Teaching Accountancy Introduction to Accounting Question Bank

done MCQ - Accounting Total Questions - 107

• question_answer1)
  First of all, double entry system was introduced in
  A)
   America                                    done clear
  B)
   Japan done clear
  C)
                      India                                        done clear
  D)
   Italy done clear
  View Solution play_arrow

• question_answer2)
  The policy of "Anticipate no profit and provide for all possible losses" arises due to convention of
  A)
   Disclose                                    done clear
  B)
   materiality done clear
  C)
                      Conservatism                            done clear
  D)
   consistency done clear
  View Solution play_arrow

• question_answer3)
  Which of following is the accounting equation?
  A)
   Capital = Assets + Liabilities done clear
  B)
                      Capital = Liabilities - Assets done clear
  C)
                      Assets = Liabilities - Capital done clear
  D)
                      Liabilities = Assets – Capital done clear
  View Solution play_arrow

• question_answer4)
  Which of the following Accounting Standards is related to fixed assets?
  A)
   AS7                                         done clear
  B)
   AS 8 done clear
  C)
                      AS 9 done clear
  D)
   AS 10 done clear
  View Solution play_arrow

• question_answer5)
  AS 26 is related to
  A)
   Intangible assets                         done clear
  B)
   investments done clear
  C)
                      Depreciation                              done clear
  D)
   net profit done clear
  View Solution play_arrow

• question_answer6)
  The system of recording transactions based on dual aspect concept is called
  A)
   Double account system done clear
  B)
                      Single account system done clear
  C)
                      Double entry system done clear
  D)
                      Single entry system done clear
  View Solution play_arrow

• question_answer7)
  The following accounting standard is applied for providing depreciation.
  A)
   AS 3 done clear
  B)
   AS 4 done clear
  C)
                      AS 5 done clear
  D)
                      AS 6 done clear
  View Solution play_arrow

• question_answer8)
  Which one of the following is not a part of accounting process?
  A)
   Recording                                  done clear
  B)
   Classification done clear
  C)
                      Distribution                               done clear
  D)
   Interpretation done clear
  View Solution play_arrow

• question_answer9)
  This is the most scientific, complete and accurate system of accounting
  A)
   Single Entry System                   done clear
  B)
                      Double Entry System done clear
  C)
                      Hindustani System done clear
  D)
                      Cash System done clear
  View Solution play_arrow

• question_answer10)
  Which one of the following is not a, stage of double entry system?
  A)
   Books of Original Entry   done clear
  B)
                      Posting done clear
  C)
                      Trial Balance done clear
  D)
                      Suspense Account done clear
  View Solution play_arrow

• question_answer11)
  Business transactions are recorded first of all in the
  A)
   Journal                                     done clear
  B)
   Ledger done clear
  C)
                      Trial Balance                             done clear
  D)
   Final Accounts done clear
  View Solution play_arrow

• question_answer12)
  Which one of the following is not an objective of accounting?
  A)
   To keep systematic records done clear
  B)
                      To make profitable investment done clear
  C)
                      To ascertain profit or loss done clear
  D)
                      To know financial position done clear
  View Solution play_arrow

• question_answer13)
  The first stage of double entry system is
  A)
   Original records                          done clear
  B)
   posting done clear
  C)
                      Classification                             done clear
  D)
   trial Balance done clear
  View Solution play_arrow

• question_answer14)
  Book keeping is a system of recording these transaction of business
  A)
   Economic                                 done clear
  B)
   business done clear
  C)
                      Monetary                                  done clear
  D)
   financial done clear
  View Solution play_arrow

• question_answer15)
  Revenue is considered as being earned when
  A)
   Cash is received                         done clear
  B)
   sale is effected done clear
  C)
                      Production is done                     done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer16)
  Accounting standards board was set up in India in the year
  A)
   1964                                        done clear
  B)
   1975 done clear
  C)
                      1977                                        done clear
  D)
   1980 done clear
  View Solution play_arrow

• question_answer17)
  The job of an accountant is ...........in nature.
  A)
   Analytical                                 done clear
  B)
   clerical done clear
  C)
                      Routine                                     done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer18)
  Which of the following statements is correct?
  A)
   Accounting involves only the recording of business transactions done clear
  B)
                      Amount owed to outsiders (other than proprietor) is called capital done clear
  C)
                      Debit means decrease in assets done clear
  D)
                      Accounting is the language of business done clear
  View Solution play_arrow

