Question 1

Which of the following statements is/are true ?

Accepted Answer

A) A sale of an asset is recorded in the Sales Book 
B) Total of Return Outward Book is debited to Return Outward Account 
C) The balance of Petty Cash Book is a liability 
D) Cash Book is a subsidiary book as well as a ledger 
A) A sale of an asset is recorded in the Sales Book 
B) Total of Return Outward Book is debited to Return Outward Account 
C) The balance of Petty Cash Book is a liability 
D) Cash Book is a subsidiary book as well as a ledger D

Question 2

Total depreciation of an asset cannot exceed its:

Accepted Answer

A) Scrap value . 
B) Residual value . 
C) Market value . 
D) Depreciable value 
A) Scrap value . 
B) Residual value . 
C) Market value . 
D) Depreciable value A

Question 3

In an account if debit side > credit side, the balance is known as the:

Accepted Answer

A) Negative Balance . 
B) Debit balance . 
C) Positive Balance . 
D) Credit balance 
A) Negative Balance . 
B) Debit balance . 
C) Positive Balance . 
D) Credit balance B

Question 4

Overcasting of purchases journal would affect

Accepted Answer

A) Sales account . 
B) Purchase account . 
C) Supplier's account and purchase account 
D) None of these 
A) Sales account . 
B) Purchase account . 
C) Supplier's account and purchase account 
D) None of these

Question 5

Which of the following is the example of contingencies?

Accepted Answer

A) Compulsory acquisition of part of land of the company by the Government 
B) A suit filed by the employee against the company 
C) A debtor of the company is declared insolvent, resulting in bad debts to the company 
D) All of (a), (b) and (c) above. 
A) Compulsory acquisition of part of land of the company by the Government 
B) A suit filed by the employee against the company 
C) A debtor of the company is declared insolvent, resulting in bad debts to the company 
D) All of (a), (b) and (c) above.

Question 6

The amount payable to a person as consideration for the use of rights vested in him is

Accepted Answer

A) Dividend 
B) Royalty 
C) Purchase consideration 
D) Installment 
A) Dividend 
B) Royalty 
C) Purchase consideration 
D) Installment

Question 7

The type of A/c with a named credit balance is-

Accepted Answer

A) Expenses A/c . 
B) Assets A/c . 
C) Revenue A/c . 
D) Suspense A/c 
A) Expenses A/c . 
B) Assets A/c . 
C) Revenue A/c . 
D) Suspense A/c

Question 8

Opening entries are generally passed through-

Accepted Answer

A) General Journal . 
B) Purchase Journal . 
C) Profit and Loss A/c . 
D) Suspense A/c 
A) General Journal . 
B) Purchase Journal . 
C) Profit and Loss A/c . 
D) Suspense A/c

Question 9

Which of the following assets is/are to be valued at the lower of cost and net realizable value?

Accepted Answer

A) Goodwill 
B) Inventories 
C) Investments 
D) Both (b) and (c) above. 
A) Goodwill 
B) Inventories 
C) Investments 
D) Both (b) and (c) above.

Question 10

Legacy are generally-

Accepted Answer

A) Capitalized . 
B) Treated Loss . 
C) Revenue Expenses . 
D) Deferred Revenue expenses. 
A) Capitalized . 
B) Treated Loss . 
C) Revenue Expenses . 
D) Deferred Revenue expenses.

Question 11

When the benefits of revenue expenditure is available for a period of two or three years, the expenditure is known as-

Accepted Answer

A) Revenue Expenditure . 
B) Deferred Revenue Expenditure . 
C) Capital Expenditure . 
D) Depreciation. 
A) Revenue Expenditure . 
B) Deferred Revenue Expenditure . 
C) Capital Expenditure . 
D) Depreciation.

