Practice Test

Q1) _______is used by business entities for keeping records of their monetary or financial transactions. Show Answer

Q2) Accounting is an art of recording,classifying and summarizing in a signification manner and in terms of money,transactions and events which are in part at least of a financial character and interpreting the result there of this definition is given by ____________ Show Answer

Q3) Which of the following is attribute/s of accounting ? Show Answer

Q4) _________is the language of business and used to communicate financial and orther information to different interested like creditors,investors,researchers,goverments etc. Show Answer

Q5) Accounting is __________ Show Answer

Q6) Accounting involves___________ Show Answer

Q7) _________means systematically writing down the transaction and events in account books soon after their occurrence. Show Answer

Q8) _______is the process of grouping transaction or entries of the same type at one place. Show Answer

Q9) __________involves the preparation of reports and statements from the classified data under-standable and useful to management and other interested parties. Show Answer

Q10) The statements prepared by the summarizing pro-cess is known as_____which will show the profit or loss made by the business over a period of time and the total capital employed in the business. Show Answer

Q11) Accounting records only those transactions and events which are of________ Show Answer

Q12) Which of the following is/are the branch of accounting ? Show Answer

Q13) which of the following is/are not the branch of accounting ? Show Answer

Q14) Which of the following is the branch of accounting ? Show Answer

Q15) Which of the following is/are the main function of accounting ? Show Answer

Q16) Which of the following is/are the main function of accounting ? Show Answer

Q17) Which of the following is/are the advantage of accounting ? Show Answer

Q18) Which of the following is/are the advantage of accounting ? Show Answer

Q19) Which of the following is/are NOT the advantages of accounting ? Show Answer

Q20) Which of the following is/are NOT the advantages of accounting ? Show Answer

Q21) Which of the following is/are the limitations of accounting ? Show Answer

Q22) Which of the following is/are not limitation of the accounting? Show Answer

Q23) Which of the following is/are the limitations of accounting ? Show Answer

Q24) ________is mainly concerned with recording of financial data relating to the business operation in a significant and orderly manner. Show Answer

Q25) ________Covers procedural aspects of accounting work and includes record keeping function. Show Answer

Q26) Book-keeping is concerned with the_______of transaction while accounting is concered with the_______of the recorded transactions. Show Answer

Q27) _______constitutes the base for accounting. Show Answer

Q28) Financial statement do not form part of book keeping. Show Answer

Q29) Financial position of the business is ascertained on the basis of____ Show Answer

Q30) _________it is a system in which accounting entries are made only when cash is received or paid. Show Answer

Q31) __________is a system in which transaction are recorded on the basis of amounts having become due for payment or receipt. Show Answer

Q32) which of the following has no relevance whether the receipts pertain to previous period or future period ? Show Answer

Q33) _________is incompatible with the matching principle income derermination. Show Answer

Q34) _________attempt to record the financial effects of the transaction,events,and circumstances of an enterprise in the period in which they occur rather than recording them in period in which cash is received or paid by the enterprise. Show Answer

Q35) Cash system of accounting is suitable in which of the following cases ? Show Answer

Q36) Doctor,lawyers,firms of chartered accountants/company secretaries generally follows______of accounting. Show Answer

Q37) which of the following is/are the essential features of accrual basis of accounting ? Show Answer

Q38) Accounting is of primary importance to the______ Show Answer

Q39) Financial statements can be used by_______ Show Answer

Q40) which of the following are internal users of accounting information's ? Show Answer

Q41) which of the following is/are external users of accounting information's ? Show Answer

Q42) which of the following would be considered as external users of accounting information's ? Show Answer

Q43) Select the odd one in relation to users of accounting information's ? Show Answer

Q44) Regulatory agencies interested as users of acccounting information's includes______ Show Answer

Q45) Which of the following is/are characteristics of accounting information ? Show Answer

Q46) Which of the following is/are characteristics of accounting information ? Show Answer

Q47) Which of the following is/are not characteristics of accounting information ? Show Answer

Q48) Which of the following is/are characteristics of accounting information ? Show Answer

Q49) Which of the following is/are can be treated as role of accountant ? Show Answer

Q50) Which of the following is/are cannot be treated as role of accountant ? Show Answer

Q51) Which of the following is/are can be treated as role of accountant ? Show Answer

Q52) ______are defined as basic assumption on the basis of which financial statements of a business entity are prepared. Show Answer

Q53) Which of the following is/are the common accounting concepts ? Show Answer

Q54) Which of the following is/are the common accounting concepts ? Show Answer

Q55) Which of the following is/are the common accounting concepts ? Show Answer

Q56) According to_______business is treated as an entity separate from its owners,creditors,managers and others. Show Answer

Q57) According to_________the various assets acquired by a concern or firm should be recorded on the basis of the actual amounts involved or spent. Show Answer

Q58) _________holds that accounting is a measurement and communication process of the activities of the firm that are measurable in monetary terms. Show Answer

Q59) As per______business transaction are recorded on the assumption that the business will continue for a long-time Show Answer

