Practice Test

Q1) Final account include preparation of ______ Show Answer

Q2) _______ is the part of income statement ,which is prepared to ascertain the gross profit /loss for a given accounting period Show Answer

Q3) In trading account ,closing stock is shown at _____ Show Answer

Q4) _____ is the difference between the selling price and the cost price of the goods sold. Show Answer

Q5) Which of the following equation is correct? Show Answer

Q6) Which of the following equation is incorrect? Show Answer

Q7) In trading account ,closing stock is shown at cost price or Net realizable price whichever is lower. This is due application of _____ Show Answer

Q8) Gross profit or gross loss revealed by trading account is transferred to ____ Show Answer

Q9) The_____measures net profit /loss by matching revenues and expenses according to the accounting principles. Show Answer

Q10) The net profit or loss is transferred to _____ Show Answer

Q11) Which of the following principle's must be kept in mind while preparing Trading and Profit &Loss Account? Show Answer

Q12) Which of the following business entity will not prepare Trading Account? Show Answer

Q13) Generally _____ appears in trading account and _____ Appears in Profit & Loss Account Show Answer

Q14) Carriage outwards appears in ____ whereas carriage inwards appears in ____ Show Answer

Q15) The ____ is defined as " a Statement which sets out the assets and liabilites of abusiness and which serves to ascertain the financial position of the same on any particular date ' Show Answer

Q16) The total of the two sides of the balance sheet must agree because of the following equation. Show Answer

Q17) ______is prepared for ascertaining the cost of goods produced or cost od production. Show Answer

Q18) Balance of manufacturing account i.e. cost of production is transferred to ______ Show Answer

Q19) In case of final accounts of manufacturing concerns closing stock of finished goods appears in ____& _____ Show Answer

Q20) Which of the following is objective of preparation of balance sheet? Show Answer

Q21) The arrangement of assets and liabilities in accordance with a particular order is known as ___ of balance sheet. Show Answer

Q22) which of the following approach can be used for marshalling of balance sheet ? Show Answer

Q23) In ______ approach assets which are to be used for long term in the business and are not meant to be sold are presented first and assets which are most liquid such as cash in hand ,are presented at the bottom. Show Answer

Q24) In ___approach the assets are stated in balance sheet in the order in which they can be easily converted into cash and the liabilities in the order in which they have to be paid off. Show Answer

Q25) Arrange the following assets as per liquidity order . I.Cash & Bank II.Building III.Investment Iv. Stock Show Answer

Q26) Arrange the following assets as per liquidity order I Debtors II.Building III.Cash & Bank Iv. Stock Show Answer

Q27) Arrange the following assets as per permanence order I Cash & Bank II.Building III.Investment Iv. Stock Show Answer

Q28) _____ are those which are acquired for long use in the business and not meant for resale. Show Answer

Q29) _____are valueless assets but shown in the balance sheet side e.g.preliminary expenses. Show Answer

Q30) _____are those that are meant to be converted in to cash in short term. Show Answer

Q31) ______are those fixed assets which have a fixed content ,like coal in coal mine ;the value of the assets goes down as the contents are taken out. Show Answer

Q32) _____which can be immediately be converted into cash ,such as Government Securities. Show Answer

Q33) _______ are those fixed assets which cannot be seen or touched or felt. Show Answer

Q34) Goodwill is_____ Show Answer

Q35) _____ia a statement of debit & credit balances while____ is a statement of assets and liabilities. Show Answer

Q36) Which of the following statement contains all the types of account i.e.personal ,real,nominal account? Show Answer

Q37) Which of the following statement generally contains personal & real but not contain nominal accounts ? Show Answer

Q38) In which of the following closing stock does not appear? Show Answer

Q39) In which of the following opening stock does not appear ? Show Answer

Q40) _____ is an account while ____ is a statement. Show Answer

Q41) In order to prepare final account ,all nominal accounts will be transferred to trading and Profit &Loss A/c by passing journal entries which are called ____as they close the nominal accounts. Show Answer

Q42) ____ are those entries which are passed at the end of each accounting period for the purpose of various nominal and other accounts so that true net profit or loss is indicated in profit anf loss account and the balance sheet may represent a true and fair view of the financial conditions of an enterprise. Show Answer

Q43) In the case of continuing business we are required to pass an entry in the journal to brought forward all assets and liabilities as appearing in the books on the last day of the previous year .This entry is known as _____ Show Answer

Q44) While preparing final account ,to record closing stock which of the following adjustment entry will be passed? Show Answer

Q45) While preparing final account ,to record outstanding expenses which of the following adjustment entry will be passed? Show Answer

Q46) While preparing final account ,to adjust prepaid expenses which of the following adjustment entry will be passed? Show Answer

