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- 1. Multiple Choice
According to accrual concept of accounting, financial or business transaction is recorded:
When cash is received or paid
When transaction occurs
When profit is computed
When balance sheet is prepared
- 2. Multiple Choice
The John Marketing Company provides advertising services to an investment company in year A but receives advertising fee in year B. The John Marketing Company recognizes this revenue in year A. This action of John Marketing Company is justified by:
Business entity concept
Revenue recognition principle
Economic entity concept
Going concern concept
- 3. Multiple Choice
Which accounting concept or principle states that the transactions of a business must be recorded separately from those of its owners or other businesses?
Materiality concept of accounting
Time period concept of accounting
Matching principle of accounting
Business or economic entity concept of accounting
- 4. Multiple Choice
Balance Sheet of a firm indicates which of the following?
(a) Profit or Loss over a period.
(b) Financial position of the unit over a period.
(c) Financial position of the unit as on a particular date.
(d) Position of assets and liabilities over a period of time.
- 5. Multiple Choice
What standards are used to prepare financial statements by most of the countries and companies
(A) International Financial Reporting Standards
(B) International Financial Accounting Standards
(C) International Accounting & Auditing Standards
(D) International Risk Reporting Standards
- 6. Multiple Choice
The correct form of Accounting equation is
(A) Assets + Liabilities = Equity
(B) Assets – Liabilities = Equity
(C) Assets – Receivable = Equity
(D) Assets + Receivable = Equity
- 7. Multiple Choice
What from the following is NOT a current asset?
(A) Patent rights
(B) Inventory
(C) Cash
(D) Trade receivables
- 8. Multiple Choice
What from the following is/are NOT tangible asset(s)?
I. Patent rights
II. Goodwill
III. Land
(A) I only
(B) II only
(C) I and II only
(D) I, II and III
- 9. Multiple Choice
The process of recording Financial Data up to trial balance is
(A) Classifying
(B) Summarizing
(C) Analysing
(D) Book Keeping
- 10. Multiple Choice
When money is withdrawn from the bank, the bank will ------- the account of customer
(a) Credit
(b) Debit and Credit
(c) Debit
(d) None of the above
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