280, 000
B. Principle of Prudence
1591. Amount spent for white washing the
C. Principle of Permanance of Methods factory building is treated as Revenue Ex-
D. Principle of Sincerity penditure.
A. True
1587. A person who beings capital in the busi-
B. False
ness is called
A. Debtor 1592. As per AS-9 revenue from interest
should be recognized on the time propor-
B. Creditor tion basis.
C. Proprietor A. True
D. None of this B. False

1593. A video store’s regular price of a video 1598. The ledger is a record containing all ac-
is $25.95, and it’s on sale for 25% off. counts used by the business
What is the sale price of the video?

A. True
A. $19.46
B. False
B. $25.75
C. $6.49 1599. Dr. Roshidah, a specialist doctor, has
given a treatment to her patients in June.
D. $32.44 Her patient promised to pay the cost of the
treatment in July. Dr. Roshidah recorded
1594. Single entry systems are maintained by
the services revenue in her business book
A. (a) Company on June.
B. (b) Income tax authorities A. Expense recognition
C. c) Government B. Consistency
D. d) Sole trader C. Revenue recognition
1595. The financial statements of a business D. Going concern
enterprise include:
A. Balance sheet 1600. Which of the following is NOT the cor-
rect accounting equation?
B. Statement of Profit and loss
A. Assets-Capital = Liabilities
C. Cash flow statement
B. Liabilities + Capital = Assets
D. All the above
C. Assets = Liabilities-Capital
1596. Which type of company is prohibited to
D. Assets-Liabilities = Capital
raise capital from public
A. Government Company 1601. Records revenue when it is earned and
B. Public Company matches expenses against the revenue
they generate, even if cash is not received
C. Private Company at the time.
1597. Losses on sale of fixed assets occur B. Depreciation
if
C. Deferred Revenue
A. The results obtained are smaller than
the book value D. Deferred Expenses
B. The results obtained are greater than 1602. Meaning of Double Entry System of
the book value Book-Keeping
C. More expensive A. Two entries in one book
D. The acquisition price is greater than
B. Two entries in one account
the residual value
C. Entry in both sides of one transaction
E. The residual value is greater than the
acquisition price D. Entry in two personal accounts

1603. Mathematical expression of two finan- 1607. What is a compound journal entry?
cial items is known as A. journal entry that affects more than
one business
B. journal entry that affects cash and ac-
counts receivable
C. journal entry to record compound in-
terest
NARAYAN CHANGDER
D. journal entry involving 3 or more ac-
counts
1608. The unification of control (over the com-
pany’s net assets and operations) from
A. Mathematical Analysis shareholders with the aim of combining
B. Mathematical expression businesses with benefits and risks that
will be shared together, is
C. Ratio analysis
A. Acquisition Method
D. Ratio expression
B. Purchase Method
1604. Converting Liabilities to Revenue What C. Method of Pooling Ownership
would be the impact on expenses?
D. Sales Method
A. Expenses would increase
1609. is defined as a system of collect-
B. Expenses would remain constant ing, organizing, reporting and interpreting
C. Expenses would decrease information about those financial transac-
D. None of the above tions of a business.
A. Income Statement
1605. The classified balance sheet format al-
B. Accounting
lows one to ascertain quickly which of the
following? C. Analysing
A. the most valuable asset of the com- D. Debtors
pany
1610. In trial balance all these are credited ex-
B. the specific due date for all liabilities cept (a) (b) (c) (d)
of the company A. Capital
C. what liabilities must be paid within the B. Sales
upcoming year
C. Purchases
D. none of the above
D. Creditors
1606. A general journal entry usually includes
1611. A debit entry is required for which of
information about the date of a trans-
the following transaction?
action, titles of affected accounts, dollar
amount of each debit and credit and an ex- A. Decrease in assets.
planation of the transaction. B. Increase in Income.
A. True C. Decrease in Liability.
B. False D. Decrease in Expense.

1612. fluctuation in economic activity that 1617. What is the purpose of financial account-
an economy experiences over a period of ing?
time. A business cycle is basically defined

A. To entertain the employees with finan-
in terms of periods of expansion or reces- cial data
sion.
B. To provide information about the
A. Business cycle weather patterns in the region
B. business functions C. To provide information about the finan-
C. Recession cial position, performance, and changes in
D. none of above financial position of an organization.
D. To promote the sales of the organiza-
1613. An event related to an investment in tion’s products
debt securities thatdoes not require a jour-
nal entry is: 1618. Adjusting entries are made:
A. acquisition of the debt investment. A. At the beginning of the year
B. receipt of interest revenue from the B. At the end of the year
debt investment.
C. During the year
C. a change in the name of the firm issu-
D. All of these
ing the debt securities.
D. sale of the debt investment. 1619. What is “advance buyer” in English?
A. Trade receivables
1614. The income statement shows which of
the following? B. Trade payables
A. Assets and liabilities C. Prepayment from buyers
B. Income and expenses D. Prepayment for sellers
C. Receipts and payments 1620. are accounts in which income and ex-
D. none of above penditure are recorded(a) (b) (c) (d)
1615. What is Accounting? A. Real account
A. systematic record of transaction B. Cost account
B. Analysing C. Nominal account
C. interpretating D. Personal account
D. All the above 1621. The government agency that regulates

securities (stocks and bonds), enforces ac-
1616. Information needed to prepare a bal- counting laws, and dictates financial re-
ance sheet’s Assets section is obtained porting rules.
from a work sheet’s Account Title column
and: A. Stocks and Exchange Commission
(SEC)
A. Income Statement Debit column.
B. Securities and Exchange Commission
B. Income Statement Credit column. (SEC)
C. Balance Sheet Debit column. C. Securities and Exchange Company
D. Balance Sheet Credit column. (SEC)

D. Securities and Equity Commission 1627. What form of business does not allow
(SEC) one owner?
A. sole proprietorship
1622. who is considered as the father of mod-
ern accounting B. partnership
A. Luca Friar Pacioli C. corporation
B. j.betty D. all of the above
C. Henry Fayol
NARAYAN CHANGDER
1628. The account format that displays debits,
D. gestonburg credits, balances, and headings.
1623. Accounting information is to the ex-

tent that it is verifiable, it is a faithful rep-
resentation and is reasonably free from er-
ror and bias.
A. reliable
B. consistent A. GENERAL JOURNAL
C. understandable B. GENERAL LEDGER
D. relevant C. T-ACCOUNT
D. LEDGER ACCOUNT
1624. A business whose owners enjoy limited
liability is a 1629. UNDER THE REVISED CONCEPTUAL
A. sole proprietorship. FRAMEWORK, WHICH OF THE FOLLOW-
ING IS A CHARACTERISTIC OF ASSET?
B. partnership.
A. PRESENT ECONOMIC RESOURCE
C. proprietorship.
B. ECONOMIC RESOURCE IS A RIGHT
D. corporation. THAT HAS THE POTENTIAL TO PRODUCE
ECONOMIC BENEFITS
1625. Principle that requires the same account-
ing rules be followed at all times. C. ECONOMIC RESOURCE IS CON-
TROLLED BY THE ENTIY AS A RESULT OF
A. Principle of Consistency
PAST EVENTS
B. Principle of Regularity D. ALL OF THESE CHARACTERIZE AN AS-
C. Principle of Sincerity SET
D. Principle of Permanence of Methods 1630. Which statement is incorrect regarding
the timing of application of PFRSs?
1626. Assets of the business are Rs.3, 00,
000 and its Liabilities are Rs.1, 00, 000. A. PFRSs apply from a date specified in
Find its Capital the document.
A. 4, 00, 000 B. New or revised PFRSs set out transi-
tional provisions to be applied on their ini-
B. 2, 00, 000
tial application
C. 1, 00, 000 C. Until the effective date of a PFRS, the
D. 3, 00, 000 requirements of any PFRS that would be

affected by proposals in an exposure draft to be entered into the profit or loss state-
remain in force. ment.

D. The FRSC has a general policy of ex- A. £9000
empting transactions occurring before a
B. £8000
specific date from the requirements of
new PFRSs. C. £10000
D. £7000
1631. Maximum amount of capital that a com-
pany is allowed to raise is called 1636. In financial accounting only transaction
A. Authorized or Registered Capital A. In monetary terms are considered
B. Maximum Capital
B. In non monetary terms are considered
C. Maximum or Altered Capital
C. In an orderly manner are considered
D. Authorized or Altered Capital
D. In balance sheet considered
1632. With the transactional app Manage Dis-
pute Cases, you can do the following: 1637. It is assumed that the IndoJaya com-
pany purchased a production machine with
A. Edit dispute case attributes, such as a cash price of Rp. 70, 000, 000, -. Re-
the processor. lated expenses include VAT Rp. 3, 000,
B. Search and filter dispute cases based 000, travel insurance Rp. 500, 000, and
on various criteria. installation of Rp. 1, 000, 000, -. Calcu-
late the amount that should be reported as
C. View the details of a dispute case,
the cost of the machine
such as text notes and linked invoices.
D. Add file attachments to a dispute A. Rp. 70.000.000
case.Add text notes to a dispute case. B. Rp. 73.000.000
1633. The overriding purpose of financial ac- C. Rp. 74.000.000

counting is to summarize financial activity D. Rp, 74.500.000
in business in the
1638. The minimum subscription for public is-
A. profit and loss statement
sue as per SEBI guideline is of the is-
B. balance sheet sued amount
C. cash flow statement A. 75%
D. all of the above B. 80%
1634. The formula for calculating the total ex- C. 95%
penses ratio is total expenses divided by D. 90%
net income.
A. True 1639. (e) :A document of the company that
lists the goods that the company has sent
B. False
out to a customer.
1635. Business A has purchase of £10000, A. Debit advice
carriage outwards of £1000, carriage in-
wards of £2000 and purchase returns of B. Credit advice
3000. What will be the purchase figure C. Goods received note (GRN)

D. Goods dispatched (delivery) note 1644. Commission on consignment is to

(GDN) consignee.
E. Purchase order A. Expense
B. Loss
1640. The purpose of preparing a departmen-
tal profit and loss account for a firm is C. Income
A. to show the relative financial perfor- D. Asset
mance of different departments of the
1645. When preparing a departmental trad-
NARAYAN CHANGDER
firm.
ing and profit and loss account, the best
B. to estimate the firm’s.future cash re- method of allocating expenses between
quirements. departments is
C. to ensure that all likely bad debts are A. to allocate expenses to each depart-
provided for. ment in proportion to the sales of that de-
D. to ensure that discounts allowed by partment.
the firm do not exceed discounts received B. to charge against each department
by it. those costs which are within its control.
C. to allocate expenses to each depart-
1641. The document which specifies the inter-
ment in proportion to the purchases of
nal regulation of the business is
that department.
A. MoA
D. None of the above.
B. AoA
1646. Prepaid Expenditure is
C. Prospectus
A. Liability
D. none of above
B. Asset
1642. In the Income and Expenditure Account, C. Revenue
all incomes received during the year irre-
D. Expenditure
spective of the year for which they are re-
ceived, are to be recorded. 1647. Under Hire-purchase agreement the
A. True buyer agrees to pay
B. False A. Cash price only
B. Interest only
1643. Describe how government agencies use
C. Cash price and interest
financial accounting information.
D. none of above
A. To ignore financial information and
make decisions randomly 1648. Of the following errors, the one that
B. To make decisions, allocate resources, will cause an inequality in the trial balance
and assess the financial health of the or- totals is:
ganization. A. incorrectly computing an account bal-
C. To create obstacles and hinder ance
progress B. failure to record a transaction
D. To use financial information for per- C. recording the same transaction more
sonal gain than once

D. posting a transaction to the wrong ac- 1652. You have determined that company X
count with same normal balance as the estimates bad debt expense with an aging
correct account of accounts receivable schedule. Company

X’s estimate of uncollectible receivables
1649. When a company using the allowance resulting from the aging analysis equals
method writes off a specific customer’s $250. The beginning balance in Allowance
$100, 000 account receivable from the for Doubtful Accounts was $220. Write-
accounting system, which of the follow- offs of bad debts during the period were
ing statements is/are true?total stock- $180. What amount would be recorded as
holders’ equity remains the sametotal as- bed debt expense for the current period?
sets remain the sametotal expenses re-
A. $180
main the same
B. $250
A. 2
C. $210
B. 1 and 3
D. $220
C. 1 and 2
D. 1, 2, and 3 1653. Assets taken out of a business for the
owner’s personal use
1650. What are unpresented cheques in a bank A. capital
reconciliation statement?
B. withdrawals
A. Cheques/cash received from cus-
C. equities
tomers but not yet credited to the bank
statement D. revenue
B. Money given to a business from the 1654. The information that is said to be ma-
profit made by a public limited liability terial and has the ability to influence the
company decisions of users.
C. Cheques given to suppliers but not yet A. Reliability
debited to the bank statement
B. Understandability
D. Amount paid directly into the business
C. Relevance
bank account but not yet debited to the
cash book D. Comparability
1651. Which one of the following statement 1655. A balance sheet reports a hospitality or-
completely and correctly describes account- ganization’s financial position at a point in
ing? time.
A. Recording, classifying and summariz- A. True

ing economic activities in informal manner B. False
B. Accounting is the systematic process 1656. Which of the following is an asset?
of recording social activities only
A. Creditor
C. Recording, classifying and summariz-
ing all activities in useful manner B. Loan
D. Recording, classifying and summariz- C. Cash in hand

ing economic activities in systematic way D. Capital

1657. Assets with no physical form, yet they E. Record external transactions and
offer-value to a business for more than events
one year.
A. Fixed Assets
B. Intangible Assets
C. Depreciation
D. Amortization
NARAYAN CHANGDER
1658. is the goods which are partly com-
pleted at the end of the financial year. A. 240, 000
A. Work in progress B. 280, 000
B. Cost of production
C. 320, 000
C. Prime cost
D. 360, 000
D. Manufacturing account
1663. Stakeholders who need accounting in-
1659. Are paid last, in the order of pay- formation to invest capital
ment by the liquidator
A. Public
A. Preference shareholders
B. Manager
B. Equity shareholders
C. Unsecured creditors C. Investor
D. none of above D. Creditors
1660. A method of matching income and costs 1664. What a company owes to creditors:
in which income is reported when the A. Assets
money has been received and costs are re-
ported when the money has been paid B. Liabilities
A. Cash basic of accounting C. Equity
B. Accrual basic of accounting D. none of above
C. Unearned revenue
1665. Assets that have no physical properties:
D. Accrued expense
A. Intangible assets
E. Accrued revenue
B. Goodwill
1661. The main purpose of adjusting entries is C. Trademarks
to
D. All of the above
A. Recognize expenses paid during the
period 1666. Example of Intangible Assets
B. Adjust assets to their market value A. Goodwill
C. Recognize revenues received during
B. Building
the period
C. Cash
D. Record internal transactions and
events D. Patents

1667. Revenues have the effect of causing 1672. Which of the following items may be
owner’s or stockholders’ equity to shown by an account sales:

A. decrease A. Type and quantity of goods sold
B. increase B. Per unit sales price
C. remain the same C. Consignee’s commission and ex-
D. none of the above penses
1668. After Eating Dinner, Let’s Read Comics D. All of the above items may be shown
helps you remember which accounts are by an account sales
decreased on the left and which accounts
are increased on the right. 1673. As per this concept, all accounting must
be based on objective evidence. In other
A. True words, the transactions recorded should
B. False be supported by verifiable documents.
Explanation:This is to help you remember A. Matching Concept
which accounts are increased by a debit
and which accounts are increased by a B. Dual Aspect Concept
credit. C. Verifibility and Objectivity Concept
1669. The primary purpose of a quasi- D. Realisation Concept
reorganization is to give the entity the
opportunity to 1674. How are liabilities defined in financial
A. Obtain relief from creditors. accounting?
B. Revalue understated assets at fair A. Future sacrifices of economic benefits

value. that a business owes to other entities
C. Eliminate a deficit. B. Durable produced goods used as pro-
ductive inputs
D. Distribute the shares of a newly-
created subsidiary to the shareholders in C. Resources owned or controlled by a
exchange for part of their shares. business
1670. Accounting is language of D. The total amount of income generated

by the sale of goods and services
A. business
B. individual 1675. What is the role of GAAP (Generally Ac-
cepted Accounting Principles) in financial
C. none of these
accounting?
D. none of above
A. GAAP is a flexible set of guidelines
1671. It helps in knowing actual expenses and with no standard framework.
actual income during a particular time pe-
B. GAAP is used for tax reporting pur-
riod.
poses only.
A. Matching Concept
C. GAAP provides a standard framework
B. Accrual Concept for financial reporting.
C. Revenue Recognition Concept D. GAAP is not relevant to financial ac-
D. Cost Concept counting.

1676. The owner invests personal cash in the 1681. The accounting cycle is repeated every
business.-Owner’s Equity will time financial statements are prepared.
A. Increase A. True
B. decrease B. False
C. no Effect 1682. Trial Balance is a
D. none of above A. A list of all the ledger accounts and
their balances extracted from the General
NARAYAN CHANGDER
1677. Debits to the Credits to the Ledger
A. right, right B. Prepared on a given date, usually at
B. Left, Left the end of the financial period
C. Prepared after identification and
C. Left, Right
recording of source documents, but be-
D. Right, Left fore preparation of Income Statement and
Balance Sheet
1678. Corporation started by Congress that
D. All of the above
oversees the audits of public companies.
A. Securities and Exchange Commision 1683. Which of the following is not a book of
(SEC) original entry?
B. Public Company Accounting Oversight A. Sales journal

Board (PCAOB) B. Purchases account
C. Financial Accounting Standards Board C. Cash account
(FASB) D. Return inwards journal
D. Internal Revenue Service (IRS)
1684. Which of the following is not recorded
1679. marshalling of balance sheet means in the Cash at Bank account but already
recorded in the Bank Statement?
A. the order of assets and liabilities
A. Unpresented cheque
B. totalling and arranging of assets and
B. Direct payment
liabilities
C. Uncredited cheque
C. finding balance in balance sheet
D. Indirect payment
D. none of above
1685. The final report for the year is called
1680. A statement that lists the assets, liabili-
ties, and owner’s equity. It displays a com- A. Year report
pany’s collateral and liquidity at a point in B. Years report
time. C. Annual report
A. Balance Sheet D. Final report
B. Trial Balance
1686. According to IAS 01, financial state-
C. General Journal ments do not include:
D. Owner’s equity statement A. Statements of cash flows

B. Income statement B. Debit Cash and Credit Equipment

C. Report on financial status C. Debit Equipment and Credit Cash

D. Additional reporting D. Debit Sales and Credit Equipment
1687. What type of error is ‘an entry is made 1692. ALL OF THE FOLLOWING ARE FINAN-
in the wrong class of account’ CIAL LIABILITIES, EXCEPT:
A. errors of reversing entries A. BONDS PAYABLE
B. errors of principle B. NOTES PAYABLE
C. compensating errors C. INCOME TAX PAYABLE
D. errors of commission D. ACCOUNTS PAYABLE

1693. A theory is defined as a set of interre-
1688. What is the one asset that can NEVER
lated constructs, definitions, and proposi-
be depreciated?
tions that present a systematic view of
A. Financing Costs phenomena by specifying relations among
B. Land variables with the purposed of explaining
and predicting the phenomena
C. Deferred Financing Cost
A. True
D. Land Improvements
B. False
1689. Deposits that can only be withdrawn us-
ing checks and giro bills 1694. Depreciation is
A. Real
A. Savings Deposits
B. Nominal account
B. Savings Giro
C. Personal
C. Deposit Savings
D. Deferred Revenue expenditure
D. none of above
1695. When the amounts of a transaction
1690. Explain the concept of double-entry ac- must be recorded in a minimum of two
counting. accounts-
A. There is no need for both debit and A. double-entry
credit entries in double-entry accounting
B. debit
B. Every transaction is recorded in at
C. credit
least two accounts, with one debit and
one credit entry. D. accounting equation
C. Double-entry accounting only involves 1696. Anything of value that is owned by the
recording expenses company (such as cash, accounts receiv-
D. Every transaction is recorded in only ables, vehicles, etc.) are reported on the
one account balance sheet and are referred to as
A. assets
1691. Sold equipment by cash $700. What
is the double entry to record this transac- B. liabilities
tion? C. profit
A. Debit Cash and Credit Sales D. income

1697. Joint Venture means two or more par- 1702. Expenses outstanding at end of financial
ties co-operate on a particular project period-added to expense in Income State-
without forming a permanent business en- ment and treated as a current liability in
tity. the Statement of Financial position
A. True A. Other Receivables
B. False B. Other Payables
1698. dividend paid is 1703. On April 1 2006 a company purchased
NARAYAN CHANGDER
a machine for Rp. 60, 000, 000. The ma-
A. charge to profit
chine’s useful life is estimated at 4 years,
B. allocation of profit with a residual value of Rp. 20, 000,
000. The method used is the straight line
C. both a and b
method. The amount of depreciation in
D. none of the above 2006 was
A. Rp. 6.000.000
1699. A list of all the account names for a busi-
ness and their current balances. B. Rp. 7.000.000
A. trial balance C. Rp. 10.000.000
B. journal D. Rp. 4.500.000
C. general ledger E. Rp. 7.500.000
D. account title 1704. What was the name of book written by
Luca Pacioli?
1700. If you receive 25% off an item costing
$22.00, how much money do you save? A. The history of modern accounting sys-
tem.
A. $ 5.50
B. Accounting in the ancient Venice.
B. $ 4.25
C. The modern accounting system.
C. $6.00
D. Summa Of Arithmetic, Geometrical,
D. $7.35 Proportion-te-proportionalita.
1701. Which of the following is WRONG about 1705. Anything of value that is owned
cash?
A. account
A. CAsh is the most important asset in
running a business B. asset
B. Legal tender in the form of banknotes C. withdrawal

and coins that is not used for the settle- D. expense
ment of debt
1706. State whether sales returns is found on
C. cash considered the most liquid in a
the debit or credit side of the trial balance.
business
A. Debit
D. Defined as resources that consists of
currrencies B. Credit

1707. When the company receives applica- C. at the end of the month
tions for less number of shares than of- D. all of these
fered to the public for subscription, it is

said to be 1713. Debts owed by the business
A. Over subscription A. Assets
B. Subscription B. Liabilities
C. Under subscription C. Cash
D. fixed subscription D. Capital
1708. Under the diminishing balance method 1714. What are liabilities?
depreciation it
A. The money paid to employees.
A. Increases every year
B. Costs of operating a business.
B. Decreases every year
C. The act of buy items.
C. Remain constant every year
D. What a company owes.
D. On scrap value
1715. The amount of money a business paid
1709. You are purchasing a T.V for $990 T.V
for the goods that it then sold to cus-
with 9% sales tax. What is the final price
tomers.
of the T.V.?
A. cost of merchandise sold
A. $ 1881.00
B. $ 1079.00 B. inventory
C. $ 1, 079.10 C. cost of revenue
D. $ 1, 709.1 D. cost of expenses
1710. owners equity, assets and liabilities are 1716. Proforma invoice is a document which is
shown on which year end statement prepared by:
A. Income statement A. the consignor and is sent to the con-
signee
B. Cash flow statement
B. the consignee and is sent to the con-
C. Balance sheet
signor
D. none of above
C. both consignor and consignee and is
1711. The relationship between two financial sent to each other
variables can be expressed in: D. the carrier and is sent to both con-
A. Pure ratio signor and consignee
B. Percentage 1717. Explain the purpose of financial account-
C. Rate or time ing.
D. Either of the above A. To track employee attendance and
work hours.
1712. Business transactions are recorded
B. To provide information about the finan-
A. in chronological order cial position, performance, and changes in
B. weekly financial position of an organization.

C. To manage the marketing and advertis- B. A loan

ing budget of an organization.
C. Dividends
D. To provide information about the phys-
ical assets of an organization. D. Cash
1718. The difference between the total debits 1723. Double entry system started in the year
and the total credits posted to an account
A. 1499
yields a figure called the ending balance of
NARAYAN CHANGDER
that account. B. 1949
A. True C. 1494
B. False D. 1944
1719. Governed by the Civil Code of the Philip-
pines. Partners agree, among other things, 1724. Select all the objectives of “Amalgama-
on how the business will be managed, the tion”.
amount of capital contributions from each A. To avoid mutual competition
partner, how profits/losses will be di-
vided among them, and the form and mode B. To loot people
of settlement in case of withdrawal by, or C. To pool resources for doing business
death of, any of the partners. on a large scale
A. Sole Proprietorship
D. To fool the government
B. Sole
C. Corporation 1725. In the straight-line method the amount
of depreciation decreases year after year.
D. Partnership
A. True
1720. Of the following account types, which
would be increased by a debit? B. False
A. Liabilities and Expenses
1726. When a business purchase a motor vehi-
B. Assets and Capital cle on credit:
C. Assets and Expense A. Assets increase, liability decrease
D. Capital and revenues B. Asset decrease, liability increase
1721. Important Accounting Conventions are: C. Assets increase, liability increase
A. Conventions of Consistency D. Expense increase, liability increase
B. Conventions of Disclosure
C. Conventions of Conservatism 1727. A journal Book does not comprises of
Column?
D. Conventions of Materiality
A. Date
E. All the above
B. Journal Folio
1722. Which of the following new lllustrates
a current asset C. Particular
A. Land&buildings D. Amount

1728. Rent prepaid as at 1st January, 2002 B. Convention of Full disclosure

was #10, 000 Annual rent payable is #80, C. Convention of Conservatism
000 and rent accrued as at 31st December,

2002 was #15, 000. How much was paid D. Convention of Materiality
for rent in 2002? 1732. What is the constraint of financial state-
A. #80, 000 ment?
B. #75, 000 A. revenue
C. #55, 000 B. expense
D. #35, 000 C. income
D. cost
1729. Accrued expenses are
A. paid and recorded in an asset account 1733. What is the main purpose of financial
before they are used or consumed. statements?
B. paid and recorded in an asset account A. To assist management in decision-

after they are used or consumed. making
C. incurred but not yet paid or recorded. B. To report on a business’s financial

health to external parties
D. incurred and already paid or recorded.
C. To create internal reports for man-
1730. On January 1, 2009, a car was pur- agers
chased for Rp. 200, 000, 000.00. Resid- D. To allocate resources within a busi-
ual value Rp. 20, 000, 000.00. Eco- ness
nomical age 4 years. The method used is
straight line. The depreciation journal for 1734. A contra asset account has what type of
December 31 2009 is balance?
A. Car depreciation expense (D) Rp. 20,
000, 000.00; Accumulated car deprecia-
tion (K) Rp. 20, 000, 000.00
B. Car depreciation expense (D) Rp. 50,
000, 000.00; Accumulated car deprecia-
tion (K) Rp. 50, 000, 000.00
A. DEBIT
C. Car depreciation expense (D) Rp. 45,
000, 000.00; Accumulated car deprecia- B. CREDIT
tion (K) Rp. 45, 000, 000.00 C. CONTRA
D. Rp.162.500.000, 00 D. ALL OF THE ABOVE
E. Accumulated depreciation (D) Rp. 45,
1735. The application of the equity accounting
000, 000 Depreciation expense (K) Rp. 45,
method of accounting is based on the in-
000, 000
vestor owning:
1731. According to this convention the account- A. more than 50% of the voting power in
ing practices should remain unchanged an associate
from one period to another. B. more than 20% of the voting power in
A. Convention of Consistency an associate

C. less than 20% of the voting power in 1740. What are the salient features of ac-
an associate counting?
D. part of the share capital of an as- A. follows flexible, not a rigid approach
sociate whether or not there are voting B. is practiced in a social system
rights attached
C. is judgmental at times
1736. Mr. Narakorn withdrew money from D. all of the above
his personal account for personal use. You
NARAYAN CHANGDER
can save your account by 1741. Positive accounting theory was devel-
oped by
A. Debit withdrawal for personal use,
credit cash A. Littleton (1940)
B. Watts and Zimmerman (1986)
B. Cash debit, credit withdrawal for per-
sonal use C. Scott (2000)
C. Debit capital of Mr. A, credit with- D. Moonitz (1980)
drawal for personal use
1742. A short description of every transaction
D. Not recording the program made in the journal is called
A. Summary
1737. An economic event or condition that ini-
tiates the accounting process of recording B. Narration
it in an accounting system. C. Description
A. Accounting Equation D. Remark
B. Accounting Element
1743. Reporting in financial accounting is
C. Business Transactions broadly divided into which of the follow-
ing two categories?
D. Accounting Concept
A. Posting goods issue
1738. The company receives cash from a bank B. Displaying account information
loan.-The owners’ equity will
C. Generating financial statements
A. increase
D. Recording transactions
B. decrease
E. Automatic posting of accounts
C. no Effect
1744. Reserve for bad debts is shown on
D. none of above
A. Debit side of Trading Account
1739. When a business is first established and B. credit side of Trading Account
sales are typically slow, they are at the C. Debit side of profit and Loss Account
phase of the business cycle.
D. Credit side of Profit and Loss Account
A. Growth
1745. A formal examination of a company’s
B. Introduction
financial records for accuracy and compli-
C. Maturity ance with regulations.
D. Decline A. accounting

B. audit A. Debit Cash, Credit Accounts Payable

C. budget B. Debit Accounts Payable, Credit Cash

D. income statement C. Debit Accounts Receivable, Credit
Cash
1746. Subscription received by a school for or-
D. Debit Cash, Credit Accounts Receiv-
ganising annual function is treated as
able
A. Capital Receipts (i.s., Liability)
1751. Step 7 in the Accounting Cycle
B. Revenue Receipt (i.e., Income)
A. closing entries
C. Asset
B. source documents
D. None of there
C. adjusted trial balance
1747. Assets = D. trial balance
A. Capital-liabilities 1752. Receipts and Payments Account high-
B. Capital + liabilities lights total income and expenditure
C. Capital-depreciation A. True
D. liabilities-Profit B. False
1748. Which of the following statements is 1753. A member of BOA must be a duly reg-
correct? istered Certified Public Accountant with at
least ten (10) years of work experience in
A. We paid a supplier by cheque (-Bank-
A. Commerce & Industry
Trade payables)
B. Academe
B. A debtor paid us $90 in cash (+ Cash
+ Trade receivables) C. Public Accountancy
C. J. Hall lends us $500 by cheque (+ D. Any scope of practice of accountancy
Bank-Loan from Hall) 1754. return inwards means
D. Bought goods on time (+ Inventory + A. purchase return
Capital)
B. sales return
1749. What could happen when there is no (ab- C. proportionate sales
sence of) managerial accountant in a busi- D. expected sales
ness organisation?
1755. Wages incurred by departmental work-
A. Company will save money from paying
ers of a factory in installing a new machin-
managerial accountant’s salary
ery is a revenue expenditure.
B. The good name of the company would
A. True
turned worse
B. False
C. The managers will loose their job
1756. The Accounting Equation
D. The managers will find its hard to
make business decision A. Revenue-Expenses = Profit/Loss
B. Assets + Liabilities = Owner’s Equity
1750. Which of the following is a correct jour-
nal entry for the payment of accounts C. Revenue + Expenses = Profit/Loss
payable? D. Assets = Liabilities + Owner’s Equity

1757. What financial statement helps you plan B. 2 only

your expenses Before you have spent any
C. 2 and 3 only
money?
D. 3 only
B. Income Statement 1761. An adjusting entry was made on Decem-
C. Balance Sheet ber 31, 2020, to accrue salaries expense
of $1, 200. Which of the following entries
D. Budget would be prepared to record the next pay-
NARAYAN CHANGDER
ment of salaries, on January 5, 2021, in
1758. At the time the insurance payment was
the amount of $3, 000?
recorded in the journal as an insurance ex-
pense of IDR 4, 500, 000.00, the maturity A. Debit Salaries Payable1, 200 Debit
date was IDR 3, 200, 000.00 on Decem- Salaries Expense1, 800 Credit Cash 3, 000
ber 31, IDR 3, 200, 000.00. So the ad-
B. Debit Salaries Expense3, 000 Credit
justing journal is
Cash 3, 000
A. Insurance expense Rp. 4, 500, 000
C. Debit Salaries Expense1, 200 Credit
Prepaid insurance Rp. 4, 500, 000
Salaries Payable 1, 200
B. Prepaid insurance Rp. 4, 500, 000 In-
surance expense Rp. 4, 500, 000 D. Debit Salaries Payable3, 000 Credit
Cash 3, 000
C. Insurance expense Rp. 1, 300, 000
Prepaid insurance Rp. 1, 300, 000 E. Debit Salaries Payable1, 200 Credit
Cash 1, 200
D. Prepaid insurance Rp. 3, 200, 000 In-
surance expense Rp. 3, 200, 000 1762. What is the fundamental principle of
E. Prepaid insurance Rp. 1, 300, 000 In- double-entry accounting?
surance expense Rp. 1, 300, 000 A. Double-entry accounting only involves
recording expenses and not income.
1759. Which of these is an example of a detec-
tive control procedure? B. The fundamental principle of double-
A. periodic reconciliations entry accounting is to only record one side
of a transaction.
B. separation of duties
C. For every debit entry, there must be an
C. approval authority equal credit entry.
D. standardized documentation D. For every debit entry, there must be an
1760. Which of the following statements equal debit entry.
is/are true?1-The IFRS Interpretations
1763. is a document drawn up by the part-
Committee is a forum for the IASB to con-
ners, which contains the rules and regula-
sult with the outside world. 2-The IFRS
tions guiding the business
Foundation produces IFRSs. The IFRS Foun-
dation is overseen by the IASB. 3-One of A. Partnership
the objectives of the IFRS Foundation is
B. Account
to bring about convergence of national ac-
counting standards and IFRSs. C. Document
A. 1 and 3 only D. Deed of partnership

1764. Assets = + Capital 1768. A system to identify, measure, and com-

municate all financial activities
A. Owners

B. Debit A. Assets
C. Liabilities B. Liabilities
D. Credits C. Accounting
D. SMART Goals
1765. Pet owns 90% of Set, and the acquisi-
tion was made at book value (no amorti- 1769. Explain the difference between the in-
zations). During the current year, Set re- come statement and the balance sheet.
ported $7, 000 income. Pet sold goods to
Set during the year for $10, 000 including A. The income statement shows the com-
a profit of $5, 000. Set still holds 40% of pany’s financial position at a specific point
these goods at the end of the year. What in time, while the balance sheet provides
is the Pet’s journal entry to record income a snapshot of the company’s financial per-
from Set? formance over a specific period.
A. Dr. Investment in Set $4, 300Cr. In- B. The income statement only includes ex-
come from Set $4, 300 penses, while the balance sheet only in-
cludes revenues.
B. Dr. Investment in Set $6, 300Cr. In-
come from Set $6, 300 C. The income statement shows the com-
pany’s financial performance over a spe-
C. Dr. Sales $10, 000Cr. Cost of goods
cific period, while the balance sheet pro-
sold $10, 000
vides a snapshot of the company’s finan-
D. Dr. Cost of goods sold $2, 000Cr. In- cial position at a specific point in time.
ventory $2, 000
D. The income statement and the balance
E. Dr. Investment in Set $9, 000Cr. In- sheet are the same and can be used inter-
come from Set $9, 000 changeably.
1766. When a company receives applications 1770. “A future benefit exists for the com-
for more number of shares than what is pany as it is used in operations.”
issued, the situation is called as
A. Liabilities
A. Higher Subscription
B. Assets
B. Over Subscription
C. Owner’s Equity
C. Under Subscription
D. Lower Subscription D. Notes Payable
1767. Calculate the total amount on the credit 1771. occurs when a creditor is authorized
side of the trial balance to ask payment from the customer’s bank
A. N4, 000 A. Discount

B. Na, 000 B. Standing order
C. Nsht, 000 C. Direct debit
D. N1, 000 D. Dishonoured cheque

1772. Current Liability represents a potential 1777. The art of recording the business trans-
obligation that could be created depending action in a systematic and regular manner
on the outcome of an event. refers to
A. True A. Cost accounting
B. False B. Financial accounting
C. Book keeping
1773. Unearned revenues are
D. Accounting
NARAYAN CHANGDER
A. cash received and a liability recorded
before services are performed. 1778. A sole trader has sold his private house
but has not recorded anything about it
B. revenue for services performed and in the business records. What accounting
recorded as liabilities before they are re- concept is being applied?
ceived.
A. confidentiality
C. revenue for services performed but
not yet received in cash or recorded. B. historical cost
C. business entity
D. revenue for services performed and al-
ready received in cash and recorded. D. prudence
1774. Statement of Changes in Equity is the 1779. The correction of record of a transaction
between the opening balance and clos- which either has not been recorded or has
ing balance of shareholder’s equity been recorded in incomplete or wrong way
is called:
A. balancing
A. Adjustments
B. tallying
B. Closing of Accounts
C. reconciliation C. Trial Balance
D. alteration D. Balance Sheet
1775. The account which is prepared to deter- 1780. Financial statements report the fair mar-
mine the gross profit or gross loss of a ket value of a company.
business
A. False
A. Income Statement B. True
B. Trading Account
1781. A manufacturing entity is entitled to a
C. Statement of Financial Position grant of $3 million for creating 50 jobs and
D. Statement of Changes in Equity maintaining them for three years. $1.5m
is received when the jobs are created and
1776. Bookkeeping primarily involves all part the remaining $1.5m is receivable after
of the accounting process EXCEPT three years, provided that the 50 jobs are
still in existence. The entity creates 50
A. Recording jobs at the beginning of year one and there
B. Interpreting is reasonable assurance that this level of
employment will be maintained. What is
C. Summarizing
the deferred income balance at the end of
D. Classifying the first year?

