1. The dual aspect concept of recording business transactions is called

Double entry system

Double account system

Single entry system

Hybrid system

2. The basic function of financial accounting is

To classify and record all business transactions

To interpret financial data

To assist management

To ascertain the progress of business

3. Which of the following will not be recorded in the books of accounts?

Cash withdrawn by the owner from the business

Rent paid

Gift received

Cartage

4. The amount of salary paid to Anil should be debited to

Anil's account

Salary account

Cash account

Wages account

5. Goods returned to supplier should be credited to

Supplier's account

Purchases returns account

Cash account

Purchases account

6. Received 1,980 against the amount due Rs. 2,000 with discount allowed Rs. 20. The amount of discount allowed should be debited to

Discount account

Sales account

Personal account

Profit and Loss account

7. In case of bad debts, its amount should be credited to

Debtor's account

Bad debts account

Sales account

Profit and Loss account

8. Which of the following is not a personal account

Rent prepaid account

Rohan's account

ABC Ltd. account

Bad debts account

9. Double entry system of book-keeping means

Entry in two sets of books

Entry for two aspects of a transaction

Entry at two places

Entry on two sides of an account

10. Writing a brief description about the transaction in Particulars column in Journal is called

Posting

Narration

Entry

Journalising

11. Purchase of furniture is debited to

Purchases account

Goods account

Furniture account

Cash account

12. When bad debts are recovered, they should be credited to

Bad debts recovered account

Bad debts account

Debtor's account

Cash account

13. The liabilities of a firm are Rs. 60,000; the claims of the owner are Rs. 1,40,000. The total assets will be

Rs. 60,000

Rs. 1,40,000

Rs. 2,00,000

Rs. 80,000

14. Which of the following accounts is not a real account?

Salary account

Furniture account

Building account

Cash account

15. Purchases Journal is used for recording

Credit purchases of goods

All purchases of goods

Cash purchases of goods

All cash purchases

16. According to which concept is the entity of business treated separate from its owner?

Matching concept

Dual aspect concept

Business entity concept

Realisation concept

17. Which of the following transactions is not entered in the Cash Book?

Cash sales

Rent paid

Cash discount

Trade discount

18. Buying and selling activity is called

Commerce

Industry

Trade

Business

19. When both the debit and credit aspects of a transaction are recorded in the Cash Book, it is called

Opening entry

Double entry

Closing entry

Contra entry

20. The main aim of preparing a Trial Balance is

To prepare final accounts

To know the financial position of business

To test the accuracy of posting

To find out gross profit

21. Journal Proper is meant for recording

Credit purchases of fixed assets

Cash purchases of fixed assets

Return of goods purchased

All such transactions for which no special journal is kept

22. Bank Reconciliation Statement is a

Ledger account

Part of Cash Book with bank column

Statement which reconciles the balances as per Pass book and Cash Book

Pass book statement

23. If payment of a Bill of Exchange is made before the due date, it is called

Retiring the Bill

Honouring the Bill

Endorsing the Bill

Retaining the Bill

24. Maintenance charges of a fixed asset is a

Capital expenditure

Revenue expenditure

Revenue loss

Deferred revenue expenditure

25. A basis of accounting according to which accounts are prepared for cash received and cash paid is called

Cash basis

Accrual basis

Mixed basis

Dual basis

26. Goods worth Rs. 2,000 received back by the company were taken in stock, but no entry was made. What type of error is this?

Commission

Principle

Omission

Compensatory

27. Nominal accounts are related to

Liabilities only

Expenses, incomes, losses and gains

Assets only

Expenses and losses only

28. Patents are examples of

Fixed assets

Current assets

Intangible assets

Liquid assets

29. Outstanding income is shown in the Balance Sheet as

Fixed assets

Current assets

Short-term liability

Long-term liability

30. Which of the following expenses are shown on the debit side of Profit and Loss account?

Carriage outward

Wages and salaries

Carriage inwards

Goods returned

31. 'Wages and Salaries' are shown in

Profit and Loss account

Trading account

Balance Sheet

Profit and Loss Appropriation account

32. Preliminary expenses are an example of a

Capital expenditure

Revenue expenditure

Deferred revenue expenditure

Development expenditure

33. An example of fictitious asset is

Preliminary expenses

Discount allowed

Prepaid rent

All of the above

34. Current liabilities are liabilities payable

After one year

Within one year

Within five years

After five years

35. Overcasting of Purchases Journal would affect

Sales account

Purchases account

Supplier's account and Purchases account

Supplier's account

36. Which of the following is a deferred revenue expenditure?

Expenditure on formation of a company

Depreciation on fixed assets

Expenditure incurred for buying goods for resale

Interest on loan taken for business

37. Rs. 10,00,000 spent in developing a new area for an estate is a

Capital loss

Capital expenditure

Revenue expenditure

Revenue loss

38. Shiva started business with Rs. 2,00,000. He purchased goods on credit from Girish for Rs. 25,000. His total business assets will be

Rs. 2,25,000

Rs. 2,00,000

Rs. 1,75,000

Rs. 1,50,000

39. 'Income received in advance' appearing in the Trial Balance will be shown in

Trading account

Profit and Loss account

Assets side of Balance Sheet

Liabilities side of Balance Sheet

40. Outstanding salaries are shown in Balance Sheet as a

Current asset

Liability

Fixed asset

Contingent liability

41. A loan of Rs. 10,000 was made on September 1 per annum. No interest was paid till December 31. The accrued interest will be

Rs. 150

Rs. 200

Rs. 500

Rs. 600

42. Opening stock: Rs. 15,000; Purchase of goods :Rs. 82,000; Direct expenses Rs. 9,100; Indirect expenses Rs. 10,500; and Closing stock Rs. 18,000. The cost of goods sold will be

Rs. 1,06,100

Rs. 1,16,600

Rs. 88,100

Rs. 98,100

43. A manager gets 10% commission on net profits after charging such commission. Before charging the commission the profits were Rs. 55,000. The commission will be

Rs. 5,575

Rs. 5,000

Rs. 5,500

Rs. 6,000

44. Bad debts are Rs. 400; new provision for bad debts is Rs. 1,850 and old provision for bad debts is Rs. 60. The amount to be debited to Profit and Loss account in this context will be

Rs. 2,190

Rs. 2,250

Rs. 460

Rs. 1,850

45. Accounts are divided into

Personal accounts

Real accounts

Nominal accounts

All of the above

46. The concept of costs and revenues comparison is

Matching concept

Consistency concept

Materiality concept

Going concern concept

47. Sale of old newspaper will be recorded in

Liabilities side of Balance Sheet

Trading account

Profit and Loss account

Assets side of Balance Sheet

48. Which of the following is false?

Assets Liabilities Capital

Liabilities =Assets Capital

Capital =Assets Expenses

Capital =Assets Liabilities

49. Amount realised from the sale of scrap is adjusted in the

Cost of goods sold

Cost of goods produced

Profit and Loss account

Trading account

50. Manufacturing account is prepared to ascertain

Cost of goods sold

Cost of goods produced

Cost of goods purchased

Cost of work-in-progress