Question 1

Goods returned from X is entered as

Accepted Answer

A) Debit X A/c. Credit Purchase Return A/c 
B) Debit X A/c. Credit Cash A/c 
C) Debit Sales Return A/c. Credit X A/c 
D) Debit X A/c. Credit Sales A/c 
A) Debit X A/c. Credit Purchase Return A/c 
B) Debit X A/c. Credit Cash A/c 
C) Debit Sales Return A/c. Credit X A/c 
D) Debit X A/c. Credit Sales A/c

Question 2

In the creditors control account, all of the below exist except:

Accepted Answer

A) Credit purchases . 
B) Purchase returns . 
C) Cash purchases . 
D) Cash/cheques paid 
A) Credit purchases . 
B) Purchase returns . 
C) Cash purchases . 
D) Cash/cheques paid

Question 3

Ledger contains various ___________ in it

Accepted Answer

A) Transactions . 
B) Entries . 
C) Accounts . 
D) None of these 
A) Transactions . 
B) Entries . 
C) Accounts . 
D) None of these

Question 4

The ____________ in a ledger helps in locating the accounts contained in it

Accepted Answer

A) Folio . 
B) Pages . 
C) Serial Number . 
D) None of these 
A) Folio . 
B) Pages . 
C) Serial Number . 
D) None of these

Question 5

Only the significant events which affect the business must be recorded as per the principle of

Accepted Answer

A) Separate Entity 
B) Accrual 
C) Materiality 
D) Going Concern 
A) Separate Entity 
B) Accrual 
C) Materiality 
D) Going Concern

Question 6

The expenses and incomes pertaining to full trading period are taken to the Profit and Loss Account of a business, irrespective of their payment or receipt. This is in recognition of

Accepted Answer

A) Time period Concept 
B) Going Concern Concept 
C) Accrual Concept 
D) Duality Concept 
A) Time period Concept 
B) Going Concern Concept 
C) Accrual Concept 
D) Duality Concept

Question 7

Net profit / loss is transferred to the ______ account

Accepted Answer

A) Asset account 
B) Liabilities account 
C) Capital account 
D) None of these 
A) Asset account 
B) Liabilities account 
C) Capital account 
D) None of these

Question 8

Payment received from Debtor

Accepted Answer

A) Decreases the Total Assets 
B) Increases the Total Assets 
C) Results in no change in the Total Assets 
D) Increases the Total Liabilities 
A) Decreases the Total Assets 
B) Increases the Total Assets 
C) Results in no change in the Total Assets 
D) Increases the Total Liabilities

Question 9

In which of the following statement opening stock is shown?

Accepted Answer

A) Profit and loss account (Right Answer) . 
B) Balance sheet . 
C) Cash flow statement . 
D) Owner's equity 
A) Profit and loss account (Right Answer) . 
B) Balance sheet . 
C) Cash flow statement . 
D) Owner's equity

Question 10

Fixed Assets and Current Assets are categorized as per concept of

Accepted Answer

A) Separate Entity 
B) Going Concern 
C) Consistency 
D) Time period 
A) Separate Entity 
B) Going Concern 
C) Consistency 
D) Time period

Question 11

Gross Profit is the difference between

Accepted Answer

A) Net Sales and Cost of goods sold . 
B) PAT and Dividends . 
C) Net Sales and Cost of production . 
D) Net Sales and Direct costs of productions 
A) Net Sales and Cost of goods sold . 
B) PAT and Dividends . 
C) Net Sales and Cost of production . 
D) Net Sales and Direct costs of productions

Question 12

Accounting does not record non- financial transactions because of

Accepted Answer

A) Entity Concept 
B) Accrual Concept 
C) Cost Concept 
D) Money Measurement Concept 
A) Entity Concept 
B) Accrual Concept 
C) Cost Concept 
D) Money Measurement Concept

Question 13

Under ______ system , the buyer gets ownership of goods immediately

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 14

Under which of the following concepts are shareholders treated as creditors for the amount they paid on the shares they subscribed to?

Accepted Answer

A) Cost Concept 
B) Duality Concept 
C) Business Entity Concept 
D) Since the shareholders own the business, they are not treated as creditors 
A) Cost Concept 
B) Duality Concept 
C) Business Entity Concept 
D) Since the shareholders own the business, they are not treated as creditors

Question 15

The basic concepts related to P & L Account are

Accepted Answer

A) Realization Concept 
B) Matching Concept 
C) Cost Concept 
D) Both (a) and (b) above 
A) Realization Concept 
B) Matching Concept 
C) Cost Concept 
D) Both (a) and (b) above

Question 16

Which of the following is an example of Personal Account?

Accepted Answer

A) Machinery 
B) Rent 
C) Cash 
D) Creditor 
A) Machinery 
B) Rent 
C) Cash 
D) Creditor

Question 17

The properties and possession of a business are termed as ________

Accepted Answer

A) Asset 
B) Capital 
C) Liabilities 
D) None of these 
A) Asset 
B) Capital 
C) Liabilities 
D) None of these

Question 18

Which of the following concepts assumes that a business will last indefinitely?

Accepted Answer

A) Business Entity 
B) Going Concern 
C) Periodicity 
D) Consistency 
A) Business Entity 
B) Going Concern 
C) Periodicity 
D) Consistency

Question 19

X Ltd., purchased goods for ` 5 lakh and sold 9/10th of the value of goods for ` 6 lakh. Net expenses during the year were ` 25, 000. The company reported its net profit as ` 75,000. Which of the following concept is violated by the company?

Accepted Answer

A) Realization 
B) Conservation 
C) Matching 
D) Accrual 
A) Realization 
B) Conservation 
C) Matching 
D) Accrual

Question 20

The underlying accounting principle(s) necessitating amortization of intangible asset(s) is/are

Accepted Answer

A) Cost Concept 
B) Realization Concept 
C) Matching Concept 
D) Both (a) and (c) above 
A) Cost Concept 
B) Realization Concept 
C) Matching Concept 
D) Both (a) and (c) above

Exam 28: Accounting Concepts and Systems

Goods returned from X is entered as

In the creditors control account, all of the below exist except:

Ledger contains various ___________ in it

The ____________ in a ledger helps in locating the accounts contained in it

Only the significant events which affect the business must be recorded as per the principle of

The expenses and incomes pertaining to full trading period are taken to the Profit and Loss Account of a business, irrespective of their payment or receipt. This is in recognition of

Net profit / loss is transferred to the ______ account

Payment received from Debtor

In which of the following statement opening stock is shown?

Fixed Assets and Current Assets are categorized as per concept of

Gross Profit is the difference between

Accounting does not record non- financial transactions because of

Under ______ system , the buyer gets ownership of goods immediately

Under which of the following concepts are shareholders treated as creditors for the amount they paid on the shares they subscribed to?

The basic concepts related to P & L Account are

Which of the following is an example of Personal Account?

The properties and possession of a business are termed as ________

Which of the following concepts assumes that a business will last indefinitely?

X Ltd., purchased goods for ` 5 lakh and sold 9/10th of the value of goods for ` 6 lakh. Net expenses during the year were ` 25, 000. The company reported its net profit as ` 75,000. Which of the following concept is violated by the company?

The underlying accounting principle(s) necessitating amortization of intangible asset(s) is/are

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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