Q60) If the assumption of the going concern is not valid,the financial statements should_________ Show Answer

Q61) on the basis of___concept, a clear distinction is made between assets and expenses. Show Answer

Q62) Non-monetary events like,death,dispute,sentiments,efficiency etc. are______in the books,even though these may have a great effect. Show Answer

Q63) _______form of business organization is the exception to the going concern concept. Show Answer

Q64) According to "business entity concept" business is treated as separate from its____________ Show Answer

Q65) ______concept is based on double entry book keeping which means that accounting system is set up in such way that a record made of the two aspects of each transaction that affects the records. Show Answer

Q66) The transaction recorded through accounting equation are based on_______ Show Answer

Q67) According to_______revenue is recognized only when a sale is made. Show Answer

Q68) Which financial statement represents the accounting equation,Assets=Liabilities+Owner's equity. Show Answer

Q69) __________period is normally adopted for accounting purpose. Show Answer

Q70) As per______concepts in order to determine the profit earned or loss suffered by the business in a particular defined accounting period,it is necessary that expenses of the period should be matched with the revenues of that period Show Answer

Q71) Going concern concept is not followed by_____ Show Answer

Q72) Which of the following is/are accounting convention ? Show Answer

Q73) According to the_____accountants should report only what is material and ignore insignificant details while preparing the final accounts. Show Answer

Q74) As per________apart from statutory requirements goods accounting practice also demands all significant information should be fully and fairly disclosed in the financial statements. Show Answer

Q75) As per_________the accountant should not anticipate income and should provide for all possible losses. Show Answer

Q76) As per________ if the accountant is faced with the choice between two methods of valuing an asset the accountant should choose a method which leads to the lesser value. Show Answer

Q77) Provisions for bad debts in respects of doubtful debts are made due to______ Show Answer

Q78) Closing stock in hand valued at lower of cost or market value due to________ Show Answer

Q79) Which of the following is an accounting convention ? Show Answer

Q80) As per convention of conservatism,if the accountant is faced with the choice between two methods of valuing______the accountant should choose a method which leads to the lesser value. Show Answer

Q81) Closing stock is valued at market price or cost price whichever is less as per____ Show Answer

Q82) ________Principle requires that the same accounting method should be used from one accounting period to the next. Show Answer

Q83) Which of the following is not an accounting convention ? Show Answer

Q84) Acconting standards (AS)are written policy documents may be issued by_________ Show Answer

Q85) Accounting standards are________ Show Answer

Q86) Accounting standards cover the aspects of______of accounting transaction in the financial statements. Show Answer

Q87) In india accounting standards are issued by______ Show Answer

Q88) Accounting standards are issued for the purpose of_________ Show Answer

Q89) The Institute of Chartered Accountants of india (ICAI) constituted the______with a view to harmonizing the diverse accounting policies and practices in use in india. Show Answer

Q90) The Institute of Chartered Accountants of India (ICAI) constituted the Accounting Standards Board (ASB) on________with a view to harmonizing the diverse accounting policies and practices in use in india. Show Answer

Q91) The ICAI so far has issued________accounting standards. Show Answer

Q92) _______refer to the specific accounting principles and the method of applying those principles adopted by the enterprise in the preparation and presentation of financial statements. Show Answer

Q93) Accounting policies followed by organizations__________ Show Answer

Q94) A change in accounting policy is justified_____ Show Answer

Q95) It is essential to standardize the accounting principles and policies in order to ensure________ Show Answer

Q96) Differents accounting policies can be adopted in following areas______ Show Answer

Q97) A specific accounting policy refers to_______ Show Answer

Q98) The determination of the amount of bad debts is an accounting________ Show Answer

Q99) Generally,Which of the following measurement bases are usually accepted in accounting parlance ? Show Answer

Q100) All accounts are classified into______ Show Answer

Q101) Accounts recording transaction with a person or group of persons are known_______ Show Answer

Q102) Personal accounts is/are of the following types. Show Answer

Q103) Accounts relating to properties or assets are known as______ Show Answer

Q104) Real account can be further classified into______ Show Answer

Q105) ________accounts represent assets and properties which can be seen,touched,felt,measured,purchased and sold. Show Answer

Q106) Accounts relating to income,revenue,gain expenses and losses are termed as_______ Show Answer

Q107) ________accounts represent assets and properties which cannot be seen,touched or felt but they can be measured in terms of money. Show Answer

Q108) The rule for nominal accounts is_______ Show Answer

Q109) The rule for personal accounts is_________ Show Answer

Q110) The rule for real accounts is_________ Show Answer

Q111) Prepaid insurance,outstanding salaries are example of___________ Show Answer

Q112) Wages account,rent account,commission account,interest received account are examples of________ Show Answer

Q113) Goodwill accounts,patents account,trademarks account,copyright account are examples of______ Show Answer

Q114) Provision for doubtful debts account,stock reserve account etc are________ Show Answer

