- MCQS ON BASIC CONCEPTS OF ACCOUNTING
UGC NET COMMERCE/MANAGEMENT - MCQ
- THE
LONG TERM ASSETS THAT HAVE NO PHYSICAL EXISTENCE BUT ARE RIGHTS THAT HAVE
VALUE IS KNOWN AS
I.
CURRENT ASSETS
II.
FIXED ASSETS
III.
INTANGIBLE ASSETS
IV.
INVESTMENTS
· ANSWER IS
iii
- PATENTS,COPY
RIGHTS AND TRADEMARKS ARE :-
I.
CURRENT ASSETS
II.
FIXED ASSETS
III.
INTANGIBLE ASSETS
IV.
INVESTMENTS
· THE ANSWER
IS INTANGIBLE ASSETS
- THE
ASSETS THAT CAN BE CONVERTED INTO CASH WITH A SHORT PERIOD(LESS THAN
ONE YEAR) ARE KNOWN AS :
I.
CURRENT ASSETS
II.
FIXED ASSETS
III.
INTANGIBLE ASSETS
IV.
INVESTMENTS
· THE ANSWER
IS CURRENT ASSETS
- THE
LIABILITIES THAT ARE PAYABLE IN MORE THAN A YEAR AND ARE NOT BE LIQUIDATED
FROM CURRENT ASSETS
I.
CURRENT LIABILITIES
II.
FIXED LIABILITIES
III.
CONTINGENT LIABILITIES
IV.
ALL OF THE ABOVE
· THE ANSWER
IS FIXED LIABILITIES
- THE DEBTS WHICH ARE TO REPAID WITH IN LESS THAN ONE YEAR IS
KNOWN AS:
I.
CURRENT LIABILITIES
II.
FIXED LIABILITIES
III.
CONTINGENT LIABILITIES
IV.
ALL OF THE ABOVE
· THE ANSWER
IS CURRENT LIABILITIES
- ANY WRITTEN EVIDENCE IN SUPPORT OF A
BUSINESS TRANSACTION IS CALLED
I.
JOURNAL
II.
LEDGER
III.
LEDGER POSTING
IV.
VOUCHER
· ANSWER IS
VOUCHER
· THE
ACCOUNTS THAT RECORDS EXPENSES,GAINS AND LOSSES ARE :
I.
PERSONAL ACCOUNT
II.
REAL ACCOUNT
III.
NOMINAL ACCOUNT
IV.
NONE OF TH ABOVE
· THE ANSWER
IS NOMINAL ACCOUNT
- REAL
ACCOUNT RECORDS
I.
DEALING WITH CREDITORS OR
DEBTORS
II.
DEALING IN COMMODITIES
III.
GAINS AND LOSSES
IV.
ALL OF THE ABOVE
· ANSWER IS
DEALING IN COMMODITIES
- THE
PROCESS OF ENTERING ALL TRANSACTIONS FROM THE JOURNAL TO LEDGER IS CALLED:
I.
POSTING
II.
ENTRY
III.
ACCOUNTING
IV.
NONE OF THE
ABOVE THE ANSWER
IS POSTING
- THE
FOLLOWING IS STATEMENT SHOWING THE FINANCIAL POSITION OF THE COMPANY ON
PARTICULAR TIME:-
I.
CASH BOOK
II.
TRADING ACCOUNT
III.
BALANCE SHEET
IV.
PROFIT AND LOSS ACCOUNT
· THE ANSWER
IS BALANCE SHEET
- A
STATEMENT OF REVENUE AND EXPENSES FOR SPECIFIC PERIOD OF TIME
I. JOURNAL
II. TRADING
ACCOUNT
III. TRIAL BALANCE
IV. PROFIT
AND LOSS ACCOUNT
V. BALANCE
SHEET THE ANSWER
IS PROFIT AND LOSS ACCOUNT
- WHICH
OF THESE IS NOT INCLUDED AS A SEPARATE ITEM IN THE BASIC ACCOUNTING
I.
ASSETS
II.
REVENUES
III.
LIABILITIES
IV.
STOCKHOLDER’S EQUITY
- THE
ACCURAL BASIS OF ACCOUNTING RECORDS REVENUE WHEN THEY ARE:
I.
COLLECTED
II.
EARNED
III.
CONTRACTED
IV.
READILY AVIALABLE FOR USE
- A
BUSINESS FIRM IS SEPARATE AND DISTINCT FROM ITS OWNERS IS THE ASSUMPTIONS
UNDER WHICH OF THE FOLLOWING ACCOUNTING CONCEPT
I.
BUSINESS ENTITY
II.
GOING CONCERN ENTITY
III.
MONEY MEASURING ENTITY
IV.
ACCOUNTING PERIOD CONCEPT
V.
NONE OF THE ABOVE
· THE RIGHT
ANSWER IS BUSINESS ENTITY
- ASSUMPTIONS OF ACCOUNTING ENTITY OR
BUSINESS ENTITY CONCEPT IS APPLICABLE FOR WHICH OF THE FOLLOWING BUSINESS:-
I.
SOCIETIES
II.
JOINT STOCK COMPANIES
III.
CORPORATIONS
IV.
PARTNERSHIP FIRMS
V.
