Beruflich Dokumente
Kultur Dokumente
Q1. "The firm must be treated as financially separate and distinct from its' owner(s)". This
rule is known as:
3 'The accounting e This rule states th That's right. The b The balance shee
0 0 2 0 0 1
false
Bottom of Form
Top of Form
Q2. A firm buys stock for £100 by cheque and intends to sell it for £200, so the double-
entry should be:
4 The stock accoun The stock accoun The debit and cre Yes. We 'add' £1
0 0 0 2 0 1
false
Bottom of Form
Top of Form
Q3. The system whereby we make two records for each transaction is known as
(a) Balance Sheet accounting
(b) Double-entry
2 I made this phras Tw o entries for e You are on the rig This means some
0 2 0 0 0 1
false
Bottom of Form
Top of Form
Q4. Which of the following is a liability?
(a) Creditors
(b) Debtors
(c) Stock
(d) Vehicles
1 Yes. These are s These are custom Stock ow ned by Vehicles are 'fixe
2 0 0 0 0 1
false
Bottom of Form
Top of Form
Q5. A 'trade debtor' of AB ltd. can best be described as:
(a) A person or firm who bought goods from AB Ltd on credit and has not yet paid.
(b) A person or firm who borrowed money from AB Ltd in the form of a loan.
(c) A person or firm who sold goods on credit to AB Ltd and has not been paid.
1 That's right. 'Trad The lending or bo If they had sold g The lending or bo
2 0 0 0 0 1
false
Bottom of Form
Top of Form
Q6. The word 'credit' in book-keeping means:
4 It means this in ba This is incorrect i Right idea, but w r Well done. A cred
0 0 0 2 0 1
false
Bottom of Form
Top of Form
Q7. Which of the following is an example of 'revenue expenditure'?
(a) The buying of a delivery van
(d) Re-paying a loan which was taken out three years ago.
3 The benefits obta The 'five year' bit A full tank of petr This is an exampl
0 0 2 0 0 1
false
Bottom of Form
Top of Form
Q8. A firm pays £50 from its cash till to its bank account. The double-entry should be:
4 'Crediting' the ban A transaction of £ You must alw ays Correct. In book-k
0 0 0 2 0 1
false
Bottom of Form
Top of Form
Q9. Which one of the following BEST describes 'purchases'?
(a) Items bought
2 'Items bought' cou Yes. Goods boug 'Purchases' can i Fixed assets are
0 2 0 0 0 1
false
Bottom of Form
Top of Form
Q10. G.Simkins sends back stock to J.J. Fabrics (a supplier), having originally purchased
it on credit. J.J. Fabrics issued a credit note for the value of these goods. In Simkins'
books, The double-entry for this transaction should be:
3 Returns are kept This is the w rong That's right. He ow This is the w rong
0 0 2 0 0 1
Bottom of Form
For the last five questions there may be more than one correct answer. Each question carries a
total of four marks.
Top of Form
Q11. Which of the following groups might be interested in the accounts of a business?
(a) Shareholders
(c) Employees
1 1 1 1 -1 1
false
Bottom of Form
Top of Form
Q12. Which of the following are 'financial accounting' activities?
(a) Finding errors in the accounts and making the appropriate corrections.
(c) Analysing the payroll records to determine the ratio of normal pay to overtime
pay.
(d) Drawing up a 'Profit and Loss Account' for the year just ended.
1 1 1 1 -1 1
false
Bottom of Form
Top of Form
Bottom of Form
Top of Form
Bottom of Form
Top of Form
1. The accounting profession can be divided into three major categories; specifically, the practice of public
accounting, private accounting, and governmental accounting. A somewhat unique and important service
of public accountants is:
a. Financial accounting.
b. Managerial accounting.
c. Auditing.
d. Cost accounting.
2. The primary private sector agency that oversees external financial reporting standards is the:
a. Financial Accounting Standards Board.
b. Federal Bureau of Investigation.
c. General Accounting Office.
d. Internal Revenue Service.
3. Which of the following equations properly represents a derivation of the fundamental accounting
equation?
a. Assets + liabilities = owner's equity.
b. Assets = owner's equity.
c. Cash = assets.
d. Assets - liabilities = owner's equity.