Q47) While preparing final account ,to record outstanding income which of the following adjustment entry will be passed? Show Answer

Q48) While preparing final account, to record income received in advance which of the following adjustment entry will be passed? Show Answer

Q49) While preparing final account ,to provide depreciation which of the following adjustment entry will be passed? Show Answer

Q50) While preparing final account ,to record bad debts which of the following adjustment entry will be passed? Show Answer

Q51) While preparing final account to make provision for bad debts which of the following adjustment entry will be passed? Show Answer

Q52) While preparing final account to make Provision for Discount to Debtors which of the following adjustment entry will be passed? Show Answer

Q53) As per principal of conservatism which of the following lowing provision is /are not made in accounts ? Show Answer

Q54) While preparing final account to record loss in stock due to fire or accidents which of the following adjustment entry will be passed? Show Answer

Q55) While preparing final account ,to record Commissions payable to manager- which of the following adjustment entry will be passed? Show Answer

Q56) While preparing final account ,to record goods distributed as free samples which of the following adjustment entry will be passed? Show Answer

Q57) If goods have been withdrawn by the proprietor for personal use and no entry has been passed during the year which of the following adjustment entry should be passed at the time of preparing final account? Show Answer

Q58) The adjustment entry to write off deferred revenue expenditure is _____ Show Answer

Q59) If goods sold to customers approval basis and consent is not received during the accounting periods which of the following adjustment entries are passed ? Show Answer

Q60) Goods purchasesd from creditors have been received but omitted to be recorded in accounts. In such a case ,which of the following adjustment entries should passed ? Show Answer

Q61) An amount which is allowed for the prompt settlement of debt arising out of a a sale within a specified time and calculated on a percentage basis is known as ______ Show Answer

Q62) ______ is a deduction from the list or catalogue price allowed by the wholesalers to the retailers for various reasons. Show Answer

Q63) Which of the following type of discount is not considered in acount? Show Answer

Q64) From the following Figured ascertain the gross profit Opening Stock 2,50,000 Goods Purchased 13,00,000 Freight 50,000 Closing stock 1,50,000 Sales 19,00,000 Salary 90,000 Show Answer

Q65) If gross profit ratio is 25% on cost ,it is ____% on sales Show Answer

Q66) If gross profit ratio is 25% on sales ,it is ____% on cost. Show Answer

Q67) If gross profit ratio is 50% on cost ,it is ____% on sales Show Answer

Q68) If gross profit ratio is 33.33 % on sales ,it is ____% on cost. Show Answer

Q69) If sales are Rs.40,000 ; cost of goods sold is Rs.31,000 and operating expenses are Rs.6,000 , the gross profit is_____ Show Answer

Q70) If sales are Rs.2,00,000 and the rate of gross profit on cost of goods sold is25 % then the cost of goods sold will be ____ Show Answer

Q71) From the following Figures ascertain the gross profit:Opening Stock 3,00,000Goods Purchased 12,87,000Carriage on purchase 34,500Carriage on sales 45,000Rent 75,000Closing stock 2,70,000Sales 21,10,500 Show Answer

Q72) From the following information find out the missing information Opening Stock- Rs.50,000, Closing Stock -Rs.1,50,000, Sale -Rs.16,00,000, Gross profit ratio is 25 % on sales .Purchases = ? Show Answer

Q73) Opening Stock- Rs.40,000 , Purchases -Rs.2,60,000 ,Closing Stock -Rs.20,000, Cost of goods sold ==? Show Answer

Q74) Opening Stock- Rs.40,000 , Purchases -Rs.2,60,000 ,Closing Stock -Rs.20,000, Direct Expense -Rs.50,000, Indirect expenses -Rs.35,000. Cost of goods sold ==? Show Answer

Q75) From the following information calculate net profit, Opening Stock- 15,00,000 Direct expense - 3,00,000 Selling & distribution expenses - 2,00,000 Administrative expenses - 1,00,000 Financial expenses - 50,000 Sales - 24,00,000 Gross profit ratio is 25 % Show Answer

Q76) Opening Stock- Rs.75,000 , Closing Stock -Rs.87,500, Cost of goods sold - 1,50,000 Gross profit ratio on sales -25 %from the above information calculte .Grossprofit = ?, Sales =? , Purchases =? Show Answer

Q77) Opening stock -Rs.7,00,000 ,Purchases -Rs.12,16,000, Wages-Rs.1,50,000.Goods distributed as free sample .Rs.12,000, Sales -Rs.20,00,000.Gross profit earned-25% of cost .Find out value of closing stock Show Answer

Q78) Cost of goods sold -Rs.2,00,000 Gross profit on cost -25% Salary Rs.15,000 Rent Rs.7,000 Bad debts-Rs.1,500 Deawings -Rs.2,000 Creditors -Rs.2,500 Net profit =? Show Answer