• question_answer19)
  Which accounting concept is also known as periodicity assumption?
  A)
   Money measurement concept done clear
  B)
                      Going concern concept done clear
  C)
                      Accounting period concept done clear
  D)
                      Accounting entity concept done clear
  View Solution play_arrow

• question_answer20)
  Revenue is generally recognised at the point of sale. Which principle is applied herein?
  A)
   Consistency done clear
  B)
                      Cost principle done clear
  C)
                      Revenue recognition done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer21)
  The assumption that a business enterprise will not be sold or liquidated in the near future is known as
  A)
   Monetary unit                            done clear
  B)
   going concern done clear
  C)
                      Conservatism                            done clear
  D)
   periodicity done clear
  View Solution play_arrow

• question_answer22)
  Companies must prepare financial statements atleast yearly due to the assumption of
  A)
   Periodicity                                 done clear
  B)
   cost-benefit done clear
  C)
                      Conservatism                            done clear
  D)
   matching done clear
  View Solution play_arrow

• question_answer23)
  'Following the WDV method of depreciating a particular asset year after year'. State the name of the relevant accounting principle applied herein.
  A)
   Conservatism principle done clear
  B)
                      Materiality principle done clear
  C)
                      Full disclosure principle done clear
  D)
                      Consistency principle done clear
  View Solution play_arrow

• question_answer24)
  The primary qualities that make accounting information useful for decision-making are
  A)
   Comparability and consistency done clear
  B)
                      Materiality and. timeliness done clear
  C)
                      Relevance and reliability done clear
  D)
   Reliability and comparability done clear
  View Solution play_arrow

• question_answer25)
  According to a going concern concept, a business is viewed as having
  A)
   a limited life                              done clear
  B)
   an indefinite life done clear
  C)
                      a very long life                           done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer26)
  A business transaction affects
  A)
   At least one account done clear
  B)
                      At least two accounts done clear
  C)
                      Maximum of two accounts done clear
  D)
                      Maximum of three accounts done clear
  View Solution play_arrow

• question_answer27)
  The branch of accounting is
  A)
   Management accounting done clear
  B)
                      Cost accounting done clear
  C)
                      Financial accounting done clear
  D)
                      All of the above done clear
  View Solution play_arrow

• question_answer28)
  Which of the following branch of accounting is concerned with record keeping directed towards the preparation of trial balance, profit and loss account, balance sheet?
  A)
   Management Accounting done clear
  B)
                      Cost Accounting done clear
  C)
                      Financial Accounting done clear
  D)
                      All of the above done clear
  View Solution play_arrow

• question_answer29)
  Which branch of accounting aims to ascertain the cost of a product and to help the management in the control of cost?
  A)
   Management Accounting done clear
  B)
                      Financial Accounting done clear
  C)
                      Cost Accounting done clear
  D)
                      None of the above done clear
  View Solution play_arrow

• question_answer30)
  Accrual system of accounting is also known as
  A)
   Mercantile system of accounting done clear
  B)
                      Ordinary system of accounting done clear
  C)
                      Both (a) and (b) done clear
  D)
                      None of the above done clear
  View Solution play_arrow

• question_answer31)
  The accounting principles can be classified into
  A)
   Accounting concepts done clear
  B)
                      Accounting conventions done clear
  C)
                      Both (a) and (b) done clear
  D)
                      None of the above done clear
  View Solution play_arrow

• question_answer32)
  The common denominator chosen in accounting is
  A)
   Monetary unit done clear
  B)
                      Revenue matching done clear
  C)
                      Mercantile done clear
  D)
                      None of the above done clear
  View Solution play_arrow

• question_answer33)
  Dual aspect concept is based on
  A)
   Single entry book keeping done clear
  B)
                      Triple entry system done clear
  C)
                      Double entry book keeping done clear
  D)
                      None of the above done clear
  View Solution play_arrow