4. Wilson Company owns land which cost $100,000. If a "quick sale" of the land was necessary to
generate cash, the company feels it would receive only $80,000. The company continues to report the
asset on the balance sheet at $100,000. This is justified under which of the following concepts?
a. The historical-cost principle.
b. The value is tied to objective and verifiable past transactions.
c. Neither of the above.
d. Both "a" and "b".
5. Retained earnings will change over time because of several factors. Which of the following factors
would explain an increase in retained earnings?
a. Net loss.
b. Net income.
c. Dividends.
d. Investments by stockholders.
6. Which of these items would be accounted for as an expense?
a. Repayment of a bank loan.
b. Dividends to stockholders.
c. The purchase of land.
d. Payment of the current period's rent.
7. Which of the following transactions would have no impact on stockholders' equity?
a. Purchase of land from the proceeds of a bank loan.
b. Dividends to stockholders.
c. Net loss.
d. Investments of cash by stockholders.
8. Which of the following would not be included on a balance sheet?
a. Accounts receivable.
b. Accounts payable.
c. Sales.
d. Cash.
Q.1 The value of z in the system of
equations 3x + y+2z=3, 2x-3y-z= -3 and x+
2y+ z=4 is __________.
A) Convention of Materiality
B) Convention of Conservatism
C) Convention of Consistency
A) Recording
B) Classifying
C) Communicating
D) Analyzing
A) Surplus
B) Equity
C) Income
D) Profit
A) debit, overdraft
B) credit, overdraft
C) overdraft, debit
D) overdraft, credit
A) Return Outwards
B) Purchase Allowance
C) Both A) and B)
A) Summary
B) Draft
C) Plan
D) Acceptance
A) Relevance
B) Understandability
C) Reliability
D) Comparability
B) Management Accounting
C) Cost Accounting
A) Financial Accounting
A) AS-6
B) AS-9
C) AS-10
D) AS- 11
A) Enough
B) More
C) Further
D) New
A) To bind
B) To give
C) Both A) and B)
A) Posting
B) Narration
C) Trial Balance
D) Journal
Q.15 ____ will have a separate account for each supplier, and it will show the
transactions entered in to with the suppliers
A) General ledger
B) Debtor ledger
C) Creditors ledger
A) Verifier
B) Sorter
C) Interpolator
D) Re-producer
A) Recording
B) Classifying
C) Summarizing
Q.18 According to ___, it is assumed that the business will exist for a long time
and transactions are recorded on this basis
A) Money Measurement
B) Business Entity
D) Cost Concept
B) It must be conditional
A) Ledger
B) Account
C) Journal
A) The Drawer
B) The Drawee
C) The Payee
B) Income statement
C) Either A) or B)
D) Balance Sheet
C) SCFP
Q.24 ___ is the inclusion of a degree of caution in the exercise of the judgments
needed in making the estimates required under conditions of uncertainty
A) Prudence
B) Prevarication
C) Transaction Analysis
D) Hedging
A) Financial Accounting
A) Cash
B) Credit
C) Either A) or B)
A) Money Measurement
B) Business Entity
D) Cost Concept
Q.29 ___ is a self-sufficient secondary book in the sense that all entries in the
primary books will be posted, directly or indirectly, in this ledger
A) General ledger
B) Debtor ledger
C) Creditors ledger
A) General Ledger
B) Debtor Ledger
C) Creditor’s Ledger
A) Credit
B) Debit
C) Asset
D) Liability
Q.32 Expected losses should be accounted for but not anticipated gains is the
working rule of convention of ___
A) Materiality
B) Conservatism
C) Consistency
D) Full Disclosure
A) Financial Accounting
A) Cash Transaction
B) Credit Transaction
C) Barter Transaction
Q.35 A ____ is an account book in which all the accounts are maintained
A) Voucher
B) Ledger
C) Journal
D) Journal proper
Q.36 ____ is the process of entering in the ledger the information already
recorded in the journal or in any of the subsidiary books
A) Posting
B) Narration
C) Trial Balance
D) Journal
A) Personal Account
B) Expense Account
C) Real Account
D) Nominal Account
Q.38 ___ means the information is able to directly influence the decisions
making process of the user
A) Relevance
B) Understandability
C) Reliability
D) Comparability
Q.39 ___ is the common unit, which enables various items of diverse nature to
be summed up together and dealt with
A) Money
B) Capital
C) Funds
C) Bank, customer
D) Bank, bank
A) Financial Accounting
B) Cost Accounting
C) Inflation Accounting
D) Farm Accounting
Q.43 The primary use Of storage devices are
1. Back up of programs during execution
2. Storage of programs for future use
3. Storage of information in files
4. Faster execution
A) Standard Programmes
B) Scanner
C) Flow Charts
D) Parity Bit
Q.44 ___ is the difference between the sales and cost of goods sold
A) Profit
C) Gross Profit
D) Net Profit
A) Financial accounting
B) Management accounting
C) Cost accounting
D) Book keeping
Q.46 Given ( dy / dx = y - x, with y(0) = 2, then
y(0.1) = _______ using R.K method of order 2.
