Sr. No.

Question

1 Modern Method of Accounting was introduced by

2 The main objective of bookkeeping is

3 The main objectiveofaccounting is

Consider the following statements: 1) Accounting records only monetary
4 transactions 2)Accounting records both quantitative and qualitative
transactions
5 The work of a book keeper is ---------- in nature

6 The aim of cost Accounting is ---------

7 The accounting system followed by the lawyers and professionals is -------

Outstanding expenses and income will be taken into accounting under
8
-------
The Following system records only the actual cash receipts and payments
9
----------
10 In Accounts recording is made of

11 Which of the following transaction is not of financial character?

12 Internal users of accounting information are

13 External user of accounting information are

14 Which of the following is not the limitation of acounting?

15 Which of the following is /are subfields of accounting?

16 Cost Accounting is releted to

17 Current Assets include

18 Owner of the business is called

19 Goodwill is one of the --------Assets

A Person who gives a benefit without receiving money or moneys worth
20
immediately is known as a--------
21 Salary is one of the-----Expenses

22 Weges is one of the _____Expenses

23 Deperaciation is one of the --------Expenses

24 Outstanding salary accont belongs to---------

25 Capital Account belongs to------

26 Drawings accounts Belongs to------

……….Denotes customs or traditions or usage which guide the accountant
27
for the preparation of accounting statements
28 Based on -------Accounting recordsthe tranactions of financial nature only
According to …………., the fixed assets are recorded at the price at which
29
at which they are acquired and not at the market value .
Base on the Convention of ………..,rules and parctices and principlesof
30
accounting should be continuously observed and applied year after year
When an entry appears on both the side of the cash of the cash book it is
31
known as--------------
The entry passed in the books of account transfer the closing balance of
32 ledgers while preparing the final accounts at the end of the year is known
as
The entry passed in the books of account to transfer the closing balance of
33 ledgers while preparing the final accounts at the end of the year is known
as ---------------
All Transactions pertaining to an acount are collected at one place in
34
the---------
35 …………. Is a Summary of all transactions relating to a particular account
Under which concept 52 weeks or one year has been accepted as the
36
accounting period ?
37 Which of the following account will have a debit side balance?

In case the partnership deed does not provide anything about interest to
38 be paid on ----- according to the Partnership Act 1932 it is to be ------- at a
rate of :
The partner who takes part in the day to day affairs of the business
39 management of the partnership firm is called:

The partner who contributes capital but does not takes part in the day to
40 day affairs of the business management of the partnership firm is called:

41 The partner who is less than 18 years of age in a partnership firm is called:

Under the following method of ------------------- Current Account of partners

42 is required to be maintained:
43 The following will be shown in the partner’s capital account:
44 The maximum number of partners in a partnership firm is:
The maximum number of partners in a partnership firm carrying on the
45 business of Banking is:

46 Registration is compulsory for following types of business organizations:

 The withdrawal of money or goods by the proprietor from his business is
47 called as:
48 The book of daily record of all transactions is called as:
Summarized record of all the transactions relating to any particular person,
49
thing, income or loss is called as:
When an entry is passed it is required to be followed by an explanation of
50
transaction. This explanation is called as:
Act of recording the transaction in ledger on the basis of entry made in the
51 original book is called as :
52 Debts which are irrecoverable are called as :
53 All non-cash transactions are recorded in :
54 All of them are journals except:
55 A ledger is divided into:
56 The transaction recorded in journal are:
When an error is made while passing the entry and it has to be eliminated,
57 the following entry is passed:
In order to arrive at the correct profit or loss at the end of the year, some
58 adjustments are required to be made. Such adjustments are made by
passing:
The assets that are of permanent nature and used in business again &
59 again are called:
60 The assets that can be seen with our eyes are called:
61 The assets that cannot be seen with our eyes are called:

