Sikkim manipal university

Authorized learning centre, Alwar LC code 03034

Practice Test- MB0041 Finance and Management Accounting
Max marks:

Time allowed:45 min

Answer the following questions carrying 1 mark each. All questions are compulsory
**** ***********************BEST OF LUCK***************************

1 . Double Entry book keeping was introduced

during ___________ century
a. 14th Century
b. 15th Century
c. 13th Century
2. The book of original entry is called
__________ .
a. Journal
b. Busing transactions
c. Original record of transactions
d. subsidiary transaction
3. When book keeping ends, ________________
commences.
a. Analytical
b. Accounting
c. Transactions
d. Repetitive
4 .Accounting principles are _______ , associated
with theory and practice of accounting
a. Doctrines
b. Convenience
c. Subjectivity
d. Practicability
5. Principles are classified as ________ and
________.
a. Concepts , control activities
b. Concepts , conventions
c. Fulfill a formality , control
activities
d. Concepts , Fulfill a formality
6. Business entity concept is also termed as
__________.
a. Separate business Unit

b. Accrual concept
c. Money measurement concept
d. Separate entity concept
7. Accrued items should be _________ to
compute profit or loss for the said period.
a. Divide
b. Added
c. Subtracted
d. Multiplied
8. All revenue expenses are charged against
.
a. No loss no profit
b. Loss
c. Profit
d. Profit or loss

9. Incomes and expenses for an accounting period

are considered to compute _____ .
a. No loss no profit
b. Loss
c. Profit
d. Profit or loss
10. When cash is received from debtors, debtors
account is ______ .
a. Credited
b. None
c. Debited
d. both a and b

11. Balance sheet is a

________________________ of affairs of a
business
a. Statement
b. Journal
c. Bank Pass Book
d. Journal Proper
12. Book of original entry is called
______________________________.
a. Cash Book
b. Journal
c. Bank Pass Book
d. Journal Proper
13. Every bill has ________ number of grace days
.
a.
b.
c.
d.

Five
Two
Four
Three

14.Cash discount allowed to customers appears an

____ side of cash book. Cash discount received
appears are ____ side of cash book.
a. Debit and Credit
b. Credit and Debit
c. Liability , Assets
d. Asset , Liability
15. Cash purchases are recorded on-_____________
side of cash book.
a. Debit
b. None
c. Credit
d. Bank Pass Book
16. Credit sales are entered in
____________________________ book.
a. Statement
b. Journal
c. Bank Pass Book
d. Sales Day
17. Ledger is also known as _____________.
a. Statement
b. Journal
c. Secondary book
d. Sales Day
18. Loss of goods as a result of fire accident is
transferred to ____ account.

a.
b.
c.
d.

Profit
Profit and loss
Loss
None

19. Ledger is regarded as

_______________________ book.
a. Secondary
b. Luxury
c. Primary
d. None
Ans: Secondary
20. Rent account is closed by debiting P & L
account and crediting ______account.
a. Personal
b. Real
c. Rent
d. Furniture
21.Trial balance is necessary to prepare
_________________________ .
a. Personal Account
b. Real Account
c. Rent Account
d. Final Account
22. Income received in advance in the current year
is ________ from the unearned item of income
received.
a. Deducted
b. None
c. Ignored
d. Added
23. Depreciation is for __________ of an asset.
a. Operating activity
b. Investing activity
c. Trading activity
d. Wear & tear/ Usage
24. Unrecovered debts are called ______.
a. Bad debts
b. Good debts
c. Worst debts
d. Unrecoverable debts
25. Gross profit is ______minus cost of goods sold.
a. Sales
b. Cost of sales
c. Cost of production
d. All