Q1.The basic accounting postulates are denoted by –
(1) Book – keeping
(2) Concepts
(3) None of these.
(4) Accounting standards
Answer
Concepts
Q2.A concept that a business enterprise will not be sold or liquidated in the near future is known as :
(1) Economic entity
(2) Going concern
(3) None of the above
(4) Monetary unit
Answer
Going concern
Q3.The primary qualities that make accounting information useful for decision-making are
(1) Reliability and comparability
(2) Relevance and freedom from bias
(3) None of the above
(4) Comparability and consistency
Answer
Reliability and comparability
Q4.As per Income Tax Act, accounting period is :
(1) From 1st April to 31st March
(2) From 1st January to 31st December
(3) From Diwali to Diwali
(4) From 1st July to 30th June
Answer
From 1st April to 31st March
Q5The amount drawn by businessmen for his personal use is-
(1) Drawing
(2) Capital
(3) Loss.
(4) Expenditure
Answer
Capital
Q6.Meaning of credibility of going concern is:
(1) Opening of business
(2) Closing of business
(3) None of these.
(4) Continuing of business
Answer
Continuing of business
Q7.The sum of Liabilities and Capital is-
(1) Income
(2) Expense
(3) Assets.
(4) Drawings
Answer
Assets.
Q8.In India, the accounting standard board was set up in the year-
(1)1977
(2)1972
(3)1932
(4)1956
Answer
1977
Q9.Generally the duration of an Accounting period is of-
(1) 3 months
(2) 6 months
(3) 1 month.
(4) 12 months
Answer
12 months
Q10.Salary paid to partner should be:
(1) Credited to his current account
(2) Debited to his current account
(3) None of these
(4) Credited to profit & loss appropriation A/c
Answer
Credited to profit & loss appropriation A/c
Q11.Capital Expense from
(1) Decrease Liabilities
(2) Decrease Asset
(3) None of these
(4) Increase Asset
Answer
Increase Asset
Q12.Under this method, only 1 account i.e. partner`s capital account is maintained. This method is :
(1) Floating
(2) .Normal
(3) Fluctuating
(4) Fixed
Answer
Fluctuating
Q13.Arun is a Book-seller, which item will be goods for his business ?
(1) Purchase of Fan
(2) Purchase of Computer
(3) Purchase of Stationery
(4) Purchase of Furniture
Answer
Purchase of Stationery
Q14.Current Assets is
(1) Building
(2) Land
(3) Stock
(4) Machinery
Answer
Stock
Q15.Expense on installation of new machinery
(1) Capital Loss
(2) Capital Expense
(3) Revenue Loss
(4) Revenue Expense
Answer
Capital Expense
Q16.Is given to businessman when clear his payment before certain period ?
(1) Special Discount
(2) Cash Discount
(3) None of these
(4) Trade Discount
Answer
Cash Discount
Q17.Appropriations are the transactions that happen between firm and partners in the capacity of ___________
(1) Outsider
(2) Partner
(3) None of these
(4) Either A or B
Answer
Partner
Q18.A liability arises because of:
(1) Cash transaction
(2) Credit transaction
(3) Cash and credit transaction
(4) None of the options
Answer
Credit transaction
Q19.Among the following assets, which one is fictitious asset?
(1) Goodwill
(2) Debit balance of Profit &loss A/c
(3)(b) Oil wells
(4) Patents
Answer
Debit balance of Profit &loss A/c
Q20.Goods means :
(1) Commodity to be used as an asset
(2) Commodity to be bought and sold
(3) None of these
(4) Commodity to be bought but not to be sold
Answer
Commodity to be bought and sold
Q21.Current Liabilities is
(1) Debentures
(2) Creditors
(3) None of these
(4) Long-term Loan
Answer
Creditors
Q22.Repair charge of office old furniture is
(1) Capital Expense
(2) Revenue Expense
(3) None of these
(4) Both Revenue & Capital Expense
Answer
Revenue Expense
Q23.Working Capital is
(1) Current Assets + Current Liabilities
(2) Current Assets – Current Liabilities
(3) None of these
(4) Current Assets + Fixed Assets
Answer
Current Assets – Current Liabilities
Q24.Interest A/c is
(1) Real A/c
(2) Nominal A/c
(3) None of these
(4) Personal A/c
Answer
Nominal A/c
Q25.Non-current Assets is
(1) Stock
(2) Building
(3) Prepaid Expense
(4) Debtors
Answer
Building
Q26.Formula of Liquid Assets
(1) Current Assets – Current Liabilities
(2) Current Assets – Stock + Prepaid Expense
(3) None of these
(4) Current Assets + Stock + Prepaid Expense
Answer
Current Assets – Stock + Prepaid Expense
Q27.Which of the following account will be credited when interest on capital is charged against the distribution of profit?
(1) Partner`s capital account
(2) Interest account
(3) Profit & loss appropriation account
(4) Profit & loss account
Answer
Partner`s capital account
Q28.Debit word is
(1) Latin Language
(2) French Language
(3) English Language
(4) Hindi Language
Answer
Latin Language
Q29.What is the amount of Interest on drawings for Ram at 10% p.a. for the Year ended 31st March 2018, if he withdrew Rs 6000 in the middle of each quarter.
