1. Which of the following jobs check accounting in ledgers and financial statements?

Financial

Audit

Management

Budget Analysis

2. The process of accounting is needed to

I. take a holiday
II. assist in decision making
III. invest in start up of a business
IV. track money spent

I, II and III

I, II and IV

I, III and IV

II, III and IV

3. Which of the following describes the practical framework of bookkeeping?

Classifying, recording and summarizing

Reporting, analyzing and interpreting

Classifying, analyzing and interpreting

Recording, summarizing and reporting

4. Which of the following principles assumes that a business will continue for a long
time?

Historical cost

Periodicity

Objectivity

Going concern

5. Which of the following users assesses the attractiveness of investing in a business?

Tax authorities

Financial analysts

Bank

Employees

6. Accountants use generally Accepted Accounting Principles (GAAP) to make the

financial information communicated
I. Relevant
II. Reliable
III. Comparable
IV Profitable

I, II and III

I, II and IV

I, III and IV

II, III and IV

7. One of the detailed rules used to record business transaction is

Objectivity

Accruals

Double entry book keeping

Going Concern

8. The diagram below refers to item 8.

Numbers 4 and 8 in the diagram represents

(A) Prepare a cheque and extract a Trial balance
(B) Extract a trial balance and prepare final reports
(C) Prepare final reports and prepare a cheque
(D) Extract a trial balance and prepare a voucher

9. Which of the following highlights the correct order of the stages in the accounting
cycle?

Journalizing, final accounts, posting to the ledger and trial balance

Journalizing, posting to the ledger, trial balance and final accounts

Posting to the ledger, trial balance, final accounts and journalizing

Posting to the ledger, journalizing, final accounts and trial balance

10. Dividends are paid by

I. Sole trading businesses
II. Partnership companies
III. Limited Liability companies
IV. Co-operatives

I and II

I and III

II and III

III and IV

11. Which of the following companies has to pay corporation tax?

Co-operative society

Limited liability Company

Partnership Company

Sole trading company

12. Which of the following companies has unlimited liability?

Sole trading company

Co-operative society

Limited liability Company

Partnership Company

13. The Trading and Profit and Loss account is also called

Balance Sheet

Cash Flow Statement

Income Statement

Trial Balance

14. The elements of the accounting equation are

I. Assets
II. Liabilities

III. Trial Balance

IV. Capital

I, II and III

I, II and IV

I, III and IV

II, III and IV

15. Which of the following are assets?

I. Cash and cash at bank
II. Land and fixtures
III. Loans and creditors
IV. Mortgage loans and debtors

I and II

I and III

I and IV

II and III

16. Which of the following concepts use the rules every transaction affects two or more
ledger accounts?

Going concern

Double entry book-keeping

Money measurement

Periodicity

17. The purchase of a motor car on credit from Toy Automotive Company for use in a
firm should be recorded as

Dr. Maintenance of vehicle expense, Cr. Toy Automotive Company

Dr. Purchases, Cr. Toy Automotive Company

Dr. Motor vehicle, Cr. Toy Automotive Company

Dr. Motor vehicle, Cr. Cash

18. Item 5 refers to the following information

Cash Capital Rs.40 000

Drawings Rs.10 000

Sales 15 000

Purchases 20 000

Balance c/d ???

Which of the following figures represents the balance c/d for the above account?

Rs.10 000

Rs.25 000

Rs.30 000

Rs.55 000

19. Which of the following financial statements reflects the overall financial position of
the business?

Statement of cash flows

Income Statement

Balance Sheet

Statement of owners equity

20. Expense is recorded in the accounting records when:

Cash is paid

The purchase order is placed with the supplier

Purchases are made

None of these

21. Double entry book-keeping was fathered by:

F.W.Taylor

Henry Fayol

Lucas Pacioli.

Peter Druker

22. The portion of a corporations earnings that are reinvested in the corporation rather
than returned to stockholders is called:

Dividend

Stockholders Equity

Liabilities

Retained Income

23. The balance sheet equation is best represented by:

Assets = Liabilities +Owners Equity

Assets = Capital

Liabilities = Assets + Owners Equity

Capital = Assets + Liabilities

24. The accounting information specially prepared to aid managers is called

Management Accounting Information.

Cost Accounting

Management Accounting

Financial Accounting

Human Resource Accounting

25. Cost Accounting .. provides data both for financial accounting and management
accounting.

Cost Accounting

Management Accounting

Financial Accounting

Human Resource Accounting

26. Journal is called as book of .. entry.

Secondary Entry

Prime Entry

Ledger

Accounting

27. Historical costs are used in Financial Accounting.

Cost Accounting

Management Accounting

Financial Accounting

Human Resource Accounting

28. GAAP stands for ..

General Accounting and Audit Principles

Generally Accepted Audit Policies

Generally Accrued Accounting Principles

Generally Accepted Accounting Principles

29. IFRS stands for ..

International Financial Reporting Standards

Indian Financial Reporting Standards

International Financial Restructuring Standards

International Fund Reporting Standards

30. Match the following

a.