62 The intangible assets which do not have any realizable value are called:

63 The requirements of Revised Schedule VI do not apply to:

The Ministry of Corporate Affairs specified the format of Schedule VI. The
64 General Instructions are given in :
The Ministry of Corporate Affairs specified the format of Schedule VI. The
65 Form of Balance Sheet is given in :
The Ministry of Corporate Affairs specified the format of Schedule VI. The
66 Form of Statement of Profit and Loss is given in :
The Ministry of Corporate Affairs specified the format of Schedule VI. The
67 Form of Statement of Profit and Loss is given in :
68 In case of any conflict between Accounting Standards and Schedule
The Revised Schedule VI has eliminated the concept of ‘schedule’ and such
69 information is now to be furnished in :
The Revised Schedule VI prescribes _________ format for presentation
70 of Balance sheet.
71 All the assets and liabilities are classified into:
The Revised Schedule VI prescribes disclosure of number of shares held by
72 each shareholder more than _____% of shares.
 A debit balance in the Statement of Profit & Loss will be disclosed under
73 the head:
74 The term sundry debtors has been replaced with the term:
75 Shareholders’ Funds consists of :
76 Current Liabilities consists of:
An operating cycle is the time between the acquisition of assets for
77 processing & Their realization in cash. Where the normal operating cycle
cannot be identified, it is assumed to have a duration of :
The classification mentioned below, Capital Redemption Reserve,
78 Debenture Redemption Reserve, Revaluation Reserve, Capital Reserves
etc. appears in the _________heading of Balance sheet:
The classification Bonds / Debentures, Term Loans, Deferred Payment
79 Liabilities, Deposits, Loans and Advances etc. will appear under the
_________ heading of Balance Sheet:
Borrowings shall be further sub-classified into ------------- as per Revised
80
Schedule VI:
The classification Loans repayable on demand, Loans & advances from
81 related parties, Deposits, Other Loans and Advances etc. will appear under
the ----------------heading of Balance Sheet:
The assets Land, Buildings, Plant & Equipment, Furniture & Fixture,
82 Vehicles will come under:
The assets Goodwill, Trademarks, Patents & Copyrights, Intellectual
83 Property Rights will come under:

84 Give two effects of the following, Insurance premium of 800 is prepaid.

Give two effects of the following, Insurance premium of 800 is

85 outstanding.

86 Give two effects of the following, Insurance claim receivable

87 Give two effects of the following, Effect of closing stock in Trial Balance

Give two effects of the following, Effect of closing stock in adjustment

88 entry.

89 Give two effects of the following, Bills receivable dishonored

90 Give two effects of the following, Provision for tax in trial balance

91 We calculate RDD on debtors after:

92 Preliminary expenses are
When revaluation of asset results in decrease in value of asset the effect
93
will be
94 Balance sheet is prepared to ascertain
95 Bank overdraft is a
96 Return outward appearing in the trial balance is deducted from
97 Unearned income account is
98 Ledger folio in the jounal is filled at the time of
99 Posting refers to the process of transferring information from

100 Posting means recording of the transaction

 Option 1 Option 2

R M Carter Luco Paciolli

To havepermanent recordof allthe business
To find outthe resultsof business operations
transactions.
To recordallthe business transactins Tomaintain the accounting records

Only 1 is correct Only 2 is correct

Analytical Clerical
Ascertaining the cost incurred for producing Ascertaining the Trading results of the
a product process or services business concern
Cash basis Accrual basis

Cash basis of accounting Mercantilebasis of accounting

Cash basis Accrual basis

only financial tranaction only non financial transaction

Purchase of asset on cridit purchase of goods for cash

owners Creditors

Researchers Government

Based on accounting conventions Incomplete information

financial accounting Cost Accounting

Ascertaining the cost of goods produced or
Recording of financial transactions
services rendered
Bills Receivable Prepaid Expenses

Proprietor Creditors

Tangible intangible

Creditor Debtor

Capital Revenue

Direct indirect
 Non-cash Capital

Nominal Accont Real Account

Nominal Accont Real Account

Nominal Accont Real Account

Accounting Conventions Accounting Concepts

Business entity concept Cost concept

Matching Concept Cost concept

Consistancy full Disclosure

Opening entry Closing entry

Opening entry Closing entry

Opening entry Closing entry

Journal Ledger

Balance sheet Trial Balance

Business entity concept Matching concept

Capital Account Drawing Account

5% 6%

Sleeping Partner Active Partner

Sleeping Partner Active Partner

Sleeping Partner Active Partner

Fixed Capital Method Fluctuating Capital Method

Drawings made by the partner Interest on drawings & capital

10 20

10 20

Sole proprietor organization Partnership organization

 Transaction Drawings

Ledger Journal
Ledger Journal

Description Narration

Casting Posting

Reserve on doubtful debts Bad debts

Ledger Journals
Purchase Return Book Sales Book
Debtors’ Ledger Creditors’ Ledger
Opening & Closing Entries Transfer & Rectification Entries