A) Accrual
B) Cash
C) Both A) and B)
Q.47 If the drawee of the bill accepts the bill without any condition, the
acceptance is known as ___
A) General Acceptance
B) Qualified Acceptance
C) Draft
A) Intangible
B) Fictitious
C) Wasting
D) Liquid
B) Cheques deposited into the bank for collection and entered in the cash
book, but not collected by the bank
C) Both A) and B)
A) Cash
B) Journal
C) Suspense
D) Bank
A) Prudence
B) Prevarication
C) Transaction Analysis
D) Hedging
Q.53 ___ will have separate accounts for each customer, and it will show the
transactions entered into with the customers
A) General ledger
B) Debtor ledger
C) Creditors ledger
Q.54 ____ refers to the money or money’s worth introduced by the proprietor
of the business
A) Drawings
B) Capital
C) Inventory
D) Asset
A) Recording
B) Classifying
C) Summarizing
D) Analyzing
A) Recording
B) Classifying
C) Summarizing
D) Communicating
A) Liability
B) Asset
C) Both A) and B)
Q.60 ___ is a book of original, prime or first entry in which all the business
transactions are first entered in the specified manner in the order of dates
A) Posting
B) Narration
C) Trial Balance
D) Journal
A) EVA
B) GAPP
A) E
B) D
C) L
D) T
A) Increase in Assets
B) Decrease in Assets
A) Acquisition
B) Historical
C) Either A) or B)
D) Current
B) Balance Sheet
C) Trial Balance
D) Journal
A) Accrual
B) Cash
C) Both A) and B)
A) Liability
B) Asset
C) Both A) and B)
A) Liquid Assets
C) Shareholders Equity
D) Current Liabilities
A) Four days
B) Five days
C) Three days
D) Two days
A) Posting
B) Narration
C) Trial Balance
D) Journal
A) Bought Day
B) Invoice
C) Both A) and B)
D) Bills Receivable
Q.72 ___ concept implies that a business unit is separate and distinct from the
person who owns or controls it
A) Money Measurement
B) Business Entity
A) Punching
B) Sorting
C) Tabulation
A) SCFP
C) Balance sheet
C) Both A) and B)
A) Journal Proper
B) Bills Receivable Book
A) Posting
B) Narration
C) Trial Balance
D) Journal
A) Asset
B) Liability
C) Either A) or B)
D) Financial transaction
A) AICPA
B) ICA
C) AAA
A) Trading Account
C) Balance Sheet
D) Trial Sheet
A) AS-6
B) AS-9
C) AS-10
D) AS-11
PART B
A) Except 3
B) Except 4
C) Except 5
Q.3 State the true equations a. Liabilities + Assets = Capital b. Liabilities –
Assets = Deficiency of Capital
A) Only a
B) Only b
C) a and b
Q.4 ___ assets represent long term liquid investments that a company expects
will help it generate profits
A) Fixed Assets
B) Current Assets
C) Liquid Assets
D) Intangible Assets
A) Only 1
B) Only 2
C) Both 1 and 2
A) 1 – a, b, 2 – c, d
B) 1 – b, c, 2 – a, d
C) 1 – d, b, 2 – c, a
D) 1 – a, c, 2 – b, d
Q.7 The financial statements include 1) Profit and loss account 2) Balance
sheets 3) Statement of changes in financial position
A) 1 and 2
B) 2 and 3
C) 1 and 3
Q.8 State the True points with regards to GAAP 1) Compliance with GAAP helps
maintain creditability with creditors and stock holders 2) It reassures
outsiders that a company’s financial report accurately portrays its
financial position
A) Only 1
B) Only 2
C) 1 and 2
Q.9 EDI
Q.11 The ___ becomes the ___ after he accepts the bill
A) Drawer, Drawee
B) Drawee, Acceptor
C) Acceptor, Drawer
D) Drawee, Payee
Q.12 State the true points with regards to debt 1) Good debt refers to fully
recoverable debt 2) Bad debt refers to debt, which is not recoverable
(irrecoverable) 3) Doubtful debt refers to debt whose recovery is doubtful
