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cash
Notes payable
2-January 1, 2004 - S started business with RS. 100,000. The 2 GL Accounts inv
4- All of the following would be included as part of the cost of a depreciable asset except
B- Financial satement
C- Ledger
D- Trial balance
8- Indirect expenses appears in the .................. side of the profit and loss account
A- Debit
B- Credit
C- Both
D- None of the above
9 -Which one of the following is the best use of pro forma financial statements ?
A- Review the company's financial performance over the past five years.
B- Enable the treasure to make appropriate short-term investments.
A- Expense
B- Capital
C- Loan
D- Inerest
11 -Stock in trade are to be recorded at cost or market price whichever is less is based on ............... principle.
A- Prudence
B- Historical Cost Concept
C- Cost Benefit
D- Business Entity
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12 -the Golden Rule for Nominal Account is
A -Debit all expenses & loses; Credit all income & Gains (Nominal
Account )
B -Debit the receiver; Credit the Giver ( Personal Account )
C- Debit what comes in; Credit what goes out (Real Account)
D- Any one of the above
A- Balance Sheet
B- Income Statement
C- Cash Flow Statemnt
D- Stetement of retained earnings
14- The amount which the proprietor has invested in the business is
A- Capital
B- Asset
C- Liability
D- Loan
B- Credit
C- Contra
D- All of the above
17 -The assets are recorded in books of accounts in the cost of acquisition is based on ............ concept.
A-prudence
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B- Historical Cost
C- Cost Benefit
D- Business Entity
18- If the total debits exceeds the total credits of trial balance, suspense account will show .......... balance.
A- Credit
B- Debit
C- No balance
D- Any of the above
B- Balance Sheet
C- Cash Flow Statement
D- Statement of Stockholder's equity
A-Two
B- one
C- three
D- Four
C- Land
D- Trademarks
22- ………. Account enables the trader to find out gross profit or loss.
A- Trading
B- P&L
C- Balance sheet
D- Fund Flow
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23 -The American approach is otherwise Known as .............. approach
A- Accrual
B- Accounting Equation
C- Conrta
D- Deferred
A-Debit
B- Credit
C- Contra
D- All of the above
26 -The assets of business on 31st December, 2002 were worth RS.50,000 and its capital was Rs.35,000. Its
Liabilities on that Date were Rs............ .
A- 50000
B- 35000
C- 15000
D- 85000
A- Conservatism Principle
B- Historical Cost Principle
C- Full Disclosure Principle
D- Consistency principle
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28 -Receipt is an acknowledgement for...................
A- Cash paid
B- Payment Receivable
C- Payment Promised
D- Cash Received
29- March 20, 2004 - Returned goods from jaleel Rs.5,000. the 2 Gl Accounts involved are:
B- Earned
C- Contracted
D- Radily available for use
31-The accounting principle that states companies and owners should be account for separately.
33 - The assumption that states that businesses can divide up their activities into artificial time periods.
Business entity concept
Going concern concept
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monetary unit assumption
Periodicity Assumption
34- Assets are recorded at their original purchase price according to the:
Materiality Principle
Relibility
Verifiability
Represintational faithfulness
timeliness
Neutrality
Consistency principle
38- Recording expenses and revenues in the same period in which they occur.
Objectivity principle
Matching principle
Historical cost principle
Industry practices constranint
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1.____Trading________ account enables the trader to findout grossprofit or loss.
2.By preparing profit and loss account ___Net Profit or loss______ can be findout.
5.Indirect expenses appears in the ___Debit_______ side of theprofit and loss account.
8.‘Salaries and wages’ appear on the profit and loss account account.
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Wages is an example of
a) capital expenses
b) indirect expenses
c) direct expenses
3.Opening stock is
4.Balance sheet is a
a) statement
b) account
c) ledger
b) long life
c) no life
a) current assets
b) fixed assets
c) current liability
7.Capital is a
a) income
b) assets
c) liability
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8.Drawing must be deducted from
a) net profit
b) capital
c) gross profit
b) liability side
c) assets side
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