Which one of the following is not a branch of accounting?

(a)

Financial accounting

(b)

Management accounting

(c)

Human resources accounting

(d)

None of the above

____________of a business have to be repaid in due time.

(a)

Assets

(b)

Sales

(c)

Liabilities

(d)

None of these

The famous book "Arthasastra" was written by ___________

(a)

Kautilya

(b)

Chandrakupta

(c)

Luco Pacioli

(d)

Batlibai

The concept which assumes that a business will last indefinitely is

(a)

Business Entity

(b)

Going concern

(c)

Periodicity

(d)

Conservation

When money came into existence, ____________ activities involving money also flourished along with it.

(a)

science

(b)

economic

(c)

commerce

(d)

business

Going concern assumption tell us the life of the business is _______

(a)

very short

(b)

very long

(c)

limited

A firm has assets of Rs.1,00,000 and the external liabilities of Rs.60,000. Its capital would be  

(a)

Rs.1,60,000

(b)

Rs.60,000

(c)

Rs.1,00,000

(d)

Rs.40,000

In double entry system of book keeping, every business transaction affects  

(a)

Minimum of two accounts

(b)

Same account on two different dates

(c)

Two sides of the same account

(d)

Minimum three accounts

Goodwill is an example of ________

(a)

tangible real A/c

(b)

intangible real A/c

(c)

nominal A/c

(d)

none of these

Return of cash sales is recorded in________.

(a)

Sales Return book

(b)

cash book

(c)

Journal proper

(d)

None of these above

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

Normally, in a majority of business concern, the ledger is a _______________

(a)

Sheet

(b)

Bound note book

(c)

loose-leaf Ledger

(d)

journals

After the preparation of ledger, the next step is the preparation of

(a)

Trading account

(b)

Trial balance

(c)

Journal

(d)

Profit and loss account

The difference of totals of both debit and credit side of trial balance is transferred to _________

(a)

Trading account

(b)

Difference account

(c)

Suspense account

(d)

Miscellaneous account

Cash received from Mani whose account was previously written of as a bad debts should be credited to __________account.

(a)

Mani's

(b)

Miscellaneous income

(c)

Bad debts recovered

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

The person who has to make the payment or who accepts to make the payment is called the _______

(a)

drawee

(b)

drawer

(c)

payee

(d)

creditor

Goods returned by suppliers are recorded in____________

(a)

Sales book

(b)

sales return book

(c)

Purchases book

(d)

purchases return book

The cash book records____.

(a)

All cash receipts

(b)

All cash payments

(c)

Both (a) and (b)

(d)

All credit transactions

Small payments are recorded in a book called_____.

(a)

Cash book

(b)

Purchase book

(c)

Bills payable book

(d)

Petty cash book

Which of the following is/are not a contra entry?

(a)

Cash deposited into bank

(b)

Cash withdrew form bank

(c)

Cash withdrawn for personal use

(d)

None of these

Dishonour of a discounted bill, not recorded in the cash book will be added in the BRS, if the balance given is__________.

(a)

Unfavourable balance as per cash book

(b)

Favourable balance as per Pass book

(c)

Both (a) & (b)

(d)

 None of the above

A cash book with discount and cash column is called_______.

(a)

Simple cash book

(b)

Double column cash book

(c)

Three column cash book

(d)

Petty cash book

A bank reconciliation statement is prepared to know the causes for the difference between:

(a)

The balance as per the cash column of the cash book and bank column of the cash book.

(b)

The balance as per the cash column of the cash book and bank statement

(c)

The balance as per the bank column of the cash book and the bank statement.

(d)

The balance as per petty cash book and the cash book

Preparation of bank reconciliation statement prevents_______________

(a)

frauds

(b)

profits

(c)

loss

(d)

thefts

When cheque  is not paid by the bank it is called as_______

(a)

Honoured

(b)

Endorsed

(c)

Dishonoured

(d)

None of these

The difference in trial balance is taken to _______.

(a)

The capital account

(b)

The trading account

(c)

The suspense account

(d)

The profit and loss account

_______________ usually occurs due to lack of concentration or carelessness of the accountant.

(a)

Error of omission

(b)

Error of principle

(c)

Error of commission

(d)

None of the above

______________ is prepared to avoid the delay in the preparation of final accounts.

(a)

Suspense account

(b)

Trading account

(c)

Profit and loss account

(d)

Final account

If the total charge of depreciation and maintenance cost are considered, the method that provides a uniform charge is ____.

(a)

Straight line method

(b)

Diminishing balance method

(c)

Annuity method

(d)

Insurance policy method

Depreciation is the process of ____________

(a)

Allocation of cost of the asset to the period of its useful life

(b)

Valuation of assets

(c)

Maintenance of an asset in a state of efficiency

(d)

Adding value to the asset

___________ is a non-cash item.

(a)

Depreciation

(b)

Asset

(c)

Liabilities

(d)

None of these

The method of depreciation accepted by Income tax authorities in India 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

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 benefits of ___________ are available for more than one year.

(a)

Capital expenditure

(b)

Revenue expenditure

(c)

Referred revenue expenditure

(d)

Capital profit

A plant worth Rs.8,000 is sold for Rs.8,500 the capital receipt amounts to __________

(a)

Rs.8,000

(b)

Rs.8,500

(c)

Rs.500

(d)

Rs.16,500

Revenue receipts are__________ in the business.

(a)

non-recurring

(b)

recurring

(c)

neither of the above

(d)

A AND B

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

All the expenses incurred on the purchase of goods are ____________

(a)

Direct expenses

(b)

Indirect expenses

(c)

Selling expenses

(d)

Administration expenses

_________account enables the trader to find out Net profit or loss.

(a)

Trading Account

(b)

Profit and loss Account

(c)

Balance sheet

(d)

Trial balance

Net profit is ______.

(a)

Debited to capital account

(b)

Credited to capital account

(c)

Debited to drawings account

(d)

Credited to drawings account

_____ principle requires that generally the revenue should be recognised in the period in which sale is deemed to have occurred.

(a)

Accounting

(b)

Revenue recognition

(c)

Matching

(d)

None of these

The unsold goods in the business at the end of the accounting period are termed as __________

(a)

Opening stock

(b)

Closing stock

(c)

Average stock

(d)

None of these

__________represents the amount or goods withdrawn by the proprietor from the business for his personal use. 

(a)

Drawings

(b)

Purchase

(c)

Sales

(d)

Capital

TALLY is an example of _______.

(a)

Tailor-made accounting software

(b)

Ready-made accounting software

(c)

In-built accounting software

(d)

Customised accounting software

Computerised accounting system facilitates the management and other users to maintain accounts and prepare _____________

(a)

final accounts

(b)

profit and loss account

(c)

balance sheet

(d)

financial statements

Which of the following device primarily used to provide hard copy?

(a)

CRT

(b)

Pen drive

(c)

Printer

(d)

Card Reader

Suspense account is grouped under__________.

(a)

Assets

(b)

Liabilities

(c)

Income

(d)

Expenses