Fundamentals of Accounting - Theory and Practices
MCQs
For more Mcqs in this Subject click here:
https://paidforarticles.in/top-mcqs-fundamentals-of-accounting-theory-and-practices-6-583925
Accounting policies
(1) Accounting policies refer to specific accounting:
(A) Principles
(B) Methods of applying those principles
(C) Both (a) & (b)
(D) None of the above
(2) Accounting policies are based on various:
(A) Accounting concepts
(B) Accounting principles
(C) Accounting conventions
(D) All of these
(3) Selection of appropriate ____________ is an important policy decision which affects the measurement of performance, as well as the financial position of the business entity.
(A) Accounting policies
(B) Accounting principles
(C) Accounting conventions
(D) Accounting concepts
(4) A change in accounting policy is permissible:
(A) When it is required by some statue
(B) For compliance with an Accounting Standard
(C) When change would result in more appropriate presentation of financial statement
(D) All of these
(5) Which of these is an example of accounting policy?
(A) Consistency
(B) Accrual
(C) Going concern
(D) Depreciation
(6) Accounting policies
(A) Are same for all concerns
(B) Are laid down by law
(C) Change from concern to concern
(D) Are prescribed by AS-1
(7) In which of the following area may different accounting policies be adopted by different enterprises?
(A) Method of depreciation
(B) Valuation of inventory
(C) Treatment of goodwill
(D) All of these
(8) Following is an example of an accounting policy
(A) Realization
(B) Recognition of profit on long term contracts
(C) Accounting period
(D) Objectivity
(9) The following factor should be considered while selecting and applying accounting policies.
(A) Substance over form
(B) Going concern
(C) Growth of business
(D) Solvency
(10) Selection of an inappropriate accounting policy may lead to:
(A) Understatement or overstatement of financial position I performance
(B) Understatement of performance
(C) Overstatement of performance
(D) None of the above
(11) Selection of appropriate accounting policies is not based on:
(A) Amount involved
(B) Prudence
(C) Substance over form
(D) Materiality
(12) Which is not an example of accounting policy ?
(A) Treatment of retirement benefits
(B) Going concern
(C) Valuation of fixed assets
(D) Valuation of inventories
(13) Accounting principles and policies are to be standardized to achieve:
(A) Comparability
(B) Transparency
(C) Consistency
(D) All of these
(14) Accounting policy for inventories of X eta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value.
Which accounting principle in followed in adopting the above policy?
(A) Materiality
(B) Prudence
(C) Substance over form
(D) All of the above
(15) The areas wherein different accounting policies can be adopted are
(A) Providing depreciation
(B) Valuation of inventories
(C) Valuation of investments
(D) All of the above
Ledgers
(16) Capital account general has
(A) Debit
(B) Credit
(C) any of these
(D) None of these
(17) Which of these account has debit balance?
(A) Bank loan
(B) Reserve for doubtful debts
(C) Income received in advance
(D) Prepaid insurance premium
(18) At the end of the according of the ledger books are
(A) Not balanced and their balance is transferred to the profit and loss account
(B) Not balanced and also the balance is not transferred to the profit and loss account
(C) Balanced but not transferred to profit and loss account
(D) Balanced and the balance is transferred to the balance sheet
(19) The technique of finding the net balance of an account after considering the totals of both debits and credits appearing in the account is known as ............
(A) Purchase
(B) Posting
(C) Balancing of an account
(D) Arithmetically accuracy test
(20) Ledger book is popularly known as
(A) Secondary book of accounts
(B) Subsidiary book of accounts
(C) Principal book of accounts
(D) None of these
(21) Generally, a ledger is divided into ............
(A) Two parts
(B) Seven parts
(C) Four parts
(D) Three parts
(22) The main object of preparing a ledger is
(A) To ascertain the debtors and creditors of the business
(B) To ascertain the financial position of the business
(C) To know the net effect of various transactions affecting a particular account
(D) To ascertain the profit or loss of the business
(23) ln a ledger, ............ type of accounts are maintained.
(A) Only personal accounts are maintained
(B) Only real accounts are maintained
(C) Only nominal accounts are maintained
(D) All personal, real and nominal accounts are maintained
(24) Journal and ledger records transactions in
(A) A chronological order and analytical order respectively
(B) An analytical order and chronological order respectively
(C) A chronological order only
(D) An analytical order only
(25) The process of transferring the debit and credit items from a journal to their respective accounts in the ledger is termed as .............