Q115) ____________is an intangible real account Show Answer

Q116) Purchase is_________ Show Answer

Q117) Sales is_______ Show Answer

Q118) Discount allowed is____________ Show Answer

Q119) Drawing account is_____ Show Answer

Q120) Prepaid account is________ Show Answer

Q121) Bad debt recovered is______ Show Answer

Q122) Patents account is________ Show Answer

Q123) bill payable account is________ Show Answer

Q124) Proprietor's account is________ Show Answer

Q125) Rent account is__________ Show Answer

Q126) Trading account is a__________ Show Answer

Q127) Outstanding wages is a___________ Show Answer

Q128) Which of the following account is tangible real account ? Show Answer

Q129) Which of the following account is the artificial personal account ? Show Answer

Q130) Which of the following account is the odd one out ? Show Answer

Q131) Which of the following account is the odd one out ? Show Answer

Q132) Which of the following account is the odd one out ? Show Answer

Q133) Salary can be classified as_________ Show Answer

Q134) Equipment can be classified as________ Show Answer

Q135) Accounts payable/creditors can be classified as________ Show Answer

Q136) Stock can be classified as_______ Show Answer

Q137) Profit can be classified as__________ Show Answer

Q138) Building can be classified as_______ Show Answer

Q139) Accounts receivable/debtors can be classified as________ Show Answer

Q140) Capital can be classified as______ Show Answer

Q141) Which of the following is a fictitious asset ? Show Answer

Q142) Trademark is_________ Show Answer

Q143) There are_________systems of keeping records. Show Answer

Q144) _______system recognizes the fact that every transaction has two aspects and records both aspects of each and every transaction Show Answer

Q145) In double entry system of book-keeping every business transaction affects. Show Answer

Q146) As per provisions of The Companies Act,1956,companies must maintain their accounts under_______ Show Answer

Q147) Which of the following is/are merit of double entry system ? Show Answer

Q148) Which of the following accounting equation is correct ? Show Answer

Q149) Which of the following equation is correct ? Show Answer

Q150) Which of the financial statement represents the accounting equation ? Show Answer

Q151) Difference between assets and outsiders liability is_________ Show Answer

Q152) Mr.N purchased a furniture costing Rs.13,000 on 1st Oct,2011.Transportation and installation charges were incurred amounting Rs.1,300 and Rs.520 respectively.Dismantling charges of the old furniture in place of which new furniture was purchased amounted Rs. 1,300.Market value of the furniture was estimated at Rs.15,600 on 31st March,2012.While finalizing the annual accounts,Mr.N values the furniture at Rs.15,600 in his books.Which of the following concepts was violated by Mr.N ? Show Answer

Q153) State the case where the going concern concept is applied ? Show Answer

Q154) R Ltd. Purchased Equipment from P Ltd. For Rs. 50,000 on 1st April 2009. The freight and cartage of Rs. 2,000 is spent to bring the Asset to the factory and Rs. 3,000 is incurred on installing the equipment to make it possible for the intended use. The market price of machinery on 31st April 2010 is Rs. 60,000 and the accountant of the company want to disclose the machinery at Rs. 60,000 in financial statements.However,the auditor emphasizes that the machinery should be valued at Rs.55,000 (50,000+2,000+3,000) according to________ Show Answer

Q155) The cost of a small calculator is accounted as an expense and not shown as an asset in a financial statement of a business entity due to_____ Show Answer

Q156) A businessmen purchased goods for Rs. 25,00,000 and sold 80 % of such goods during the accounting year ended 31st March 2010. The Market value of the remaining goods was Rs. 4,00,000. He Valued the closing stock at cost.He violated the concept of___________ Show Answer

Q157) Assets should be valued at the price paid to acquire them is based on_______ Show Answer

Q158) If a machinery is Purchased for Rs. 1,00,000 the asset would be recorded in the books at Rs. 1,00,000 even if its market value at that time happens to be Rs. 1,40,000. in case a year after, the market value of this asset comes down to Rs.90,000,it will ordinarily continue to be shown at Rs.1,00,000 and not at Rs.90,000 due to_______ Show Answer

Q159) According to which concept,the owner of an enter price pays the interest on drawings ? Show Answer

Q160) Mr.Ashok buys clothing of Rs.50,000 paying cash Rs.20,000.What is the amount of expense as per the accrual concept ? Show Answer

Q161) Capital -Rs.1,00,000 outsiders liability-Rs.2,50,000,Total assets= ? Show Answer

Q162) Fixed assets-Rs.5,50,000,current assets - Rs.2,25,000, current liabilities - Rs.1,50,000, bank loan - Rs.1,75,000. Capital = ? Show Answer

Q163) Current Assets - Current Liabilities = ? Show Answer

Q164) According to_______dictionary for accountants,an account has been defined as a formal record of a particular type of transaction expressed in money.
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Q165) An account recording transaction with an individual human being is termed as a_____
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Q166) An account recording financial transaction with an artificial person created by law or ortherwise by law or otherwise are termed as______
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Q167) Account which represent a certain person or group of persons are termed as______
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Q168) Kamal's account, Mala's account,Sharma's accounts are example of__________
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Q169) Firm's accounts,limited companies accounts,educational institutions accounts,co-operative society account are example of______
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