Question 1

Income and Expenditure Account records transactions of:

Accepted Answer

A) Revenue nature only 
B) Capital nature only 
C) Both revenue and capital nature 
D) Income of only revenue nature and expenditure of revenue and capital nature 
A) Revenue nature only 
B) Capital nature only 
C) Both revenue and capital nature 
D) Income of only revenue nature and expenditure of revenue and capital nature

Question 2

Under the net worth method, the profit can be ascertained by preparing

Accepted Answer

A) Profit and loss account 
B) Cash account 
C) Statement of Affairs 
D) Statement of Profit 
A) Profit and loss account 
B) Cash account 
C) Statement of Affairs 
D) Statement of Profit

Question 3

Income and expenditure Account shows a balance of:

Accepted Answer

A) Cash in in hand 
B) Capital Account 
C) Net Profit 
D) Excess of revenue over expenditure or vice versa. 
A) Cash in in hand 
B) Capital Account 
C) Net Profit 
D) Excess of revenue over expenditure or vice versa.

Question 4

Non-trading organization prepares

Accepted Answer

A) Income and Expenditure A/c 
B) Trading and profit and loss A/c 
C) Trading A/c only 
D) Profit and loss A/c only 
A) Income and Expenditure A/c 
B) Trading and profit and loss A/c 
C) Trading A/c only 
D) Profit and loss A/c only

Question 5

Credit purchase is determined by preparing

Accepted Answer

A) Purchase Account 
B) Debtor's Account 
C) Creditor's Account 
D) Cash A/c 
A) Purchase Account 
B) Debtor's Account 
C) Creditor's Account 
D) Cash A/c

Question 6

Outstanding subscription is a/an

Accepted Answer

A) Income 
B) Asset 
C) Liability 
D) None of these 
A) Income 
B) Asset 
C) Liability 
D) None of these

Question 7

Credit sales can be ascertained by preparing

Accepted Answer

A) Creditors account 
B) Debtors account 
C) Both of the above 
D) None of the Above 
A) Creditors account 
B) Debtors account 
C) Both of the above 
D) None of the Above

Question 8

Under single entry system details of

Accepted Answer

A) Expenses will not be available 
B) Revenues will not be available 
C) Expenses and revenues will not be available 
D) None of the above 
A) Expenses will not be available 
B) Revenues will not be available 
C) Expenses and revenues will not be available 
D) None of the above

Question 9

Income and Expenditure A/c reveals

Accepted Answer

A) Cash in hand 
B) Surplus or deficiency 
C) Capital A/c 
D) Profit or Loss 
A) Cash in hand 
B) Surplus or deficiency 
C) Capital A/c 
D) Profit or Loss

Question 10

Under single entry system, certain transactions are recorded :

Accepted Answer

A) At regular intervals 
B) At the end of the accounting period 
C) Totally 
D) None of the above 
A) At regular intervals 
B) At the end of the accounting period 
C) Totally 
D) None of the above

Question 11

Out of the following items, which one is shown in the Receipts and Payments Account:

Accepted Answer

A) Outstanding Salary 
B) Depreciation 
C) Life Membership Fees 
D) Accrued Subscription 
A) Outstanding Salary 
B) Depreciation 
C) Life Membership Fees 
D) Accrued Subscription

Question 12

The minimum share application money is

Accepted Answer

A) Rs.5 per share 
B) 5% of nominal value of shares 
C) 10% of nominal value of shares 
D) 20% of nominal value of shares. 
A) Rs.5 per share 
B) 5% of nominal value of shares 
C) 10% of nominal value of shares 
D) 20% of nominal value of shares.

Question 13

The content of single entry system is

Accepted Answer

A) Double entry 
B) Single entry 
C) No entry 
D) A mixture of all the above 
A) Double entry 
B) Single entry 
C) No entry 
D) A mixture of all the above

Question 14

When closing capital is more than opening capital it means

Accepted Answer

A) Profit 
B) Loss 
C) Withdrawal of capital 
D) None of these 
A) Profit 
B) Loss 
C) Withdrawal of capital 
D) None of these

Question 15

Income and Expenditure Account reveals

Accepted Answer

A) Surplus or Deficiency 
B) Cash in Hand 
C) Net Profit 
D) Capital Fund 
A) Surplus or Deficiency 
B) Cash in Hand 
C) Net Profit 
D) Capital Fund

Question 16

Credit purchases can be ascertained by preparing

Accepted Answer

A) Creditors account 
B) Debtors account 
C) Both of the above 
D) None of the above 
A) Creditors account 
B) Debtors account 
C) Both of the above 
D) None of the above

Question 17

Procedure of conversion of Single entry books into Double entry

Accepted Answer

A) Depends upon the nature of the records maintained in the single entry 
B) To prepare a statement of affairs at the starting date of the selected accounting 
C) Some items like allowance, bad debt, dishonoured bills must be included 
D) All the above 
A) Depends upon the nature of the records maintained in the single entry 
B) To prepare a statement of affairs at the starting date of the selected accounting 
C) Some items like allowance, bad debt, dishonoured bills must be included 
D) All the above

Question 18

Under Incomplete records only _____ accounts are maintained.

Accepted Answer

A) personal 
B) impersonal 
C) real 
D) nominal 
A) personal 
B) impersonal 
C) real 
D) nominal

Question 19

Which method is used under single entry system to find out the profit or loss?

Accepted Answer

A) Double entry system 
B) Statement of affairs method 
C) Cash book 
D) All of the above 
A) Double entry system 
B) Statement of affairs method 
C) Cash book 
D) All of the above

Question 20

A profit on the sale of furniture of a club will be taken to:

Accepted Answer

A) Cash account 
B) Receipts and payment account 
C) Income and expenditure account 
D) Balance sheet 
A) Cash account 
B) Receipts and payment account 
C) Income and expenditure account 
D) Balance sheet

Exam 47: Single Entry System and Profit Calculation

Income and Expenditure Account records transactions of:

Under the net worth method, the profit can be ascertained by preparing

Income and expenditure Account shows a balance of:

Non-trading organization prepares

Credit purchase is determined by preparing

Outstanding subscription is a/an

Credit sales can be ascertained by preparing

Under single entry system details of

Income and Expenditure A/c reveals

Under single entry system, certain transactions are recorded :

Out of the following items, which one is shown in the Receipts and Payments Account:

The minimum share application money is

The content of single entry system is

When closing capital is more than opening capital it means

Income and Expenditure Account reveals

Credit purchases can be ascertained by preparing

Procedure of conversion of Single entry books into Double entry

Under Incomplete records only _____ accounts are maintained.

Which method is used under single entry system to find out the profit or loss?

A profit on the sale of furniture of a club will be taken to:

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

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

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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