(A) Posting
(B) Purchase
(C) Balancing of an account
(D) Arithmetic accuracy test
(26) In a ledger, there are ............. identical column(s) on debit side and credit side.
(A) One
(B) Two
(C) Three
(D) Four
(27) All ledger accounts except .............. are balanced.
(A) Personal accounts
(B) Real accounts
(C) Nominal accounts
(D) None of these
(28) The difference between the two sides of a ledger is known as...............
(A) Balancing figure
(B) Net profit
(C) Gross profit
(D) Residue
(29) Opening entries are those entries which are passed ..........
(A) At the end of the year
(B) At the beginning of the year
(C) For rectification of errors
(D) For suppressing profit
(30) Closing entries are those entries which are passed .................
(A) At the end of the year
(B) At the beginning of the year
(C) For rectification of errors
(D) For suppressing profit
(31) Each account is kept on a separate page in the ledger known as ...........
(A) Balance sheet
(B) Folio
(C) Ledger page number
(D) Voucher
(32) Which of the following is not a book of original entry?
(A) The journal
(B) The ledger
(C) The cash book
(D) The Bills Receivable book
(33) L.F. in the journal is filled at the time of .........
(A) Purchase
(B) Posting
(C) Balancing of an account
(D) Undertaking the arithmetic accuracy test
(34) Cash account has ................ Balance
(A) Debit
(B) Credit
(C) Any of these
(D) None of these
(35) Sales return account always shows a ............. Balance.
(A) Credit
(B) Debit
(C) Either (a) or (b)
(D) None of these
(36) Which of the following accounts may have a debit or a credit balance?
(A) Commission (received) account
(B) Partner's current account
(C) Purchase account
(D) None of these
Voucher
(37) Debit- Note are prepared for ........
(A) Purchase Return
(B) Payment of Exp.
(C) Sales Retain
(D) Receipt Income
(38) Credit Note are prepared for .........
(A) Purchase Return
(B) Payment of Exp.
(C) Sales Return
(D) Receipt Income
(39) Invoice which contain details of tax separately are known as .............
(A) Tax Invoice
(B) Retail Invoice
(C) Credit Note
(D) Debit Note
(40) When goods return to supplier ......... is to be prepared ............
(A) Debit Note
(B) Credit Note
(C) Purchase Note
(D) Sales Note
(41) When any payment made by cheque ............ voucher to be prepared.
(A) Cash Payment Voucher
(B) Cash Receipt Voucher
(C) Cheque Payment Voucher
(D) Cheque Receipt Voucher
(42) When goods return from customer .......... voucher is to be prepared.
(A) Debit Note
(B) Purchase Invoice
(C) Credit Note
(D) Sales Invoice
(43) When goods return by customer and cash paid for same ....... voucher is to be prepared.
(A) Debit Note
(B) Payment Voucher
(C) Credit Note
(D) Goods Inward Voucher
(44) Goods withdraw by owner for personal use ........ Voucher is to be prepared.
(A) Payment Voucher
(B) Sales Voucher
(C) Journal Voucher
(D) None of Above
(45) Goods / Assets briny by owner in the business .............Vcucher is to be prepered.
(A) Payment Voucher
(B) Sales Voucher
(C) Journal Voucher
(D) None of Above
(46) Purchase invoice is ............... Source of voucher
(A) Internal Source
(B) External Source
(C) Both A and B
(D) None of Above
(47) Sales Invoice is ......... Source of voucher.
(A) Internal Source
(B) External Source
(C) Both A and B
(D) None of Above
(48) How many parties in Voucher.
(A) Three
(B) Four
(C) Five
(D) Two
(49) The plllar of accountirg is ..........
(A) Journal
(B) Ledger
(C) Trail Balance
(D) Voucher
(50) Transactions are recorded in Books of Account on the basis of ..........
(A) Journal
(B) Ledger
(C) Trail Balance
(D) Voucher
(51) Cheque issue for Purchase of furniture ........... Voucher are available.
(A) Counter folio of cheque
(B) Purchase voucher
(C) Payment Voucher
(D) All of above
(52) When cash deposited in Bank _______ voucher available.
(A) Counter folio of cheque
(B) Pay - in - slip
(C) Payment Voucher
(D) Receipt Voucher
You must be logged in to post a comment.