Personal Accounts is Debited

1. For Expenses

b.

Real Accounts is Debited

2. When a person is Receiver

c.

Nominal Accounts is Debited

3. When a person is Giver

d.

Personal Accounts is Credited

4. When there is a Gain

e.

Real Accounts is Credited

5. For what is Received

f.

Nominal Accounts is Credited

6. When something is going out

a-1,b-2,c-3,d-4,e-5,f-6

a-2,b-6,c-4,d-1,e-5,f-3

a-2,b-5,c-1,d-3,e-6,f-4

a-3,b-2,c-6,d-4,e-5,f-1

31. Accounting Equation is based upon .. Concept.

Dual Aspect Concept

Materiality Concept

Prudence Concept

Full Disclosure Concept

32. Drawings are deducted from

Sales

Purchases

Capital

Assets

33. Which of the following is not an external user of accounting information

Banker

Taxation authorities

Manager

Shareholders

34. A company has spent Rs. 2000 on painting the factory building. It should be treated
as

Capital expenditure

Revenue expenditure

Deferred revenue expenditure

Accrued expenditure

35.Which of the following is an accounting equation

Capital = Asset + Liability

Capital = Liability - Assets

Asset = Liability Capital

Asset = Liability + Capital

36. A company is guided by ?

Companies Act 1931

Companies Act 1934

Companies Act 1932

Companies Act 1956

37. Who is owners of company..

Share holders

Promoter

Director

Partner

38. Q.5 Interest on capital will be paid to the partners , if provided for in the
organization , but only from--

Reserves

Profits

Goodwill

Accumulated profit.

39. Q.6 Book keeping is concerned with --

Recording of financial transactions

Classification of financial transactions

Summarization of financial transactions

Both a) & b)

40. Accounting is concerned with

Monetary Transactions

Non-Monetary Transactions

Monetary and Non-Monetary Transactions

Illegal Transactions

41. Which of the following is fundamental Accounting Assumption?

Going Concern

Materiality

Prudence

Business Entity

42. Accounting Standards are

Basis for selection of accounting policy

Set of broad accounting policies to be followed by an entity

Basis for establishing and managing an entity

Basis for non business activities

43. Consider the following Trial BalancePurchases Rs.30000

Purchase Return Rs.5000
Sales Rs.40000
Sales Return Rs.5000
The amount of profit will be

Rs.10000

Rs.5000

Rs.7500

Rs. 8000

44. Unexpired Insurance given in the Trial Balance is recorded in

Trading account

Profit and loss account

Balance Sheet

Profit and loss appropriation account

45. The capital of all the partners should always be in the ----- ratio

Profit sharing

Time devoted

Equal

None

46. Financial accounting provides financial information to all of the following external
users except:

Government Agencies

Investors

Manager

Supplier

47. Liabilities are which of the following?

Resources

Obligations

Future benefits

Expenses

48. If Assets = Rs. 1 99,500 and Owner's equity =

Rs. 298,000

Rs. 100,000

Rs. 99,500

Rs. 115000

Rs. 99,500 then Liabilities = ?

49. In case of Partnership business, liabilities of partners are:

limited

unlimited

limited to the business capital

limited to debt

50. Double entry book-keeping was fathered by:

F.W.Taylor

Luca Pacioli

Henry Fayol

Peter Drucker

51. Management Accounting provide services to management performing---

All management functions

Controlling function

Interpret the financial data

Planning

52. During life time of an entity, accountant produce financial statement at particular
points in time in accordance with which principle.

Matching

Periodicity

Conservatism

Accrual

53. Which of the following is not a conventions of financial accounting?

Consistency

Materiality

Full disclosure

Conservatism

54. Cost accounting is different from financial accounting in respect of:

Inventory valuation

Ascertainment of cost

Recording of cost

Reporting of cost

55. Planning & forecasting is the function of

Financial accounting

Book-keeping

Cost accounting

Management accounting

56. Management accounting and cost accounting are ---

Supplementary to each other

Complementary to each other

Independent to each other

Opposite to each other

57. The technique and process of ascertaining the cost is termed as

Financial Accounting

Costing

Cost Accounting

Cost Accountancy

58. A company has spent Rs. 2000 on painting the factory building. It should be treated
as

Capital expenditure

Revenue expenditure

Deferred revenue expenditure

Revenue Income

59. Debit may signify

Increase asset account

Decrease in asset account

Increase in a liability account

Increase in capital account

61. Which of the following is not an example of fixed asset.

Plant & Machinery

Land & Building

Royalty

Patent

62. Which of the Following are examples of Personal accounts --

Machinery

Wages

Debtors

Depreciation

63. Which of the following is not financial statement

Profit and loss account

Profit and loss appropriation account

Balance sheet

Trial Balance

64. Trial balance .

Reflects the true financial position of the firm

Is accepted by the court as documentary evidence

Is prepared annually or half yearly

List of debit and credit balances.

