Deck 2: Accounting and Cost Management

Question 1

Which of the following is a Real A/c?

A)Building A/c
B)Capital A/c
C)Shyam A/c
D)Rent A/c

Answer 1

Building A/c

Question 2

Cost concept basically recognises ____.

A)Fair Market value
B)Historical cost
C)Realisable value
D)Replacement cost

Answer 2

Historical cost

Question 3

Double entry system is used in which type of accounting?

A)Cost
B)Financial
C)Management
D)All

Answer 3

Financial

Question 4

An accounting that deals with the accounting and reporting of information to management regarding the detail information is

A)Financial accounting
B)Management accounting
C)Cost accounting
D)Real Accounting

Question 5

Identify which is wrong rule

A)Nominal account- debit all expenses & losses
B)Real account- credit what comes in
C)Nominal account- credit all incomes & gains
D)Personal account- debit the receiver

Question 6

The nature of financial accounting is:

A)Historical
B)Forward looking
C)Analytical
D)Social

Question 7

The main object of cost accounting is:

A)To record day to day transactions of the business
B)To reveal managerial efficiency
C)To ascertain true cost of products and services
D)To determine tender price

Question 8

Accounting principles are generally based upon:

A)Practicability
B)Subjectivity
C)Convenience in recording
D)None of the above

Question 9

The system of recording based on dual aspect concept is called:

A)Double account system
B)Double entry system
C)Single entry system
D)All the above

Question 10

P & L a/c is prepared for a period of one year by following:

A)Consistency concept
B)Conservatism concept
C)Accounting period concept
D)Cost Concept

Question 11

All those to whom business owes money are:

A)Debtors
B)Investors
C)Creditors
D)Shareholders concept

Question 12

Bookkeeping is a/an……………………of correctly recording of business transition.

A)Art and Science
B)Art
C)Science
D)Art or Science

Question 13

The purpose of financial accounts is reporting to

A)Management only
B)Government only
C)Investor only
D)All of these

Question 14

Accounting principles are divided into two types. These are ---

A)Accounting Concepts
B)Accounting Conventions
C)Accounting Standards
D)Accounting Concepts & Accounting Conventions

Question 15

A statement containing the various ledgers balances on particular date

A)Compound Journal
B)Ledger
C)Trial balance
D)None of the above

Question 16

The transferring of debit and credit items from journal to the respective accounts in the ledger is called as

A)Ledger
B)Posting
C)Forward journal
D)None of these one of these

Question 17

The basic sequence in the accounting process can best be described as:

A)Transaction, journal entry, source document, ledger account, trial balance.
B)Source document, transaction, ledger account, journal entry, trial balance.
C)Transaction, source document, journal entry, trial balance, ledger account.
D)Transaction, source document, journal entry, ledger account, trial balance.

Question 18

Debit the receiver credit the giver rule for

A)Real a/c
B)Personal a/c
C)Nominal a/c
D)None of these

Question 19

What comes in is to be debited, what goes out is to be credited.

A)Rules of Personal
B)Rules of Real
C)Rules of Nominal
D)All of these