A) Only 1
B) 1 and 2
C) 1 and 3
D) 1, 2 and 3
A) Except 3
B) Except 2
C) Except 4
Q.14 Say the True sentences for Mechanization: 1) Speed and accuracy 2)
Minimum cost 3) Flexible 4) To formulate and prove hypothesis
A) 1, 2, 3
B) 1, 2, 4
C) 2, 3, 4
D) 1, 2, 3, 4
A) Current Liabilities
C) Shareholder’s equity
D) Intangible liabilities
A) 1, 2, 3, 4
B) 1, 2, 3, 4, 5
C) 1, 2, 3, 4, 5, 6
D) 1, 2, 3, 5, 6
Q.18 The rent paid for fifteen months in advance is an example for ___ basis of
accounting:
A) Accrual
B) Cash
C) Both A) and B)
Q.19 All ___ in assets and ___ in liabilities represent the uses of funds
A) increases, decreases
B) decreases, increases
C) decreases, decreases
D) increases, increases
Q.21 What would be the difference of amount in the Cash Book and Bank
Balance?
A) 2000
B) 3000
C) 6000
D) 9000
B) 1- b, 2-a, 3-c
A) increases, decreases
B) decreases, increases
C) decreases, decreases
D) increases, increases
A) 1 – a, b; 3 – c, d
B) 1 – c, b; 3 – a, d
C) 1 – a, d; 3 – c, b
D) 1 – c, d; 3 – a, b
Q.26 Which of the above reasons should be entered in the “Less†part of
Bank Reconciliation Statement?
A) 1, 3 and 5
B) 2, 3 and 4
C) 2 and 4
D) 1 and 4
Q.27 Which are the true statements with respect to Double Entry System? 1) It
facilitates the comparison of purchases, sales etc. 2) It makes inclusion of
assets and liabilities in the book keeping accounts 3) It helps for
preparation of financial statements directly from the accounts 4) It makes
work easy for detection of errors and fraud 5) It is inexpensive 6) It calls for
maintaining les number of account books
A) 2, 4, 5, 6
B) 2, 3, 5, 6
C) 1, 2, 3, 4
D) 1, 2, 3, 5
A) 1 and 2
B) 1 and 3
C) 1, 2 and 3
D) Only 1
Q.29 Shareholders equity generally reflects the amount of capital the owners
invested plus any profits that the company generates that are
subsequently reinvested in the company. This is called as ___
A) Re-invested Earnings
B) Retained Earnings
C) Either A) or B)
Q.30 ___ assets are assets that are usually converted to cash within one year
A) Fixed Assets
B) Current Assets
C) Liquid Assets
D) Intangible Assets
Q.31 Which of the following statements are true? 1) Accounting principles do not
have the authoritativeness as universal principle 2) The Science of
accounting is in the time of evolution 3) The general acceptance of
accounting depends on relevance, objectivity and feasibility
A) 2, 3
B) 1, 3
C) 1, 2
A) Assets, Liabilities
C) Assets, Equity
D) Liabilities, Equity
Q.33 1) Personal Account 2) Real Account 3) Nominal Account a) Any account
that bears the name of a particular person b) Accounts of properties,
assets or things owned by a concern c) Accounts of the expenses and
losses which a concern incurs
Q.34 ABC Ltd. maintains a current account with Syndicate Bank of India. As on
31st March 2004, the bank column of its cash book showed a debit balance
of Rs. 10000. However, the bank statement shows a different balance. The
following are the reasons for such difference: 1) Cheque deposited but not
yet credited by the bank: Rs. 2000 2) Cheque issued but not yet
presented: Rs. 1000 3) Bank Charges: Rs. 2000 4) Cheque received by the
bank directly: Rs. 5000 5) Insurance premium paid by the bank as per
standing instructions not yet intimated: Rs. 2000 113. Which of the above
reasons should be entered in the “Add†part of Bank Reconciliation
Statement?