65. Which of the following best describes the meaning of Purchases?

Items sold

Order given

Machinery purchased

Goods paid for

66. An Accounts has sides called ------------

Journal and Ledger

Assets And Liabilities

Revenue and Expenditure

Debit and Credit

67. One of the criticisms of accounting information has been:

the information is always incorrect.

accountants never follow rules and regulations.

inflation is not normally reflected within the financial statements.

companies should report the future instead of the past.

68. Share capital is:

the way in which capital is divided at the end of each year.

the way in which partners decide to divide profits and losses.

another name for London's stock exchange.

the way in which the ownership of a limited company is divided.

69. Which of the following is not a component of a complete set of financial statements?

A statement of changes in equity

A management commentary

A set of notes

A statement of cash flows

70. Items of financial information are material if:

They are insignificant

They could not influence the economic decisions made by the users of financial
statements

They could influence the economic decisions made by the users of financial
statements

They are aggregated with other items

71. Management accounting is said to meet:

The external accounting needs of the organisation.

The internal accounting needs of the organisation.

The regulatory requirements of the organisation.

The needs of laws that govern company financial reporting

72. Cost accounting differs from financial accounting in that financial accounting:

Is mostly concerned with external financial reporting.

Is mostly concerned with individual departments of the company.

Provides the additional information required for special reports to management.

Puts more emphasis on future operations.

73. Cost Accounting is

Accounting of product or service cost

Monetary transactions of business

Non Monetary Transactions of business

For external users

74. Accounting is a -----------

Language of Individual

Language of Business

Language of Science

Language of Arts

75. Techniques of Cost Accounting Includes:

Trial Balance

Job Costing

Marginal Costing

Balance sheet

76. Historical Cost are used in which accounting?

Cost Accounting

Financial Accounting

Responsibility Accounting

Tax Accounting

77. Which of the following is not a major function of Management Accounting

Human Resource Management

Cost Accounting

Budgeting

Internal Auditing

78. Gross Profit is

Sales less Purchases

Excess of sales over cost of goods sold

Net profit less expenses of the period

Cost of goods sold + opening stock

Rs. 30300

79. The Balance sheet of company should be presented in accordance with --

Part I of Schedule V of companies act

Part II of Schedule IV of companies act

Part I of Schedule VI of companies act

Part II of Schedule VI of companies act

80. What is the full form of SEBI

Share exchange board of India

Security exchange board of India

Security encashment board of India

Share earned board of India.

81. Interest on drawing is ____________ for the business.

Expenditure

Expense

Gain

No profit no loss

82. What is the other name of partnership deed?

Articles of Partnership

Partnership firm

Partnership Report

Partnership Data

83.Which of the following is a major accounting contribution to the managerial

decision-making process in evaluating possible courses of action?

Determine who is responsible for the decision.

Prepare internal reports that review the actual impact of a decision made.

Calculate how much should be invested for each potential project.

Select possible actions that management should consider.

84.What does cost accounting measure, record, and report?

Product costs

Future costs

Manufacturing processes

Managerial accounting decisions

85.Which one of the following is a major purpose of cost accounting?

To provide gross profit rates to managers

To allocate overhead costs to jobs

To classify all costs as direct or indirect

To measure, record, and report product costs

86. Which of the following statement is true?

Managerial accounting information generally pertains to an entity as a whole

and is very detailed.

Managerial accounting applies only to manufacturing companies.

Management accounting is based on historical data.

Management accounting is useful to external users.

87. Goodwill is ------

A Tangible Assets

A Current Assets

An Intangible Assets

Fictitious Assets

88. Balance sheet is also known as ____

Cash flow statement

Fund flow statement

Analysis statement

Position statement

89. Accounting is generally understood as ___

1. Summarization of business transactions
2. Language of the business
3. Source of business information
4. Means of communication

1 Only

1 and 2 Only

2 and 3 Only

1,2,3,and 4

9.0 Accounting standards in India are issued by

Central Govt.

State Govt.

ICAI

RBI

91. Partnership act commences in :

1st October 1932

1st July 1932

1st January 1932

1st March 1932