_____________must be properly maintained to increase their productivity.

(a)

Liabilities

(b)

Assets

(c)

Debtors

(d)

None of these

____________also require accounting records to submit in courts to prove their claims.

(a)

Salesmen

(b)

Owners

(c)

Producers

(d)

Businessmen

______________ wrote his 'Summa de arithmetical'.

(a)

Kautilya

(b)

Valluvar

(c)

Luca pacioli

(d)

Chanakaya

________________use the accounting data in their bargaining strategies with the management.

(a)

Production department

(b)

Labour unions

(c)

Tax authorities

(d)

Researchers

The activities of a business, which involve transfer of money or money's worth are called _______________

(a)

Transactions

(b)

Events

(c)

Accounting cycle

(d)

Costing

The famous book "Arthasastra" was written by ___________

(a)

Kautilya

(b)

Chandrakupta

(c)

Luco Pacioli

(d)

Batlibai

The first step of accounting cycle.

(a)

Transactions

(b)

Journalising

(c)

Profit & loss account

(d)

Trading account

_________ is the language of business.

(a)

Accounting

(b)

Book-keeping

(c)

Trade

(d)

Banking

_______ is an amount which is withdrawn for personal use by proprietor.

(a)

Drawings

(b)

Capital

(c)

Cash

(d)

Credit

Transaction which involves immediate cash payment is _______

(a)

credit transaction

(b)

cash transaction

(c)

debit

Transferring entries from journal to ledger is called ______

(a)

Journalising

(b)

Ledger

(c)

Loss

(d)

Posting

_______________ cannot remember all the transactions for quite a long time.

(a)

Owners

(b)

Bankers

(c)

Consumers

(d)

Business Managers

_____________ is the process of managing the income and expenses of a business firm.

(a)

Economic

(b)

Statistics

(c)

Accountancy

(d)

None of these

ASB stands for________________

(a)

Accounting Standard Board

(b)

Accounting Standard Business

(c)

Accounting Statistics Business

(d)

Accounting Standard Books

According to ________ concept, every transaction or event has two aspects i.e., dual effect.

(a)

Dual aspect concept

(b)

Periodicity concept

(c)

Matching concept

(d)

Cost concept

Cost incurred should be matched with the revenues of the particular Period is based on _________

(a)

matching concept

(b)

historical cost concept

(c)

full disclosure concept

(d)

dual aspect concept

________ is prepared in three copies.

(a)

Debit Note

(b)

Credit Note

(c)

Receipts

(d)

Invoice

A debit note is called as _______

(a)

debit memo

(b)

credit memo

(c)

pay-in-slip

(d)

receipts

Transactions relating with individuals or firms or companies are known as _______

(a)

personal accounts

(b)

real accounts

(c)

nominal accounts

(d)

capital accounts

Personal account deals with ____

(a)

Debtor and creditor

(b)

Assets and Liabilities

(c)

Expenses and Losses

(d)

None of these

The accounts relating to expenses, losses, revenues and gains are called ______________

(a)

Nominal accounts

(b)

Real accounts

(c)

Personal accounts

(d)

Tangible Real accounts

Accounts of persons with whom the business deals is known as________.

(a)

Personal A/c

(b)

Real A/c

(c)

Nominal A/c

(d)

 Rrobt & Loss A/c

Financial position of a business concern is ascertained on the basis of_______.

(a)

Records Prepared under book - keeping process

(b)

Trial Balance

(c)

Accounting reports

(d)

None of the above

The column of ledger which links the entry with Journal is _________________

(a)

L.F. Column

(b)

J.F. Column

(c)

Particulars Column

(d)

Amount Column

In a ledger account, when the debit total and credit total are equal it is called ________________

(a)

debit balance

(b)

credit balance

(c)

both 'a' and 'b'

(d)

nil balance

The term balance brought down is used in the name of ____________.

(a)

balance b/d

(b)

balanced c/d

(c)

debit balance

(d)

credit balance

_____________ is prepared on a specific data.

(a)

Trial Balance

(b)

Journal

(c)

Ledger

(d)

All of the above

Wages paid to workers for the installation of a new machinery should be debited to ___________account.