A) 1, 3 and 5
B) 2, 3 and 4
C) 2 and 4
D) 1 and 4
Q.35 Liabilities also can be classified into 1) Current liabilities 2) Fixed liabilities
3) Bank liabilities 4) Sales liabilities
A) 1 and 2
B) 1, 2 and 3
C) 1, 2 and 4
PART C
Q.1 What is the total amount to be deducted from the bank balance as per the
cash book'?
A) 75,450
B) 91,985
C) 2,15,960
A) 37485
B) 47845
C) 42485
D) 44485
A) 1140
B) 1120
C) 1160
D) 1150
Q.4 What is the gross profit b/d in the Profit and Loss Account?
A) 152000
B) 153000
C) 155000
D) 155750
Q.5 Which of the following are types of equities? 1) Cash 2) Prepaid expenses
3) Debentures 4) Loose tools 5) Bills receivable 6) Proprietorship equities 7)
Bank overdraft
A) 1, 2, 3, 5, 6
B) 1, 2, 4, 5
C) 3, 6, 7
D) 1, 2, 3, 4, 5, 6, 7
A) 21195
B) 21145
C) 21245
D) 21255
A) 2,78,275
B) 1,68,320
C) 2,95,150
B) Except 5
C) Except 3 and 5
A) 121000
B) 122000
C) 192500
D) 125000
A) 77804
B) 55260
C) 77760
D) 77882
A) 15940
B) 16055
C) 16057
D) 16172
A) Except 1 and 3
B) Except 3 and 5
C) Except 2 and 4
D) Except 2 and 5
Q.17 The different types of debtors are: 1) Trade debtor 2) Loan debtor 3)
Capital debtor 4) Debtor for asset 5) Debtor for service
A) 1, 2, 3, 4
B) 1, 2, 3, 5
C) 2, 3, 4, 5
D) 1, 2, 4, 5
Q.20 Which of the following are types of assets? 1) Cash 2) Prepaid expenses 3)
Debentures 4) Loose tools 5) Good will 6) Proprietorship equities 7) Bank
overdraft
A) 1, 2, 3, 5, 6
B) 1, 2, 4, 5
C) 3, 6, 7
D) 1, 2, 3, 4, 5, 6, 7
Q.21 What is the total amount to be added to bank balance as per the cash
book?
A) 80,700
B) 75,450
C) 1,35,200
D) None of the above
A) 328750
B) 328500
C) 278750
D) 278500
A) 185
B) 215
C) 250
D) 220
A) 123000
B) 126000
C) 125000
D) 12750
A) Except 1
B) Except 3
C) Except 5
D) All of the above
Q.26 Business firms raise funds in the following ways: 1) Additional Capital 2)
Earning Revenues 3) Profits 4) Additional Loans 5) Disposing of Assets
A) 1, 2, 3, 4
B) 1, 2, 3
C) 1, 3, 4, 5
D) 1, 2, 3, 4, 5
A) Except 1
B) Except 3
C) Except 4
Q.28 What is the Total Amount in the Profit and Loss Account?
A) 153000
B) 153500
C) 155000
D) 157500
A) 18265
B) 16765
C) 19765
D) 14765
Bottom of Form