Money Reporting

1.
Which of the following is/are not a revenue reserve?

a. General reserve

b. Investment allowance reserve

c. Revaluation reserve

d. Capital reserve

e. Both (c) and (d)

2.
Which of the following is not a fixed asset?

a. Building

b. Bank balance

c. Plant

d. Patents

e. Goodwill

3.
Gross Profit is the difference between

a. Net sales and cost of goods sold

b. Profit After Taxes and Dividends

c. Net Sales and cost of production

d. Net Sales and direct cot of production

e. Net sales and net purchases

4.
The basic concepts related to balance sheet are

a. Cost concept

b. Business Entity Concept

c. Accounting Period Concept

d. Both (a) and (b)

e. All (a), (b) and (c)

5.
Recording of capital contributed by the owner as liability ensures the adherence of principle of

a. Double entry

b. Going concern

c. Separate entity

d. Materiality

e. Consistency

6.
The basic concepts related to P&L Account are

a. Realization concept

b. Matching concept

c. Cost concept

d. Both (a) and (b)

e. All (a), (b) and (c)

7.
As per the double entry concept

a. Assets + Liabilities = Capital

b. Capital = Assets - Liabilities

c. Capital - Liabilities = Assets

d. Capital + Assets = Liabilities

e. None of the above

8.
Only the significant events which affect the business must be recorded as per the principle of

a. Separate entity

b. Accural

c. Materiality

d. Going concern

e. None of the above

9.
P&L account is prepared for a period of one year by following

a. Consistency concept

b. Conservatism concept

c. Time period concept

d. Cost concept

e. None of the above

10.
If the going concern concept is no longer valid, which of the following is true?

a. All prepaid assets would be completely written-off immediately.

b. Total contributed capital and retained earnings would remain unchanged.

c. The allowance for uncollectible accounts would be eliminated.

d. Intangible assets would continue to be carried at net amortized historical cost.

e. Land held as an investment would be value at its realized value.

11.
Under which of the following concepts are shareholders treated as creditors for the amount they paid on the shares they subscribed to?

a. Cost concept

b. Duality concept

c. Business entity concept

d. Going concern concept

e. Since the shareholders own the business, they are not treated as creditors

12.
The underlying accounting principle(s) necessitating amortization of intangible asset(s) is/are

a. Cost concept

b. Realization concept

c. Matching concept

d. Both (a) and (c)

e. Both (b) and (c)

13.
Which of the following practices is not in consonance with the convention of conservatism?

a. Creating provision for bad debts

b. Creating provision for discount on creditors

c. Creating provision for discount on debtors

d. Creating provision for tax

e. None of the above

14.
The accounting measurement that is not consistent with the going concern concept is

a. Historical cost

b. Realization

c. The transaction approach

d. Liquidation value

e. Continuity

15.
Recording of fixed assets at cost ensures adherence of

a. Conservatism Concept

b. Going Concern Concept

c. Cost concept

d. Both (a) and (b)

e. Both (b) and (c)

16.
Certain fundamental accounting assumptions underlie the preparation and presentation of financial statements. They are usually not specifically stated because their acceptance and use are assumed. Disclosures is necessary if they are not followed. Which of the following are not fundamental assumptions specified under Accounting Standard-1?

a. Going Concern concept

b. Consistency concept

c. Accrual concept

d. Materiality concept

e. Both (a) and (b)

17.
Which of the following statements is/are true?

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 results in decrease of one asset and a corresponding increase in another asset.

a. Both (i) and (iii)

b.Both (i) and (ii)

c. Both (iii) and (iv)

d. Both (ii) and (iv)

e. All (i), (ii), (iii) and (iv)

18.
Omission of paise and showing the round figures in financial statements is based on

a. Conservatism Concept

b. Consistency concept

c. Materiality concept

d. Realization concept

e. Cost concept

19.
X Ltd., purchased goods for Rs.5 lakh and sold 9/10th of the value of goods is for Rs.6 lakh. Net expenses during the year were Rs.25,000. The company reported its net profit as Rs.75,000. Which of the following concept is violated by the company?

a. Realization

b. Conservation

c. Matching

d. Accrual

e. Materiality

20.
Accounting does not record non-financial transactions because of

a. Entity concept

b. Accrual concept

c. Cost concept

d. Money Measurement concept

e. Continuity concept

21.
Mr. Rohit, owner of Rohit Furniture Ltd., owns a personal residence that cost Rs.6,00,000, but has a market value of Rs.9,00,000. During preparation of the financial statements for the business, the entire value of property was ignored and was not shown in the financial statements. The principle that was followed was

a. The concept of the business entity

b. The concept of the cost principle

c. The concept of going concern principle

d. The concept of duality principle

e. The concept of realization principle.