• question_answer34)
  The term 'matching' means
  A)
   Appropriate association of related revenues and expenses done clear
  B)
                      Appropriate association of relation losses and gains done clear
  C)
                      Both (a) and (b) done clear
  D)
                      None of the above done clear
  View Solution play_arrow

• question_answer35)
  Which convention implies that the accounting practices should remain the same from year-to-year?
  A)
   Disclosure                                 done clear
  B)
   Consistency done clear
  C)
                      Materiality                                done clear
  D)
   Conservatism done clear
  View Solution play_arrow

• question_answer36)
  'Making provisions for bad debts in respect of doubtful debts' is an example of which accounting convention?
  A)
   Disclosure                                 done clear
  B)
   Consistency done clear
  C)
                      Materially                                 done clear
  D)
   Conservatism done clear
  View Solution play_arrow

• question_answer37)
  Book-keeping is mainly concerned with
  A)
   Designing for systems of recording, classifying and summarizing recorded data done clear
  B)
                      Recording financial data relating to business operations done clear
  C)
                      Interpreting data for internal and external users done clear
  D)
                      All of the above done clear
  View Solution play_arrow

• question_answer38)
  The basic function of financial accounting is to
  A)
   Record all business transactions done clear
  B)
                      Interpret financial data done clear
  C)
                      Assist the management in performing functions effectively done clear
  D)
                      None of the above done clear
  View Solution play_arrow

• question_answer39)
  Which of the following is not an internal user of financial statements?
  A)
   Lenders                                    done clear
  B)
   Managers done clear
  C)
                      Board of Directors                      done clear
  D)
   Employees done clear
  View Solution play_arrow

• question_answer40)
  Which of the following will not be recorded in the books of accounts?
  A)
   Paid rent for office premises ` 10000 done clear
  B)
                      Paid commission for purchase of raw material ` 200 done clear
  C)
                      Purchased goods on credit ` 15000 for resale done clear
  D)
                      Resignation of manager Mr. Mohan done clear
  View Solution play_arrow

• question_answer41)
  The main objective (s) of book-keeping is/are
  A)
   Complete recording of transactions done clear
  B)
                      Ascertainment of financial effect on the business done clear
  C)
                      Analysis and interpretation of data done clear
  D)
                      Both (a) and (b) done clear
  View Solution play_arrow

• question_answer42)
  Financial statements are a part of
  A)
   book-keeping                             done clear
  B)
   accounting done clear
  C)
                      Both (a) and (b) done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer43)
  The direct advantages of accounting do not include
  A)
   Preparation of financial statements done clear
  B)
                      Ascertainment of profit or loss done clear
  C)
                      Competitive advantage done clear
  D)
                      Information to interested groups done clear
  View Solution play_arrow

• question_answer44)
  Contingent liabilities are shown in footnote of balance sheet as per which concept?
  A)
   Disclosure                                 done clear
  B)
   Dual aspect done clear
  C)
                      Realisation                                done clear
  D)
   Materiality done clear
  View Solution play_arrow

• question_answer45)
  Two primary qualitative characteristics of financial statements are
  A)
   Materiality and reliability done clear
  B)
                      Understandability and materiality done clear
  C)
                      Relevance and reliability done clear
  D)
                      Relevance and understandability done clear
  View Solution play_arrow

• question_answer46)
  How many accounting standards in India are issued by ICAI?
  A)
   30                                            done clear
  B)
   31  done clear
  C)
                      32                                            done clear
  D)
   29 done clear
  View Solution play_arrow

• question_answer47)
  Accounting standards in India are issued by
  A)
   Reserve Bank of India done clear
  B)
                      Central Government done clear
  C)
                      State Government done clear
  D)
                      Institute of Chartered Accountants of India done clear
  View Solution play_arrow

• question_answer48)
  The purpose of accounting standard is to
  A)
   Harmonise accounting policies done clear
  B)
                      Eliminate the non-comparability of financial statements done clear
  C)
                      Improve reliability of financial statements done clear
  D)
                      All of the above done clear
  View Solution play_arrow

• question_answer49)
  AS 8 on accounting for research and development
  A)
   is applicable only to listed companies done clear
  B)
                      is replaced by AS 26 done clear
  C)
                      is mandatory for research institutions done clear
  D)
                      is still in use done clear
  View Solution play_arrow