Q79) Salary paid during the year Rs.35,000 Salary outstanding on 1.4.2011 -Rs.2,500 Salary outstanding on 31.3.2012 -Rs.7,500 Net salary debited to profit and loss account for the year ended 31.3.2012 should be ______. Show Answer

Q80) Rent paid during the year Rs.1,00,000 Prepaid Rent on 1.4.2011 -Rs.25,000 Prepaid rent on 31.3.2012 -Rs.37,500 Net salary debited to profit and loss account for the year ended 31.3.2012 should be ___ Show Answer

Q81) Following information is available from the books of Mr.Z. Expenses paid during the year 1,35,000 Expenses outstanding on 1.4.2011 - 12,250 Expenses prepaid on 1.4.2011 - 15,000 Expenses outstanding on 31.3.2012 - 17,000 Expenses prepaid on 31.3.2012 - 16,750 Net expenses debited to profit and loss account for the year ended 31.3.2012 should be ___ Show Answer

Q82) Sundry debtors on 31st March ,2009 are Rs.55,200.Further bad debts are Rs.200. Provision for doubtful debts are be made on debtors @ 5% and also provision of discount is to be made on debtors @ 2% .The amount of provision of discount on debtors will be ____ Show Answer

Q83) Extract of trial balance of Mr.N is as follows :Debtors Rs.81,200 (Dr.)Provision for bad debts Rs.5,800 (Cr.)Additional information:Bad debts not provided - Rs.1,200 Provision for debt to be made at 5%Debtors will appear in balance sheet at Rs.________ Show Answer

Q84) Debtors as per trial balance -Rs.40,600 Bad debts not yet provided Rs.600 Provision for debt to be made ar 5% on sundry debtors Provision for discount on debtors to be created @ 2% Amount of provision for discount on debtors Rs._____ Show Answer

Q85) Extract of trial balance of MR.Z is as follows: Bad debts Rs.5000 (Dr) Debtors Rs.2,50,000 (Dr.) Bills receivable Rs.40,000 (Dr.) Sales Rs.12,50,000 (Cr.) Additional information : Bad debts not yet provided -Rs 3,000 Provision for debt to be made at 5% Provision for discount on debtors -2% Debtors will appear in balance sheet Rs._____ Show Answer

Q86) Extract of trial balance of Mr.Q is as follows : Sundry debtors Rs.1,00,000 (Dr.) Sundry Creditors Rs.78,000 (Cr.) Additional information: Included in sundry sebtors Rs5,000 due from Mr A.Included in sundry creditors Rs.2,000 payable to Mr A. Sundry debtors and creditors will appear in balance sheet at Rs._____& Rs.______ Show Answer

Q87) Sales include Rs.60,000 sent to Z & Co. on sale or return basis for which no approval has been received as on 31.3.2012. The cost of the goods was Rs.50,000.Which of the following treatment will be correct which preparing final accounts? Show Answer

Q88) Net Profit before charging commission to manager -Rs.2,20,000 The Manager is entitled to commission of 10% on net profit before charging such commission . The Commission payable to Manager will be -Rs______ Show Answer

Q89) Net Profit before charging commission to manager -Rs.2,20,000 The Manager is entitled to commission of 10% on net profit after charging such commission . The Commission payable to Manager -Rs______ Show Answer

Q90) Net Profit before charging commission to General & Sales manager -Rs.1,65,920 The General Manager is entitled to commission of 10% on net profit after charging such commission and commission of Sales Manager. The sales manager is entitled to commission of 5% on net profit after charging such commissions and commission of general manager. Commission payable to General Manager -Rs______ & Sales Manager -Rs.______ Show Answer

Q91) On the basis of the following information calculte the amount will appear the item Stationery used in profit and loss account for the year ending 31 st March 2012Stock of stationery on 1.04 ,2011 12,000stationery Purchased during the year ended 31st March,2012 -1,40,000Stock of stationery on 31.3.2012 - 23,200 Show Answer

Q92) On the basis of the following information calculte the amount will appear the item Stationery used in profit and loss account for the year ending 31 st March 2012 Stock of stationery on 1st April ,2011 12,000 Creditors for stationery 1st April,2011 25,600 Amount paid for stationery during the year ended 31st March,2012 -1,40,000 Stock of stationery on 31sst March ,2012 23,200 Crditors for stationery on 31st March 2012 24,000 Show Answer

Q93) From the following particulars,calculte the amount of income to be credited to profit and loss account for the year ended 31st March ,2012: 31.3.2011 31.3.2012 Outstanding income 1,500 1,200 Income received in advance 900 540 A sum of Rs.14,670 was received as income during the year ended 31 st March 2012 Show Answer