1. 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
2. According to which principle the same accounting
methods should be used each year:
Correct : D. Consisten
cy
3. The elements of the accounting equation are
Correct : A. Assets, Liabilities,Capital
4. Arun is a Book-seller, which item will be goods for his
business ?
Correct : D. Purchase of
Stationery
5. The expenses due but not paid is known as -
Correct : C. Outstanding Expense
6. Which is correct.
I)Dr. the receiver,Cr. the Giver
II)Dr. what goes out,Cr. what comes in
III)Dr. all Expenses,Cr.All Losses
Correct : A. Only I
7. Goods destroyed by fire should be credited to
Correct : A. Puchases A/c
8. In the books of account if a transaction is completely
deleted, will it affect the trial balance?
Correct : A. No
9. The respective normal account balances of Sales, Sales
Returns , and Discounts allowed are?
Correct : C. Credit, Debit,
Debit
10. Trial balance is not a conclusive proof of accuracy due to which errors.
I)Error of omission
II)Error of Principle
III)Error of Commission
IV)Compensatory Errors
Correct : A. All I,II,III and IV
11. Which of the following is not the external user of
accounting information?
Correct : B. Shareholders
12. refers to the order in which the various assets and liabilities are shown in the Balance Sheet.
Correct : C. Marshalling
13. If closing stock is mentioned in trial balance,Where is it
shown in Final Accounts?
Correct : B. Asset side of
Balance Sheet
14. Which one is false. I)Capital Expenditure is non recurring in nature and shown in P&L account. II)Revenue expenditure is incurred to conduct day to
day activities
Correct : B. Only I
15. Where do we show Provision of bad debts in final accounts if given in adjustments?
I)Debit side of P&L
II)Credit side of P&L
III)Deduct from Debtors in Balance Sheet
IV)Add to Debtors in Balance Sheet
Correct : A. I and III
16. Which is true. I)Fixed installation method is recognised by income tax department. II)The amount of depreciation in WDV method remains same.
Correct : B. None is true
17. Cost of machine=1,90,000 Installation=10,000 Scrap=50,000 Life=6 yrs Calculate depreciation as per
SLM method
Correct : A. 25,000
18. Machinery purchased on 1 Oct,2016 for 40,000.This machinery was sold on Dec 2017.Calculate the total depreciation charged on machinery till date if co charges 10% as per WDV method if accounts are closed on 31st March every year.
Correct : D. 4850
19. 1 oct Opening balance=400 units @Rs 20 each, 3 Oct:Purchase=300 units @Rs 10 ,5 Oct Sales=500 units.What will be total Sales value(in Rs) as per FIFO
Method?
Correct : A. Rs 9000
20. 2 oct Opening balance=200 units @Rs 15 each, 4 Oct:Purchase=500 units @Rs 10 ,5 Oct Sales=600 units.What will be Closing Inventory value (in Rs) as
per LIFO Method?
Correct : D. Rs 1500
21. Business enterprise is separate from its owner
according to concept.
Correct : C. business entity
concept
22. When proprietor withdrew cash from business for
personal use , it is known as -
Correct : A. Drawings
23. In trial balance, which accounts with is/are recorded at the credit side?
I)Sales
II)Sales return
III)Cash
IV)Loan
Correct : D. Only I and IV
24. When Salary is paid by cheque, which account is
credited.
Correct : B. Bank A/c
25. The process of transferring the debit and credit items from a journal to their respective account in the ledger
is termed as?
Correct : B. Posting
26. What are the two statements prepared for summarising the transactions?
I)Balance Sheet II)Journal III)P&L IV)Cash Book
Correct : D. Only I and III
27. Where do we show Gas and Fuel in final accounts?
Correct : A. Trading A/c
28. What are the causes of depreciation?
Correct : D. All of the
above
29. What is the formula for calculating depreciation in SLM
Method?
Correct : C. Cost -
Scrap/Useful Life
30. 4 oct Opening balance=500 units @Rs 20 each, 5 Oct:Purchase=1000 units @Rs 15 ,6 Oct Sales=500 units.What will be rate at which the sales unit will be
valued as per weighted avg method?