22.
Provision for bad debt is made as per the

a. Entity concept

b. Conservatism Concept

c. Cost concept

d. Going Concern concept

e. Time period concept

23.
Fixed assest and current assets are categorized as per concept of

a. Separate entity

b. Going Concern

c. Contingency

d. Consistency

e. Time period

24.
Capital is shown under liabilities because of the

a. Conservatism Concept

b. Accrual concept

c. Entity concept

d. Revenue recognition concept

e. Matching concept

25.
Which of the following statements is true?

a. Going concern concept assumes that business will be carried on for a definite period.

b. Time period concept facilitates the comparison of the results of one accounting period of a business with that in the past.

c. The capital losses need not be deducted to ascertain net income.

d. Provision for bad and doubtful debts is created in recognition of conservatism concept.

e. Materiality concept states that all business transactions are to be recorded however insignificant they may be.

Financial Accounting Volume - I

Financial Accounting Volume - I > Introduction to Accounting > Theory

1.
Which of the following is/are not a revenue reserve?

2.
Which of the following is not a fixed asset?

3.
Gross Profit is the difference between

4.
The basic concepts related to balance sheet are

5.
Recording of capital contributed by the owner as liability ensures the adherence of principle of

6.
The basic concepts related to P&L Account are

7.
As per the double entry concept

8.
Only the significant events which affect the business must be recorded as per the principle of

9.
P&L account is prepared for a period of one year by following

10.
If the going concern concept is no longer valid, which of the following is true?

11.
Under which of the following concepts are shareholders treated as creditors for the amount they paid on the shares they subscribed to?

12.
The underlying accounting principle(s) necessitating amortization of intangible asset(s) is/are

13.
Which of the following practices is not in consonance with the convention of conservatism?

14.
The accounting measurement that is not consistent with the going concern concept is

15.
Recording of fixed assets at cost ensures adherence of

18.
Omission of paise and showing the round figures in financial statements is based on

19.
X Ltd., purchased goods for Rs.5 lakh and sold 9/10th of the value of goods is for Rs.6 lakh. Net expenses during the year were Rs.25,000. The company reported its net profit as Rs.75,000. Which of the following concept is violated by the company?

20.
Accounting does not record non-financial transactions because of

22.
Provision for bad debt is made as per the

23.
Fixed assest and current assets are categorized as per concept of

24.
Capital is shown under liabilities because of the

25.
Which of the following statements is true?

Financial Accounting Volume - I

Financial Accounting Volume - I > Introduction to Accounting > Theory

1. Which of the following is/are not a revenue reserve?

2. Which of the following is not a fixed asset?

3. Gross Profit is the difference between

4. The basic concepts related to balance sheet are

5. Recording of capital contributed by the owner as liability ensures the adherence of principle of

6. The basic concepts related to P&L Account are

7. As per the double entry concept

8. Only the significant events which affect the business must be recorded as per the principle of

9. P&L account is prepared for a period of one year by following

10. If the going concern concept is no longer valid, which of the following is true?

11. Under which of the following concepts are shareholders treated as creditors for the amount they paid on the shares they subscribed to?

12. The underlying accounting principle(s) necessitating amortization of intangible asset(s) is/are

13. Which of the following practices is not in consonance with the convention of conservatism?

14. The accounting measurement that is not consistent with the going concern concept is

15. Recording of fixed assets at cost ensures adherence of

18. Omission of paise and showing the round figures in financial statements is based on

19. X Ltd., purchased goods for Rs.5 lakh and sold 9/10th of the value of goods is for Rs.6 lakh. Net expenses during the year were Rs.25,000. The company reported its net profit as Rs.75,000. Which of the following concept is violated by the company?

20. Accounting does not record non-financial transactions because of

22. Provision for bad debt is made as per the

23. Fixed assest and current assets are categorized as per concept of

24. Capital is shown under liabilities because of the

25. Which of the following statements is true?

1.
Which of the following is/are not a revenue reserve?

2.
Which of the following is not a fixed asset?

3.
Gross Profit is the difference between

4.
The basic concepts related to balance sheet are

5.
Recording of capital contributed by the owner as liability ensures the adherence of principle of

6.
The basic concepts related to P&L Account are

7.
As per the double entry concept

8.
Only the significant events which affect the business must be recorded as per the principle of

9.
P&L account is prepared for a period of one year by following

10.
If the going concern concept is no longer valid, which of the following is true?

11.
Under which of the following concepts are shareholders treated as creditors for the amount they paid on the shares they subscribed to?

12.
The underlying accounting principle(s) necessitating amortization of intangible asset(s) is/are

13.
Which of the following practices is not in consonance with the convention of conservatism?

14.
The accounting measurement that is not consistent with the going concern concept is

15.
Recording of fixed assets at cost ensures adherence of

18.
Omission of paise and showing the round figures in financial statements is based on

19.
X Ltd., purchased goods for Rs.5 lakh and sold 9/10th of the value of goods is for Rs.6 lakh. Net expenses during the year were Rs.25,000. The company reported its net profit as Rs.75,000. Which of the following concept is violated by the company?

20.
Accounting does not record non-financial transactions because of

22.
Provision for bad debt is made as per the

23.
Fixed assest and current assets are categorized as per concept of

24.
Capital is shown under liabilities because of the

25.
Which of the following statements is true?