• question_answer50)
  The accounting standards are mandatory for
  A)
   Partnership concerns done clear
  B)
                      Charitable organisations  done clear
  C)
                      Companies done clear
  D)
                      Sole proprietorship done clear
  View Solution play_arrow

• question_answer51)
  AS 2 is on
  A)
   Revenue recognition done clear
  B)
                      Disclosure of accounting policies done clear
  C)
                      Valuation of inventories done clear
  D)
                      Depreciation accounting done clear
  View Solution play_arrow

• question_answer52)
  Accounting standard for fixed assets is
  A)
   AS10                                       done clear
  B)
   AS 11 done clear
  C)
                      AS 12                                      done clear
  D)
   AS 22 done clear
  View Solution play_arrow

• question_answer53)
  Accounting standards .......... the statue.
  A)
   Can over-ride                            done clear
  B)
   may over-ride done clear
  C)
                      Cannot over-ride                        done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer54)
  IASB stands for
  A)
   International Accounting Standards Board done clear
  B)
                      Indian Accounting Standards Boards done clear
  C)
                      International Accounting Standards Bulletin done clear
  D)
                      Indian Accounting Standards Bulletin    done clear
  View Solution play_arrow

• question_answer55)
  Which of the following is an example of an accounting policy?
  A)
   Valuation of investments done clear
  B)
                      Realisation done clear
  C)
                      Materiality done clear
  D)
                      Dual aspect done clear
  View Solution play_arrow

• question_answer56)
  In Accounting Standard 1, fundamental accounting assumptions should
  A)
   Be disclosed, if not followed done clear
  B)
                      Be disclosed in notes to accounts done clear
  C)
                      Always be disclosed done clear
  D)
                      be disclosed in auditor’s report done clear
  View Solution play_arrow

• question_answer57)
  AS 1 disclosure should form a part of
  A)
   The auditor’s report done clear
  B)
                      The director’s report done clear
  C)
                      The final accounts done clear
  D)
                      The books of accounts done clear
  View Solution play_arrow

• question_answer58)
  A change in accounting policy is justified to
  A)
   Comply with law done clear
  B)
                      Comply with accounting standard done clear
  C)
                      Ensure more appropriate presentation of financial statements done clear
  D)
                      All of the above done clear
  View Solution play_arrow

• question_answer59)
  The determination of the amount of provision of bad debts is an accounting
  A)
   Estimate                                   done clear
  B)
   parameter done clear
  C)
                      Policy                                       done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer60)
  Fundamental accounting assumptions are
  A)
   Going concern, conservatism, accrual done clear
  B)
                      Going concern, matching, consistency done clear
  C)
                      Going concern, consistency, accrual done clear
  D)
                      Going concern, entity, periodicity done clear
  View Solution play_arrow

• question_answer61)
  What is the objective of conservatism?
  A)
   Consider all losses done clear
  B)
                      Consider all incomes and losses done clear
  C)
                      Anticipate losses but not profits done clear
  D)
                      None of the above done clear
  View Solution play_arrow

• question_answer62)
  In the accounting period, according to which concept, cost incurred to acquire an asset is shown in the balance sheet?
  A)
   Cost concept done clear
  B)
   Business concept done clear
  C)
                      Realisation concept done clear
  D)
                      Accounting period concept done clear
  View Solution play_arrow

• question_answer63)
  Outstanding expenses are included in the profit and loss account at the end of the year according to which concept?
  A)
   Matching                                  done clear
  B)
   Accrual done clear
  C)
                      Going concern                           done clear
  D)
   Full disclosure done clear
  View Solution play_arrow

• question_answer64)
  According to the prudence concept, closing stock shall be valued at cost or ......... whichever is less.
  A)
   Net realisable value                    done clear
  B)
   market price done clear
  C)
                      Accounting price                        done clear
  D)
   standard price done clear
  View Solution play_arrow

• question_answer65)
  Provision for bad debts is made due to the principle of
  A)
   Conservatism                            done clear
  B)
   materiality done clear
  C)
                      Consistency                               done clear
  D)
   full disclosure done clear
  View Solution play_arrow

