Basic concepts of Financial Accounting by TRILOCHAN SAI

star goldstar goldstar goldstar goldstar gold greyFemaleMale
30 Questions - Developed by: TRILOCHAN SAI - Developed on: - 1.850 taken - User Rating: 4.5 of 5.0 - 6 Votes

  • 1
    Depreciation is a process of?
    Allocation and valuation
  • 2
    X Ltd., purchased goods for ` 5 lakh and sold 9/10th of the value of goods for ` 6 lakh. Net expenses during the year were ` 25, 000. The company reported its net profit as ` 75,000. Which of the following concept is violated by the company?
    Periodic Matching
  • 3
    Payment received from Debtor ....
    Decreases the Total Assets
    Increases the Total Liabilities
    Increases the Total Assets
    Decreases the liquidity position of the company
    Results in no change in the Total Assets
  • 4
    The process of writing off intangible assets is?
  • 5
    Is shown on the liability side because of?
    Cost Concept
    Conservatism Concept
    Accrual Concept
    Business Entity Concept
    Duality Concept
  • 6
    Which of the following is not a unsecured loan in Balance sheet of a Company?
    Creation of Sinking Funds
    Loans and advances from others
    Short term loans from Banks
    Acceptance of Fixed Deposits
  • 7
    Any profit prior to incorporation may be
    Credited to Reserve capital A/c
    Credited to Capital Reserve A/c
    None of the above
    Debited to Goodwill A/c
    Debited to Suspense A/c
  • 8
    A and B are partners sharing profits in the ratio 1:2. C is admitted and the new profit sharing ratio is 1:2:3. Sacrificing ratio is
  • 9
    ) What would be the cost of goods sold from the following details–
    Opening Stock ` 4,000
    Sales ` 45,000
    Direct Expenses ` 5,000
    Indirect Expenses ` 6,000
    Closing Stock ` 2,000
    Gross Profit ` 5,000
  • 10
    Independent Branch meant when separate account are maintained by
    Corporate office
    No separate account is prepared
    Head Office
  • 11
    Which of the following item of cost is not a part of inventory
    Inward freight
    Normal wastages
    Storage expenses
    Stock of previous accounting year
    Customs duties
  • 12
    The Accounting Standard on ‘the Effect of Changes in foreign exchange rates’ is
    AS -12
    AS -15
    AS -11
    AS -18
    AS -16
  • 13
    Any journal entry can be derived by looking at the corresponding ledgers.
    Yes if provided with additional information
  • 14
    An increase in current assets results in
    Decrease in cash flow from operations.
    Increase in cash flow from operations.
    None of the above.
    Increase in cash flow from operations, if the operating result for the period is profit.
  • 15
    Pre-paid insurance premium should be classified as a
    None of the above
    Fictitious asset
    Current asset
    Non-current asset
  • 16
    As per Schedule VI to the Companies Act,1956 unclaimed dividends are to be shown as
    Current liabilities
    Secured loans
    Reserves and surplus
  • 17
    Realisation account is opened at the time of
    Death of a partner
    In all the above situations
    Dissolution of the Firm
    Admission of a new partner
    Retirement of a partner
  • 18
    In the hire purchase system interest charged by vendor is calculated on the basis of
    Hire Purchase Price
    Outstanding Cash Price
    None of the above
    Instalment amount
  • 19
    Bad debts are apportioned among departments in the proportion of
    Cost of sales of each department
    Sales of each department
    Number of units sold by each department
  • 20
    The following account has a credit balance
    Purchase Returns A/c
    Purchase A/c
    Plant and Equipment A/c
    Sales Returns A'c
  • 21
    Actuarial valuation relates to
    Insurance Company
    Electric Supply Company
    None of the above
    Banking Company
  • 22
    A non-performing asset is generally referred to
    A defaulted borrower of a bank
    A defaulted borrower of a company other than banks
    A fixed asset whose lifetime has ended and do not have scrap value
    A failed machinery or equipment that still has certain lifetime and scrap value
    A current asset which has already generated revenue
  • 23
    In the case of non-profit organisation donations received by the organisation are reflected in
    Receipts and Payments Account
    None of the above
    Capital Account
    Income and Expenditure Account
  • 24
    Bank Reconciliation Statement is
    A sub-division of Journal
    A separate statement
    Part of Cash Book
    Ledger Account
  • 25
    Dual concept in accounting results in the following equation
    Total Assets = Total Liability
    Capital + Liability = Assets
    Revenue = Expenses
    Capital + Profit = Assets
  • 26
    Under which of the following heads is claims against a Company not acknowledged as debts shown
    Current Liability
    Unsecured Loan
    Current Assets
    Contingent Liability
  • 27
    Which of the following will be the highest amount
    Subscribed Capital
    Authorised Capital
    Reserve Capital
    Paid-up Capital
  • 28
    In partnership when a new Partner brings his share of Goodwill in cash, then the amount of such Goodwill will be credited to Partners’ capitals as per the following ratio
    Goddwill Ratio
    Old Profit sharing ratio
    Gain ratio
    Sacrifice ratio
  • 29
    The cost of a Fixed Assets of a business has to be written off over its
    Physical Life
    Estimated Economic Life
    Accounting Life
    Natural Life
  • 30
    The Receipts and Payments Account generally begins with
    Credit Balance
    Debit Balance
    Depends on the previous years' balances
    Both Debit and Credit Balance

Comments page 0 of 0
Click here to add a comment
There are currently 0 comments to display.