1) Single Correct OptionLeft side of account is referred to as :

Marks: [1]
A) Balance B) Debit
C) Credit D) Footing

2) Single Correct OptionWhich of the following is a liability A/C :

Marks: [1]
A) Accounts receivable B) Withdrawals
C) Rent expense D) Accounts payable

3) Single Correct OptionAccording to traditional classsification, the purchases account is a

Marks: [1]
A) nominal account B) real account
C) saving account D) current

4) Single Correct OptionThe normal balance of a contra revenue account would be

Marks: [1]
A) credited. B) debited
C) transffered D) crossed

5) Single Correct OptionAccording to traditional classification of accounts, the John's account is a

Marks: [1]
A) personal B) real account
C) saving account D) current

6) Single Correct OptionAccording to modern classification of accounts, furniture account is a(n)

Marks: [1]
A) liability B) trading

C) asset D) p&l
7) Single Correct OptionThe business transaction is also known as which transaction.
Marks: [1]
A) post sales B) cash
C) credit D) financial
8) Single Correct OptionAn event that impacts the financial position of a business and that is measureable in terms of money is known as
Marks: [1]
A) personal B) business transaction
C) professional D) banking

9) Single Correct OptionAn account format in which balance is updated after each transaction is known as which type of account format.
Marks: [1]
A) professional B) self balancing
C) trading D) business transcations

10) Single Correct OptionRecording depreciation on fixed assets is which type of transaction.
Marks: [1]
A) external B) professional
C) internal D) personal

11) Single Correct OptionThe term credit is abbreviated as

Marks: [1]
A) Cr. B) Dr.
C) A/c D) BOP

12) Single Correct OptionThe collection or group of accounts maintained by a business is collectively known as
Marks: [1]
A) journal B) ledger
C) P&L D) B/S

13) Single Correct OptionThe information about number and titles of accounts maintained by an entity is usually available in its
Marks: [1]
A) books of a/c B) p&l
C) chart of accounts D) B/S

14) Single Correct OptionThe first book on double entry system of accounting was written in Vinece
Marks: [1]
A) 1549 B) 1489
C) 1500 D) 1494

15) Single Correct OptionWho is known as the father of modern double entry accounting.
Marks: [1]
A) Adam Smith B) Alfrad Marshall
C) Fra Luca Pacioli D) David Recaro

16) Single Correct OptionWhat is the foundation of double entry system.

Marks: [1]
A) p&l B) Accounting equation
C) Balance sheet D) trading

17) Single Correct OptionAssets = Liabilities and which other component

Marks: [1]
A) stakeholders B) shareholders
C) creditors equity D) owners equity

18) Single Correct OptionInvestors, lenders, and suppliers are examples of which type of accounting information provided by a business entity.
Marks: [1]
A) internal B) external users
C) personal D) professional

19) Single Correct OptionA branch of accounting that generates reports and information for the use of internal as well as various external parties is
known as

Marks: [1]
A) Cost accounting B) management accounting
C) financial accountig D) technical analysis

20) Single Correct OptionA branch of accounting that generates reports and information for the use of internal management for decision making
purpose is known as

Marks: [1]
A) manegirial accounting B) Cost accounting
C) financial accountig D) management accounting

21) Single Correct OptionAll factory costs are treated as while all administration costs are treated as .
Marks: [1]
A) Product costs, Period costs B) Period Costs, Product costs
C) Fixed costs, Period costs D) Period costs, fixed costs

22) Single Correct OptionCompany tries to achieve as early as possible.

Marks: [1]
A) Break even Point B) Standard
C) Benchmark D) Margin

23) Single Correct Option is more when sales are more than B.E.P.
Marks: [1]
A) Margin of Safety B) Break Even Point
C) Marginal costing D) Contribution

24) Single Correct OptionThe excess of current assets over current liabilities is called .
Marks: [1]
A) MOS B) working capital
C) BEP D) Budget

25) Single Correct Option are the amounts of cash or other assets taken by the owner from the business for personal use.
Marks: [1]
A) overdraft B) turnover
C) Profit D) Drawings
26) Single Correct Option -- is the process that provides information needed as a basis for making business decisions.
Marks: [1]
A) Budgeting B) Capitalisation
C) Accounting Period D) Management

27) Single Correct OptionComparison of financial statements highlights the trend of the of the business.
Marks: [1]
A) Financial position B) loss
C) profit D) sales

