Computerized Accounting Software Set 1 MCQs

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.