Which one of the following is not a main objective of Accounting?

(a)

Systematic recording of transactions

(b)

Ascertainment of the profitability of the business

(c)

Ascertainment of the Financial position of the business

(d)

Solving tax disputes with tax authorities

Who is considered to be the internal user of the financial information?

(a)

Creditor

(b)

Employee

(c)

Cutomer

(d)

Government

____________of a business have to be repaid in due time.

(a)

Assets

(b)

Sales

(c)

Liabilities

(d)

None of these

_____________ provides the relevant data to make appropriate decisions.

(a)

Management

(b)

Accounting

(c)

Accountant

(d)

Leadership

The industrial revolution took place in _______

(a)

18^th century

(b)

19^th century

(c)

20^th century

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

(a)

J. R. Batlibai

(b)

Luca Pacioli

(c)

Old Kesal

(d)

Menhar

In India, Accounting Standards are issued by

(a)

Reserve Bank of India

(b)

The Cost and Management Accountants of India

(c)

Supreme Court of India

(d)

The Institute of Chartered Accountants of India

Which of the following does not follow dual aspect concept?

(a)

Increase in one asset and decrease in other asset

(b)

Increase in both asset liability

(c)

Decrease in one asset and decrease in other asset

(d)

Increase in one asset and increase in capital

Evaluating the performance of different periods is possible in _______

(a)

Periodicity concept

(b)

Dnal aspect

(c)

Accrual concept

A businessman purchased goods for Rs. 25, 00,000 and sold 80% of such goods during the accounting year ended 31st March 2015. The market value of the remaining goods was Rs, 4,00,000. He valued the closing inventory at cost. He violated the concept of ______.

(a)

Money measurement

(b)

Conservatism

(c)

Cost

(d)

Periodicity

The incorrect accounting equation 

(a)

Assets = Liabilities + Capital

(b)

Assets = Capital + Liabilities

(c)

Liabilities = Assets + Capital

(d)

Capital = Assets - Liabilities

Which one of the following is representative personal account?

(a)

Building A/c

(b)

Outstanding salary A/c

(c)

Mahesh A/c

(d)

Balan & Co

The liabilities of a business are Rs.30,000, the Capital of the proprietor is Rs.70,000. The total assets are _____

(a)

Rs.70,000

(b)

Rs.1,00,000

(c)

Rs.40,000

(d)

Rs.50,000

Madhan spent Rs.2,000 as repair on purchases of machine from scrap dealer. The transaction will ____

(a)

Increase and decrease Asset

(b)

Decrease Assets and Capital

(c)

Increase and decrease Asset

(d)

Increase and Decrease Liability

When a trader sells goods on credit he prepares a ____________

(a)

Voucher

(b)

Receipt

(c)

Invoice

(d)

None

J. F. means ___________

(a)

Ledger page number

(b)

Journal page number

(c)

Voucher number

(d)

Order number

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

If the total of the debit side of an account exceeds the total of its credit side, it means

(a)

Credit Balance

(b)

Debit Balance

(c)

Nil Balance

(d)

Debit and Credit Balance

The balances of Personal and Real Accounts are shown in the ______________

(a)

trading account

(b)

profit and loss account

(c)

balance sheet

(d)

trial balance

Which one of the following is known as the king of all books of accounts?

(a)

Recording

(b)

Posting

(c)

Journalizing

(d)

classifying

While preparing the trial balance, the accountant finds that the total of the credit column is short by Rs.200. This difference will be

(a)

Debited to suspense account

(b)

Credited to suspense account

(c)

Adjusted to any of the debit balance

(d)

Adjusted to any of the credit balance

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

The first step is recording the business transactions in ____________.

(a)

Subsidiary Books/Journal

(b)

Ledger

(c)

Balance Sheet

(d)

Trial balance

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

(a)

Sundry debtors account

(b)

Bills receivable account

(c)

Purchases account

(d)

Capital account

Which one of the following is the most popular method of preparing a trial balance.

(a)

Total method

(b)

Balance method

(c)

Trial and error method

(d)

Line method

The total of the sales book is posted periodically to the credit of ____  

(a)

Sales account

(b)

Cash account

(c)

Purchases account

(d)

Journal proper

Which of the following statements is not true?

