Question 1

Revenue is generally recognised as being earned at that point of time when

Accepted Answer

A) sale is effected . 
B) cash is received . 
C) production is completed . 
D) debts are collected 
A) sale is effected . 
B) cash is received . 
C) production is completed . 
D) debts are collected A

Question 2

The periodic total of purchase day book is posted to -

Accepted Answer

A) Creditors A/c . 
B) Debtors A/c . 
C) Purchase A/c . 
D) None 
A) Creditors A/c . 
B) Debtors A/c . 
C) Purchase A/c . 
D) None C

Question 3

Which of these types of expenditure would not be treated as a Capital Expenditure

Accepted Answer

A) Acquisition of an Asset . 
B) Extension of an Asset . 
C) Improvement of the existing Asset . 
D) Maintenance of the Asset 
A) Acquisition of an Asset . 
B) Extension of an Asset . 
C) Improvement of the existing Asset . 
D) Maintenance of the Asset D

Question 4

Which of these will not affect Bank and Cash balance

Accepted Answer

A) Cash received from X credited to Y. 
B) Cheques issued to A but debited to B. 
C) Cheques deposited and cleared on the same date . 
D) All the three 
A) Cash received from X credited to Y. 
B) Cheques issued to A but debited to B. 
C) Cheques deposited and cleared on the same date . 
D) All the three

Question 5

Debit side of Bank Pass book corresponds to -

Accepted Answer

A) Credit side of Cash Book . 
B) Debit side of Cash Book . 
C) Debit side of Trial Balance 
D) Credit side of Balance Sheet 
A) Credit side of Cash Book . 
B) Debit side of Cash Book . 
C) Debit side of Trial Balance 
D) Credit side of Balance Sheet

Question 6

Generally the term fund is used to mean the difference between

Accepted Answer

A) Current assets and current liabilities . 
B) Profit and loss A/C and Balance sheet . 
C) Current assets and non-current liabilities . 
D) Current liabilities and non-current liabilities 
A) Current assets and current liabilities . 
B) Profit and loss A/C and Balance sheet . 
C) Current assets and non-current liabilities . 
D) Current liabilities and non-current liabilities

Question 7

Purchase day book records

Accepted Answer

A) All cash purchases . 
B) All credit purchases . 
C) Only credit purchase of raw material or goods purchased for resale . 
D) All purchases 
A) All cash purchases . 
B) All credit purchases . 
C) Only credit purchase of raw material or goods purchased for resale . 
D) All purchases

Question 8

Which of the following is not a cause of difference in balance as per cash book and balance as per bank pass book-

Accepted Answer

A) Errors in cash book . 
B) Errors in pass book . 
C) Cheques deposited and cleared. 
D) Cheques issued but not presented for payment 
A) Errors in cash book . 
B) Errors in pass book . 
C) Cheques deposited and cleared. 
D) Cheques issued but not presented for payment

Question 9

Cash received from debtors would be deemed as ………… of funds.

Accepted Answer

A) No flow . 
B) Sources . 
C) Uses . 
D) Gain 
A) No flow . 
B) Sources . 
C) Uses . 
D) Gain

Question 10

Difference in Bank Balance as per Pass Book and Cash Book may arise on account of

Accepted Answer

A) Cheque issued but not presented 
B) Cheque issued but dishonoured 
C) Cheque deposited and credited by bank 
D) All of (a) and (b) above 
A) Cheque issued but not presented 
B) Cheque issued but dishonoured 
C) Cheque deposited and credited by bank 
D) All of (a) and (b) above

Question 11

Credit balance as per Cash Book mean-

Accepted Answer

A) Surplus cash . 
B) Bank overdraft . 
C) Terms deposits with bank . 
D) None of these 
A) Surplus cash . 
B) Bank overdraft . 
C) Terms deposits with bank . 
D) None of these

Question 12

Benefits of preparing Bank Reconciliation Statement includes -

Accepted Answer

A) It bring out any errors committed in preparation of Cash book / Bank Pass Book 
B) Highlights under delay in clearance of cheques deposited but not credited 
C) Help know actual bank balance . 
D) All the three 
A) It bring out any errors committed in preparation of Cash book / Bank Pass Book 
B) Highlights under delay in clearance of cheques deposited but not credited 
C) Help know actual bank balance . 
D) All the three

Question 13

Which of these documents is not required for Bank Reconciliation

Accepted Answer

A) Bank column of Cash Book . 
B) Bank Pass Book . 
C) Bank Statement . 
D) Trial Balance 
A) Bank column of Cash Book . 
B) Bank Pass Book . 
C) Bank Statement . 
D) Trial Balance

