_____________has rightly been termed as the language of the business.

(a)

Accounting

(b)

Book-keeping

(c)

Accountant

(d)

None of these

Who developed the double - entry book - keeping system?

(a)

Batliboi

(b)

Luco pacioli

(c)

Grewal

(d)

Gupta

Accounting gives information on _________

(a)

The resources available

(b)

how the available resources have been employed

(c)

the results achieved by their use

(d)

All of the above

The balance in the trading account is the gross profit or __________.

(a)

Net profit

(b)

Net loss

(c)

gross loss

(d)

balance

___________ is the incapability of a person or an enterprises to pay the debts.

(a)

Asset

(b)

Liability

(c)

Insolvency

(d)

Sales

GAAPs are:

(a)

Generally Accepted Accounting Policies

(b)

Generally Accepted Accounting Principles

(c)

Generally Accepted Accounting Provisions

(d)

None of these

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

The basic accounting equation i.e. Capital + Liabilities = Assets is based on ___________

(a)

Matching concept

(b)

Periodicity concept

(c)

Dual aspect concept

(d)

Accrual concept

According to ________ concept, every transaction or event has two aspects i.e., dual effect.

(a)

Dual aspect concept

(b)

Periodicity concept

(c)

Matching concept

(d)

Cost concept

Point out the incorrect accounting equation

(a)

Assets = Liabilities + Capital

(b)

Assets = Capital + Liabilities

(c)

Liabilities = Assets + Capital

(d)

Capital = Assets - Liabilities

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

Accounts involved in this transaction, 'commenced business with cash' are ______________

(a)

Nominal accounts

(b)

Personal accounts

(c)

Real accounts

(d)

both (a) & (b)

Received cash for bad debts written off last year is credited to ______________

(a)

Debtors A/c

(b)

Bad debts recovery A/c

(c)

Bad debts A/c

(d)

None

Good is an example of______accounts.

(a)

Real

(b)

Nominal

(c)

Tangible real

(d)

Intangible real

___________ is known as principal book of accounts because It is very useful for a business enterprise.

(a)

Journal

(b)

Ledger

(c)

Balance Sheet

(d)

Trial Balance

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

(a)

Sheet

(b)

Bound note book

(c)

loose-leaf Ledger

(d)

journals

Cash received from Madhan is to be posted to his account on ________________

(a)

credit Side

(b)

debit side

(c)

both side

(d)

no side

This account is frequently balanced to ascertain cash on hand ________

(a)

trial balance

(b)

asset account

(c)

cash account

(d)

bank account

Net position of an account can be ascertained from ________.

(a)

Journal

(b)

Ledger

(c)

Trial balance

(d)

Balance sheet

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 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

_____________ is prepared on a specific data.

(a)

Trial Balance

(b)

Journal

(c)

Ledger

(d)

All of the above

____________ method is not commonly used as it cannot help in the preparation of financial statements.

(a)

Total Method

(b)

Balance Method

(c)

Total and Balance Method

(d)

None of these

Suspense account having credit balance will be shown on the _____________.

(a)

Credit side of the Profit and Loss Alc

(b)

Debit side of the Profit and Loss Alc

(c)

Liabilities side of the Balance Sheet

(d)

Assets side of the Balance Sheet

Sales book is used to record_____

(a)

all sales of goods

(b)

all credit sales of assets

(c)

all credit sales of goods

(d)

all sales of assets and goods

Days of grace are _____ in number.

(a)

three

(b)

four

(c)

five

(d)

nine

______ is an official appointed by the government.

(a)

Notary public

(b)

Protest

(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

The cash book records____.

(a)

All cash receipts

(b)

All cash payments

(c)

Both (a) and (b)

(d)

All credit transactions

Single column Cash book may show ___________

(a)

Only a debit balance

(b)

Only a credit balance

(c)

Either debit balance or credit balance

(d)

Neither debit balance nor credit balance

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

(a)

Trade discount

(b)

Cash discount

(c)

Discount allowed

(d)

Discount received

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 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

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

_______________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

When balance as per Cashbook is the starting point to ascertain balance as per Pass book interest charged by bank is__________________

(a)

added

(b)

subtracted

(c)

not adjusted

(d)

none of these

Error of principle arises when _______.

(a)

There is complete omission of a transaction

(b)

There is partial omission of a transaction

(c)

Distinction is not made between capital and revenue items

(d)

There are wrong postings and wrong castings

Under the written down value method of depreciation, the amount of depreciation is ____.

(a)

Uniform in all the years

(b)

Decreasing every year

(c)

Increasing every year

(d)

None of the above

Depreciation is caused by ____.

(a)

Lapse of time

(b)

Usage

(c)

Obsolescence

(d)

a, b and c

A depreciable asset may suffer obsolescence due to______.

(a)

Passage of time

(b)

Wear and tear

(c)

Technological changes

(d)

None of the above

Amount spent on increasing the seating capacity in a cinema hall is ______.

(a)

Capital expenditure

(b)

Revenue expenditure

(c)

Deferred revenue expenditure

(d)

None of the above.

Interest on bank deposits is ______.

(a)

Capital receipt

(b)

Revenue receipt

(c)

Capital expenditures

(d)

Revenue expenditures

Revenue expenditure is intended to benefit ______.

(a)

Past period

(b)

Future period

(c)

Current period

(d)

Any period

Balance sheet shows the ________ of the business.

(a)

Profitability

(b)

Financial position

(c)

Sales

(d)

Purchases

Current assets does not include _______.

(a)

Cash

(b)

Stock

(c)

Furniture

(d)

Prepaid 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

In accounting, computer is commonly used in the following areas:

(a)

Recording of business transactions

(b)

Payroll accounting

(c)

Stores accounting

(d)

All the above

TALLY is an example of _______.

(a)

Tailor-made accounting software

(b)

Ready-made accounting software

(c)

In-built accounting software

(d)

Customised accounting software