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- 1. Multiple Choice
1 The root of financial accounting system is
(a) Cost accounting
(b) Book keeping
( c) Stewardship accounting
(d) Social accounting
- 2. Multiple Choice
2 Cash book is a
(a) Principle book
(b) Subsidiary book
(c) Both principle and subsidiary book
(d) Journal proper
- 3. Multiple Choice
3. A cash book with discount, cash and bank column is called
(a) Simple cash book
(b) Three column cash book
(c) Double column cash book
(d) Petty cash book
- 4. Multiple Choice
4 Purchases book is used to record
(a) all purchases of goods
(b) all credit purchases of assets
(c) all credit purchases of good
(d) all purchases of assets
- 5. Multiple Choice
5 Sales book is used to record
(a) all sales of goods
(b) all credit sales of assets
(c) all credit sales of goods
(d) all sales of assets and goods
- 6. Multiple Choice
6 Sales return book is used to record
(a) Returns of goods by the customer for which cash is paid immediately
(b) Returns of goods by the customer for which cash is not paid immediately
(c) Returns of assets by the customer for which cash is not paid immediately
(d) Returns of assets by the customer for which cash is paid immediately
- 7. Multiple Choice
7 Trial balance is a
(a) Statement
b) Account
(c) Ledger
(d) Journal
- 8. Multiple Choice
8 Trial balance is prepared:
(a) At the end of the year
(b) On a particular date
(c) For a year
(d) None of the above
- 9. Fill in the Blank
9 J.F means
- 10. Multiple Choice
10 Main objective of preparing ledger account is to
(a) Ascertain the financial position
(b) Ascertain the profit or loss
(c) Ascertain the profit or loss and the financial position
(d) Know the balance of each ledger account
- 11. Multiple Choice
11. Classify the type of account for the below
I. Bank -
ii. Outstanding salary
(a)Personal and nominal
(b) Personal personal
(c) personal and real
(d) none of the above
- 12. Multiple Choice
12 The process of finding the net amount from the totals of debit and credit columns in a ledger is known as
(a) Casting
(b) Posting
(c) Journalising
(d) Balancing
- 13. Multiple Choice
13 L F means
(a) journal page number
(b) last page of ledger
(c) ledger page number
(d) all the above
- 14. Multiple Choice
14 The process of transferring the debit and credit items from journal to ledger accounts is
called
(a) Casting
(b) Posting
(c) Journalising
(d) Balancing
- 15. Multiple Choice
15 Real account deals with
(a) Individual persons
(b) Expenses and losses
(c) Assets
(d) Incomes and gains
- 16. Multiple Choice
16 In double entry system of book keeping, every business transaction affects
(a) Minimum of two accounts
(b) Same account on two different dates
(c) Two sides of the same account
(d) Minimum three accounts
- 17. Fill in the Blank
17. Three types of accounts are _______ , ______ and _________
- 18. Multiple Choice
18. Which one of the following is representative personal account?
(a) Building A/c
(b) Outstanding salary A/c
(c) Mahesh A/c
(d) Balan & Co
- 19. Multiple Choice
19. GAAPs are:
(a) Generally Accepted Accounting Policies
(b) Generally Accepted Accounting Principles
(c) Generally Accepted Accounting Provisions
(d) None of these
- 20. Multiple Choice
20. The rule of stock valuation ‘cost price or realisable value’ whichever is lower is based on the
accounting principle of:
(a) Materiality
(b) Money measurement
(c) Conservatism
(d) Accrual
- 21. Multiple Choice
21. The concept which assumes that a business will last indefinitely is
(a) Business Entity
(b) Going concern
(c) Periodicity
(d) Conservatism
- 22. Multiple Choice
22. The business is liable to the proprietor of the business in respect of capital
introduced by the person according to
(a) Money measurement concept
(b) Cost concept
(c) Business entity concept
(d) dual aspect concept
- 23. Multiple Choice
23. Which one of the following is not a main objective of accounting?
(a) Systematic recording of transactions
(b) Ascertainment of the profitability of the business
(c) Ascertainment of the financial position of the business
(d) Solving tax disputes with tax authorities
- 24. Multiple Choice
24. Financial position of a business is ascertained on the basis of
(a) Journal
(b) Trial balance
(c) Balance Sheet
(d) ledger
- 25. Multiple Choice
25. Who is considered to be the internal user of the financial information?
(a) Creditor
(b) Employee
(c) Customer
(d) Government
- 26. Multiple Choice
1.______ all expenses and losses
2. ________ what goes out
3. ________ the giver.
(a)Debit,debit,debit
(b) credit ,credit, credit
(c) Debit, credit, debit
(d) debit, credit,credit
- Answer choicesTagsAnswer choicesTags