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knowledge bank -basic learning MCQ(FA)

Q(1). According to which concept, proprietor of a business is treated as a creditors to the extent of his capital A. Money measurement B.Cost C.Dual aspect D.Business Entity

Q(2). The policy of anticipate no profit and provide for all possible losses arises due to A. Convention of consistency B. Convention of conservatism C. Convention of materiality D. Convention of full disclosure

Q(3). Revenue is generally recognized as being earned at the point of time A. Sale is effected B. Cash is effected C. Production is completed D. All of the above

Q(4). The fundamental accounting equation Assets = liabilities is the formal expression of A. Matching concept B. Entity concept C. Going concern concept D. Dual aspect concept

Q(5). Depreciation is A. An accounting necessity only B. Tax necessity only C. Tax and accounting necessity D. Tax, account and audit necessity

Q(6). ‘Every debit has a corresponding credit’ it is the concept of A. Incomplete records B. Cost sheets C. Single entry system D. Double entry system

Q(7). The process of recording transactions in a journal is known as _______ A. Journalizing B. Journal C. Posting D. Journal entry

Q(8). Accounting records transactions in term of A. Commodity units B. Production units C. Monetary units D. Expense units

Q(9). Income received in advance by a business units is A. A liability B. An assets C. A loss D. Gain

Q(10). Expenditure incurred by a publisher for acquiring copyright is a. A. Deferred revenue expenditure B. Capital expenditure C. Revenue expenditure D. Assets

Q(11). Loss of cash by theft committed by cashier after business hours is a A. Revenue loss B. Deferred revenue loss C. Capital loss D. Business loss

Q(12). An expenditure incurred to derive long term advantage is A. Revenue expenditure B. Expense C. Capital expenditure D. Deferred capital expenditure

Q(13). Machinery purchased on account is recorded in A. Journal B. Ledger C. Purchase book D. Cash book

Q(14). Rent prepaid is A. Assets B. Liability C. Income D. Expense

Q(15). Closing stock given in the trial balance will be taken to A. P&L account only B. Income and expenditure account only C. Trading account only D. Balance sheet only

Q(16). Sale of grass in the case of a sports club is A. An assets B. Revenue receipt C. Capital receipt D. Income

Q(17). Purchase ledger contains the accounts of A. Debtors B. Creditors C. Total purchase D. All the above

Q(18). Sales ledger contains accounts of A. Suppliers B. Customers C. Total sales D. All the above

Q(19). Cash purchase of fixed asset is entered in the A. Purchase book B. General ledger C. Cashbook D. Purchase account

Q(20). Normally value of closing stock ________ in the trial balance A. Appears B. Does not appear C. May or may not appear D. Sometime appear

Q(21). Cost of goods sold plus selling expenses equals A. Cost of production B. Gross profit C. Sales D. Cost of sales

Q(22). 1/6 profit on sales means ________ on cost A. 1/6 B. 1/5 C. 1/4 D. 1/3

Q(23). Unearned income is a A. Liability B. Asset C. Expense D. Income

Q(24). Unexpired expenses is a _______ A. Liability B. Asset C. Income D. Expenditure

Q(25). Creditors account is prepared to ascertain A. cash purchases B. cash sales C. credit sales D. credit purchases

Q(26). To find out credit sales which account should be prepared A. debtors account B. creditors account C. sales account D. purchases account

Q(27). Cash paid to creditors + closing creditors – opening creditors = A. total purchase B. cash purchase C. credit purchases D. total debtors

Q(28). Excess of asset over liability is called A. creditors B. profit C. capital D. goodwill

Q(29). The liabilities and assets respectively are rs 87000 and rs 92000.amount of difference will be A. creditors B. debentures C. capital D. none of these

Q(30). In which book the transactions are recorded originally A. cashbook B. balance sheet C. journal D. subsidiary book

Q(31). The business will continue to operate for an indefinitely long period in the future, unless there is a good evidence to the contrary this assumption is related to A. cost concept B. dual aspect concept C. matching concept D. none of these

Q(32). A person who owes money to the firm is called A. Debtors B. Creditors C. Owners D. Bankers

Q(33). Sold machinery worth Rs 10000 to is entered in the A. Sales account B. Cash account C. Sales return account D. Machinery account

Q(34). The stock is valued at A. Cost price B. Market price C. Cost price or market price whichever is higher D. Cost price or market price whichever is lower

Q(35). Which of the following is an operating expenses A. Bad debt B. Salary to manager C. Depreciation D. Expired insurance

Q(36). The expenses which have been incurred to bring the goods or making the goods ready for sales is called A. Administrative expenses B. Direct expenses C. Indirect expenses D. Revenue expenses

Q(37). Expenses which have become due during the accounting period for which the final accounts have been prepared but have not yet been paid is called A. Accrued B. Outstanding C. Arrears D. Non over dues

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