28) Single Correct Option is the relationship between quick assets and current liabilities .
Marks: [1]
A) Acid test ratio B) liquidity ratio
C) profitability ratio D) debtors ratio

29) Single Correct Option are assets that are purchased for permanent use in the business.
Marks: [1]
A) Floating assest B) Fixed asset
C) variable asset D) Non performing assests

30) Single Correct Option is the language of Business which used to communicate financial information.
Marks: [1]
A) Accounting B) Marketing
C) Profit D) Pricing

31) Single Correct Option is the study of managerial aspects of financial accounting
Marks: [1]
A) Cost accounting B) Financial accounting

C) Management accounting D) Business accounting

32) Single Correct OptionAuditor gives his report to -----------------------------------------------------------------
Marks: [1]
A) Shareholders of company B) Management of the company
C) Manager D) Owner

33) Single Correct OptionEvery company at end of financial year must publish --.
Marks: [1]
A) Annual Report B) Article
C) Financial reports D) Agenda
34) Single Correct OptionIndian Accounting standards are prepared by .
Marks: [1]
A) ICAI B) RBI
C) SEBI D) IRDA

35) Single Correct OptionG.A.AP means

Marks: [1]
A) Generally Accepted Accounting Principals B) Government Accepted Accounting Principals
C) Government accepted Accrual principals D) Generally assumed accounting Principals

36) Single Correct OptionMarginal cost is the increase or decrease in total cost when there is increase or decrease in production by one unit.
Marks: [1]
A) TRUE B) FALSE

37) Single Correct OptionDifference between actual sales and B.E. sales is called Margin of Safety
Marks: [1]
A) TRUE B) FALSE

38) Single Correct OptionProfit volume ratio shows relationship between contribution and turnover of company.
Marks: [1]
 A) TRUE B) FALSE
39) Single Correct OptionMarginal cost is the total cost incurred for producing one additional unit, which is nothing but variable cost per unit.
Marks: [1]
A) TRUE B) FALSE

40) Single Correct OptionMargin of safety (M.O.S. or M/S ) is the sales achieved by company over break even sales
Marks: [1]
A) TRUE B) FALSE

41) Single Correct OptionMarginal costing is useful for decision making

Marks: [1]
A) TRUE B) FALSE

42) Single Correct OptionContribution depends on xed cost

Marks: [1]
A) TRUE B) FALSE

43) Single Correct OptionIncrease variable cost to increase P/V ratio

Marks: [1]
A) TRUE B) FALSE

44) Single Correct OptionUnit with maximum P/V ratio is most efficient
Marks: [1]
A) TRUE B) FALSE

45) Single Correct OptionCompany with more margin of safety can create more reserves
Marks: [1]
A) TRUE B) FALSE

46) Single Correct OptionAccounting is useful only to the owner.

Marks: [1]
A) TRUE B) FALSE

47) Single Correct OptionAccounting Principle is general law or rule followed in the preparation of financial statements
Marks: [1]
A) TRUE B) FALSE

48) Single Correct OptionUsefulness, objectivity and feasibility are the three basic norms generally found in accounting principles
Marks: [1]
A) TRUE B) FALSE

49) Single Correct OptionThe entity concept considers the business and the proprietor as distinct from each other
Marks: [1]
A) TRUE B) FALSE
50) Single Correct OptionAccording to periodic matching of cost and revenue concept, a business man is not only to measure revenues in a
particular accounting period but also has to calculate expenses which can be assigned in earning such revenues

Marks: [1]
A) TRUE B) FALSE

51) Multiple Correct Option

Pricewater house Coopers, a leading organisation in providing professional services, was created in July 1998 by the merger of two firms – Price Waterhouse and Coopers & Lyb
PricewaterhouseCoopers is known as the world’s topmost professional services organisation providing services to its clients with an objective to build value, manage risk and im
It has around 1,40,000 employees in 152 countries who provide a complete range of business advisory services to local, national and international institutions. The services provi
auditing, accounting and tax advice, management, information technology, human resource consulting, financial advisory services and legal services. The organisation strongly i
globally accepted accounting standards in its financial statements and witnessed a higher rate of success. The accounts of the organisation showed its performance and its current
Following IFRS created confidence & Trust in the minds of foreign investors as the organisation’s financial statements complied with the globally accepted accounting standards
foreign capital for the organisation.