(1) Rs 1200
(2) Rs 1500
(3) None of these
(4) Rs 900
Answer
Rs 1200
Q30.Capital profit is profit
(1) Sale of fixed asset
(2) Profit & Loss A/c of Business
(3) None of these
(4) Sale of goods
Answer
Sale of fixed asset
Q31.Which of the following is not a tangible asset ?
(1) Goodwill
(2) Motor Car
(3) Building
(4) Stock
Answer
Goodwill
Q32.Building A/c is related to
(1) Real A/c
(2) Personal A/c
(3) None of these
(4) Nominal A/c
Answer
Real A/c
Q33.Trade discount is :
(1) Allowed at the time of sale of goods
(2) Allowed at the time of receiving payment
(3) Allowed in all the cases)
(4) Both ‘A’ and ‘B’
Answer
Allowed at the time of sale of goods
Q34.Cash discount is :
(1) Received at the time of making payment
(2) Allowed at the time of sale of goods
(3) All the above
(4) Received at the time of purchase of goods
Answer
Received at the time of making payment
Q35.What change does profit makes to capital?
(1) Profit gets added to the capital
(2) All of these
(3) Profit gets reduced from capital
(4) Profit has no change to capital
Answer
Profit gets added to the capital
Q36.Investment A/c is related to
(1) Real A/c
(2) Personal A/c
(3) None of these
(4) Nominal A/c
Answer
Real A/c
Q37.Under ___ method, the balance of the capital account fluctuates from year to year.
(1) Current account
(2) Fixed capital account
(3) Floating capital account
(4) Fluctuating capital account
Answer
Fluctuating capital account
Q38.Which of the following is not a current asset ?
(1) Debtors
(2) Prepaid Expenses
(3) Bills Receivable
(4) Furniture
Answer
Furniture
Q39.During the lifetime of an entity accounting produce financial statements in accordance with which basic accounting concept:
(1) Matching
(2) Conservation
(3) None of the above
(4) Accounting period
Answer
Accounting period
Q40.Salary A/c is related to
(1) Real A/c
(2) Personal A/c
(3) Capital A/c
(4) Nominal A/c
Answer
Nominal A/c
Q41.The Trading and Profit and Loss Account is prepared under which attribute of accounting:
(1) Recording
(2) Summarising
(3) Analysis and Interpretation
(4) Classifying
Answer
Summarising
Q42.Identified and measured economic events should be recorded in _ order.
(1) Financial
(2) Chronological
(3) Monetary
(4) Proper
Answer
Chronological
Q43.Which of the following statements is correct:
(1) Accounting is a part of book-keeping.
(2) Book Keeping is a part of Accounting.
(3) Book keeping is not a part of accounting.
(4) The term book-keeping and accounting can be used interchangeably.
Answer
Book Keeping is a part of Accounting.
Q44. IFRS (International Financial reporting standards) are based on:
(1) Historical cost
(2) Fair value
(3) None of the options
(4) Both historical cost and fair value.
Answer
Fair value
Q45.IFRS are:
(1) Rule based accounting standards
(2) Principles based accounting standards
(3) None of the options
(4) Partially rule and partially principles
Answer
Principles based accounting standards
Q46.IAS adopted by IASB and still in force are:
(1)41
(2)29
(3)10
(4)9
Answer
29
Q47.IASB (International Accounting Standards Board) upon coming into existence has adopted:
(1) Some IAS and SIC
(2) All IAS and SIC (Standing Interpretation Boar
(3) None of the IAS and SIC
(4) None of the options
Answer
All IAS and SIC (Standing Interpretation Boar
Q48. A liability arises because of:
(1) Cash transaction
(2) Credit transaction
(3) Cash and credit transaction
(4) None of the options
Answer
Credit transaction
Q49.Which one of the following statement is correct?
(1) Income = Expenses – Revenue.
(2) Income = Revenue Expenses.
(3) Income= Profits – Expenses.
(4) Expenses = Income – Revenue.
Answer
Income = Revenue Expenses.
Q50. The sum of Liabilities and Capital is-
(1) Income
(2) Expense
(3) Assets.
(4) Drawings
Answer
Assets.
Q51. In India, the accounting standard board was set up in the year-
(1)1977
(2)1972
(3)1932
(4)1956
Answer
1932
Q52. Meaning of credibility of going concern is :
(1) Opening of business
(2) Closing of business
(3) None of these.
(4) Continuing of business
Answer
Opening of business
Q53. During the lifetime of an entity accounting produce financial statements in accordance with which basic accounting concept:
(1) Matching
(2) Conservation
(3) None of the above
(4) Accounting period
Answer
Accounting period
Q54.When information about two difference enterprises have been prepared presented in a similar manner the information exhibits the characteristic of:
(1) Relevance
(2) Verifiability
(3) None of the above
(4) Reliability
Answer
None of the above