Opening entry Adjustment entry

Opening entry Adjustment entry

Current Assets Fixed Assets

Current Assets Tangible Assets

Current Assets Tangible Assets

Current Assets Tangible Assets

An Insurance Company Banking Company

A B

A B

A B

Part I Part II

AS shall prevail Schedule shall prevail

Part I Part II

Horizontal Format Vertical Format

Fixed and Non-Fixed Short Term & Long Term

10 15
 Non – Current Assets Reserves & Surplus

Bills Receivables Trade Receivables

Share Capital Reserves & Surplus
Short – Term Borrowings & Provisions Trade Payables

6 months 12 months

Share Capital under Shareholders' Funds Non- Current Liabilities

Long-term Borrowings under Non-Current Deferred tax liabilities (net ) under Non-
Liabilities Current Liabilities

Long-term & Short-term Secured & Unsecured

Other Current Liabilities under Current

Trade Payables under Current Liabilities
Liabilities

Tangible Assets Intangible Assets

Tangible Assets Intangible Assets

Less from P &L and balance sheet asset Add to P &L and balance sheet asset side
side
Less from P &L and balance sheet asset
Add to P &L and balance sheet asset side
side
P &L debit side and balance sheet asset P &L credit side and balance sheet asset
side side

Trading account credit side Balance sheet asset side

Trading ac credit side & BS asset side Trading account debit side

Less from bills payable & add to debtors Add to BR & less from debtors

Credit of P & L Debit side of P & L

Reducing bad debts from debtors Directly on the debtors given in trial balance
Capital Expenditure Revenue
P & L credit side P & L Debit side
Profit & Loss Financial Position
Current liability Contingent liability
Sales Purchases
An asset A liability
journalising balancing
jounal to general ledger accounts general ledger accounts to journal

on the debit side of account related to the

in any two accounts
transaction
 O
O Correc
p
pt t
ti
Option 3 Option 4 io answe Question type
o
n r(1,2,3,
n
5 4,5,6)
6

J R Batilbai M S Gosav 2 Objective

To analyse the resultsof business Tointerpret the result of business
1 Objective
operations. operation
Toascertain analyse and
To know the amount due from customer and
interpretthe result of business 4 Objective
due to suppliers
operation
Both are correct Both are wrong 1 Objective

Executive Non-Recurring Objective

Providing necessary accounting
Analyzing the financial statement Objective
information to the management
Mercantile basis Single entry system. 1 Objective

Single entry System double entry system 2 Objective

Mercantile basis Single entry system. 1 Objective

personal transactions of the
financial & non financial transactions 1 Objective
proprietors
withdrawing of money by proprietor from
strike by employee 4 Objective
business
Management Government 3 Objective

Bank & Financial Institutions All of the Above 4 Objective

Evidence in legal matters mission of qualitative information 3 Objective

Management Accounting All the above 4 Objective

Management information systems Non of the above 2 Objective

Cash All of the Above 4 Objective

Debtor Investor 1 Objective

Current Liquid 2 Objective

Investor Customer 1 Objective

Direct Non- Cash 2 Objective

Capital Non-cash 1 Objective

 Non-Recurring Direct 1 Objective

Arifical Persons accounts Representative Account 4 Objective

Arifical Persons accounts Representative Account 4 Objective

Arifical Persons accounts Representative Account 4 Objective

Accounting Rules Accounting Regulations 1 Objective

money measurement concept Matching Concept 3 Objective

Duel Aspect Concept Revenue Realization concept 2 Objective

conservatism materiallity 1 Objective

coumpound entry contra entry 4 Objective

coumpound entry contra entry 1 Objective

coumpound entry contra entry 2 Objective

Trial Balance Balance sheet 2 Objective

Ledger Journal 3 Objective

Accounting Period concept Cost Concept 3 Objective

Sales Account Purchase Returens Account 2 Objective

7% 8% 2 Objective

Minor Partner Dormant Partner 2 Objective

Minor Partner Nominal Partner 1 Objective

Minor Partner Dormant Partner 3 Objective

Both i & ii None of these 1 Objective

Share of net profit or loss All of above 4 Objective

15 25 2 Objective

15 25 1 Objective

Company All of above 3 Objective

 Capital Goods taken by owner 2 Objective

Account Trial Balance 2 Objective

Account Trial Balance 3 Objective

Account Casting 2 Objective

Drawing Carry Forward 2 Objective

Reserve for discount on debtors None of above 2 Objective

Trial Balance Final Accounts 2 Objective
Cash Book Capital Account 4 Objective
General Ledger All of above 4 Objective
Adjustment Entries All of above 4 Objective

