Reference no: EM131128464

Question No: 1
A summarized record of transactions related to individuals or things is called a/an ___________.

1.  Account
2.  Voucher
3.  Journal
4.  Trial balance

Question No: 2
An informal accounting statement that lists the ledger account balances at a point in time and compares the total of debit balances with the total of credit balances is known as:

1. Income Statement
2.  Balance Sheet
3.  Trial Balance
4.  Cash Book

Question No: 3
Cost of asset Rs. 1,00,000
Life of asset 5 years
Depreciation for each year Rs. 15,000
Sale price after 5 years Rs.50,000
Written down value of asset at the end of 5th year Rs.25,000
Profit or loss on disposal of fixed assets ?

1.  Rs.25, 000 profit
2.  Rs. 75,000 loss
3.  Rs. 15,000 profit
4.  Rs. 1, 00,000 profit

Question No: 4
A debit balance in the Bank Statement indicates:

1.  Cash at bank
2.  Bank overdraft
3.  Overpayment to creditors
4.  Cash in hand

Question No: 5
It is supposed that on 31-12-2007, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 5 % of the sundry debtors are doubtful. It is also suppose that during the year 2008 actual bad debts were Rs. 1,600. What entry will pass to create provision for doubtful debts?

1.  Profit & Loss a/c Rs. 2,000 (Dr) & Provision for doubtful debts a/c Rs. 2,000 (Cr)
2.  Provision for doubtful debts a/c Rs. 2,000 (Dr) & Profit & Loss a/c Rs. 2,000 (Cr)
3.  Provision for doubtful debts a/c Rs. 1,600 (Dr) & Profit & Loss a/c Rs. 1,600 (Cr)
4.  Profit & Loss a/c Rs. 1,600 (Dr) & Provision for doubtful debts a/c Rs. 1,600 (Cr)

Question No: 6
Which of the following account(s) will be affected, while rectifying the error of an amount Rs.200 received from Mr."P" wrongly credited to Mr."Q's" account?

1.  Only Cash Account
2.  Only P's account
3. Only Q's account
4.  Both of Mr. P's & Mr.Q's Account

Question No: 7
Consider the following data and identify the amount which will be deducted from Sundry Debtors in Balance Sheet.
Particulars Rs.
Bad debts (from trial balance) 1,600
Provision for doubtful debts (old) 2,000
Current year's provision (new) 1,000

1.  Rs. 600
2.  Rs. 1,000
3.  Rs. 2,000
4.  Rs. 2,600

Question No: 8
General office expenses are charged to which of the following head:

1.  Administrative expenses
2.  Marketing expenses
3.  Selling expenses
4.  Financial expenses

Question No: 9
Which of the following account is affected from the Drawings of cash in sole-proprietorship business?

1. Capital account
2. Shareholder account
3.  Liability account
4.  Expense account

Question No: 10
Which of the following can offer its share to general public at large?

1.  A private limited company 
2.  A listed company
3.  A partnership firm
4.  A trust

Question No: 11
Merchandise on hand at either the beginning or end of the reporting period is called__________.

1.  Raw material 
2.  Cost of good sold
3.  Work in process
4. Inventory

Question No: 12
How dividend declared is treated in the Balance Sheet of the company?

1.  Provision
2.  Current liability
3.  Reserves and surplus
4.  Current assets

Question No: 13
Which of the following is NOT a cash inflow?

1.  Sale of fixed asset
2.  Issue of debentures
3. Cash from business operation 
4.  Purchase of fixed asset

Question No: 14
An example of financing activities in the context of cash flow statement is:

1.  Capital expenditures on purchase of fixed assets
2.  Long-term deposit
3.  Financial charges paid
4.  Dividend paid

Question No: 15.
Rs.
Gross profit 50,000
Operating profit 42,000
Sales 250, 000
What is the amount of operating expenses ?

1.  Rs. 8,000
2.  Rs. 92,000
3.  Rs. 62,500
4.  Rs. 300,000

Question No: 16
Receipts from debtors appear on the ___________ side of the Debtors control account.

1.  Left side or credit
2.  Left side or debit 
3. Right side or debit 
4.  Right side or credit

Question No: 17
We usually allow the customer to deduct a certain amount from the invoice value for prompt payment. In doing so we are granting a:

1.  Commission
2.  Allowance
3.  Discount
4.  Rebate

Question No: 18
Which of the following is known as an asset account?

1.  Gains
2.  Prepaid insurance
3.  Unearned revenue
4.  Accounts payable

Question No: 19
Mr. A & B entered into a partnership with an equal investment and equal share in profit or loss. Markup on capital of Mr. A is Rs.2,500 and of Mr. B is Rs.2,800. The net income for the year is Rs.95,000. What will be the amount of distributable profit?

1.  Rs.89,700
2.  Rs.92,500
3.  Rs.95,000
4.  Rs.100,300

Question No: 20
Mr. A & B entered into a partnership with an equal investment and equal share in profit or loss. Markup on capital of Mr. A is Rs.2,000 and markup on drawings of Mr. B is Rs.3,000. The net income for the year is Rs.50,000. What will be the profit share of Mr. A?

1.  Rs.22,500
2.  Rs.25,500
3. Rs.27,500
4.  Rs.55,000

Question No: 21
Which of the following is quoted company?

1.  Private Limited Company
2.  Public Limited Company
3.  Listed company
4.  Non Listed Company

Question No: 22
Which of the following items of balance sheet are useful in evaluating a company's liquidity?

1.  Current assets and other assets
2.  Current liabilities and current assets
3.  Current liabilities and plant and equipment
4.  Non current liabilities and other assets

Question No: 23
Which of the following is an example of liability in a business enterprise?

1.  Accounts payable
2.  Accounts receivable
3.  Commission received
4. Commission paid

Question No: 24
Which of the following is/are TRUE with respect to the rules of Debit & Credit?

1.  Increase in capital is Credit
2.  Decrease in capital is Debit
3.  Increase in expense is Debit
4.  All of the given options

Question No: 25
Which of the following is/are NOT the example of intangible assets?

1.  Copyright
2.  Goodwill 
3.  Patent
4.  Land