Question 14

Which of the following is a capital expenditure

Accepted Answer

A) Repair of plant and machinery . 
B) Salary paid to workers . 
C) Cost of stand by equipment. 
D) Annual whitewash of the office building 
A) Repair of plant and machinery . 
B) Salary paid to workers . 
C) Cost of stand by equipment. 
D) Annual whitewash of the office building

Question 15

Which of these items are taken into consideration for preparation of adjusted Cash Book

Accepted Answer

A) Mistake in Cash Book . 
B) Mistake in Pass Book . 
C) Cheque issued but not presented for payment . 
D) Cheques deposited but not cleared 
A) Mistake in Cash Book . 
B) Mistake in Pass Book . 
C) Cheque issued but not presented for payment . 
D) Cheques deposited but not cleared

Question 16

Bank reconciliation statement is a part of -

Accepted Answer

A) Cash book . 
B) Trial balance . 
C) Auditors report . 
D) None of these 
A) Cash book . 
B) Trial balance . 
C) Auditors report . 
D) None of these

Question 17

Which of the following statements is/are true?

Accepted Answer

A) When there are cheques deposited but not collected by the banker, overdraft balance as per Pass Book will be less than that as per Cash Book 
B) When the payment side of the Cash Book is undercast, overdraft balance as per Cash Book will be more than overdraft balance as per Pass Book 
C) When reconciliation is to be done with the extracts of the Cash Book and Pass Book relating to the same period, the transactions which do not figure in one of the extracts are to be noted 
D) Bank interest debited in the Pass Book is to be added to Overdraft Balance as per Pass Book to arrive at the Overdraft balance as per Cash Book 
A) When there are cheques deposited but not collected by the banker, overdraft balance as per Pass Book will be less than that as per Cash Book 
B) When the payment side of the Cash Book is undercast, overdraft balance as per Cash Book will be more than overdraft balance as per Pass Book 
C) When reconciliation is to be done with the extracts of the Cash Book and Pass Book relating to the same period, the transactions which do not figure in one of the extracts are to be noted 
D) Bank interest debited in the Pass Book is to be added to Overdraft Balance as per Pass Book to arrive at the Overdraft balance as per Cash Book

Question 18

Bank reconciliation is a statement prepared to reconcile-

Accepted Answer

A) Trial balance . 
B) Cash book . 
C) Bank A/c. 
D) Cash as per cash book with bank balance as per bank pass book 
A) Trial balance . 
B) Cash book . 
C) Bank A/c. 
D) Cash as per cash book with bank balance as per bank pass book

Question 19

Which of the following statements is false?

Accepted Answer

A) When the bank column of a Cash Book shows a credit balance, it means an amount is due to the bank 
B) When Pass Book shows a debit balance, it means overdraft as per Pass Book 
C) While preparing Bank Reconciliation Statement, cheques paid into bank but not yet cleared are deducted from the Debit balance as per Cash Book to arrive at the balance as per Pass Book 
D) A Bank Reconciliation Statement is a part of Pass Book 
A) When the bank column of a Cash Book shows a credit balance, it means an amount is due to the bank 
B) When Pass Book shows a debit balance, it means overdraft as per Pass Book 
C) While preparing Bank Reconciliation Statement, cheques paid into bank but not yet cleared are deducted from the Debit balance as per Cash Book to arrive at the balance as per Pass Book 
D) A Bank Reconciliation Statement is a part of Pass Book

Question 20

Debit balance as per bank pass book mean -

Accepted Answer

A) Surplus cash . 
B) Bank Overdraft . 
C) Terms deposits with bank . 
D) None of these 
A) Surplus cash . 
B) Bank Overdraft . 
C) Terms deposits with bank . 
D) None of these

Exam 33: Revenue Recognition and Expenditure Classification

Revenue is generally recognised as being earned at that point of time when

The periodic total of purchase day book is posted to -

Which of these types of expenditure would not be treated as a Capital Expenditure

Which of these will not affect Bank and Cash balance

Debit side of Bank Pass book corresponds to -

Generally the term fund is used to mean the difference between

Purchase day book records

Which of the following is not a cause of difference in balance as per cash book and balance as per bank pass book-

Cash received from debtors would be deemed as ………… of funds.

Difference in Bank Balance as per Pass Book and Cash Book may arise on account of

Credit balance as per Cash Book mean-

Benefits of preparing Bank Reconciliation Statement includes -

Which of these documents is not required for Bank Reconciliation

Which of the following is a capital expenditure

Which of these items are taken into consideration for preparation of adjusted Cash Book

Bank reconciliation statement is a part of -

Which of the following statements is/are true?

Bank reconciliation is a statement prepared to reconcile-

Which of the following statements is false?

Debit balance as per bank pass book mean -

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

Ac Types, Balances, and Entries

Errors, Adjustments, and Expenditures in Accounting

Capitalization, Errors, Cash Book, and Types of Accounts

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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