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

Who developed the double - entry book - keeping system?

(a)

Batliboi

(b)

Luco pacioli

(c)

Grewal

(d)

Gupta

 Accounting information helps government in the field of ________

(a)

taxation

(b)

grant of subsidy

(c)

both

Hybrid basis of accounting is _______

(a)

Cash basis

(b)

Accrual basis

(c)

Both

The business is liable to the proprietor of the business in respect of capital introduced by the person according to

(a)

Money measurement concept

(b)

Cost concept

(c)

Business entity concept

(d)

Dual aspect concept

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

____________ is a branch of knowledge.

(a)

Accountancy

(b)

Accounting

(c)

book keeping

(d)

double entry

_______________are made for outstanding and prepaid expenses and income.

(a)

Adjustments

(b)

Journals

(c)

Ledger

(d)

Trial balance

'Cash withdrawn by the proprietor from the business for his personal use' causes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

Real account deals with  

(a)

Individual persons

(b)

Expenses and losses

(c)

Assets

(d)

Incomes and gains

_________ is a negotiable instrument.

(a)

Cheque

(b)

Cash

(c)

Discount

(d)

Premium

When settlement is not made by each or through bank immediately in a transaction, it is called _______________.

(a)

Credit transaction

(b)

Cash transaction

(c)

both (a) & (b)

(d)

None

Drawings account is classified under __________.

(a)

Real A/c

(b)

Personal A/c

(c)

Nominal A/c

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

(a)

Casting

(b)

Posting

(c)

Journalising

(d)

Balancing

J. F. means ___________

(a)

Ledger page number

(b)

Journal page number

(c)

Voucher number

(d)

Order number

The amount brought into the business by the proprietor should be credited to

(a)

Cash account

(b)

Drawings account

(c)

Capital account

(d)

Suspense account

If Total of credit > Total of debit = ___________

(a)

Debit balance

(b)

Credit balance

(c)

Nil balance

(d)

both (a) & (b)

Total of debit > Total of credit = __________.

(a)

Debit balance

(b)

Credit balance

(c)

Nil balance

(d)

Trial balance

The trial balance contains the balances of_____

(a)

Only personal accounts

(b)

Only real accounts

(c)

Only nominal accounts

(d)

All accounts

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

______________ is a statement containing the debit and credit balances of all ledger accounts on a particular date.

(a)

Trial Balance

(b)

Balance Sheet

(c)

Trading account

(d)

Profit and loss account

When adjusted purchase is shown on the debit column of the trial balance then __________.

(a)

Both opening and closing stock do not appear in the trial balance

(b)

Closing stock is shown in the trial balance and not the opening stock

(c)

Opening stock is shown in the trial balance and not the closing stock

(d)

Both opening and closing stock appear in the trial balance

A suspense account facilitates the preparation of financial statements even when the________has not tallied.

(a)

Cash Book

(b)

Ledger

(c)

Trial Balance

(d)

Journal

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

Purchases of fixed assets on credit basis is recorded in_______

(a)

Purchases book

(b)

Sales book

(c)

Purchases returns book

(d)

Journal proper

Purchase of machinery is recorded in____________.

(a)

sales book

(b)

journal proper

(c)

purchases book

Journal Proper is used to record________.

(a)

 All cash and credit transaction

(b)

Cash and credit sales

(c)

Cash and credit purchases

(d)

adjusting and closing entries

The cash book records____.

(a)

All cash receipts

(b)

All cash payments

(c)

Both (a) and (b)

(d)

All credit transactions

In addition to cash dealings, every business may use cheques as a means of ___________

(a)

receipts

(b)

payment

(c)

incomes

(d)

expenses

In a three column Cashbook ____________.

(a)

Only cash column is balanced

(b)

Only bank column is balanced

(c)

Only discount column is balanced

(d)

Both (a) and (b)

Subsidiary books are maintained in__________.

(a)

Big business concerns

(b)

Small business concerns 

(c)

Banks

(d)

None of the above

A bank reconciliation statement is prepared by ______.

(a)

Bank

(b)

Business

(c)

Debtor to the business

(d)

Creditor to the Business

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

Balance as per bank statement is Rs. 1,000. Cheque deposited, but not yet credited by the bank is Rs. 2,000. What is the balance as per bank column of the cash book?

(a)

Rs. 3,000 overdraft

(b)

Rs. 3,000 favourable

(c)

Rs. 1,000 overdraft

(d)

Rs. 1,000 favourable

A time gap between the depositing of the ________________ and the collection by the bank.

(a)

cash

(b)

cheques

(c)

petty Cash

(d)

none of these

Credit 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 these above

Amount spent on servicing office Typewriter should be debited to:

(a)

Repairs account

(b)

Typewriter account

(c)

Miscellaneous expenses account

(d)

Drawings account

The written down value is the true value of ________ assets

(a)

fixed

(b)

current

(c)

tangible

(d)

intangible

The method of depreciation prescribed by the Indian Companies Act, 2013 is ____________

(a)

Straight line method

(b)

Diminishing balance method

(c)

Revaluation method

(d)

Sinking Fund method

Cost of an asset is Rs. 3, 00,000. Rate of depreciation is 10% on WDV method. Value of the asset at the end of the second year will be_____________.

(a)

Rs.2, 70,000

(b)

Rs. 30, 000

(c)

Rs.2, 50,000

(d)

Rs.2, 43,000

Which of the following Expenditure can be converted into cash?

(a)

Capital expenditure

(b)

Revenue expenditure

(c)

Deferred revenue expenditure

(d)

None of these

Subsidy of Rs.40,000 received from the government for working capital by a manufacturing concern is __________

(a)

Capital receipt

(b)

Revenue receipt

(c)

Capital expenditure

(d)

Revenue receipt

An asset worth Rs. 1,00,000 is sold for Rs. 75,000 the capital loss amounts to __________

(a)

Rs.1,75,000

(b)

Rs.1,00,000

(c)

Rs.75,000

(d)

Rs.25,000

All the expenses incurred on the purchase of goods are ____________

(a)

Direct expenses

(b)

Indirect expenses

(c)

Selling expenses

(d)

Administration expenses

Cash in hand is an example of ____________

(a)

Current assets

(b)

Fixed assets

(c)

Current liability

(d)

Contingent liability

Unexpired expenses are also called as_________.

(a)

Outstanding expenses

(b)

Prepaid expenses

(c)

Accrued income

(d)

Income received in advance

_____________ defines the working of a hardware component.

(a)

Hardware oriented procedure

(b)

Software oriented procedure

(c)

Internal procedure

(d)

None of these

____________ is a set of detailed instructions for using the software.

(a)

Internal procedure

(b)

Software oriented procedure

(c)

Hardware oriented procedure

(d)

External procedure