The root of financial accounting system is ______.

(a)

Social accounting

(b)

Stewardship accounting

(c)

Management accounting

(d)

Responsibility accounting

Financial position of a business is ascertained on the basis of ______.

(a)

Journal

(b)

Trial balance

(c)

Balance Sheet

(d)

Ledger

The famous book "Arthasastra" was written by ___________

(a)

Kautilya

(b)

Chandrakupta

(c)

Luco Pacioli

(d)

Batlibai

Direct expenses appear in _______

(a)

Profit & loss account

(b)

Trading account

(c)

Cash account

The profounder of double entry system of book-keeping is ___________

(a)

J. R. Batlibai

(b)

Luca Pacioli

(c)

Old Kesal

(d)

Menhar

The concept which assumes that a business will last indefinitely is

(a)

Business Entity

(b)

Going concern

(c)

Periodicity

(d)

Conservation

The land is purchased for Rs. 5,00,000 and its market value is Rs. 8,00,000 at the time of preparing final accounts the land value is recorded only for _____________

(a)

Rs. 5,00,000

(b)

Rs. 8,00,000

(c)

Rs. 3,00,000

(d)

Rs. 6,50,000

Accounting requires ______ 

(a)

Clerical skill

(b)

Analytical skill

(c)

Routine skill

Accounting equation signifies 

(a)

Capital of a business is equal to assets

(b)

Liabilities of a business are equal to assets

(c)

Capital of a business is equal to liabilities

(d)

Assets of a business always equal to the total of capital and liabilities

'Cash withdrawn by the proprietor from the business for his personal use' causes

(a)

Decrease in assets and decrease in owner's capital

(b)

Increase in one asset and decrease in another asset

(c)

Increase in one asset and increase in liabilities

(d)

Increase in asset and decrease in capital

Purchased goods from Murthy on credit should be credited to _________

(a)

Murthy A/c

(b)

Cash A/c

(c)

Purchases A/c

(d)

Goods A/c

Bad debts entry is passed in__________.

(a)

Sales Book

(b)

Cash Book

(c)

Journal Book

(d)

None of these above

The process of transferring the debit and credit items from journal to ledger accounts is called 

(a)

Casting

(b)

Posting

(c)

Journalising

(d)

Balancing

The process of finding the net amount from the totals of debit and credit columns in a ledger is known as

(a)

Casting

(b)

Posting

(c)

Journalising

(d)

Balancing

In a ledger account, when the debit total and credit total are equal it is called ________________

(a)

debit balance

(b)

credit balance

(c)

both 'a' and 'b'

(d)

nil balance

Net position of an account cannot be ascertained from _________.

(a)

Journal

(b)

Ledger

(c)

Trial balance

(d)

Balance sheet

Which of the following method(s) can be used for preparing trial balance?

(a)

Balance method

(b)

Total method

(c)

Total and Balance method

(d)

a, b and c

The account which has a debit balance and is shown in the debit column of the trial balance is_______

(a)

Sundry creditors account

(b)

Bills payable account

(c)

Drawings account

(d)

Capital account

Trial Balance is a statement which shows_____of all accounts

(a)

Debit or Credit Balances

(b)

Balance and Totals

(c)

Positive and Negative Balances

(d)

Opening and Closing balances

Which of the following account with normal balance is shown at the credit side of a trial balance?

(a)

Cash account

(b)

Bank account

(c)

Equipment account

(d)

Accrued expenses account

Purchases book is used to record______

(a)

all purchases of goods

(b)

all credit purchases of assets

(c)

all credit purchases of goods

(d)

all purchases of assets

Closing entries are recorded in _____

(a)

Cash book

(b)

Ledger

(c)

Journal proper

(d)

Purchases book

The person who prepares the bill is called the _____

(a)

drawer

(b)

drawee

(c)

payee

(d)

acceptance

Trade discount allowed at the time of sale of goods is__________.

(a)

Recorded in Sales Book

(b)

Recorded in Cash Book

(c)

Recorded in Journal

(d)

Not recorded in Books of Accounts

Cash book is a_______

(a)

Subsidiary book

(b)

Principal book

(c)

Journal proper

(d)

Both subsidiary book and principal book

A cash book with discount, cash and bank column is called_______

(a)

Simple cash book

(b)

Double column cash book

(c)

Three column cash book

(d)

Petty cash book

Double entry means__________.

(a)

Entry in two sets of books

(b)

Entry in two pages

(c)

Entry for two aspects of a transaction

(d)

None

Bank book always shows____________.

(a)

debit balance

(b)

credit balance

(c)

nil balance

(d)

credlt balance and debit balance

Which of the following is not the salient feature of bank reconciliation statement?