(a)

wages

(b)

machinery

(c)

factory expenses

The preparation of trial balance is for___________

(a)

Locating errors of commission

(b)

Locating errors of principle

(c)

Locating clerical errors

(d)

All of the above

The account which has a credit balance and is shown in the debit column of the trial balance is

(a)

Sundry debtors account

(b)

Bills receivable account

(c)

Purchases account

(d)

Capital account

______ is one of the most important books, in which credit purchases of goods are recorded.

(a)

Purchase book

(b)

Sales book

(c)

Purchases returns book

(d)

None of these

_____ is maintained to record only credit sale of goods in which the business dealing.

(a)

Purchases book

(b)

Sales book

(c)

Cash book

(d)

Purchases returns book

The endorsee is entitled to collect the _____

(a)

cheque

(b)

bill

(c)

paper

(d)

money

Returns inward book is also known as _____

(a)

Purchase returns book

(b)

Sales return book

(c)

Purchase Book

(d)

Sales Book

List price of the goods purchased is Rs. 60,000 cash paid is Rs. 45,000 (After receiving a cash discount of Rs. 9,000) the trade discount will be?

(a)

10%

(b)

7.5%

(c)

15%

(d)

25%

___________is the statement prepared by the seller of goods.

(a)

Voucher

(b)

Receipt

(c)

Invoice

(d)

Ledger

___________ discount is allowed to the parties making prompt or immediate payment.

(a)

Trade

(b)

Credit

(c)

Cash

(d)

None of these

In triple column cash book, cash withdrawn from bank for office use will appear in ____________

(a)

debit side of the cash book only

(b)

both sides of the cash book

(c)

credit side of the cash book only

(d)

debit side of the pass book only

Postage stamps purchased for 50 by the business. This transaction will be recorded in ___________

(a)

Petty cash book

(b)

Purchase book

(c)

Sales book

(d)

Bills receivable book

Cash book is a type _________but treated as a_______of accounts.

(a)

subsidiary book, Principal book

(b)

Principal book, subsidiary book

(c)

subsidiary book, subsidiary book

(d)

Principal book, principal book

Goods given as charity should be credited to___________.

(a)

Purchases account

(b)

Journal proper

(c)

Cash book

(d)

Charity Account

Payment of rent expenses is recorded on which side of cash book ?

(a)

Receipts

(b)

Payments

(c)

Income

(d)

Expense

___________is not possible to have unfavourable cash balance in the cash book.

(a)

Bank statement

(b)

Bank overdraft

(c)

Cash overdraft

(d)

Cash book

Debit balance in the Cash book means________________

(a)

Overdraft as per Pass book

(b)

Credit balance as per Pass book

(c)

Overdraft as per Cash book

(d)

None of these

A time gap between the depositing of the ________________ and the collection by the bank.

(a)

cash

(b)

cheques

(c)

petty Cash

(d)

none of these

 Bank reconciliation statement is_________.

(a)

Part of bank statement

(b)

Part of the cash book

(c)

a separate statement

(d)

 A sub-division of journal

If any amount is directly deposited into the bank then__________.

(a)

Cash book will show less balance & bank book will show more

(b)

Cash book will show more balance & bank book will show less

(c)

Cash book will show double balance

(d)

Bank book will show double

When the balance as per Cash Book is the starting point to ascertain balance as per bank statement, direct deposits by customers are _________

(a)

Added

(b)

Subtracted

(c)

not adjusted

(d)

None of these above

When the accountant has failed to record a transaction partially, it is known as ________________

(a)

error of principle

(b)

error of partial omission

(c)

error of omission

(d)

error of commission

Cash received from Mani whose account was previously written off as a Bad debt should be credited _______________

(a)

Cash account

(b)

Mani's account

(c)

Bad debts recovered account

(d)

Miscellaneous income account

Goods of Rs. 5000 purchased from Mr.B were recorded in sales book, the rectification of this error will________.