ALL OF THE ABOVE
- UNDER
WHICH OF THE FOLLOWING KINDS OF BUSINESS CONCEPTS IT IS ASSUMED THAT THE
ORGANIZATION WILL LAST FOR A LONG TIME
I.
ACCOUNTING ENTITY
II.
GOING CONCERN ENTITY
III.
ACCOUNTING PERIOD
IV.
NONE OF THE ABOVE
· DISTINCTION
BETWEEN AN EXPENDITURE WHOSE BENEFIT WILL BE FOR LONG PERIOD AND WHOSE
BENEFIT FOR SHORT PERIOD OF SAY UP TO ONE YEAR
I.
ACCOUNTING ENTITY
II.
GOING CONCERN ENTITY
III.
MONEY MEASURING ENTITY
IV.
ACCOUNTING PERIOD CONCEPT
- ACCOUNTING PROCEDURES AND ACCOUNTING PRACTICES SHOULD
REMAIN SAME FROM YEAR TO YEAR UNDER WHICH OF THE FOLLOWING ACCOUNTING
PRINCIPLE
I.
DUAL ASPECT PRINCIPLE
II.
MATERIALITY
III.
TIMELINESS
IV.
CONSISTENCY PRINCIPLE
V.
CONSERVATISM
- WHEN
A MACHINERY IS PURCHASED FOR CASH THE CASH BALANCE IS REDUCED AND TO THE
EXTENT, AMOUNT OF MACHINERY AS AN ASSET IS RECORDED. THIS IS DONE TO
FOLLOW WHICH OF THE FOLLOWING
I.
DUAL ASPECT PRINCIPLES
II.
MATERIALITY PRINCIPLE
III.
TIMELINESS PRINCIPLE
IV.
CONSISTENCY PRINCIPLE
· RULES OF
REVENUE RECOGNITION DETERMINE THAT THE EARNING PROCESS SHOULD BE EITHER
COMPLETE OR NEAR COMPLETION UNDER
I.
MATERIALITY CONCEPT
II.
HISTORICAL RECORD
III.
REALIZATION CONCEPT
IV.
DUAL ASPECT CONCEPT
- UNDER WHICH CONVENTIONS OF ACCOUNTING,THE CONTINGENT
LIABILITIES ARE SHOWN AS FOOT NOTE OR EXPLANATORY NOTES IN THE
BALANCE SHEET OF A FIRM:
I.
CONVENTION OF FULL DISCLOSURE
II.
CONVENTION OF MATERIALITY
III.
CONVENTION
OF CONSERVATISM
IV.
CONVENTION OF CONSISTENCY
- VALUATION OF STOCK IS DONE BY A
BUSINESS FIRM AT COST PRICE OR MARKET PRICE WHICHEVER IS LOWER BASIS UNDER
I.
CONVENTIONS OF FULL
DISCLOSURE
II.
CONVENTION OF MATEIRALITY
III.
CONVENTION
OF CONSERVATISM
IV.
CONVENTION OF CONSISTENCY
- A
BUSINESS FIRM CREATES PROVISIONS AGAINST DOUBTFUL DEBT UNDER WHICH OF THE
FOLLOWING CONVENTIONS
I.
CONVENTIONS OF FULL
DISCLOSURE
II.
CONVENTION OF MATEIRALITY
III.
CONVENTION
OF CONSERVATISM
IV.
CONVENTION OF
CONSISTENCY
- THE
CONCEPT THAT RECOGNIZES THE DISTINCTION BETWEEN RECEIPT OF CASH AND THE
RIGHT TO RECEIVE THE CASH IS CALLED:
I.
ACCRUAL CONCEPT
II.
CASH CONCEPT
III.
MATERIALITY CONCEPT
IV.
FULL DISCLOSURE CONCEPT
- ANTICIPATE
NO PROFITS AND PROVIDE FOR ALL POSSIBLE LOSSES. THIS IS ESSENCE OF WHICH
OF THE FOLLOWING ACCOUNTING PRINCIPLES
I.
MATERIALITY PRINCIPLE
II.
DUAL ASPECT PRINCIPLE
III.
CONSERVATISM PRINCIPLE
IV.
CONSISTENCY PRINCIPLE
· THE BUSINESS
TRANSACTIONS ARE RECORDED DATE WISE TO CREATE PROPER RECORD OF ALL THE
TRANSACTIONS. THIS IS A PART OF WHICH OF THE FOLLOWING:
I.
REALIZATION CONCEPT
II.
MATERIALITY CONCEPT
III.
HISTORICAL RECORD CONCEPT
IV.
ACCOUNTING PERIOD CONCEPT
- PROFIT
IS A LIABILITY FOR A ORGANIZATION AND LOSS IS AN ASSET UNDER WHICH OF THE
FOLLOWING CONCEPTS
I.
BUSINESS ENTITY CONCEPT
II.
HISTORICAL RECORD CONCEPT
III.
DUAL ASPECT
IV.
ACCOUNTING PERIOD CONCEPT
· THE
ACCOUNTING EQUATION ASSET=CAPITAL +LIABILITY IS PART OF WHICH OF THE FOLLOWING
CONCEPT
I.
HISTORICAL RECORD CONCEPT
II.
DUAL ASPECT
III.
ACCOUNTING PERIOD CONCEPT
IV.
DUAL ASPECT CONCEPT
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