11th Grade > Accountancy
THEORY BASE OF ACCOUNTING MCQs
Total Questions : 30
| Page 2 of 3 pages
Answer: Option C. -> Full Disclosure concept
:
C
Full disclosure principle is relevant to materiality concept. It requires that all material information has to be disclosed in the financial statements either on the face of the financial statements or in the notes to the financial statements.
:
C
Full disclosure principle is relevant to materiality concept. It requires that all material information has to be disclosed in the financial statements either on the face of the financial statements or in the notes to the financial statements.
Answer: Option B. -> Going concern concept
:
B
The going concern concept assumes that the entity will continue running for a foreseeable future & is expected not to curtail its present scale and continue tooperate at least at the existing level.
:
B
The going concern concept assumes that the entity will continue running for a foreseeable future & is expected not to curtail its present scale and continue tooperate at least at the existing level.
Answer: Option B. -> Salaries expense & pension obligations payable to the employees
:
B
According to the money measurement concept, any transaction which can be measured in monetary value and are relevant to business transactions, will be recorded and anything otherwise will be left out of the records.
:
B
According to the money measurement concept, any transaction which can be measured in monetary value and are relevant to business transactions, will be recorded and anything otherwise will be left out of the records.
Answer: Option B. -> When Transaction occurs
:
B
The concept in accrual basis of accounting is that accounting transactions should be recorded in the accounting periods when they actually occur i.e. when the transactions occur, rather than in the periods when there are cash flows associated with them.
:
B
The concept in accrual basis of accounting is that accounting transactions should be recorded in the accounting periods when they actually occur i.e. when the transactions occur, rather than in the periods when there are cash flows associated with them.
Answer: Option C. -> Cost Principle or Historical Cost Concept
:
C
According to Cost Principle or Historical Cost Concept, all assets are recorded in the books of accounts at their purchase price, which includes cost of acquisition, transportation and installation and not at its market price.
:
C
According to Cost Principle or Historical Cost Concept, all assets are recorded in the books of accounts at their purchase price, which includes cost of acquisition, transportation and installation and not at its market price.
Question 16. Mr. Raghav has rented a house. Ground Floor of the house is used for his business i.e. Grocery Shop & First floor of this house is used for his residence. The total rent for the house for a particular month was Rs 1,00,000. How much of this shall be recorded in books as an expense for the business?
Answer: Option C. -> Rs 50,000
:
C
According to business entity concept, Business is separate legal entity from its owner. Thus, Rs 50,000 shall be recorded as expense for the business.
:
C
According to business entity concept, Business is separate legal entity from its owner. Thus, Rs 50,000 shall be recorded as expense for the business.
Question 17. N.P. Jewelers received an order to supply gold ornaments worth Rs 5,00,000. They supplied ornaments worth Rs 2,00,000 up to the year ending 31st March 2018 and rest of the ornaments were supplied in April 2018. What shall be the revenue of N.P. Jewelers for the year ending 31st March 2018?
Answer: Option C. -> Rs 2,00,000
:
C
The revenue for the year 2018for N.P. Jeweler is Rs 2,00,000. Merely getting an order is not considered as revenue until the goods have been delivered.
:
C
The revenue for the year 2018for N.P. Jeweler is Rs 2,00,000. Merely getting an order is not considered as revenue until the goods have been delivered.
Answer: Option D. -> Assets & Liabilities both
:
D
Basic accounting equation is Assets= Capital + Liabilities, hence when stock of Rs 10,000 has been bought on credit, creditors & stock are increased which is liability and asset respectively, therefore option D is correct.
:
D
Basic accounting equation is Assets= Capital + Liabilities, hence when stock of Rs 10,000 has been bought on credit, creditors & stock are increased which is liability and asset respectively, therefore option D is correct.
Answer: Option C. -> Money measurement concept
:
C
According to the money measurement concept, any transaction which cannot be measured in monetary value will not be recorded and hence human resources whose monetory value cannot be determined will not appear in the balance sheet.
:
C
According to the money measurement concept, any transaction which cannot be measured in monetary value will not be recorded and hence human resources whose monetory value cannot be determined will not appear in the balance sheet.
Answer: Option B. -> Creditors on the liability side
:
B
If the balance sheet of Super Bazaar is prepared on March 31, 2018, Fast Food Products will be shown as creditors on the liabilities side of the balance sheet.
:
B
If the balance sheet of Super Bazaar is prepared on March 31, 2018, Fast Food Products will be shown as creditors on the liabilities side of the balance sheet.
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