Rectification entry Transfer entry 3 Objective

Rectification entry Transfer entry 2 Objective

Floating Assets Fictitious Assets 2 Objective

Intangible Assets Fictitious Assets 2 Objective

Intangible Assets Fictitious Assets 3 Objective

Intangible Assets Fictitious Assets 4 Objective

Company engaged in generation or supply

All of above 4 Objective
of electricity

C D 1 Objective

C D 2 Objective

C D 4 Objective

Part III None of the above 2 Objective

Notes to Accounts shall prevail Conflict will Prevail 1 Objective

Notes to Accounts All mentioned above 3 Objective

Anyone of the Two Both. 2 Objective

Current & Non-Current Tangible and Intangible 3 Objective

5 6 3 Objective
 Non – Current Liabilities Share Capital 2 Objective

Accounts Receivable Amounts Receivable 2 Objective

Money Received against Share Warrants All mentioned above 4 Objective
Other Current Liabilities All of above 4 Objective

15 months 4 months 2 Objective

Reserves & Surplus under Shareholders'

Current Liabilities 3 Objective
Funds

Other Long-term Liabilities under Non- Long –term provisions under Non-
1 Objective
Current Liabilities Current Liabilities

From Financial Institutions &

With Interest & Without Interest 2 Objective
Others

Short-term Provisions under Current Short-term borrowings under

4 Objective
Liabilities Current Liabilities

Capital Work – in – Progress Fixed Assets held for sale 1 Objective

Capital Work – in – Progress Fixed Assets held for sale 2 Objective

Less from P &L and balance sheet

Add to P &L and balance sheet liability side liability side 1 Objective

Less from P &L and balance

Add to P &L and balance sheet liability side 3 Objective
sheet liability side
P &L debit side and balance sheet liability P &L credit side and balance
2 Objective
side sheet liability side
Trading account debit side & Balance sheet Trading account credit & Balance
2 Objective
asset side sheet asset side

Trading ac dedit side & BS asset side Trading account credit side 1 Objective

Less from BR & add to debtors Add to BR & less from debtors 3 Objective

Balance sheet liability side BS Asset side 3 Objective

After reducing all adjustments on debtors At a given % 3 Objective

Deferred Revenue Expenditure All of above 3 Objective
Less from asset Both ii & iii 4 Objective
Errors of accounts Balances of accounts 2 Objective
Current assets Unsecured Loan 1 Objective
Return ineard closing stock 2 Objective
An expense An Income 2 Objective
posting casting 1 Objective
 source documents to journal journal to source documents 1 Objective
on the proper side of two
on the crebit side of account related to the
accounts related to the Objective
transaction
transaction
Time(in seconds) Out of marks Explanation

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1
60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1
60 1

60 1

60 1
60 1

60 1

60 1

60 1

60 1

60 1
60 1
60 1
60 1
60 1

60 1

60 1

60 1

60 1
60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1
60 1

60 1
60 1
60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1

60 1
60 1
60 1
60 1
60 1
60 1
60 1
60 1
60 1

60 1
Q.
Question Option A Option B Option C Option D Answer
No.

1 Modern Method of Accounting was introduced by R M Carter Luco Paciolli J R Batilbai M S Gosav

To analyse the Tointerpret the

To havepermanent recordof allthe To find outthe resultsof
2 The main objective of bookkeeping is resultsof business result of business
business transactions. business operations
operations. operation
Toascertain
To know the amount analyse and
To recordallthe business Tomaintain the accounting
3 The main objectiveofaccounting is due from customer interpretthe result
transactins records
and due to suppliers of business
operation
Consider the following statements: 1)
Accounting records only monetary transactions
4 Only 1 is correct Only 2 is correct Both are correct Both are wrong
2)Accounting records both quantitative and
qualitative transactions
5 The work of a book keeper is ---------- in nature Analytical Clerical Executive Non-Recurring
Providing
Ascertaining the cost incurred for Ascertaining the Trading necessary
Analyzing the
6 The aim of cost Accounting is --------- producing a product process or results of the business accounting
financial statement
services concern information to the
management
The accounting system followed by the lawyers Single entry
7 Cash basis Accrual basis Mercantile basis
and professionals is ------- system.
Outstanding expenses and income will be taken Mercantilebasis of double entry
8 Cash basis of accounting Single entry System
into accounting under ------- accounting system
The Following system records only the actual Single entry
9 Cash basis Accrual basis Mercantile basis
cash receipts and payments ---------- system.
financial & non personal
only non financial
10 In Accounts recording is made of only financial tranaction financial transactions of the
transaction
transactions proprietors

withdrawing of
Which of the following transaction is not of purchase of goods for
11 Purchase of asset on cridit money by proprietor strike by employee
financial character? cash
from business

