1. All the transactions measurable in the terms of money are recorded in accounts is according
to
Correct : C. money measurement concept
2. Dividing the expenditure into capital and revenue is according to
Correct : D. accounting period concept
3. While putting the value or price of an entity in financial records the lowest price is recorded
not the current price or current market value. This is known as
Correct : B. conservatism
4. Co-operative societies is an example of
Correct : A. personal account
5. Outstanding salary account is a
Correct : C. representative personal account
6. Interest earned is a
Correct : C. nominal account
7. Commission paid is a
Correct : C. nominal account
8. Trading account is a
Correct : C. nominal account
9. Profit and loss account is a
Correct : C. nominal account
10. All revenue incomes are credited to
Correct : C. profit and loss account
11. In profit and loss account, if credit is more than the debit, the difference is
Correct : A. net profit
12. The process of recording financial data upto trial balance is
Correct : A. book keeping
13. In income measurement & recognisation of assets & liabilities which of the following
concepts goes together?
Correct : A. periodicity, accural, matching
14. Interpretation means
Correct : A. explanation of meaning and significance of the data in financial statements.
15. Which of the following is wrong?
Correct : D. rent is a personal account, outstanding rent is nominal account
16. _______ is root cause for financial accounting
Correct : A. stewardship accounting
17. The proprietor of the business is treated as creditor for the capital introduced by him due
to_____ concept.
Correct : C. entity
18. Fixed assets are held by business for _____
Correct : B. generating revenue
19. Which accounting concept specifies the practice of crediting closing stock to the trading
account?
Correct : D. matching
20. Amount spent to increasing the earning capacity is a ______ expenditure
Correct : A. capital
21. Human resources will not appear in the balance sheet according to ______ concept.
Correct : C. money measurement concept
22. Provision for discount on debtors is calculated on the amount of debtors.
Correct : B. after deducting provision for doubtful debts.
23. Which of the following is not a Real Account?
Correct : C. outstanding rent a/c
24. Value of goods withdrawn by the proprietor for his personal use should be credited to ____
Correct : D. purchases a/c
25. Which of the following is incorrect?
Correct : D. outstanding expenses – current asset
26. M/s Stationery Mart will debit the purchase of stationery to _______
Correct : A. purchases a/c
27. Small items like, pencils, pens, files, etc. are written off within a year according to ___
concept.
Correct : A. materiality
28. Business enterprise is separate from its owner according to _____ concept.
Correct : C. entity concept
29. The policy of anticipate no profit and provide for all possible losses arise due to the concept
of _____
Correct : C. conservatism
30. According to which concept, the proprietor pays interest on drawings
Correct : C. entity concept
31. Cost concept basically recognises ____
Correct : B. historical cost
32. If the Market value of closing Inventory is less than its cost price, inventory will he shown
at ____
Correct : A. marketable value
33. The Market price of good declined than the cost price. Then the concept that plays a key
role is ____
Correct : C. realization
34. Fixed assets are double the current assets and half the capital. The current assets are Rs.3,00,000 and investments are Rs.4,00,000. Then the current liabilities recorded in balance
sheet will be
Correct : B. 1,00,000
35. Which of the following provide frame work and accounting policies so that the financial
statements of different enterprises become comparable.
Correct : B. accounting standards
36. Which of the following factor is not considered while selecting accounting policies?
Correct : C. accountancy
37. Debit the receiver & credit the giver is _____ account
Correct : A. personal
38. Cash a/c is a ______
Correct : A. real a/c
39. As per accrual concept, which of the followings is not true
Correct : C. sales + gross profit = revenue
40. Mr. X sold goods to Mr. Y ask Mr. X to keep the goods with him for some time
Correct : A. symbolic delivery
41. If nothing is written about the accounting assumption to be followed it is presumed that
Correct : B. they have not been followed
42. Capital A/c is a _______ A/c.
Correct : A. personal
43. Cash A/c is a ________ A/c.
Correct : B. real
44. The principle “Debit the receiver and credit the giver” is related to_____
Correct : A. personal a/c
45. Which of the following is a Real A/c?
Correct : A. building a/c
46. Valuation of stock in accounting follows the principle of cost price or ____ whichever is
lower.
Correct : C. net realizable value
47. Which of the following is not a nominal Account?
Correct : A. outstanding salaries account
48. For every debit there will be an equal credit according to
Correct : D. dual aspect concept
49. Historical cost concept requires the valuation of an asset at
Correct : A. original cost
50. The comparison of financial statement of one year with that of another is possible only
when _______ concept is followed
Correct : C. consistency
51. Profit and loss is calculated at the stage of
Correct : D. summarising
52. Which of the following is not the main objective of accounting?
Correct : D. solving tax disputes with tax authorities
53. The rule debit all expenses and losses and credit all income and gains relates to
Correct : C. nominal accounts
54. Matching concept means
Correct : D. expenses should be matched with the revenue of the period. branch accounts
55. When Branch pays expenses for H.O. the following account is debited in the books of the
branch _______
Correct : B. h.o. a/c is debited
56. Under the stock and debtor system, Branch A/c is treated as ______
Correct : D. real a/c
57. Goods are sent to branch at cost plus 20%. If closing stock of the branch is Rs 60,000 at
invoice price, Rs ______ will be credited to stock reserve a/c.