A. 2 million 1786. Users of accounting information include

B. 1.5 million A. Creditors

C. 0.5 million B. Lenders
D. Other
C. Customers
1782. all information which is relevant to fi-
D. All of the above
nancial statement must be included in the
financial statement
1787. The date on a monthly income statement
A. cost principle prepared on April 30 is written as:
B. disclosure principle
A. April 30, 20
C. reliability principle
B. For Month Ended April 30, 20
D. GAAP
C. 20 , April 30
1783. For the year ended 31 December 2018,
the prime cost was $80 000, factory D. none of these
overheads totalled $120 000, work in
progress 1 January 2018 was $20 000 1788. Which of the following bookkeeping
and at 31 December 2018 was $30 000. terms refers to charges on the patient’s ac-
What was the cost of production of fin- count?
ished goods? A. Liabilities
A. $190 000
B. Assets
B. $200 000
C. Debits
C. $210 000
D. Credits
D. $220 000
1784. Which of the following are considered 1789. Financial ratios that tell how well a com-
to be tangible fixed assets? pany can pay off its short-term debts and
A. Land meet unexpected needs for cash.
B. Building A. liquidity ratios

C. Fixtures B. efficiency ratios
D. All of the above C. leverage ratios
1785. Which of the following best defines the D. profitability ratios
double-entry system in accounting?
A. A system that tracks revenue and ex- 1790. Bad Debts given only in Trial Balance
penses. will appear in
B. A system that records financial trans- A. Balance Sheet only
actions in two separate accounts.
B. profit and Loss Account only
C. A system that calculates the balance
sheet equation. C. Both Balance Sheet and Profit and
Loss account
D. 1. A system that reconciles bank state-
ments with accounting records. D. Trading Account

1791. December 2020 interest income Rp. C. Cash receipts from advance payments
100, 000, but will only receive it next D. Receipts from sales of fixed assets and
month. The adjusting entry at the end of other long-term assets
December 2020 is
1796. OBJECTIVITY INCLUDES WHAT CON-
A. Interest Receivable (D); Interest Rev-
CEPT
enue (K) Rp. 110.000
A. CLASSIFICATION
B. Interest Receivable (D); Interest Rev-
enue (K) Rp. 100.000 B. CONSERVATISM
NARAYAN CHANGDER
C. VERIFIABILITY
C. Interest Expense (D); Interest Payable
(K) Rp. 100.000 D. SUMMARIZATION
D. Interest Receivable (D); Interest 1797. When a limited company takes over an-
Payable (K) Rp. 110.000 other limited company, if the purchase con-
sideration is greater that the net assets
1792. Which of the following refers to a sole of the business purchased, the excess is
proprietorship business? known as
A. Limited liability A. Premium
B. Capital contributed solely by owner B. Goodwill
C. Share profit or loss among partners C. Purchase Profit
D. Income not subject to tax D. Capital Reserve
1793. Current ratio is 1798. What is a ledger?
A. 4:1 A. A record of summarized transactions

B. A record of classified transactions
B. 3:1
C. Only a is true
C. 2:1.1
D. Only b is true
D. 1:1
1799. Which of the following items has cor-
1794. If revenue expenditure transaction is rectly been included in Hatton’s revenue
mistakenly classified as capital expendi- for the year?
A. $2 million in relation to a fee negoti-
ated for an advertising contract for Rees,
A. Non-Current asset will reduce one of Hatton’s clients. Hatton acted as
B. Non-Current asset will increase an agent during the deal and is entitled to
10% commission
C. No effect on Non-Current asset
B. $500, 000 relating to a sale of spe-
D. none of above cialised equipment on 31 December 20X1.
The full sales value was $700, 000 but
1795. The following are inflows from invest-
$200, 000 relates to servicing that Hatton
ment cash flows, except
will provide over the next 2 years, so Hat-
A. Receipts from sales of securities from ton has not included that in revenue this
securities companies year
B. Receipts from the sale of debt instru- C. $800, 000 relating to a sale of some
ments or cash surplus land owned by Hatton

D. $1 million in relation to a sale to a new 1805. When Managerial Accounting report is

customer on 31 December 20X1. Control needed to be prepared?
passed to the customer on 31 December

A. Once a year
20X1. The $1 million is payable on 31 De-
cember 20X3. Interest rates are 10% B. Every month
1800. The purchase of a new delivery truck to C. Whenever cost accountant has free
be used in the business. time
A. Operating D. Whenever required by manager
B. Investing 1806. Supplier is a person who to the com-

C. Financing pany
D. Supplemental A. Sells goods
B. Purchase goods
1801. Which of the following represents the
excess of issue price over nominal price of C. None of these
the shares
D. none of above
A. Profit of the company
B. Share Capital 1807. Financial accounting is
C. Discount on issue of shares A. A language which communicates eco-

nomic information to interested parties
D. Premium on issue of shares
B. Is a financial type of accounting infor-
1802. The economic effect of an expense is in- mation and the reporting of the results
curred when the benefit expires or is used and financial position of a business.
up, not when cash is paid.
C. Accumulation of accounting informa-
A. True tion for a company’s internal users
B. False D. Accumulation of accounting informa-
tion for a company’s external users
1803. Select two or more correct op-
tions:Consignment expenses are incurred 1808. Who review, revise, amend, and defer
by approved accounting standards?
A. Consignee A. MASB
B. Consignor
B. State bank (central bank)
C. Debtor
C. Securities commission
D. Creditor
D. Malaysian stock exchange
1804. A Provision for Doubtful Debts is cre-
ated 1809. Trading Account is prepared to ascertain
A. When debtors increases in business A. Cost of Goods Old

B. To provide for possible bad debts B. Net Profit
C. When debtors become bankrupt C. Gross Profit
D. To write off bad debts D. Opening Stock

1810. As of 2018, how many chapters have 1816. Long term loans are:
the content and scope of the KKLT been A. current liabilities
compiled by the IASB?
B. non-current liabilities
A. 2
C. non-current assets
B. 4 D. current assets
C. 6
1817. Capitalizing a cost refers to:
D. 5
NARAYAN CHANGDER
A. Adding the cost to the asset account
1811. Which is not a part of Accounting Sys- B. Expensing the cost as it is incurred
tem? C. Disclosing the cost in the footnotes
A. Journal Books D. Depreciating the asset
B. Ledger Books
1818. the unfavourable balance of profit and
C. Trial Balance loss account should be
D. Slam Book A. subtracted from liabilities
1812. Copyrights, Patents and Trademarks B. subtracted from capital

are, C. subtracted from current assets
A. Current assets D. added in liabilities
B. Fixed assets 1819. Assets = P410, 000 ; Capital = P139,
C. Intangible assets 232. How much is the Liability?
A. P 549, 232
D. Investments
B. P 277, 068
1813. The process of recording financial data C. P 270, 768
upto trial balance is
D. P 594, 232
A. Book keeping
1820. Treatment of Prepayments in Financial
B. Summarsing
statements
C. classifying
A. Decrease Income, increase Current
D. Analyzing asset
1814. Which of the following legal forms of or- B. Decrease expenses, increase Current
ganization is most expensive to organize? asset
C. Decrease expenses, increase Current
A. Sole proprietorships.
Liability
B. Partnerships.
D. Increase expenses, increase Current
C. Corporations. asset
D. Limited partnership. 1821. Which of the following is not a liability?
1815. Consignee is the person who sends A. Accrued wages
goods to agents. B. Creditors
A. True C. Prepayment
B. False D. Insurance due but unpaid

1822. WHICH STATEMENT IS INCORRECT RE- B. 79400

GARDING CASH AND CASH EQUIVA-
C. 59400
LENTS?

D. 29400
A. CASH AND CASH EQUIVALENTS ARE
FINANCIAL ASSETS 1828. The originator of Double Entry System
B. CASH COMPRISES CASH ON HAND
A. Lucas Pacioli
AND DEMAND DEPOSITS
B. Marshall
C. CASH EQUIVALENTS ARE HELD FOR
INVESTMENT PURPOSES C. Pickles
D. AN EQUITY SHALL DISCLOSE THE D. Batliboi
COMPONENTS OF CASH AND CASH
EQUIVALENTS 1829. Recording of Financial Transactions in
Chronological Order is Known as ?
1823. Which one of the following industries
A. Ledger Posting
uses bauxite as a raw material?
A. Aluminum B. Journal Entry
B. Cement C. Trial Balance
C. Jute D. Balance Sheet

D. Steel 1830. The basic elements of financial state-
ments include:
1824. Debits will increase liability balances
A. Asset; equity; income; expense
A. True
B. False B. Asset; liabilities must pay; equity; in-
come; expense
1825. The recognized accounting body in Nige- C. Asset; income; expense
ria is
D. Asset; liabilities must pay; equity; ex-
A. ACCA pense
B. IPSAS
1831. On January 1 2018 a company pur-
C. CIPM
chased a machine for Rp. 10, 000, 000.
D. ICAN The machine’s useful life is estimated at
4 years, with no residual value. It is es-
1826. duality Every asset should have
timated that the machine can be used for
A. a non monetary value 100, 000 hours. During 2018 the machine
B. tangible and intangible qualities was used for 5, 000 hours. The hourly de-
preciation rate is
C. monetary cost and future benefit
A. Rp. 400/Hour
D. an adequate monetary value
B. Rp. 600/Hour
1827. Calculate gross profit from following
C. Rp. 500/Hour
figures:Cost of goods sold 70800Sales RS.
130200 D. Rp. 100/Hour
A. 69400 E. Rp. 750/Hour

1832. What is the role of a trial balance in fi- 5%.Which factors could explain this?1 a
nancial accounting? decrease in finance costs2 a decrease in
A. To calculate the company’s tax liability distribution costs3 an increase in rent re-
ceived4 an increase in selling prices
B. To ensure that the total debits equal
the total credits in the general ledger. A. 1 and 2
C. To track employee attendance B. 1 and 4
D. To determine the market value of the C. 2 and 3
NARAYAN CHANGDER
company’s assets D. 3 and 4
1833. What is the main purpose of charging 1838. Which of the following is not found in a
depreciation on fixed assets? trial balance?
A. to provide funds for the replacement A. Opening stock
of assets B. Closing stock
B. to record the assets at their market C. Capital
value
D. Rent paid
C. to reduce the cost of repairing assets
1839. Which is the first step of accounting pro-
D. to spread the cost of assets over their
cess?
useful lives
A. Classifying
1834. Amounts entered on the left side of an
B. analyzing and interpretation
account, regardless of the account title,
are called credits or charges to the account. C. recording
A. True D. financial statements.
B. False 1840. The following users are the internal
users of accounting except
1835. A business paper from which informa-
tion is obtained for a journal entry. What A. Creditors
is this called? B. Managers
A. journal C. Employees
B. document D. none of above
C. source document
1841. Arithmetical checking of double-entry
D. accounting document bookkeeping is known as?
1836. Which of the following is a Real A/c? A. DOUBLE-ENTRY SYSTEM OF LEDGERS
A. Building A/c B. TRIAL BALANCE
B. Capital A/c C. FINANCIAL STATEMENTS
C. Shyam A/c D. FINANCIAL DOCUMENTS
D. Rent A/c 1842. Inventory is harder to liquidate there-
fore it is eliminated from this ratio.
1837. A company’s profit from operations
has increased by 10% in a year, whilst A. Current ratio
its gross profit hasonly increased by B. Quick ratio

1843. Which of the following are types of 1849. All expenses must be recorded in
chart of accounts? side of trial balance

A. Operative COA A. Debit
B. Country specific COA B. Credit
C. Active COA C. Particular
D. Group COA D. Ledger
1844. Store manager 1850. An endorsement on the back of a check
A. Internal User consisting only of a signature is a(n)
B. External User A. blank endorsement.
B. special endorsement.
1845. Bad debts are apportioned among de-
partments in the proportion of sales of C. restrictive endorsement.
each department. D. incorrect endorsement.
A. True 1851. The excess of assets over liabilities is
B. False A. Loss
1846. Regular price:$174. Discount:40%. B. Cash
Find the sale price. Round to nearest cent C. Capital
if necessary.
D. Profit
A. $104.40
B. $140.40 1852. The total of cash and other assets put
into the business by the owner.
C. 104.4
A. Capital
D. 69.6
B. Cash
1847. Choose the correct option C. Shareholder’s equity
D. none of above
1853. If Outstanding salary is given in trail
balance with the date of commencement of
A. 15, 200 financial year, it is shown in
B. 30, 400 A. Trading A/c
C. 24, 800 B. Profit & Loss A/c
D. 19, 840 C. Assets
1848. Accounting Information System include D. Liabilities
A. Economics Events In Financial Terms. 1854. The main financing source of public sec-
B. recording, classifying, summarizing, tor is
analyzing, interpreting A. Taxation
C. communicating information to users B. Sales
D. all of the above C. Bank loans
E. none of the above D. Shares

1855. Financial accounting (Fl) is concerned 1860. carriage outward is recorded in

with recording the financial impacts of A. trading account debit side
business processes as they are executed.
B. trading account credit side
A. True
C. profit and loss account debit side
B. False
D. profit and loss credit side
1856. Levies charged when purchasing 1861. A summary of the cash receipts and
cigarettes
NARAYAN CHANGDER
cash payments for a specific period of time,
A. Tax such as a month or a year.
B. Bea A. Income Statement
C. Tax B. Retained Earnings Statement

C. Balance Sheet
D. Retribution
D. Statement of Cash Flows
1857. A present economic resource controlled
by the entity as a result of past events is 1862. is the process of recording, in se-
quential order, the daily transactions of a
business entity.
A. Asset
A. Bookkeeping
B. Liability
B. Accounting
C. Equity C. Recording
D. Expense D. Analysis
1858. Dual aspect concept results in the ac- 1863. The correct procedure for recording
counting equation trade receivables is
A. Capital +Liabilities =Assets A. Additional Receivables, Sales Returns
B. Capital =Assets B. Reduction of Receivables, Credit Sales
C. Revenue = Expenses C. Reduction of Receivables, Write-off of
Receivables
D. none of above
D. Addition of Receivables, Receipt of Re-
1859. One purpose of accounting information ceivables
is to help certain users make decisions and 1864. Which of the following reports is filed
plans for the business and to exercise con- annually with the SEC?
trol so that the plans come to fruition.
Which one of the following user groups is A. Form 10-Q
most likely to use accounting information B. Form 10-K
for this purpose?
C. Form 8-K
A. Managers D. Press Release
B. Community representative
1865. Purchase of pen is treated as a revenue
C. Employees expense, according to the concept of
D. Owners A. Objectivity

B. Materiality 1871. when a liability is decreased or reduced

it is registered on the
C. Cost

A. debit or left side of the a/c
D. Accounting Period
B. credit or right side of the a/c
1866. what is the rule of the Real account C. debit or right side of the a/c
A. Debit the receiver Credit the Giver D. credit or left side of the a/c
B. Debit what comes in Credit what goes
1872. What is meant by the abbreviation FRS.
out
A. Financial Reporting Scotland
C. Debit all expenses and losses Credit
Income and gain B. Financial Reporting Standards
D. None of these C. Financial Regulations Scotland
D. Future Reporting Standards
1867. Cash in Bank is classified as
A. Current Asset 1873. Accounting is a service activity and its
function is to provide quantitative informa-
B. Current Liability tion, primarily financial in nature, about
C. Noncurrent Asset economic entities, that is intended to be
useful in making economic decision. This
D. Noncurrent Liability accounting definition is given by
1868. The total value used to start the busi- A. Accounting Standard Council
ness is called B. AICPA Committee on Accounting Termi-
A. Capital nology
C. American Accounting Association
B. Asset
D. Board of Accountancy
C. Loan
D. Liabilities 1874. Which of the following is scientific sys-
tem of maintaining Accounts.
1869. The exclusive right to produce and sell A. Single entry system
an invention.
B. contra entry system
A. Goodwill
C. Double entry system
B. Trademark
D. Book entry
C. Patent
1875. Accounting Organizations in Indonesia
D. Franchises and license
A. IASB
1870. a B. FASB
A. b C. IAI
B. c D. KPP
C. d
1876. In accordance with FRS 102 section 17
D. none of above Property Plant and Equipment, which of

the following is not included in the cost of B. Statement of Change in Equity

an asset:
C. Statement of Other Comprehensive In-
A. Transport costs come
B. Non-refundable import duties and D. Statement of Cash Flow
taxes
C. Administration costs 1881. Main differences between normative
D. Professional fees and positive theories:Normative theories
NARAYAN CHANGDER
are prescriptive meanwhile Positive theo-
1877. Which of the following elements of a ries are descriptive, explanatory or predic-
manufacturing account matches the defini- tive.
tion below:Expenses which can be traced
A. True
directly to the units manufactured. This
can include royalties and hire of specialist B. False
equipment.
A. Direct wages 1882. The amount of an intangible asset used
up during the period.
B. Direct materials
C. Direct expenses A. Depreciation
D. Indirect materials B. Amortization
1878. What is the purpose of a bank reconcili- C. Depletion

ation statement? D. Goodwill
A. To settle disagreements between a
cash book and a bank statement 1883. An income statement reports a busi-
ness’s:
B. To calculate business profits
C. To prepare financial statements for A. financial condition over a specific pe-
the business riod of time.
D. To record daily cash transactions B. financial progress over a specific pe-
riod of time.
1879. Accounting:
C. financial condition on a specific date.
A. The amount of money your customers
or clients owe your business for goods or D. financial progress on a specific date.
services you supply.
B. The systematic recording and report- 1884. When Debtors are 20, 500.Write off
ing of business financial transactions. Bad debts Rs 500. Create Provision for
debtors 5%. Discount on Debtors 2%.
C. The amount you owe your creditors for What balance appears in balance sheet af-
goods or services supplied to you. ter above adjustments.
D. none of above
A. 18, 945
1880. Which financial statement reports rev- B. 18, 620
enues, expenses, and net income over a
specific period? C. 19, 090
A. Statement of Financial Position D. 19, 085

1885. We have been told that we cannot show C. incurred but not yet paid or recorded.
our asset of motor car at cost in one year D. incurred and already paid or recorded.
and market value in the next year. What

accounting concept is being applied? 1890. Money invested in a business by an
A. consistency owner is called
B. going concern A. merchandise
C. historical cost B. capital
D. prudence 1891. is a document issued by limited com-

panies inviting the public to subscribe to its
1886. At the time of bringing capital in the
business, cash account is
A. prospectus
A. Credited
B. certificate of trading
B. Debited
C. memorandum of association
C. Neither credited nor debited
D. shares
1892. One of the objectives achieved by pro-
1887. What are the four main financial state- viding depreciation is saving cash re-
ments? sources for future replacement of assets.
A. Profit and loss statement, income tax A. True
statement, cash flow statement, equity
statement B. False
B. Tax statement, income summary, cash 1893. For a public limited company, the maxi-
flow report, equity statement mum number of members are kept as
C. Budget statement, expense report, A. Limited
revenue summary, profit and loss state- B. Unlimited
ment
C. All of the Above
D. Income statement, balance sheet,
statement of cash flows, and statement of D. None of the Above
changes in equity
1894. The operating profit margin ratio is cal-
1888. FOB shipping point means culated by dividing operating profit by:
A. buyer pays freight cost A. Total assets
B. seller pays freight cost B. Total revenue
C. buyer and seller didn’t pay anything 1895. Normal loss of goods sent on consign-
D. seller pays buyer ment is shown in Consignment Account.
A. True
1889. Prepaid expenses are
B. False
A. paid and recorded in an asset account
before they are used or consumed. 1896. What is the depreciation expense for
B. paid and recorded in an asset account plant and machinery?
after they are used or consumed. A. £12, 000

B. £8, 000 1903. Information needed to prepare an in-

C. £10, 000 come statement’s Expense section is ob-
tained from a work sheet’s Account Title
D. £15, 000 column and:
1897. Depreciation is an actual loss. A. Income Statement Debit column.
A. True B. Income Statement Credit column.
B. False C. Balance Sheet Debit column.
NARAYAN CHANGDER
1898. Rent paid to landlord is debited to: D. Balance Sheet Credit column.
A. Landlord’s account
1904. Generally when revenues are involved
B. Rent account in a transaction, a revenue account will be
C. Cash account A. Credited
D. House account B. Debited
1899. A person whom the firm owes money on
1905. The John Marketing Company provides
account of credit purchase
advertising services to an investment com-
A. trade receivable pany in year A but receives advertising fee
B. trade payable in year B. The John Marketing Company
C. seller recognizes this revenue in year A. This ac-
tion of John Marketing Company is justi-
D. customer fied by
1900. The time value of money is based on: A. business entity concept
A. interest and market value B. revenue recognition principle
B. interest and time C. economic entity concept
C. market value and time D. going concern concept
D. future interest rates
1906. Concept:a business’s records should
1901. Assumes that every transaction affects never be mixed with an owner’s personal
two accounts in a set of financial state- records and reports
ments.
A. adequate disclosure
A. Duality Concept
B. business entity
B. Separate Entity Concept
C. objective evidence
C. Accrual Concept
D. going concern
D. Matching Concept
1902. Return inward appearing in trial balance 1907. Special identifications that are pro-
are adjusted from tected against infringement.
A. Purchase A/c A. Trademark

B. Sales A/c B. Goodwill
C. Return Outward A/c C. Patents
D. Capital A/c D. Copyrights

1908. A concept of accounting in which ex- C. debit cash, credit supplies

penses are matched with the revenue gen- D. credit cash, debit supplies
erated during a period by those expenses.

A. Accrual 1914. under branch account, debtors system
cash sales is shown in the
B. Going Concern
A. Debit
C. Matching
B. credit
D. Separate Entity
C. Asset
1909. Report that lists the balances of all gen-
D. none
eral ledger accounts of a company at a cer-
tain points of time. 1915. Accumulated depreciation is:
A. Journal A. Asset account
B. Source document B. Contra-asset account
C. Chart of accounts C. Liability account
D. Trial balance D. Contra-liability account
1910. A report of the net income or net loss 1916. Production for the preservation (mainte-
for an accounting period. nance) of fixed assets is an action aimed
A. income statement at
B. balance sheet A. Replacing some or all of the fixed asset
components so that they function properly
C. cash flow statement
B. Returning fixed assets to their original
condition
1911. What is direct factory wages? C. Maintaining fixed assets functioning
A. Wages of the people employed in the normally in good condition
factory making the goods. D. Increasing capacity or extending the
B. Wages of people employed in the fac- life of fixed assets
tory but who are not involved in the actual
production process 1917. Income and Expenditure Account is pre-
pared to find out
1912. When the asset is purchased on credit A. Profit or loss
account is credited
B. Cash and bank balance
A. personal account
C. Surplus or deficit
B. Asset Account
D. Financial position
C. Bank Account
D. All of the above 1918. The net income calculated for the income
statement and the net income on the work
1913. A business paid cash for supplies. How sheet can be different because of adjusting
is this transaction recorded? entries.
A. debit cash, debit supplies A. True
B. credit cash, credit supplies B. False

1919. Who is the target audience of manage- B. Fixed assets that do not have a physi-
rial accounting? cal form but that have economic benefits
A. All employees of the business for an economic entity
B. Internal managers C. Tangible fixed assets used in the nor-

mal activities of a company that are less
C. Existing and potential investors, than one year old.
lenders, and creditors
D. Assets that an entity acquires and re-
D. Regulators and the public sells without changing the form of the as-
NARAYAN CHANGDER
1920. The most important conventions are; set
A. Convention of Disclosure 1925. Owner’s capital at the end of the period

B. Conventions of Consistency is equal to
C. Convention of Conservatism A. assets plus liabilities.

B. net income.
D. Conventions of Materiality
C. owner’s capital at the beginning of the
E. all of the above
period plus net income minus drawings.
1921. The usual sequence of steps in the trans- D. owner’s capital at the beginning of the
action recording process is: period plus net income minus liabilities.
A. journal-analyze-ledger.
1926. Reversing entries are
B. analyze-journal-ledger.
A. Dated the first day of the next account-
C. journal-ledger-analyze. ing period
D. ledger-journal-analyze. B. Optional
1922. What is the calculated total for the car- C. Used to simplify a company’s record
rying value on 1 March 2020 for vehicles? keeping
(question 2) D. Linked to accrued assets and liabilities
A. R 62000 that were created by adjusting entries at
the end of the previous accounting period
B. R 60000
E. All of the above
C. R 63250
D. R 65000 1927. To increase the balance in the following
1923. Unearned Revenues is what type of ac- would you credit the account?Cash
count?
A. Debit
A. Asset B. Credit
B. Liability
1928. Depreciation on hire purchased asset is
C. Stockholders’ Equity claimed by
D. none of above A. Hire vendor
1924. Fixed assets adalah B. Hire purchaser
A. Tangible fixed assets used in the nor- C. Either the hire vendor or the hire pur-
mal activities of the company that are chaser as per the agreement between
more than one year old. them

D. No depreciation is claimed till the last 1933. Many industries tend to come together
instalment is paid/received. to make use of the advantages offered by
the urban centres. This is known as

1929. Before recording adjusting entries, the
A. Agglomeration economics
Office Supplies account had a $359 debit
balance while a physical count of the sup- B. Coming together
plies showed $105 of unused supplies on C. Holding together
hand. Thus, the required adjusting entry is
D. Joint sector if economics
A. Some other entry
1934. Branch Account is a
B. Debit Office Supplies $105 and credit
Office Supplies Expense $105 A. Real Account
C. Debit Office Supplies Expense $105 B. Personal Account
and credit Office Supplies $105 C. Nominal
D. Debit Office Supplies $254 and credit D. None of the above
Office Supplies Expense $254
1935. The business of a company is being car-
E. Debit Office Supplies Expense $254 ried out by
and credit Office Supplies $254
A. Shareholders
1930. The characteristic of writing off receiv- B. Partners
ables using the allowance method is the
C. Board of directors
existence of an account
D. Capital
A. Bad Debt Expense
B. Allowance for Doubtful Debt 1936. discount allowed will be recorded in
C. Accounts Receivable A. trading account debit side
D. Merchandise Inventory B. trading account credit side

C. profit and loss account debit side
1931. Expenses that have been paid by the
D. profit and loss account credit side
company but have not been recognized
as expenses in the period concerned that 1937. How many golden rules in Accounting?
have benefits beyond one accounting pe-
A. 4
riod are called
B. 7
A. Accrued expense
C. 3
B. Accrued revenue
D. 6
C. Unearnes revenue
D. Prepaid expense 1938. Which of the following ratios measure
the ability of a firm to meet short term
E. Operating expense obligation?
1932. Bank Reconciliation Statement is not a A. Net profit margin
part of the process of Accounts. B. Quick assets ratio
A. True C. Turnover ratio
B. False D. creditors ratio

1939. The higher the company’s debt to eq- C. Financial Accounting

uity ratio, the greater the possibility for D. Cash Accounting
managers to choose accounting methods
that can increase profits. This reasoning 1944. What is the proper adjusting entry at
includes hypotheses June 30, the end of the fiscal year, based
A. bonus plan hypothesis on a prepaid insurance account balance be-
fore adjustment, $15, 400, and unexpired
B. cost politics hypothesis
amounts per analysis of policies of $5,
NARAYAN CHANGDER
C. equity hypotesis 000?
D. debtequity hypothesis A. Debit Insurance Expense, $5, 000;
1940. Which of the following statements in Credit Prepaid Insurance, $5, 000.
not true about Financial Accounting? B. Debit Insurance Expense, $15, 400;
A. The accounts are for external pur- Credit Prepaid Insurance, $15, 400.
poses. C. Debit Prepaid Insurance, $10, 400;
B. The accounts present a historical Credit Insurance Expense, $10, 400.
record for the enterprise. D. Debit Insurance Expense, $10, 400;
C. It is not essential to comply with con- Credit Prepaid Insurance, $10, 400.
cepts and conventions.
1945. Cost of goods sold and turnover are one
D. Financial accounts must comply with and the same
the Statements of Principles
A. True
1941. 10 What is the purpose of making a pro-
B. False
vision for depreciation in the accounts?
A. To charge the cost of fixed assets 1946. Which attributes are present in the FI
against profits document header?
B. To show the current market value of A. Amount
fixed asset B. Document type
C. To make cash available to replace
C. Posting date
fixed assets
D. Currency
D. To make a provision for repairs
E. Posting key
1942. the balance sheet discloses the financial
position of a business 1947. When using the allowance method, as
A. for a given period bad debt expense is recorded
B. at a specific point of time A. total assets remain the same and
stockholders’ equity remains the same
C. on a certain fixed date
B. total assets decrease and stockhold-
D. all of the above
ers’ equity decreases
1943. Records revenue only when the cash is C. total assets increase and stockhold-
received ers’ equity decreases
A. Accrual Accounting D. total liabilities increase and stockhold-
B. Managerial Accounting ers’ equity decreases

1948. Financial accounting is best defined as B. Dr. Investment in Sor $150, 000Cr.
Gain on bargain purchase $80, 000Cr.
A. recording economic events of entities

B. examining future events for economic
C. Dr. Investment in Sor $180, 000Cr.
decisions
C. generally accepted accounting princi-
D. Dr. Investment in Sorrell $70, 000Cr.
ples of a country
D. recording, summarising and communi-
E. Dr. Investment in Sor $150, 000Cr.
cating economic events of entities
1949. WHICH OF THE FOLLOWING ENHANCES 1953. During 2017, Susi sold goods costing
THE RELEVANCE OF ACCOUNTING INFOR- $1, 500 to its subsidiary, Kiki, at a gross
MATION profit of 25%. Kiki had none of this inven-
A. MONETARY UNIT tory on hand at the end of 2017. What is
the elimination worksheet entry to elimi-
B. UNDERSTABILITY
nate intercompany sales?
C. NEUTRALITY
D. PREDICTIVE VALUE 500
1950. The following intangible asset should B. Dr. Sales $2, 000Cr. CoGS $2, 000
not be amortized: C. Dr. CoGS $2, 000Cr. Sales $2, 000
A. Goodwill D. Dr. CoGS $1, 500Cr. Inventories $1,
500
B. Copyrights
E. Dr. Sales $2, 000Cr. Cash in Bank $2,
C. Trademarks
000
D. All of the above
1954. We have shown all items of machinery
1951. Outstanding Expenditure is costing less than $100 as machinery oper-
A. Asset ating expenses. What accounting concept
is being applied?
B. Liability
A. materiality
C. None
B. going concern
D. none of above
C. prudence
1952. On June 1, 2019, Pet Company acquired D. historical cost
100% of Sor Inc. for $150, 000. On this
date, Sor had the fair values of assets and 1955. Main objective of analysis of financial
liabilities $180, 000 and $30, 000, re- statements is
spectively, while retained earnings of $70, A. To know the financial strength
000. What is the record by Pet when ac-
quiring Sor? B. To make a comparative study with
other firms
A. Dr. Investment in Sor $180, 000Cr.
Gain on bargain purchase $30, 000Cr. C. To know the efficiency of management
Cash in bank $150, 000 D. All of the Above

1956. What is meant by accounts receivable? 1960. How do you calculate the gross profit?
A. Money owed to a company by its A. Sales-Cost of Sales = gross profit
debtors
B. Sales + Cost of Sales = gross profit
B. Money owed by a company to its cred-
itors C. Sales x Cost of Sales = gross profit
C. Money owed to a company by its em- D. Sales / Cost of Sales = gross profit
ployees
1961. Which one does not belong to the fea-
NARAYAN CHANGDER
D. Money owed by a company to its ven- tures of company
dors
A. Body Corporate
1957. In the accounts of a manufacturing firm, B. Legal Person
‘production cost’ equals
C. Perpetual Succession
A. the cost of direct materials acquired.
D. Sole Ownership
B. the sum of direct material costs and di-
rect wages.
1962. Purchasing plant or intangible assets
C. the sum of direct expenses, direct ma- to grow a business would be considered
terial costs, direct wages and production which type of business activity?
overheads.
A. Operating
D. the sum of direct expenses, direct
material costs, direct wages, production B. Investing
overheads and administration expenses. C. Financing
1958. Which of the following correctly identi- D. Accounting
fies normal balances of accounts?
1963. Which of the following are common de-
A. Assets Debit Liabilities Credit Owner’s preciation areas used in the US?
Capital Credit Revenues Debit Expenses
Credit A. Book depreciation
B. Assets Debit Liabilities Credit Owner’s B. Cost accounting depreciation
Capital Credit Revenues Credit Expenses C. Legal depreciation
Credit
D. Special depreciation
C. Assets Credit Liabilities Debit Owner’s
Capital Debit Revenues Credit Expenses E. Physical depreciation
Debit
1964. A government enforced contribution of
D. Assets Debit Liabilities Credit Owner’s money typically based on some measure of
Capital Credit Revenues Credit Expenses value. Typically are used to pay for com-
Debit munity services such as schools, roads, so-
1959. A debt or obligation owed to others. cial security, court systems, and police.
A. Liabilities A. Tax
B. Assets B. Welfare
C. Owner’s Equity C. Subsidy
D. none of above D. Social Justice Reform

1965. Which of the following is NOT a normal 1970. All are advantages of amalgamation EX-
function of a financial analyst? CEPT

A. issue earnings forcasts A. amalgamation eliminates the cut-
B. examine the records underlying the fi- throat competition in the industry
nancial statements to certify their confor- B. monopoly in market can be attained
mance with GAAP
C. unemployment may occur
C. make buy, hold, and sell recommenda-
tions on companies’ stock D. people may not work in harmony,
thereby resulting in signs of discontent-
D. advise institutional investors on their
ment
securities holdings
1966. A dealer dealing in furniture business 1971. Journal entries are required by the de-
purchased furniture, recorded in furniture positor for all of the following except
account. A. collection of a note receivable.
A. There is an error in the above transac-
B. bank errors.
tion, but trial balance will agree.
C. an NSF check.
B. There is not any error in the above
transaction, trial balance will not agree. D. bank service charges.
C. There is an error and trial balance will
not agree 1972. Which of the following assets is not de-
preciated?
D. none of above
A. Computers
1967. A decrease in Accounts Receivable is
B. Store fixtures
recorded by a entry in the account.
A. Debit C. Trucks
B. Credit D. Buildings
1968. Subscription in advance is treated in the E. Land

Balance Sheet of non-profit making organ-
1973. The party responsible for all costs from
isations as
delivery until the goods are successfully
A. current asset sold is called
B. fixed assets
A. Trustee
C. current liability
B. Creditor
D. accumulated fund
C. Debtor
1969. One of the purposes of preparing a Trial
D. Commissioner
Balance-
A. to adjust assets and liabilities 1974. What is the accounting equation
B. to provide financial information to ex- A. assets = liabilities + cash
ternal users
B. liabilities = assets + equity
C. to prove the mathematical equality of
debits and credits in the ledger C. equity = assets + liabilities
D. to write up the financial statements D. assets = liabilities + equity

1975. All donations received by a non trading B. B. Loss on Receivables (D) and Ac-
concern are entered in the liability side of counts Receivable (K) amounting to IDR 1,
the balance sheet 500, 000
A. True C. Accounts Receivable (D) and B. Loss
on Accounts Receivable (K) amounting to
B. False
IDR 1, 500, 000
1976. The debit side of petty cash book is for D. Cad Loss on Receivables (D) and Ac-
counts Receivable (K) amounting to IDR 1,
NARAYAN CHANGDER
A. Bank
500, 000
B. Receipts
1980. The historical cost principle requires
C. Debtors that when assets are acquired, they be
D. Creditors recorded at
A. cost.
1977. Receipt and Payment Account generally
shows: B. appraisal value.
A. A Debit balance C. market price.