12 Internal users of accounting information are owners Creditors Management Government

Bank & Financial
13 External user of accounting information are Researchers Government All of the Above
Institutions
mission of
Which of the following is not the limitation of Evidence in legal
14 Based on accounting conventions Incomplete information qualitative
acounting? matters
information
Which of the following is /are subfields of Management
15 financial accounting Cost Accounting All the above
accounting? Accounting
 Ascertaining the cost of
Management
16 Cost Accounting is releted to Recording of financial transactions goods produced or Non of the above
information systems
services rendered
17 Current Assets include Bills Receivable Prepaid Expenses Cash All of the Above
18 Owner of the business is called Proprietor Creditors Debtor Investor
19 Goodwill is one of the --------Assets Tangible intangible Current Liquid
A Person who gives a benefit without receiving
20 money or moneys worth immediately is known as Creditor Debtor Investor Customer
a--------
21 Salary is one of the-----Expenses Capital Revenue Direct Non- Cash
22 Weges is one of the _____Expenses Direct indirect Capital Non-cash
23 Deperaciation is one of the --------Expenses Non-cash Capital Non-Recurring Direct
Arifical Persons Representative
24 Outstanding salary accont belongs to--------- Nominal Accont Real Account
accounts Account
Arifical Persons Representative
25 Capital Account belongs to------ Nominal Accont Real Account
accounts Account
Arifical Persons Representative
26 Drawings accounts Belongs to------ Nominal Accont Real Account
accounts Account
……….Denotes customs or traditions or usage
Accounting
27 which guide the accountant for the preparation of Accounting Conventions Accounting Concepts Accounting Rules
Regulations
accounting statements
money
Based on -------Accounting recordsthe
28 Business entity concept Cost concept measurement Matching Concept
tranactions of financial nature only
concept
According to …………., the fixed assets are
Duel Aspect Revenue
29 recorded at the price at which at which they are Matching Concept Cost concept
Concept Realization concept
acquired and not at the market value .
Base on the Convention of ………..,rules and
parctices and principlesof accounting should be
30 Consistancy full Disclosure conservatism materiallity
continuously observed and applied year after
year

When an entry appears on both the side of the

31 Opening entry Closing entry coumpound entry contra entry
cash of the cash book it is known as--------------

The entry passed in the books of account

transfer the closing balance of ledgers while
32 Opening entry Closing entry coumpound entry contra entry
preparing the final accounts at the end of the
year is known as
The entry passed in the books of account to
transfer the closing balance of ledgers while
33 Opening entry Closing entry coumpound entry contra entry
preparing the final accounts at the end of the
year is known as ---------------
All Transactions pertaining to an acount are
34 Journal Ledger Trial Balance Balance sheet
collected at one place in the---------
…………. Is a Summary of all transactions
35 Balance sheet Trial Balance Ledger Journal
relating to a particular account
 Under which concept 52 weeks or one year has Accounting Period
36 Business entity concept Matching concept Cost Concept
been accepted as the accounting period ? concept

