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Fa-I Question Bank

The document is a question bank for the first internal examination at St. Mary's Centenary Degree College, covering multiple choice questions, fill-in-the-blanks, and short answer questions related to accounting principles. It includes topics such as trading accounts, capital, closing stock, and the double entry system. Additionally, it provides definitions and explanations of various accounting concepts and practices.

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8 views3 pages

Fa-I Question Bank

The document is a question bank for the first internal examination at St. Mary's Centenary Degree College, covering multiple choice questions, fill-in-the-blanks, and short answer questions related to accounting principles. It includes topics such as trading accounts, capital, closing stock, and the double entry system. Additionally, it provides definitions and explanations of various accounting concepts and practices.

Uploaded by

omermd2021
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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ST MARY’S CENTENARY DRGREE COLLEDE

F A -I FIRST INTERNAL QUESTION BANK-2021

I. Multiple Choice Questions

1. Trading account is prepaid to find out [ C ]

A. Total Assets B.Net profit C. Gross profit D. Cost of goods sold

2.Capital is [ A]
A. Amount invested in Business B. Loan taken for carrying on business
C. Assets purchased for business D. None of the above
3. Closing Stock is valued at [ D ]
A. Cost Price B. Market Price C. Replacement Price D. Cost or Market price whichever is less
4.Outstanding salaries is [ A ]
A.Representive Personal Account B. Real Account
C. Nominal Account D. None of the above
5.For cash withdrawn for personal use from Bank Debit is given to
[ C
]
A.Cash Account B. General Expenses Account C. Drawings D. Bank Account

6.If a trial balance totals do not agree, the difference must be entered in [ D ]
A) The Profit and Loss Account B) A Nominal Account C) The Capital Account D) A Suspense Account
7.Subsidiary books are called [ B ]
A. Ledger B. Books of original Entry C. Books of secondary entry D. Financial Statement
8.Net profit is computed in the [ A ]
A) Profit and loss account B) Balance sheet C) Trial balance D) Trading account
9. What is used in preparing trial balance? [ C ]
A) Specialised journals B) Balance Sheet C) Ledger Accounts D) General Journal
10. Three coloumn cash book records [ C ]

A. Cash and Credit transactions B. Cash and Discount Transactions

C. Cash Bank and Discount transactions D. None of the Above

11.Sales on credit is recorded in which of the following ledger [ B ]

A. Purchase journal B. Sales journal C. Purchase return journal D. Sales return journal

12 Second hand machine purchased from Sharma &co on credit for business purpose is recorded [ A]

A. Journal proper B. Purchases Book C. Cash Book D. Sale Book

13. Good will is [ D ]


A. Current Asset B. Tangible Asset C. An Investment D. Intangible Asset
14. If sales are Rs 5,00,000 Cost of Goods Sold Rs 4,10,000 and Operating expenses Rs 70,000
The Gross Profit is [ A ]
A. 20,000 B. 90,000 C. 3,40,000 D. 60,00015Trading Account
15.Sales and purchase journal does not record [ D]
A. Credit sales B.Credit purchases C. Credit sales&Credit purchases D.Cash sales& purchases

II. Fill in the Blanks

1. If the goods received are defective or damaged or not up to the sample shown, the trader will return

such goods to the supplier. These returns are called purchase returns

2. Sometimes interest is provided on the capital invested by the proprietor in the business. It is treated as

business expense.

3. Purchases book records only credit purchase of the goods dealt by us.

4. All small payments are recorded in Petty cash book

5. The fundamental principle of double entry system is that for every debit there is corresponding credit.

6. Opening bank overdraft is entered in the cash book on the cedit side of cash book.

7. Important function of accounting are to ascertain profit or loss during a specified period.

8. A debit note is prepared when goods are returned by the purchaser due to some reason .

9. The term conventions denotes customs or traditions which guide the accountant while preparing the

accounting statements

10. Business entity concept implies that a business unit is separate and distinct from the persons who

supply capital to it.

11. Tangible assets have physical identity and include items which can be seen and touched

12. Contra entry is made in the cash book when both cash and bank balances are effected.

13. The income which has been earned but not received during the accounting year is called Accured

income

14. In the form of Equation GROSS PROFIT =Sales -Cost of goods sold

15. An account recording transactions with an individual human being is known as Personal Account

III.Short Answers
1. Definition of Accounting

2. Explain any two advantages of Double Entry system

3. Write about Debit Note

4. Write Examples of Fixed Assets


5. Prepare Balance sheet
Creditors 1,00,000 Debtors 2,00,000 Closing Stock 50,000 capital 5,00,000 Motor Van 50,000
Machinery 5,00,000 Goodwill 1,00,000 Loan 3,00,000

6. Explain about the cash Book


7. Explain any two Concepts of Accounting
8. Types of cash book

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