D. book value.
B. Surplus or Deficit
C. A Credit Balance 1981. Depreciation is
D. Capital fund A. Real

B. Nominal
1978. Siargao Company reported the follow- C. Personal
ing liabilities on December 31, 2018:
D. Deferred Revenue Expenditure
1982. Discuss the concept of trial balance in
double-entry accounting.
A. Trial balance is a document that lists
all the employees and their salaries
A. 2, 500, 000 B. Trial balance is a statement that lists
B. 2, 900, 000 all the general ledger accounts and their
balances to ensure that the total debits
C. 3, 000, 000
equal the total credits.
D. 1, 500, 000 C. Trial balance is a statement that sum-
marizes the cash flow of a business
1979. On December 2 2018, PT M2M received
PD Ngijon’s receivables of IDR 1, 500, D. Trial balance is a report that shows the
000 and on January 1 2019, PD Ngijon’s profit and loss of a company
receivables were written off because the 1983. Which of the following statements
owner died amounting to IDR 1, 500, 000. about provisions and contingencies is/are
The correct recording of a receivable write- correct? 1-A company should disclose de-
off is tails of the change in carrying amount of
A. B. Losses on Accounts Receivable (D) a provision from the beginning to the end
and Cad. Loss on Receivables (K) amount- of the year. 2-Contingent assets must be
ing to IDR 1, 500, 000 recognized in the financial statements in

accordance with the prudence concept. 3- 1987. This accounting process is the recogni-
Contingent liabilities must be treated as action or nonrecognition of business activi-
tual liabilities and provided for if it is prob- ties as accountable events.

able that they will arise. A. Identifying
A. All three statements are correct B. Measuring
B. 1 and 3 only C. Communicating
C. 2 and 3 only
D. Reporting
D. 3 only
1988. Rupees 5000 received from Mohan
1984. Payment of rupees 6000 as wages to whose account was written off as bad in
workers for installation of machine should the previous year should be credited to
be debited to
A. Wages account A. Mohan account
B. Repairs account B. Bad debts account
C. Machinery account C. Bad debts recovered account
D. Cash account D. None of these
1985. On January 1, 2012, Christian Company 1989. The Statement of Comprehensive In-
sold a machine with a carrying amount of come shows information on an entity’s fi-
P300, 000 and a carrying amount of P300, nancial position during the period.
000 and accepted in exchange a promis-
sory note with a face value of P500, 000, A. True
a due date of December 31, 2021, and a B. False
stated rate of 4%, with interest receiv-
able at the end of each year. The fair value 1990. In which sector are the manufacturing
of the machine is not readily determinable industries placed?
and the note is not readily marketable. Un- A. Primary
der the circumstances, the note is consid-
B. Secondary
ered to have an appropriate imputed rate
of interest of 8%. The interest income to C. Tertiary
be recognized in 2017 is D. None of these
A. 20, 000
1991. Government, Tax authority, future in-
B. 29, 264 vestors are the
C. 32, 604 A. external users in accounting
D. 33, 612 B. internal users in accounting
1986. Cash, being an asset is always said to C. external and internal users in account-
have ing
A. Debit balance D. none of above
B. Credit balance 1992. A cashbook which records cash, bank
C. No balance and discount is called a cashbook.
D. none of above A. single column

B. Triple column B. 183, 633

C. double column C. 150, 300
D. hyper D. 225, 120
1993. While putting the value or price of an 1998. WHICH ASSET GENERALLY IS REQUIRED
entity in financial records the lowest price TO BE TESTED AT LEAST ANNUALLY FOR
is recorded not the current price or current IMPAIRMENT?
market value. This is known as A. MACHINERY
NARAYAN CHANGDER
A. Business Entity Concept B. PATENT
B. Conservatism C. RENEWABLE BROADCAST LICENSE
C. Expenditure Concept D. COPYRIGHT
D. Money Measurment Concept 1999. A list of assets, liabilities, and owner’s
equity as of a specific date:
1994. If a check correctly written and paid by
the bank for $724 is incorrectly recorded A. Statement of Profit or Loss
on the company’s books for $742, the ap- B. Statement of Owner’s Equity
propriate treatment on the bank reconcili- C. Statement of Financial Position
ation would be to
D. Statement of Cash Flows
A. add $18 to the bank balance.
2000. Two sets of standards accepted for in-
B. add $18 to the book balance.
ternational use are:
C. deduct $724 from the bank balance.
A. FASB Standards and IFRS
D. deduct $724 from the book balance.
B. GAAP and IFRS
1995. Cash belongs to which account under ac- C. FASB Standards and GAAP
counting system? D. None of the above
A. Personal
2001. Which of the following is part of the
B. Nominal double entry system in Accounting?
C. Real A. Cash book
D. Impersonal B. General journal
1996. The discount on the credit side of a triple C. Sales journal
column cashbook is called D. Trial balance
A. discount allowed 2002. For a service business, the revenue re-
B. Trade discount ported on an income statement is often
C. discount received compared to two items:total expenses and
net income.
D. discount flow
A. True
1997. What is the break-even point in units B. False
for company where total fixed costs are
$275, 450selling price per units $16 vari- 2003. Assets = Liabilities + Equity
able cost per unit is $14.75 A. Balance Sheet
A. 220, 360 B. Income Statement

2004. Vice president of finance 2009. From the following which are the exam-
A. Internal User ples of non trading concerns

B. External User A. Schools
B. Temples
2005. The balance of petty cash book is
C. Chemist Shop
A. an expense
D. Cloth store
B. a liability
2010. Which financial statement uses the ex-
C. a profit
panded accounting equation?
D. an asset
2006. Which one of the following can the ac-

counting equation be written as
A. Assets +Profit-Drawings-Liabilities=Closing
capital
B. Assets-Liabilities-Drawings = Open-
ing capital + Profit
C. Assets-Liabilities-Opening Capital + A. INCOME STATEMENT
Drawings = Profit B. BALANCE SHEET
D. Assets-Profit-Drawings = Closing C. CASH FLOW STATEMENT
Capital-Liabilities
D. STATEMENT OF STOCKHOLDER’S EQ-
2007. Financial information that is verifiable UITY
means that:
2011. Which statement is NOT true:
A. Information is clear and concise
A. Inventory is shown on the income
B. Knowledgeable users agree that the statement and in the statement of finan-
financial information is faithfully repre- cial position
sented
B. Expenses should be included on the in-
C. The information is useful to users with come statement
reasonable knowledge of accounting as
C. Inventory should be included on the
well as business and economic activities
statement of financial position only
D. Users are able to compare different
D. Receivables are included in current as-
companies, if all the companies use sim-
sets on the statement of financial position
ilar accounting practices
E. The financial statements have not 2012. An entity purchased a property 10
been prepared according to GAAP years ago at a cost of $200, 000 and have
been depreciating it at a rate of 2.5% per
2008. Step 6 in the Accounting Cycle annum, on the straight-line basis. The en-
A. financial statements tity have had the property professionally
revalued at $250, 000.What is the revalu-
B. adjusted trial balance ation surplus that will be recorded in the fi-
C. closing entries nancial statements in respect of this plant?
D. trial balance A. $250, 000

B. $100, 000 B. Expense Matches the Revenues or is

C. .$50, 000 Used up
D. Other 2018. Assets-Liabilities = Owner’s Equity

A. True
2013. What does a positive cash flow from op-
erating activities indicate? B. False
A. The company is experiencing financial 2019. Which is an accounting equation based
difficulties. on expressing the relationship between as-
NARAYAN CHANGDER
B. The company is facing a liquidity crisis. sets, liabilities, and owner’s equity?
C. The company is investing heavily in A. A= L+OE
new projects. B. A= L-OE
D. The company is generating sufficient C. L=A+OE
cash to cover its operating expenses. D. YOU=A+YOU
2014. When preparing the final accounts of a 2020. If the debit side is less than the credit
manufacturing business, carriage inwards side, the balance is shown as By balance
on raw materials should always be in- c/f on the credit side of its account and it
cluded in: indicates debit balance.
A. A. the income statement A. True
B. B. the manufacturing account B. False
C. C. the trading account 2021. On a bank reconciliation, deposits in
D. the appropriation account transit are
2015. If an organisation has purchased Furni- A. added to the bank balance.
ture B. deducted from the bank balance.
A. Furniture account will be debited C. added to the book balance.
B. Purchase account will be debited D. deducted from the book balance.
C. Furniture account will be credited 2022. Ben purchased 15 percent of Toy Com-
D. Purchase account will be credited pany’s 100, 000 shares of common stock
on January 2 for $200, 000. On Decem-
2016. Deals with the activities which involves ber 31, Ben purchased an additional 30,
the recording and preparation of reports 000 shares of Toy for $400, 000. There
known as financial statements was no goodwill as a result of either ac-
A. Financial Accounting quisition, and Toy had not issued any addi-
tional stock during the year. Toy reported
B. Management Accounting
earnings of $700, 000 for the year. What
C. Accounting Education amount should Ben report in its December
D. Cost Accounting 31 balance sheet as investment in Toy?
A. $440, 000
2017. Under the accrual basis of accounting,
expenses are reported in the accounting B. $600, 000
period when the C. $705, 000
A. Cash is Paid D. $880, 000

2023. A book-keeper compared the business B. To show the financial performance of

bank statement with the cash book. He a company over a specific period of time.
then updated the cash book and finally

C. To measure the level of customer sat-
prepared a bank reconciliation statement. isfaction
Why was the bank reconciliation state-
ment prepared? D. To track the number of employees in
the company
A. to ensure no transactions had been
omitted from the cash book. 2027. What is equity?
B. to establish the value of unpresented A. describes what an organization has in-
cheques. vested in
C. to explain the difference between the B. describes non-owner financing
cash book balance and the bank state- C. describes owner financing
ment balance.
D. describes the success of the business
D. to find out if any cheques had been dis-
honoured. 2028. Ledger is called book of
2024. Financial data for the Grow Com- A. Primary entry

pany’s prepaid insurance account is be- B. Secondary entry
low:Prepaid InsuranceBalance January 1, C. Final entry
2023 4, 200Debit entries during 2023 18,
000Balance December 31, 2023 4, 500 D. All of the above
How much did Grow pay for insurance be- 2029. Grimtown took out a $10 million 6%
fore December 31, 2023 for insurance cov- loan on 1 January 20X1 to build a new
erage in 2024? football stadium. Not all of the funds were
A. $8, 700 immediately required so $2 million was in-
B. $17, 700 vested in 3% bonds until 30 June 20X1.
Construction of the stadium began on 1
C. $4, 200 February 20X1 and was completed on 31
D. $18, 000 December 20X1. Calculate the amount of
E. $4, 500 interest to be capitalised in respect of the
football stadium as at 31 December 20X1.
2025. If opening stock of goods is 7, 00, 000- A. 0.6 million
sales 20, 00, 000-purchases = 12, 00,
000, gross profit-4, 00, 000 then find B. 0.525 million
closing stock- C. 0.52 million
A. Rs. 11, 00, 000- D. Other
B. Rs. 3, 00, 000- 2030. A Joint Venture ends when
C. Rs. 8, 00, 000- A. When the particular deal for which it
D. Rs. 16, 00, 000- was created is over.
2026. Explain the purpose of the income state- B. When it do not generate any profits
ment. C. When the God wishes it
A. To determine the market share of the D. When there is a quarrel among the
company owners

2031. Goods lying unsold on a particular date D. International Financial Accounting

when the SOFP is prepared: Standards
A. Opening Inventory 2036. revenue that results when a plant asset
B. assets is sold for more than book value.
C. capital A. gain on plant asset
D. Closing Inventory B. loss on plant asset
C. salvage value
NARAYAN CHANGDER
2032. A statement of financial position is an-
other name for: D. plant asset record
A. The income statement
2037. Money received from a business in-
B. The balance sheet vestor would be an example of
C. The statement of cash flows A. cash inflow
D. The statement of changes in equity B. cash outflow
E. The accounting equation
2038. This information is presented to various
2033. A company could use to analyze its people to help them make business deci-
profits and losses from fiscal period to fis- sions.
cal period A. Financial Decision
A. Bank reconciliations B. Accounting
B. A comparative income statement C. Accounting Information
C. A checkbook register D. Financial Statements
D. Post-closing trial-balance records
2039. Discount column in the cash book is
2034. What is a similarity between Manage- A. Always balanced
rial Accounting and Financial Accounting?
B. Only totalled
A. Both report to the same group of ac-
counting users. C. Never written
B. Both reporting past financial events. D. All of the above
C. Both providing information for deci- 2040. Asset accounts have what type of bal-
sion making purposes. ance?
D. Both using the same accounting stan- A. Debit
dards of MASB.
B. Credit
2035. What is the set of financial accounting C. Contra
standards used in the US called?
D. All of the above
A. Generally Accepted Accounting Princi-
pals 2041. What is the scope of managerial ac-
B. Generally Accepted Accounting Poli- counting?
cies A. Narrow, focusing on specific depart-
C. American Financial Accounting Stan- ments and cost centers
dards B. No specific scope

C. Broad, consolidating results of all busi- B. Supplies (D) Rp. 350, 000.00 Equip-
ness units ment expenses (K) Rp. 350, 000.00

D. Limited to financial information only C. Supplies Expense (D) Rp. 250, 000.00
Supplies (K) Rp. 250, 000.00
2042. In absence of partnership deed the
profit or loss should be distributed among D. Supplies Expense (D) Rp. 350, 000.00
partners in their capital ratio. Supplies (K) Rp. 350, 000.00
A. True E. Supplies (D) Rp. 600, 000.00 Equip-

ment expenses (K) Rp. 600, 000.00
B. False
2047. Which liability become payable only on
2043. Which is a Type of Account? the happening of an event?
A. Debit A. Fixed Liability
B. Trading B. Current Liability
C. Nominal C. Contingent Liability
D. Credit D. none
2044. Hanes Company sells debt investments 2048. What is the purpose of a cashbook?
costing $26, 000 for $28, 000. In journal-
A. To prepare financial statements for
izing the sale, credits are to:
the business
A. Debt Investments and Loss on Sale of
B. To record monthly bank transactions
Debt Investments.
C. To show actual cash/cheque received
B. Debt Investments and Gain on Sale of
and paid on a daily basis
Debt Investments.
D. To calculate business profits
C. Stock Investments and Gain on Sale of
Stock Investments. 2049. Purpose of cash and cash equivalent
D. No correct answer is given. based on operating activities
A. Revenue producing activities such as
2045. Oil India Limited (OIL) belongs to which
Sales of Good and Services
type of industry?
B. Transaction involves acquisition and
A. Joint sector
disposal of non-current assets.
B. Public sector
C. Cash payments to acquire non-current
C. Cooperative assets such as PPE.
D. Private sector D. Involve obtaining and repaying of fi-
nancial resources from owners and other
2046. On March 10 2018 the equipment providers of non-current capital on which
amounted to IDR 600, 000.00 and af- providers receive a return.
ter stock taking, the remaining equipment
was IDR 250, 000.00. So the adjusting 2050. Unused supplies is Rp3.500.000, in the
journal entry as of December 31 2018 Trial Balance there is an Supplies Expense
is account Rp4.700.000
A. Supplies (DI) Rp. 250, 000.00 Equip- A. Supplies (D) Rp3.500.000 Supplies Ex-
ment expenses (K) Rp. 250, 000.00 pense (K) Rp3.500.000

B. Supplies Expense (D) Rp1.200.000 Sup- A. 571.42

plies (K) Rp1.200.000 B. 572
C. Supplies (D) Rp1.200.000 Supplies Ex- C. 570. 63
pense (K) Rp1.200.000
D. 571
D. Supplies Expense (D) Rp3.500.000 Sup-
plies (K) Rp3.500.000 2055. What is the focus of financial account-
ing?
2051. How should the goodwill on business
NARAYAN CHANGDER
purchase be shown in the financial state- A. Future planning and decision-making
ment? B. Presenting information to internal
A. As an expense in Profit And Loss Ac- managers
count C. Reporting on past transactions and
B. As an intangible asset in Statement Of events
Financial Position D. Managing risks within a business
C. As a current liability in Statement Of
Financial Position 2056. Rule of Personal Account is
D. As a long-term loan in Statement Of Fi- A. Dr. all expenses and losses, Cr. All in-
nancial Position comes and gains
B. Dr. the receiver & Cr. the giver
2052. 1) Trial balance. 2) Books of prime en-
try. 3) Financial statements. 4) Ledger C. Dr. what comes in cr. what goes out
accounts.Choose the Correct order. D. None of the above
A. 1-3-4-2
2057. Tangible assets can include which of the
B. 2-4-1-3 following?
C. 2-1-4-3 A. Computers
D. 4-2-1-3 B. Bonds
2053. The basic function of financial accounting C. Production Machinery
is to D. Real Estate
A. Interpret the financial data E. Mortgage
B. Record all business transactions
2058. Which of the following is correct?
C. Assist the management in performing
A. Accounting helps in tracking the costs
function effectively
pertaining to IT software project execu-
D. None of these tion
2054. We are going to manufacture Whats- B. Accounting helps in recording financial
Its. The Whats-It machine costs $4000.It transactions
also costs $5 for materials and labour C. Accounting interprets the financial
for each Whats-It. We are planning to data
sell our Whats-Its for $12 each. How
many Whats-Its must we sell in order to D. Accounting helps in the allocation of re-
breakeven?Make sure your breakeven fig- sources
ure is a round number. E. all of the above

2059. If average variable cost is $10, and av- 2064. The books of LLP are to be retained for
erage selling price is $25, then what is con- years.
tribution?

A. 6
A. $35
B. 7
B. $15
C. 8
C. $-15
D. 5
D. $40
2060. What is the transaction for receiving 2065. The important points made in the defini-
cash on account? tion of accounting include all of the follow-
ing, except
A. Debit cash, credit accounts payable
A. Accounting information is quantitative
B. Credit cash, debit accounts payable
B. Accounting information is both quanti-
C. Debit cash, credit accounts receivable
tative and qualitative
D. Credit cash, debit accounts receivable
C. Accounting information is financial in
2061. The decrease in the value of a plant as- nature
set because of the removal of a natural re- D. Accounting information is useful in de-
source. cision making
A. salvage value
2066. A segment is a division of an enterprise
B. loss on plant asset
for which management monitors perfor-
C. depletion mance separately from other segments.
D. gain on plant asset A. True
2062. When a company pays a bill, the account B. False
Cash will be
2067. The is one of the main financial
statement and reports the assets, liabili-
ties, and owner’s equity at a specific point
in time.
A. Income Statement
B. Balance Sheet
C. Income Worksheet
A. Debited
D. Balance Worksheet
B. Credited
2063. An accounting period is the interval of 2068. A company’s financial position would be
time at the end. best evaluated using the
A. Business Entity A. Balance Sheet

B. Dual Aspect B. Income Statement
C. Money Measurement C. Statement of Cash Flows
D. Periodicity Concept D. Auditor’s Report

2069. Which of the following items will be C. Shareholder

used to calculate the goodwill when a com-
D. Supplier
pany takes over another firm? I. Purchase
price II. The capital of vendor III. The lia- 2075. The other items of income the business
bilities taken over IV. The value of assets has received during the accounting year
taken over from sources other than buying and selling
A. I, II goods
B. III, IV A. Other operating income
NARAYAN CHANGDER
C. I, II, III B. Expenses
D. I, III, IV C. Sales revenue
2070. Accounts payable accounting is con- D. Purchases
cerned with vendors.
A. True 2076. Paid in advance should be shown at the
side
B. False
A. assets
2071. A person who supplies goods to the
B. liabilities
business is known as
A. Debtor C. none of the above
B. Owner D. none of above

C. Creditor 2077. This document communicates what the
D. None of this entity owns in terms of assets, what it
owes in the terms of liabilities, and the
2072. What is the total cost with sales tax? difference between those two which rep-
Price $17.95 Tax 6% resents what the owners o the company
A. $19.03 are entitled to.
B. $18.50 A. Income Statement
C. $1.08 B. Balance Sheet
D. $2.15
2078. In recording trade receivables, proof of
2073. Merchandise Inventory is classified as? transactions is required. The following are
A. Asset errors in using proof of receivables trans-
actions:
B. Revenue
A. Copy Invoice, recorded in the Sales
C. Current Asset Journal
D. Fixed Asset
B. Proof of Cash Incoming, Recorded in
2074. A person or entity that has an interest the Cash Receipts Journal
in the information that relates to the abil- C. Memorial Evidence, recorded in the
ity of the business to pay dividends. General Journal
A. Managing Director D. Credit Memo, recorded in the Sales
B. CEO Journal

2079. A record that shows the balance for a 2084. A joint stock company can present its
specific item, such as cash or equipment. balance sheet

A. Accounting A. In any way the company likes
B. Account B. As per the schedule of the Companies
Act
C. Financial Reports
C. In the way the shareholders like
D. Accounting Reports
D. none of above
2080. A contra account is an account linked
with another account. It has an oppo- 2085. Assets = $10, 000, Liabilities = $8,
site normal balance and is a subtraction 000, Owner’s Equity =?
from that other account’s balance. Exam- A. $4, 000
ple:Accumulated Depreciation B. $10, 000
A. True C. $2, 000
B. False D. $18, 000
2081. Sales are equal to Cost of Goods Sold + 2086. Closing inventory may be valued us-
Gross Profit ing first-in, first-out (FIFO) or average
A. True cost (AVCO). Which of the following state-
ments is true assuming that prices have
B. False fallen throughout the year?
2082. What are the metrics commonly used in A. Closing inventory and profit are higher
financial accounting: using FIFO rather than AVCO
A. The measure of value is key. B. Closing inventory and profit are lower
using FIFO rather than AVCO
B. Measures in kind are essential.
C. Closing inventory is higher and profit
C. The measure of time is essential. lower using FIFO rather than AVCO
D. Measures of value, artifacts, time and D. Closing inventory is lower and profit
other measures depending on the admin- higher using FIFO rather than AVCO
istrator’s requirements.
2087. A financial accounting document is a gen-
2083. Provide 12% interest on capital eral ledger account that consolidates data
amounting to Rs.10, 00, 000. The journal from a group of sub-ledger accounts, such
entry is as customers and vendors.
A. Interest on capital A/c Dr. 1, 20, 000 A. True
To Capital A/c 1, 20, 000 B. False
B. Expenses A/c Dr 12, 000 To Capital A/c
2088. A motor van broke down in December
12, 000
2017. The repair bill was not paid until
C. Interest from bank A/c Dr.1, 20, 000 2018, yet it was treated as a 2017 ex-
To Cash A/c 1, 20, 000 pense. What accounting concept is being
D. Expenses A/c Dr 1, 20, 000 To Capital applied?
A/c 1, 20, 000 A. accruals

B. historical cost $1, 800 and they were then sold for $20
C. realisation each. Selling expenses were $400.(2)
100 items which had cost $10 each. After
D. materiality the statement of financial position date
2089. Shareholders, Managers, Creditors Gov- they were sold for $8 each, with selling
ernments expenses of $150.
A. internal user A. $283, 650

B. $283, 800
NARAYAN CHANGDER
B. external user
C. internal user & external user C. $292, 150
D. none of above D. $283, 950
2090. Assets will be recorded at full fair value 2093. Which of the following description is
even if the acquiring company only pur- more likely to reflect the characteristic of
chases 80% ownership in the company a joint venture?
that owns the assets, called the A. The venturers cannot have their own
A. Acquisition Method business besides the venture.
B. Purchase Method B. It will end immediately when the busi-
ness is completed.
C. Unification Method
C. Two parties joint together to make a
D. Sales Method
continuing business.
2091. Retained Earnings is: D. It is limited to the business of two par-
A. The accumulated undistributed earn- ties only.
ings of the corporation reported on the
2094. A partnership exists between:
balance sheet
A. One owner and their family
B. The accumulated distributed earnings
of the corporation reported on the bal- B. 2 to 20 people
ance sheet C. 20 or more people
C. The accumulated undistributed earn- D. 2 people only
ings of the corporation reported on the in-
come sheet 2095. Revenues are matched with expenses in
D. All of the above accordance with the matching principle.
A. True
2092. The closing inventory of Epsilon
amounted to $284, 000 at 30 September B. False
20X4, the statement of financial position
2096. How many schedules are there in the re-
date. This total includes two inventory
vised format of Final Accounts of a banking
lines about which the inventory taker is
company?
uncertain.(1) 500 items which had cost
$15 each and which were included at $7, A. 8
500. These items were found to have been B. 10
defective at the statement of financial
position date. Remedial work after the C. 12
statement of financial position date cost D. 16

2097. What is the main purpose of financial 2102. Which principle/guideline requires the
accounting? company’s financial statements to have
footnotes containing information that is

A. To record all transactions in the books
of account important to users of the financial state-
ments?
B. To provide management with detailed
analyses of costs A. Historical Principle
C. To enable preparation of financial B. Business Entity
statements that provides information C. Accrual Principle
about an entity’s financial performance
and position D. Adequate disclosure Principle
D. To calculate profit or loss for an ac- 2103. The fixed asset account of a dependent
counting period branch is maintained by
2098. Owners drawings of goods will come in A. Branch
payments in Cash budget B. Head office
A. false C. Both head and branch office
B. true
D. Departmental store
2099. , Mr. Hymawan paid off the debt for
purchasing sacks of rice from Mr. Azra 2104. types of business are
amounting to IDR 500, 000, then Mr. A. sole
Azra’s correct recording is B. partnership
A. Cash (D) and Accounts Payable (K)
C. joint stock company
amounting to IDR 500, 000
D. all of the above
B. Accounts Payable (D) and Cash (K)
amounting to IDR 500, 000 2105. To which account salary and commission
C. Cash (D) and Accounts Receivable (K) to partners and interest on capital be deb-
amounting to IDR 500, 000 ited?
D. Cash (D) and Sales (K) amounting to A. Current Account
IDR 500, 000
B. Capital Account
2100. Every debit has a corresponding Credit, C. Profit and Loss Account
the statement is
D. Profit and Loss Appropriation Account
A. True
B. False 2106. Which of the following is represented in
FRSC?
C. Partially true
D. None of the above A. Financial Executives Institute of the
Philippines
2101. ‘Prime cost’ does not include
B. Financial Executives Institute of the
A. direct labour costs. Philippines
B. factory overhead expenses. C. Association of CPAs in Commerce and
C. the cost of raw materials consumed. Industry
D. direct expenses. D. Association of CPAs in Education

2107. Identify the type of expenditure. Legal 2113. Based on the above information, what
charges on acquiring new building for of- amount will the corporation report as Net
fice Cash Provided by Operating Activities on
A. Capital the cash flow statement?
B. Revenue
2108. As per this concept, every business

transaction has a dual effect.
NARAYAN CHANGDER
A. Dual Aspect A. 65, 000
B. Historical Cost Concept B. 125, 000
C. Materiality Concept C. 155, 000
D. Periodicity Concept D. none of above
2109. Amount paid for Bills payable given to 2114. If information is to be presented faith-
ram. It will be debited fully, the economic reality must be ac-
A. Bills payable account counted for and not just the strict legal
B. Ram’s account form. Which concept explains this?
C. Cash account A. Materiality
D. None of these B. Substance over form

C. Going concern
2110. Which type of company can issue share
to public D. Prudence
A. Public 2115. Double entry system was given by

B. Private A. Lucas Pacioli
C. One person company B. Maxwell
D. None of these C. Pickles
2111. Primage means- D. Batliboi
A. additional commission 2116. It is known that the income that must
B. extra freight still be received by customers until the end
of the period is Rp. 5, 000, 000.00
C. additional brokerage
A. The income account is debited and the
D. None of these
receivables account is credited Rp. 5, 000,
2112. Which of the following is a “write it 000.00
once” bookkeeping system? B. The expense account is debited and
A. Double-entry the receivables account is credited Rp. 5,
000, 000.00
B. Journal
C. The receivables account is debited and
C. Single-entry the revenue account is credited Rp. 5, 000,
D. Pegboard 000.00

D. The cash account is debited and the 2121. Outstanding wages A/c is A/c
expense account is credited Rp. 5, 000, A. Personal
000.00

B. Real
E. The expense account is debited and
C. Nominal
the cash account is credited Rp. 5, 000,
000.00 D. None
2117. Concept:The revenue from business ac- 2122. Accounting furnishes data on
tivities and the expenses associated with A. Income and cost for the managers
earning that revenue are recorded in the B. Financial conditions of the institutions
same accounting period
C. Company’s tax liability for a particular
A. adequate disclosure year
B. unit of measurement D. All the above
C. historical cost
2123. Reasons why relevant accounting stan-
D. matching expenses with revenue dards are important
A. present information about the state’s
2118. IF THE REPORTING ENTITY COMPRISES
financial condition in a consistent, clear
OF TWO OR MORE ENTITIES WITHOUT A
and comparable manner
PARENT-SUBSIDIARY RELATIONSHIP, THE
FINANCIAL STATEMENTS ARE REFERRED B. present information about the com-
TO: pany’s financial position, achievements
and activities in a consistent, clear, reli-
A. UNCOSOLIDATED FINANCIAL STATE- able and comparable manner
MENTS
B. CONSOLIDATED FINANCIAL STATE- 2124. Which of the following calculations
MENTS would you use to find total costs?
A. Fixed Costs + Variable Costs
C. COMBINED FINANCIAL STATEMENTS
B. Selling Price-Fixed Costs
D. CONDENSED FINANCIAL STATEMENTS
C. Total Fixed Costs / Selling Price-
2119. The amount of interest is credited by the Variable Cost
buyer to D. Total Fixed Costs/Variable Cost Per
A. Hire Purchase Account Item
B. Hire vendor account 2125. Mrs. Thongdee took 12, 000 baht in
C. Interest account cash, 20, 000 baht in bank deposits, 5,
000 baht in furniture, 4, 000 baht in trade
D. Cash account creditors, and 8, 000 baht in loans to in-
vest. I would like to know how much total
2120. Modern Accounting was born in? assets she has.
A. England A. 41, 000 baht
B. Scotland B. 12, 000 baht
C. France C. 37, 000 baht
D. USA D. 32, 000 baht

2126. Individuals who have started a business 2131. Switching accounting principles every
on their own. year would violate the:
A. Sole Trader A. Conservatism Principle
B. Business Partner B. Historical Cost Principle
C. Director C. Full Disclosure Principle
D. Employee D. Consistency Principle
2127. The following are not characteristics of
NARAYAN CHANGDER
Tangible Fixed Assets: 2132. Concept:Financial statements are pre-
pared with the expectation that business
A. have a physical form will remain in operation indefinately
B. relatively permanent A. going concern
C. have a lifespan of more than one ac-
B. materiality
counting period
C. accounting period cycle
D. intended for resale
E. used for company operational activi- D. matching revenue with expenses
ties
2133. Minimum rent is also called dead rent or
2128. A statement of profit and loss is another fixed rent.
name for: A. True
A. The income statement B. False
B. The balance sheet
C. The statement of cash flows 2134. The portion of authorized capital which
is issued to the public is called
D. The statement of changes in equity
A. Nominal Capital
E. The accounting equation
B. Issued Capital
2129. Conventions or rules developed by hu-
C. Authorized Capital
man from experience to fulfill the essential
and useful need and proposes in establish- D. Registered Capital
ing reliable financial and operating infor-
mation control for Business Entities. 2135. In the case of consignment sales, rev-
enue is to be recognised on sale of goods
A. statement is true
to a third party.
B. statement is false
A. True
C. cant say anything
B. False
D. none of above
2130. The royalty is more than minimum rent 2136. The total cash and credit sales during a
is known as period is called
A. Shortworkings A. Turnover
B. surplus B. Sales
C. Dead Rent C. Cost of goods sold
D. Recoupment D. Carriage Inward

2137. COMS = B. Only the equity method may be used.

A. Purchases + Merchandise Inventory C. Either the fair value method or the eq-

B. Purchases-Merchandise Inventory uity method may be used, depending upon
the relationship between the companies.
C. Net Income + Gross Profit
D. Neither the fair value method nor the
D. Sales-Expenses equity method may be used, regardless of
the level of ownership.
2138. Revenue Receipts and Payments Appear
in 2143. Choose the correct option
A. Trading Account
B. Profit and Loss Account
C. Both Trading and profit and Loss Ac-
count
A. 1, 900, 000
D. None
B. 1, 850, 000
2139. Business areas are external depart- C. 2, 150, 000
ments of an enterprise that are used to
define areas of responsibility or to meet D. 1, 700, 000
the internal requirements of a division. 2144. Accounting involves which of the follow-
A. True ing activities?
B. False A. Recording transactions and summariz-
ing financial data
2140. What is the corporation tax payable for
B. Conducting market research and ad-
the year?
vertising
A. £6, 370
C. Managing human resources and per-
B. £5, 000 sonnel
C. £7, 750 D. Manufacturing products and providing
D. £4, 500 services
2145. The Capital of the Company is called

2141. The Finance Minister Nirmala Sithara-
man has launched which app? A. Debenture Capital
A. Pay Commission Mobile App B. Preference Capital
B. National Budget App C. Share Capital
C. Union Budget Mobile App D. Others
D. Budget App 2146. If the accountant failed to make an ad-
justing entry at the end of the period
2142. What method of accounting will gener- to record depreciation for the period, the
ally be used when one company purchases omission will cause
between 20% to 50% of the outstanding
stock of another company? A. an overstatement of revenues
A. Only the fair value method may be B. an understatement of assets

used. C. an overstatement of liabilities

D. an overstatement of expenses 2153. Objective of non trading concern is

E. an overstatement of assets profit
A. True
2147. who is father of accounting in india
B. False
A. k.s. aiyer
B. T.N. charming 2154. Spending or a decrease in cash
C. Suresh Prabhu A. Asset
NARAYAN CHANGDER
D. none of above B. WT$
2148. Wages and Salaries given in Trial Bal- C. Use

ance will Appear in D. Source
A. Profit and Loss account
2155. Identify the type of expenditure. Re-
B. Balance Sheet painting extension to warehouse three
C. trading Account days after
D. All A. Capital
2149. is not a subsidiary book B. Revenue
A. Purchase book 2156. The total amount of goods purchased by

B. Sales book the firm for use or sale:
C. Ledger A. Assets
D. Cash Book B. sales
2150. When the lessor receives payment, he C. purchases

credits account D. none of above
A. Royalty
2157. Identify the type of expenditure. Pur-
B. Hire purchase chase of a motor van
C. Shortworkings A. Capital
D. profit and loss B. Revenue
2151. To credit an expense account means to
2158. Entries to revenues accounts such as Ser-
decrease it.
vice Revenues are usually
A. True
A. Debits
B. False
B. Credits
2152. Which of the following is NOT a compo-
nent of net sales? 2159. Positive accounting theory is
A. sales returns and allowances A. prescriptive
B. sales discounts B. descriptive
C. cost of good sold C. normative
D. credit card discounts D. nothing is true

2160. The company receives cash from a bank 2165. A is an artificial person which is rec-
loan. Liabilities will ognized in law as a separate legal entity

A. Increase A. partner
B. Decrease B. lawyer
C. No Effect C. company
D. none of above D. corporation
2161. Recording of transaction in ledger is
2166. Income and expenditure account reveals
called as
A. Surplus or deficiency
A. Journalizing
B. Cash in hand
B. Posting
C. Recording C. Net profit
D. None of these D. Capital account
2162. Generally, When considering the differ- 2167. In Dual Aspect Concept the assets repre-
ences between the accounting treatment sent economic resources of the business.
and the income tax treatment of a particu- A. True
lar item the accounting treatment is based
on B. False
A. Cash flow 2168. The accounting principles that states
B. The income tax legislation companies and owners should be account
for separately
C. Cash flow adjusted for depreciation
charges A. Business entity concept
D. Accrual accounting and is sub- B. Going concern concept
ject to the requirement of accounting
stanadrads. 2169. What is the total share dividend de-
clared for the year.Hint:Sum the Prefer-
2163. When preparing a balance sheet, the ence Share Dividend and the Ordinary
amount of owner’s capital is calculated us- Share Dividend
ing amounts obtained from:
A. £1, 750
A. the general ledger.
B. £5, 000
B. the income statement.
C. £4, 000
C. the journal.
D. £, 6750
D. none of these.
2170. Gallery Corp. paid $6, 000 for a six-
2164. It is a measurement of performance
month insurance policy for the company
(shows the profit or loss) of the company.
van. The policy coverage began on Jan-
A. Income Statement uary 1. On January 31, $1, 000 of insur-
B. Balance Sheet ance expense must be reported.
C. Cash Flow Statement A. True
D. Statement of Owner’s Equity B. False

2171. Prepaid expenses fall into the category C. Copyright

of
D. Trademark
A. Revenue
E. Franchise
B. Liabilities
C. Assets 2176. capital + drawings =net capital
recorded in liablities
D. Stockholders’ equity
A. gross profit
2172. A report made by company management
NARAYAN CHANGDER
that shows the revenue, expenses, and B. net profit
net income or loss for a period. C. dividend
A. Trading Account D. purchases
B. Statement of Financial Position
2177. A person who owes money to the firm
C. Income Statement
on account of good sold:
D. Statement of Changes in Equity
A. trade receivable
2173. Purchase of goods on credit would be
B. trade payable
recorded in the account as a debit
A. Supplier’s account, credit purchases C. seller
account D. customer
B. purchases account, credit cash ac-
count 2178. Debenture-holders are
C. purchase account, credit supplier’s ac- A. creditors

count B. owners
D. supplier’s account, credit sales ac- C. customers
count
D. none of these
2174. How do you calculate depreciation with
the cost method? 2179. Which asset from the following is actu-
A. Amount x percentage / months ally not an asset but an expense of heavy
nature
B. Amount x percentage x months
A. Fixed asset
C. Amount x percentage + months/12
D. Amount x percentage x months/12 B. Current asset
C. Wasting asset
2175. PT. Gudang Garam is a well-known com-
pany, has a good name among the public D. Fictitious asset
and investors. The salt warehouse factory
is located close to regional tobacco farmers 2180. Financial accounting reports include
and is well managed in terms of manage- A. Profit & loss account
ment and governance. More value from
PT. Gudang Garam is B. Directors report
A. Tangible fixed assets C. Balance sheet & auditor’s report
B. Goodwill D. All of the above.

2181. The selling price of an asset less the as- 2187. In single entry, the capital is ascertain
set’s net book value will calculate: by preparing

A. the asset’s accumulated depreciation A. Cash book
B. straight-line depreciation B. Debtors account
C. salvage value C. Creditors account
D. the gain or loss on sale D. Statement of affairs
2182. Cash checks are carried out when
2188. On January 2 2011, ABC company pur-
A. Once a week chased a machine for Rp. 100, 000, 000
B. Once a month with an economic life of 4 years. The ma-
chine has no residual value. What is the
C. Anytime
depreciation expense at the end of 2011
D. Every day if you use the double declining balance
method?
2183. The PCAOB was created in what year?
A. Rp. 12.500.000
A. 1902
B. 2002 B. Rp. 25.000.000
C. 2001 C. Rp. 50.000.000

D. 1913 D. Rp. 6.250.000
E. Rp. 75.000.000
2184. The purpose of financial accounting is to
provide information for
2189. How does net loss affect owner’s eq-
A. Assessing the profitability and finan- uity?
cial position of the firm
A. increases
B. Fixing prices
B. decreases
C. Locating factors leading to wastages
and losses C. no change
D. cost control D. indirectly
2185. The can transfer the right to cash a 2190. A credit to an liability account increases
check to another party by endorsing it. the balance.
A. accountant A. True
B. payee B. False
C. payer
2191. Are management accountants required
D. bank officer by law?
2186. Trading account is a A. Yes, they are legally required for all
A. personal account businesses
B. real account B. No, they are not legally required
C. nominal account C. Yes, but only for large businesses
D. none of the above D. No, but they are highly recommended

2192. What are the differences between book- D. loss in the retained earnings state-
keeping and accounting? ment.
A. no difference 2197. An owner’s personal expenses should
B. accounting is only a part of bookkeep- be kept separate from the business
ing A. Full Disclosure Principle
C. bookkeeping is only a part of account- B. Business Entity Principle
ing
C. Going Concern Principle
NARAYAN CHANGDER
D. they are completely different
D. Accrual Accounting
2193. How is equity measured for accounting 2198. Outstanding Income is
purposes?
A. Asset
A. Future sacrifices of economic benefits
that a business owes to other entities B. Liability
C. Dont Know
B. Durable produced goods used as pro-
ductive inputs D. none of above
C. Ownership interest in property offset 2199. Forecasting
by debts or liabilities
A. A formal one-year operating plan to
D. The total amount of income generated achieve the financial goals of an organiza-
by the sale of goods and services tion.
2194. Which book of original entry records the B. Making future predictions about the
key detailed information for each individ- budget based on current situations and
ual credit sale to a customer? trends.
A. Sales Returns Daybook C. A method that involves estimating ex-

penses for a future period as a percent-
B. Purchases Daybook age of the sales forecast.
C. Sales Daybook D. The process of using historical infor-
D. Purchases Returns Daybook mation and knowledge of external factors
to predict future sales.
2195. The following is an example of expendi-
ture using petty cash, namely 2200. The persons who still owe some amount
to the business are termed as
A. Debt repayment
A. Business men
B. Purchase of merchandise
B. Creditors
C. Payment of employee salaries
C. Debtors
D. Purchase of office supplies
D. Liabilities
2196. In the balance sheet, a debit balance in
2201. An adjusted trial balance
Unrealized Gain or Loss-Equity is reported
as a(n): A. shows the ending account balance in a
“debit” and “credit” format before post-
A. increase to stockholders’ equity. ing the adjusting journal entries
B. decrease to stockholders’ equity. B. is prepared after closing entries have
C. loss in the income statement. been posted

C. shows the ending account balances re- 2205. The total amount of money received
sulting from the adjusting journal entries from debtors, in addition to being recorded
in a “debit” and “credit” format in the bank account, should be

D. is a tool used by financial analysts to A. credited to the sales account.
review the performance of publicly traded B. credited to the debtors control ac-
companies count.
2202. Which of the following is not the ele- C. debited to the debtors control account.
ment of financial statements? D. debited to the sales account.
A. Assets
2206. (j) :is also called a debit memoran-
B. Shareholders dum, a banker sends to customers to in-
C. Revenues form them of deductions from their ac-
counts. In other words, it refers to a de-
D. Gains crease in a deposit account balance, such
as a check posted to the account.
2203. Interim financial reports are financial re-
ports A. Debit advice
A. In which revenues are reported in the B. Credit advice
income statement when cash is received C. Receipt
and expenses are reported when cash is
D. Invoice
paid
E. Quotation
B. That are prepared before any adjust-
ments have been recorded 2207. Anything that has value which provides
C. Covering less than one year, usually service to an organization is known as:
based on one-or three-month periods A. Capital
D. In which the adjustment process is B. Liability
used to assign revenues to the periods in C. Assets
which they are earned and to match ex-
penses with revenues D. Creditors
E. That show the assets above the liabili- 2208. Liabilities and assets Amt to Rs50, 000
ties and the liabilities above the equity and Rs 78, 000 respectively. The differ-
ence Amt will represent
2204. The inventory of goods at the end of the
A. Creditors
period is valued with the assumption that
the last goods entered (purchased) are con- B. Debentures
sidered to be the first to go out (sold). This C. Profit
method of recording inventory is called
D. Capital
A. Specific identifications method
2209. Trade Receivable
B. Gross margin method
A. The amount of money your customers
C. Retail method
or clients owe your business for goods or
D. Last in first out services you supply.
E. First in first out B. Total revenues minus total expenses.