Which of the following account will have a debit Purchase Returens

37 Capital Account Drawing Account Sales Account
side balance? Account
In case the partnership deed does not provide
anything about interest to be paid on -----
38 5% 6% 7% 8%
according to the Partnership Act 1932 it is to be
------- at a rate of :
The partner who takes part in the day to day
39 affairs of the business management of the Sleeping Partner Active Partner Minor Partner Dormant Partner
partnership firm is called:
The partner who contributes capital but does not
takes part in the day to day affairs of the Sleeping Partner Active Partner Minor Partner Nominal Partner
40
business management of the partnership firm is
called:
The partner who is less than 18 years of age in a Sleeping Partner
41 Active Partner Minor Partner Dormant Partner
partnership firm is called:
Under the following method of -------------------
Fluctuating Capital
42 Current Account of partners is required to be Fixed Capital Method Both i & ii None of these
Method
maintained:
The following will be shown in the partner’s Interest on drawings & Share of net profit or
43 Drawings made by the partner All of above
capital account: capital loss
The maximum number of partners in a
44 10 20 15 25
partnership firm is:
The maximum number of partners in a
45 partnership firm carrying on the business of 10 20 15 25
Banking is:
Registration is compulsory for following types of
46 Sole proprietor organization Partnership organization Company All of above
business organizations:
The withdrawal of money or goods by the Goods taken by
47 Transaction Drawings Capital
proprietor from his business is called as: owner
The book of daily record of all transactions is
48 Ledger Journal Account Trial Balance
called as:
Summarized record of all the transactions
49 relating to any particular person, thing, income or Ledger Journal Account Trial Balance
loss is called as:
When an entry is passed it is required to be
50 followed by an explanation of transaction. This Description Narration Account Casting
explanation is called as:
Act of recording the transaction in ledger on the
51 basis of entry made in the original book is called Casting Posting Drawing Carry Forward
as :

Reserve for discount

52 Debts which are irrecoverable are called as : Reserve on doubtful debts Bad debts None of above
on debtors
53 All non-cash transactions are recorded in : Ledger Journals Trial Balance Final Accounts
54 All of them are journals except: Purchase Return Book Sales Book Cash Book Capital Account
55 A ledger is divided into: Debtors’ Ledger Creditors’ Ledger General Ledger All of above
Transfer & Rectification
56 The transaction recorded in journal are: Opening & Closing Entries Adjustment Entries All of above
Entries
When an error is made while passing the entry
57 and it has to be eliminated, the following entry is Opening entry Adjustment entry Rectification entry Transfer entry
passed:
In order to arrive at the correct profit or loss at
the end of the year, some adjustments are
58 Opening entry Adjustment entry Rectification entry Transfer entry
required to be made. Such adjustments are
made by passing:
The assets that are of permanent nature and
59 Current Assets Fixed Assets Floating Assets Fictitious Assets
used in business again & again are called:
The assets that can be seen with our eyes are
60 Current Assets Tangible Assets Intangible Assets Fictitious Assets
called:
The assets that cannot be seen with our eyes
61 Current Assets Tangible Assets Intangible Assets Fictitious Assets
are called:
The intangible assets which do not have any
62 Current Assets Tangible Assets Intangible Assets Fictitious Assets
realizable value are called:
Company engaged
The requirements of Revised Schedule VI do not
63 An Insurance Company Banking Company in generation or All of above
apply to:
supply of electricity
The Ministry of Corporate Affairs specified the
64 format of Schedule VI. The General Instructions A B C D
are given in :
The Ministry of Corporate Affairs specified the
65 format of Schedule VI. The Form of Balance A B C D
Sheet is given in :
The Ministry of Corporate Affairs specified the
66 format of Schedule VI. The Form of Statement of A B C D
Profit and Loss is given in :
The Ministry of Corporate Affairs specified the
67 format of Schedule VI. The Form of Statement of Part I Part II Part III None of the above
Profit and Loss is given in :
In case of any conflict between Accounting Notes to Accounts
68 AS shall prevail Schedule shall prevail Conflict will Prevail
Standards and Schedule shall prevail
The Revised Schedule VI has eliminated the
All mentioned
69 concept of ‘schedule’ and such information is Part I Part II Notes to Accounts
above
now to be furnished in :

The Revised Schedule VI prescribes _________

70 Horizontal Format Vertical Format Anyone of the Two Both.
format for presentation of Balance sheet.

Current & Non- Tangible and

71 All the assets and liabilities are classified into: Fixed and Non-Fixed Short Term & Long Term
Current Intangible
 The Revised Schedule VI prescribes disclosure
72 of number of shares held by each shareholder 10 15 5 6
more than _____% of shares.
A debit balance in the Statement of Profit & Loss Non – Current
73 Non – Current Assets Reserves & Surplus Share Capital
will be disclosed under the head: Liabilities
The term sundry debtors has been replaced with Accounts Amounts
74 Bills Receivables Trade Receivables
the term: Receivable Receivable
Money Received
All mentioned
75 Shareholders’ Funds consists of : Share Capital Reserves & Surplus against Share
above
Warrants
Short – Term Borrowings & Other Current
76 Current Liabilities consists of: Trade Payables All of above
Provisions Liabilities
An operating cycle is the time between the
acquisition of assets for processing & Their
77 realization in cash. Where the normal operating 6 months 12 months 15 months 4 months
cycle cannot be identified, it is assumed to have
a duration of :
The classification mentioned below, Capital
Redemption Reserve, Debenture Redemption Reserves & Surplus
Share Capital under Shareholders'
78 Reserve, Revaluation Reserve, Capital Reserves Non- Current Liabilities under Shareholders' Current Liabilities
Funds
etc. appears in the _________heading of Funds
Balance sheet:

