Question 1

The Income created but not yet received is known as:

Accepted Answer

A) Unearned Income 
B) Outstanding Income 
C) Acrued Income 
D) none 
A) Unearned Income 
B) Outstanding Income 
C) Acrued Income 
D) none

Question 2

Which of the following is not a sub-field of accounting?

Accepted Answer

A) Management Accounting 
B) Cost Accounting 
C) Financial Accounting 
D) Book-keeping 
A) Management Accounting 
B) Cost Accounting 
C) Financial Accounting 
D) Book-keeping

Question 3

In which of the following cases, accounting estimates are needed?

Accepted Answer

A) Employs benefit schemes 
B) Impairment of losses 
C) Inventory obsolescence 
D) All of the above 
A) Employs benefit schemes 
B) Impairment of losses 
C) Inventory obsolescence 
D) All of the above

Question 4

A revenue that is collected before it has been earned is called

Accepted Answer

A) Accrued revenue 
B) Unrecorded revenue 
C) Deferred revenue 
D) Unearned 
A) Accrued revenue 
B) Unrecorded revenue 
C) Deferred revenue 
D) Unearned

Question 5

Anticipate no profits and provide for all possible losses. This is essence of which of the following accounting principles:

Accepted Answer

A) Materiality Principle 
B) Timeliness Principle 
C) Consistency Principle 
D) Conservatism Principle 
A) Materiality Principle 
B) Timeliness Principle 
C) Consistency Principle 
D) Conservatism Principle

Question 6

Interest of Drawings is:

Accepted Answer

A) Expenditure for the business 
B) Expense for the business 
C) Gain for the business 
D) none 
A) Expenditure for the business 
B) Expense for the business 
C) Gain for the business 
D) none

Question 7

Income tax paid by a sole proprietor from his business income should be:

Accepted Answer

A) Debited to the trading Account 
B) Debited to the Profit and Loss Account 
C) Deducted from the Capital account in the Balance Sheet 
D) none 
A) Debited to the trading Account 
B) Debited to the Profit and Loss Account 
C) Deducted from the Capital account in the Balance Sheet 
D) none

Question 8

Which is the third stage of accounting process?

Accepted Answer

A) Recording 
B) Classifying 
C) Summarizing 
D) none 
A) Recording 
B) Classifying 
C) Summarizing 
D) none

Question 9

When goods are purchased for cash, the entry will be recorded in the?

Accepted Answer

A) Cash book 
B) Purchases book 
C) Journal 
D) None 
A) Cash book 
B) Purchases book 
C) Journal 
D) None

Question 10

Value of goods withdrawn by the proprietor for his personal use should be credited to ____.

Accepted Answer

A) Capital A/c 
B) Sales A/c 
C) Drawings A/c 
D) Purchases A/c 
A) Capital A/c 
B) Sales A/c 
C) Drawings A/c 
D) Purchases A/c

Question 11

Which of the following is NOT normally considered to be an asset?

Accepted Answer

A) Retained earnings. 
B) Cash. 
C) Buildings. 
D) Accounts receivable. 
A) Retained earnings. 
B) Cash. 
C) Buildings. 
D) Accounts receivable.

Question 12

M/s Stationery Mart will debit the purchase of stationery to _______

Accepted Answer

A) Purchases A/c 
B) General Expenses A/c 
C) Stationery A/c 
D) None 
A) Purchases A/c 
B) General Expenses A/c 
C) Stationery A/c 
D) None

Question 13

Journal entry for wages paid Rs. 5,000 for installation of plant will be

Accepted Answer

A) Dr. Plant Repairs A/c and Cr. Cash A/c Rs. 5,000 
B) Dr. Wages A/c and Cr. Cash A/c Rs. 5,000 
C) Dr. Plant A/c and Cr. Cash A/c Rs. 5,000 
D) None of the Above 
A) Dr. Plant Repairs A/c and Cr. Cash A/c Rs. 5,000 
B) Dr. Wages A/c and Cr. Cash A/c Rs. 5,000 
C) Dr. Plant A/c and Cr. Cash A/c Rs. 5,000 
D) None of the Above

Question 14

The primary objective of the matching principle is to:

Accepted Answer

A) Provide timely information to external decision-makers 
B) Provide full disclosure 
C) Recognize expenses in the same period as the related revenue 
D) All of the above 
A) Provide timely information to external decision-makers 
B) Provide full disclosure 
C) Recognize expenses in the same period as the related revenue 
D) All of the above

Question 15

The debit side discount column of three column cash book is called?

Accepted Answer

A) Trade discount 
B) Cash discount 
C) Discount allowed 
D) Discount received 
A) Trade discount 
B) Cash discount 
C) Discount allowed 
D) Discount received

Question 16

All of the following are not considered cash except?

Accepted Answer

A) Postage and stamps 
B) Securities 
C) Investments 
D) Cheque 
A) Postage and stamps 
B) Securities 
C) Investments 
D) Cheque

Question 17

In case a trail balance does not agree the difference is put to

Accepted Answer

A) Trading A/c 
B) Profit & Loss A/c 
C) Capital A/c 
D) Suspense A/c 
A) Trading A/c 
B) Profit & Loss A/c 
C) Capital A/c 
D) Suspense A/c

Question 18

Every transaction has two aspects i.e., debit and credit, under which of the following accounting principles:

Accepted Answer

A) Cash Accrual Principle 
B) Revenue Accrual Principle 
C) Dual Aspect Principle 
D) Double Entry Book-keeping System 
A) Cash Accrual Principle 
B) Revenue Accrual Principle 
C) Dual Aspect Principle 
D) Double Entry Book-keeping System

Question 19

Income is the output of excess or deficiency of revenue over related:

Accepted Answer

A) Expired Cost 
B) Unexpired Cost 
C) Sunk Cost 
D) none 
A) Expired Cost 
B) Unexpired Cost 
C) Sunk Cost 
D) none

Question 20

The manufacturing account is prepared

Accepted Answer

A) To ascertain the profit or loss on the goods purchased 
B) To ascertain the cost of manufactured goods 
C) To show the sale proceeds from the goods produced during the year 
D) None of the above. 
A) To ascertain the profit or loss on the goods purchased 
B) To ascertain the cost of manufactured goods 
C) To show the sale proceeds from the goods produced during the year 
D) None of the above.

Exam 43: Fundamentals of Accounting: Objectives, Concepts, and Principles

The Income created but not yet received is known as:

Which of the following is not a sub-field of accounting?

In which of the following cases, accounting estimates are needed?

A revenue that is collected before it has been earned is called

Anticipate no profits and provide for all possible losses. This is essence of which of the following accounting principles:

Interest of Drawings is:

Income tax paid by a sole proprietor from his business income should be:

Which is the third stage of accounting process?

When goods are purchased for cash, the entry will be recorded in the?

Value of goods withdrawn by the proprietor for his personal use should be credited to ____.

Which of the following is NOT normally considered to be an asset?

M/s Stationery Mart will debit the purchase of stationery to _______

Journal entry for wages paid Rs. 5,000 for installation of plant will be

The primary objective of the matching principle is to:

The debit side discount column of three column cash book is called?

All of the following are not considered cash except?

In case a trail balance does not agree the difference is put to

Every transaction has two aspects i.e., debit and credit, under which of the following accounting principles:

Income is the output of excess or deficiency of revenue over related:

The manufacturing account is prepared

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

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

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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