C. How much profit you keep relative to 2214. What is the transaction for the pur-
total sales. chase of equipment by signing a promis-
sory note?
D. none of above
A. Dr equipment, credit cash
2210. Activities that result in changes in the B. Dr equipment, credit owner’s equity
amount and composition of capital contri-
C. Dr equipment, credit note payable
butions and company loans are
D. Dr equipment, credit accounts payable
A. Operational Activities
NARAYAN CHANGDER
2215. Max Corporation is a 25 percent-owned
B. Cost Activity
equity investee of Mor Corporation. Dur-
C. Investment Activities ing the current year, Mor receives $12,
000 in dividends from Max. How does the
D. Funding Activities
$12, 000 dividend affect Mor’s financial
2211. Mr. Rakesh gets total issued shares position and results of operations?
100 @ Rs. 10 (Received from them = Rs. A. Increases assets
3 on application, On allotment = Rs. 4, B. Decreases investment
but did not receive Rs. 3 from the final
C. Increases income
call. Make Journal Entry for forfeiture of
shares- D. Decreases income
A. Share Capital A/c Dr. 1000To Share Fi- 2216. Below are not included in the accounts
nal Call A/c 700To Forfeited Shares A/c that need to be adjusted
300 A. Charges paid in advance
B. Share Capital A/c Dr. 1000To Share Fi- B. Income received in advance
nal Call A/c 300To Forfeited Shares A/c C. Income that will still be received
700
D. Bond debt
C. Share Final Call A/c Dr. 300Forfeited
E. Accrued expenses
Shares A/c Dr. 700To Share Capital A/c
1000 2217. Which of the following is used to derive
D. Share Capital A/c Dr. 1000To For- missing figures in a system of incomplete
feited Shares A/c 1000 records?
A. Control account
2212. How to record Credit purchases? B. Bank account
A. Dr Purchase Cr Bank C. profit and loss account
B. Dr PurchasesCr Payables D. Bank statement
C. Dr PayablesCr purchases 2218. This constraint of accounting informa-
D. Dr CashCr Purchases tion does not influence decision making
process in an organization.
2213. Accounts payable accounting is not asso- A. cost benefit
ciated with the procurement process. B. materiality
A. True C. conservatism
B. False D. industry practice

2219. Which side of the ledger would increase 2224. Chad bought a pair of jeans that cost
an expense? $54, but his total was $58.32 due to the
sales tax. What percent sales tax did he

A. Debit
pay?
B. Credit
A. 8%
2220. value of fixed assets will be recorded in B. 80%
A. balancdesheet liablity C. 4.32%
B. balancesheet assets D. 6%
C. profit and loss account 2225. The portion of issued capital which is
D. trading account subscribed by the public is called
A. Called-up Capital
2221. income and expenditure account records
transaction of B. Subscribed Capital
A. Revenue nature only C. Paid-up Capital
B. Capital nature only D. Nominal Capital
C. Both revenue and capital nature 2226. Equipment reported on January 1, 2020
Rp. 2, 500, 000. Equipment purchases
D. Income of only revenue nature and ex-
during 2014 Rp. 4, 600, 000. Equipment
penditure of revenue and capital nature
remaining on December 31, 2020 Rp. 1,
2222. What are uncredited items in a bank rec- 000, 000. The correct adjustment entry
onciliation statement? for equipment is
A. Money given to a business from the A. Supplies Expense (D) Rp. 6.100.000Sup-
profit made by a public limited liability plies (K) Rp. 6.100.000
company B. Supplies Expense (D) Rp. 1.500.000Sup-
plies (K) Rp. 1.500.000
B. Amount paid directly into the business
bank account but not yet debited to the C. Supplies (AND) Rp. 1.000.000 Supplies
cash book Expense (KRp. 1.000.000
C. Cheques given to suppliers but not yet D. Supplies (D) Rp. 6.100.000Supplies Ex-
debited to the bank statement pense (K) Rp. 6.100.000
D. Cheques/cash received from cus- 2227. In ordinary business, are intended
tomers but not yet credited to the bank to be used and not sold
statement
A. Land and machinery
2223. The formula of sales revenue less cost B. assets
of goods sold enables you to calculate
C. Fixed assets
A. Net profit
D. liabilities
B. Operating profit
2228. On 7 April 2020, you received the bank
C. Retained profit
statement for March and found that a RM
D. Gross profit 12, 000 cheque, which was drawn on 10

September 2020 and paid to the creditor, 2232. It is because of this concept that fixed
had not been presented to the bank. assets are recorded at their original cost
A. In Cash Book, Dr Cash and Cr Creditor and depreciation in a systematic manner
without reference to their current realiz-
B. In Cash Book, Dr Creditor and Cr Cash able value.
C. Bank Rec. item, Add to bank balance A. Going Concern Concept
D. Bank Rec. item, less from cash book B. Realisation Concept
bal.
NARAYAN CHANGDER
C. Historical Concept Concept
2229. Profit = capital at the end+drawings- D. Money Measurement Concept
additional capital
2233. A lawyer collected RM52, 000 of legal
A. Opening capital
fees in advance. He erroneously debited
B. Closing capital Cash for RM27, 000 and credited Accounts
C. Loss Receivable for RM25, 000. The correcting
entry is
D. None of these
A. DR Cash 25, 000DR Accounts Receiv-
2230. Revenues and expenses must be able 27, 000CR Unearned Service Rev-
recorded in the accounting period in which enue 52, 000
they were earned or incurred, no matter
B. DR Cash 52, 000CR Service Revenue
when cash receipts or outlays occur under
52, 000
which of the following accounting meth-
ods? C. DR Cash 27, 000DR Accounts Receiv-
able 25, 000CR Unearned Service Rev-
A. Accrual basis accounting
enue 52, 000
B. Cash basis accounting.
D. DR Cash 27, 000CR Accounts Receiv-
C. Tax basis accounting able 27, 000
D. Revenue basis accounting
2234. Adjusting entries are designed primarily
2231. The following statements are TRUE re- to correct errors made by bookkeepers.
garding the Malaysian Private Entities Re- A. True
porting Standard (MPERS) and private en- B. False
tities EXCEPT:
A. MPERS is also applicable to the public 2235. Which side does Discount Allowed be-
companies in Malaysia. long?
B. MPERS is a self-contained Standard A. Debit
that is applicable only to private entities. B. Credit
C. A private entity is defined as a pri- 2236. What are two theories of regulation in
vate company that is not required to pre- political issues?
pare or lodge any financial statements un-
der any law administered by the Securi- A. Public interest theory and interest
ties Commission Malaysia or Bank Negara group theory
Malaysia. B. Public interest theory and agency the-
D. Private company can choose whether ory
to comply with the MPERS or MFRS. C. Agency theory and capture theory

D. Public interest theory and capture the- A. Financial accounting focuses on inter-
ory nal decision-making, while managerial ac-
counting focuses on external reporting to

2237. From which of the following can finan- stakeholders.
cial statements be generated?
B. Financial accounting and managerial
A. Operative chart of accounts accounting are the same and can be used
B. Country-specific chart of accounts interchangeably.
C. Financial accounting is only used by
C. Revenue accounts
small businesses, while managerial ac-
D. Assets counting is only used by large corpora-
E. Liability accounts tions.
D. Financial accounting focuses on exter-
2238. ONE REASON THAT AN ENTITY IS AL- nal reporting to stakeholders, while man-
LOWED TO CHANGE ITS ACCOUNTING agerial accounting focuses on internal
POLICY IS WHEN decision-making for management.
A. IT IS REQUIRED BY ACCOUNTING
2242. Which term is associated with “left” or
STANDARD
“left-side”?
B. IT IS REQUIRED BY LAW A. Debit
C. IT IS ORDERED BY MANAGEMENT B. Credit
D. ALL OF THESE C. Plus
2239. Which of the following statements is D. Minus

not part of the share issuance procedure: 2243. Entries to expenses such as Rent Ex-
A. The government gives full power to pense are usually
companies in issuing bonds A. Debits
B. Shareholders and the board of direc- B. Credits
tors must approve the bond issuance
2244. What type of business operates with a
C. Shareholders must determine the
limited amount of capital? and it is diffi-
amount of bonds to be authorized
cult to expand the business
D. The conditions for issuing bonds are A. One owner
regulated in a legal document called a
bond indenture B. partnership
C. limited company
2240. Commission Received account is a
D. public limited company
A. Personal Account
2245. XYZ Bhd took over the business of a
B. Nominal Account partnership at a price of RM300, 000. The
C. Real Account assets taken over were valued at RM450,
000 and the liabilities at RM100, 000.
D. Impersonal Account
Which of the following does the difference
2241. How does financial accounting differ of RM50, 000 refer to?
from managerial accounting? A. Goodwill

B. Net worth 2250. The Business entity assumption requires

that the activities
C. Capital Reserve (Gain On Bargain Pur-
chase) A. of a sole proprietorship cannot be dis-
tinguished from the personal economic
D. Revenue Reserve
events of its owners.
2246. A company using the accrual method B. must be reported to the Securities and
of accounting performed services on ac- Exchange Commission.
count in August. The services were for $2,
NARAYAN CHANGDER
C. of an entity be kept separate from the
000 and the company gave the customer activities of its owner.
credit terms that state the amount is to
D. of different entities can be combined if
be paid to the company in September.In
all the entities are corporations.
September when the company receives the
$2, 000 from the customer, which account 2251. Life membership fee may be capitalized
should the company credit? and shown in balance sheet in liabilities
A. Cash side.
B. Accounts Receivable A. True

B. False
C. Service Revenue
D. none of above 2252. What does GAAP stand for?
A. Generally Accounting Accepted Princi-
2247. What is the total cost with sales tax? ples
Price $2.75 Tax 5%
B. Generally Association of Accepted
A. $2.89 Practices
B. $3.00 C. Generally Accepted Association of
Practitioners
C. $0.14
D. Generally Accepted Accounting Princi-
D. $2.75 ples
2248. Which of the following corresponds to 2253. Vertical analysis is reporting an amount
Compound Entries? on a financial statement as a percentage of
A. Posting another item on the same financial state-
ment.
B. Reference
A. True
C. Item included
B. False
D. Finding the balance
2254. If the machinery is purchased on credit
2249. Another name for this balance sheet is then
Statement of Profit or Loss A. Vendor a/c will be dr. and Machinery
A. Income statement a/c will be cr,
B. Purchase a/c will be and Vendor a/c
B. Balance sheet
will be cr,
C. Statement of Changes in Equity
C. Machinery a/c will be dr. and Vendor
D. Statement of Cash Flows a/c will be cr,

D. Purchase a/c will be dr. and Machin- 2260. The question of when revenue should be
ery a/c will be cr, recognized on the income statement (ac-
cording to GAPP) is answered by the:

2255. Excess of hire purchase price over cash
A. Revenue recognition principle
price is known as Interest.
B. Going concern principle
A. True
C. Monetary unit value
B. False
D. Business entity principle
2256. Discount on Creditors is E. Cost principle
A. Deducted from Debtors 2261. In the absence of an agreement to the
B. Deducted from Creditors contrary, the partners are
C. Added to debtors A. Entitled for 6% interest on their capi-
tals, only when there are profits
D. Added to Creditors
B. Entitled for 9% interest on their capi-
2257. The sale of goods on credit for a non- tals, only when there are profits
VAT registered company is recorded in the C. Entitled for interest on capital on the
accounts as: bank rate, only when there are profits
A. Dr Trade receivable Cr Bank D. Not entitled for any interest in their
B. Dr Sale accountCr Cash sale capitals
C. Dr Sale accountCr Trade receivable 2262. The first step in the accounting cycle is
transaction analysis.
D. Dr Trade receivableCr Sales
A. True
2258. The balance on a firm’s debtors control B. False
account at the end of a year should agree
with 2263. Prepaid Rent is an item of
A. the total of the firm’s sales for that A. Asset
year. B. Liability
B. the amount of money received from C. Deferred Revenue Expenditure
debtors during the year. D. None of the Above
C. the total of debtors which are out-
2264. Expenses paid in advance for next year
standing for more than one year.
D. the total of its list of debtors outstand-
ing at the year-end.
2259. A person who invests and becomes an

owner of the corporation is called
A. Stockholder A. Prepayments
B. Investor B. Accrued expenses
C. Owner C. Advance incomes
D. Corporators D. Next year’s income

2265. Wall Company leased office premises to A. a reduction of an asset of $5, 000 and
Fox Company for a five-year term begin- a realized loss of $5, 000.
ning January 1, 2018. Under the terms of B. a reduction of an asset of $5, 000 and
the operating lease, rent for the first year an unrealized loss of $5, 000 in the stock-
is P800, 000 and rent for years 2 through holders’ equity section.
5 is P1, 250, 000 per annum. However,
as an inducement to enter the lease, Wall C. a reduction of an asset of $5, 000 in
granted Fox the first six months of the the current assets section and an unreal-
lease rent-free. What amount should be ized loss of $5, 000 in “Other expenses
NARAYAN CHANGDER
reported as rental income for 2018? and losses.”
A. 1, 200, 000 D. a reduction of an asset of $5, 000 in the
current assets section and a realized loss
B. 1, 160, 000
of $5, 000 in “Other expenses and losses.”
C. 1, 080, 000
D. 800, 000 2270. Top managers who run the company and
are responsible for its success or failure.
2266. In financial accounting, reports are pub- A. Executives
lished daily, weekly, or monthly depend-
ing on managerial requirements. B. General Manager
A. True C. Operations Manager
B. False D. Cashier
2267. Financial accounting provides accounting 2271. IMPAIRMENT OF ASSETS APPLY TO

information to the though the informa-
A. INVENTORIES
tion is useful for internal purposes also.
B. FINANCIAL ASSETS
A. external users
B. internal users C. ASSETS HELD FOR SALE
C. company D. PROPERTY PLANT AND EQUIPMENT
D. competitors 2272. Bichon Company purchased equipment

for $6, 720 on December 1. It is estimated
2268. If revenue expenditure transaction is
that annual depreciation on the equipment
mistakenly classified as capital expendi-
will be $1, 680. If financial statements
are to be prepared on December 31, the
company should make the following ad-
A. Current liabilities will reduce justing entry:
B. No effect on current liabilities A. Debit Depreciation Expense, $1, 680;
C. Current liabilities will increase Credit Accumulated Depreciation, $1, 680.
D. none of above B. Debit Depreciation Expense, $140;
Credit Accumulated Depreciation, $140.
2269. At the end of the fi rst year of opera-
tions, the total cost of the trading secu- C. Debit Depreciation Expense, $5, 040;
rities portfolio is $120, 000. Total fair Credit Accumulated Depreciation, $5, 040.
value is $115, 000. The financial state- D. Debit Equipment, $6, 720; Credit Accu-
ments should show: mulated Depreciation, $7, 200.

2273. According to the Companies Act, the 2278. Which account is not on the balance
commission payable to underwriter for un- sheet
derwriting shares should not exceed

A. Revenue
%.
B. Unearned revenue
A. 5
C. Equipment
B. 10
D. Cash
C. 2.5
D. 1.5 2279. What are the basic financial statements
in accounting?
2274. A company has been successful in re-
A. Profit statement, equity sheet, and in-
ducing the amount of sales returns and al-
come statement
lowances. At the same time, a credit card
company reduced the credit card discount B. Income statement, balance sheet, and
from 3 percent to 2 percent. What effect cash flow statement
will these changes have on the company’s C. Expense report, liability statement,
net sales, all other things equal? and revenue statement
A. A. Net sales will not change D. Cash flow report, income summary,
B. B. Net sales will increase and balance statement
C. C. Net sales will decrease 2280. Which is the last step of accounting as
D. either B or C a process of information?
2275. Which of the following would not be con- A. Recording the transaction
sidered internal users of accounting data B. Preparation of financial statements
for a company? C. Communication of information
A. The president of a company D. Analysis and interpretation of informa-
B. The controller of a company. tion
C. Creditors of a company 2281. Under this method, prepayments of ex-
D. Salesmen of the company. penses are initially debited to an asset ac-
count, and recognized as expense the in-
2276. Cheques issued but not presented in the
curred portion at the end of the period.
bank are called
A. Income Method
A. Un-presented check
B. Expense Method
B. Un-credited cheque
C. Asset Method
C. Un-collected cheque
D. Liability Method
D. Un-cleared cheque
2282. Tams Company reported a net loss of
2277. The balance of trading account is trans-
P40, 000. Its net sales was P150,
ferred to
000 and a gross profit was 20% of net
A. Balance sheet sales. Operating expenses amounted to
B. Profit and loss account how much?
C. Debtors account A. P 130, 000
D. Sales account B. P 110, 000

C. P 70, 000 2287. In the Stock and Debtors Method of ac-

counting, balance of Branch Stock Account
D. P 50, 000
shows either Gross Profit or Gross Loss.
2283. Which type of business organisation has A. True
the following characteristics?-conducts
B. False
business separate from its owners-the
owners have limited liability-the organisa-
2288. Capital in Balance Sheet is aggregate of
tion is a taxable entity
NARAYAN CHANGDER
A. Capital + Drawings + net Profit
A. Sole trader
B. Capital-Net Profit
B. Partnership
C. Capital-Drawings + Net Profit
C. Company/corporation
D. Capital + Drawings + Net Profit
2289. Accrued revenues
2284. double entry system means
A. Are also called unearned revenues
A. entry for two aspects
B. Are listed on the balance sheet as lia-
B. entry in two sets
bilities
C. entry in two real account
C. Are paid in advance
D. two entries in one set
D. At the end of one accounting period of-
ten result in cash payments in the next pe-
2285. The FRSC has a chairman who had been
riod
or presently a senior practitioner in
E. At the end of one accounting period of-
A. Any scope of accounting practice
ten result in cash receipts from customers
B. Commerce & Industry in the next period
C. Public accountancy
2290. Yellowjacket Company reported the fol-
D. Academe lowing January purchases and sales data
for its only product. Using the periodic
2286. What is the difference between cash ba- LIFO Inventory costing method, what is
sis and accrual basis accounting? the cost of the ending inventory?
A. Accrual basis accounting records A. $1, 225
transactions only when cash is exchanged
B. $1, 140
B. Cash basis accounting records trans-
actions only when cash is exchanged, C. $2, 140
while accrual basis accounting records D. $2, 225
of when the cash is exchanged. 2291. Though the instalments of a hire pur-
chase agreement may be equal. The inter-
C. Cash basis accounting records trans-
est element in each instalment is not the
actions only when credit is exchanged
same
D. Cash basis accounting records trans-
A. True
actions when they occur, regardless of
when the cash is exchanged B. False

2292. The main objective of depreciation is 2298. In the indirect method of preparing the
A. To show the previous profit statement of cash flows, depreciation ex-
pense is:

B. To calculate net profit
A. Added back to net income
C. To reduce tax
B. Deducted from net income
D. To satisfy the tax department
C. Ignored in the statement of cash flows
2293. Which of these is not an example of a
Factory Overhead? D. none of above
A. Depreciation of Factory Machinery
2299. Quick ratio is
B. Factory Rates
A. 4:1
C. Factory Insurance
B. 3:1
D. Direct Expenses
C. 2:1
2294. In absence of partnership deed, partners D. 1:1
are entitled to interest on capital @ 6%
p.a. 2300. What amount of comprehensive income
should John Corporation report on its
A. True statement of profit or loss and other com-
B. False prehensive income given the following net
of tax figures that represent changes in a
2295. Accounts Payable period?
A. Current Asset A. 86, 500
B. Fixed Asset B. 89, 000
C. Long-Term Liability C. 89, 500
D. Current Liability D. 90, 500
2296. Which financial statement displays the 2301. Analysis of Financial Statements is sig-
revenues and expenses of a company for nificant:
a period of time?
A. For Creditors
A. Income Statement
B. For Managers
B. Balance Sheet
C. For Employees
D. For all of the above
D. Statement of Owners’ Equity
2302. The construction of a theory begins with
2297. A form describing the goods or services observation and moves toward general-
sold, the quantity, the price, and the terms ized conclusion. Reasoning from particular
of sale. This is called a statements to general statements refer to
A. invoice A. deductive approach
B. check B. inductive approach
C. sales invoice C. economic approach
D. journal D. eclectic approach

2303. Income and Expenditure account shows 2309. Choose the correct option
surplus/deficit of of a non trading concern
A. True
B. False
2304. A is part of the annual financial

statements and is used to calculate the
cost of goods produced. A. 5, 000
NARAYAN CHANGDER
A. Manufacturing account B. 10, 000
B. Prime cost C. 15, 000
C. Cost of production D. 20, 000
D. Work in progress
2310. Debit the receiver & credit the giver is
2305. If opening stock is Rs. 50, 000, pur- account
chase is Rs. 4, 20, 000 and closing stock A. Personal
is Rs. 30, 000, then what is the cost of
goods sold- B. Real
A. Rs. 4, 40, 000 C. Nominal
B. Rs. 4, 70, 000 D. All the above

C. Rs. 4, 00, 000 2311. Aidil and Imran are partners in a part-
D. Rs. 5, 00, 000 nership. On 1/1/20, they admitted
Asyraf as a new partner. Opening capi-
2306. Company and Employees are otherwise tal for Aidil is RM 85, 000 and Imran is
called as internal users of accounting RM 55, 500. Asyraf contributed RM 20,
A. true 000 cash as his capital. Profit on revalua-
tion for Aidil amounted to RM 5, 000 and
B. False Imran amounted to RM 2, 500. What is
Imran’s closing balance of capital?
2307. Anything of value that is owned
A. RM 90, 000
A. equity
B. RM 53, 000
B. liability
C. account C. RM 58, 000
D. asset D. RM 20, 000
2308. Goodwill is recognized in partnership ac- 2312. Which of the following differences
counts when would result in future taxable amount?
A. the business makes a huge profit A. Expenses or losses that are deductible
after they are recognized in accounting in-
B. the business has good customer rela- come.
tionship
B. Revenues or gains that are taxable be-
C. a partner is dormant fore they are recognized in accounting in-
D. a new partner is admitted come.

C. Expenses or losses that are deductible 2317. As per AS-2 Inventory is valued at the
before they are recognized in accounting lower of net realizable value and current
income. replacement cost.

D. Revenues or gains that are recognized A. True
in accounting income but are never in- B. False
cluded in taxable income.
2318. A type of business that provide services
2313. Choose the correct option rather than products to customers
A. Malaysia Airlines
B. Giant
C. He t
A. 7, 720, 000 D. none of above
B. 7, 800, 000 2319. The process of recording transfers of
C. 8, 000, 000 amounts from the general journal to indi-
D. 8, 080, 000 vidual accounts in the general ledger.
A. posting
2314. Deposited 10, 000 in Bank.
B. tweeting
A. Cash A/C (Debit)-To Bank A/C (Credit)
C. meeting
B. Bank A/C (Debit)-To Capital A/C
(Credit) D. writing
C. Bank A/C (Debit)-To Cash A/C (Credit) 2320. A basic assumption of accounting as-
D. Cash A/C (Debit)-To Capital A/C sumes that the money is
(Credit) A. useless in measuring an economic
event.
2315. Which of the following is current liabil-
ity? B. the common unit of measure for all
business transactions.
A. Account receivable
C. a poor measure of economic activities.
B. Salary
D. unrelated to business transactions.
C. Account payable
D. Drawing 2321. Who is known as the father of account-
ing?
2316. What is the current year depreciation A. Leonardo da Vinci
expense for 2022 for the following as-
set placed in service in 2020?cost of $20, B. Friar Luca Pacioli
000Salvage value $ 5, 000Useful life of 5 C. Alkhawarizmi
years D. Al Mazendarany
A. 3, 000
2322. What is the CNSS of the employee
B. 4, 000 knowing that the annual taxable gross is
C. $250 98, 085.6
D. $333.33 A. 852.3

B. 846.4 D. Dr. Noncontrolling interest $300Cr.

C. 835.6 Noncontrolling interest share $300
D. 826.2 E. None of the above
2323. Which of the following is a correct jour- 2326. A private nonprofit board that estab-
nal entry for the receipt of payment from lishes specific rules and regulations for
a customer? recording economic events in an accounting
system.
NARAYAN CHANGDER
A. Debit Cash, Credit Sales Revenue
A. Financial Accounting Standards Board
B. Debit Sales Revenue, Credit Accounts
(FASB)
Payable
B. American Institute of Certified Public
C. Debit Accounts Payable, Credit Cash
Accountants (AICPA)
D. Debit Cash, Credit Accounts Receiv-
able C. Public Company Accounting Oversight
Board (PCAOB)
2324. A set of accounting rules and regulations D. International Financial Reporting Stan-
used throughout the world (with the no- dards (IFRS)
table exception of the United States) in
order to ease the process of comparing fi- 2327. The revenue which is received before
nancial statements between companies in goods have been delivered or services
different countries. have been rendered is called
A. International Financial Reporting Stan- A. Earned revenue
dards (IFRS)
B. Prepaid revenue
B. International Accounting Reporting
Standards (IARS) C. Deferred revenue
C. Universial Financial Reporting Stan- D. Uncollected revenue
dards (UFRS)
2328. Which of the following financial state-
D. Universial Accounting Reporting Stan-
ments is also known as a statement of fi-
dards (UARS)
nancial position?
2325. Jack owns 80% of Nick. During 2016,
Nick sold goods costing $1, 500 to Jack
at a gross profit of 25%. Jack had $200
of these goods on hand at the end of the
year. What is the journal entry to elimi-
nate intercompany ownership for consoli-
dation purpose?
A. Dr. Noncontrolling interest $50Cr.
Noncontrolling interest share 50 A. Income statement
B. Dr. Noncontrolling interest $200Cr.
B. Balance sheet
Noncontrolling interest share $200
C. Statement of cash flows
C. Dr. Noncontrolling interest $10Cr.
Noncontrolling interest share $10 D. Statement of fund flows

2329. What is the main objective of account- C. $60, 000

ing? D. $40, 000

A. to show the value of shares in the com-
pany 2333. Financial accounting has a primary pur-
pose pf providing economic and financial
B. to provide information on business ac- information for all of the following except
tivities to interested users
A. creditors.
C. to help management to plan its busi-
ness activities B. investors.
D. to show managers the results of their C. managers.
departments D. other external users.
2330. Illustrate Branch Stock Adjustment Ac- 2334. Summary of assets and liabilities
count.Choose CORRECT amount of Branch
A. Profit and loss account
Profit Loss
B. Balance Sheet
C. Trading acccont
D. Income and expenditure account
2335. A promise by a business to pay for fu-

ture expenses of a product sold.
A. Wages payable
A. RM18, 970 B. Liability
B. RM18, 870 C. Product Liability
C. RM18, 770 D. Warranty
D. RM18, 670 2336. Which of following best describes what

a Profitability Ratio measures?
2331. What steps have been taken by NTPC
towards environment protection? A. Income or operating success for a
given period of time
A. Adopting latest technique
B. Current market price of a company
B. Minimising waste management by share relative to its per-share earnings
maximising ash utilisation
C. How well a company can meet its
C. Afforestation and green belt short-term financial liabilities
D. All of these D. Net income available for payment to
the holders of its common stock
2332. As of June 30, 2020, Little Giantz
Company has assets of $100, 000 and 2337. Gross profit is:
owner’s equity of $60, 000. What are the
liabilities for Little Giantz Company as of A. Net profit less expenses of the period
June 30, 2020? B. Sales less Purchases
A. $160, 000 C. Cost of goods sold + Opening stock
B. $100, 000 D. Excess of sales over cost of goods sold

2338. Sales return book record businesses to operate in an increase

A. Return of goods sold global environment.ii. Greater credibil-
ity and transparency to financial report-
B. return of goods purchased ing in Malaysia.iii. Facilitate worldwide
C. Cash sales comparability which make it easier for the
global investors to understand and rely on
the financial statements prepared by the
2339. Prepared to test the equality of the deb- Malaysian companies.iv. Enhance national
reputation of Malaysia as being in com-
NARAYAN CHANGDER
its and credits.
pliance with International Accounting Stan-
A. Posting
dards. Which of the above statements is
B. Trial Balance TRUE?
C. Footing A. All of the above
D. Ledger B. i and ii
C. i, ii and iii
2340. What is the main purpose of financial
accounting? D. i, ii, and iv
A. Organize financial information 2344. What level of KKLT accounting assump-
B. Provide useful, financial information to tions are there?
outsiders A. Level 1
C. Keep track of company expenses B. Level 2
D. minimize company taxes C. Level 3
D. Special level
2341. What is correct entry for loss on reval-
uation asset? 2345. On September 1, 2011, Entity A en-
A. Dr revaluation account Cr old partner’s tered into an agreement to rent office
capital account space for a year and paid $36, 000 for a
six-month rent. Prepare journal entries on
B. Dr Assets account Cr Revaluation ac- the following dates:December 31, 2011
count
A. Rent expense (D) 24.000 Prepaid rent
C. Dr Revaluation account Cr assets ac- (K) 24.000
count
B. Rent expense (D) 9.000 Prepaid rent
D. Dr old partner’s capital account Cr (K) 9.000
revaluation account
C. Prepaid rent (D) 24.000Rent Expeses
2342. Gave birth to Double Entry System (K) 24.000
A. Marshall D. Prepaid rent (D) 9.000Rent Expeses (K)
9.000
B. Batliboi
2346. To decrease the balance in the follow-
C. Pickles
ing accounts, would you debit the account
D. Lucas Pacioli or would you credit the account?Accounts
Payable
2343. The benefits of full convergence with
the International Financial Reporting Stan- A. Debit
dards (IFRS) would be:i. Assist Malaysian B. Credit

2347. Which of the following are fixed as- 2352. All the following are reasons for dis-
sets? agreement between cash book and bank
statement except

A. Cash in Hand
A. Standing order
B. Cash at Bank
B. Bank Errors
C. Furniture & Fixtures
C. Bank charges
D. Inventory
D. Overdraft
2348. The ownership of goods under hire pur-
2353. Which of the following is classified as
chase agreement belongs to the
TANGIBLE ASSET? (Can choose more than
A. seller 1 answer)
B. purchaser A. Mortgage on premises
C. seller and purchaser B. Patent
D. purchaser and financial institution C. Plant and machinery
D. Fixture and fittings
2349. Retirement and death of a partner
E. Motor vehicles
A. Is dissolution of partnership agree-
ment 2354. Labor Unions
B. Is dissolution of firm A. Internal User
C. None of the above B. External User
D. none of above 2355. Every Debit has a corresponding & equal

credit
2350. A debit may signify A. Single Entry
A. a decrease in an asset account B. Double Entry
B. an increase in an asset account C. No Entry
C. an increase in a liability account D. All of the above
D. an increase in the owner’s capital ac- 2356. If services are rendered for credit, then
count
A. assets will decrease.
2351. Fraud means B. liabilities will increase.
A. Dishonest act by an employee that re- C. owner’s equity will increase.
sults in personal benefit to the employee D. liabilities will decrease.
at a cost to the employer
2357. a profit from business operations (gross
B. Dishonest act by a manager that re-
profit minus operating expenses) before
sults in personal benefit to the manager
deduction of interest and taxes
at a cost to the CEO.
A. Operating Profit
C. the quality of having strong moral prin-
ciples ; honesty and decency. B. Profit before tax
D. the condition of being unified, unim- C. Profit after tax
paired, or sound in construction. D. none of above

2358. Sale proceeds of fixed assets are a C. Short term loan capital
A. Capital profit D. Profit
B. Revenue profit
2364. According to the concept of conserva-
C. Capital receipt tion, the stock-in-trade is valued at:
D. Revenue receipt A. Cost Price
2359. is a major source of income for Non- B. Market Price
profit organisation
NARAYAN CHANGDER
C. Cost or Market which ever is higher
A. Subscription
D. Cost or Market which ever is lower
B. Admission fee
C. Life members fee 2365. In what year was the KKLT used to pre-
pare the financial statements issued?
D. Donation
A. 2018
2360. Use of assets to generate revenues or
B. 2017
pay expenses of a business, such as pay-
ing rent or receiving cash from sale. C. 2016
A. Operating activity D. 2015
B. Financing activity 2366. As per AS-2, inventory should normally
C. Investing activity be valued at historical cost or market
D. Accounting value whichever is lower.
A. True
2361. This concept assumes that, for account-
ing purposes, the business enterprise and B. False
its owners are two separate independent
entities 2367. The standards, conventions, and rules
that accountants follow to prepare finan-
A. Money Measurement Concept cial reports are known as:
B. Going Concern Concept A. generally accepted accounting princi-
C. Business Entity Concept ples.
D. Cost Concept B. accounting and audit procedures.
2362. Who is the target audience of financial C. management accounting.
accounting? D. executive accounting.
A. All employees of the business
2368. The cost of a building is $ 36000 and
B. Regulators and the public the accountants have determined it useful
C. Existing and potential investors, life to be 20 years. What would be the
lenders, and creditors monthly depreciation expense?
D. Internal managers A. $ 300
2363. Cost of depreciation fund computed as B. $ 600
A. Long term loan capital C. $ 150
B. Dividend D. $ 1200

2369. What is the frequency of report of man- 2375. Assets minus liabilities is
agerial accounting? A. Drawings

A. Once at the end of accounting period B. Capital
B. As frequently as needed C. Credit
2370. The amount of credit sales can be com- D. Profit

puted from 2376. Given the following data:Net Sales of
A. Total debtors account P156, 000; Sales returns of P15, 000;
Cost of Goods available for sale of 120,
B. Total creditors account
000; Purchase returns of P20, 000. How
C. Bills receivable account much is the Gross profit if Gross profit is
D. Bills payable account 30% of Cost of goods sold
A. P120, 000
2371. following are the branches of Account-
B. Give, 000
ing
C. P101, 500
D. Impossible to determine
B. Cost accounting
C. Management Accounting 2377. Returns inwards is also known as
A. Purchases returns
D. All of Above
B. Sales Returns
2372. Which of the following items appear on C. Carriage Inward
the same side of the trial balance?
D. Carriage Outward
A. Capital and Sales
2378. When Allotment is made and money is
B. Purchases and Discounts received
due, the entry will be
C. Motor expenses and Loan account
A. Debit:Share Capital Credit:Share Allot-
D. Accrued income and Accumulated de- ment Account
preciation B. Debit:Share Allotment Account
Credit:Share Capital
2373. Trial balance is a:
C. Debit:Cash Account Credit:Share Allot-
A. Statement
ment Account
B. Account D. Debit:Share Allotment Account
C. Summary Credit:Cash Account
D. Ledger 2379. When a public limited company raises
capital from public, it needs to issue
2374. Equity shareholders are to the public
A. creditors A. Prospectus
B. owners B. Letter of Offer
C. customers C. Letter of Invitation
D. none of these D. None of the Above

2380. COMS = 2385. The monthly or weekly total of the pur-

A. the cost of merchandise sold to cus- chases book is posted to the
tomers A. Debit of the purchases account
B. the cost of merchandise returned by
B. Credit of the purchases account
customers
C. the cost of manufacturing sold to cus- C. Debit of the sales account
tomers D. none of above
NARAYAN CHANGDER
D. the cost of manufacturing returned by
customers 2386. Which of the Following accounts are
treated in Accounting
2381. Trading and profit & loss A/c represent
the summary of: A. Real
A. All Personal Accounts B. Nominal
B. All Real Accounts C. Personal
C. All Nominal Accounts
D. Fictional
D. All Personal, Real & Nominal Accounts
2382. Which term represents the monies a 2387. Billy Bob just bought a new car. His car
company earns by selling its products and costs $75, 000. How much money will he
services? pay in taxes for the car if the sales tax is
6%?
A. Liabilities
B. Assets A. 1000
C. Expenses B. 2000
D. Revenue C. 4000
E. Equity D. 4500
2383. Ignoring work in progress, which one of
the following statements correctly defines 2388. The relationship between consignor and
factory cost of production? consignee is that of
A. A. Raw materials purchased plus indi- A. employer and employee
rect costs.
B. business partners
B. Prime cost plus factory overheads.
C. owner and servant
C. C. Prime cost minus factory over-
heads. D. principal and agent
D. D. Prime costs plus direct costs.
2389. All the following are added to balance
2384. Large corporations must follow the as per bank statement except
basis of accounting.
A. Standing order
A. Expense method
B. Bank charges
B. cash method
C. Acrrual method C. Uncredited cheque
D. Deferred method D. Dividend

2390. Trial balance contains the balances of 2395. Any loan given by a partner to the busi-
ness where there is no partnership agree-
ment attracts an annual interest of

A. All real and personal accounts
B. All personal and nominal accounts A. 6%
C. All nominal and real accounts B. 5%
D. All accounts C. 3%
D. 4%
2391. All of the following describe accounting,
except 2396. The adjusting entries are made:
A. A service activity A. At the end of every month
B. An information system B. At the end of every quarter
C. A universal language of business C. At the end of every accounting period
D. An exact science rather than an art D. After six months
2392. A block of time covered by an accounting
2397. What is “goods” in English?
report. Also known as a fiscal period.
A. Goods in transit
A. accounting period
B. Outward goods on consignment
B. calendar
C. calendar period C. Merchandise inventories
D. none of the above D. none of above
2393. Limit of Minimum Number of Partners is 2398. Depreciation is defined as:allocation of

Fixed by of non-current asset over its
A. Companies Act 1956 A. selling price remaining life
B. Partnership Act 1932 B. costuseful life
C. New Companies Act 2013 C. costremaining life
D. None of the Above D. selling priceuseful life
2394. The expired rent is 1/4 of the existing 2399. The financial statements of a limited li-
amount, in the Balance Sheet there is a ability company will consist solely of the
Prepaid Rent account amounting to IDR 24, statement of financial position and state-
000, 000 ment of profit or loss. Is this statement
A. Rent Expense (D) IDR 12, 000, 000 true or false?
DBM Rent (K) IDR 12, 000, 000 A. TRUE
B. DBM Rent (K) Rp. 12, 000, 000 Rent B. FALSE
Expense (K) Rp. 12, 000, 000
2400. The hire purchase Act came into force
C. Rent Expense (D) Rp6, 000, 000 DBM
from the year 1972
Rent (K) Rp6, 000, 000
A. True
D. DBM Rent (D) Rp6, 000, 000 Rent Ex-
pense (K) Rp6, 000, 000 B. False

2401. Find the term to match the meaning 2406. The amount borrowed; this is the non-
below:Total value of inventory purchased interest portion paid back when making
from suppliers by the business for resale loan payments
A. Purchases A. Loan Payable
B. Closing Inventory B. Note Payable
C. Principal
C. Other Income
D. Interest
D. Expenses
NARAYAN CHANGDER
2407. Which of the following is not a source
2402. Objective of Financial Accounting document?
A. Ascertain Profit or Loss A. Money
B. Ascertain Financial Position B. Invoice
C. Both the above C. Receipt
D. Credit note
2408. Describe the key characteristics of finan-
2403. There are several of the Characteristics cial accounting.
of ideal theory, except
A. Subjectivity, inconsistency, irrele-
A. having the quality of authenticity and vance, unreliability
also authoritative
B. Accuracy, precision, timeliness, hon-
B. The ability analysing and forecast fu- esty
ture events C. Flexibility, uniqueness, individuality,
C. Must be wide acceptance creativity
D. verifiable through testing of hypothe- D. Objectivity, reliability, relevance, com-
sis parability, and consistency
2409. The professional organization that CPAs
2404. The amount of revenue that remains af-
may join. The AICPA creates and adminis-
ter expenses for the accounting period sub-
ters the CPA exam and nurtures CPA pro-
tracted from the gross profit on sales.
fessional practice
A. expense A. American Institute of Certified Public
B. revenue Accountants
C. cost of merchandise sold B. Financial Accounting Standards Board
C. Federal Accountants Association
D. net income
D. Internal Revenue Service
2405. A Company in which the maximum num-
2410. When the issue price is higher than the
ber of members is restricted is called
face value, the issue is termed as
A. Private Company
A. Issued at Discount
B. Public Company B. Issued at Premium
C. Government Company C. Issued at Par
D. Unlimited Company D. None of the Above

2411. Single entry system of book keeping is B. outstanding interest

A. (a) Simple C. sales account

B. (b) Unauthorized by tax authorities D. purchase account
C. c) Unscientific 2417. Mr. A withdrew business money for
D. (d) all of these personal use. You can save your account
by
2412. As per AS-7 expenses recognized in the
period in which the work to which ex- A. Debit withdrawal for personal use,
penses relate is performed. credit cash
A. True B. Cash debit, credit withdrawal for per-

sonal use
B. False
C. Debit capital of Mr. A, credit with-
2413. Internal control procedures drawal for personal use
A. Eliminate the risk of loss D. Not recording the program
B. Eliminate the risk of loss and include 2418. Positive is a hypotheses that are tested
policies and procedures to safeguard as- against actual events
sets
A. True
C. Include policies and procedures to
safeguard assets B. False
D. Prevent unavoidable losses 2419. What is mean by Assets?

