Q.1
What is Accounting?
  • systematic record of transaction
  • Analysing
  • interpretating
  • All the above
Q.2
What is journal?
  • Primary book
  • Secondary
  • third book
  • None
Q.3
What is Cash book?
  • Recording three column,single,double
  • Recording all cash transaction
  • ledger
  • Both A & B
Q.4
Business transactions are recorded
  • (a) in chronological order
  • (b) weekly
  • (c) at the end of the month
  • (d) all of these
Q.5
Income and Expenditure Account records transactions of
  • Revenue nature only
  • Capital nature only
  • Both Capital and Revenue
  • Cash transactions only
Q.6
Nominal accounts are related to ?
  • (a) assets and liabilities
  • (b) expenses and incomes
  • (c) customers and creditors
  • (d) none of these
Q.7
Income and Expenditure Account is
  • Personal Account
  • Real Account
  • Nominal Account
  • Contingent Account
Q.8
Journal is called a book of
  • (a) primary entry
  • (b) secondary entry
  • (c) final entry
  • (d) none of the above
Q.9
Subscription received in advance is
  • An Income
  • An Expense
  • An Asset
  • A liability
Q.10
Which of the following statements about contingent assets and contingent liabilities are correct?1-A contingent asset should be disclosed by note if an inflow of economic benefits is probable.A contingent liability should be disclosed by note if it is probable that a transfer of economic benefits to settle it will be required, with no provision being made.3 -No disclosure is required for a contingent liability if it is not probable that a transfer of economic benefits to settle it will be required.4 -No disclosure is required for either a contingent liability or a contingent asset if the likelihood of a payment or receipt is remote.
  • 1 and 4 only
  • 2 and 3 only
  • 2, 3 and 4
  • 1, 2 and 4
Q.11
Transferring information from a journal entry to a ledger account (p. 98)
  • journaling
  • posting
  • file maintenance
  • correcting entry
Q.12
The amount of interest is credited by the buyer to
  • Interest Account
  • Vendor Account
  • Asset Account
  • Depreciation Account
Q.13
Under hire purchase system the initial payment is known as
  • First instalment
  • Down payment
  • Purchase price
  • Hire charges
Q.14
Non -Departmental items of expenses are charged to
  • Departments on the basis of sales
  • General Profit and Loss account
  • Departments based on fixed assets employed
  • Capital fund
Q.15
Hire purchase price includes
  • Cash price and interest
  • Cash price and down payment
  • Down payment and interest
  • Total Price
Q.16
Who issues International Financial Reporting Standards?
  • The government
  • The International Accounting Standards Board
  • The stock exchange
  • The IFRS Advisory Committee
Q.17
Under the debtors system in branch a/c ,credit sales are
  • Debited to branch a/c
  • Credited to branch a/c
  • Debited to debtors a/c
  • Credited to debtors a/c
Q.18
Receipts and Payments Account is
  • Personal Account
  • Real Account
  • Nominal Account
  • Gross and Net Profit
Q.19
Legacies are generally
  • Treated as income
  • Capitalized and taken to balance sheet
  • Treated as expenditure
  • Treated as Revenue and payments
Q.20
Short workings irrecoverable are transferred to
  • Profit and loss a/c
  • Minimum Rent a/c
  • Royalty a/c
  • Land Lord a/c
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