Question 1

Excess of income over expenditure of non trading concern is called _______

Accepted Answer

A) Profit 
B) deficit 
C) Surplus 
D) Loss 
A) Profit 
B) deficit 
C) Surplus 
D) Loss C

Question 2

Mr. Rohit, owner of Rohit Furniture Ltd., owns a personal residence that cost ` 6,00,000, but has a market value of ` 9,00,000. During preparation of the financial statement for the business, the entire value of property was ignored and was not shown in the financial statements. The principle that was followed was

Accepted Answer

A) The concept of the Business Entity 
B) The concept of the Cost Principle 
C) The concept of Going Concern Principle 
D) The concept of Duality Principle 
A) The concept of the Business Entity 
B) The concept of the Cost Principle 
C) The concept of Going Concern Principle 
D) The concept of Duality Principle D

Question 3

Which English alphabet is similar to the shape of an account?

Accepted Answer

A) I . 
B) T . 
C) H . 
D) None 
A) I . 
B) T . 
C) H . 
D) None B

Question 4

The statement of profit or loss is prepared according to _______ method to calculate profit or loss under single entry system

Accepted Answer

A) Conversion method 
B) Statement of affairs method 
C) Conversion and statement of affairs method 
D) None of these 
A) Conversion method 
B) Statement of affairs method 
C) Conversion and statement of affairs method 
D) None of these

Question 5

Which of the following practices is not in consonance with the convention of conservatism?

Accepted Answer

A) Creating Provision for Bad debts 
B) Creating Provision for Discount on Creditors 
C) Creating Provision for Discount on Debtors 
D) Creating Provision for tax 
A) Creating Provision for Bad debts 
B) Creating Provision for Discount on Creditors 
C) Creating Provision for Discount on Debtors 
D) Creating Provision for tax

Question 6

Which of the following is an example of Capital Expenditure?

Accepted Answer

A) Insurance Premium 
B) Taxes and Legal expenses 
C) Discount allowed 
D) Customs duty on Import of Machinery 
A) Insurance Premium 
B) Taxes and Legal expenses 
C) Discount allowed 
D) Customs duty on Import of Machinery

Question 7

Which of the following is (are) characteristic(s) of Bad Debt?

Accepted Answer

A) It is a definite loss to the business . 
B) It must be shown in Profit & loss account . 
C) No provision is necessary for it . 
D) All of the given options 
A) It is a definite loss to the business . 
B) It must be shown in Profit & loss account . 
C) No provision is necessary for it . 
D) All of the given options

Question 8

Under single entry system , drawings is _____ to know gross profit

Accepted Answer

A) Added 
B) Deducted 
C) Added and deducted 
D) None of these 
A) Added 
B) Deducted 
C) Added and deducted 
D) None of these

Question 9

Prepaid expenses appearing in trial balance will appear in _____

Accepted Answer

A) Profit and loss account debit side 
B) Profit and loss account credit side 
C) Balance sheet asset side 
D) Balance sheet liability side 
A) Profit and loss account debit side 
B) Profit and loss account credit side 
C) Balance sheet asset side 
D) Balance sheet liability side

Question 10

The basic concepts related to Balance Sheet are

Accepted Answer

A) Cost Concept 
B) Business Entity Concept 
C) Accounting Period Concept 
D) Both (a) and (b) above 
A) Cost Concept 
B) Business Entity Concept 
C) Accounting Period Concept 
D) Both (a) and (b) above

Question 11

All ________ expenses are recorded in the trading account

Accepted Answer

A) Indirect 
B) Direct 
C) Direct and indirect 
D) None of these 
A) Indirect 
B) Direct 
C) Direct and indirect 
D) None of these

Question 12

Single entry system of accounts is maintained by ______

Accepted Answer

A) Partnership 
B) Company 
C) Sole trader 
D) None of these 
A) Partnership 
B) Company 
C) Sole trader 
D) None of these

Question 13

________ expenses are shown in the profit and loss account

Accepted Answer

A) Indirect 
B) Direct 
C) Direct and indirect 
D) None of these 
A) Indirect 
B) Direct 
C) Direct and indirect 
D) None of these

Question 14

When an asset is acquired on hire purchase system, the asset account is debited with _______ of the assets in the books of the hire purchaser.

Accepted Answer

A) Hp price 
B) Cash price 
C) Installment price 
D) None of these 
A) Hp price 
B) Cash price 
C) Installment price 
D) None of these

Question 15

Which of the following is NOT a revenue expenditure?