E. All of the above A. loans
2414. The items, raw materials inventory, B. propertys

work in progress inventory and finished C. purchases
goods inventory are MOST like seen to- D. sales
gether on the balance sheet of a
A. garage 2420. Gross Profit Percent helps a business to
measure?
B. shoe factory
A. Sales
C. supermarket
B. Profitability before other operating ex-
D. bus company penses
2415. when Machinery purchased account C. to analyze and assess a company’s fi-
will be debited nancial performance
A. Personal Account D. a ruler
B. Machinery Account 2421. Accounting equation can be expressed
C. Cash Account as
D. bank Account A. A= C + L
2416. which of the following accounts is nom- B. C= L-A

inal C. A= C-L
A. Interest D. L= A+C

2422. John owes Sally $500. John is Sally’s C. $352

D. $402
A. Business partner
B. Accountant 2427. Which of the following users are consid-
ered as internal user?
C. Debtor
A. Owner
D. Creditor
B. Bank
NARAYAN CHANGDER
2423. Return on sales (ROS) is the ratio of net
C. Middle management
income to total sales.
D. Buyer
A. True
B. False 2428. Bernard plans to start a business. The
cost to start the business is $5 000. He
2424. double entry system keeps record of has $2 600 to invest, how much money
A. personal a/c does he need to borrow to start the busi-
ness?
B. real a/c
C. nominal a/c A. $7 600
D. all of thease B. $2 400

C. $2 500
2425. A merger between 2 or more people (en-
tities) to jointly own and run a company in D. $2 600
order to gain profit or gain is
2429. The formula for the straight line method
A. Federation is
B. Liquidation Guild
A. Depreciation= Cost-Residual
C. Joint Venture Value/Economic Life
D. Consignment B. Depreciation = Residual Value-
Acquisition Price/Economic Life
2426. If you make an adjusting entry of $50
credit to Office Supplies, which amount C. Economic Life = Residual Value-
should you record in the balance sheet sec- Acquisition Price/Depreciation
tion? D. Residual Value= Economic Life-
Acquisition Price/Depreciation
E. Acquisition Price:Residual Value-
Depreciation/Economic Life
2430. In the absence of partnership deed, in-

terest on loan of a partner is allowed:
A. @8% per annum
B. @6% per annum
A. $50 C. no interest is allowed
B. $252 D. @12% per annum

2431. The primary book used to record the ac- 2436. If a company plans to differentiate its
quisition of fixed assets on credit is products by offering low prices and dis-
counts for items packaged in bulk (like

A. Purchases journal
a discount retailer that requires member-
B. returns outward book ships for its customers), which component
C. journal proper in the ROA profit driver analysis is the
company attempting to boost?
D. cash book
A. net profit margin
2432. The basic principles of accounting are B. asset turnover
C. financial leverage
A. historical cost and fair value
D. all of the above
B. economic entity, going concern, and
accrual
2437. Why is issuing a receipt after a sale al-
C. measurement, revenue recognition, ways important?
expense recognition and full disclosure
A. Without a receipt you cannot return
D. assets, liabilities, equity, income and your purchase.
expenses
B. The receipt helps enforce separation
2433. The primary objective of GAAP is to proof duties procedures
vide accounting information that is: C. Without a receipt you increase the like-
A. Usefulness for decision making lihood of fraud or theft.
B. Freedom from bias D. The receipt is the only record that the
sale was made.
C. Timeliness
D. Comparability 2438. Receipts and Payments Account is a
E. Neutral A. Personal Account
B. Real Account
2434. In the absence of a partnership deed the
partners are entitles to interest on capital C. Nominal Account
at the rate of
D. Real and Nominal Account, both
A. 6%
2439. The statements below refer to the char-
B. 9%
acteristics of a type of business. # Widely
C. 12% scattered in Malaysia# Solely owned busi-
D. nil ness# Profit gained or loss suffered by
the owner itself Which business meets the
2435. Equity =? above characteristics?
A. Asset-Liability A. Public limited company
B. Liability-Asset B. Sole proprietorship
C. Income-Expense C. Private limited company
D. Expense + Income D. Partnership

2440. The owner’s capital amount reported on 2444. Which of the following is found in a re-
a balance sheet is calculated as capital ac- ceipts and Payments Account
count balance less drawing account bal- A. Accruals
ance plus net income.
B. Prepayments
A. True
C. Depreciation of fixed assets
B. False
D. Purchase of fixed assets
2441. On Jan 1, 2018, Rey acquires 100% of
NARAYAN CHANGDER
2445. What is carrying amount
Jul for $150, 000. Assume the book value
and fair value of Jul’s net assets were 140, A. Cost-Residual value
000 and 165, 000, respectively. What is B. Cost-Depreciation charge
the record by Rey when acquiring Jul?
C. Cost-Accumulated depreciation
A. Dr. Investment in Jul $165, 000Cr.
Gain on bargain purchase $15, 000Cr. D. Cost-Selling price
Cash in bank $150, 000 2446. Anil purchased 1000 pens at the rate of
B. Dr. Investment in Jul $150, 000Cr. 50 each less trade discount of 20%
Cash in bank $150, 000 purchase account will be debited by
C. Dr. Investment in Jul $160, 000Cr. A. 50000
Gain on bargain purchase $10, 000Cr. B. 40000
C. 45000
D. Dr. Investment in Jul $140, 000Cr.
D. 60000
E. Dr. Investment in Jul $165, 000Cr. 2447. If Partnership Deed is silent, Rate of In-
Cash in bank $165, 000 terest on loan by firm to a Partner shall be
6% p.a.
2442. Depreciation can be described as A. True
A. The original cost of the asset B. False
B. an increase in the value of an asset
2448. The formula for calculating the net in-
over time.
come ratio is net income divided by total
C. a reduction in the value of an asset sales.
over time, due in particular to wear and
A. True
tear.
B. False
D. The net book value of an asset
2449. Choose which is incorrect about selling
2443. Final account of non trading concern in- agency branch
cludes:
A. all instruction from Head Office
A. Receipt and payment account
B. accounting records maintained by
B. Trading Account Head Office
C. Income and Expenditure account C. activities controlled by Head Office
D. Balance sheet D. branch may make local purchase

2450. Journal Entry for Cash Withdrawn by C. BECDA

Owner is? D. BCEAD

A. Drawing A/c Dr. To Cash A/c
2457. WHICH OF THE FOLLOWING IS NOT
B. Capital A/c Dr To Cash A/c CONSIDERED A FINANCIAL INSTRUMENT
C. Cash A/c Dr. To Drawing A/c A. ACCOUNTS RECEIVABLE
D. Drawing A/c Dr. to Capital A/c B. TAXES PAYABLE
2451. The movement of cash into and/or out C. INVESTMENT IN EQUITY SECURITIES
of a company. D. BONDS PAYABLE
A. Cash Flow
2458. When does a debit take place?
B. Net revenue
A. When assets and expenses decrease
C. Net loss
B. When assets and expenses increase
D. Let’s spend it all on a party!!
C. When revenue and liabilities decrease
2452. Bad debts recovered is credited to
D. When revenue and liabilities increase
debtor’s personal account.
A. True 2459. If during a petty cash inspection it is
found that the physical amount of petty
B. False
cash is greater than the record balance
2453. An increase in Accounts Receivable is then this will occur
recorded by a entry in the account. A. Cash shortage
A. Debit B. Cash overage
B. Credit C. Cash opname
2454. With reference to accounting principles, D. Cash on hand
every transaction has minimum 3 effects
2460. Journal is called a book of
A. True
A. primary entry
B. False
B. secondary entry
2455. One company buying (acquiring) > 50% C. final entry
of the shares of another company is
called D. none of the above
A. Merger 2461. ALL OF THE FOLLOWING SHOULD BE IN-

B. Consignment CLUDED IN INVENTORY, EXCEPT:
C. Acquisition A. MERCHANDIZE SENT OUT ON CON-

SIGNMENT
D. Consolidation
B. MERCHANDIZE SOLD IN TRANSIT FOB
2456. Arrange the sequence accounting cy- DESTINATION
cleA) AnalyzingB) RecordingC) Summariz- C. MERCHANDIZE PURCHASED IN TRAN-
ingD) InterpretingE) Classifying SIT FOB SHIPPING POINT
A. BCEDA D. MERCHANDIZE SOLD IN TRANSIT FOB
B. BECAD SHIPPING POINT

2462. How does the Conceptual Framework C. 630, 000

define an asset? D. 580, 000
A. A resource owned by an entity as a re-
2466. Sold goods worth Rs 1800 to Rustam,
sult of past events and from which future
for which Rustam paid Rs.1780 in full set-
economic benefits are expected to flow to
tlement, remaining amount will be consid-
the entity
ered as
B. A resource over which an entity has
A. Discount received
legal rights as a result of past events
NARAYAN CHANGDER
and from which economic benefits are ex- B. Discount allowed
pected to flow to the entity C. Bad debts
C. A resource controlled by an entity as D. None of the above
a result of past events and from which
future economic benefits are expected to 2467. What is the difference between cash ba-
flow to the entity sis and accrual basis accounting?
D. A resource to which an entity has a A. Cash basis records transactions when

future commitment as a result of past they occur, while accrual basis records
events and from which future economic transactions when they occur.
benefits are expected to flow from the en- B. Cash basis records transactions when
tity they occur, while accrual basis records
transactions when cash is exchanged.
2463. Person who owes money to the busi-
C. Cash basis records transactions when
ness
cash is exchanged, while accrual basis
A. Proprietor records transactions when cash is ex-
B. Bank changed.
C. Debtor D. Cash basis records transactions when
cash is exchanged, while accrual basis
D. Creditor
2464. Concept:The same accounting proce-
2468. Which branch of accounting is concerned
dures must be followed in the same way
with analyzing costs of products or ser-
each accounting period
vices rendered in a business?
A. accounting period A. Auditing
B. dual concept B. Cost accounting
C. consistency principle C. Financial Accounting
D. materiality D. Management Accounting
2465. Choose the correct option E. Tax Accounting
2469. Which of the following defines outstand-
ing salary account?
A. natural personal account
B. artificial personal account
A. 700, 000 C. representative personal account
B. 615, 000 D. real account

2470. Which is a business liability? A. True

A. Creditors B. False

B. Cash 2475. Statement of affairs is a
C. Building A. Statement of income and expenditure
D. Machinery B. Statement of assets and liabilities
C. Summary of cash transactions
2471. It is known in the balance sheet that the
Rent Expense account is IDR 4, 200, 000. D. Summary of credit transactions
The rental contract has been running since 2476. Outstanding Wages A/c is a Personal
October 1 2009 for a period of one year, Account
so the adjusting journal made on December
31 2009 is A. True
B. False
A. Rent paid in advance (D) Rp 3, 150,
000; Rent expense (K) Rp3.150.000 2477. The elements of faithful representation
B. Rent expense (D) IDR 1, 050, 000; Pre- are
paid rent (K) Rp. 1, 050, 000 A. completeness, neutrality and free
C. Rent expense (D) Rp 3, 150, 000; Rent from error
paid in advance (K) Rp3.150.000 B. predictive, confirmatory value and
cost
D. Prepaid rent (D) Rp. 1, 050, 000; Rent
expense (K) IDR 1, 050, 000 C. timeliness, understandability and neu-
tral
2472. When a company issues shares to the
D. comparability, verifiability and materi-
public for the first time, the issue is called
ality
as
A. FPO 2478. What is the minimum capital fixed in a
private company?
B. Offer for Sale
A. 1 lakh rupees
C. IPO
B. 3 lakh rupees
D. None of the Above C. 5 lakh rupees
2473. Determine the annuity of the deprecia- D. Zero
tion and the date v of an Aquise machine,
2479. Retained Earnings is a permanent ac-
05/07/2001 and the equation of the VCN
count, therefore, it is not closed during the
is (equal to the date
) v:VCN = 15x-
8 11 closing process.
x 12 + 10 + 12 = 75400
A. True
A. v:12/12/2013 Annuity:16, 800
B. False
B. v:12/12/2012 Annuity:16, 800
2480. How can the medical assistant help pre-
C. v:12/12/2012 Annuity:19, 500
vent collection problems?
D. v:12/12/2013 Annuity:19, 500
A. Mandate all payments at time of ser-
2474. The Income Statement reports a hospi- vice
tality organization’s performance over a B. Make payment arrangements before
period of time. the patient is allowed to see physician.

C. Inform the patient of the payment pol- C. 6 Months

icy at the first visit or call. D. None
D. Insist upon credit card payment.
2487. Non trading institution prepare
2481. How do you calculate Gross Profit? A. Profit and Loss account
A. Sales-COGS B. Manufacturing account
B. Sales-NP C. Receipts and payments account
NARAYAN CHANGDER
C. COGS-Expenses D. Income and expenditure account
D. COGS-NP 2488. Debits will increase asset balances
2482. Identify the type of expenditure. Trans- A. True
portation cost on materials for new ware- B. False
house
2489. You intended to buy a new clothes next
A. Capital week for $30? Is this amount is
B. Revenue A. an expense for you now?
2483. To increase the balance in the following B. it considered a decrease in your in-
accounts, would you debit the account or come now”
would you credit the account?Accounts Re- C. considered a revenue for the store you
ceivable intended to buy from
A. Debit D. not considered an an accounting trans-
action
B. Credit
2490. Collection of a $1, 500 Accounts Receiv-
2484. All cash transactions be it of revenue or
able
capital nature are to be recorded in Receipt
and Payment Account A. decreases an asset $1, 500; de-
creases a liability $1, 500.
A. False
B. decreases a liability $1, 500; increases
B. True owner’s equity $1, 500.
2485. The listing of all of the accounts avail- C. increases an asset $1, 500; decreases
able for use in a company’s accounting sys- a liability $1, 500.
tem is known as the D. increases an asset $1, 500; decreases
A. Chart of Accounts an asset $1, 500.
B. Journal 2491. Hello! My name is AB and I want to join
C. Ledger with you to do a specific business deal and
when the deal is over the business will end.
D. Credit Ledger What type of business venture I am talk-
ing about?
2486. For the year ending 31-3-2014 loan
taken on 1-7-2013, interest will be calcu- A. Partnership
lated for B. Sole Proprietorship
A. 9 Months C. Joint Venture
B. 12 Months D. Company

2492. Step 4 in the Accounting Cycle 2498. How is the balance on the provision for
A. Trial Balance depreciation of motors account shown in
the finalaccounts?

B. Source Documents
A. It is added to the current liabilities in
C. Closing Entries the Balance Sheet.
D. None of the Above B. It is deducted from the fixed assets in
the Balance Sheet.
2493. Trial balance is used to prepare
C. It is credited in the Profit and Loss Ac-
A. Control account count.
B. Bank statement D. It is debited in the Profit and Loss Ac-
C. Cash book count.
D. Trading, profit and loss account 2499. Income statement covers a period of
time
2494. which statement contains both income
and expenses? A. daily
B. weekly
A. statement of financial position
C. Year/Quarter/Month Ended
B. statement of profit or loss
C. statement of cash flow
D. statement of changes in equity 2500. Which of the following is an example of
a non-monetary incentive?
2495. Debt investments are initially recorded A. High markings on a performance re-
at: view
A. cost. B. Bonus
B. cost plus accrued interest. C. Increased pay
C. fair value. D. Commission
D. face value. 2501. Establishment expenses of a new ma-
2496. Prepaid insurance A/c is A/c chine will be debited in account
A. Expenses
A. Real
B. Machine
B. Personal
C. Profit & Loss
C. Nominal
D. None
2502. Which of the following items does the
2497. Information for each transaction statement below describe? “A possible
recorded in a journal is called obligation that arises from past events
A. accounting and whose existence will be confirmed
only by the occurrence or non-occurrence
B. entry
of one or more uncertain future events not
C. journal wholly within the entity’s control”
D. journalizing A. A provision

B. A current liability 2507. Companies that are created by special

C. A contingent liability acts of the Legislature are
D. A contingent asset A. Registered companies
2503. The development of accounting stan- B. Private companies

dards in Malaysia only began in the late C. Statutory companies
1960s, where most of the accounting stan-
D. Public companies
dards involved the adoption of the Interna-
NARAYAN CHANGDER
tional Accounting Standards (IAS). 2508. Thea area of accounting aimed at serv-
A. True ing external users by providing them with
B. False general-purpose financial statements.
A. Managerial Accounting
2504. In the documentary, All the Queens
Horses, Rita’s actions are considered eth- B. Recording
ical because she was maximizing her per- C. Accounting
sonal wealth.
D. Financial Accounting
A. True
B. False 2509. Partners can share profits or losses in
Explanation:Ethics is the study of what is their capital ratio, when there is no agree-
morally right or wrong. It is unethical to ment
steal money by abusing your position to
A. True
maximize your own personal wealth.
B. False
2505. On September 1, 2018, V Co. bought
merchandise inventory worth P14, 600 2510. Selling Expenses should be divided
from R Co., terms of 2/10, n/20. On among the departments on the basis of
September 6, 2018, the firm received a
A. Purchase
credit memorandum of P2, 400 for defec-
tive merchandise returned. On September B. Space occupied
8, the company made a partial payment of C. Sales
P3, 800. How much will V Co. pay to set-
tle its account on September 11, 2018? D. No of employees
A. P8, 180 2511. Common size analysis is also known as
B. P8, 400 analysis
C. P8, 156 A. Vertical Analysis
D. P8, 232 B. Horizontal Analysis
2506. Only what is measurable in terms of
2512. What is the transaction for the cash pay-
money will recorded in accounting is ex-
ment for rent?
plained by concept
A. Money Measurement A. Debit rent expense, credit cash
B. Accounting Cost B. debit cash, credit rent expense

C. Objectivity C. debit note payable, credit cash
D. Dual Aspect D. credit cash, debit note payable

2513. All the following are examples of per- 2518. Outline the principal of understandabil-
sonal account except ity, relevance, reliability and comparabil-
ity.

A. Equipment
B. Creditor A. Accounting Concepts
C. Debtor B. Financial Accounting

D. All of the above C. Qualitative Characteristics
2514. Making the provision for doubtful debts D. Financial Statements

and discount on debtors and valuation of
the stock at cost price or market price 2519. If a material event occurs after the re-
which ever is less follows the convention porting date but before the financial state-
of ments are authorised for issue outside the
organisation, and this event does NOT re-
A. Full disclosure quire adjustment, what information should
B. Materiality be disclosed in the financial statements?
C. Consistency A. The nature of the event and an esti-
mate of the financial effect (or a state-
D. Conservatism
ment that such an estimate cannot be
2515. The balance sheet reports which ac- made)
counts B. The nature of the event only
A. assets C. An estimate of the financial effect (or
B. liabilities a statement that such an estimate cannot
C. equity be made) only
D. all of the above D. No disclosure required
2516. outstanding expenses are to be shown 2520. Type of business enterprise that buys
at the side goods and sells them without any alter-
ation made on their state or condition.
A. assets
B. liabilities A. Manufacturing Business
C. none of these B. Sole Proprietorship

D. none of above C. Service Business
2517. Which of the following provides infor- D. Merchandising Business

mation about the financial information’s,
2521. A measure and summary of a hospital-
obligations and activities on the economic
ity business’s operating activities over a
entity that is intended for use primarily by
period of time.
external decision makers?
A. Financial accounting A. Balance Sheet
B. Management accounting B. Income Statement

C. Tax accounting C. Statement of Cash Flows
D. Environmental accounting D. None of the answers are correct

2522. During 2015, Rani sold goods costing 2526. Financial accounting reports include
$2, 000 to its subsidiary, Moly, at a gross A. profit and loss account
profit of 20%. Moly had none of this
inventory on hand at the end of 2015. B. directors report
Which of the following journal entry is C. balance sheet and auditors report
recorded by Rani in 2015? D. all of the above
2527. Mary has some snacks; she intends to
000
use the snacks to start her business opera-
NARAYAN CHANGDER
B. Dr. Inventories 2, 000Cr. Cash in Bank tion as Mary’s Snack shop. Which account-
2, 000 ing equation fits Mary’s business?
C. Dr. CoGS $2, 500Cr. Inventories $2, A. Assets = Liabilities
500 B. Assets = Capital + Liabilities
D. Dr. Cash in Bank $2, 500Cr. Invento- C. Assets = Capital
ries $2, 500
D. Liabilities = Assets
E. Dr. Cash in Bank $2, 400Cr. Sales $2,
400 2528. Recording of Transactions is
A. Book Keeping
2523. Which of the following are examples of
indirect costs? (There are THREE correct B. Journal entries
answers to select!) C. Final Accounts
A. Factory heat and light D. Cash Book entries
B. Factory manager salary 2529. Which financial statement displays the
C. Factory rent and rates revenues and expenses of a company for
a period of time?
D. Machine operator wages
2524. Assets are generally repossessed at ac-

tually agreed
A. Value
B. Current price
C. None of these
A. INCOME STATEMENT
D. none of above
B. BALANCE SHEET
2525. generate revenue at a local level. They C. CASH FLOW STATEMENT
provide funding for everything from parks,
to public safety services, to additional D. STATEMENT OF STOCKHOLDER’S EQU
funding for schools. 2530. On December 1 2018, Mr. Azra sold
A. Sales Taxes 10 sacks of rice Rp. 500, 000 to Mr. Hy-
mawan with conditions 2/15, n/60. The
B. Property Taxes
CORRECT journal is
C. Income Taxes
A. Accounts Receivable (D) and Supplies
D. All the above (K) amounting to IDR 500, 000

B. Accounts Receivable (D) and Sales (K) 2534. There are both and users.
amounting to IDR 500, 000 A. owners and friendly

C. Sales (K) and Accounts Receivable (K) B. internal and non external
C. internal and external
D. Sales (D) and Accounts Payable (K) D. non internal and external
2535. Which of the following statements is
2531. THE COST OF INVENTORY SHOULD NOT true of financial accountants?
INCLUDE
A. They help managers make business de-
A. PURCHASE PRICE cisions.
B. IMPORT DUTIES B. They are often managers or supervi-
sors.
C. ABNORMAL AMOUNT OF WASTED MA-
TERIALS C. They are required to follow rigid stan-
dards.
D. FIXED AND VARIABLE PRODUCTION
OVERHEAD D. They compile reports only as they are
needed.
2532. Mr. Nat has the following personal 2536. Minority interest includes
assets and liabilities:Cash 10, 000 baht,
bank deposit 5, 000 baht, car 200, 000 A. Share in share capital
baht, house 300, 000 baht, land 100, 000 B. Share in capital profit
baht, borrowed money from the bank 120, C. Share in revenue profit
000 baht. I would like to know how much
D. All of the above
total debt Mr. Nat has.
A. 615, 000 baht 2537. What columns of a company’s work
sheet are used to calculate a company’s
B. 735, 000 baht Net Income?
C. 495, 000 baht A. IS Credit (Revenue)-IS Debit (Ex-
D. 120, 000 baht penses)
B. IS Debit (Expenses)-IS Credit (Rev-
2533. Which statement below is incorrect re- enue)
garding cash basis revenue recognition?
C. BS Debit (Revenue)-IS Credit (Ex-
A. A company recognizes revenue only penses)
when it receives the associated cash with D. IS Credit (Revenue)-BS Debit (Ex-
the transaction. penses)
B. Cash basis accounting considers only
2538. Which of the following is the correct def-
cash received as a result of the earnings
inition of an adjusting event after the re-
process to be revenue.
porting period?
C. When a business borrows money, the
A. An event that occurs between the re-
cash it receives is a liability, not a revenue
porting date and the date on which the fi-
D. Under cash basis accounting, we rec- nancial statements are authorised for is-
ognize revenue only when we earn rev- sue that provides further evidence of con-
enues ditions that existed at the reporting date

B. An event that occurs between the re- inventory. Prepare journal entries on the
porting date and the date on which the fi- following dates:December 31, 20x1
nancial statements are authorised for is- A. Supplies expenses (D) 4500Supplies
sue that provides evidence of conditions (K) 4500
that arose subsequent to the reporting
date B. Supplies expenses (D) 4500Cash (K)
4500
C. An event that occurs after the date the
financial statements are authorised for is- C. Supplies expenses (D) 3300Supplies
NARAYAN CHANGDER
sue that provides further evidence of con- (K) 3300
ditions that existed at the reporting date D. Supplies expenses (D) 3300Cash (K)
D. An event that occurs after the date the 3300
financial statements are authorised for is- 2542. Salaries are hourly wages paid to em-
sue that provides evidence of conditions ployees
that arose subsequent to the reporting
date A. True
B. False
2539. Mr Mardi withdrew a note of IDR 3,
600, 000 with 60 day interest due July 2543. Debit balance of real account shows
5 2018, 15% interest. On May 21 2018, A. Liability
the money order was discounted to BCA at
B. Assests
a 20% discount. The amount of the note
discount is C. Profit
A. Rp 90.200 D. Income
B. Rp 92.250 2544. Unearned revenue is classified as
C. Rp 92.000 A. an asset account.
D. Rp 94.300 B. a revenue account.
2540. Which TWO of the following statements C. a contra-revenue account.
is correct D. a liability account
A. Deferred tax liability arises from tax-
2545. Contracts or government grants that
able temporary differences
give the owner special rights.
B. Deferred tax liability arises from de-
A. Patents
ductible temporary differences
B. Copyrights
C. Deferred tax liability arises when car-
rying amount of the asset exceeds its tax C. Trademarks
base D. Franchises and licenses
D. Deferred tax liability arises when car- 2546. The cash price or market price of the
rying amount of the asset less than its tax asset handed over or acquired, whichever
base is lower, to obtain natural resources and
2541. On December 1, 20x1, Entity B pur- prepare them according to the purpose of
chased $4, 500 supplies and recorded as owning the asset is called
an asset. On December 31, 20x1, Entity B A. Depletion of fixed assets of natural re-
checked supplies and found $1, 200 in the sources

B. Amortization of natural resource fixed 2551. Legacies are generally

assets A. Treated as income

C. Book value of natural resources B. Capitalized and taken to balance sheet
D. The acquisition price of a natural re- C. Treated as expenditure
source
D. Treated as Revenue and payments
E. Full purchase price
2552. Which of following best describes what
2547. Financial ratios that tell how much of an accounting department does for a busi-
each dollar of sales, assets, and owner’s ness?
investments resulted in net profit. A. Considers what new technology is best
A. liquidity ratios for the business at this time
B. efficiency ratios B. Delegates decisions to another depart-
ment to avoid being blamed for mistakes
C. profitability ratios
C. To determine the legality of hiring one
D. leverage ratios candidate over another
2548. Partners current accounts are opened D. To see whether the company can af-
when their capital accounts are: ford purchases
A. Fixed and Fluctuating both 2553. Financial Statement that shows final fi-
nancial position of the company as on the
B. Fixed
last day of the year is called
C. None of these A. Income Statement
D. Fluctuating B. Balance Sheet
2549. Financial accountancy is governed by C. Profit & Loss Account
D. Trading Account
A. local standards only 2554. Which account of the following will be
B. international standards credited on giving of goods in donation-
C. local as well as international account- A. Sales A/c
ing standards B. Purchases A/c
D. company’s internal top management C. Donation A/c
only
D. Cash A/c
2550. Pension funds and banks regularly in- 2555. Which of the following information is
vest in debt and stocksecurities to: obtained from a completed daysheet?
A. house excess cash until needed. A. Credit bureau accounts
B. generate earnings. B. Accounts receivable data
C. meet strategic goals. C. Annual gross income of a medical prac-
D. avoid a takeover by disgruntled in- tice
vestors. D. Amount in a petty cash fund

2556. Costs used to earn (generate) revenues. 2561. Accrual Concept implies accounting on
cash basis
A. Assets
A. True
B. Liabilities
B. False
C. Revenue
D. Expenses 2562. Under instalment payment system,
ownership of goods
2557. Behavioural is an observation of the ac-
A. Is transferred at the time of payment
NARAYAN CHANGDER
countants or the users of the informations
of last instalment
A. True
B. Is not transferred
B. False C. Is transferred at the time of signing
the contract
2558. Accounting is an information and mea-
surement system that does all the follow- D. None of the above
ing except:
2563. Which of the following business organi-
A. Records business activities zations has the word “Enterprise” at the
B. Identifies business activities end of its name?
C. Communicates business activities A. Partnership
D. Eliminates the need for interpreting fi- B. Public company
nancial data C. Private company
E. Helps people make better decisions D. Sole proprietorship
2559. Which type of asset has a non-physical 2564. An adjusting entry is not required for
form?
A. outstanding checks.
A. Master asset
B. NSF checks.
B. Tangible asset
C. bank service charges.
C. Informal asset
D. collection of a note by the bank.
D. Intangible asset
2565. Return inwards are
E. None of the above
A. goods returned to the supplier
2560. What are the different types of financial B. goods received from suppliers
ratios used in financial accounting?
C. good sold to customers
A. Debt ratios, equity ratios, and liability
ratios D. goods returned from customers
B. Cash ratios, inventory ratios, and re- 2566. CASH RECEIPTS FROM ROYALTIES AND
ceivables turnover ratios COMMISSIONS ARE:
C. Liquidity ratios, profitability ratios, sol- A. CASH FLOWS FROM OPERATING AC-
vency ratios, and efficiency ratios TIVITIES
D. Income ratios, expense ratios, and as- B. CASH FLOWS FROM INVESTING AC-
set ratios TIVITIES

C. CASH FLOWS FROM FINANCING AC- 2571. Which of the following is not an Internal
TIVITIES User of Financial Accounting

D. NOT REPORTED IN THE CASH FLOW A. Investors
STATEMENT B. Employees
2567. An expert says that the value of the C. Managers
management team of the company is D. none of above
worth well over a million dollars yet noth-
ing is entered for it in the books. What 2572. The journal entry for when prepaid in-
accounting concept is being applied? surance expires:
A. money measurement A. Debit Insurance ExpenseCredit Pre-
paid Insurance
B. materiality
B. Debit Prepaid InsuranceCredit Insur-
C. substance over form ance Expense
D. dual aspect C. Debit CashCredit Prepaid Insurance
2568. 25% of the Cost is D. Debit Prepaid InsuranceCredit Cash
A. 20% of Invoice 2573. What is known as a sole proprietorship,

partnership, corporation and a LLC?
B. 30% of Invoice
A. Business forms
C. 25% of Invoice
B. Business structures
C. Business Types
2569. Which of the following statements best D. none of above
defines a liability?
2574. The impact of technology on internal con-
A. A liability is an obligation arising from trols includes:
a past transaction or event.
A. Elimination of the need for regular au-
B. A liability is a legally binding amount dits
owed to a third party.
B. Elimination of fraud
C. A liability is an obligation arising from
C. Elimination of separation of duties
a past transaction or event which is ex-
pected to be settled by an outflow of eco- D. Reduced processing errors
nomic benefits.
2575. Each of the following items affect the
D. A liability is anything which results in cash balance per books except
an outflow of economic benefits from an
A. bank service charges.
entity
B. outstanding checks.
2570. Cash at bank is a C. NSF checks.
A. current asset D. notes collected by the bank.
B. current liability
2576. Below are the reasons why companies
C. none of these merge, EXCEPT
D. none of above A. Cost Efficiency

B. Time efficiency 2582. Art Inc. furnishes you with the follow-
C. Getting Loss ing list of accounts:
D. Acquire Rights over Assets
2577. The total compensation expense in a
share option plan is measured at
A. Fair value of share options on date of
grant
NARAYAN CHANGDER
B. Fair value of share options on date of
exercise A. 72, 000
C. Intrinsic value of share options on B. 66, 000
date of grant C. 62, 000
D. Intrinsic value of share options on the D. 46, 000
date of exercise
2583. The folio column is used for
2578. depreciation on plant and machinery will
A. date
be recorded in
A. trading account debit side B. type of transaction
B. balancesheet asset side C. value
C. profit and loss account debit side D. referencing
D. profit and loss account credit side 2584. Out of following items, which one is
shown in the Receipts and Payments Ac-
2579. Which of the following is a key process count?
in financial accounting?
A. Outstanding Salary
A. Sales order processing
B. Depreciation
B. Accounts receivable accounting
C. Life Membership Fees
C. Credit management
D. Accrued Subscription
D. Income verification
E. All of the above 2585. Which of these is not included as a sepa-
rate item in the basic accounting equation?
2580. Identify the type of expenditure. Legal
A. Assets
costs of collecting debts
B. Revenues
A. Capital
C. Liabilities
B. Revenue
D. Owner’s Equity
2581. A present obligation of an entity to
transfer an economic resource as a result 2586. Translate this account into Viet-
of past events is namese:“Output value added tax”
A. Asset A. Value added tax deducted
B. Liability B. Corporate income tax
C. Income C. Output VAT
D. Equity D. none of above

2587. Companies experiencing seasonal varia- B. Hire purchase trading account

tions in sales often choose a fiscal year cor- C. Purchase account
responding to their

D. Purchase return account
A. Natural business year
2593. When assets are acquired under Hire-
B. Interim year end
purchase system, depreciation need not be
C. Quarterly year end provided as the vendor still continues to be
D. None of the above the legal owner of such assets
A. True
2588. Which of the following is not recorded
in the Cash at Bank account but already B. False
recorded in the Bank Statement?
2594. A withdrawal of cash from business by
A. Unpresented cheque the proprietor is credited to
B. Direct payment A. Drawings A/c
C. Uncredited cheque B. Capital A/c
D. none of above C. Cash A/c
D. None of these
2589. A company receives $500 of cash as an
additional investment in the company by 2595. Concept:The same accounting proce-
its owner, Mary Smith. The company’s dures must be followed in the same way
Cash account is increased and Mary Smith, each accounting period
Capital is increased.Should the $500 entry
A. accounting period cycle
to Mary Smith, Capital be a debit?
B. objective evidence
A. yes
C. consistent reporting
B. no
D. materiality
2590. Income received in advance must be
treated as a liability 2596. tax charges will be paid on of the fol-
lowing month. And social charges must be
A. True paid on of the following month of the
B. False quarter.
2591. Yahoo, Inc. recognizes depreciation ex- A. 1628

pense for a machine over the 2-year pe- B. 3028
riod during which that machine helps the C. 2815
company earn revenue.
D. 2915
2597. who may need accounting information
B. Matching
to decide which products to buy from
C. Full Disclosure which companies:
D. Historical Cost A. Investors
2592. The cost of goods sold on hire purchase B. Creditors
is transferred to C. Customers
A. Sales account D. Company’s owner

2598. what is financial accounting? C. P&L Account

A. It is a process to record financial trans- D. P & L Appropriation Account
actions
2603. As per concept of conservatism, the Ac-
B. It is a process to record project execu- countant should provide for all possible
tion losses but should not anticipate profit.
C. It is a process to record the day to day A. True
activities in software project
B. False
NARAYAN CHANGDER
D. All of the above
2604. Which of the following is NOT a busi-
2599. Which of the following account is nomi- ness transaction?
nal account
A. making a sales offer
A. Accrued Interest Account B. receiving cash for services to be ren-
B. Interest account dered later
C. Outstanding Interest Account C. selling goods for cash
D. Prepaid Interest Account D. paying for supplies
2600. Invest Company owns 30 percent of Ali 2605. Explain the concept of double-entry ac-
Corporation. During the year, Ali had net counting.
earnings of $200, 000 and paid dividends A. Double-entry accounting only applies
of $18, 000. Invest mistakenly recorded to large corporations
these transactions using the cost method
B. Every transaction is recorded in only
rather than the equity method. What ef-
one account
fect would this have on the investment ac-
count, net earnings, and retained earnings, C. There is no need for both debit and
respectively? credit entries for each transaction
A. Understate, overstate, overstate D. Every transaction is recorded in at
least two accounts, with one debit and
B. Overstate, understate, understate
one credit entry.
C. Overstate, overstate, overstate
2606. Which of the following maybe used to
D. Understate, understate, understate calculate the cost of production?
2601. Income and Expenditure Account records A. Prime Cost + Factory Overheads-
transactions of: Opening work in Progress + Closing Work
A. Revenue nature only in Progress
B. Prime Cost-Factory Overheads-
B. Capital nature only
Opening Work in Progress +Closing Work
C. Both Revenue and Capital nature in Progress
D. None of the above C. Prime Cost + Factory Overheads-
opening work in Progress-closing work in
2602. Expenses which cannot be apportioned progress
to department must be shown in the
D. Prime Cost +Factory Overheads +
A. balance sheet. Opening Working Progress-Closing work
B. Trading account in progress