• question_answer66)
  Advance received from customers is not taken as sale, is based on
  A)
   Money measurement concept done clear
  B)
                      Conservatism concept done clear
  C)
                      Accrual concept done clear
  D)
                      Consistency concept done clear
  View Solution play_arrow

• question_answer67)
  According to which concept, income tax paid by proprietor is debited to drawings account?
  A)
   Conservatism                            done clear
  B)
   Cost done clear
  C)
                      Going concern                           done clear
  D)
   Entity concept done clear
  View Solution play_arrow

• question_answer68)
  The concept of conservatism when applied to the balance sheet, results in
  A)
   Overstatement of capital done clear
  B)
                      Overstatement of assets done clear
  C)
                      Understatement of capital done clear
  D)
                      Understatement of assets done clear
  View Solution play_arrow

• question_answer69)
  As per accrual concept, which of the following is not true?
  A)
   Revenue - Profit = Expenses done clear
  B)
                      Collection from customers - Expenses = Profit done clear
  C)
                      Revenue = Profit + Expenses done clear
  D)
                      None of the above done clear
  View Solution play_arrow

• question_answer70)
  Generally, we ignore paise and show the round figures in financial statements. This is in line with
  A)
   Consistency concept done clear
  B)
                      Materiality concept done clear
  C)
                      Conservatism concept done clear
  D)
                      Realisation concept done clear
  View Solution play_arrow

• question_answer71)
  The underlying accounting concept which necessitates amortisation of intangible assets is/are
  A)
   Realisation concept                    done clear
  B)
   matching concept done clear
  C)
                      Cost concept                             done clear
  D)
   Both ‘b’ and ‘c’ done clear
  View Solution play_arrow

• question_answer72)
  Window dressing of accounts means
  A)
   Presenting accounts in beautiful manner done clear
  B)
                      Showing more losses to avoid income tax done clear
  C)
                      Showing more profits to attract investment done clear
  D)
                      All of the above done clear
  View Solution play_arrow

• question_answer73)
  Select the odd one out in relation to users of accounting information. 
  A)
   Debtors                                     done clear
  B)
   officers     done clear
  C)
                      Managers                                  done clear
  D)
   board of directors      done clear
  View Solution play_arrow

• question_answer74)
      According to AS-6 'Depreciation Accounting', issued by the ICAI, change in method is permitted.   
  A)
   Prospectively                             done clear
  B)
   retrospectively done clear
  C)
                      Negatively                                 done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer75)
  If accounting information is based on facts and it is verifiable by documents it has the quality of
  A)
   Relevance                                 done clear
  B)
   understandability done clear
  C)
                      Reliability                                  done clear
  D)
   comparability done clear
  View Solution play_arrow

• question_answer76)
  Everything a firm owns, it also owes out to somebody. This co-incidence is explained by the————— concept.
  A)
                                   Dual aspect                               done clear
  B)
   prudence done clear
  C)
                      Money measurement                  done clear
  D)
   revenue recognition done clear
  View Solution play_arrow

• question_answer77)
  Which of the following is not the limitation of accounting?
  A)
   Based on accounting conventions done clear
  B)
                      Evidence in legal matters done clear
  C)
                      Incomplete information done clear
  D)
                      Omission of qualitative information done clear
  View Solution play_arrow

• question_answer78)
  How many accounting standards have been issued by ICAI?
  A)
   12                                            done clear
  B)
   20 done clear
  C)
                      22                                            done clear
  D)
   32 done clear
  View Solution play_arrow

• question_answer79)

  Arrange the following is chronological order about the accounting transactions and events are recorded in the books.

  I. Ledger

  II. Trial Balance

  III. Journal

  IV. Subsidiary Books

  Codes
  A)
                                   III, IV, I, II                                done clear
  B)
   III, I, IV, II done clear
  C)
                      IV, III, II, I                                done clear
  D)
   III, I, II, IV done clear
  View Solution play_arrow

• question_answer80)
  Which of the following practices is not in consonance with the convention of conservatism?
  A)
   Creating provision for bad debts done clear
  B)
                      Creating provision for discount on creditors      done clear
  C)
                      Creating provision for discount on debtors done clear
  D)
                      Creating provision for tax done clear
  View Solution play_arrow

• question_answer81)
  Which of the following is not the conventions under accounting?
  A)
   Materiality                                done clear
  B)
   Consistency done clear
  C)
                      Prodence                                  done clear
  D)
   Objectivity done clear
  View Solution play_arrow

• question_answer82)
  Which of the following is the characteristic of accounting principle?
  A)
   Objectivity                                done clear
  B)
   Value neutrality done clear
  C)
                      Consistency                               done clear
  D)
   Hypothesis done clear
  View Solution play_arrow

• question_answer83)
  Match the following

  List I		List II
  A.	Income and financial position assessed	1.	Consistency concept
  B.	Anticipate no profit and provide for all possible losses	2.	Going concern concept
  C.	Assets are depreciated on the basis of expected life rather than on the basis of market value	3.	Conservatism concept
  D.	The comparison of one accounting period with that in the past is possible	4.	Matching concept

  Codes
  A)
                                   A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1    done clear
  B)
                      A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 done clear
  C)
                      A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 done clear
  D)
                      A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 done clear
  View Solution play_arrow

• question_answer84)
  The basic concept related to profit and loss account is/are
  A)
   Realisation concept                    done clear
  B)
   matching concept done clear
  C)
                      cost concept                              done clear
  D)
   Both (a) and (b) done clear
  View Solution play_arrow

• question_answer85)
  Which of the following statements is correct?
  A)
   Accounting principles represent laws fixed by the respective governments done clear
  B)
                      Accounting principles represent laws fixed by accounting expert done clear
  C)
                      Accounting principles represent inviolable laws fixed by a legal board done clear
  D)
                      Accounting principles represent a consensuses at a particular time to the recording of accounting transactions done clear
  View Solution play_arrow

• question_answer86)
  ……. covers procedural aspects of accounting work and includes record keeping function.
  A)
   Accounting                                done clear
  B)
   Book-keeping done clear
  C)
                      Posting                                     done clear
  D)
   Journalising done clear
  View Solution play_arrow

• question_answer87)

  Consider the following statements

  I. The entity concept of accounting is not applicable to sole trading concerns and partnership concerns.

  II. Assets are to be shown in the balance sheet at their replacement cost on liquidation.

  III. Money measurement concept takes into account changes in the value of monetary unit.

  IV. When a creditor is paid, this result in decrease of one asset and a corresponding increase in other asset.

  Which of the statements given above are Correct?

  A)
   I and II                                     done clear
  B)
   II and III done clear
  C)
                      III and IV                                  done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer88)
  As per Revenue Recognition Concept, revenue is deemed to be realised
  A)
   When purchase order is received from the purchaser done clear
  B)
                      When goods are delivered to the purchaser done clear
  C)
                      When the title of the goods has been transferred to the purchaser done clear
  D)
                      When cash is received from the purchaser done clear
  View Solution play_arrow

• question_answer89)
  Accrual concept relates to the determination of
  A)
   Expenses and losses done clear
  B)
                      Incomes and gains done clear
  C)
                      Expenses and incomes done clear
  D)
                      Losses done clear
  View Solution play_arrow

• question_answer90)
  Accounting standards can override statute.
  A)
   True                                                                 done clear
  B)
                      False done clear
  C)
                      Incomplete statement done clear
  D)
                      None of the above done clear
  View Solution play_arrow

• question_answer91)

  Which of the following statements is/are correct?

  I. Balance sheet is the best tools to show the financial health of a business.

  II. Profit and loss accounts considered as the tool to measure net worth of business.

  Select the correct answer using the codes given below.

  A)
   Only I                                      done clear
  B)
   Only II done clear
  C)
                      Both I and II                             done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer92)
  Which of the following statements is/are correct?
  A)
   Dual aspect concept assumes an indefinite life of the entity done clear
  B)
                      In accounting, accrual basis is used for recording of transactions done clear
  C)
                      Both (a) and (b) done clear
  D)
                      None of the above done clear
  View Solution play_arrow

• question_answer93)
  Which of the following is not an accounting concept?
  A)
   Matching Concepts                     done clear
  B)
                      Dual Aspect Concepts done clear
  C)
                      True and Fair Concepts done clear
  D)
                      Going Concern Concepts done clear
  View Solution play_arrow

• question_answer94)
  Accounting concepts are based on
  A)
   Certain assumptions done clear
  B)
                      Certain facts and figures done clear
  C)
                      Certain accounting records done clear
  D)
                      Government guidelines done clear
  View Solution play_arrow

• question_answer95)

  Which of the following statements is/are correct regarding the accrual basis of accounting?