Question 12

Interest Account will have-

Accepted Answer

A) Debit balance only . 
B) Credit balance only . 
C) Debit or Credit balance . 
D) No balance at all 
A) Debit balance only . 
B) Credit balance only . 
C) Debit or Credit balance . 
D) No balance at all

Question 13

A few errors committed in Ahhiwalia's books of account are given below. State which errors would affect the Trial Balance.
(a) Sales of `950 to Ram completely omitted from books of account
(b) Purchases of `720 from Shyam entered in the purchases journal as `700
(c) Purchases Journal is overcast by `1,000
(d) Sales returns journal is undercast by `200
(e) Amount paid to Agarwal wrongly posted to the debit to Mittal's account
(f) Bank overdraft shown under debit column in the Trial Balance
(g) Sales of `500 to Sadiq entered in sales journal as sales to Mushtaq
(h) Wages paid for installation of machinery debited to wages account

Accepted Answer

A) a, c and g 
B) c, d and f 
C) c, d, e and h 
D) c, d, f and h 
A) a, c and g 
B) c, d and f 
C) c, d, e and h 
D) c, d, f and h

Question 14

Which of the following methods is not a practical way of realizing revenue?

Accepted Answer

A) Delivery method 
B) Percentage-of-completion method 
C) Production method 
D) Moving average method 
A) Delivery method 
B) Percentage-of-completion method 
C) Production method 
D) Moving average method

Question 15

Purchases made on credit not recorded at all would affect

Accepted Answer

A) Purchases account . 
B) Supplier's account . 
C) Purchases account and supplier's account 
D) None of these 
A) Purchases account . 
B) Supplier's account . 
C) Purchases account and supplier's account 
D) None of these

Question 16

Amount received from the proprietors as capital or loan receipt is treated as-

Accepted Answer

A) Capital Receipt . 
B) Revenue Receipt . 
C) Revenue Income . 
D) Capital Income 
A) Capital Receipt . 
B) Revenue Receipt . 
C) Revenue Income . 
D) Capital Income

Question 17

Which of the following is not a contingent liability?

Accepted Answer

A) Claims against the company not acknowledged as debts 
B) Debts included on debtors which are doubtful in nature 
C) Uncalled liability on partly paid shares 
D) Arrears of cumulative fixed dividends 
A) Claims against the company not acknowledged as debts 
B) Debts included on debtors which are doubtful in nature 
C) Uncalled liability on partly paid shares 
D) Arrears of cumulative fixed dividends

Question 18

Purchase A/c will have-

Accepted Answer

A) No balance at all . 
B) Debit balance . 
C) Credit balance . 
D) Debit or Credit 
A) No balance at all . 
B) Debit balance . 
C) Credit balance . 
D) Debit or Credit

Question 19

Any income or profit derived by carrying on the business or during the course of business is called-

Accepted Answer

A) Capital Receipt . 
B) Revenue Receipt . 
C) Revenue Gain . 
D) Capital Gain 
A) Capital Receipt . 
B) Revenue Receipt . 
C) Revenue Gain . 
D) Capital Gain

Question 20

Which of the following voucher is used to record transactions that do not affect bank & cash?

Accepted Answer

A) Journal Voucher . 
B) Receipt Voucher . 
C) Payment Voucher . 
D) Nominal Voucher 
A) Journal Voucher . 
B) Receipt Voucher . 
C) Payment Voucher . 
D) Nominal Voucher

Exam 30: Ac Types, Balances, and Entries

Which of the following statements is/are true ?

Total depreciation of an asset cannot exceed its:

In an account if debit side > credit side, the balance is known as the:

Overcasting of purchases journal would affect

Which of the following is the example of contingencies?

The amount payable to a person as consideration for the use of rights vested in him is

The type of A/c with a named credit balance is-

Opening entries are generally passed through-

Which of the following assets is/are to be valued at the lower of cost and net realizable value?

Legacy are generally-

When the benefits of revenue expenditure is available for a period of two or three years, the expenditure is known as-

Interest Account will have-

Which of the following methods is not a practical way of realizing revenue?

Purchases made on credit not recorded at all would affect

Amount received from the proprietors as capital or loan receipt is treated as-

Which of the following is not a contingent liability?

Purchase A/c will have-

Any income or profit derived by carrying on the business or during the course of business is called-

Which of the following voucher is used to record transactions that do not affect bank & cash?

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 Concepts and Systems

Accounting and Financial Transactions

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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