Fundamentals of Accounting - Theory & Practices
MCQs - Accounting and introduction
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1. Pick the odd one out:
(a) Not free from bias
(b) Window dressing
(c) Systematic recording of transaction
(d) None of these
2. All of the following are functions of Accounting except:
(a) Decision making
(b) Measurement
(c) Forecasting
(d) Ledger posting
3. On January 1, Ram paid rent to ₹10,000. This can be classified as :
(a) An event
(b) A transaction
(c) A transaction as well as an event
(d) Neither a transaction nor an event
4. Definition of accounting was given by :
(a) AM
(b) AICPA
(c) ICAI
(d) APB
5. Users of accounting information include:
(a) Creditors
(b) Lenders
(c) Customers
(d) All of the above
6. Who is the founder of book-keeping?
(a) Luca Pacioli
(b) Adam Smith
(c) Kesal
(d) None of these
7. Window dressing in accounts means .
(a) presenting accounts in beautiful manner
(b) showing more losses to avoid income tax
(c) showing more profits to attract investment
(d) both (b) & (c)
8. ______ is called the language of business
(a) Accounting
(b) Book-keeping
(c) Accounts
(d) None of these
9. Financial statements are a part of _______
(a) book-keeping
(b) transactions
(c) accounting
(d) management accounting
10. Which if the following is not a subfield or accounting?
(a) Management accounting
(b) Book-keeping
(c) Costing accounting
(d) Financial accounting
11. Financial statements users include
(a) Share holder
(b) Government
(c) Venders
(d) All of these
12. Which of the following is not a function of accounting?
(a) Keeping systematic record
(b) Provides relevant information to the users
(c) Maximizing the results
(d) Meeting legal requirements
13. Accounting in modern age is regarded as
(a) The art of recording, classifying and summarizing the business transactions in monetary units
(b) The language of business
(c) The source of business information
(d) All the above
14. Negotiating With the seller is a
(a) Transaction
(b) Event
(c) Both event and transaction
(d) Neither event nor transaction
15. The basic objective of book-keeping is
(a) To maintain systematic records of financial transactions
(b) To ascertain financial performance
(c) To ascertain financial position
(d) All the above
16. Preparation of Journal & Ledger book is a part of ____
(a) Book Keeping
(b) Accounting
(c) Auditing
(d) Cost Accounting
17. Entity include _____
(a) Trader
(b) Firm
(c) Company
(d) All of Above
18. Unexpired Insurance is a __________
(a) Assets
(b) Liabilities
(c) Capital
(d) None of these
19. Fixed deposit with bank is _______
(a) Assets
(b) Liabilities
(c) Capital
(d) None of these
20. The problems related to price-rise are handled under
(a) Financial accounting
(b) Cost accounting
(c) Inflation accounting
(d) Management accounting
21. The main objectives of book -keeping are
(a) Complete recording of transactions
(b) Communication of information to the user
(c) Analysis and interpretation of data
(d) Both (a) and (b)
22. At the end of the financial year after sales of goods worth ₹2,00,000 there was a closing stock of ₹70,000. This is.
(a) A transaction
(b) An event
(c) Both event as well as transaction
(d) None of these
23. Financial statement are a part of
(a) Book-keeping
(b) Accounting
(c) Both (a) and (b)
(d) None of these
24. ____of American Institute of Certified Public Accountants enumerated function of accounting
(a) Accounting Standards Board
(b) Accounting Principles Board
(c) Accounting Concepts Board
(d) None of these
25. Management accounting is ______
(a) A clerical work
(b) Accounting for future
(c) Is an analysis of the past business activities
(d) Is a recording technique of the management related transactions
26 . .................. starts where book-keeping ends.
(a) Accounting
(b) Recording
(c) Classifying
(d) Communication
27. Internal users of accounting information include:
(a) Short-term creditors
(b) Customers .
(c) Long term lenders
(d) Shareholders
28. External users of accounting information include:
(a) Shareholders
(b) Customers
(c) Management
(d) None of these
29. Limitations of accounting are that it :
(a) Ignores qualitative elements
(b) Ignores price level changes .
(c) Involves subjectivity
(d) All of the above
30. ........... refers to a systematic knowledge of accounting concerned with the principles and techniques which are applied in accounting.
(a) Book-keeping
(b) Accounting
(c) Accountancy
(d) All the above
31. An economic event that involves transfer of money or money's worth is :
(a) Financial transaction
(b) Barter
(c) Settlement
(d) Receipt/payment
32. Financial position of the business is ascertained on the basis of
(a) Records prepared under book-keeping process
(b) Trial balance
(c) Accounting reports
(d) None of the above
33. Financial statements do not consider
(a) Assets expressed in monetary terms
(b) Liabilities expressed in monetary terms
(c) Only assets expressed in non-monetary terms
(d) Assets and liabilities expressed in non-monetary terms
34. On March 31,2011 after sale of goods worth ₹2,000, he is left with the closing inventory of ₹10,000. This is
(a) An event
(b) A transaction
(c) A transaction as well as an event
(d) Neither a transaction nor an event
35. Bank has passed bank Loan of ₹2,00,000 is a ______
(a) Transaction
(b) Event
(c) Both A and B
(d) None of Above
36. Mr. X clerk is terminated due fraud by someone of ₹1,500 is a _______
(a) Transaction
(b) Event
(c) Both A and B
(d) None of Above
37. Accounting is of Business and accounting standard is ________ of Accounting.
(a) Language - Grammar
(b) Grammar -language
(c) System and Method
(d) Concept - Convention
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