2607. Normative accounting theories and re- 2612. where did trial balance originate
search seek to
A. italy

A. Explain and predict particular phenom-
ena based on observation B. india
B. Prescribe particular approaches not C. russia
driven by existing practices D. america
C. Describe what is normal, or generally
accepted, practice 2613. The accounts of the acquired company
D. All of the given options are correct will be adjusted to the full fair value if
the parent company owns 100% of the
2608. Which type of business organization shares. However, if the company only pur-
consists of two or more individuals equally chases 80% share ownership, then the ac-
sharing in all aspects of the business oper- count will be adjusted to account for 80%
ations, including the splitting of profits and of the difference between book and fair
losses? value, called the
A. Sole-proprietorship A. Acquisition Method
B. Partnership
B. Purchase Method
C. Limited Liability Corporation
C. Unification Method
D. Corporation
D. Sales Method
2609. Double Entry System was started in the
year 2614. Under personal category, Debit means
A. 1944 A. the receiver
B. 1949
B. the giver
C. 1494
D. 1499 2615. What is the purpose of a General
Ledger?
2610. Which financial statement is directly af-
fected by the balance sheet equation? A. To record all cash and bank transac-
tions
A. Income statement
B. Cashflow statement
C. Statement of Retained Earninigs C. To record all purchase invoices
D. Balance Sheet statement D. To contain all impersonal accounts
2611. What is the purpose of a Cash Book? 2616. What type of agreement is used to form
A. To ensure the accuracy of entries in a a partnership business?
company’s bookkeeping system
A. Written agreement
B. To record all cash and bank transac-
tions B. Oral Agreement
C. To keep track of all sales and revenue C. Written or Oral Agreement

D. To contain all impersonal accounts D. No Agreement required

2617. Following the expansion of mp stock 2622. Assets can be classified into:
purchasing and sales operations, a com-
A. Current liability & Fixed Liability
pany has to settle 1/3 of its debts to sup-
pliers with treaties. What are the two B. Current assets & Fixed Liability
moving accounts. C. Fixed Liability & Non-Current Assets
A. 404 operating francs/ 405 operating D. Current & Fixed
francs e.a.p
B. 401 frs f’exploitation/ 403 frs 2623. a collection of accounts that shows the
NARAYAN CHANGDER
d’exploitation e.a.p changes made to each account as a result
of past transactions, and their current bal-
C. 404 frs d’immobilsation/532 banque ances.
D. 404/frs of immobilization/405 frs of A. Posting
immobilization e.a.p
B. T-Accounts
2618. When a partner leaves the firm with the C. Ledger
consent of other partners, it is called
D. Journalizing
A. Voluntary
B. Death 2624. The following is not part of the scope of
Plant Assets:
C. Retirement
A. Building
D. personal issues
B. Machine
2619. The IRS was created in what year? C. Land
A. 2000 D. Vehicle
B. 1913
2625. International Financial Reporting Stan-
C. 1933 dards (IFRS) developed by:
D. 1914 A. FASB
2620. The government agency that collects B. AICPA
taxes and enforces tax laws. C. IASB
A. Internal Revenue Service (IRS) D. SEC
B. Donald Trump’s Enforcement Agency
2626. Which of the following refers to a part-
C. International Revenue Service (IRS) nership business?
D. Internal Reporting Service (IRS) A. Limited liability
2621. Land lord account is B. Capital contributed by way of ordinary
share
A. Personal
C. Income from the business is not sub-
B. Real
ject to tax
C. Nominal
D. Profit or loss is divided among owners
D. none of above and members

2627. Production for addition (addition) aims A. P1, 240, 000

to
B. P1, 360, 000

A. Replacing some or all of the fixed asset
C. P1, 380, 000
components so that they function properly
D. P1, 800, 000
B. Returning fixed assets to their original
condition
2632. What are the two main financial state-
C. Increasing capacity or extending the ments drawn up by accountants?
life of fixed assets
A. The statement of profit or loss and the
D. Maintaining fixed assets functioning statement of debt position
normally in good condition
B. The statement of profit or loss and the
2628. An entity reported the following infor- statement of financial position
mation during the first year of operation: C. The statement of profit and the state-
ment of financial position
D. none of above
2633. In the case of cheques issued but not en-

A. 600, 000 cashed, the balance of the passbook will
B. 450, 000 be more than the balance of the bank ac-
count in books of accounts
C. 750, 000
A. True
D. 150, 000
B. False
2629. Who is the “Father of Accounting”?
A. Michael Angelo 2634. When an underwriter agrees to buy a
definite number of shares in addition to un-
B. Leonardo DaVinci
subscribed shares, it is termed as
C. Christopher Columbus
A. Firm underwriting
D. Luca Pacioli
B. Partial underwriting
2630. Total net profit+Total Expenses-Other C. Complete underwriting
income=
D. direct underwriting
A. Cost of sales
B. Gross profit/(loss) 2635. A machine was purchased on 1 January
2013 for $12 000. It has a working life of
C. Net sales
8 years when itwill be sold for $2000. De-
D. Purchase preciation is calculated using the straight
line method.What was the written down
value at 31 December 2013?
A. $10 000
B. $10 500
C. $10 750
D. $12 000

2636. Which is not considered a characteristics 2641. Del credere commission is allowed to
of a liability? cover:
A. A.Present obligation A. bad debt loss
B. B.Arises from past event B. normal loss
C. C.Results in an outflow of resources C. abnormal loss
D. D. both normal and abnormal loss
NARAYAN CHANGDER
2637. There are several ways to acquire fixed 2642. What are standing orders in a bank rec-
assets, which method below is the most onciliation statement?
profitable for the company?
A. Money given to a business from the
A. Cash or credit purchases profit made by a public limited liability
B. Purchase with long-term credit company
C. Fixed assets obtained from grants B. Mistakes made by both the bank and
the business
D. Self-built fixed assets
C. Deductions the bank will remove from
2638. If the creditors are willing to reduce the business bank account for the ser-
their claims against the company, then the vices rendered
amount of reduction in their claim will be
D. Instruction given by the business to
transferred to
pay a certain amount of money to a named
A. Share Capital A/C person at a regular interval
B. Capital Reduction A/C
2643. There are purchases of fixed assets in
C. Creditors A/C the form of land and buildings in cash. The
D. none of above market prices for land and buildings are
IDR 250, 000.00 and IDR 500, 000.00
2639. TYPES OF BANKS IN OUR INDIA respectively. The journal to record these
transactions is
A. PRIVATE
A. Land (D) Rp. 250, 000, 000.00; Build-
B. NATIONALIZED
ing(D) Rp. 500, 000, 000.00; Fixed assets
C. CO-OPERATIVE (K) Rp. 750, 000, 000.00
D. UNORGANIZED B. Land (D) Rp. 250, 000, 000.00; Build-
ing (D) Rp. 500, 000, 000.00; Cash (K) Rp.
2640. Which act was signed into law in 2010 750, 000, 000.00
to protect American taxpayers from “Too
Big To Fail” bailouts and to protect con- C. Office building (D) Rp. 750, 000,
sumers from abusive financial service prac- 000.00; Prize capital (K) IDR 750, 000,
tice? 000.00
A. Sarbanes-Oxley Act D. Building (D) Rp. 750, 000, 000.00;

Prize capital (K) Rp. 750, 000, 000.00
B. Dodd-Frank Wall Street Reform Act
E. Amortization expense (D) Rp. 750, 000,
C. Model Audit Act 000.00; Patent rights (K) Rp. 750, 000,
D. Government Accountability Act 000.00

2644. The discount which is allowed when pay- unearned revenues account for the amount
ment is received within a specified period charged to the customer.
is

A. True
A. Cash Discount B. False
B. Trade Discount
2650. Dependent branch make
C. Sale Discount
A. Only cash sales
D. None
B. only credit sales
2645. plant and machinery is a/c C. cash and credit sales.
A. real a/c D. installment sales.
B. expenses a/c 2651. The nature of financial accounting is
C. nominal a/c A. historical
D. asset a/c B. analytical
2646. A “new company” formed to take over C. social
the assets of another company is called D. forward looking
A. Merger
2652. The Sun Sdn Bhd has five plants nation-
B. Consignment wide that cost RM100 million. The current
C. acquisitions market value of the plants is RM500 mil-
lion. The plants will be recorded and re-
D. Consolidation
ported as assets at
2647. How is net profit after tax calculated? A. RM600 million
A. Profit before interest expense / inter- B. RM400 million
est expense = net profit for the year C. RM500 million
B. Profit before interest expense x inter- D. RM100 million
est expense = net profit for the year
C. Profit before interest expense + inter- 2653. How many Companies are listed on
est expense = net profit for the year NSE?
D. Profit before interest expense- A. More than 1000

interest expense = net profit for the year B. More than 1600
C. Less than 1600
2648. If you bought some fruits for $20 from
fruit store. is the $20 is D. Less than 1000
A. expense for you? 2654. Assets created by selling products or
B. is revenue for you? services on credit are:
C. expense for the store? A. Accounts payable
D. none of the above B. Accounts receivable
C. Liabilities
2649. When a company sells services for
which cash will not be received until some D. Expenses
future date, the company should credit an E. Equity

2655. Which of these non-current assets C. Closing the individual subsidiary’s rev-
should not be depreciated. enue and expense accounts into the par-
A. Furniture ent’s retained earnings.
D. Combining the accounts of separate
B. Land
companies, creating a single set of finan-
C. Vehicle cial statements
D. Building
2660. Alicia Keyes Company began the year
NARAYAN CHANGDER
2656. What is the depreciation expense for with owner’s equity of $280, 000. Dur-
loose tools? ing the year, the company recorded rev-
enues of $375, 000, expenses of $265,
A. £910 000, and had owner drawings of $30,
B. £1, 000 000. What was Alicia Keyes’ owner’s eq-
uity at the end of the year?
C. £1, 100
A. $420, 000.
D. £800
B. $390, 000.
2657. Opening stock is C. $360, 000.
A. Credited in trading account D. $280, 000.
B. Debited in trading account
2661. True or False:A company experiencing
C. Debited in profit and loss account a Net Income (more revenue than ex-
D. Credited in profit and loss account penses) will also experience an increase to
Owner’s Equity.
2658. Gross sales total $300, 000, one-half
A. True
of which were credit sales. Sales returns
and allowances of $15, 000 apply to the B. False
credit sales, sales discounts of 2 percent
were taken on all of the net credit sales, 2662. Insurance that has not expired is 5
and credit card sales of $100, 000 were times that has expired, insurance that
subject to a credit card discount of 3 per- has expired is Rp500.000. In Trial Bal-
cent. What is the dollar amount of net ance there is an Insurance Expense account
sales? Rp6.000.000
A. Prepaid Insurance (D) Rp2.500.000 In-
A. $227, 000
surance Expense (K) Rp2.500.000
B. $229, 800
B. Insurance Expense (D) Rp500.000 Pre-
C. $279, 300 paid Insurance (K) Rp500.000
D. $240, 000 C. Prepaid Insurance (D) Rp3.500.000 In-
surance Expense (K) Rp3.500.000
2659. The consolidation process consists of all
the following except: D. Insurance Expense (D) Rp2.500.000
Prepaid Insurance (K) Rp2.500.000
A. Combining the financial statements of
two or more legally separate companies. 2663. Which of these is not an example of a
B. Eliminating intercompany transactions Factory Overhead?
and holdings. A. Depreciation of factory Machinery

B. Factory Rates 2669. NON ADJUSTING EVENTS AFTER RE-

C. Factory Insurance PORTING PERIOD INCLUDE ALL OF THE
FOLLOWING, EXCEPT

D. Depreciation of office machinery
A. ISSUE OF ORDINARY SHARES AFTER
2664. The agency responsible for setting inter- THE REPORTING PERIOD
national financial reporting standards.
B. MAJOR PURCHASE OF AN ASSET AF-
A. Financial Accounting Standard Board TER THE REPORTING PERIOD
(FASB)
C. BANKCRUPTCY OF A CUSTOMER AF-
B. International Accounting Standard TER REPORTING PERIOD
Board (IASB)
D. PLAN TO DISCONTINUE AN OPERA-
C. Federation of Accounting Profession
TION AFTER THE REPORTING PERIOD
D. American Accounting Association
2670. Realisation account is opened at the
2665. A business has net sales of $100 000, time of dissolution of the partnership firm.
cost of sales of $60, 000 and other oper-
ating expenses of $40 000. What is the A. True
gross profit of the business? B. False
A. 20 000
2671. underwritting commission is debited to
B. 40 000
C. 60 000
A. underwritting commission A/c
D. 0
B. Underwriter’s a/c
2666. According to traditional classification of C. share allotment a/c
accounts, the type of consignment account
is: D. profit and loss a/c
A. nominal 2672. Which of the following elements of a
B. real manufacturing account matches the defini-
C. personal tion below:The wages of those workers
actually engaged in the manufacturing pro-
D. valuation cess (e.g. wages of a sewing machine op-
2667. Double entry of cash sales erator)
A. Dr. CashCr. Sales A. Direct materials
B. Dr. SalesCr. Cash B. Direct wages
C. Dr. BankCr. Sales C. Indirect wages
D. Dr. SalesCr. Bank D. Profit on manufacture
2668. Which of the following is NOT part of 2673. When a business has two different
the fraud triangle? sources of revenue, a separate income
A. Opportunity statement should be prepared for each
B. Nature kind of revenue.
C. Rationalization A. True
D. Pressure B. False

2674. Debit = Expenses, Assets, Draw- 2679. The lessor should report the underlying
ingCredit = Owner’s Equity, In- asset under an operating lease and income
come/Revenue, Liabilities Acronym for therefrom as which of the following?
?
A.
A. Accounting
B. DEAD COIL B.
C. COIL DEAD
NARAYAN CHANGDER
D. What? C.
2675. What are capital goods or capital in eco-

nomics? D.
A. Future sacrifices of economic benefits 2680. What should be referenced in follow-
that a business owes to other entities ing the correct and widely accepted proce-
B. Durable produced goods used as pro- dures and standards?
ductive inputs A. FHA
C. Resources owned or controlled by a
B. FOIA
business
C. GAAP
D. The total amount of income generated
by the sale of goods and services D. IRS
2676. R.E.I.D is the acronym to help you re- 2681. On January 2 2017, PT. Jaya Sakti
member which accounts are closed during obtained patent rights for its products
the closing process. through research and development and
A. True registered its products with the Patent Of-
fice. After that PT. Jaya Sakti makes a
B. False deed of establishment until the establish-
ment is approved by the authorities. Of
2677. A journal in which transactions are first
the total costs, which is included in the ac-
recorded is:
quisition cost?
A. A book of original entry
A. Development costs
B. A ledger
B. Trial fee
C. A book of final entry
C. Patent tax
D. A revenue account
D. Legal fees
E. The cash ledger
E. Patent registration
2678. According to GAAP, what ratio must be
reported on the financial statements in the 2682. Which of this column is not included in
notes to the statements? trial balance?
A. Earnings per share ratio A. Folio
B. Return on equity ratio B. Particulars
C. Net profit margin ratio C. Debit side
D. Current ratio D. Credit side

2683. In reference to the determination of A. materiality concept

goodwill impairment, which of the follow- B. matching concept
ing statements is correct?

C. historic cost concept
A. The goodwill impairment test under
D. principle of full disclosure
FASB 142 is a three-step process.
B. If the reporting unit’s fair value ex- 2688. What is the scope of financial account-
ceeds its carrying value, goodwill is unim- ing?
paired. A. Narrow, focusing on specific depart-
C. Under FASB 142, firms must first comments and cost centers
pare carrying values (book values) at the B. Broad, consolidating results of all busi-
firm level. ness units
D. All of the above are correct. C. Limited to financial information only
2684. When accounting for a business combi- D. No specific scope

nation a contingent liability is recognised 2689. What is the correct formula for straight
if: line method
A. it is a present obligation that has failed A. Cost-Residual value
to meet the recognition criteria.
B. Cost-Residual value/ Carrying amount
B. it is a possible obligation and it is prob-
C. Cost-Accumulated depreciation
able that it will occur.
D. Cost-Residual value/ Useful life of the
C. its fair value can be measured reliably.
asset.
D. it is probable that an outflow of re-
sources may occur in order to settle the 2690. What is a liability?
obligation. A. describes what an organization has in-
vested in
2685. When does a credit take place?
B. describes non-owner financing
A. When assets and expenses decrease
C. describes owner financing
B. When assets and expenses increase
D. describes the success of the business
C. When revenue and liabilities decrease
2691. All of the following are internal users of
D. When revenue and liabilities increase accounting information except:
2686. Prepaid expense is deducted from A. Owners
and it is treated as B. Employees
A. Asset, Liability C. Supplier
B. Income, asset D. Manager
C. Expenses, asset
2692. Transactions and events that cannot be
D. Expenses, income measured in money terms are not recorded
in the books of accounts. It is due to
2687. The cost of a small calculator is ac- Money Measurement Concept.
counted as an expense and not shown as
an asset in financial statement of a busi- A. True
ness entity due to B. False

2693. The responsibility for staffing the or- 2698. Balance sheet is an example of
ganisation for public sector is under the A. Classifying
purview of
B. Summarizing
A. Public Service Department
C. Recording
B. Ministry of Finance
D. Interpreting
C. Malaysian Administration Modernisa-
tion Planning Unit 2699. contingent liablities will be recorded in
NARAYAN CHANGDER
D. Ministry of Transport
A. balancesheet asset
2694. Guidelines that accountants consistently B. trading account
use to prepare financial statements, mak-
C. balancesheet liablities
ing multiple statements comparable to one
another. D. profit and loss account
A. Generally Accepted Accounting Princi- 2700. The formula for calculating the net in-
ples (GAAP) come ratio is:
B. Generally Applied Accounting Princi-
A. net income divided by total sales.
ples (GAAP)
B. total sales divided by total expenses.
C. Generally Accepted and Applied Ac-
counting Principles (GAAAAP) C. total sales minus total expenses di-
vided by net income.
D. General Accounting Principles (GAP)
D. none of these.
2695. Accruing Uncollected Revenue What
would be the effect on assets? 2701. which of the following is current asset
A. Assets would increase A. land and building
B. Assets would decrease B. machinery
C. Assets would remain unchanged C. cash
D. None of the above D. furniture
2696. The process of identifying, classify-
2702. Raju edition gaya source noodles
ing, recording and communicating business
transaction is called A. Yes
A. Accounting B. No
B. Bookkeeping C. Both
C. Double entry D. None of the above
D. Accountancy
2703. Which of the following errors that can-
2697. Capital Account is not be revealed by a Trial Balance-
A. Personal Account A. Errors of original entry
B. Real Account B. Errors in calculation
C. Nominal Account C. Errors in omission of one entry
D. Impersonal Account D. Transposed errors

2704. Dividing related operations among two B. To explore opportunity through cost
or more employees. optimization.

A. Monitoring C. To analyze and improve internal and
B. Separating responsibilities external cost driver.
C. Competent personnel, rotating duties, D. I think all answers are correct.

mandatory vacations
D. risk assessment low:Inventory unsold at the end of an ac-
counting period. This will also appear as a
2705. Amounts owing to persons or other or-
current asset in the Statement of Financial
ganizations is known as
Position.
A. Capital
A. Closing inventory
B. Liability
B. Opening inventory
C. Assets
C. Purchases
D. Creditors
D. Carriage out
2706. The Hire-purchase Act, 1972 was to
come into force on 2710. Cash consists of
A. 31st Dec, 1972 A. certificates of deposit
B. 1st Jan, 1973 B. IOUs
C. 1st Sep, 1973 C. Postage stamps
D. None of the above D. coins, currency, chequing accounts
2707. Accounting information that has been and certificates of deposit
measured and reported in a similar man- E. coins, currency, and chequing ac-
ner for different enterprises is considered counts
A. understandable 2711. Debt may be of types
B. reliable A. 3
C. comparable B. 2
D. relevant C. 5
D. None
2708. What is/are the importance(s) of cost
management?
2712. Which type of asset has a physical
form?
A. Master asset
B. Tangible asset
C. Informal asset
D. Intangible asset
A. To improve overall business profitabil-
ity. E. None of the above

2713. Who is consider the ‘Father of Account- C. profit & loss and balance sheet
ing’? D. fund flow statement
A. Luca Pacioli
2719. On Jul 1, 2019, Catt acquires 100% of
B. John Pacioli Tom for $150, 000. On this date, Tom
C. J. Betty had assets of $100, 000. Assume the
book value and fair value of Tom’s net as-
D. none of above
sets were equal at the acquisition date.
What is the elimination journal when Par-
NARAYAN CHANGDER
2714. What are the primary ways in which an
asset can be acquired? ent making the consolidation?
A. Internally by production A. Dr. Cash in Bank $150, 000Cr. Invest-
ment in Tom $150, 000
B. Internally by inventory tracking
B. Dr. Investment in Tom $100, 000Cr.
C. Externally by vendor
D. Externally without a vendor C. Dr. Capital Stock $150, 000Cr. Invest-
E. By asset liquidation ment in Tom $150, 000
2715. The formula to show the amount of tan- D. Dr. Investment in Tom $100, 000Cr.
gible fixed assets used to guarantee each Capital Stock $100, 000
rupiah of long-term liabilities is E. Dr. Capital Stock $100, 000Cr. Invest-
A. assets − − ment in Tom $100, 000
B. assets − − 2720. Which of the following statements is

not correct?
C. assets − −
A. Profits increase capital
D. assets − −
B. losses reduce capital
2716. Local tax
C. drawings reduce capital
A. Vehicle tax D. drawings increase capital
B. Income tax
2721. Occurs when one company takes over
C. Property taxes all of the operations of another business
D. value-added tax entity and that other entity is dissolved.
(A+B=A) is called
2717. Journal Entry for when supplies are
used up: A. Merger
B. Consignment
A. Debit SuppliesCredit Supplies Expense
C. Consolidation
B. Debit CashCredit Supplies
D. Stock Acquisition
C. Debit Supplies ExpenseCredit Supplies
D. Debit SuppliesCredit Cash 2722. An unrealized loss on available-for-sale
securities is:
2718. What are the principal statements of Fi- A. reported under Other Expenses and
nancial Accounting? Losses in theincome statement.
A. profit & loss statement B. closed-out at the end of the accounting
B. balance sheet period.

C. reported as a separate component of D. CASH SURRENDER VALUE

stockholders’equity.
2727. If the proceeds from the sale of fixed as-

D. deducted from the cost of the invest- sets are valued at IDR 190, 000, 000 and
ment. the book value of the assets is 175, 000,
2723. Which of the following items are shown 000 then the company experiences
in the assets side of the balance sheet? A. Two 25.000.000
A. Machinery B. Two 15.000.000
B. Cash in hand C. Loss 15, 000, 000
C. Bank Overdraft D. Loss 25, 000, 000
D. Buildings E. Two 2.500.000
2724. Below are the forms of business entity 2728. If the gross profit is 25% of the cost of
merger based on the type of business be- sales and the sales are Rs 2, 50, 000 then
ing joined, EXCEPT calculate the gross profit-
A. Horizontal Merger A. Rs. 62, 500-
B. Vertical Merger B. Rs. 5, 000-
C. Conglomerate Merger C. Rs. 50, 000-
D. Business Merger D. Rs. 10, 000-
2725. Which of the following is THE BEST 2729. All of the following are Source Docu-
statement to indicate the role of accoun- ments EXCEPT
tant in society: A. Petty Cashbook Voucher
A. A. Society could freely ask accountant B. Cheque
to protect their interest even though such
C. Credit Note
situation will result in non-compliance
with the statutory requirements of finan- D. Returns Journal
cial reporting.
2730. Paired accounting recording system
B. A. Accountant has priority to maximize
A. Single Entry
the company profit rather than upholding
the professional ethical standard. B. Double Entry
C. A. Accountants need to uphold profes- C. Triple Entry
sional ethical standard in providing the fi- D. Journal Entry
nancial information so as the public inter-
est will be protected. 2731. Professionals/ Businessmen need ac-
counting because
A. Projects are complicated and account-
2726. WHICH OF THE FOLLOWING SHOULD ing helps them to keep track
BE CLASSIFIED AS CURRENT ASSET? B. Projects will become directionless if
A. INVESTMENT PROPERTY there is no accounting
B. PROPERTY PLANT AND EQUIPMENT C. Projects consume resources and ac-
C. FINANCIAL ASSET HELD FOR TRAD- counting helps them to keep track
ING D. All of the above

2732. Assets = Liabilities + Owner’s Equity C. Rent Expenses (D) 3.600Cash (K) 3.600
A. Income Statement D. Prepaid Rent (D) 36.000Cash (K)
B. Statement of Retained Earnings 36.000
C. Statement of Cash Flows 2738. The effect of opening entry is the open-
D. Balance Sheet ing of
A. Personal Accounts & Real Accounts
2733. What is the role of Bank Negara ‘Cen-
B. Personal Accounts and Nominal Ac-
NARAYAN CHANGDER
tral Bank’?
counts
A. Issue accounting standards
C. Nominal Accounts & Real Accounts
B. Promote monetory and financial stabil-
ity D. Personal, Real & Nominal Accounts
C. Facilitate development of an innova- 2739. In the year ended May 31, 2017, Hanne
tive capital market Co. purchased non-current assets with a
D. none of above cost of P140, 000, financing them partly
with a new loan of P120, 000. Hanne Co.
2734. Accounting information is only relevant also disposed of non-current assets with
for people in business. a carrying value of P50, 000 making a
A. True loss of P3, 000. Cash of P18, 000 was
received from the disposal of investments
B. False during the year. What amount should be
2735. A business organized under the laws of Hanne Co.’s net cash flow from investing
the company as a separate legal entity. activities according to PAS 7 Statement of
Cash Flows?
A. Partnership
A. 45, 000
B. Company
B. 75, 000
C. Enterprise
C. 69, 000
D. Sole Trader
D. 48, 000
2736. Which is an asset?
2740. Discount is from the original price.
A. Assets
A. added
B. Liability
B. subtracted
C. Owner’s equity
D. Non-Current Liabilities 2741. On Jan 1, 2017, Roy acquires 100% of
Liz for $200, 000. Assume the book value
2737. On September 1, 2011, Entity A en- and fair value of Liz’s net assets were 180,
tered into an agreement to rent office 000 and 210, 000, respectively. What is
space for a year and paid $36, 000 for a the record by Roy when acquiring Liz?
six-month rent. Prepare journal entries on A. Dr. Investment in Liz $210, 000Cr.
the following dates:September 1, 2011 Gain on bargain purchase $10, 000Cr.
A. Prepaid Rent (D) 3.600Cash (K)3 3.600 Cash in bank $200, 000
B. Rent Expenses (D) 36.000Cash (K) B. Dr. Investment in Liz $200, 000Cr.
36.000 Cash in bank $200, 000

C. Dr. Investment in Liz $220, 000Cr. A. Rp 20.000.000, 00

Gain on bargain purchase $20, 000Cr. B. Rp 18.000.000, 00

C. Rp 16.000.000, 00
D. Dr. Investment in Liz $180, 000Cr.
Cash in bank $180, 000 D. Rp 14.000.000, 00
E. Dr. Investment in Jul $210, 000Cr. E. Rp 12.000.000, 00
2746. To which account is the balance left af-
2742. Choose the correct option ter writing off capital losses from capital
gains on re-issue of seized shares trans-
ferred?
A. Share Capital A/c
B. Share Premium A/c
C. Share Forfeited A/c
D. Capital Reserve A/c
A. P1, 100 loss
2747. What is the correct formula for reducing
B. P1, 020 loss balance method of depreciation
C. P 900 gain A. Cost-Accumulated depreciation
D. P 120 loss B. Cost X Depreciation %
2743. Upon the dissolution of a partnership C. Carrying amount X Dep %
business, the party to be settled first out D. Cost-Depreciation charge X Dep %
the proceeds realised is
A. unsecured creditors 2748. Which accounting concept or principle
states that the transactions of a business
B. partners’ loan and advances must be recorded separately from those of
C. secured creditor its owners or other businesses?
D. partners’ capital A. materiality concept
B. economic entity concept
2744. Which of the following account will
be credited, if business bought goods on C. matching principle
credit from Mr. Z D. time period concept
A. Purchases A/c
2749. Depreciation is non-cash and non-
B. Sales Account operating expense which is to be provided
C. Cash Account for if there are profits.
D. Mr. Z A. True
B. False
2745. A patent has an acquisition price of IDR
20, 000, 000.00, an economic life of 10 2750. is a book that combines cash, bank
years. The trial balance as of December and discount accounts into a single book
31 2016 shows a balance of IDR 16, 000,
000.00. The size of the patent account af- A. Bank statement
ter adjustment is B. Three column cash book

C. Petty cash book 2756. The Owner’s Equity section of a balance

D. Trial balance sheet may report different kinds of details
about owner’s equity, depending on the
2751. The use of a transfer price enables a need of the business.
factory to make additional profit which is
A. True
added into the profit for the year in the
income statement B. False
A. TRUE 2757. A coin machine costing Php 200, 000
NARAYAN CHANGDER
B. FALSE has a salvage value of Php 20, 000
at the end of its economic life of five
2752. IT IS THE COST OF AN ASSET OR AN years. Determine the annual reserve for
AMOUNT SUBSTITUTED FOR COST LESS depreciation for the third year only. The
RESIDUAL VALUE: schedule of production per year is as fol-
A. FAIR VALUE lows:CLUE:Depreciation per unit = (FC-SV)
B. CARRYING AMOUNT / Total number of coins
C. HISTORICAL COST
D. DEPRECIABLE AMOUNT
2753. The unification of two or more separate
companies into one economic entity, due to
one company merging with another com- A. 100.000
pany or gaining control over the assets
B. 80.000
and operations of another company is
C. 36.000
A. Business merger
D. 25.000
B. Consolidation
C. Regulations 2758. Which of the following events between
D. Consignment the reporting date and the date the finan-
cial statements are authorised for issue
2754. Cash is a must be adjusted in the financial state-
A. Real A/c ments? 1 Declaration of equity divi-
dends2 Decline in market value of invest-
B. Nominal A/c
ments3 The announcement of changes in
C. Personal A/c tax rates4 The announcement of a major
D. Income restructuring
2755. What is the purpose of an internal con- A. 1 only

trol system? B. 2 and 4
A. To protect cash accounts from theft C. 3 only
B. To help managers make wise business D. None of them
decisions
2759. A journal used to record only one kind
C. To record transactions as they are
of transaction is called
completed
D. To make sure that accounting informa- A. general journal
tion is accurate B. general ledger

C. special journal C. Assets and Expenses

D. accounts payable journal D. Liabilities and Expenses

2760. The Malaysian Accounting Standard 2764. Salaries and Wages Appear in
Board (MASB)’s standards setting process
is similar to that of the developed coun- A. Trading Account
tries, for example, Australia, Singapore, B. Balance Sheet
Canada, New Zealand, United Kingdom,
United States, and the International Ac- C. Profit and Loss Account
counting Standards Board (IASB). There- D. None
fore, the standards setting process is con-
sistent with other international accounting 2765. Which one is correct?
standards boards.
A. True
B. False
2761. Goods which were sold on credit are re-

turned by the customer as unsatisfactory.
This is recorded in the accounts as:
A. Dr Sales returns account Cr Trade re-
A. Asset = Owner’s equity + Liability
ceivable
B. Dr Purchase returns Cr Trade receiv- B. Asset = Owner’s equity-Liability
able C. Asset + Owner’s equity = Liability
C. Dr Trade payable Cr Purchase returns D. Asset + Owner’s equity = expense
D. Dr Trade receivable Cr Sale returns
2766. If the company is interest due on
2762. Which of the following is a correct jour- debentures shall be paid up to the date of
nal entry for the purchase of inventory on actual payment.
credit?
A. Insolvent
A. Debit Inventory, Credit Accounts
Payable B. Solvent
B. Debit Accounts Payable, Credit Inven- C. Bankrupt
tory D. none of above
C. Debit Cash, Credit Accounts Receiv-
able 2767. When a company tries to design and
produce products or services that serve
D. Debit Accounts Receivable, Credit
unique market needs, allowing it to charge
Cash
higher prices, such as Nike or BMW.
2763. Which of the following accounts cate- A. Accounting Cycle
gory with normal balance are shown at the
debit side of a trial balance? B. Low-cost strategy
A. Assets and Income C. Premium-price strategy
B. Liabilities and Income D. Retained Earnings

2768. You want to know the cost of goods 2774. What is the purpose of a Sales Ledger?
sold by the business in a particular period. A. To record all cash and bank transac-
What is the financial statement that you tions
need to check?
A. Income Statement
C. To record all purchase invoices
B. Balance Sheet D. To contain all impersonal accounts
2775. To decrease the balance in the follow-
NARAYAN CHANGDER
D. Statement of Owner’s Equity ing accounts, would you debit the account
or would you credit the account?Unearned
2769. Net Profit is reflected in higher cash bal- Revenue
ances and net loss is reflected in lower net
A. Debit
worth.
B. Credit
A. True
2776. The accrual basis of accounting records
B. False
revenues when they are:
2770. Profit is equal to:
A. Income minus expenses
B. Receipts minus expenditures
C. Inflows minus outflows
D. Revenue minus expenses A. COLLECTED
2771. Entries made on the first day of a new B. EARNED
period that switch the debits and credits C. CONTRACTED
of the adjusting entries made on the last D. READILY AVAILABLE FOR USE
day of the previous period.
2777. The person or firm that sells its business
A. Adjusting Entries
to another firm or company is referred to
B. Reversing Entries as
C. Income Entries A. goodwill
D. Balance Sheet Adjusting B. capital reserve
C. vendor
2772. Which of the following is correct?
D. purchase consideration
A. Assets = Capital-Liabilities
2778. , Mr. Haidar sold a teak wood cupboard
B. Assets = Capital + Liabilities to Mrs. Yeni for Rp. 15, 000, 000 with
conditions 2/10, n/60. However, when
2773. Which one is not a current liability? Mrs. Yeni’s trade receivables were ap-
A. Trade payables proaching maturity, they were replaced by
money orders. So the receivables transfer
B. Overdraft
journal is
C. Long term loan
A. Notes Receivable (D) and Accounts Re-
D. Short term loan ceivable (K) amounting to IDR 15, 000, 000

B. Notes Receivable (D) and Accounts Re- 2783. Accrued expenses are expenses that
ceivable (D) amounting to IDR 15, 000, have been incurred but not yet been
000 recorded.

C. Notes Receivable (K) and Trade Receiv- A. True
ables (K) amounting to IDR 15, 000, 000 B. False
D. Notes Receivable (K) and Accounts Re-
ceivable (D) amounting to IDR 15, 000, 2784. The amount of net income calculated on
000 an income statement is correct if:
A. it is the same as the net income shown
2779. What type of an account is cash? on the work sheet.
A. ASSET B. debits equal credits.
B. LIABILITIES C. it is the same as the net income shown
C. OWNER’S EQUITY on the balance sheet.
D. none of above D. none of these.
2780. What is the main purpose of financial 2785. Principle requiring that the same ac-
accounting counting methods and format of state-
A. organize Financial information ments should be used over time so they
can be compared.
B. minimize the company taxes
A. Principle of Permanance of Methods
C. keep track of company expenses
B. Principle of Sincerity
D. provide useful financial information to
outsiders C. Principle of Regularity
D. Principle of Consistency
2781. An economic transaction or event that
affects an entity’s assets, liability, equity, 2786. The equity method of accounting for
income or expense is long-term investments in stock should be
A. recorded in the books of accounts. used when the investor has significant in-
fluence over an investee and owns:
B. posted in the ledger.
A. between 20% and 50% of the in-
C. an accountable event.
vestee’s common stock.
D. all of these
B. 20% or more of the investee’s common
2782. The main purpose of adjusting entries is stock.
to: C. more than 50% of the investee’s com-
A. Record external transactions and mon stock.
events D. less than 20% of the investee’s com-
B. Record internal transactions and mon stock.
events
2787. A fixed asset costing $5000 is depre-
C. Recognize revenues received during ciated at the rate of 20 % per annum us-
the period ing thediminishing balance method.What is
D. Recognize expenses paid during the the total amount of depreciation for the
period first two years?
E. Adjust assets to their market value A. $1000

B. $1200 2793. Assets are usually reported on the bal-

ance sheet at which amount?
C. $1800
A. Cost
D. $2000
B. Current Market Value
2788. On a break-even chart, what line does C. Expected Selling Price
the total revenue line meet at the break-
D. None of These
even point?
NARAYAN CHANGDER
A. The fixed cost line 2794. Factors that do not affect deprecia-
tion/shrinkage are
B. The variable cost line
A. Cost of fixed assets
C. The total cost line
B. Economic life of fixed assets
D. Semi variable cost line
C. Residual value
2789. Subdivision of account is D. Depreciation Method
A. Machinery E. Supplier
B. Capital account 2795. In accounting/bookkeeping, the term
posting refers to
C. Purchase account
A. transfer of information from ledger to
D. Cash account
trial balance
2790. Purchasing supplies on credit increases B. transfer of entries from journal to
assets while decreasing liabilities. ledger
A. True C. preparation of financial statements
from trial balance
B. False
2791. Which one of the following factors plays
2796. A company received interest of $8800
the most important role in the location of
during the financial year. Interest of $700
an industry in a particular region?
was due at the beginning of the year and
A. Raw material $850 at the end of the year.Which entry
appeared in the interest received account
B. Market
to make the transfer to the income state-
C. Least production cost ment?
D. Transport A. $8650 credit
B. $8650 debit
2792. In merchandising operation using per-
petual systems, when a person purchases C. $8950 credit
goods or services, we can write it as D. $8950 debit
A. supplies(cr) cash / account payable 2797. It is known that the Unearned Rent
B. supplies(cr) account receivable value is Rp. 6, 000, 000 in the trial bal-
ance on December 31 2020. It is known
C. inventory (cr) cash / account payable
that the rental income that has been re-
D. purchases(cr) supplies ceived for 1 year’s rent starting from

November 1 2020. The adjusting entry at 2800. What is the primary purpose of book-
the end of December 2020 is keeping?