Select the services provided by PWC? Marks: [2]

A) Financial services B) management services
C) tax services D) Audit Services

52) Multiple Correct Option

Pricewater house Coopers, a leading organisation in providing professional services, was created in July 1998 by the merger of two firms – Price Waterhouse and Coopers & Lyb
PricewaterhouseCoopers is known as the world’s topmost professional services organisation providing services to its clients with an objective to build value, manage risk and im
It has around 1,40,000 employees in 152 countries who provide a complete range of business advisory services to local, national and international institutions. The services provi
auditing, accounting and tax advice, management, information technology, human resource consulting, financial advisory services and legal services. The organisation strongly i
globally accepted accounting standards in its financial statements and witnessed a higher rate of success. The accounts of the organisation showed its performance and its current
Following IFRS created confidence & Trust in the minds of foreign investors as the organisation’s financial statements complied with the globally accepted accounting standards
foreign capital for the organisation.

Identify the role of IFRS in PWC? Marks: [2]

A) Confidence in foreign investors B) Trust in foreign investors
C) Confidence in nvestors D) Trust in investors

53) Multiple Correct Option

Pricewater house Coopers, a leading organisation in providing professional services, was created in July 1998 by the merger of two firms – Price Waterhouse and Coopers & Lyb
PricewaterhouseCoopers is known as the world’s topmost professional services organisation providing services to its clients with an objective to build value, manage risk and im
It has around 1,40,000 employees in 152 countries who provide a complete range of business advisory services to local, national and international institutions. The services provi
auditing, accounting and tax advice, management, information technology, human resource consulting, financial advisory services and legal services. The organisation strongly i
globally accepted accounting standards in its financial statements and witnessed a higher rate of success. The accounts of the organisation showed its performance and its current
Following IFRS created confidence & Trust in the minds of foreign investors as the organisation’s financial statements complied with the globally accepted accounting standards
foreign capital for the organisation.

IFRS is responsible for which of the following ? Marks: [2]

A) higher rate of success B) Confidence in investors
C) Failure D) Confidence in foreign investors

54) Multiple Correct Option

Pricewater house Coopers, a leading organisation in providing professional services, was created in July 1998 by the merger of two firms – Price Waterhouse and Coopers & Lyb
PricewaterhouseCoopers is known as the world’s topmost professional services organisation providing services to its clients with an objective to build value, manage risk and im
It has around 1,40,000 employees in 152 countries who provide a complete range of business advisory services to local, national and international institutions. The services provi
auditing, accounting and tax advice, management, information technology, human resource consulting, financial advisory services and legal services. The organisation strongly i
globally accepted accounting standards in its financial statements and witnessed a higher rate of success. The accounts of the organisation showed its performance and its current
Following IFRS created confidence & Trust in the minds of foreign investors as the organisation’s financial statements complied with the globally accepted accounting standards
foreign capital for the organisation.

Identify the total employees & countries mentioned above. Marks: [2]
A) 145000 employees B) 1,40,000 employees
C) 152 Countries D) 150 Countries

55) Multiple Correct Option

Pricewater house Coopers, a leading organisation in providing professional services, was created in July 1998 by the merger of two firms – Price Waterhouse and Coopers & Lyb
PricewaterhouseCoopers is known as the world’s topmost professional services organisation providing services to its clients with an objective to build value, manage risk and im
It has around 1,40,000 employees in 152 countries who provide a complete range of business advisory services to local, national and international institutions. The services provi
auditing, accounting and tax advice, management, information technology, human resource consulting, financial advisory services and legal services. The
organisation strongly implemented IFRS & globally accepted accounting standards in its financial statements and witnessed a higher rate of
success. The accounts of the organisation showed its performance and its current financial position. Following IFRS created confidence & Trust in the minds of foreign investors
financial statements complied with the globally accepted accounting standards which helped in
raising foreign capital for the organisation.

