Deck 19: Single Entry System and Company Ownership

Question 1

Single Entry system has effect:

A)One effect
B)Tow effect
C)Three effect
D)None of the above

Answer 1

One effect

Question 2

In Single entry system, it is not possible to prepare:

A)Receipts and payments A/c
B)Trial balance
C)Balance sheet
D)Account sales

Answer 2

Trial balance

Question 3

A Single entry system is usually adopted by:

A)Company
B)Partnership
C)Government
D)None of above

Answer 3

Government

Question 4

Single Entry system is must suited where:

A)Cash transactions are many
B)Credit transactions are many.
C)Cash & credit transactions are more
D)None of the above

Question 5

Capital can be obtained by preparing:

A)Cash book
B)Statement of affairs
C)Debtors A/c
D)Creditors A/c

Question 6

Credit sale can be obtained by preparing:

A)Cash book
B)Statement of affairs
C)Debtors A/c
D)Creditors A/c

Question 7

Credit Purchase can be calculated by preparing:

A)Cash book
B)Statement of affairs
C)Debtors A/c
D)Creditors A/c

Question 8

In single entry system profit is calculated as follows:

A)Opening Capital + Drawing + Fresh Capital- Ending capital
B)Capital at the end - Drawing - Fresh capital - Opening capital
C)Capital at the end + Drawing - Fresh capital -Opening capital
D)None of the above

Question 9

In single entry system only accounts are opened:

A)Personal A/c
B)Real A/c
C)Nominal A/c
D)Real & Nominal A/c

Question 10

Single entry system cannot be a maintained by:

A)Joint stock company
B)Partnership A/c
C)Sole-tradership A/c
D)All of these

Question 11

Single entry system of book - keeping is generally followed by:

A)Small business
B)Non - trading
C)Large business
D)None

Question 12

A Statement of assets and liabilities prepared under the single entry system is called:

A)Balance sheet
B)Financial statement
C)Cash statement
D)Statement of affairs

Question 13

Net worth of an organization means the excess of its total assets over total:

A)Expenses
B)Incomes
C)Liabilities
D)Both (a) and (b)

Question 14

Which one of is most likely to have the lowest rate of stock turn:

A)Jeweler
B)Green grocer
C)Super market
D)News agent

Question 15

If a store's mark up is 25% the margin must be:

A)5%
B)15%
C)10%
D)20%

Question 16

If the rate of G.P on sale is 20% and cost of goods, sold is Rs. 100,000, then amount of G.P will be equal to:

A)Rs. 20,000
B)Rs.25,000
C)Rs.35,000
D)Rs.15,000

Question 17

Bad -debts written off always affect the:

A)Debtors A/c
B)Creditor A/c
C)Cash A/c
D)None of these

Question 18

Company has ……………

A)Separate Legal Entity
B)Perpetual Existence
C)Limited Liability
D)All of the Above

Question 19

Shareholders are :

A)Customers of the Company
B)Owners of the Company
C)Creditors of the Company
D)None of these

Question 20

Who are the real owners of a company?

A)Government
B)Board of Directors
C)Equity shareholders
D)Debentureholders

Question 21

A Company is created by :

A)Special act of the Parliament
B)Companies Act
C)Investors
D)Members

Question 22

Equity shares cannot be issued for the purpose of:

A)Cash Receipts
B)Purchase of assets
C)Redemption of debentures
D)Distribution of dividend

Question 23

The shares on which there is no any pre-fixed rate of dividend is decided, but the rate of dividend is fluctuating every year according to the availability of profits, such share are called :

A)Equity Share
B)Non-cumulative preference share
C)Non-convertible preference share
D)Non-guaranteed preference share

Question 24

Preference shares, in case the holders of these have a right to convert their preference shares into equity shares at their option according to the terms of issue, such shares are called :

A)Cumulative Preference Share
B)Non-cumulative Preference Share
C)Convertible Preference Share
D)Non-convertible Preference Share