Fundamentals of Accounting-Theory and Practices
MCQs
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September 2015
(1) IFRS stands for ..........
(A) Indian Financial Reporting Standards
(B) Indian Financial Reporting Structure
(C) International Financial Reporting Standards
(D) None of the above
(2) Rs. 10,000 spent on installation charges of machine is ............
(A) Debited to machine account
(B) Credited to machine account
(C) Debited to wages account
(D) Credited to wages account
(3) The same accounting policy and procedures should be followed every year is in accordance to ..............
(A) Convention of Consistency
(B) Periodically Concept
(C) Matching concept
(D) Going concern concept
(4) The cost of removing the stock of material from an old site to the new site is .................
(A) Capital Profit
(B) Capital expenditure
(C) Revenue loss
(D) Revenue expenditure
(5) The accounting treatment and presentation of transaction and events should be governed by their substance and financial reality and not merely with their ........... form.
(A) Prudence
(B) Legal
(C) Materiality
(D) Accounting Standards
(6) Irrecoverable amount from the customer is recorded in the journal as ...........
(A) Bad debts
(B) Rebate
(C) Provision for bad debts
(D) None of the above
(7) Outstanding rent is a type of ..........
(A) Nominal account
(B) Representative Personal A/c
(C) Real A/c
(D) None of the above
(8) The balance of machinery A/c. As on 1.4.14 was Rs. 2,00,000. The firm purchased a machine costing Rs. 5,00,000 on 1.10.14 and another machine costing Rs. 3,00,000 on 1.1.2015. The firm provides depreciation @ 10% p.a. under written down value method, the depreciation for the year ended on 31.3.15 will be ..........
(A) Rs. 53,000
(B) Rs. 1,00,000
(C) Rs. 52,500
(D) None of the above
(9) An account which the total is heavier on debit side is said to have a......
(A) Nil Balance
(B) Credit Balance
(C) Debit Balance
(D) None of the above
(10) In journal the transactions are recorded in ......
(A) An analytical order
(B) Chronological order
(C) Unsystematic manner
(D) None of the above
2014 September
(A) Assets = Capital + Liabilities
(B) Capital - Liabilities = Assets
(C) Liabilities + Assets = Capital
(D) None of the above
(2) Valuing closing stock at market price or cost price whichever is less, is based on Convention of ........
(A) Consistency
(B) Conservatism
(C) Materially
(D) None of the above
(3) Applying different methods of depreciation on an asset in different years is violation of ..........
(A) Convention of Consistency
(B) Convention of full disclosure
(C) Going concern concept
(D) None of the above
(4) Outstanding rent is a type of .........
(A) Nominal A/c
(B) Real A/c
(C) Representative Personal A/c
(D) None of the above
(5) External users of accounting information are .............
(A) Investors
(B) Supplies
(C) Government
(D) All of the above
(6) IFRS stands for ..........
(A) Indian Financial Reporting Standards
(B) Indian Financial Reporting Structure
(C) International Financial Reporting Standards
(D) None of the above
(7) Prime cost + Factory overheads is expressed as ............
(A) Total cost
(B) Cost of sales
(C) Gross works cost of production
(D) None of the above
(8) Accounting Standard Board (India) was constituted in the year .............
(A) 1987
(B) 1977
(C) 1967
(D) None of the above
(9) The Concept of separate legal entity is applicable to which of the following types of business ? ............
(A) Sole proprietorship
(B) Partnership
(C) Joint stock company
(D) All of the above
(10) The assets without physical substance are known as ............ assets.
(A) Tangible
(B) Intangible
(C) Immovable
(D) All of these
2013 September
(1) .............. Is not referred as one of books of original entry.
(A) Journal Proper
(B) Purchases Book
(C) Journal
(D) Ledger Book
(2) If sales price of fixed asset more than cost of the fixed asset sold, the difference is..................
(A) Revenue Profits
(B) Capital Loss
(C) Revenue Loss
(D) Capital Profits
(3) ................ Is not one of the Branches of Accounting.
(A) Book keeping
(B) Cost Accounting
(C) Financial Accounting
(D) Management Accounting
(4) On 31.3.2013, the Assets of Sahukar & Co Rs. 1,50,000 and Liabilities Rs. 40,000 Capital of the firm as on 31.3.2013 is Rs. ................
(A) Rs. 1,90,000
(B) Rs. 1,50,000
(C) Rs. 1,10,000
(D) Rs. 40,000
(5) ............... ensures the reliability of business transactions recorded in the books of accounts.
(A) Accounting Period Concept
(B) Objectivity Concept
(C) Money Measurement Concept
(D) Convention of Conservatism
(6) Cost of fixed asset becomes expenses over the periods of its use on the basis of
(A) Business Entity Concept
(B) Accounting Period Concept
(C) Money Measurement Concept
(D) Going Concern Concept
(7) As per the rules of Accounting Equation Approach, goods withdrew for own use by owner from business.
(A) Increase Assets and decrease capital (B) Decrease Assets and increase capital
(C) Decrease Assets and decrease capital
(D) Increase Assets and Increase capital
(8) In Accounting, heavy loss arising from the fire of the non insured assets is treated as
(A) Revenue Expenditure
(B) Capital Expenditure
(C) Revenue loss
(D) Deferred Revenue Expenditure
(9) International Accounting Standard Board constituted in the year
(A) 1977
(B) 2001
(C) 2011
(D) 1973
(10) Direct Materials+ Direct Labour + Direct Expenses + Factory Overheads is expressed as
(A) Prime Cost
(B) Net works Cost of Production
(C) Total Cost
(D) Gross Works Cost of Production
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