it means: Be ecase in asset “B. Increase in liability fi entry on the left hand side of an -D. Moderate increase in liability rawings account is related to: ‘A. Nominal account Personal account ‘C. Real account D. Company drawings account 3, Which of the following is related to nominal " account? “A. Bank account \8-Commission account Furniture account Interest received account Goiodwill account is related to: Nominal account B; Personal acc eal account. Tangible a repaid insurance is: Nominal accountsB-Personal act Real account —-D. Prepaid. ace: cording to the going concern con 1 iness entity is assumed to have: a long life B. a very short an indefinite life D. a medium lift Ontingent liability is shown in the ba 2 ne et because of; ~ A Convention of consistency a Convention of materiality h Convention of disclosure Snvention of adventure * nue is consid Bash lered as being earned when: sale) ceived B. production is done “'s effected D. purchase is done 9. Accounting does not record non-financial transactions because of: A. Entity concept B. Accrual: concept C. Measurement concept D. Double entry concept 10. According to which of the following concepts evel the owner of the business who provides capital, treated as a creditor of the business? A. Entity concept B. Cost concept C. Money measurement concept D. Convention of disclosure 11. In book-keeping posting means: A. to record the transactions from the journal to ledger B. to record the transactions in the journal C. to record the transactions in the subsidiary books * D. to record the transactions in the cash book 12, The basic rile of book-keeping, debit the receiver and credit the giver is applicable to: ~ A. nominal account B. real account C. personal account D. drawing account 13. Goods of the value of € 1500 taken by the proprietor for his personal use should be debited to: ‘A. drawing account B. sales account C. purchases account D. stock account 14, Goods destroyed by fite should be credited to: ‘A. purchases account . sales. account . loss of goods by fire account D. insurance account Por9¢Mgmt ADL15. The credit balance of bank account indicat A. amount payable by the bank B. amount payable to the bank C. cash at bank D. oan from bank 16. Which of the following accounts will invariably have a debit balance? A. Bank account B. Accounts receivable account C. Accounts payable account D. Loan account 17, Which of the following accounts will invariably have a credit balance? A. Discount account B. Account payable account C. Cash account D. Purchases account 18. Which of the followin; credit balance? A. Accounts payable account B. Salaries outstanding account . Reserve fund account D. Alll of the above accounts 8 accounts have only 19. Which of the following accounts may have a debit or credit balance? i A. Discount received account B. Sales account C. Trade expenses account D. Loan account 20. Which of the following books should be used to record purchase of furniture ‘on credit? A: Cash book B, Journal proper C. Purchases book D. Sales book 21. Which of the following accounts is increased by debit entries? A. Machinery account B, Purchases return account C. Discount received account D. Commission received account 22. The credit balance in the bank account an asset a liability an expense contingent liability por> utward book makes a. record of os A goals returned to the suppliers B, goods returned to customers C. goods returned t0 proprietor D. goods returned to neighbours 24, Cash book prepared on imprest system jg. ‘A. two column cash book B. cash book C. petty cash book D. purchase book 25. The statement sent along with purchase is: a A. credit note B. bills payable book C. debit note D. purchases return book : 26. A bank reconciliation statement is prepare, b: x customer of the bank B. bank C. Reserve Bank of India D. Either B or C 27. While preparing bank reconciliation statement, cheques paid into bank but not yet clesed A. added to the balance as per cash book to arrive at the balance’ as per pass book deducted to the balance as per cash book to arrive at the balance as per pass book C. divided to the balance as Per cash book to arrive at the balance as per pass book D. multiplied to the balance as per cash book to arrive at the balance as per pass book 28. Errors which affect one “A. errors of omission B. errors of principle C. errors of posting D. errors of commission 29. Errors of carry forward from one year to aoe year affect : a ‘A. personal account B. real account C. nominal account D. both personal and real account ACCOUNE CAN DE wenowhich of the following errors is an error of ? omission’ $00 was written in the purchase DA. Sale 0 journal Wages paid to Sohan have been debited to his account © €. The total of sales journal has not posted to the sales account b. The total of sales journal has posted to the sales account 3 ich of the following errors in an error of ived from Ganesh has been debited to his account Purchase of © 3000 has been entered in the sales journal . Repairs to machinery have been debited to machinery account “D. Repairs to scooter have been debited to repairs account , Eror of commission do not allow ' A. comrect totalling of the balance sheet B. correct totalling of the trial balance the trial balance to agree D. correct totalling of the day book ‘Assets are held for the purpose of .. "A eaming revenue . resale C. conversion into cash B. market price ~C. cost of market price whichever is lower . Liability C. Expense +; D. Income received in advance 6. Depreciation is | A fixed assets -B. outward charges -C current assets D. intangible assets provided on 37. Heavy advertising to launch a new product is Bee : ‘A. capital expenditure B. revenue expenditure C. deferred revenue expenditure D. other expenditure 38. Accounts receivable includes ... ‘A sundry debtors B. bill receivable CC. promissory note D. all of the above 39, Provision for bad debts is calculated on B. Sales D. Debtors enue expenditure is A Creditors C. Purchases 40. An example of rev ‘A. Purchase of land B. Salaries C. Lease D. Purchase of buildings 41. When a bill is drawn by A on in the books of A to .. A. Cash account B. B's account C. Bills Receivable account D. Bills Payable account 42, When