2. Long term assets having no physical existence but, possessing a value are called
Correct : A. Intangible assets
3. The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as
Correct : A. Current assets
4. The debts which are to be repaid within a short period (a year or less) are referred to as,
Correct : A. Current Liabilities
5. The following is not a type of liability
Correct : A. Short term
6. Any written evidence in support of a business transaction is called
Correct : D. Voucher
7. The accounts that records expenses, gains and losses are
Correct : C. Nominal accounts
8. Real accounts records
Correct : B. Dealings in commodities
9. Which accounting concept satisfy the valuation criteria?
Correct : A. Going concern, Realisation, Cost
10. A trader has made a sale of Rs.75,500 out of which cash sales amounted to Rs.25,500. He showed trade
receivables on 31-3-2014 at Rs.25,500. Which concept is followed by him?
Correct : C. Accrual
11. A trader purchases goods for Rs. 2500000, of these 70% of goods were sold during the year. At the end of 31st December 2009, the market value of such goods were Rs. 500000. But the trader recorded in his books for Rs. 750000. Which of the following concept is violated.
Correct : B. Conservatism
12. The proprietor of the business is treated as creditor for the capital introduced by him due to_____
concept.
Correct : C. Entity
13. Fixed assets are held by business for _____.
Correct : B. Generating revenue
14. Small items like, pencils, pens, files, etc. are written off within a year according to _____ concept.
Correct : A. Materiality
15. Business enterprise is separate from its owner according to _____ concept.
Correct : C. Entity concept
16. Debit the receiver & credit the giver is _____ account.
Correct : A. Personal
17. Cash a/c is a ______.
Correct : A. Real a/c
18. As per the Matching concept, Revenue – ? = Profit
Correct : A. Expenses
19. Which of the following is not a nominal Account?
Correct : A. Outstanding salaries Account
20. Historical cost concept requires the valuation of an asset at
Correct : A. Original cost
21. Profit and loss is calculated at the stage of
Correct : D. Summarising
22. The rule debit all expenses and losses and credit all income and gains relates to
Correct : C. Nominal accounts
23. The comparison of financial statement of one year with that of another is possible only when -------------
---concept is followed
Correct : C. Consistency
24. For every debit there will be an equal credit according to
Correct : D. Dual aspect concept
25. A trader calculated his profit as Rs.150000 on 31/03/2014. It is an
Correct : B. Event
26. Which of the following is a Real A/c?
Correct : A. Building A/c
27. Cost concept basically recognises ____.
Correct : B. Historical cost
28. Which of the following is not an internal user of management information?
Correct : A. Creditor
29. Double entry system is used in which type of accounting?
Correct : B. Financial
30. An accounting that deals with the accounting and reporting of information to management regarding the
detail information is
Correct : B. Management accounting
31. Identify which is wrong rule
Correct : B. Real account- credit what comes in
32. The nature of financial accounting is:
Correct : A. Historical
33. The main object of cost accounting is:
Correct : C. To ascertain true cost of products and services
34. Accounting principles are generally based upon:
Correct : A. Practicability
35. The system of recording based on dual aspect concept is called:
Correct : B. Double entry system
36. P & L a/c is prepared for a period of one year by following:
Correct : C. Accounting period concept
37. All those to whom business owes money are:
Correct : C. Creditors
38. Bookkeeping is a/an……………………of correctly recording of business transition.
Correct : B. Art
39. The purpose of financial accounts is reporting to
Correct : D. All of these
40. Accounting principles are divided into two types. These are ---
Correct : D. Accounting Concepts & Accounting Conventions
41. A statement containing the various ledgers balances on particular date
Correct : C. Trial balance
42. The transferring of debit and credit items from journal to the respective accounts in the ledger is called
as
Correct : B. Posting
43. The basic sequence in the accounting process can best be described as: