11th Grade > Accountancy
THEORY BASE OF ACCOUNTING MCQs
Total Questions : 30
| Page 3 of 3 pages
Answer: Option A. -> Rs 10,00,000
:
A
Value of assets shall be total of goods purchased(stock), furniture, plant & machinery & cash on hand i.e. Rs 10,00,000.
:
A
Value of assets shall be total of goods purchased(stock), furniture, plant & machinery & cash on hand i.e. Rs 10,00,000.
Answer: Option B. -> Salary payable to employees
:
B
Out of all of the above, only salary payable to employees is not an Asset. All the other are the assets of the business.
:
B
Out of all of the above, only salary payable to employees is not an Asset. All the other are the assets of the business.
Answer: Option B. -> Company B
:
B
Information is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements. Hence the amount of Rs 1,00,000 is material for company B only.
:
B
Information is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements. Hence the amount of Rs 1,00,000 is material for company B only.
Answer: Option D. -> All of the above
:
D
The dual aspect concept states that every business transaction requires recordation in two different accounts. This concept is the basis of double entry accounting, which is required by all accounting frameworks in order to produce reliable financial statements. The concept is derived from the accounting equation, which states that:
Assets = Capital + Liabilities
:
D
The dual aspect concept states that every business transaction requires recordation in two different accounts. This concept is the basis of double entry accounting, which is required by all accounting frameworks in order to produce reliable financial statements. The concept is derived from the accounting equation, which states that:
Assets = Capital + Liabilities
Answer: Option D. -> Both A & B
:
D
Amount invested by the owner in the firm is known as capital. It may be brought in the form of cash or assets by the owner.
:
D
Amount invested by the owner in the firm is known as capital. It may be brought in the form of cash or assets by the owner.
Answer: Option C. -> Convention of Conservatism
:
C
According to Convention of conservatism, you should record expenses and liabilities as soon as possible, but to record revenues and assets only when you are sure that they will occur.
:
C
According to Convention of conservatism, you should record expenses and liabilities as soon as possible, but to record revenues and assets only when you are sure that they will occur.
Answer: Option A. -> Matching
:
A
As per matching concept, all the expenses must be recorded in the same period as associated revenue.
:
A
As per matching concept, all the expenses must be recorded in the same period as associated revenue.
Answer: Option A. -> Amount of interest Mr. X has promised to pay in the next year
:
A
Cash accounting is an accounting method in which receipts are recorded during the period they are received, and expenses are recorded in the period in which they are actually paid. Hence, out of the above interest promised to paid by Mr. X shall be recorded in the year of payment & not in this year.
:
A
Cash accounting is an accounting method in which receipts are recorded during the period they are received, and expenses are recorded in the period in which they are actually paid. Hence, out of the above interest promised to paid by Mr. X shall be recorded in the year of payment & not in this year.
Answer: Option D. -> Conservatism Principle
:
D
Anticipate no profits and provide for all possible losses. This is essence of Conservatism Principle.
:
D
Anticipate no profits and provide for all possible losses. This is essence of Conservatism Principle.
Answer: Option D. -> Calendar Year & Financial Year
:
D
Year that begins from 1st of January and ends on 31st of December, is known as Calendar Year. The year that begins from 1st of April and ends on 31st of March of the following year, is known as Financial Year.
:
D
Year that begins from 1st of January and ends on 31st of December, is known as Calendar Year. The year that begins from 1st of April and ends on 31st of March of the following year, is known as Financial Year.
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