A. Unearned Rent (D); Rent Revenue (K) A. To prepare financial statements
Rp. 1.000.000
B. To analyze financial data
B. Rent Revenue (D); Unearned Rent (K)
Rp. 1.000.000 C. To record and organize financial trans-
actions
C. Unearned Rent (D); Rent Revenue (K)
Rp. 6.000.000 D. To conduct financial audits
D. Rent Revenue (D); Unearned Rent (K) 2801. Includes the collection, determination,
Rp. 6.000.000 allocation, assessment, interpretation,
2798. The prepaid advertising account was and control of cost data, particularly the
recorded on November 1, 2020, amount- cost of production in a manufacturing con-
ing to Rp. 1, 200, 000, for 10 broadcasts. cern
As of December 31 2020, advertisements A. Tax Accounting
have not been broadcast 4 times. The cor-
B. Cost Accounting
rect adjustment entry for advertisements
that have been broadcast is C. Accounting Education
A. Advertising Expense (D); Prepaid Ad- D. Financial Accounting
vertising (K) Rp. 480, 000
B. Advertising Expense (D); Prepaid Ad- 2802. capital + liability =
vertising (K) Rp. 720, 000 A. total assets
C. Advertising Expense (D); Prepaid Ad- B. losses
vertising (K) Rp. 1, 000, 000
C. current asset
D. Advertising Expense (D); Prepaid Ad-
vertising (K) Rp. 1, 200, 000 D. fixed asset
2799. PT Adil Sejahtera makes payments for 2803. Which of the following would not be
maintenance of vehicle spare parts which considered an external user of accounting
costs IDR 300, 000, 000, -and repairs to data for the ABC Company?
worn engine chains at a cost of IDR 500, A. IRB
000, -. So the journal that must be made
for this transaction is B. Management
A. Maintenance expenses Rp. 800, 000, C. Creditors.
-Cash Rp. 800, 000, - D. Customers.
B. Repair expenses Rp. 800, 000, -Cash
Rp. 800, 000, - 2804. Which of the following is the least liq-
uid?
C. Maintenance expenses Rp. 300, 000, -
Repair expenses Rp. 500, 000, -Cash Rp. A. Stock
800, 000, -
B. Debtors
D. Repair expenses Rp. 300, 000, -
C. Bills receivable
Maintenance expenses Rp. 500, 000, -
Cash Rp. 800, 000, - D. Machinery

2805. The concept that concern with the signif- When she goes to pay, how much will she
icance of currency used when dealing with owe?
economics events and agreeable by both
A. $1.60
parties is
A. Going concern concept B. $37.10
B. Monetary measurement concept C. $40.00
C. Consistency concept D. $51.48
NARAYAN CHANGDER
D. Accrual concept 2810. is a specialized branch of accounting
2806. Kelsie work for TLE manufacturing Cor- that keeps track of a company’s financial
poration. She is under the accounting de- transactions.
partment mainly responsible for making A. Cost accounting
sure that the her company gets the cheap-
B. Management accounting
est prices of raw materials with the high-
est quality possible to reduce waste ex- C. financial accounting
penses. She also makes sure that the
D. corporate accounting
electricity bill and other utility bills are as
low as possible with the highest possible
2811. Pick the Non-current asset.
output of products manufactured. Which
branch of accounting is Kelsie under? A. Cash
A. Auditing B. Inventory
B. Cost Accounting C. Receivable
C. Financial Accounting D. Building
D. Management Accounting
2812. If no agreement regarding the responsi-
E. Tax Accounting
bility of loss exists between consignor and
2807. Which of the following accounts has a consignee, the loss of goods resulting from
credit balance? accident, fire or theft etc. would be born
by the:
A. Capital
A. both consignor and consignee in the ra-
B. Cash
tio of 1:1
C. Drawings
B. consignor only
D. Premises
C. consignee only
2808. Direct material + direct expenses is D. carrier of goods only
A. Overhead cost
B. Prime cost 2813. Receipts and Payments Account is
C. Total cost A. Personal Account
D. Conversion cost B. Real Account

C. Nominal Account
2809. Mrs. Ray is buying some groceries.
They total to $35.50. Sales tax is 4.5%. D. Gross and Net Profit

2814. On December 1, 20x1, Entity D signed a B. Commission

new insurance contract and paid $6, 300
C. Principle
insurance premium for a three-month pe-

riod from December 1 20x1 to February D. Reverse
20x2. Prepare journal entries on the fol-
lowing dates:December 31, 20x1 2819. During 2019, an entity introduced a
new product carrying a two-year war-
A. Insurance expense (D) 6300 Prepaid
ranty against defects. The estimated war-
insurance (K) 6300
ranty costs related to peso sales are 4%
B. Insurance expense (D) 2100 Prepaid within 12 months following sale and 6%
insurance (K) 2100 in the second 12 months following sale.
C. Insurance expense (D) 4200 Prepaid The entity reported sales of P5, 000, 000
insurance (K) 4200 for 2019 and P6, 000, 000 for 2020.
The actual expenditures incurred and paid
D. Insurance expense (D) 3600 Prepaid
amounted to P150, 000 for 2019 and
insurance (K) 3600
P550, 000 for 2020. What is the esti-
2815. If total liabilities decreased by $60, 000 mated warranty liability on December 31,
and owner’s equity increased by $30, 000 2020?
during a period of time, then total assets A. 400, 000
must change by what amount and direction
during that same period? B. 100, 000
A. $90, 000 increase C. 200, 000

B. $30, 000 increase D. 260, 000
C. $30, 000 decrease 2820. The accrual basis of accounting records
D. $90, 000 decrease revenues when they are:
2816. The meaning of the acquisition price of A. Collected
a fixed asset is B. Earned
A. Prices stated in the price list C. Contracted
B. Purchase price plus all costs incurred
D. Readily available for use
to enable the asset to operate
C. Purchase price/price from the seller 2821. Choose the correct option
D. The agreed price between the buyer
and seller
2817. Realisation account is a real account.

A. True
B. False
2818. A transaction is omitted completely A. 6, 800

from the books so that there is no debit
B. 19, 400
and credit entry of the transaction. This is
an example of what errors? C. 20, 400
A. Omission D. 16, 800

2822. The first financial reporting regulation in A. to show the value of the shares in the
Malaysia can be traced back only as far company
as 1940 when the Companies Ordinance B. to provide information on financial per-
(amendments) of 1940 was established. formance and financial position of a busi-
A. True ness
B. False C. to help management hiring additional
work forces
2823. Credit side balance in Income & Expendi-
D. to show managers the results of their
NARAYAN CHANGDER
ture Account reveals:
departments
A. Excess of cash receipts overpayments
2828. At April 30, Dorale Company has the fol-
B. Excess of cash payments over receipt lowing bank information:cash balance per
C. Excess of expenditure over income bank $2, 500; outstanding checks $385;
deposits in transit $260; credit memo for
D. Excess of income over expenditure
interest $50; bank service charge $15.
2824. Net income RM 100, 000Depreciation What is Dorale’s adjusted cash balance on
RM 10, 000Increase in account receivable April 30?
RM 30, 000Decrease in account payable A. $2, 375
RM 15, 000 Based on the above informa-
B. $2, 440
tion, what amount will the corporation re-
port as Net Cash Provided by Operating C. $2, 500
Activities on the cash flow statement? D. $2, 660
A. RM 65, 000 2829. When Share Application Money is re-
B. RM 125, 000 ceived, account is credited
C. RM 155, 000 A. Cash Account
D. RM 105, 000 B. Share Application Account
C. Share Capital Account
2825. Amounts owed that are presented by a
formal contract: D. None of the Above
A. Trade accounts payable 2830. The statement that outlines the income
B. Accounts payable for the period and the expenses incurred
in the period.
C. Notes payable
D. All of the above
B. Statement of Profit and Loss
2826. Who is the father of modern finance? C. Statement of Financial Position
A. Eugene F. Fama D. Balance Sheet
B. Agastya 2831. Basic Financial Statements
C. Luca Pacioli A. Balance sheet
D. William Shakespeare B. Cash
2827. What is the main objective of preparing C. Stockholders
the financial statements? D. Income statement

2832. The influence of environmental factors 2837. Purchased furniture from M/s. Mohan-
such as social, political, economic, lal & Sons., in the journal entry for this
in the development of accounting and transaction M/s Mohanlal & Sons A/c will

Malaysia’s recent move towards the adop- be
tion of International Financial Reporting A. Debited
Standards (IFRS).
B. Credited
A. religion and race
C. Neither Debited nor credited
B. macro and micro
C. size of company and audit firm
D. legal and cultural 2838. Financial reports that describe cash in-
flows and outflows during a certain period
2833. Recorded expenses include: are the definition of
A. Product costs and selling costs A. Financial statements
B. Product costs and period costs B. Cash flow statement
C. Product costs, selling costs and period C. Cash Flow Report
costs
D. Cash Report
D. Period costs and selling costs
2839. Rely on the study of the behaviour of
2834. Which one of the following is not an ex- accountants and non-accountants as they
ternal user of accounting information? are influenced by accounting functions and
A. Investor reports.
B. Customer A. Pragmatic
C. Manager B. Normative
D. Creditor C. Behavioural
D. Taxation
2835. An accrued expense is an expense that
A. Has been incurred but has not been 2840. Company Newbie does not have a sys-
paid tem in place to verify returns from cus-
tomers and vendors. As the expert ac-
B. Has been paid but has not been in-
count, which of the following do you sug-
curred
gest management implements to maintain
C. Has been incurred for which payment accurate inventory levels?
has been made in installments
A. Instruct employees to verbally tell a
D. Will never be paid manager each time there is a return
2836. When a Liability is reduced or decreased, B. Have customers complete a form with
it is recorded on the: name, address, reason for return, and sig-
nature
A. Left or credit side of the account
C. Have a manager take a picture of each
B. Right or debit side of the account item that is returned
C. Right or credit side of the account D. Have employees record the return on
D. Left or debit side of the account paper after the customer leaves the store

2841. Mrs. Thongdee took 12, 000 baht in D. make adjusting entries→ balance
cash, 20, 000 baht in bank deposits, 5, sheet → statement of owners equity →
000 baht in furniture, 4, 000 baht in trade net income
creditors, and 8, 000 baht in loans for in-
vestment. I would like to know how much 2845. In straight line method of providing de-
total debt there is. preciation, depreciation amount
A. 41, 000 baht A. Remains constant
B. 12, 000 baht B. Increases every year
NARAYAN CHANGDER
C. 8, 000 baht C. Decreases every year
D. 32, 000 baht D. None of the options
2842. Select the incorrect option regarding the 2846. The lessee can recover the shortwork-
letter of credit: ings within
A. Payable only when there is profit A. First 5 years
B. Same as loan to company B. First 4 years
C. fixed interest rate C. Last 3 years
D. Its holder has no right to vote D. Any number of years as per agreement
2847. Who s the father of Accounting?

2843. Which of the following is a correct jour-
nal entry to record the loss incurred by a A. Lucco Paciole
consignment B. Peter Drucker
A. Profit and loss on consignment Dr. & C. F.W.Taylor
Consignment Cr.
B. Consignment Dr. & Profit and loss on
consignment Cr. 2848. What would be the effect on an entity’s
C. Profit and loss on consignment Dr. & profit for the year of discovering that in-
Consignee Cr. ventory with cost of $1, 250 and a net
realisable value of $1, 000 had been omit-
D. Consignee Dr. & Profit and loss on con- ted from the original inventory valuation?
signment Cr.
A. An increase of $1, 250
2844. What is the correct order to prepare fi- B. An increase of $1, 000
nancial statements in?
C. A decrease of $250
A. Make end of period adjustments → in-
come statement → statement of owners D. No effect at all
equity → Balance sheet
2849. The registration of IDR 15, 500 shares
B. balance sheet → make end of pe- was carried out on November 15 2019.
riod adjustments → income statement → From the company’s activities, the jour-
statement of owner’s equity nal made at the time of the announcement
C. income statement → owners equity was
→ balance sheet → make period adjust- A. Dividends IDR 15, 500-Cash-IDR 15,
ments 500

B. Dividends Payable Rp. 15, 500-Cash- C. Profit and loss statement, cash flow
Rp. 15, 500 statement, trial balance

C. Cash IDR 15, 500-Dividends Payable- D. Cash flow statement, balance sheet,
IDR 15, 500 general journal
D. Dividend IDR 15, 500-Dividend
Payable-IDR 15, 500 2855. If an employee of the business files a le-
gal suit on business, it is considered in the
E. No journaling books as
2850. Which accounting reports mainly to the A. Legal Expense
people outside of the business?
B. Liability
A. Managerial Accounting
C. Contingent Asset
D. Contingent Liability
2851. Planning, recording, analyzing, and in-
terpreting financial information 2856. Contract between Customer and Sup-
plier requires Supplier to transport a spec-
A. accounting
ified quantity of goods by using a spec-
B. ethics ified type of rail car in accordance with
C. transaction a stated timetable for five years. Sup-
plier has large pool of similar items and
D. revenue none are specified in the contract. Alterna-
2852. Which of the following is an evidence of tives are readily available at minimal cost.
payment Supplier benefits economically by using its
pool of available rolling stock in the most
A. Invoice efficient manner. Is it a lease
B. Cheque A. Yes
C. Receipt
B. No
D. Delivery note
2857. Non-cash items are not recorded in:
2853. Concept:When a source document is pre-
pared for each transaction A. Balance Sheet
A. going concern B. Profit and Loss A/c
B. materiality C. Income and Expenditure A/c
C. realization of revenue D. Receipt and Payment A/c
D. objective evidence
2858. A trader has included rent which is due
2854. What are the main financial statements but not paid in his profit and loss account.
that are prepared using double-entry ac- Which concept was applied?
counting? A. historic cost
A. Balance sheet, income statement,
B. matching
statement of cash flows
C. money measurement
B. Income statement, general ledger, re-
tained earnings statement D. prudence

2859. What are considered Permanent ac- B. No Effect

counts? C. Assets Increase; Liabilities Decrease
A. Assets D. none of above
B. Liabilities
2865. COGS (or cost of sales when referring
C. Owner’s equity to services) is workedout by the formula:
D. All of the above A. = Opening stock + Purchases-
2860. The value of an asset at the end of its Closing stock
NARAYAN CHANGDER
useful life is referred to as: B. = Sales revenue-Cost of goods sold
A. Restricted value C. = Gross profit-Expenses
B. Salvage value D. none of above
C. Optional value 2866. The Hire-vendor has to refund the
D. Depreciable value amounts received after re-possession of
goods consequent to default by the buyer
2861. Capital = P192, 345 ; Liabilities = P88,
A. True
765. How much is the Total Assets?
B. False
A. P 103, 580
B. P 281, 101 2867. An event related to an investment in
debt securities that does not require jour-
C. P 130, 580
nal entry is:
D. P 281, 110
A. change of name of company issuing
2862. An increase in Accounts Payable is debt securities
recorded by a entry in the account. B. acquisition of debt investments
A. Debit C. sale of debt investments
B. Credit D. receipt of interest income from debt in-
vestments
2863. In the accounts of a manufacturing firm,
depreciation of factory plant and equip- 2868. If the owner invests cash into the busi-
ment should be included under the heading ness, what would be the journal entry?
of
A. Debit Cash, Credit Owner’s capital
A. direct expenses.
B. Credit Cash, Debit Unearned revenue
B. cost of raw materials consumed. C. Credit Unearned revenue, Debit Cash
C. administrative expenses. D. Credit Cash, Debit Owner’s capital
D. factory overheads.
2869. Sold goods on credit to Mark. What
2864. In June, Company X receives the RM5, is the double entry to record this transac-
000 from Accounts Receivable. What is tion?
the effect on the accounting equation and A. Debit Cash and Credit Sales
which accounts are affected at Company
X? B. Debit Mark and Credit Sales
A. Assets Increase; Owner’s Equity De- C. Debit Sales and Credit Mark
crease D. Debit Cash and Credit Sales

2870. is the nominal value of the shares or overpayment made. It is a formal re-
which are offered to the public for subscrip- quest for the supplier to issue a credit
tion note.

A. stock A. Debit note
B. debentures B. Credit note
C. Issued Capital C. Goods received note (GRN)
D. assets D. Goods dispatched (delivery) note

(GDN)
2871. shows if the business is making E. Statement
profit or loss during a particular period
2876. Why is deferred taxation accounted for
A. Cash Flow Statement in financial statements?
B. Income Statement A. Tax losses occur and they have to be
C. Balance Sheet anticipated
D. Statement of Changes in Equity B. Taxation rates vary between countries
C. The prudence principle dictates that it
2872. What is the margin of safety? should be so
A. The difference between units sold and D. A mismatch can occur because GAAP
the break-even amount recognition criteria for items of income
B. The margin between units and sales and expense are different from the treat-
ment of items under tax law
C. The margin between each break-even
point 2877. When a business purchase an assets by
D. The margin between profit and loss cash
A. Asset decrease, Liability increase
2873. Which side of a ledger account is known
B. Asset increase, liability increase
as the DEBIT side?
C. Asset increase, asset decrease
A. Right-hand side
D. Expenses increase, asset increase
B. Left-hand side
2878. Switching accounting principles every
C. Top side
year would violate the
D. Bottom side
A. CONSISTENCY PRINCIPLE
2874. If total assets of a business are $10, 00, B. FULL DISCLOSURE PRINCIPLE
000 and capital is $4, 00, 000. Calculate C. HISTORICAL COST PRINCIPLE
Creditors
D. CONSERVATISM PRINCIPLE
A. 7, 00, 000
2879. Which of the following will be treated
B. 6, 00, 000 as preferential creditors?
C. 14, 00, 000 A. Government Taxes
D. 8, 00, 000 B. Trade Creditors.
2875. (h) :A document sent by a customer C. Unsecured loans.
to a supplier in respect of goods returned D. none of above

2880. Users of accounting information is? 2886. Shareholders receive annual accounts,
prepared in accordance with legal and pro-
A. Potential Investors
fessional requirements
B. Suppliers
A. TRUE
C. Management
B. FALSE
D. All of the above
2887. Managers are the users of account-
2881. Use information in question one to an- ing.
NARAYAN CHANGDER
swer this question
A. internal
A. #16, 500
B. external
B. #11, 500
2888. The December 31, 2018 trial balance
C. #9, 500
for Rueda Company included the follow-
D. #6, 500 ing:Purchases, P40, 000; Purchase re-
turns and allowances, P2, 000; Trans-
2882. In hire purchase system, the ownership portation in, P3, 000; ending inventory
passes immediately to the vendor on down was P8, 000. What was the cost of goods
payment sold for 2018?
A. True A. 39, 000
B. False B. 33, 000
2883. The US government agency with author- C. 38, 000

ity over the financial reporting require- D. None of the choices.
ments of publicly traded corporations is
the 2889. What are the basic financial statements
in accounting?
A. AICPA
A. Income statement, balance sheet, and
B. FASB
cash flow statement
C. IRS
B. Expense report, liability statement,
D. SEC and revenue statement
C. Cash flow report, income summary,
2884. There’s no difference between Account-
and owner’s equity statement
ing Concepts and Accounting Conventions.
D. Profit statement, equity statement,
A. True
and investment statement
B. False
2890. Which of the following is most useful for
2885. A book of original entry where transac- managers?
tions are first recorded.
A. Financial statements for the last finan-
A. General Journal cial year
B. General Ledger B. Tax records for the past five years
C. Trial Balance C. Budgets for the coming financial year
D. Subsidiary Ledger D. Bank statements for the past year

2891. A chart of accounts (COA) is an ordered C. Cost + Depreciation

listing of accounts that comprise a com- D. Cost + Accumulated Depreciation
pany’s general ledger

A. True 2896. IFRS 12 describes the disclosure require-
ments in respect of investments in sub-
B. False sidiaries, associates, and joint arrange-
ments. Which of the following disclosures
2892. Which of the following is a change in ac-
is NOT required by IFRS 12 in consolidated
counting policy in accordance with IAS8
financial statements?
A. An entity changes the warranty provi-
sions, based upon more up-to-date infor- A.
mation about claims frequency and value
B. Reducing the value of inventory from B.
cost to net relisable value due to a valid
adjusting event after the reporting period.
C.
C. A change in valuation of inventory from
a weighted average to a FIFO basis
D.
D. An entity changes the useful lives of
some of its non-current assets due to re- 2897. Revenue expenditure is the outflow of
cent introduction of a new technology funds to acquire an asset that will bene-
fit the business for not more than one ac-
2893. Which of the following is a real account? counting period.
A. plant account A. True
B. salaries account B. False
C. creditors account
2898. Prudence is a concept to recognise all
D. trading account losses and not profits.
2894. An entity reported the following data on A. True
December 31, 2019: B. False
2899. Which is not a financial statement
A. Income statement
B. balance sheet
C. statement of assets
D. statement of cash flows
A. 7, 490, 000
B. 7, 500, 000 2900. Wages paid for the construction of build-
ing were recorded in wages account. This
C. 7, 640, 000
is
D. 7, 090, 000
A. Error of omission
2895. Net Book Value is B. Error of commission
A. Cost-depreciation C. Compensating error
B. Cost-Accumulated Depreciation D. Error of principle

2901. Rules for the way financial statements A. Ignored

should be prepare that help guide busi- B. Deducted from net income, whether
nesses in accounting procedures. declared or not
A. Accounting C. Deducted from net income only when
B. Accounting Equation declared
C. Accrual Accounting D. Added to net income net of tax
D. GAAP 2907. A financial statement that reports how
NARAYAN CHANGDER
2902. According to straight line method of pro- much cash a business took in and where
viding depreciation, the depreciation the cash went.
A. Remains constant A. income statement

B. cash flow statement
B. Increase each year.
C. balance sheet
C. Decrease each year
D. all of the above
D. None of them.
2908. Alicia went to the local farmer’s market
2903. recording of transactions and events as
to buy some fresh produce. She bought
and when they occur and classifying them
carrots for 35% OFF the original price of
into suitable account heading is the subject
$7.40. How much did Alicia pay for the
matter of
carrots?
A. financial accounting
A. 4.81
B. cost accounting
B. 2.59
C. management accounting
C. 9.99
D. book keeping
D. 3.50
2904. In case of liquidation of the firm, which
2909. What is the cost of raw materials avail-
liabilities are to be paid first (choose two
able for production?
options)
A. Partner’s laon a/c
B. Partner’s capital a/c
C. Partner’s spouse loan a/c
D. Debt of third party
2905. Conversion method is also known as A. $800

A. Net worth method B. $, 100
B. Statement of affairs method C. $4, 500
C. Expenditure method D. $5, 300
D. Final account method 2910. It is the process of transferring data
2906. In computing diluted EPS, dividends on from the journal to the appropriate ac-
convertible cumulative preference shares counts in the ledger.
should be A. Journalizing

B. Ledger B. NO, banks may require cash flow and

C. Posting profit forecasts and budgets prepared to
show management’s estimates of future

D. Accounting activity in the business.
2911. You have a controlling interest if: 2916. Choose the correct option
A. you own more than 20% of a company’s
stock.
B. you are the president of the company
C. you use the equity method.
D. you own more than 50% of a com-
pany’s stock.
2912. In the books of lessee shortworkings re-

coverable in future years are
A. A revenue expense
B. A normal loss
C. An asset
D. A liability
2913. Accounting is an
A. #23, 500
A. art
B. #18, 500
B. process
C. #11, 500
C. science
D. #8, 500
D. all of the above
2917. Capital Expenditure is
2914. It encourages the accountant to post
A. The costs of running the business on a
each entry in opposite sides of two af-
day-to-day basis
fected accounts
B. Money spent on buying fixed assets or
adding value to them
B. Full disclosure convention
C. Money spent on selling fixed assets
C. Dual aspect Concept
D. The extra capital paid in by the propri-
D. Realisation concept etor
2915. Banks frequently require more informa- 2918. The portion of subscribed capital which
tion than is supplied in the published ac- is called for payment by the company is
counts when considering applications for called
loans and overdraft facilities A. Paid-up Capital
A. Yes, banks may require cash flow and B. Subscribed Capital
profit forecasts and budgets prepared to
show management’s estimates of future C. Called-up Capital
activity in the business. D. Nominal Capital

2919. How to record sales return originally a 2924. Which one is the correct answer based
credit transactions? on it’s stage?
A. Dr Sales ReturnCr Receivables A. Stage 1:Deliberation at the WG level
B. Dr Sales ReturnCr Cash on IASB’s draft pronouncements
C. Dr cash Cr sales return B. Stage 3 and 4:Issuance of standard by
the MASB
D. Dr receivablesCr Sales Return
C. Stage 2:Deliberation by the MASB
2920. Total of purchases book is
NARAYAN CHANGDER
D. Stage 5, 6 & 7:Issuance of Standard by
A. Posted to the credit of Purchases ac- the IASB
count
B. Posted to the debit of Purchases ac- 2925. What is an asset?
count A. A liability that a business owes to other
C. Posted to two column cash book entities
D. None of the above B. A durable produced good used as a
productive input
2921. Nazarene invested P69, 000, 000 for
her business. C. A resource owned or controlled by a
business
A. Dr. CashCr. Capital
B. Dr. CapitalCr. Cash D. The total amount of income generated
by the sale of goods and services
C. Dr. CashCr. Nazarene, Capital
D. Dr. Nazarene, CapitalCr. Cash 2926. The following accounts that are not in-
cluded in the fixed assets group are
2922. Profit sharing for Stockholders
A. Vehicle
A. Common Stock
B. Factory building
B. Retained Earning
C. Provision of Merchandise
C. Withdrawal Drawing
D. Machines
D. Dividend
2923. Which is the correct order financial 2927. Griffon Incorporated holds a 30% own-
statements should be completed. ership in Duck Corporation. Griffon should
use the equity method under which of the
A. Income Statement, Balance Sheet, Re- following circumstances?
tained Earnings Statement, Statement of
Cash Flows A. Griffon has surrendered significant
stockholder rights by agreement between
B. Income Statement, Retained Earnings
Griffon and Duck.
Statement, Statement of Cash Flows, Bal-
ance Sheet B. Griffon has been unable to secure a po-
sition on the Duck Corporation’s Board of
C. Balance Sheet, Statement of Cash
Directors.
Flows, Income Statement, Statement of
Retained Earnings C. Griffon has inadequate or untimely in-
D. Income Statement, Retained Earnings formation to apply the equity method.
Statement, Balance Sheet, Cash Flows D. The ownership of Duck Corporation is
Statment diverse.

2928. are the outflowof money from a B. Big Business

business due to its operations, e.g. wages, C. Small Business
salaries, rent and the purchase of stock.

D. Partnership
A. profit
B. costs 2933. After the March 2023 financial year,
the total operations of accounts 7 is 3/2
2929. Which option gives report on financial the total operations of accounts 6. What
status of a firm? are the amounts of income and expenses
A. Income & Expenditure Account if the result is 12000.
B. Balance Sheet A. Count 7:2000/ Count 6:4000
C. Cash Flow Statement B. Count 7:30000/ count 6:10000
D. Profit & Loss Account C. Count 7:20000/ count 6:8000
D. Account 7:36000/ account 6:24000
2930. What are the different types of financial
ratios used in financial analysis? 2934. The income from an equity method in-
A. Growth ratios, market ratios, invest- vestee is reported on one line of the in-
ment ratios, and debt ratios vestor company’s income statement ex-
B. Liquidity ratios, profitability ratios, sol- cept when:
vency ratios, and efficiency ratios A. the cost method is used.
C. Income ratios, expense ratios, asset B. the investee has extraordinary items.
ratios, and liability ratios C. the investor company is amortizing
D. Cash flow ratios, budget ratios, credit cost-book value differentials.
ratios, and risk ratios D. the investor company changes from
2931. A plant was purchased on January 01, the cost to the equity method.
200X at a cost of $100, 000 and has been
2935. Which of the following transactions
depreciated at a rate of 2% per annum, on
should be disclosed as related party trans-
the straight line basis. 20 years later, the
action in the entity’s separate financial
plant is professionally revalued at $120,
statements for the current year?
000. 5 years later from the first reval-
uation, the plant is revalued at $20, 000. A. Key management personnel compen-
What should be recorded in relation to this sation
revaluation B. Sales to affiliated entities
A. Decrease in revaluation surplus of $60, C. Key management personnel compen-
000 sation and sales to affiliated entities
B. Decrease in revaluation surplus of $60, D. Neither key management personnel
000 and increase in expense of $20, 000 compensation nor sales to affiliated enti-
C. Increase in expense of $80, 000 ties.
D. Other 2936. Drawings taken from the bank what is
2932. Subsidiary books are more adequate for the double entry
which type of business organisation A. Dr CapitalCr Bank
A. Sole Proprietor B. Dr DrawingsCr Capital

C. Dr DrawingsCr Bank B. Mistakes made by both the bank and

D. Dr DrawingsCr Case the business
C. Money given to a business from the
2937. It takes into consideration all prospec- profit made by a public limited liability
tive losses but leaves all prospective prof- company
its
D. Deductions the bank will remove from
A. Convention of Conservatism the business bank account for the ser-
B. Convention of consistency vices rendered
NARAYAN CHANGDER
C. Convention of Full Disclosure 2942. Merchandise inventory method that pro-
D. Convention of Materiality duces high net profits when inflation oc-
curs
2938. When the amount of closing capital (af-
A. FIFO
ter adjusting drawings ) is less than that
of opening capital the difference will be B. LIFO
treated as C. Average
A. Loss D. Specific Identification
B. Profit
2943. Step 1 in the Accounting Cycle
C. Additional capital
A. Adjusted Trial Balance
D. None of them
B. Source Documents
2939. (c) :A document of the company that C. Closing Entries
details an order placed by a customer for
D. Journal
goods or services.
A. Quotation 2944. Sales account and account sales are syn-
onymous terms.
B. Purchase order
A. True
C. Statement
B. False
D. Debit advice
E. Sales order 2945. Which of the following is not a direct
tax?
2940. provides information for income de- A. Income tax
termination
B. Sales tax
A. Financial accounting
C. Commercial tax
B. Cost accounting
D. Wealth tax
C. Management accounting
D. None of these 2946. The Process of entering all transaction
from the Journal to Ledger is called
2941. What are bank charges in a bank recon- A. Posting
ciliation statement?
B. Entry
A. Instruction given by the business to
pay a certain amount of money to a named C. Accounting
person at a regular interval D. None of the above

2947. When a company receives cash from a 2951. Given the following, what is the amount
customer for a prior sale, the transaction of Capital? Premises $20, 000; Inventory
$8, 500; Cash $100, Trade payables $3,

A. increases cash, decreases accounts
000; Loan from A. Adams $4, 000.
receivable
A. $21, 100
B. increases accounts receivable, de-
creases cash B. $21, 600
C. $32, 400
C. increases both cash and accounts re-
ceivable D. $21, 400
D. decreases both cash and accounts re- 2952. Which account is used to ascertain the
ceivable operating profit or loss of each Depart-
ment.
2948. Jeff’s Construction, LLC bought a piece
A. Departmental Profit and Loss A/C
of equipment in 2001 for P 10, 000. To-
day this piece of equipment is only worth P B. Departmental Trading A/C
2, 000. Jeff would still report the equip- C. General Trading A/C
ment at its purchase price of P 10, 000, D. General Profit and Loss A/C
less depreciation, even though its current
fair market value is only P 2, 000. 2953. Accounting Concepts are
A. Historical Principle A. Business entity concept
B. Business Entity B. Going concern concept
C. Monetary concept
C. Accrual Principle
D. Cost concept
D. Adequate Disclosure Principle
E. all of the above
2949. On December 2 2018, PT M2M received 2954. In the working paper preparation pro-
PD Ngentak’s receivables amounting to cedure, the real account balance is trans-
IDR 2, 000, 000, and it was estimated ferred to a column
that 0.1% of the receivables could not be
collected. The above transaction uses the A. Income statement
method B. Balance sheet
A. Direct Receivables Write-Off C. Adjusted trial balance
B. Write-off of Installment Receivables D. Trial balance
C. Write-off of Reserve Receivables 2955. What is income in finance?

D. Balance Sheet Receivables Write-Off A. Future sacrifices of economic benefits
that a business owes to other entities
2950. What is the “Language of the any Busi- B. Durable produced goods used as pro-
ness ductive inputs
A. accounting C. Ownership interest in property offset
by debts or liabilities
B. financial statement
D. Consumption and saving opportunity
C. balance sheet
gained by an entity within a specified time-
D. ledger frame

2956. An increase in the balance in Accounts 2961. The most basic legal form of business.
Payable. A. Partnership
A. Operating B. Stockholders
B. Investing C. Sole Proprietorship
C. Financing D. Corporation
D. Supplemental 2962. All the following are features of part-
NARAYAN CHANGDER
nership account except
2957. Under the provisions of which enact-
ment, banks are regulated and controlled A. Balance sheet
in India? B. Appropriation account
A. Banking Regulation Act, 1949 C. Current account
B. Companies Act, 2013 D. Debtors account
C. Reserve Bank of India Act, 1935 2963. If assets increase by 20, 000, which one
D. None of these of the following also could happen?
A. Prepaid insurance increases by $20,
2958. All of the following are examples of As- 000
sets EXCEPT
B. Unearned revenue decreases by $20,
A. Cash at the Bank 000
B. Cash in Hand C. Notes payable increases by $20, 000
C. Building D. Withdrawls increase by $20, 000
D. Creditors 2964. Accounting is an art of

A. Recording
2959. Which of the following statements are
correct? B. Interpreting
A. Subscribed capital is that part of capi- C. Summarising
tal which is offered to the public for sub- D. All the above
scription.
2965. For accounting purposes the “business”
B. Called-up-capital is that part of the is treated as a separate entity (Individual)
subscribed capital that has been paid up. from the proprietor (s).
C. Paid-up-capital = called-up-capital- A. Money Measurement
calls in arrear
B. Business Entity
D. Issued capital is that part of autho-
C. Periodicity Concept
rized capital which is applied by the public
and allotted by company. D. Matching Concept
2966. ALL OF THE FOLLOWING FINANCIAL AS-

2960. True or False:Principle of Regularity and
SETS ARE SUBJECT TO IMPAIRMENT, EX-
Principle of Consistency is the same?
CEPT:
A. True
A. BOND INVESTMENT AT AMORTIZED
B. False COST

B. BOND INVESTMENT AT FVOCI 2972. On May 20 2017, PT Usaha Bersama

C. LOAN RECEIVABLE AT AMORTIZED purchased a vehicle for IDR 220, 000,
000.00, VAT 10%. The costs incurred in

COST
connection with the purchase of the vehi-
D. BOND INVESTMENT AT FVPL cle are transfer fees amounting to IDR 2,
500, 000.00. The amount of vehicle at
2967. During 2017, Susi sold goods costing
cost is
$500 to its subsidiary, Kiki, at a mark-
up of 20%. Kiki had had $100 of these A. Rp 220.000.000, 00
goods on hand at Dec 31, 2017. What is B. Rp 222.500.000, 00
the elimination worksheet entry to elimi-
C. Rp 242.000.000, 00
nate intercompany sales?
D. Rp 244.500.000, 00
A. Dr. Sales $600Cr. Cost of sales $600
B. Dr. Sales $625Cr. Cost of sales $625 2973. What does R.W.1 mean?
C. Dr. Cost of sales $25Cr. Inventory $25 A. Journal page 1
D. Dr. Cost of sales $100Cr. Inventory B. fast

$100 C. be careful
E. Dr. Sales $20Cr. Cost of sales $20 D. period book
2968. Find the sales ratio18, 000:12, 000:27, 2974. Manufacturing firms like to compare
000 their cost of manufacture with the whole-
sale cost of their output. Why do they do
A. 3:9:6 this?
B. 6:3:9 A. To see whether it has been more or
C. 2:3:4 less profitable to manufacture the prod-
D. 9:3:6 ucts rather than purchase them
B. To report to managers on the quality of
2969. INVENTORY COST DOES NOT INCLUDE: their products
A. PURCHASE PRICE C. To apportion costs to different areas
B. REBATES of the business
C. IMPORT DUTIES D. To investigate how many units are re-
quired to breakeven
D. FREIGHT
2975. What is the journal entry to pay the tax
2970. The accountant’s word to indicate that liabilities of employee income tax, Medi-
an entry will be recorded on the right-side care, and Social Security?
of an account is
A. Debit payroll Deduction Expense,
A. Debit Medicare Payment, Social Security Pay-
B. Credit ment:Credit Cash
B. Debit Business Tax Payable, Medicare
2971. Abnormal wastages should be included
Payment, Payroll Expense; Credit Capital
in the cost of inventories as per AS-2.
C. Debit Cash; Credit employee income
A. True tax payable, Medicare payable, social se-
B. False curity payable

D. Debit employee Income tax payable, C. In the beginning of year

Medicare payable, social security payable, D. none of above
credit cash
2981. Which of the following documents au-
2976. Trial Balance would not disclose error of thorizes the purchase transaction?
omission.
A. Credit memo from supplier
A. True
B. Invoice or bill from supplier
B. False
NARAYAN CHANGDER
C. Purchase order
2977. A cash deposit made by business ap- D. Purchase requisition
pears on the bank statement as bal-
ance. 2982. PREDICTIVE AND CONFIRMATORY
A. Debit VALUE ARE THE INGREDIENTS OF:
A. UNDERSTABILITY
B. Credit
B. FAITHFUL REPRESENTATION
C. Expenses
C. RELEVANCE
D. Liabilities
D. COMPLETENESS
2978. Arrange the following items in the order
of the accounting cycle:1. record transac- 2983. It checks the arithmetical accuracy of
tions into the book of original entry2. pre- ledger accounts.
pare financial statements3. make period- A. Ledger
end adjustments4. post transactions to
B. Account
ledger
C. Trial Balance
A. 1432
D. Final Accounts
B. 4132
C. 1423 2984. Which of the following is not an internal
user of accounting information?
D. 4123
A. the bank
2979. PD Markisa has a note worth IDR 12,
B. owners
000, 000 with a term of 90 days and 8%
interest. The note was issued on August C. managers
5 2018. Based on this data, the maturity D. employees
date of the note is
2985. Apply the realization principle to deter-
A. October 31, 2018
mine which revenue would be reported in
B. 2 November 2018 October income statement
C. 3 November 2018 A. Cash received in September for Octo-
D. 4 November 2018 ber flights
E. 5 November 2018 B. Cash received in October for October
flights
2980. Trial balance can be prepared C. Cash received in October for Novem-
A. At any time of year ber flights
B. At the end of year D. None of the above

2986. Which of the following is an asset ac- C. Fixed asset accounting

cording to the definition in the Conceptual D. Bank ledger accounting
framework?

