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This set of Computerized Accounting Software Multiple Choice Questions & Answers (MCQs) focuses on Computerized Accounting Software Set 1
Q1 | Which accounting concept satisfy the valuation criteria
- Going concern, Realization, Cost
- Going concern, Cost, Dual aspect
- Cost, Dual aspect, Conservatism
- Realization, Conservatism, Going concern.
Q2 | A trader has made a sale of Rs.75,500 out of which cash sales amounted to Rs.25,500. He showed trade receivables on 31-3-2014 at Rs.25,500. Which concept is followed by him?
- Going concern
- Cost
- Accrual
- Money measurement
Q3 | In which of the following cases, accounting estimates are needed?
- Employs benefit schemes
- Impairment of losses
- Inventory obsolescence
- All of the above
Q4 | Diwali advance given to an employee is
- Revenue Expenditure
- Capital Expenditure
- Deferred Revenue Expenditure
- Not an Expenditure
Q5 | A firm has reported a profit of Rs.1,47,000 for the year ended 31-3-2014 after taking into consideration the following items.(i) The cost of an asset Rs.23,000 has been taken as an expense_new_line_(ii) The firm anticipated a profit of Rs.12,000 on the sale of an old furniture_new_line_(iii) Salary of Rs.7,000 outstanding for the year has not been taken into account._new_line_(iv) An asset of Rs.85,000 was purchased for Rs.75,000 and was recorded in the books at Rs.85,000._new_line_What is the correct amount of profit to be reported in the books?
- Rs.1,47,000
- Rs. 1,51,000
- Rs.1,63,000
- Rs.1,41,000
Q6 | The process of recording financial data upto trial balance is
- Book keeping
- Classifying
- Summarizing
- Analyzing
Q7 | Rohit carrying on real estate business sold a piece of land for Rs.4,00,00,000 (cost Rs.3,50,00,000) then the type of receipt is ______ nature and profit on sale is
- Capital & transferred to capital reserve
- Revenue & transferred to P & L a/c c)
- Capital & transferred to P & L a/c
- Revenue & tr
Q8 | In income measurement & recognition of assets & liabilities which of the following concepts goes together ?
- Periodicity, Accural, Matching
- Cost, Accural, matching
- Going concern, cost, Realization
- Going concern, Periodicity, Reliability
Q9 | Interpretation means
- Explanation of meaning and significance of the data in Financial Statements.
- Concerned with preparation and presentation of classified data
- Systematic analysis of recorded data
- Methodical classification of data given in Financial Statements.
Q10 | A trader purchases goods for Rs. 2500000, of these 70% of goods were sold during the year. At the end of 31st December 2009, the market value of such goods were Rs. 500000. But the trader recorded in his books for Rs. 750000. Which of the following concept is violated?
- Money measurement
- Conservatism
- Consistency
- None of these
Q11 | Which of the following is wrong?
- All real and personal accounts are transferred to balance sheet
- Nominal accounts are transferred to P & L account
- Each account is opened separately in ledger
- Rent is a personal account, outstanding rent is nominal account
Q12 | What is root cause for financial accounting
- Stewardship accounting
- Social accounting
- Management accounting
- Human resource accounting
Q13 | If nothing is given in the financial statements about the three accountingassumptions then it is to be treated as it
- Is assumed that it is not followed
- Is assumed to be followed
- Is assumed to be followed to some extent
- None of the above
Q14 | The proprietor of the business is treated as creditor for the capital introduced by him dueto_____ concept.
- Money measurement
- Cost
- Entity
- Dual aspect
Q15 | Fixed assets are held by business for _____
- Converting into cash
- Generating revenue
- Resale
- None of the above
Q16 | Which accounting concept specifies the practice of crediting closing stock to the tradingaccount?
- Cost
- Realization
- Going concern
- Matching
Q17 | Amount spent to increasing the earning capacity is a ______ expenditure
- Capital
- Revenue
- Deferred revenue
- Capital Loss
Q18 | Change in the capital A/c of proprietor may occur due to ______
- Profit earned
- Loss incurred
- Capital Introduced
- All of the above
Q19 | Consistency with reference to application of accounting procedures means
- All companies in the same Industry should use identical accounting procedures
- Income & assets have not been overstated
- Accounting methods & procedures shall be followed uniform basis year after year
- Any accounting method can be followed as per convenience
Q20 | If one of the cars purchased by a car dealer is used for business purpose, instead of resale,then it should be recorded by_____
- Dr Drawing A/c & Cr Purchases A/c
- Dr Office Expenses A/c & Cr Motor Car A/c
- Dr Motor Car A/c & Cr Purchases A/c
- Dr Motor Car & Cr Sales A/c
Q21 | If wages are paid for construction of business premises ______ A/c is credited and _A/c isdebited.
- Wages, Cash
- Premises, Cash
- Cash, Wages
- Cash, Premises
Q22 | Human resources will not appear in the balance sheet according to ______concept.
- Accrual
- Going concern
- Money measurement concept
- None
Q23 | Provision for discount on debtors is calculated on the amount of debtors.
- Before deducting provision for doubtful debts.
- After deducting provision for doubtful debts.
- Before deducting actual debts and provision for doubtful debts.
- After adding actual bad and doubtful debts.
Q24 | Which of the following is not a Real Account?
- Cash A/c
- Investments A/c
- Outstanding rent A/c
- Purchases A/c
Q25 | Which of the following is incorrect?
- Good will intangible asset
- Sundry debtors - current asset
- Loose tools tangible fixed asset
- Outstanding expenses -current asset.