Practice Test

Q1) Money value of the reputation of business is known as a _______.
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Q2) Surplus of income over expenses is __________.
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Q3) A commodity in which a trader deals is known as _________.
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Q4) Heavy advertising expenditure for launching a new product is called as ________.
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Q5) Expenditure incurred on purchase of fixed asset is _________.
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Q6) Accounts must be honestly prepared and they must disclose all material information is known as _____.
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Q7) The immediate recognition of loss is supported by principle of _________.
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Q8) Concept which provides a line between present and future is known as ________.
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Q9) Amount which is not recoverable from customers is known as ________.
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Q10) Totalling of journal or ledger is called as ________.
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Q11) Excess of gross profit over operating expenses is called _______.
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Q12) If total assets is Rs. 4,00,000 & outside liabilities are Rs. 2,00,000. Calculate owner equity (capital)
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Q13) If total assets is Rs. 3,00,000 & outside liabilities are Rs. 60,000. Calculate creditors equity (liabilities)
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Q14) If the capital of business is Rs. 40,000 and creditors Rs. 30,000. Calculate total equity (Assets) _______
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Q15) Expenditure incurred during the course of ordinary activities of business and the benefit is exhausted within a year is called as _________.
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Q16) An expenditure which is revenue in nature but the benefit of which is not exhausted within one year is called as
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Q17) _______ concept assumes that the business will continue to exist until it is liquidated.
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Q18) ______ Deals with accounting principles related to valuation of fixed assets.
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Q19) Classification of Cash flows is explained in ______.
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Q20) Book-keeping is a branch of accountancy. Show Answer

Q21) S-6 deals with disclosure of accounting policy related to depreciation of fixed assets. Show Answer

Q22) AS-22 deals with the recognition of revenue arising out of normal course of business activities. Show Answer

Q23) Revenue related to accounting period should be recorded in books even if it is not received. Show Answer

Q24) Trade discount is calculated on net price. Show Answer

Q25) Trade discount is not recorded separately in the books of accounts. Show Answer

Q26) Cash discount is calculated on net price. Show Answer

Q27) Debtor is a person to whom we owe money for the goods and services. Show Answer

Q28) Property of any kind owned by is a businessman. Show Answer