The organisation strongly implemented in its financial statements and witnessed a higher rate of success i.e Marks: [2]
A) IFRS B) Concepts
C) Accounting Standards D) globally accepted accounting standards

56) Multiple Correct Option

Mr. Sham is a sole proprietor who runs an automobile spare parts business in Delhi. Mr. Sham is into the business for the past ten years and has been successfully running his bus
maintaining his final accounts & all cost accounting records . he is also paying taxes based on the profit earning ratio or tax slabs. While ascertaining the selling price of spare pa
various taxes on spare parts, such as GST. The Income Tax Department at times randomly audits the financial files of traders. At one point of time, the Income Tax Department
auditing the financial returns of Mr. Sham. The I.T. sleuths started to extensively scrutinise Mr. Sham’s past five years financial returns. It was done to ascertain whether the fina
maintained by him are authentic or fabricated. Upon thoroughly analysing his final accounts, it was noted that Mr. Sham had been glaringly under-reporting his final accounts an
irregularities while maintaining final accounts, which implies that sales figure mentioned by him in the final accounts were much lower as compared to the actual sales. Further, i
taxes levied by Mr. Sham on the spare parts were not stated in the final accounts. Based on the under-reporting of sales the tax paid by him would also be less than what he shoul
that Mr. Sham actually earned an annual profit of Rs. 12,00,000/-.
However, while mentioning the profit in the final accounts, he under-reported the profit and stated the annual profit of Rs. 5,00,000/-. As a result, he would have to pay tax only o
the actual profit of Rs. 12,00,000/-. A summon was issued to Mr. Sham and he was called up by the competent authorities. On sustained questioning, he confessed to irregulariti
Mr. Sham even stated that he tampered with the actual sales figures and tax charged to accumulate more profit. For the financial offense committed by him, he was charged as pe
prevailing law.

Identify which of these is not an objective of Cost Accounting?

Marks: [2]
A) Ascertainment of Cost B) Preparation of financial statements
C) Cost Control and Cost reduction D) Assisting Shareholders in decision making

57) Multiple Correct Option

Mr. Sham is a sole proprietor who runs an automobile spare parts business in Delhi. Mr. Sham is into the business for the past ten years and has been successfully running his bus
maintaining his final accounts & all cost accounting records . he is also paying taxes based on the profit earning ratio or tax slabs. While ascertaining the selling price of spare pa
various taxes on spare parts, such as GST. The Income Tax Department at times randomly audits the financial files of traders. At one point of time, the Income Tax Department
auditing the financial returns of Mr. Sham. The I.T. sleuths started to extensively scrutinise Mr. Sham’s past five years financial returns. It was done to ascertain whether the fina
maintained by him are authentic or fabricated. Upon thoroughly analysing his final accounts, it was noted that Mr. Sham had been glaringly under-reporting his final accounts an
irregularities while maintaining final accounts, which implies that sales figure mentioned by him in the final accounts were much lower as compared to the actual sales. Further, i
taxes levied by Mr. Sham on the spare parts were not stated in the final accounts. Based on the under-reporting of sales the tax paid by him would also be less than what he shoul
that Mr. Sham actually earned an annual profit of Rs. 12,00,000/-.
However, while mentioning the profit in the final accounts, he under-reported the profit and stated the annual profit of Rs. 5,00,000/-. As a result, he
would have to pay tax only on Rs. 5,00,000/- than on the actual profit of Rs. 12,00,000/-. A summon was issued to Mr. Sham and he was called up

by the competent authorities. On sustained questioning, he confessed to irregularities in the final accounts. Mr. Sham even stated that he tampered with the actual sales figures an
accumulate more profit. For the financial offense committed by him, he was charged as per the
prevailing law.

On analysing the final accounts of Mr. Sham, what did Income Tax Department find? Marks: [2]
A) Mr. Sham under-reported profits B) abnormal Profits
C) there were irregularities while maintaining final accounts D) Losses

58) Multiple Correct Option

Mr. Sham is a sole proprietor who runs an automobile spare parts business in Delhi. Mr. Sham is into the business for the past ten years and has been successfully running his bus
maintaining his final accounts & all cost accounting records . he is also paying taxes based on the profit earning ratio or tax slabs. While ascertaining the selling price of spare pa
various taxes on spare parts, such as GST. The Income Tax Department at times randomly audits the financial files of traders. At one point of time, the Income Tax Department
auditing the financial returns of Mr. Sham. The I.T. sleuths started to extensively scrutinise Mr. Sham’s past five years financial returns. It was done to ascertain whether the fina
maintained by him are authentic or fabricated. Upon thoroughly analysing his final accounts, it was noted that Mr. Sham had been glaringly under-reporting his final accounts an
irregularities while maintaining final accounts, which implies that sales figure mentioned by him in the final accounts were much lower as compared to the actual sales. Further, i
taxes levied by Mr. Sham on the spare parts were not stated in the final accounts. Based on the under-reporting of sales the tax paid by him would also be less than what he shoul
that Mr. Sham actually earned an annual profit of Rs. 12,00,000/-.
However, while mentioning the profit in the final accounts, he under-reported the profit and stated the annual profit of Rs. 5,00,000/-. As a result, he would have to pay tax only o
the actual profit of Rs. 12,00,000/-. A summon was issued to Mr. Sham and he was called up by the competent authorities. On sustained questioning, he confessed to irregulariti
Mr. Sham even stated that he tampered with the actual sales figures and tax charged to accumulate more profit. For the financial offense committed by him, he was charged as pe
prevailing law.
What was the reason for Mr. Sham to under-report profit? Marks: [2]
A) he admitted he had tampered with actual sales B) tax charged to garner more profit.
C) Losses in the Business D) Uncontrolled Transactions

