Quiznetik

Financial Accounting | Set 7

1. Receipts and payment account contains

Correct : B. All receipts and payments

2. Balance of receipts and payments account represents

Correct : A. Cash in hand or at bank

3. Income and expenditure account is a ________

Correct : B. Nominal

4. Any profit on sale of a cricket bat of a club will be taken to ________

Correct : A. Income and expenditure( credits side)

5. Educational institutions are

Correct : B. Non profit organizations

6. Non profit organizations trial balance shows

Correct : C. Equal balance

7. Receipts and payment accounts, I & E account and balance sheet are the financial statement of

Correct : D. Nonprofit organization

8. Purchase of assets are entered in nonprofit organization’s book is called

Correct : A. Stock register

9. Receipts and payment account is a ________ account

Correct : B. Real

10. In a non profit organizations cashbook shows________ in its debit side

Correct : C. Receipts

11. Receipts and payment account begins with opening balance of

Correct : D. Cash

12. Receipts and payment accounts includes all receipts and payments of

Correct : B. Revenue nature

13. Receipts and payment accounts records all receipts and payments of

Correct : D. All of these

14. While preparing the final a accounts of non trading concerns where do you show receipts and payments of special nature

Correct : A. Balance sheet

15. What does the balance of income and expenditure account shows

Correct : D. Surplus or deficit

16. Donation of Rs 1000 is

Correct : A. Income

17. Specific donation of Rs 1000 is

Correct : B. Capital

18. Donation which is given as per will is known as

Correct : C. Legacy

19. Loss on sale of asset is taken to

Correct : B. Income and expenditure account

20. Honorarium is taken to

Correct : B. Income and expenditure account

21. Honorarium is

Correct : A. Revenue income

22. Sales of grass in the case of a sports club is

Correct : B. A revenue receipts

23. Life membership fees received by a club is treated as

Correct : B. Capital receipts

24. The system of keeping incomplete record is termed as

Correct : C. Single entry system

25. The trial balance of the accounts of incomplete records shows

Correct : D. none of these

26. Opening statement of affairs is prepared to find out

Correct : A. opening capital

27. In capital comparison method gross profit=

Correct : B. excess of closing capital over opening capital

28. Incomplete records are maintained usually by a

Correct : C. sole trader

29. Creditors account is prepared to ascertain

Correct : A. cash purchases

30. To find out credit sales which account should be prepared

Correct : A. debtors account

31. Cash paid to creditors + closing creditors – opening creditors =

Correct : C. credit purchases

32. Bills receivable as endorsed is debited to

Correct : A. creditors account

33. Bills payable honored during the year will be debited to ______

Correct : B. bills payable

34. Cash paid to creditors can be calculated from

Correct : B. creditors account

35. Bills payable dishonored during g the year will be credited to

Correct : A. bills payable

36. Rent and rates are apportioned to different departments on the basis of

Correct : A. floor area occupied

37. The turn over ratio is used for the allocation of

Correct : B. bad debts

38. Provision for unrealized profit with respect to stock when transfers are affected at transfer price is to be charged to

Correct : D. general profit and loss account

39. Branch account under debtors system is a _______ account

Correct : B. nominal

40. Branch account under stock and debtors system is a ________ account

Correct : A. real

41. When branch A sent goods to branch B in the books of branch A debit is given to

Correct : A. head office account

42. Goods sent by the head office to the branch but not received by the branch before the close of financial year are credited by head office to

Correct : A. branch account

43. When a branch purchases fixed assets and the assets account is to be kept in the books of the head office, the branch makes the following entry

Correct : A. debits head office credits bank

44. Depreciation on branch assets under debtors system is

Correct : A. not shown separately in branch account

45. Stock reserve in relation to closing stock appears

Correct : A. on the debit side of branch account

46. Branch adjustment account is in the nature of ______

Correct : A. nominal

47. Cash remitted by branch but not received by the head office is debited by the head office to _____

Correct : B. cash in transit

48. Goods sent by branch X to branch Y will be debited to ______

Correct : A. branch Y

49. Under hire purchase system depreciation is charged:

Correct : A. on cash price

50. Hirer charges depreciation on

Correct : B. cash price

51. What is transferred to hirer under hire purchase system

Correct : B. possession of assets

52. Hire purchase act is

Correct : C. 1972

53. The sale of goods act is applicable in

Correct : B. Cash purchases

54. What is transferred to hirer under installment payment system

Correct : C. ownership and possession of asset

55. Which account is prepared to find out the amount of closing stock

Correct : C. memorandum stock account

56. In foreign branch fixed asset shall be converted at

Correct : A. opening rate

57. By what rate the balance of head office account is converted in foreign branch

Correct : D. none of these

58. Excess of asset over liability is called

Correct : C. capital

59. Following records are made in single entry system , give correct answer

Correct : C. records in cashbook and posting of only personal accounts in ledger

60. Meaning of single entry system of book keeping is

Correct : B. incomplete double entry system

61. Single entry system of book keeping system

Correct : C. is incomplete system

62. The liabilities and assets respectively are rs 87000 and rs 92000.amount of difference will be

Correct : D. none of these

63. To find out the opening and closing capitals statement of affairs are prepared

Correct : B. two

64. In which book the transactions are recorded originally

Correct : C. journal

65. Floating asset is known as

Correct : B. current assets

66. As per the cost of concept an asset is recorded at its

Correct : B. actual cost

67. The business will continue to operate for an indefinitely long period in the future, unless there is a good evidence to the contrary this assumption is related to

Correct : D. none of these

68. Which book the work classification is done

Correct : B. ledger

69. A person who owes money to the firm is called

Correct : A. Debtors

70. Debit the losses and expenses and credit the gain and income is applicable to ______

Correct : C. Nominal account

71. Trade mark account is

Correct : A. Real account

72. Goodwill is a

Correct : C. Real account

73. Purchase goods from ram this is a

Correct : B. Credit purchase

74. Sold machinery worth Rs 10000 to Ramesh.it is entered in the

Correct : D. Machinery account

75. Return outwards book is known as

Correct : A. Purchase return journal

76. Debt notice prepared by the purchase of goods when ____

Correct : A. He return the goods

77. _____ from the source document for sales returns

Correct : A. Credit note

78. A cashbook which contain only one column is

Correct : C. Simple cashbook

79. Entries come both on the debit side and credit side of cashbook called

Correct : B. Contra entries

80. In cashbooks “C” means

Correct : D. Contra

81. Three column cashbook contains

Correct : B. Cash, discount, bank

82. Small payments are entered in

Correct : B. Petty cash book]

83. Imprest system is used in

Correct : A. Petty cashbook

84. An error which violates the fundamentals of book keeping is called

Correct : D. Error of principle

85. Which error does not affect the trial balance

Correct : A. Errors of omission

86. The account to which the difference in the trial balance is temporarily placed , so that the trial balance is made totally, such an account is called

Correct : B. Suspense account

87. Journal entries passed to correct the errors are called

Correct : D. Rectifying entry

88. Errors cancelled by themselves are called

Correct : A. Compensating errors

89. Rs 280 received from Roy is credited to his account as Rs 208,this error is called

Correct : A. Compensating errors

90. A suspense account is created when the _______ of the trial balance does not agree

Correct : D. balance

91. The balance of trading account is called

Correct : C. Gross profit

92. Advertisement is a

Correct : D. Deferred revenue expense

93. Direct expenses are debited in the

Correct : B. Trial balance

94. The stock is valued at

Correct : D. Cost price or market price whichever is lower

95. Adjusted purchase means

Correct : D. Closing stock + opening stock

96. The main purpose of accounting is to provide financial info to

Correct : D. All of these

97. Which of the following is an operating expenses

Correct : B. Salary to manager

98. Branch stock is always prepared at _______ price

Correct : B. Invoice

99. Under______ system branch profit or loss is ascertained by preparing branch accounts

Correct : A. Debtors

100. Goods sent to branch account is closed by transferring the balance to_____ account

Correct : C. Trading account