  I. The method of accounting take in the real and gross value of revenue.

  II. It show dismal profit and loss of company.

  Select the correct answers using the codes given below.

  A)
   Only I                                      done clear
  B)
   Only II done clear
  C)
                      I and II                                     done clear
  D)
   Neither I nor II done clear
  View Solution play_arrow

• question_answer96)

  Which of the following statements is/are correct?

  I. Cost concept is based on historical cost.

  II. Cost concept is highly objective in nature.

  Select the correct answer using the codes given below.

  A)
   Only I                                      done clear
  B)
   Only II done clear
  C)
                      Both I and II                             done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer97)

  Which of the following statements is/are correct regarding the nature of accounting standard?

  I. Accounting standard are in consonance with the current law of the land.

  II. It facilitate reliability and comparability to financial statements.

  Select the correct answer using the codes given below.

  A)
   Only I                                      done clear
  B)
   only II done clear
  C)
                      Both I and II                             done clear
  D)
   Neither I nor II done clear
  View Solution play_arrow

• question_answer98)
  Which of the following is repercussions of not following the standard accounting practices?
  A)
   Acceptability                             done clear
  B)
   Non-Comparability done clear
  C)
                      Readability                                done clear
  D)
   Feasibility done clear
  View Solution play_arrow

• question_answer99)
  Which of the following statement is correct?
  A)
   Accounting standards make complexity in financial statement done clear
  B)
                      Accounting standard maintain homogeneity in financial records done clear
  C)
                      Accounting standard reduce the comparability done clear
  D)
                      Accounting standard unrestrict theoretical practices. done clear
  View Solution play_arrow

• question_answer100)
  Which of the following statement is correct?
  A)
   Expenses are recorded only at the time of actual payment done clear
  B)
                      Accounting is a subjective practices done clear
  C)
                      Both (a) and (b) done clear
  D)
                      None of the above done clear
  View Solution play_arrow

• question_answer101)
  Which of the following legislation requires companies to follow accrual basis of accounting?
  A)
   Accrual Base Accounting Act, 2007 done clear
  B)
                      Company Act, 2013 done clear
  C)
                      Indian Accounting Legislation Act, 2009 done clear
  D)
                      Audit and Accounts Act, 2010 done clear
  View Solution play_arrow

• question_answer102)
  Accrual basis of accounting is not suitable for whom?
  A)
   Business                                   done clear
  B)
   NGO’s done clear
  C)
                      Government                              done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer103)
  The financial health of a business, can be explained best in term of
  A)
   Profit and loss account               done clear
  B)
                      Trade accounts done clear
  C)
                      Balance sheet done clear
  D)
                      Sundary accounts done clear
  View Solution play_arrow

• question_answer104)
  Which of the following concept would help in realisation of revenue generation?
  A)
   Accrual concept                         done clear
  B)
   Objectivity concept done clear
  C)
                      Matching concept                       done clear
  D)
   Realisation concept done clear
  View Solution play_arrow

• question_answer105)
  Which institution issues guideline regarding uniformity in accounting practices?
  A)
   Cabinet Committee on Accounting done clear
  B)
                      Audit and Accounts Committee done clear
  C)
                      Institute of Chartered Accountants of India done clear
  D)
                      Institute of coast and Accounting done clear
  View Solution play_arrow

• question_answer106)
  The policy of playing safe can be attributed with which accounting convention?
  A)
   Convention of Consistency done clear
  B)
                      Convention of Conservation done clear
  C)
                      Convention of Materiality done clear
  D)
                      Convention of Full Disclosure done clear
  View Solution play_arrow

• question_answer107)
  Dual aspect concept of accounting works on assumption that
  A)
   Every business are based on two entities done clear
  B)
                      every business activity and transaction have two fold effects done clear
  C)
                      every Business activity have two partners, one is business itself and other is shareholder done clear
  D)
                      None of the above done clear
  View Solution play_arrow