(a)

Increase the gross profit

(b)

Reduce the gross profit

(c)

Have no effect on gross profit

(d)

None of the above

Casting errors are the result of _________.

(a)

Wrong totalling

(b)

Wrong Balancing

(c)

Wrong carry forward 

(d)

none of the above

The written down value is the true value of ________ assets

(a)

fixed

(b)

current

(c)

tangible

(d)

intangible

____________ method is appropriate for the fixed assets having certain period of working life.

(a)

Diminishing balance

(b)

Sinking fund

(c)

Straight line

(d)

Depreciation fund

Land and Building 6,00,000. Depreciation is provided at 10%. The value of land and Building will be____________

(a)

Rs.6,60,000

(b)

Rs.5,40,000

(c)

Rs. 60,000

(d)

Rs.3,30,000

Under the diminishing balance method of depreciation ____________

(a)

Both rate of depreciation and amount of depreciation are reduced every year

(b)

Only the amount of depreciation is reduced every year

(c)

Only the rate of depreciation is reduced every year

(d)

None of the above

If the sale price of an asset is less than, the book value of the asset, it denotes _______________

(a)

Loss

(b)

Capital Profit

(c)

Expenditure

(d)

Capital gain

The Accounting standards is applicable for depreciation is ____________

(a)

AS 10

(b)

AS 29

(c)

AS 3

(d)

AS 6

A fixed asset was bought for 75,000. Its accumulated depreciation is 71,000 and rate depreciation is 10%. What are the depreciation expenses for the current accounting period using reducing balance method?

(a)

Rs.600

(b)

Rs.2000

(c)

Rs.500

(d)

Rs.400

  Under which depreciation method the amount of depreciation expenses remains same throughout the useful life of a fixed asset__________.

(a)

Straight Line Method

(b)

Reducing Balance Method

(c)

Number of Units produced method

(d)

Machine hour method

A trader followed WDV method of depreciation; the book value of assets after 4 years is 24% of original cost. Find rate of depreciation__________.

(a)

24%

(b)

26%

(c)

32%

(d)

30%

For oil wells _____________method Of depreciation is to be followed

(a)

Exhaustion

(b)

Wear & Tear

(c)

Depletion

(d)

None of the above

Depreciation on fixed assets is__________expenditure.

(a)

Revenue Expenditure

(b)

Capital Expenditure

(c)

Deferred Revenue expenditure

(d)

None

___________ items are to be shown in the Balance sheet.

(a)

Capital

(b)

Expense

(c)

Revenue

(d)

Loss

____________ is recurring in nature.

(a)

Deferred revenue expenditure

(b)

Revenue expenditure

(c)

Capital expenditure

(d)

None of these

The loss which is not incurred in the normal course of business is ___________

(a)

Capital loss

(b)

Revenue loss

(c)

both 'a' and 'b'

(d)

None of these

Excess of revenue expenditure over revenue receipt is ____________

(a)

Revenue expenditure

(b)

Net profit

(c)

Net loss

(d)

Gross profit

Money spent Rs.10,000 as travelling expenses of the directors on trips abroad for purchase of Capital Asset is __________

(a)

Capital expenditure

(b)

Revenue expenditure

(c)

Prepaid revenue expenditure

(d)

Revenue receipt

Interest on Investments received from UTI is ____________

(a)

Capital receipt

(b)

Revenue receipt

(c)

Capital expenditures

(d)

Revenue expenditures

Premium on the issue of shares is ___________

(a)

Capital receipt

(b)

Revenue receipt

(c)

Capital expenditures

(d)

Revenue expenditures

Deferred revenue expenditure is to be written off ___________

(a)

In the year in which the expenses are incurred

(b)

In the year in which the benefit of expenses are exhausted

(c)

Within 3 to 5 years

(d)

Within 5 to 10 years

An asset worth Rs. 1,00,000 is sold for Rs. 75,000 the capital loss amounts to __________

(a)

Rs.1,75,000

(b)

Rs.1,00,000

(c)

Rs.75,000

(d)

Rs.25,000

___________ refers to buying and selling of goods with the intention of making profit.

(a)

Trading

(b)

Trial balance

(c)

Balance Sheet

(d)

Profit and Loss Account

_____________ refers to directly related cost.

(a)

Purchases

(b)

Sales

(c)

Cost of goods sold

(d)

Liabilities

____________ is a tax levied by the local authority when the purchased goods enter the municipal limits.

(a)

Wages

(b)

Dock charges

(c)

Octroi

(d)

Royalty

The Gross profit or Gross loss is transferred to ___________ account.