E. All of the above
A. Bank overdraft
B. Factory buildings 2992. Thornton’s Department Store has a
30%-off sale this week. What is the sale
C. Payables price for a pair of $24.00 jeans?
D. Amounts owed to tax authorities A. $2.40
2987. Which type of business organization has B. $7.20
the following characteristics?is owned by C. $16.80
2 to 20 personhas unlimited liabilityhas no
D. $21.60
legal obligation to audit the accounts
A. sole trader 2993. Outstanding checks refer to checks that
have been:
B. partnership
A. Issued by the bank
C. company
B. Written and not yetrecorded in the
D. none of above
company books
2988. How can shares be issued? C. Written, recorded on thecompany
A. at par books, sent to the payee, but not yet paid
by the bank
B. at premium
D. Written with insufficient funds
C. at discount/reduction
D. on all of the following 2994. A form requesting that a vendor sell
merchandise to a business is called
2989. which form of business forms a sepa-
A. purchase order
rate legal entity?
B. purchase invoice
A. sole proprietorship
C. articles of incorporation
B. partnership
D. stock purchase
C. corporation
D. all of the above 2995. Which of the following is found in a
sales ledger account?
2990. Hire purchase price includes A. Credit purchases
A. Cash price and interest B. bills payable
B. Cash price and down payment C. discount received
C. Down payment and interest D. discount allowed
D. Total Price
2996. Journal Entry for Selling Furniture in
2991. Which process is used to manage money Cash is?
owed by customers for goods and services A. Furniture A/C (Debit)-To Cash A/C
purchased from the company? (Credit)
A. General ledger accounting B. Cash A/C (Debit)-To Furniture A/C
B. Accounts receivable accounting (Credit)

C. Cash A/c (Debit)-To Sales A/c(Credit) 3002. The break even level of output for a firm
is 800 units and it is currently making 950
D. Sales A/c (Debit)-To Furniture
units. What is its margin of safety?
A/c(Credit)
A. 150 units
2997. Non profit organization are those orga-
B. 250 units
nization which do not have
C. 300 units
A. Balancing motive
D. 1750 units
NARAYAN CHANGDER
B. Profit motive
C. Loss motive 3003. Accounting is an information system for
business
A. True
2998. Step 3 in the Accounting Cycle. B. False
A. Ledger
3004. The purpose of adjusting entries is to:
B. Source Documents
A. Adjust the Retained Earnings account
C. Trial Balance for the revenue, expense, and dividends
D. Closing Entries recorded during the accounting period.
B. Adjust daily the balances in asset, lia-
2999. The first step in the recording process is bility, revenue, and expense accounts for
to the effects of business transactions.
A. prepare financial statements. C. Apply the realization principle and the
B. analyze each transaction for its effect matching principle to transactions affect-
on the accounts. ing two or more accounting periods.
C. post to a journal. D. Prepare revenue and expense ac-
counts for recording the transactions of
D. prepare a trial balance. the next accounting period.
3000. An increase in economic benefits during 3005. Business transactions are kept com-
the period of time in the form of inflows. pletely separate from its owners
A. Liabilities A. Cost Principle
B. income B. Monetary Unit Principle
C. expenses C. Distinct Entity Principle
D. none of above D. Time Period Principle
3001. Which account is least likely to appear 3006. The final stage of the accounting process
in an adjusted journal entry? is
A. cash A. interpretation
B. interest receivable B. recording
C. property tax expense C. reporting
D. salaries payable D. summarizing

3007. Every Debit have a corresponding credit, 3012. When is trial balance prepared
is this statement A. At the end of an accounting period

A. True B. At the end of a year
B. False C. Frequently during the year
C. Partially True
D. At the end of a month
3013. An Acer brand computer was purchased
3008. is a financial statement that reports for Rp. 7, 500, 000 and get a cash dis-
a business’s assets, liabilities, and capital count of 10%. Additional costs for in-
on a specific date. stalling the computer and setting it up so
A. Balance sheet that the computer is ready for use is IDR.
250, 000. then the purchase price of the
B. Income Statement
computer is
C. Expenditure
A. Rp. 7.000.000
D. Statement of Cash Account
B. Rp. 7.500.000
3009. IF AN ENTITY DEMOLISHES AN OLD C. Rp. 7.750.000
BUILDING AND CONSTRUCTS A NEW
D. Rp. 6.750.000
BUILDING, ANY DEMOLITION COST IN-
CURRED IS: E. Rp. 7.750.000
A. CAPITALIZED AS COST OF THE LAND 3014. In a bonus issue of one share for every
B. CAPITALIZED AS COST OF THE NEW four held, a holder of 100, 000 shares will
BUILDING get additional shares of
C. EXPENSED IMMEDIATELY A. N50, 000
D. CHARGED TO RETAINIED EARNINGS B. Nach, 000
3010. With this financial statement we can C. N20, 000

identify where the money is earned and D. N10, 000
where the money is spent
3015. Single entry system is also called as
A. Cash flow statement
A. Double entry system
B. Working capital
B. Book keeping system
C. Current ratio
C. Incomplete record system
D. Debt/asset ratio
D. Complete record system
3011. Providing financial accounting informa-
tion about economic activities for specified 3016. The assets which have no physical ex-
time/accounting periods This principle istence but have rights as their value are
pertains to known as?
A. Accrual Principle A. Fixed Assets
B. Business Entity B. Investments
C. Periodicity Principle C. Intangible Assets
D. Objectivity principle D. Curreny Assets

3017. Which of the following best describes B. Your business’ cumulative financial
the proper presentation of accounts receiv- holdings.
able in the financial statements? C. Debts your business owes another per-
A. gross accounts receivable plus the al- son or entity.
lowance for doubtful accounts in the asset D. none of above
section of the balance sheet
B. gross accounts receivable in the asset 3022. A company issues 8% convertible bonds
section of the balance sheet and the al- at their nominal value of $8 million. Inter-
NARAYAN CHANGDER
lowance for doubtful accounts in the ex- est is payable annually in arrears. Each
pense section of the income statement $1, 000 bond is convertible at any time
up to maturity into 400 ordinary shares.
C. gross accounts receivable less bad Alternatively, the bonds will be redeemed
debt expense in the asset section of the at par after 3 years. The market rate ap-
balance sheet plicable to non-convertible bonds is 9%.
D. gross accounts receivable less the al- A. The rate applied for convertible bond
lowance for doubtful accounts in the asset is always higher than the rate for similar
section of the balance sheet bond without conversion right
3018. Investments is an B. At issuing date, the company recog-
A. Asset nized a financial liability of $ 5 million
B. Liability C. The company recognized interest ex-

pense at market rate for non-convertible
C. Income bonds of 9%
D. Expenditure D. The bonds are recorded as both liabil-
3019. It is the last day of the fiscal period ity and equity
and your business shut down to complete 3023. Which one of the following is not an ex-
an end-of-fiscal period inventory count. ternal user of accounting information?
What inventory amount should go on the
balance sheet? A. Investor
A. Predicated inventory B. Creditor
B. Perpetual inventory C. Manager
C. Skewed inventory D. Customer
D. Periodic inventory 3024. Temporary accounts are closed at

period-end. They consist of revenue, ex-
3020. In partnership, partners liabilities are pense, dividends and Income Summary.
A. Limited A. True
B. Unlimited B. False
C. Limited to the capital invested
3025. The financial statement that reports
D. Limited to the amount mentioned the assets, liabilities, and stockholders’
3021. Liabilities: (owner’s) equity at a specific date is the:
A. The systematic recording and report- A. Balance Sheet

ing of business financial transactions. B. Income Statement

C. Statement of Cash Flows D. planning next year’s operating budget

D. Cash Statement
3031. The Financial Accounting Standard Board

3026. When a company can get a tax refund (FASB) is primarily responsible for which
from the government? of the following?
A. When it is running low on cash A. Hiring chief executive officers for large
corporations
B. When its performance is extremely
poor B. Pressing charges against employees
accused of fraud
C. When it incurrs a loss
D. When it goes bankrupt C. Hiring the boards of directors for ma-
jor corporations
3027. What is accounting? D. Establishing and improving generally
A. It is a process to record financial trans- accepted accounting principles
actions
3032. Numerous mistakes can exist even
B. It is a process to record project execu-
though the Trial Balance totals are in
tion
agreement.
C. It is a process to record the day to day
A. True
activities in software project
B. False
D. All of the above
3028. The branches of Accounting are the fol- 3033. Machinery costing $25 000 is depreci-
lowing except ated at 20 % per annum using the dimin-
ishing (reducing)balance method.It is sold
A. Tax accounting at the start of year 3 for $12 000.What
B. Financial accounting is the profit or loss on disposal?
C. Cost accounting A. loss $3000
D. Management accounting B. loss $4000
3029. A waste paper basket costing $30 is be- C. profit $3000
ing depreciated over 5 years. Which prin- D. profit $4000
ciple of accounting is violated?
A. separate entity 3034. Calculate the interest capitalised for the
year 2022 that will be added to the inter-
B. disclosure est expense of MK traders. (question 2)
C. materiality A. 42875 / 40000 / 10000 = 7125
D. realization B. 42875 x 40000 x 10000 = 7125
3030. Financial accounting provides the pri- C. 42875 + 40000 + 10000 = 7125
mary source of information for:
D. 42875-40000-10000 = 7125
A. decision making in the finishing depart-
ment 3035. The total amount of money owed to a
business by customers.
B. improving customer service
C. preparing the income statement for A. Accounts Receivable
shareholders B. Accounts Payable

C. Account Balance 3041. In a non-for-profit making organisation,

D. Account Title the cash book is summarised in the form
of
3036. The balance of the adjusted cash book is A. Balance sheet
used in preparing
B. Income and Expenditure
A. Trading account
C. Receipts and Payments account
B. Bank statement
D. Receipts and Expenditure account
NARAYAN CHANGDER
C. Bank reconciliation statement
3042. A report of the balances of all asset, lia-
D. Trial balance bility, and owner’s equity accounts at the
3037. ALL OF THE FOLLOWING ARE CLASSI- end of an accounting period.
FIED AS CURRENT LIABILITIES, EXCEPT: A. balance sheet
A. TRADE ACCOUNTS PAYABLE B. income statement
B. DEFERRED TAX LIABILITY THAT IS EX- C. statement of cash flows
PECTED TO REVERSE NEXT YEAR D. statement of income
C. CURRENT PORTION OF A LONG TERM
3043. Which of the following is the accounting
DEBT
equation?
D. CASH DIVIDEND PAYABLE
A. Assets = Equity + Liabilities
3038. A type of business that offers services B. Liabilities = Equity + Assets
and typically generate a profit by charging C. Assets = Equity-Liabilities
a fee.
D. Equity = Assets + Liabilities
A. Service Business
B. Merchandising Business 3044. The rule for personal representative ac-
count is
C. Manufacturing Business
A. Dr. what comes in Cr. what goes out
D. Kidi’s Sareh-Sareh Store
B. Dr. the receiver, Cr. the giver
3039. Accruing Unpaid Expenses What would C. Dr. all expenses and losses, & Cr. all
be the impact on assets? incomes & gains
A. Assets would increase D. None of the above
B. Assets would decrease 3045. Which of the following result in a credit
C. Assets would remain unchanged entry?
D. None of the above A. Increase in Expense.
B. Decrease in Income.
3040. Journal records the transactions of the
form in a C. Increase in Equity.
A. Periodical manner D. Increase in Asset.
B. Chronological order 3046. Stock of goods is divided into
C. Summarised manner A. 3
D. Systematic order B. 10

C. 4 3052. Cash received from the sale of long-

D. 2 term investments should be classified as
a cash flow from:

3047. Suppliers A. Operating activities
A. Internal User B. Financing activities
B. External User C. Investing activities
D. none of above
3048. Which industry has been a major foreign
exchange earner in the last few years? 3053. How was advertising cost calculated?
A. Automobile (Question 2)
B. Textile A. 25680 x 2400 / 240

B. 25680-2400 + 240
C. Iron and Steel
C. 25680 / 2400 + 240
D. Information Technology
D. 25680 + 2400-240
3049. Which of the following is related to Sci-
entific system of maintaining account? 3054. The seller pays for freight
A. FOB
A. single entry
B. FOB Merchandise
B. double entry
C. FOB Shipping Point
C. contra entry
D. FOB Destination
D. book entry
3055. The format of account that tells the bal-
3050. is the process of allocating the cost ance after each entry is known as:
of the natural resources to the units re-
A. T-account format
moved
B. Advance account format
A. Appreciation
C. Running balance account format
B. Depreciation
C. Depletion
3056. Which statement is incorrect regarding
D. Amortization
the FRSC?
3051. The Realization of Revenue generally ac- A. Shall be composed of fifteen (15) mem-
cepted accounting principle (GAAP) states bers with a chairman
that revenue B. Is the successor of the Accounting
A. Should be recorded only when cash is Standards Council (ASC), which was cre-
received ated in November 1981 by the Philippine
Institute of Certified Public Accountants
B. Only need to be reported if it comes
(PICPA)
from a registered business
C. The Chairman and members of the
C. Should be predicted and recorded on FRSC are appointed by the PRC upon the
the same statement recommendation of the BOA in coordina-
D. Must be earned before it can be in- tion with the accredited professional or-
cluded in an income statement ganization (APO) of CPAs.

D. Has the authority to establish the ac- A. $5, 250

counting framework to be used by compa- B. $9, 900
nies under its jurisdiction
C. $4, 950
3057. Paid to Sania Rs.9, 650 in full payment D. $5, 775
of her dues of Rs.10, 000. The journal en-
try is 3061. PD Jaya has a note receivable worth
A. Sania A/c Dr.10, 000 To Cash A/c 9, IDR 10, 000, with a term of 90 days and
interest of 12% per year. Based on this
NARAYAN CHANGDER
650; To Discount Received A/c 350
transaction, the maturity value is
B. Sania A/c Dr. 9, 650 Discount allowed
A/c Dr. 350 To Cash A/c 10, 000 A. Rp 8.800
C. Sania A/c Dr.10, 000 To Cash A/c 10, B. Rp 10.000

000 C. Rp 10.300
D. Cash A/c Dr 9, 650 Discount Allowed D. Rp 11.200
A/c Dr 350 To Sania A/c 10, 000 E. Rp 9.700
3058. What is the return on assets given the 3062. Customers
following:Net Income is $100, 000Begin-
ning Assets are $30, 000Ending Assets A. Internal User
are $10, 000Average Assets are $20, B. External User
000
3063. A business has Current asset of £100,
A. 3.3
000, Non current asset of 50, 000, Cur-
B. 5 rent liabilities of £20, 000 what is the Net
C. 10 Asset?
D. 4 A. £150000
B. £130000
3059. Choose 1 description that NOT TRUE
about intergrated accounting system C. £30000
A. HQ will maintained all transactions by D. £30000

branches in one ledger 3064. FINANCIAL ACCOUNTING PURPOSE IS
B. HQ will be as supplier A. FIND OUT COST
C. transactions by branches recorded B. CONTROL COST
and submitted to HQ
C. ASCERTAINMENT OF FINANCIAL PO-
D. all account records manage by HQ SITION & PROFIT/LOSS
3060. On June 1, 2019, Oakcrest Company D. BUDGETING
signed a three-year $110, 000 note
payable with 9 percent interest. Interest 3065. A specific type of fraud that involves
is due on June 1 of each year beginning misrepresenting the truth on any one of
in 2020. What amount of interest ex- the financial statements, either by lying or
pense should be reported on the income by omitting important information causing
statement for the year ended December loss to another
31, 2019? A. Accounting Fraud

B. Financial Fraud 3070. The Assumption that revenues are

C. Statement Fraud recognised when earned and expenses
when incurred so profit is calculated as

D. Fraud Revenue earnt less expenses incurred is
the
3066. On November 9, 20x1, Entity G re-
ceived $1, 200 from a subscriber to a mag- A. Entity assumption
azine issued by the entity. Each issue of B. Period assumption
the magazine is published and sent to sub-
scribers on the first day of each month. C. Accrual basis assumption
Prepare journal entries on the following D. Going concern assumption
dates:November 9, 20x1
3071. Income and Expenditure Account is
A. Account Receivable (D) 1200Cash (K)
1200 A. Personal Account
B. Cash (D) 1200Unearned Service Rev- B. Real Account
enue (K) 1200 C. Nominal Account
C. Unearned Service Revenue (D) D. Contingent Account
1200Service Revenue (K) 1200
D. Account Receivable (D) 1200Service 3072. The business owner, Jack invested
Revenue (K) 1200 $9000 into the business bank account.
What is the double entry to record this
3067. Paid office rent in cash for January transaction?
SR5000 A. Debit Bank and Credit Capital
A. Rent Exensecash B. Debit Capital and Credit Bank
B. cash Rent Expense C. Debit Capital and Credit Jack
C. Accounts payablecash D. Debit Jack and Credit Bank
D. cashAccounts payable
3073. Accounting entries involve a minimum of
3068. A share in the share capital of company how many accounts?
is called A. 1
A. Asset B. 2
B. Liability C. 3
C. Debenture D. 4
D. Share
3074. The document that contains the regula-
3069. Which type of business organization has tion which governs the internal manage-
a separate legal entity from its owner? ment of the company’s affairs is
A. Sole proprietorship A. memorandum of association
B. Partnership B. prospectus
C. Limited company C. articles of association
D. None of the above D. certificate of incorporation

3075. Incomplete records are generally main- 3082. Mr. Nat has the following personal
tained by assets and liabilities:Cash 10, 000 baht,
A. A company bank deposit 5, 000 baht, car 200, 000
baht, house 300, 000 baht, land 100, 000
B. Government baht, borrowed money from the bank 120,
C. Small sized sole trader business 000 baht. I would like to know how much
D. Multinational enterprises total assets Mr. Nat has.
A. 615, 000 baht
3076. arrangement of assets and liabilities in
NARAYAN CHANGDER
the balancesheet is known as B. 735, 000 baht
A. final accounts C. 495, 000 baht
B. accounting D. 120, 000 baht
C. marshalling of balancesheet
3083. Separation of personal and corporate
D. posting of entries wealth
3077. The area of accounting that focuses on A. Economic Entity
reporting information to external users is
B. Going Concern
called managerial accounting.
A. True C. Materiality
B. False D. Periodicity
3078. Indirect expenses will be apportioned in 3084. In the trial balance 31 December 2015
A. P & L a/c there was prepaid advertising of Rp. 3,
000, 000.00. At the end of the year there
B. Trading a/c was a statement that Rp. 1, 000, 000.00
C. General P&L a/c had become an expense. From these data,
D. Branch P& l a/c the prepaid rent account on the adjusted
trial balance is
3079. Cost accounting is needed by which type
A. IDR 250, 000.00
of users
B. IDR 4, 000, 000.00
A. Internal users
B. External users C. IDR 1, 000, 000.00
D. IDR 3, 000, 000.00
3080. In the Double Entry System, every busi-
ness transaction affects the same side of E. IDR 2, 000, 000.00
two accounts
3085. The Companies Act, Malaysian Account-
A. True ing Standards Board (MASB), listing re-
B. False quirements of the Kuala Lumpur Stock Ex-
change (KLSE) and the guidelines of the Se-
3081. Which is accurate?
curities Commission (SC) are currently the
A. Assets = Liabilities + Equity major sources of reference for corporate
B. Assets-Liabilities = Equity reporting in Malaysia.
C. Liabilities = Equity-Assets A. True

3086. Credit balance in bank column of the 3091. Depreciation is a top process
cash book indicates A. Valuation

A. Favorable balance B. Cash Accumulation
B. Un favorable balance C. Cost allocation
C. Bank Overdraft D. Appraisal
D. Normal balance
3092. Fundamental Problems of Financial Ac-
3087. Contingent liabilities should be recorded counting Theory
when: A. difficult/unfavorable selection (ad-
A. they are probable and can be reason- verse selection)
ably estimated B. behavioral deviation (moral hazard).
B. they are probable but the estimate is C. Increase our understanding of the ac-
unknown counting environment
C. they are reasonably possible and the D. Accounting theory is based on funda-
outcome is known mental research so that improvements in
D. they are reasonably possible but the disclosure are based on investor decision
estimate is unknown making theory and capital market theory
E. Problems of Accounting Theory:how to
3088. (b) :A document of the company
reconcile the different roles above for ac-
that details goods or services which the
counting information
company wishes to purchase from another
company. 3093. Adjusted Purchases is total of
A. Quotation A. purchases + Closing stock
B. Purchase order B. Purchases + wages-closing stock
C. Receipt C. Opening Stock + Purchases-Closing
D. Debit advice Stock
E. Statement D. Opening Stock +Purchases + Wages-
Closing Stock
3089. Cost of Sales
3094. Unsold goods is called as
A. Indirect Expenses
A. Goods
B. Direct Expenses
B. Purchases
C. Accounts Payable
C. Stock
D. Accounts Receivable
D. Assets
3090. When hire purchaser makes default in
paying the instalment, the hire vendor has 3095. A business recognizes revenues or ex-
penses on the accounting books even
A. Right to take repossession of the asset though no cash changes hands. This busi-
B. No right to take repossession ness uses the accounting method.
C. He has to approach the court A. Cash basis
D. None of the above B. Accrual basis

C. Principles Basis B. 401:sc 6000/ 403:sc 2000

D. Income Basis C. 401:sc 4000/ 403:sc 2000
D. 401:sc 3000/ 403:sc 1000
3096. Payments for rent are recognized as
prepaid rent on March 1, 2021 for a rental 3101. A buyer received an invoice for P6, 000
period of 1 year Rp. 12, 000, 000. The dated June 10. If the terms were 2/10,
company made the adjustment on August n/30, and the buyer paid the invoice
31, 2021. The correct adjusting entry on within the discount period, what amount
NARAYAN CHANGDER
the debit side is will the seller receive?
A. Prepaid Rent Rp. 10.000.000 A. P 6, 000
B. Rent Expense Rp. 10.000.000 B. P 5, 880
C. Prepaid Rent Rp. 6.000.000 C. P 4, 800
D. Rent Expense Rp. 6.000.000 D. P 120
3102. In management accounting, it is not a
3097. Outstanding rent account is personal ac-
requirement to follow GAAP in preparing
count
reports for internal purposes.
A. Yes A. True
B. No B. False
3098. Ascertain cost of goods sold from 3103. The following are objectives of amalga-
the following figures:Opening stock Rs. mation EXCEPT
3700Closing stock Rs.20800Purchases
A. to reap economies of scale
rs2500
B. to eliminate competition
A. Rs. 3700
C. to build up goodwill
B. Rs. 22000
D. to compete with government
C. Rs 2500
3104. Liabilities of the petty cashier can never
D. none of above the imprest amount
3099. Step 2 in the Accounting Cycle A. Exceed
A. journal B. Equal
B. source documents C. Less to
C. adjusted trial balance D. Reach
D. closing entries 3105. Bad Debts A/c is a Nominal Account

A. True
3100. Following the previous question, what
are the amounts to be credited and debited B. False
for the operating expenses and e.a.p oper- 3106. The Father of Accounting
ating expenses accounts knowing that the
A. Luca Pacioli
credit amount was 6000. What are the
balances at the account levels. B. Luca De Borgo Pacioli
A. Accounts 401:sd:4000/ account C. Charles Babbage
405:sd:2000 D. Luca Charles pacilo

3107. The amount of a natural resource used

up during the period

A. Depreciation
A. 1, 000, 000
B. Depletion B. 1, 375, 000
C. Amortization C. 1, 250, 000
D. Goodwill D. 1, 125, 000
3108. Panahon Company bought equipment 3112. The cash difference is underreported in
costing P50, 000 on account. the income statement in the post
A. Dr. EquipmentCr. Accounts Payable A. Operating income
B. Dr. Accounts PayableCr. Equipment B. Operational expenses
C. Dr. Accounts ReceivableCr. Equip- C. Other burdens
ment D. Other income
D. Dr. EquipmentCr. Accounts Receiv-
3113. Which financial statement uses the ex-
able
panded accounting equation?
3109. Expenses due for this year not paid A. Income statement
A. Prepayments B. Balance sheet
B. Accrued incomes C. Cash flow statement
C. Advance incomes D. Statement of owner’s equity
D. Accrued Expense 3114. Which of the following statements is
true about assets?
3110. WHICH OF THE FOLLOWING IS INCOR-
RECT ORDER? A. They are the properties or economic
resources owned by the business
A. RECORDING IN JOURNAL, ADJUST-
ING ENTRIES, ANALYZE DOCUMENTS B. They are available to provide future
benefits to the business
B. ADJUSTING ENTRIES, FINANCIAL
C. They can be intangible rights
STATEMENTS, CLOSING ENTRIES
D. Ownership is shared between credi-
C. POSTING TO LEDGER, CLOSING EN-
tors and owners
TRIES, ADJUSTING ENTRIES
E. All of these answers are correct
D. POST CLOSING TRIAL BALANCE,
RECORDING IN JOURNAL, FINANCIAL 3115. During 2017, Rob sold goods costing
STATEMENTS $1, 500 to its subsidiary, Sam, at a gross
profit of 20%. Sam had none of this inven-
3111. An entity includes one coupon in each tory on hand at the end of 2017. What is
box of laundry soap it sells. A towel is the elimination worksheet entry to elimi-
offered as a premium to customers who nate intercompany sales?
send in 10 coupons and a remittance of
P10. Distribution cost of premium is P5. A. Dr. CoGS $1, 500Cr. Inventories $1,
Experience indicates that only 30% of the 500
coupons will be redeemed. B. Dr. Sales 1, 875Cr. CoGS 1, 875

C. Dr. CoGS $1, 500Cr. Sales $1, 500 3120. ‘Useful for making prediction and con-
D. Dr. CoGS $1, 875Cr. Inventories $1, firming existing expectations.’ What type
875 of qualitative characteristics of Financial
Statements that relates in above state-
E. None of the above ment?
3116. Which forecasting method would best A. Understandability
be utilized by a business who has data on B. Verification
the past five fiscal periods and wants to
C. Reliability
NARAYAN CHANGDER
forecast their next fiscal period?
D. Relevance
A. Take the lowest fiscal period
B. Average all fiscal periods 3121. Receipts, bills, invoices, statements,
checks anything that documents a
C. Take the highest fiscal period transaction.
D. Average the two highest fiscal periods A. Journal
3117. The company receives cash from a bank B. Source document
loan.-The liabilities will C. Chart of accounts
A. increase D. Trial balance
B. decrease
3122. If all the business transactions are ex-
C. No effect pressed in monetary terms, it will be easy
D. none of above to understand the accounts prepared by
the business enterprise.
3118. What is the normal balance for liabili- A. Business Entity Concept
ties?
B. Revenue Recognition Concept
A. Debit
C. Money Measurement Concept
B. Credit
D. Going Concern Concept
3119. Which ONE of the following state-
3123. Meghna then takes a loan of
ments correctly describes how Inter-
20000Asset = liability + OE
national Financial Reporting Standards
(IFRSs) should be used? A. asset goes up
A. To provide examples of best financial B. liability goes up
reporting practice for national bodies who C. both go up
develop their own requirements
D. capital goes up
B. To ensure high ethical standards are
maintained by financial reporting profes- 3124. Which of the following statements is
sionals internationally true?
C. To facilitate the enforcement of a sin- A. The trial balance is never used to pre-
gle set of global financial reporting stan- pare financial statements
dards B. The trial balance is a list of all the ac-
D. To prevent national bodies from devel- counts in the journal
oping their own financial reporting stan- C. Another name for the trial balance is
dards the “chart of accounts

D. The trial balance is a list of the ac- D. selling and distribution expenses.
counts in the general ledger
3130. based on observed behavior of accoun-

E. A trial balance is only prepared at year
end tants theory developed from how accoun-
tants act in certain situations tested by ob-
3125. Expenses whose actual payment has serving whether accountants do act in the
not yet occurred but have become a burden way the theory suggests is an inductive
for the company because the company has approach statement above was a Descrip-
received the benefits so that it is a debt in tive pragmatic approach
the period concerned are
A. True
A. Accrued revenue
B. False
B. Accrued expense
C. Unearned revenue 3131. What is the purpose of financial account-
ing?
D. Prepaid expense
E. Operating expense A. To provide information about the
weather forecast
3126. A deed of partnership is:
B. To entertain the employees of the or-
A. A document that states what product a ganization
business sells
C. To promote the products and services
B. A type of business of the organization
C. A business book
D. To provide information about the finan-
D. A legal document cial position, performance, and changes in
financial position of an organization to ex-
3127. Unrecoupable short-workings should be
ternal users.
charged to Profit and Loss Account.
A. True 3132. The debts which are to be repaid within
B. False a short period (a year or less) are referred
to as,
3128. Cash flows from operating activities in-
clude: A. Current Liabilities
A. Sale of long-term investments B. Fixed liabilities

B. Payments to suppliers and employees C. Contingent liabilities
C. Purchase of property and equipment D. All the above
D. none of above
3133. The activities or steps that help a busi-
3129. In the accounts of a manufacturing firm, ness keep its accounting records in an or-
the cost of raw materials used during an derly manner.
accounting period should be included under
A. Financial Statements
the heading
A. factory overhead expenses. B. Financial Records
B. administrative expenses. C. Accounting Period
C. prime cost. D. Accounting Cycle

3134. The company receives cash from a bank 3139. This concept states that a business firm
loan.-The assets will will continue to carry on its activities for
an indefinite period of time.
A. increase
B. Decrease
B. Historical Cost Concept
C. No effect
C. Going Concern Concept
D. none of above
D. Dual Aspect Concept
NARAYAN CHANGDER
3135. Which groups of people are most likely
3140. Explain how investors use financial ac-
to be interested in the financial statement
counting information.
of a sole trader (2 Marks) i. Sharehold-
ers of the company ii. The business bank A. To analyze the financial health and per-
manage iii. The tax authority iv. Financial formance of a company, make investment
analysts decisions, and assess the potential risks
and returns.
A. i&ii Only
B. To determine the company’s customer
B. i&iii Only satisfaction
C. ii, iii and iv Only C. To learn about the history of the com-
D. i, ii and iii Only pany
D. To calculate the company’s market
3136. Which of the following accounts is pre- share
pared to find out the cost of production?
A. Manufacturing account 3141. Illustrate Good Sent to Branch Account.
Choose CORRECT amount of Trading Ac-
B. Trading account count
C. Profit and loss account
D. Balance sheet
3137. The owner invests personal cash in the

business.-The liabilities will
A. Increase
B. Decrease
A. RM409, 000
C. no affect
B. RM409, 200
D. none of above
C. RM408, 000
3138. How are royalties classified in a manu- D. RM408, 200
facturing firm?
A. Direct expense 3142. In the hire purchase system interest
charged by vendor is calculated on the ba-
B. Indirect expense sis of the outstanding cash price.
C. Administrative expense A. True
D. Selling & distribution expense B. False

3143. Which of the following isNOT a compo- D. Planning how to allocate resources,
nent that is included in theIncome State- making strategic business decisions, and
ment? recording a business’s transactions

3147. The method that records income and
costs, where income is reported when the
transaction occurs and costs are reported
when the costs are needed to generate
business income is the
A. Accrued expense
B. Unearned revenue
A. Revenue C. Accrued revenue
B. Expenses D. Cash basic accounting
C. Net Income/Loss E. Accrual basic accounting
D. Assets
3148. The primary stage of accounting func-
3144. A business entity is owned and run by tion is called Book-keeping.
Alpha, Beta and Gamma. What type of
business is this an example of? A. True
A. Sole trader B. False
B. Partnership
3149. A profit on sale of furniture of a club will
C. Limited liability company be taken to
D. None of the above A. Income and expenditure account
3145. The balance in the ‘goods sent to branch B. Cash account
‘ account is transferred to
C. Receipts and payments account
A. Branch account
D. Balance sheet
B. Head office account
C. Profit and loss account 3150. This type of accounting uses information
D. Trading or purchase account to make estimates for the future
3146. Which of the following are duties of ac- A. Management Accounting

countants? B. Financial Accounting
A. Recording a business’s transactions,
promoting accountability, and planning 3151. Government aims to gradually increases
how to allocate resources the public health expenditure to what per-
cent of GDP by 2025?
B. Recording a business’s transactions,
promoting accountability, and making A. 1.5%
strategic business decisions B. 3.5%
C. Promoting accountability, making
C. 2.5%
strategic business decisions, and plan-
ning how to allocate resources D. 7.5%

3152. Sales = Cost of goods sold C. A very shori life

grossprofit D. A definite life
A. %
3158. Financial accounting standard-setting
B. +
A. Can be described as a social process
C.
which reflects political actions of various
D. X interested user groups as well as a prod-
uct of research and logic
3153. What are known as temporary accounts
NARAYAN CHANGDER
and closed the books upon? B. Is based solely on research and empir-
ical findings
A. Assets, Liabilities, Owner Equity
B. Revenue, Expenses, Withdrawals C. Is a legalistic process based on rules
promulgated by government agencies.
C. Withdrawals, Revenue, Owner’s eq-
uity D. Is democratic on the sense that a ma-
jority of accountants must agree with the
D. Assets Liabilities and revenue standard before it becomes enforceable
3154. Which of the following accounts cate- 3159. which category does depreciation fall
gory with normal balance are shown at the under in the accounting equation?
credit side of a trial balance?
A. assets
A. Assets and Income
B. owners equity
B. Liabilities and Income
C. liability
C. Assets and Expenses
D. expense
D. Liabilities and Expenses
E. imputed expense
3155. What should be added in closing capital
for calculating opening capital? 3160. The accounting equation for Cineo En-
A. Profit and drawing terprises is as follows:Assets Liabilities
Owner’s Equity$120, 000 = $60, 000 +
B. Loss and drawing $60, 000If Cineo purchases office equip-
C. Profit only ment on account for $15, 000, the account-
D. Loss only ing equation will change to
A. Assets Liabilities Owner’s Equity$120,
3156. Certificate of incorporation of LLP is is- 000 = $60, 000 + $60, 000
sued by
B. Assets Liabilities Owner’s Equity$135,
A. Registrar of firms
000 = $60, 000 + $75, 000
B. Registrar of companies
C. Assets Liabilities Owner’s Equity$135,
C. Registrar of co-operative societies 000 = $67, 500 + $67, 500
D. Registrar of Universities D. Assets Liabilities Owner’s Equity$135,
000 = $75, 000 + $60, 000
3157. According to going concern concept, a
business entity is assumed to have. 3161. Based on the issue price, the share issue
A. A long life can be divided in to
B. a short life A. Issue of shares at par

B. Issue of shares at premium D. full disclosure

C. Issue of shares at discount 3166. The Ordinances played a major role in

D. All of the above regulating financial reporting during this
period, until the Malaysian Companies Act
3162. Items appearing in Adjustments are
(based on the Victorian Act 1960) was en-
taken
acted in 1965.
A. only once
A. True
B. Twice
B. False
C. No Effect
3167. Trade discount is recorded in the books
D. Ignore
of original entry.
3163. What is the format of a bank reconcilia- A. True
tion statement?
B. False
A. Balance as per adjusted cash book,
add:unpresented cheques, credit trans- 3168. The following is a statement showing
fer, dividend, less:uncredited cheques, the financial status of the company at any
standing order, bank charges, dishon- given time.
oured cheque A. Trading Account
B. Balance as per adjusted cash B. Income Statement
book, add:unpresented cheques,
C. Statement of Financial Position
less:uncredited cheques, bank error
D. Cash Book
C. Balance as per bank state-
ment, add:unpresented cheques, 3169. Which of the following industries is not
less:uncredited cheques, bank error a heavy industry.
D. Balance as per cash book, A. Cotton textile
add:unpresented cheques, less:uncredited
B. Cement
cheques, bank error
C. Iron and Steel
3164. First computers purchased computers
D. Ship building
from HCL Ltd. and availed both trade dis-
count and cash discount. The transactions 3170. On July 1 of the current year, an en-
recorded in the books of account will be tity received a one-year note receivable
for: bearing interest at the market rate. The
A. Net invoice value and cash discount face amount of the note receivable and the
entire amount of the interest are due in
B. Trade discount, gross invoice value
one year. When the note receivable was
and cash discount
recorded on July 1, which of the following
C. none of the above was debited?
D. any of (a) and (b) A. Interest receivable
3165. general reserve is created on the basis B. Unearned discount on note receivable
of convention of C. Interest receivable and unearned dis-
A. conservatism count on note receivable
B. uniformity D. Neither interest receivable nor un-
C. materiality earned discount on note receivable

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PRACTICE BOOK» NOT FOR SALE

DESIGNED FOR SURE SUCCESS

JAI SHREE RAM

PRACTICE BOOK» NOT FOR SALE

It is my deepest gratitude and warmest

To my mother JOYTSNA CHANGDER

who has been a constant source of Knowledge and in-

The aim of this publication is to sup-

PRACTICE BOOK» NOT FOR SALE

C. C. Extraordinary items A. Income Statement

6. At the time of partnership liquidation,

C. Those amounts owing to partners with A. Balance Sheet

PRACTICE BOOK» NOT FOR SALE

7. A 8. D 9. A 9. D 10. C 11. A 12. D 13. A 14. B 15. A 16. A

PRACTICE BOOK» NOT FOR SALE

33. The process of bringing a zero balance to

B. WITHDRAWALS C. Balancing the books

28. B 29. D 30. D 31. B 32. B 33. A 34. A 35. A

D. All the statements above are correct. B. Straight Line Method

C. Accounting is a producer of powerful C. Neither debited nor Credited

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C. Operate for purposes other than to A. Generally Accepted Accounting Proce-

D. All of them 60. When cash is received, the account Cash

56. C 57. C 58. C 59. C 60. A 61. B 62. D 63. A 64. A

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A. Assets decrease, liabilities decrease B. Depreciation is an estimated expense

75. When the call money is received by the B. Dividend

D. 20/ton C. To calculate net profit/ (loss)

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A. Copyright 95. Stock splits and stock dividends both af-

87. A 88. A 89. D 90. D 91. B 92. C 93. D 94. A 95. B

D. Statement of Changes in Equity 105. Accounting Principles include

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A. 4, 300, 000 D. Any Ratio

B. 4, 700, 000 114. Liabilities often have the word in

B. Allocation 115. Rent Outstanding have balance

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D. $190, 000. 126. Explain the accounting equation.

121. Regulation as a Reaction to Fundamental A. Assets-Liabilities = Equity

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C. Assets = Liabilities-Equity this date, Sorrell had the fair values of

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B. real account 131. Which of the following is not a primary

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C. T-account 148. Original cost minus scrap value is the de-

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C. Short-term borrowings A. Purchases Account

153. Trade Payable: C. Office equipment Account

A. Your business’ cumulative financial D. Stock Account

B. Matching Concept A. Creditors

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A. basic assumptions are the same as ac- A. Standardization

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