(a)

Cash discount is recorded in the books of accounts

(b)

Assets purchased on credit are recorded in journal proper

(c)

Trade discount is recorded in the books of accounts

(d)

3 grace days are added while determining the due date of the bill

_____ is a statement prepared by a trader who receives back from his customer the goods sold.

(a)

Debit note

(b)

Credit note

(c)

Both

(d)

None of these

On 1^st January, 2018, Kumar draws a bill on Ramar for 3 months, its due date is _________

(a)

4^th April, 2018

(b)

1^st April, 2018

(c)

31^st March, 2018

(d)

1^st March, 2018

Cash book is a_______

(a)

Subsidiary book

(b)

Principal book

(c)

Journal proper

(d)

Both subsidiary book and principal book

Which type of discount is not recorded in the Cash book?

(a)

Trade discount

(b)

Cash discount

(c)

Discount allowed

(d)

Discount received

Postage stamps purchased for 50 by the business. This transaction will be recorded in ___________

(a)

Petty cash book

(b)

Purchase book

(c)

Sales book

(d)

Bills receivable book

Double entry in cash book is completed when:

(a)

Salaries are paid by cheque

(b)

Withdrawal of money from bank for personal use

(c)

Deposited cash into bank

(d)

None of these

A bank reconciliation statement is prepared with the help of ______.

(a)

Bank statement

(b)

Cash book

(c)

Bank statement and bank column of the cash book

(d)

Petty cash book

Debit balance in the bank column of the cash book means _______.

(a)

Credit balance as per bank statement

(b)

Debit balance as per bank statement

(c)

Overdraft as per cash book

(d)

None of the above

A bank statement is a copy of _______.

(a)

Cash column of the cash book

(b)

Bank column of the cash book

(c)

A customer's account in the bank's book

(d)

Cheques issued by the business

_______________can be prepared either from the balance as per cash book or bank statement.

(a)

Bank reconciliation statement

(b)

Financial Statement

(c)

Fund flow analysis

(d)

None of these

Bank reconciliation statement is prepared by the_____________.

(a)

bank

(b)

creditor of a business

(c)

customer of a bank

________ are those transactions which are not recorded as per the rules of debit and credit. 

(a)

Error of principle

(b)

Error of Commission

(c)

Error of Omission

(d)

Compensating errors

The wear and tear of most of the fixed assets leads to ____________ of that asset.

(a)

depreciation

(b)

appreciation

(c)

revaluation

(d)

evapotation

Under which of the following methods the value of Assets may be reduced to zero?

(a)

Depletion method

(b)

Revaluation method

(c)

Sinking fund method

(d)

Straight line method

The objectives of providing depreciation on an asset are_________.

(a)

To ascertain the true profit/loss of the firm

(b)

To provide funds for the replacement of the fixed assets

(c)

To show the true financial position of the firm

(d)

All of the above

Depreciation on fixed asset is an example of ____________

(a)

Capital expenditure

(b)

Revenue expenditure

(c)

Capital profit

(d)

Revenue profit

Venkatesh purchases goods worth Rs.80,000 for the purpose of selling. This amount will be treated as _________

(a)

Capital expenditure

(b)

Revenue expenditure

(c)

Deferred revenue expenditure

(d)

None of these

The net loss which arises in a business is an example of __________

(a)

Revenue loss

(b)

Capital loss

(c)

Neither of the two

(d)

None of these

At the end of the accounting year the balance in purchases returns account is closed by transferring to __________ account.

(a)

Capital

(b)

Purchases

(c)

Sales

(d)

None of these

____________ account is tlie second part of income statement.

(a)

Trading

(b)

Profit and loss

(c)

Financial

(d)

Cost

 Wages outstanding is_________.

(a)

an asset 

(b)

a liability

(c)

an income

(d)

an expense 

Today, the most commonly used word in this world is _________

(a)

T.V.

(b)

Radio

(c)

Computer

(d)

None of these

______________ can perform functions at much higher speed than the speed of human beings.

(a)

Computerised accounting system

(b)

Hardware system

(c)

Software system

(d)

None of these