The classification Bonds / Debentures, Term Other Long-term Long –term

Deferred tax liabilities (net
Loans, Deferred Payment Liabilities, Deposits, Long-term Borrowings under Non- Liabilities under provisions under
79 ) under Non-Current
Loans and Advances etc. will appear under the Current Liabilities Non-Current Non-Current
Liabilities
_________ heading of Balance Sheet: Liabilities Liabilities

From Financial
Borrowings shall be further sub-classified into With Interest &
80 Long-term & Short-term Secured & Unsecured Institutions &
------------- as per Revised Schedule VI: Without Interest
Others

The classification Loans repayable on demand,

Short-term Short-term
Loans & advances from related parties, Deposits, Trade Payables under Current Other Current Liabilities
81 Provisions under borrowings under
Other Loans and Advances etc. will appear Liabilities under Current Liabilities
Current Liabilities Current Liabilities
under the ----------------heading of Balance Sheet:

The assets Land, Buildings, Plant & Equipment, Tangible Assets Capital Work – in – Fixed Assets held
82 Intangible Assets
Furniture & Fixture, Vehicles will come under: Progress for sale

The assets Goodwill, Trademarks, Patents & Capital Work – in – Fixed Assets held
83 Copyrights, Intellectual Property Rights will come Tangible Assets Intangible Assets
Progress for sale
under:

Add to P &L and balance Add to P &L and

Less from P &L and
Give two effects of the following, Insurance Less from P &L and balance
84 sheet asset side
balance sheet balance sheet
premium of 800 is prepaid. sheet asset side liability side liability side
 Add to P &L and Less from P &L
Give two effects of the following, Insurance Less from P &L and balance Add to P &L and balance
85 balance sheet and balance sheet
premium of 800 is outstanding. sheet asset side sheet asset side
liability side liability side
P &L debit side and P &L credit side
Give two effects of the following, Insurance claim P &L debit side and balance sheet P &L credit side and
86 balance sheet and balance sheet
receivable asset side balance sheet asset side
liability side liability side

Trading account Trading account

Give two effects of the following, Effect of closing
87 Trading account credit side Balance sheet asset side debit side & Balance credit & Balance
stock in Trial Balance
sheet asset side sheet asset side

Give two effects of the following, Effect of closing Trading ac credit side & BS asset Trading account debit Trading ac dedit side Trading account
88
stock in adjustment entry. side side & BS asset side credit side

Give two effects of the following, Bills receivable Less from bills payable & add to Add to BR & less from Less from BR & add Add to BR & less
89 debtors debtors to debtors from debtors
dishonored
Give two effects of the following, Provision for tax Balance sheet
90 Credit of P & L Debit side of P & L BS Asset side
in trial balance liability side
After reducing all
Directly on the debtors
91 We calculate RDD on debtors after: Reducing bad debts from debtors adjustments on At a given %
given in trial balance
debtors
Deferred Revenue
92 Preliminary expenses are Capital Expenditure Revenue All of above
Expenditure
When revaluation of asset results in decrease in
93 P & L credit side P & L Debit side Less from asset Both ii & iii
value of asset the effect will be
Balances of
94 Balance sheet is prepared to ascertain Profit & Loss Financial Position Errors of accounts
accounts
95 Bank overdraft is a Current liability Contingent liability Current assets Unsecured Loan
Return outward appearing in the trial balance is
96 Sales Purchases Return ineard closing stock
deducted from
97 Unearned income account is An asset A liability An expense An Income
98 Ledger folio in the jounal is filled at the time of journalising balancing posting casting
Posting refers to the process of transferring general ledger accounts source documents to journal to source
99 jounal to general ledger accounts
information from to journal journal documents
on the proper side
on the debit side of on the crebit side of
of two accounts
100 Posting means recording of the transaction in any two accounts account related to the account related to
related to the
transaction the transaction
transaction