(a)

Any undue delay in the clearance of cheques will be shown up by the reconciliation

(b)

Reconciliation statement will discourage the accountant of the bank from embezzlement

(c)

It helps in finding the actual position of the bank balance

(d)

Reconciliation statement is prepared only at the end of the accounting period

Which one of the following is not a timing difference?

(a)

Cheque deposited but not yet credited

(b)

Cheque issued but not yet presented for payment

(c)

Among directly paid into the bank

(d)

Wrong debit in the cash book

_______________is simply a copy of the customer's account in the books of a bank.

(a)

Cash book

(b)

Bank Statement

(c)

Bank Account

(d)

None of these

In recent times, the copy of the records can be obtained by the customer electronically, which is called _______________

(a)

E-Commerce

(b)

ATM

(c)

E-Statement

(d)

Electronic Commerce

Which of the following errors will not affect the trial balance?

(a)

Wrong balancing of an account

(b)

Posting an amount in the wrong account but on the correct side

(c)

Wrong totalling of an account

(d)

Carried forward wrong amount in a ledger account

Goods returned by Senguttuvan were taken into stock, but no entry was passed in the books. While rectifying this error, which of the following accounts should be debited?

(a)

Senguttuvan account

(b)

Sales returns account

(c)

Returns outward account

(d)

Purchases returns account

Purchase of office furniture Rs. 4,800 has been debited to general expense account which error is it?

(a)

Error of commission

(b)

Error of principle

(c)

Compensating error

(d)

None of these

The errors can be classified into ________ types.

(a)

one

(b)

Two

(c)

Three

(d)

Four

Cash received from sale of fixed asset is credited to ____________

(a)

Profit and loss account

(b)

Fixed asset account

(c)

Depreciation account

(d)

Bank account

Depreciation is provided on ____________

(a)

Fixed assets

(b)

Current assets

(c)

Outstanding charges

(d)

All assets

____________ method is appropriate for the fixed assets having certain period of working life.

(a)

Diminishing balance

(b)

Sinking fund

(c)

Straight line

(d)

Depreciation fund

For oil wells _____________method Of depreciation is to be followed

(a)

Exhaustion

(b)

Wear & Tear

(c)

Depletion

(d)

None of the above

Expenditure incurred Rs.20,000 for trial run of a newly installed machinery will be ______.

(a)

Preliminary expense

(b)

Revenue expenditure

(c)

Capital expenditure

(d)

Deferred revenue expenditure

Amount received from IDBI as a medium term loan for augmenting working capital ______.

(a)

Capital expenditures

(b)

Revenue expenditures

(c)

Revenue receipts

(d)

Capital receipt

The loss which is not incurred in the normal course of business is ___________

(a)

Capital loss

(b)

Revenue loss

(c)

both 'a' and 'b'

(d)

None of these

Deferred revenue expenditure is to be written off ___________

(a)

In the year in which the expenses are incurred

(b)

In the year in which the benefit of expenses are exhausted

(c)

Within 3 to 5 years

(d)

Within 5 to 10 years

Carriage inwards will be shown _______.

(a)

In the trading account

(b)

In the profit and loss account

(c)

On the liabilities side

(d)

On the assets side

Salaries appearing in the trial balance is shown on the _______.

(a)

Debit side of trading account

(b)

Debit side of profit and loss account

(c)

Liabilities side of the balance sheet

(d)

Assets side of the balance sheet

Cash in hand is an example of ____________

(a)

Current assets

(b)

Fixed assets

(c)

Current liability

(d)

Contingent liability

Wages is an example of ___________

(a)

Capital expenses

(b)

Indirect expenses

(c)

Direct expenses

(d)

Revenue expenses

Closing stock is valued at ______.

(a)

Cost price

(b)

Market price

(c)

Cost price or market price whichever is higher

(d)

Cost price or net realisable value whichever is lower

Accrued interest on investment will be shown______.

(a)

On the credit side of profit and loss account

(b)

On the assets side of balance sheet

(c)

Both (a) and (b)

(d)

None of these

Outstanding expense account is a representative ______ account.

(a)

Personal

(b)

Real

(c)

Both 'a' and 'b'

(d)

None of these

Expenses which have been incurred in the accounting period but not paid till the end of the accounting period are called______.

(a)

Outstanding expenses

(b)

Prepaid expenses

(c)

Accrued income

(d)

Income received in advance

An example of output device is _______.

(a)

Mouse

(b)

Printer

(c)

Scanner

(d)

Keyboard

TALLY is an example of _______.

(a)

Tailor-made accounting software

(b)

Ready-made accounting software

(c)

In-built accounting software

(d)

Customised accounting software

The most important element in computertsed Accounting system ____________

(a)

Hardware

(b)

Procedure

(c)

Software

(d)

People

_______________ consists of input devices and output de,vices that make a complete computer system.

(a)

Software

(b)

Hardware

(c)

Scanner

(d)

Printer