a bill drawn’by A on B (and retained till the date of maturity is dishonoured on the due date), it is debited (in the books of A)to.. A. Bill Receivable Account B. B’s Account C. Bills Payable Account D. Cash Account 43. When a bill drawn by A and B endorsed to Cis dishonoured on the due date, it is credited in the books of A to .. wee ‘ A. Bank account B. Bills receivable account C. Bank for collection of bills account D. C’s account 44. When a bill is drawn by A on B and before the date of maturity, B becomes insolvent then in the books of A it is debited to B, it is debitedA. Bills receivable account B, Bank account C. B's account D. Bank for collection of bills 45, Bills are drawn by A. Creditors C. Agent 46. Noting charges account is debited by .. A. the presenter of bill B. the discounting banker C. the acceptor D. the endorser 47, While discounting the bill, debit should be given to. . A. bank account B. bill receivable account C. acceptor’s account D. cash account 48. Cancelling the original bill and drawing a fresh acceptance is known as A. Retiring under rebate B. Renewal C. Discounting D. Bill sent to bank for collection 49. At the time of endorsement of a bill, the drawer credits . A. the drawee B. endorse personal account C. bills receivable account D. bills for collection account 50, When a bill is discharged, the acceptor debits ‘A. Creditor’s account B. Cash account C. Bills payable account D. Bills receivable account 51. Base date is otherwise called a A. zero date B. leave date C. working days —D. grace days 52. Average due date can be called ‘A. mean due date , B. median due date C. mode due date D. zero date 53. Account current is a journal jg A. True B. False C. Partly true, Parl fg 54, Which is the accounting concept that. the practice of erediting closing seg trading account? (0 the ‘A. Going concem B. Cost C. Realization D. Matching 55. Assets in thie balance sheet are shown at less depreciation rather than their re cost because of the accounting Placement Convention A. going concern ~ . B. matching C. realization D. money measurement 56. According to money measurement coy which one of the following will be recorded in the books of accounts .. ‘A. excellent morale of workers B, quality control in the business C. managing ability of the marager D. cost of machinery 57, Contingent liability appears as a footnote it the balance sheet. This is in accordance wit the accounting principle of .. < A. Consistency B. Disclosure C. Materiality D. Conservatism 58, The policy to anticipate no profit and provi for all possible losses arises due to conventio of. : A. Consistency B, Disclosure C. Matching D. Conservatism 59. Revenue is generally recognised being eam! at the point of time when A. sale is effected B. cash is received C. production is completed D. goods are delivered Which one of the following arrangemet® Tepresents the order of liquidity? A. Cash, Bills Receivable, Stock, Debtos B. Cash, Bills Receivable, Debtors, St C. Cash, Stock, Bills Receivable, Deb! D. Cash, Debtors, Bills Receivable, Stooance sheet is prepared primarily with the Soe eaing eroup fa View of}, th Ovners B. Creditors Goverment. Management 2, Which one of the following is an example of 7 an intangible asset? A. Preliminary expenses B. Discount on issue of debentures C. Investments D. Copyrights 68 Both assets and owners equity would be increased by : A capital brought in B. purchase of an asset on credit C. payment of creditors D. proprietors drawings 64, If a companies tangible netw, amount, it indicates: A the probability of the company B. the liquidity of the company © the solvency of the company D. Both A and B §§. The excess of cure! liabilities is called . A Net tangible worth B. Networth © Gross working capital D. Net working capital 6. The discount coh k records A wade discount cash discount ~ quantity discount * Seasonal discount + Jour pro ‘orth is a positive nt assets over current imn of a triple column cash D. 2 business ‘expenses paid in cash vy, usting and rectification entries Rw ich, in the on ofthe following entry is not recorded “A Tesiduary journal? c jpening entry B, Closing entry Adjustment entry D. Credit sales 6! s When furniture is sold for cash, the entry should be made in .. A. sales book C. journal B. cash book D. petty cash book 70. Which one of the following is ‘an example of Personal account? A. Capital account B. Building account C. Cash account D. Investment account 71. The appropriate book to record credit purchase of machinery is . A. purchases book C. cash book B. journal D. petty cash book 72. Bills payable book is a : A. subsidiary book B. principal book C. ledger D. memorandum book 73. The balance of the petty cash book is A. an asset C. an income 74. Sales Alc Dr To Trac of... B. a liability D. an expenditure ding A/c is an example & losing entry B, adjusting entry G: opening entry —D. transaction entry 78. The balance of cash account indicates A. net income for the period B. net loss for the period C. net worth of the business D. net cash on hand 76. The process of transfervng the credit and debit items form a journal to their respective accounts, in the ledger is termed as , a A. Balancing B. Invoicing C. Double entry —D, Posting 77, Which account is generally used for “rectification of errors? A. Memorandum account B. Suspense account C. Rectification account D. Adjustment account 7 = Which one of the following errors is an error of principle? i A. Debiting repairs account instead of furniture account B, Sale of % 200 entered in the books as 2000C, D. 79. Which one of the following error will affect Cash sale of ¥ 500 wrongly entered in sales book Purchase transaction entered in purchases return book the agreement of the trial balance? A. Be Cc. D. A sale of € 20 to Ram entered in the sales book as = 200 : Purchase of 500 credited to Ram instead of Shyam Sale returns of = 1000 correctly entered in the sales returns book but posted to 0 the debit of Sundar Cash sale of furniture credited to sales account 80. Preparation’ of trial balance helps in the deduction of .. error of priaciple , . compensating errors errors of whole omission’ clerical errors 8714 24 34 44 54 64 74 18 28 338 48 58 68 78 10 20 30 40 50 60 70 80