Accepted Answer

A) Petrol consumed in motor vehicles . 
B) Cost of saleable goods . 
C) Bad debts . 
D) Premium given on lease 
A) Petrol consumed in motor vehicles . 
B) Cost of saleable goods . 
C) Bad debts . 
D) Premium given on lease

Question 16

Omission of paise and showing the round figures in financial statements is based on

Accepted Answer

A) Conservatism Concept 
B) Consistency Concept 
C) Materiality Concept 
D) Realization Concept 
A) Conservatism Concept 
B) Consistency Concept 
C) Materiality Concept 
D) Realization Concept

Question 17

Income and expenditure account is a type of ______

Accepted Answer

A) Balance sheet 
B) Receipts and payment 
C) Profit and loss account 
D) None of these 
A) Balance sheet 
B) Receipts and payment 
C) Profit and loss account 
D) None of these

Question 18

Under _____ system , the hire vendor has a right to take back the goods

Accepted Answer

A) Installment 
B) HP 
C) Installment and HP 
D) None of these 
A) Installment 
B) HP 
C) Installment and HP 
D) None of these

Question 19

Receipts and payment account is a summary of ______

Accepted Answer

A) Income and expenditure 
B) Profit and loss 
C) Cashbook 
D) Balance sheet 
A) Income and expenditure 
B) Profit and loss 
C) Cashbook 
D) Balance sheet

Question 20

Provision for bad debt is made as per the

Accepted Answer

A) Entity Concept 
B) Conservatism Concept 
C) Cost Concept 
D) Going Concern Concept 
A) Entity Concept 
B) Conservatism Concept 
C) Cost Concept 
D) Going Concern Concept

Exam 28: Accounting Concepts and Systems

Excess of income over expenditure of non trading concern is called _______

Which English alphabet is similar to the shape of an account?

The statement of profit or loss is prepared according to _______ method to calculate profit or loss under single entry system

Which of the following practices is not in consonance with the convention of conservatism?

Which of the following is an example of Capital Expenditure?

Which of the following is (are) characteristic(s) of Bad Debt?

Under single entry system , drawings is _____ to know gross profit

Prepaid expenses appearing in trial balance will appear in _____

The basic concepts related to Balance Sheet are

All ________ expenses are recorded in the trading account

Single entry system of accounts is maintained by ______

________ expenses are shown in the profit and loss account

When an asset is acquired on hire purchase system, the asset account is debited with _______ of the assets in the books of the hire purchaser.

Which of the following is NOT a revenue expenditure?

Omission of paise and showing the round figures in financial statements is based on

Income and expenditure account is a type of ______

Under _____ system , the hire vendor has a right to take back the goods

Receipts and payment account is a summary of ______

Provision for bad debt is made as per the

Exploring Features and Advantages of Computerized Accounting Systems

Exploring Computerized Accounting Systems and Software

Non-Profit Organizations and Financial Statements

Not-For-Profit Organizations and Financial Accounts

Goodwill and Intangible Assets

Valuation and Calculation of Goodwill

Understanding the Concepts of Lessor, Lessee, and Minimum Rent

Royalty Accounting and Partnership Firms

Accounting

Accounting and Corporate Finance

Accounting and Finance

Depreciation, Share Capital, and Forfeiture of Shares

Financial Statements and Accounting Principles

Insurance Provision and Accounting Standards

Formation and Capital Structure of Public Companies

Share Forfeiture, Debentures, and Sinking Fund

Financial Accounting and Banking

Insurance and General Insurance Companies: Understanding Terms and Concepts

Single Entry System and Company Ownership

Share Capital and Shareholders in a Company

Debentures, Bonds, and Shares

Accounting Concepts and Principles

Accounting Concepts and Practices

Financial Statements and Accounting for Nonprofit Organizations

Hire Purchase, Sale of Goods, and Bookkeeping

Accounting and Bookkeeping

Allocation of Selling Expenses Among Departments Based on Sales

Accounting and Financial Transactions

Ac Types, Balances, and Entries

Errors, Adjustments, and Expenditures in Accounting

Capitalization, Errors, Cash Book, and Types of Accounts

Revenue Recognition and Expenditure Classification

Depreciation and Asset Provision

Accounting Adjustments and Financial Statement Treatment

Balance Sheet and Profit Loss Account

Accounting and Financial Management

Bills of Exchange, Consignment, and Partnership

Accounting Standards and Joint Ventures

Accounting and Financial Management : Part A

Accounting and Financial Management : Part B

Accounting: Interest, Bill, Partnership Agreement,insurance, Contingent Liability, and Business Resources

Fundamentals of Accounting: Objectives, Concepts, and Principles

Depreciation and Reserves: Understanding the Accounting Concepts

Underwriting and Creditor Questions in Company Affairs

Amalgamation, Llp, and Single Entry System

Single Entry System and Profit Calculation

Accounting for Receipts, Payments, Income, and Expenditure in Consignment and Joint Venture Businesses

Accounting for Co-Venturers, Consignments, and Branches

Accounting Arrangements and Operations for Branches

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