(a)

Trading

(b)

Profit and Loss

(c)

Balance Sheet

(d)

Trial Balance

______________ is a statement which gives the position of assets and Iiabilities on a particular date.

(a)

Financial

(b)

Balance Sheet

(c)

Trial Balance

(d)

None of these

____________ liabilities are not shown in the Balance sheet.

(a)

Long-term

(b)

Short-term

(c)

Contingent

(d)

None of these

Carriage outwards will be shown

(a)

In the trading account

(b)

In the profit and loss account

(c)

On the liabilities side

(d)

On the assets side

Wages is an example of ___________

(a)

Capital expenses

(b)

Indirect expenses

(c)

Direct expenses

(d)

Revenue expenses

The unsold goods in stock at the end of the accounting period Is termed as ______

(a)

Opening stock

(b)

Average stock

(c)

Closing stock

(d)

None of these

The decrease in value of fixed assets due to usage or passage of time is called ______

(a)

Depreciation

(b)

Expenses

(c)

Incomes

(d)

Miscellaneous

Provision for discount on debtor is made on the basis of past experience at an estimated rate on _____

(a)

Sundry creditors

(b)

Sundry debtors

(c)

Capital

(d)

Net Profit

Depreciation is deducted from concerned ______ in the Balance sheet.

(a)

Current asset

(b)

Fictitious asset

(c)

Fixed asset

(d)

None of these

The Profit and loss account shows ______

(a)

Financial position of the concern

(b)

Net profit or Net loss

(c)

Gross Profit or Gross Loss

(d)

Balance sheet

Interest on drawings is credited to ______ Account.

(a)

Trading

(b)

Profit and loss

(c)

Liabilities

(d)

Assets

_________contributed by proprietor is a liability to the business.

(a)

Drawings

(b)

Profit

(c)

Loss

(d)

Capital

The decrease in book value of fixed assets due to usage or passage of time is called_________.

(a)

Bad debts 

(b)

Depreciation

(c)

Closing stock

(d)

Capital

 Wages outstanding is_________.

(a)

an asset 

(b)

a liability

(c)

an income

(d)

an expense 

__________ is an identification mark.

(a)

Code

(b)

Report

(c)

Content

(d)

All of these

The most important element in computertsed Accounting system ____________

(a)

Hardware

(b)

Procedure

(c)

Software

(d)

People

Impact of computer is seriously felt in accounting more than any other department of the ___________

(a)

business

(b)

organisation

(c)

both

(d)

none of these

Computerised accounting system facilitates the management and other users to maintain accounts and prepare _____________

(a)

final accounts

(b)

profit and loss account

(c)

balance sheet

(d)

financial statements

The physical components of a computer constitute its _____________

(a)

Hardware

(b)

Software

(c)

Keyboard

(d)

Mouse

_____________ defines the working of a hardware component.

(a)

Hardware oriented procedure

(b)

Software oriented procedure

(c)

Internal procedure

(d)

None of these

___________ packages can be modified according to the need of the enterprise.

(a)

Tailor-made

(b)

Ready-made

(c)

Customised

(d)

None of these

A set of tools and programs to manage the overall working od a computer using a defined set of hardware component is called an ___________

(a)

Programming software 

(b)

Utility software

(c)

application software

(d)

Operating system

Tally package was developed by________

(a)

Tally solutions

(b)

Microsoft

(c)

Apple solutions

(d)

None of the above

Which of the following is not a hardware?

(a)

Printer

(b)

Scanner

(c)

Interpreter

(d)

All of the above

Suspense account is grouped under__________.

(a)

Assets

(b)

Liabilities

(c)

Income

(d)

Expenses