59) Multiple Correct Option

Mr. Sham is a sole proprietor who runs an automobile spare parts business in Delhi. Mr. Sham is into the business for the past ten years and has been successfully running his bus
maintaining his final accounts & all cost accounting records . he is also paying taxes based on the profit earning ratio or tax slabs. While ascertaining the selling price of spare pa
various taxes on spare parts, such as GST. The Income Tax Department at times randomly audits the financial files of traders. At one point of time, the Income Tax Department
auditing the financial returns of Mr. Sham. The I.T. sleuths started to extensively scrutinise Mr. Sham’s past five years financial returns. It was done to ascertain whether the fina
maintained by him are authentic or fabricated. Upon thoroughly analysing his final accounts, it was noted that Mr. Sham had been glaringly under-reporting his final accounts an
irregularities while maintaining final accounts, which implies that sales figure mentioned by him in the final accounts were much lower as compared to the actual sales. Further, i
taxes levied by Mr. Sham on the spare parts were not stated in the final accounts. Based on the under-reporting of sales the tax paid by him would also be less than what he shoul
that Mr. Sham actually earned an annual profit of Rs. 12,00,000/-.
However, while mentioning the profit in the final accounts, he under-reported the profit and stated the annual profit of Rs. 5,00,000/-. As a result, he would have to pay tax only o
the actual profit of Rs. 12,00,000/-. A summon was issued to Mr. Sham and he was called up by the competent authorities. On sustained questioning, he confessed to irregulariti
Mr. Sham even stated that he tampered with the actual sales figures and tax charged to accumulate more profit. For the financial offense committed by him, he was charged as pe
prevailing law.
Identify the actual profit earned by Sham & reported profit. Marks: [2]
60) Multiple Correct Option
Mr. Sham is a sole proprietor who runs an automobile spare parts business in Delhi. Mr. Sham is into the business for the past ten years and has been successfully running his bus
maintaining his final accounts & all cost accounting records . he is also paying taxes based on the profit earning ratio or tax slabs. While ascertaining the selling price of spare pa
various taxes on spare parts, such as GST. The Income Tax Department at times randomly audits the financial files of traders. At one point of time, the Income Tax Department
auditing the financial returns of Mr. Sham. The I.T. sleuths started to extensively scrutinise Mr. Sham’s past five years financial returns. It was done to ascertain whether the fina
maintained by him are authentic or fabricated. Upon thoroughly analysing his final accounts, it was noted that Mr. Sham had been glaringly under-reporting his final accounts an
irregularities while maintaining final accounts, which implies that sales figure mentioned by him in the final accounts were much lower as compared to the actual sales. Further, i
taxes levied by Mr. Sham on the spare parts were not stated in the final accounts. Based on the under-reporting of sales the tax paid by him would also be less than what he shoul
that Mr. Sham actually earned an annual profit of Rs. 12,00,000/-.
However, while mentioning the profit in the final accounts, he under-reported the profit and stated the annual profit of Rs. 5,00,000/-. As a result, he would have to pay tax only o
the actual profit of Rs. 12,00,000/-. A summon was issued to Mr. Sham and he was called up by the competent authorities. On sustained questioning, he confessed to irregulariti
Mr. Sham even stated that he tampered with the actual sales figures and tax charged to accumulate more profit. For the financial offense committed by him, he was charged as pe
Identify the measure issues in a case. Marks: [2]
A) 1,000,000 B) 50,000,00
C) 1,200,000 D) 500,000
A) under-reporting final accounts B) GST
C) Tax returns D) gross irregularities while maintaining final accounts