Correct : A. rs 10000
58. HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profit
on cost comes to ______
Correct : B. 25%
59. HO sends goods to branch at invoice price after adding 25% on cost price, so profit would
be ___ % of invoice price
Correct : C. 20%
60. For finding the amount of sundry expenses paid by the branch, the following a/c should be
prepared.
Correct : C. petty cash a/c
61. If the opening balance of petty cash is Rs 1000, closing balance is Rs 500 and the petty
cash received from HO is Rs 700, then what will be the amount of sundry expenses _____
Correct : A. rs 1200
62. H.O. sent Rs 5000 as petty cash to branch during the year. Opening and closing balances of petty cash was Rs 1400 and Rs 400 respectively. Then petty expenses of the branch during
the year will be ______
Correct : D. rs 6000
63. Which of the following branches, taking into consideration the scope of authority and
responsibility, prepares its own independent final accounts?
Correct : A. independent branch
64. Opening balance of debtors a/c is Rs 1,40,000. Credit sales is Rs 10,74,000 and closing
balance of Debtors a/c is Rs 1,90,000. What is the amount of cash collection from the debtors?
Correct : A. rs 10,24,000
65. Goods in transit are shown in the balance sheet at ______
Correct : A. head office
66. H.O. has sent goods on invoice price worth Rs 2,40,000 which are 25% above cost price.
What is the loading element?
Correct : C. rs 48000
67. The adjusting entry for difference between the invoice price and cost price of goods are
shown in ________
Correct : C. branch adjustment a/c
68. Stock and debtors system is generally used when goods are sent to the branch at _____
Correct : B. invoice price
69. H.O. sent goods to branch at invoice price 50% plus on original price. How many
percentage of profit will be on Invoice price?
Correct : C. 33.33%
70. Goods sent by HO but not received by branch before the end of the year, by debiting it to
goods in transit, which account should be credited?
Correct : D. branch a/c
71. If the opening balance of debtors is Rs 16,000 and closing balance is Rs 80,000, cash received from debtors is Rs 35,000 and bad debts is Rs 1,000, then what will be the amount of
credit sales?
Correct : C. rs 100000
72. The system of keeping accounts generally adopted by small size branches are:
Correct : A. debtors system
73. Goods are supplied by the head office to dependent branches are at:
Correct : D. cost or invoice price
74. Under debtors system which account is prepared by head office to calculate profit or loss
of each branch:
Correct : C. branch account
75. Under debtors system depreciation on fixed asset is ________
Correct : C. not shown in branch a/c
76. Branch Trading &Profit & Loss A/c is only a _________ account not forming part of the
full accounting system.
Correct : B. memorandum
77. In final account system, Branch Trading and Profit & Loss A/c is prepared at ________
Correct : C. cost & invoice price
78. Under Final A/c system, the profit or loss made by the branch is determined by preparing
Correct : D. branch trading & profit &loss a/c
79. The Branch Account prepared under Final Account System is the nature of:
Correct : A. nominal account
80. Dependent branch makes:
Correct : C. cash & credit sales
81. All branch expenses such as rent, salary are paid by H.O in case of:
Correct : C. dependent branch
82. Branch Trading & Profit & Loss A/c is prepared to incorporate all _____
Correct : A. revenue items
83. The difference between goods sent by H.O. and received by branch is known as _______
Correct : A. goods in transit
84. The stock reserve for unrealised profit will be ________ to the H.O profit & Loss A/C
Correct : D. not shown
85. ____________ account is prepared to adjust the loads included in the value of opening
stock and closing stock.
Correct : B. branch adjustment
86. ____________ account shows the shortage or surplus of stock.
Correct : B. branch stock
87. The profit included in surplus or shortage of stock is transferred to ______ account
Correct : C. branch adjustment
88. The balance of branch adjustment account is transferred to _________ account
Correct : B. branch p&l
89. An ordinary partnership business can have:
Correct : B. not more than 20 partners.
90. In the absence of an agreement profit and loss are divided by partners in the ratio of:
Correct : B. equally
91. In the absence of an agreement, Interest on loan advanced by the partner to the firm is
allowed at the rate of:
Correct : A. 6%
92. Current accounts of the partners should be opened when the capitals are:
Correct : B. fixed
93. Investment in partnership is made by introducing:
Correct : C. cash or non – cash assets
94. Partnership is formed by the partners by:
Correct : C. written or oral
95. Any partner who investments in the business but does not take active part in the business
is:
Correct : B. sleeping partner
96. The written agreement of partnership is called:
Correct : A. partnership deed
97. Under fixed capital methods, profit will be credited to:
Correct : C. current a/c
98. The members of partnership firm are individually called as:
Correct : C. partner
99. Liability of partners in a partnership business is: