FINANCIALACCOUNTING

B.Com.
IIISem
MULTIPLECHOICEQUESTIONSANDANSWERS

1) Thepersonwhosendthegoodstotheagenttobesoldbyhimoncommissioniscalled
(a) Consignor
(b) Consignee
(c) Merchant
(d) Noneofthese
2) Thepersontowhomthegoodsaresentforsaleoncommissionbasisiscalled
a) Merchant
b) Consignor
c) Consignee
d) Noneofthese.
3) Thecommissiongivenbyconsignortotheconsigneefortakingadditionalrisksofrecoveryofdebts
onaccountofsalesmadeoncreditisknownas.
a) Overridingcommission
b) Delcredrecommission
c) Normalcommission
d) Noneofthese.
4) isthestatementsentbytheconsigneetotheconsignorregardingthesaleof
goodsconsigned.
a) Invoice
b) Bill
c) Accountsales
d) Noneofthese.
5) Whengoodsaresenttotheconsigneethejournalentrypassed
a) Consignmenttoa/cDr.
Togoodssentonconsignment

b)Goodsa/cDr.

Toconsignment

c)Consignmenta/cDr.

Tocash

d)Noneofthese.

6)Ashipmentofgoodsbyamanufacturertoanagenttobesoldbyhimoncommissionbasisonthe
riskandaccountoftheformercalled.

a) Consigning
b) Consignment
c) Agreement
d) Noneofthese.

7)Whatarethetwotypesoflossesofgoods.

a) Normalandabnormallosses
b) Simplelossandpureloss
c) Executiveandexecuteloss
d) Noneofthese

8)lossisduetothenatureofgoodsconsigned

(a) Actualloss
(b) Simpleloss
(c) Abnormalloss
(d) Normalloss

9)Abnormallossaccountshouldbetransferredto.

a) Profitandlossa/c
b) Tradinga/c
c) Abnormala/c
d) Noneofthese.

10)Passentryforconsignorsexpenses

a) Consignmenta/cDr
ToCash

b)Consignmenta/cDr

Tocredit

c)Casha/cDr

Toconsignee

d)Noneofthese.

11)Branchesmaybeclassifiedinto.

(a) Inlandbranchesandforeignbranches
(b) Accountbranchesandproperbranch
(c) Mainbranchandsubordinatebranch
(d) Noneofthese
12) Capitalinvestmentsforthebranchesaremadeby
a) Stateoffice
b) Centraloffice
c) Headoffice
d) Noneofthese.
13) Branchesareopenedtoincrease
a) Sales
b) Purchases
c) Bothsalesandpurchase
d) Noneofthese


14) Branchesareunitsphysicallysegregatedfromthemainofficecalled
a)Subregistraroffice
 b) Headoffice
c) CentralGovt.
d)Noneofthese.
15) Branchesnotkeepingfullsystemofaccountingcalled
a) Independentbranches
b) Partialbranches
c) Dependentbranches
d) Noneofthese
16) Brancheskeepingfullsystemofaccountingiscalled
a) Dependentbranches
b) Independentbranches
c) Simplebranches
d) Noneofthese.
17) Theaccountsforthedependentbranchesaremaintainedonlyinthebooksof
a) Headoffice
b) Suboffice
c) Mainoffice
d) Noneofthese
18) Itisasystemoffindingouttheprofitmadebyaheadofficeatabranchbypreparinganaccount
called
a) Profit&lossa/c
b) Tradinga/c
c) Brancha/c
d) Noneofthese.
19) Theheadofficepreparesbranchaccounttofindoutearnedbybranch
a) Dividend
b) Revenue
c) Capital
d) Profit
20) Thepriceofgoodssentbyheadofficetobranchatapricehigherthancostpricecalled
a) Invoiceprice
b) Actualprice
c) Unloadedprice
d) Noneofthese.
21) accountisapracticalmeansofcontrollingthestockatbranch.
a) Bankaccount
b) Branchaccount
c) Branchstockaccount
22) isanaccountpreparedtorecordallexpensesatbranch.
a) Branchaccount
b) Expenseaccount
c) Branchexpensea/c
d) Noneofthese.

23) Accountispreparedwthaviewtoascertainthegrossprofitofbranch.
a) Branchaccount
b) Branchadjustmenta/c
c) Branchexpensea/c
d) Noneofthese.
24) accountispreparedtoexercisecontroloverthebranchcash.
a) Branchaccount
b) Branchexpenseaccount
c) Branchcashaccount
 d) Noneofthese.
25) isonewhichhasbeensentbyonepartybutnotreceivedbytheotherbeforethe
closingbooksofaccounts.
a) Itemoftransaction
b) Transititem
c) Credittransaction
d) Noneofthese.
26) Transititemsmayeitherbeand.
a) Cashandcredittransit
b) Cashintransit&goodsintransit
c) Creditandbartertransit
d) Noneofthese.
27) Transactionbetweenbranchesarecalled
a) Interbranchtransactions
b) Branchtransaction
c) Internaltransaction
d) Noneofthese.
28) Theheadofficepreparesacombinedbalancesheetcalled
a) Consolidatedbalancesheet
b) Balancesheetofbranch
c) Headbalancesheet
d) Noneofthese.
29) Theprocessoftransferringitemsfrombranchbookstotheheadofficebooksandthepreparationof
consolidatedbalancesheetiscalled
a) Incorporationofbranchtrialbalance
b) Trialbalance
c) Branchbalancesheet
d) Noneofthese.
30) representsgoodssentbyheadofficetothebranchorbythebranchtothe
headofficebutnotreceivedbyother
a) Goodsintransit
b) Cashintransit
c) Bartertransit
d) Noneofthese.
31) Whichoftheseisaccountingequation?
a) Liability=Asset+Capital
b) Asset=LiabilityCapital
c) Capital=Asset+Liability
d) Asset=Liability+Capital.
32) DebitaspectisknownasandCreditaspectisknownas.
a) Receivingandgiving
b) Liabilityandasset
c) ExpenseandGains
d) IncomeandExpenses
33) Principalbooksofaccountingisknownas
a) Journal
b) Profitandloss
c) Ledger
d) Balancesheet
34) Whichbookisknownastotalofdebitandcredit
a) Balancesheet
b) Trialbalance
c) Journal
 d) Ledger
35) Tradingandprofitandlossaccountisknownasstatement.
a) Income
b) Expense
c) Position
d) Revenue

36) Balancesheetisknownasstatement
a) Positional
b) Expense
c) Income
d) Expenditure
37) Whatistheequationofgrossprofit
a) Openingstock+Purchase+DirectexpenseClosingstock
b) SalesCostofgoodssold
c) SalesreturnsCostofgoodssold
d) Sales+Costofgoodssold
38) Forwhatusearepreparingprofitandlossa/c
a) Tofindoutnetprofitornetloss
b) Tofindoutgrossprofitorgrossloss
c) Toknowclosingstock
d) Todeterminethesales
39) Whyusepreparetrialbalance
a) Tocheckarithmeticalaccuracyofa/c
b) Toknowthefinancialposition
c) Toknowthegrossprofit
d) Toknowthecapitalofthefirm
40) Whichtypeofaccountareenteredinprofit&lossa/c
a) Nominalaccount
b) Personalaccount
c) Realaccount
d) Other
41) Whichtypeofaccountisenteredinbalancesheet
a) Nominal
b) Real
c) Capital
d) Expense
42) Tradingaccountis
a) Statement
b) Positionala/c
c) Capitala/c
d) Account
43) Tradingaccountshowincomesandlosses
a) Production
b) Sales
c) Manufacturing
d) Personal
44) Balancesheetshowandoffund
a) Incomesandlosses
b) Sourcesandapplications
c) DebitandCredit
d) Assetandliability
45) Outstandingexpensesarethoseexpenseswhichhavebecameduringtheaccountingyear.
 a) Payable
b) Payed
c) Received
d) Receivable

46) Baddebtshowninadjustmentisknownas
a) Provisionforbaddebt
b) Baddebt
c) Furtherbaddebt
d) Netbaddebt
47) Interestondrawingsischargedon
a) Asset
b) Capital
c) Inventory
d) Drawing
48) Managerscommissioniscalculatedon.
a) Grossprofit
b) Notionalprofit
c) Netprofit
d) Sales
49) Whatisthejournalentryofinterestoncapital
a) Interestoncapitala/cDrTocapitala/c
b) Drawingsa/cDrTointerestondrawings
c) Profit&lossa/cDrTodiscountDebtors
d) Capitala/cDrToInterestoncapital.
50) Whichofthefollowingarenotcurrentasset
a) Salarypaidinadvance
b) Inventory
c) Preliminaryexpense
d) Temporaryinvestment
51) Prepaidexpensesistothebusiness
a) Income
b) Expense
c) Asset
d) Liability
52) Adjustmentgivenintheisknownashiddenadjustment
a) Trialbalance
b) Profit&lossa/c
c) Trading
d) Ledger
53) Accordingtoconceptitisassuredthebusinesswilllastforlongtime
a) Accountingentityconcept
b) Goingconcern
c) Moneymeasurementconcept
d) Dualaspectprincipal
54) Whichprincipalisknownasbasicprincipalofaccounting
a) verifiableobjectiveprincipal
b) matchingprincipal
c) Dualaspectprincipal
d) Materialityprincipal

55)Whichprincipalhaveseparateentity
 (a) Goingconcernconcept
(b) Moneymeasurementconcept
(c) Accountingperiodconcept
(d) Accountingentityconcept

56)Inwhichprincipalwesaythatifdepreciationischargedonfixedinstallmentbasisitshouldbe

Doneyearafteryear

a) Materialityconcept
b) Consistencyconcept
c) Conservatismconcept
d) Timelineprincipal

57)Inwhichprincipaltransactionandeventsarerecordedinthebooksofaccountandpresentedinthe
financialstatementinaccordancewiththeirsubstanceandnotlegality.

a) Substanceoverlegalform
b) Timelineprincipal
c) Materialityprincipal
d) Consistencyprincipal

58)Capitalreceiptswillnotaffectanda/c

a) Trading&profit&lossa/c
b) Tradingaccount
c) Profitandlossa/candbalancesheet
d) Tradinga/candtrialbalance

59)Onwhichconditionwemadeadjustmentforclosingstockaswellasopeningstockinthepurchase
account

a) Bybuyingcreditpurchase
b) Bybuying
c) Adjustedpurchases
d) Oninstallmentbasic

60)Amountreceivedduringthecourseoftradingoperationsarecalled

a) Capitalreceipt
b) Revenueexpenditure
c) Capitalexpenditure
d) Revenuereceipt

61)istheexpenditureofrevenuenature

a) Contingentliability
b) Capitalexpenditure
c) Revenueexpenditure
d) Deferredrevenueexpenditure

62)Expenditureincurredduringoneyearknownas

a) Contigentliability
b) Capitalexpenditure
c) Revenueexpenditure
 d) Capitalreceipt

63)Anyamountspendonincreasingtheearningcapacityofabusinessisknownas

a) Contigentliability
b) Capitalexpenditure
c) Revenueexpenditure
d) Capitalreceipt

64)Theamountsetapartfromprofitforfutureisknownas

a) Reserve
b) Capitala/c
c) Depreciationa/c
d) Cashinhand

65)Ifthegoodsaredrawnbytheproprietorforpersonaluse,theamountshoulddeductfrom
andaddtothe

a) Purchaseanddrawings
b) Salesandcapital
c) Drawingsandcashinhand
d) Cashinhandandstock

66)Adjustmentgivenintrialbalanceisknownas

a) Hiddenadjustment
b) Partlyadjustment
c) Adjustment
d) Provisionfordiscountondebtors

67)Interestischargedondrawingsmadebytheproprietoritisgaintothe

a) Proprietor
b) Employee
c) Other
d) Business

68)Anyirrecoverableportionofsundrydebtorsisknownas

a) Baddebt
b) Furtherbaddebt
c) Provisionforbaddebt
d) Provisionfordoubtfuldebts

69)Whichoneofthesearenotthefunctionofaccount

a) Recording
b) Classifying
c) Summerising
d) Statement

70)AICPAMeans

a) AmericanInstituteofCertifiedPublicAccountants
b) AmericanInstituteofCampusPredictionAbility
c) AmericanIntellectualofCertifiedPublicAccountants
 d) AmericanInstituteofCertifiedPersonAccount

71)Themodernsystemofaccountingowesto

a) AICPA
b) LucaPacioli
c) GAAP
d) Noneofthese

72)Inwhichmethodtrialbalanceispreparedwiththebalanceofledgeraccount

a) TotalamountMethod
b) BalanceMethod
c) Grouping
d) Marshalling

73)Whichoneofthesenotshownintradingaccount

a) Wages
b) Octroi
c) Closingstock
d) Carriageoutward

74)Whichoneofthesenotshownonprofit&lossa/c

(a) Rent
(b) Baddebt
(c) Wages
(d) Salaries

75)Whichoneislistofallaccountbalances

a) Balancesheet
b) Ledger
c) Profitandlossa/c
d) Trialbalance

76)Rentpaid,salarypaidwhichtypeofexpenditure

a) Capitalexpenditure
b) Revenueexpenditure
c) Deferredrevenueexpenditure
d) Capitalreceipt

77)Liabilityforpartlypaidinvestmentwhatisthis

a) Capitalexpenditure
b) Revenueexpenditure
c) Deferredrevenueexpenditure
d) Contingentliability


78)Theamountofreservedeductedfromthe

a) Grossprofit
b) Managerscommission
c) Netprofit
d) Noneofthese

79)Interestoncapitaliscreditedtoa/c

a) Capitala/c
b) Proprietorsa/c
c) Combinea/c
d) Interestoncapitala/c

80)PatentRightsaccountisaaccount

a) Real
b) Personal
c) Nominal
d) Fictitious
81) ExpandAICPA
(a) AmericanInstituteofCertifiedPublicAccountants
(b) AmericanInstituteofCorporatePublicAccount
(c) AccountingInstitutionsofConventionsPublicAccount.
(d) Noneofthese.
82) Recordingoffinancialtransactionsisdonein
a) Books
b) Journal
c) Trialbalance
d) Noneofthese.
83) Thepersonwhointroduceddoubleentryprinciple.
a) LucaPacioli
b) William
c) Lucas
d) Noneofthese.
84) ispreparedattheendoftheperiodtoshowthefinancialpositionofbusiness
a) Profitandlossaccount
b) Balancesheet
c) Trialbalance
d) Noneofthese
85) Apersonwhoowesmoneytothebusinessisa
a) Debtor
b) Creditor
c) Investor
d) Noneofthese

86) Paymentofmonthlyrenttolandlordis
a) Economicevent
b) Noneconomicevent
c) Substantialevent
d) Noneofthese.
87) istotheoriginalformofaccounting
a) Costaccounting
b) Managementaccounting
 c) Financialaccounting
d) Noneofthese
88) isanexampleoffixedasset
a) Receivables
b) Stock
c) LandandBuilding
d) Noneofthese.
89) Thetermdenotesthecostofservicesandthingsusedforearningrevenue
a) Income
b) Expense
c) Loss
d) Noneofthese.
90) Aisapersontowhombusinessoccursmoney
a) Creditor
b) Debtor
c) Proprietor
d) Noneofthese.
91) denotesgoodsboughtforsale
a) Sales
b) Purchases
c) Expenses
d) Noneofthese.
92) isanexampleofwastingasset
a) Land
b) Fixedasset
c) Stock
d) Mines
93) Assetsacquiredforlongtermuseinbusinesscalled
a) Currentasset
b) Fixedasset
c) Wastingasset
d) Noneofthese.
94) Thingswhicharepurchasedbybusinessforresalecalled.
a) Goods
b) Closingstock
c) Leasehousing
d) Noneofthese.
95) isthemajorsourceofrevenueofanybusiness
a) Purchase
b) Sale
c) Dividend
d) Noneofthese.
96) Atransactionisonewhereinitemsareexchangedforotheritems.
a) Cash
b) Credit
c) Barter
d) \Noneofthese.
97) representstheamountinvestedbyownerintobusiness
a) Cash
b) Stock
c) Capital
d) Noneofthese.
98) Expenditureisincurredtomaintainthebusinessortokeeptheassetsongood
workingcondition
a) Income
b) Dividend
c) Revenue
d) Noneofthese.

99) Valueofgoodsremainingattheendofaperiod
a) Openingstock
b) Closingstock
c) Stock
d) Noneofthese.
100) Returnofgoodstosupplierwhicharedefectivecalled.
a) Returnoutwards/purchasesreturns
b) Salesreturn
c) Outstandingreturn
d) Noneofthese.
101) isthematerialthingsorpossessionsofthebusiness
a) Asset
b) Liability
c) Capital
d) Noneofthese.
102) Assetshavingnophysicalexistencebutarerepresentedbyrightsincertainthingsarecalled

a) Tangibleasset
b) Intangibleasset
c) Contingentasset
d) Noneofthese
103) Assetswhichhavenorealvaluebutareshowninbooksofaccountfortechnicalreasonsare
called
a) Fixedasset
b) Currentasset
c) Fictionsasset
d) Noneofthese.
104) Assetshavingdefiniteshapeandphysicalexistencearecalled
a) Intangibleasset
b) Currentasset
c) Fictionsasset
d) Tangibleasset
105) isthegrossdecreaseintheassetsorgrossincreaseinliabilities.
a) Loss
b) Revenue
c) Profit
d) Expense
106) Amountofcashorotherassetswithdrawnbyownerforhispersonalpurposecalled

a) Capital
b) Drawing
c) Withdrawalofcash
d) Noneofthese.
107) Assetswhichareheldforashortperiodcalled
 a) Fixedasset
b) Contingentasset
c) Currentasset
d) Noneofthese.
108) conceptfacilitatesrecordingofbusinesseventsonauniformbasis.
a) Goingconcern
b) Accountingentity
c) Moneymeasurement
d) Noneofthese.

109)Theagreementbetweenbusinesshouseandtheowneroftherightiscalled

(a) PatentRight
(b) Royaltyagreement
(c) Minningagreement
(d) Copyright
110) Whoisthepersontakepropertyontheleaseagreement
a) Lessor
b) Lessee
c) Payee
d) Noneofthese
111) Whoisthepersontendstheownershiprightofproperty
a) Lessor
b) Lessee
c) Payer
d) Noneofthese
112) Minningroyaltyandpatentroyaltyarepayableonthebasisof
(a) Output
(b) Sales
(c) Outputandsale
(d) Noneofthese

113)Whicharethetwopersonsinleaseagreement

a) LessorandLessee
b) Payerandpayee
c) Draweranddrawee
d) Noneofthese

114)Whattyperoyaltytopayableonthebasisofsale

a) Minningroyalty
b) Patentroyalty
c) Copyrightroyalty
d) Noneofthese

115)Theamountofroyaltypayableisanexpensetothelesseeandisintheroyalty
account

a) Credited
b) Debited
c) Deducted
d) Noneofthese

116)Recoupingofshortworkingarisein.
 a) Future
b) Present
c) Past
d) Noneofthese

117)Inwhichstageshortworkingarise

a) Initialstageofproduction
b) Sales
c) Buyingofrawmaterials
d) Laststageofproduction

118)Whatisshortworking?

a) Excessofminimumrentoveractualroyalty
b) Belowofminimumrent
c) Equaltominimumrent
d) Abovetoroyalty

119)Whatistheanothertermofminimumrent

a) Fixedandcopyright
b) Deadrentandfixedrent
c) Patentandcopyright
d) Fixedanddeadrent

120)Excessofminimumrentoveractualroyaltyistermedas

a) Shortworking
b) Royaltysuspense
c) Deadrent
d) FixedRent

121)Royaltyisan

a) Agreement
b) Contract
c) Mutualaction
d) Noneofthese

122)Whatisthetwotypeofrecoupingofshortworking

a) Restrictedandunrestricted
b) Salesandoutput
c) Deadrentandfixedrent
d) Noneofthese

123)Therightmaybeenjoyedthroughouttheperiodofleaseagreementiscalled

a) Restricted
 b) Unrestricted
c) Deadrent
d) Fixedrent

124)Thelesseemaybepermittedtorecoupshortworkingforafewyearsonlyiscalled

(a) Unrestricted
(b) Restricted
(c) Minimumrent
(d) Noneofthese

125)Choosethecorrectone

a) Lessora/cDr

Tominimumrent

b) Minimumrenta/cDr
Tolessor
c) Shortworkinga/cDr

Toprofitlossa/c

d) Noneofthese.

126)Writetheentryofshortworkingwrittenoff

a)Shortworkinga/cDr

Toprofit&loss

b)Profit&lossa/cDr

Toroyalty

c)Profitandlossa/cDr

Toshortworking

d)Noneofthese.

127)Findouttheentryofroyaltytransferredtoprofitandlossaccount

a)Royaltyreceivablea/cDr

Toprofit&lossa/c

b)Profitandlossa/cDr

Tolesseea/c
 c)Shortworkinga/cDr

Toprofit&loss

e) Noneofthese.

128)Findtheentryofamountpaidtolandlord

(a) Banka/cDr
Tolesseea/c
b) Banka/c

Tolessora/c

c) Lessora/cDr

Tobanka/c

d)Noneofthese.

129)Royaltybasedonsaleisasellingexpenditureandsuchshouldbetransferredto
account.

a) Profitandlossa/c
b) Capitalaccount
c) Cashaccont
d) Noneofthese.

130)Choosecorrectone

a) Minimumroyalty
b) Minningroyalty
c) Lesseeislandlord
d) Noneofthese.

131)Pickuptheentryfortheamountofroyalty

a) Royaltya/cDr
ToBanka/c

b)Lessora/cDr

Toroyaltya/c

c)Royaltya/cDr

Tolessora/c

d)Noneofthese.
132)Atwhatstageshortworkinghappens.

(a) Initialstageofproduction
(b) Laststageofproduction
(c) Production
(d) Noneofthese.


133) Booksofaccountswhicharenotmaintainedaccordingtodoubleentrysystemareknownas
.
a) Completerecords
b) Incompleterecords
c) Singlerecords
d) Noneofthese.
134) Thesystemofkeepingincompleterecordisknownas
a) Singleentry
b) Doubleentry
c) Dualentry
d) Noneofthese.
135) systemismixtureofdouble,singleandnoentry.
a) Doubleentry
b) Singleentry
c) Equalentry
d) Noneofthese.
136) Insingleentrysystemthecapitalinthebeginningoftheyearisascertainedfrom.
a) Cashaccount
b) Totaldebtorsaccount
c) Totalcreditorsaccount
d) Openingbalancesheet.
137) Insingleentrysystemsalesarecomputedbyadding
a) Cashsalesandcashreceivedfromdebtors
b) Cashsalesandcreditsales
c) Creditsalesandcashreceivedfromdebtors.
d) Noneofthese.
138) Cashpaidtocreditorsundersingleentrysystemcanbeascertainedfrom
a) Totaldebtorsaccount
b) Totalcreditorsaccount
c) Balancesheet
d) Noneoftheabove.
139) Undersingleentrysystem,thecreditsalesiscomputedfromthe
a) Totalcreditorsaccount
b) Totaldebtorsaccount
c) Cashaccount
d) Balancesheetattheendoftheyear.
140) Undertheconversionmethodofsingleentrysystem,totaldebtorsaccountispreparedtofind
out
a) Totalsales
b) Totalpurchase
c) Creditpurchase
d) Creditsales.
141) Undertheconversionmethodofsingleentrysystemtotalcreditorsaccountispreparedtofind
out
a) Creditpurchase
 b) Cashpurchase
c) Totalpurchase
d) Netpurchase




142) Inbillsreceivableaccountinsingleentrysystemopeningbalance,closingbalanceandcash
receivedagainstbillsreceivableisgiventoyou,thebalanceinbillsreceivableaccountwillthen
show.
a) Creditsales
b) Creditpurchases
c) Billsreceivablereceivedduringtheyear
d) Noneofthese
143) Billspayableduringtheyeartransferredtoaccount
a) Debtorsa/c
b) Creditorsa/c
c) Billspayablea/c
d) Noneoftheabove
144) Underthenetworthmethodofsingleentrythenetprofitiscalculated
a) Fromthetradingandprofitandlossaccount
b) Bycomparingcapitalatthebeginningandcapitalattheend
c) Bystatementofaffairs
d) Noneofthese
145) Underthesingleentrysystemgenerally
a) Onlypersonalaccountsaremaintained
b) Noaccountiskept
c) Onlypersonal,cashandBankaccountsaremaintained
d) Allaccountsaremaintained.
146) Aheadofficeaccountpreparedbyanindependentbranchispurelyaccount
a) Nominal
b) Personal
c) Real
d) Noneofthese
147) Underthenetworthmethodofsingleentrythenetprofitiscalculatedasunder:
a) CapitalinthebeginningyearCapitalattheendyear
b) CapitalattheendofyearCapitalatthebeginningyear
c) Capitalattheendofyear+Drawingsmadeduringtheyearfreshcapitalintroducedduringthe
yearCapitalinthebeginningoftheyear.
d) CapitalattheendofyearDrawingsmadeduringtheyear+Freshcapitalintroducedduring
theyearCapitalinthebeginningyear.
148) Thebalanceofincome,andexpenditurea/crepresents
a) Thecashbalanceonthedate
b) Totalcashreceiptsduringtheperiod
c) Totalcashpaymentsduringheperiod
d) Excessofincomeoverexpenditureorviceversa.
149) Singleentrysystemisdefectivebecauseunderhissystemthecannotbeprepared
a) Trialbalance
b) Tradingandprofitandlossa/c
c) Balancesheet
d) Alloftheabove
150) Thesingleentrysystemcannotbeadoptedby
a) Soleproprietorship
 b) Partnershipconcern
c) Jointstockcompanies
d) Alloftheabove




151) Sales+ClosingstockPurchasesGrossprofit
a) Purchasesreturns
b) Salesreturns
c) Costofgoodssold
d) Openingstock
152) Billsreceivablethataredishonoredaredebitedto
a) Creditorsa/c
b) Debtorsa/c
c) B/Ra/c
d) Noneofthese.
153) Theopeningstatementofaffairsisusuallypreparedtoarriveatthefigureof
a) Cashinthebeginning
b) Capitalinthebeginning
c) Debtors
d) Profitduringtheyear
154) Underthenetworthmethod,thebasisofascertainingprofitisthe
a) Differencebetweentheliabilitiesontwodates
b) Differencebetweengrossassetontwodates
c) Differencebetweencapitalassetsontwodates
d) Increaseinnetworthbeforeadjustingfordrawingsandadditionstocapital
155) Interimdividendisshownin
a) PandLa/c
b) PandLappropriationa/c
c) Assetsideofbalancesheet
d) Liabilitysideofbalancesheet
156) Theminimumshareapplicationmoneyis
a) Rs.5pershare
b) 5%ofnominalvalueofshares
c) 10%ofnominalvalueofshares
d) 20%ofnominalvalueofshares.
157) Purchaseforofficefurnitureonaccountisrecordedin
a) Cashbook
b) Purchasebook
c) Generaljournal
d) Journalproper
158) Bankaccountisa
a) Personalaccount
b) Realaccount
c) Nominalaccount
d) Noneofthese
159) Connectiondemandsthataccountingstatementsshoulddiscloseallmaterialfactsforthe
benefitsoftheusers.
a) Dualaspects
b) Fulldisclosure
c) Verifiableobjectives
d) Noneofthese
160) Whenacompanyissuessharestovendorsofassetsforconsiderationotherthancashtheseare
issued
a) Atpar
b) Atadiscount
c) Atapremium
d) Anyofthese

161) Cashpaidtocreditorscanbecomputedfrom
a) Billspayablea/c
b) Statementofaffairs
c) Totaldebtorsa/c
d) Totalcreditorsa/c
162) Markouttheitemofbillspayablea/cthatistransferredtothetotalcreditorsa/c
a) OpeningbalanceB/P
b) ClosingbalanceofB/P
c) B/Pduringtheyear
d) Noneoftheabove
163) Theopeningbalanceofcreditorscanbeascertainedeitherbypreparingcreditorsa/cor
a) Casha/c
b) Openingbalancesheet
c) Billspayablea/c
d) Noneoftheabove
164) Thetotaldebtorsa/cislikelyaffectedby
a) Cashsales
b) Creditsales
c) B/Rclosingbalance
d) Alloftheabove
165) Bywhichofthefollowingwillthecasha/cnotbeaffected
a) Cashsales
b) Cashreceivedfromdebtors
c) Cashpaidtocreditors
d) Discountreceived
166) Bywhichofthefollowingwillthetotalcreditora/cnottobeaffected
a) Cashpaidtocreditors
b) Creditpurchases
c) Billspayableissued
d) Openingbalanceofbillspayablea/c
167) Theopeningstatementofaffairsisusuallypreparedtoarriveatthefigureof
a) Cashinthebeginning
b) Capitalinthebeginning
c) Debtors
d) Profitduringtheyear.
168) Billpayableissuedduringtheyearis
a) DebitedtoB/Pa/c
b) Debitedtocreditorsa/c
c) Creditedtocreditorsa/c
d) Noneoftheabove.
169) Billsreceivablethataredishonoredaredebitedto
a) Creditorsa/c
b) Debtorsa/c
c) B/R
d) Noneofthese
170) Whenclosingcapitalismorethanopeningcapitalitmeans
 a) Profit
b) Loss
c) Withdrawalofcapital
d) Noneofthese



171) Incaseofincompleterecordsapictureofalltransactionswillbeavailable.
a) Full
b) Complete
c) Partial
d) Noneofthese
172) Excessofopeningcapitaloverclosingcapitaldenotes
a) Profit
b) Loss
c) Additionalcapital
d) Withdrawalcapital
173) Theamountofcashreceivedfromdebtorscanbecomputedfromeitherfromthecashbook
a) Billsreceivablea/c
b) Debtorsa/c
c) Balancesheet
d) Noneofthese
174) Statementofaffairsispreparedtoascertain
a) Profit
b) Loss
c) Capital
d) Asset
175) Accountsfromincompleterecordsareoftencalledassystem.
a) Singleentry
b) Doubleentry
c) Singleaccount
d) Multipleentry
176) Incompleterecordsaremaintainedusuallybya
a) Company
b) Soletrader
c) Govt.
d) Nonprofitorganization
177) Profitasperaccountsfromincompleterecordsmaybeconstruedasequivalentof
a) Excessofassetoverliabilitiesatcloseofperiod
b) Excessofcapitalattheendoverthecapitalatbeginning
c) Excessofassetoverliabilitiesatthecommencementofperiod
d) Excessofcapitalatthebeginningovercapitalattheend.
178) Whatstatementwepreparetoknowthecapital
a) Statementofaffairs
b) Statementofcapital
c) Statementofbalancesheet
d) Noneofthese
179) Singleentrysystemisamixtureof
a) Doubleentry
b) Noentry
c) Singleentry
d) Alltheabove
180) Onlypersonalaccountsarekeptinsystem
 a) Puresingleentrysystem
b) Simplesingleentrysystem
c) Quasisingleentrysystem
d) Noneofthese



181) Personalandcashaccountsarekeptinsystem
a) Puresingleentrysystem
b) Quasisingleentrysystem
c) Simplesingleentrysystem
d) Noneofthese
182) isaunsystematic,unscientificandincompletesystem
a) Singleentrysystem
b) Doubleentrysystem
c) Nominalentry
d) Noneofthese.
183) Profitisonlyanestimateinthissystem
a) Nominalsystem
b) Doubleentrysystem
c) Singleentrysystem
d) Noneofthese.
184) ExpandGAAP
(a) Generallyacceptedaccountingprinciples
(b) Generallyacceptedaccountprogrammers
(c) Generalacceptableassumptionpractices
(d) Noneofthese
185) Accountingconceptsincludecertainbasic
a) Account
b) Transactions
c) Assumptions
d) Noneofthese
186) Thecomparisonofoneaccountingperiodwiththatofthepastispossiblewhenoneofthe
conceptsgivenisfollowed
a) Cost
b) Consistency
c) Goingconcern
d) Matching
187) Contingentliabilitiesareshownasafootnoteinthebalancesheetasper
accountingprinciple
a) Fulldisclosure
b) Objectivity
c) Materiality
d) Consistency
188) Statetheprinciple:whichassumedthebusinesswilllastforealongtime
a) Goingconcern
b) Materiality
c) Consistency
d) Matching
189) Transactionsinvolvingmoneyormoneysworthwillberecordedinthebookscalled
a) Cost
b) Matching
c) Moneymeasurement
 d) Consistency
190) Adjustmentmadeforoutstandingexpenses,accruedincomesetc.inthefinancialstatementsis
duetotheprinciple
a) Matching
b) Businessentity
c) Materiality
d) Consistency
191) Accordingtoconceptitisassumedeveryaspectsasdualaspectoreffects.
a) Cost
b) Materiality
c) Dualaspect
d) Noneofthese
192) Accountingequationisdevelopedwiththehelpof
a) Moneymeasurementconcept
b) Dualaspectconcept
c) Revenuerealizationconcept
d) Historicalcostconcept
193) Depreciationaccountingis
a) IAS1
b) IAS2
c) IAS3
d) IAS4
194) revenuefromsaleisrealizedwhen
a) saleismade
b) Orderisplaced
c) Cashisreceived
d) Productioniscompleted
195) Accountingprinciplesarebasedon
a) Convenienceinaccounting
b) Objectivity
c) Subjectivity
d) Practicability
196) Normallyassetsarerecordedatcostprice.Thisisbecauseof
a) Goingconcernconcept
b) Historicalconcept
c) Bothconcept
d) Noneofthese

197) Accountingentityconceptisknownas
a) Materialityconcept
b) Prudenceconcept
c) Businessentityconcept
d) Noneofthese
198) principlerequiresthatalltransactionsshouldberecordedattheir
acquisitioncost
a) Historicalcost
b) Dualaspect
c) Accountingperiod
d) Noneofthese
199) principlestatesthatcostsorexpensesofabusinessofanaccounting
periodarematchedwiththerevenueofthatperiodinordertofindprofitorloss
a) Accountingperiod
b) Revenuerealization
 c) Veritableobjective
d) Matching
200) isalsoknownasobjectiveevidenceconcept
a) Revenuerealization
b) Dualaspect
c) Verifiableobjective
d) Noneofthese

ANSWERS

1.A 2.C 3.B 4.C 5.A 6.B 7.A 8.D 9.A 10.A 11.A 12.C
13.A 14.B 15.C 16.B 17.A 18.C 19.D 20.A 21.C 22.C 23.B 24.C
25.B 26.B 27.A 28.A 29.A 30.A 31.D 32.A 33.C 34.B 35.A 36.A
37.B 38.A 39.A 40.A 41.B 42.D 43.C 44.B 45.A 46.C 47.D 48.B
49.A 50.C 51.C 52.A 53.B 54.C 55.D 56.B 57.A 58.A 59.C 60.D
61.C 62.C 63.B 64.A 65.A 66.A 67.D 68.A 69.D 70.A 71.B 72.B
73.C 74.C 75.D 76.B 77.D 78.C 79.A 80.A 81.A 82.B 83. 84.B
85.A 86.A 87.C 88.C 89.B 90.A 91.B 92.D 93.B 94.A 95.B 96.C
97.C 98.C 99.B 100.A 101.A 102.B 103.C 104.D 105.A 106.B 107.C 108.C

109.B 110.B 111.A 112.A 113.A 114.C 115.B 116.A 117.A 118.A 119.B 120.A
121.A 122.A 123.B 124.B 125.B 126.C 127.A 128.C 129.A 130.B 131.C 132.A

133.B 134.A 135.B 136.D 137.B 138.B 139.B 140.D 141.A 142.C 143.B 144.B
145.C 146.B 147.C 148.D 149.D 150.C 151.D 152.B 153.B 154.C 155.B 156.B
157.C 158.A 159.B 160.D 161.D 162.C 163.B 164.B 165.D 166.D 167.B 168.B
169.B 170.A 171.C 172.B 173.B 174.C 175.A 176.B 177.B 178.A 179.D 180.A
181.C 182.A 183.C 184.A 185.C 186.B 187.A 188.A 189.C 190.A 191.C 192.B
193.D 194.A 195.D 196.C 197.C 198.A 199.D 200.C