Accounting Control and Financial Management

by

  • Working capital ratio is otherwise called as
    • Liquidity Ratio
    • Quick Ratio
    • Current Ratio
    • Acid test ratio

Ans. Current Ratio

  • Items given on the debit side of the trial balance are shown either in
    • Debit side of the trading account
    • Debit side of the profit and loss account
    • Assets side of the balance sheet
    • All of the above

Ans. All of the above

  • Sundry creditor is shown in which side of the balance sheet
    • Asset side
    • Liability side
    • Both
    • None

Ans. Liability side

  • The capital which is needed for the purchase of running the business is
    • Fixed capital
    • Working capital
    • Floating capital
    • Trading capital

Ans. Working capital

  • The capital that is needed for the purchase of asset is called as
    • Fixed capital
    • Working capital
    • Positive capital
    • Trading capital

Ans. Positive capital

  • Cases undecided by the law of court, Bills discounted before maturity are the types of
    • Long term liability
    • Short term liability
    • Contingent liability
    • None of the above

Ans. Contingent liability

  • Debit balance of profit and loss account, preliminary expenses are types of
    • Intangible asset
    • Tangible asset
    • Wasting asset
    • Fictitious asset

Ans. Fictitious  asset

  • The assets like mines, oil-wells are categorized in
    • Liquid Asset
    • Fixed Asset
    • Floating Asset
    • Wasting Asset

Ans. Wasting Asset

  • Current Asset is also called as
    • Liquid Asset
    • Fixed Asset
    • Floating Asset
    • Wasting Asset

Ans. Floating Asset

  • Where the account is settled on the basis of order of liquidity or order of permanency is
    • Profit & Loss Account
    • Trading Account
    • Manufacturing Account
    • Balance Sheet

Ans. Balance Sheet

  • The account that is not shown in the balance sheet is
    • Personal Account
    • Real account
    • Nominal Account
    • All the above

Ans. Nominal Account

  • Asset is shown in which side of the balance sheet
    • Right
    • Left
    • Middle
    • Not found

Ans. Right

  • Liability is shown in which side of the balance sheet
    • Right
    • Left
    • Middle
    • Any where

Ans. Left

  • The account is not found in the debit side of the profit and loss account is
    • Commission
    • Repair and Maintenance
    • Advertisement expenses
    • Royalties

Ans. Royalties

  • Depreciation is found in
    • Debit side of Profit and loss acccount
    • Asset side of the Balance sheet
    • Both
    • None

Ans. Both

  • Closing stock is found in
    • Credit side of the trading account
    • Asset side of the Balance sheet
    • Both
    • None

Ans. Both

  • In trading account, expenses like custom duty, fuel power, factory expenses are
    • Credited
    • Debited
    • Both
    • None

Ans. Debited

  • Direct wages are shown in
    • Debit side of trading account
    • Credit side of trading account
    • Debit side of Profit and Loss account
    • Credit side of Profit and Loss account

Ans. Debit side of trading account

  • Opening stock is always shown in
    • Credit side of trading account
    • Debit side of trading account
    • Both
    • None

Ans. Debit side of trading account

  • A statement that summarizes the date recorded in the journal as well as in the ledger is called as
    • Ledger
    • Journal
    • Trial balance
    • Balance Sheet

Ans. Trial balance

  • The transferring entries from the journal to the ledger is called as
    • Journalising
    • Ledger Folio
    • Ledger Posting
    • Folio

Ans. Ledger Posting

  • Folio is found in
    • Ledger
    • Journal
    • Trial Balance
    • Balance Sheet

Ans. Ledger

  • Ledger Folio is mainly seen in
    • Ledger
    • Journal
    • Trial Balance
    • Balance Sheet

Ans. Journal

  • In nominal account, incomes and gains are to be
    • Debited
    • Credited
    • Both
    • None

Ans. Credited

  • In Real account, the statement that is true is
    • Debit – what’s comes in
    • Credit – what goes out
    • Both
    • None

Ans. Both

  • When transactions occur in salary account, insurance account, commission account, then the type of account that is debited or credited is
    • Personal Account
    • Real Account
    • Nominal Account
    • All

Ans. Nominal Account

  • If transaction occur through trade mark, copy right then the account that is debited or credited is
    • Representative Personal Account
    • Tangible Real Account
    • Intangible Real Account
    • Nominal Account

Ans. Tangible Real Account

  • In personal account, the person who is receiving benefit is given
    • Debit
    • Credit
    • Both
    • None

Ans. Debit

  • If debit and credit occurs in the name of a club, then that type of personal account is called as
    • Natural Person’s Personal Account
    • Artificial Person’s Personal Account
    • Representative Personal Account
    • All

Ans. Artificial Person’s Personal Account

  • Transactions relating to expenses and incomes comes under
    • Personal Account
    • Real Account
    • Nominal Account
    • None

Ans. Nominal Account

  • The transaction account that relate to property and assets come under
    • Personal Account
    • Real Account
    • Nominal Account
    • All types of Account

Ans. Real Account

  • Accounting Standard that reveals disclosure of accounting policies is
    • IAS – 1
    • IAS – 2
    • IAS – 3
    • IAS – 4

Ans. IAS – 1

  • Accounting convention that is also called as Doctrine of Prudence is
    • Convention of Consistency
    • Convention of Materiality
    • Convention of Conservatism
    • Convention of Full Disclosure

Ans. Convention of Conservatism

  • Revenue is recognized when it is realized is the accounting concept relates to
    • Cost Concept
    • Matching Concept
    • Realization Concept
    • Accural Concept

Ans. Accural Concept

  • Revenue of a period should be matched with its cost’s as it reflects the accounting concept of
    • Dual Aspect Concept
    • Cost Concept
    • Matching Concept
    • Realization Concept

Ans. Matching Concept

  • The first step in accounting cycle is
    • Classifying
    • Recording
    • Summarizing
    • Analyzing

Ans. Recording

  • Books of original entry is called as
      • Ledger
      • Trial balance
      • Journal
    • Balance sheet

Ans. Journal

  • Double entry system is developed by
      • Canadian Institute of Chartered Accountants
      • International Accounting standard committee
      • Lucas Pacioli
    • Confederation of Indian Industry

Ans. Lucas Pacioli

  • The statement of assets and liabilities of the business on a particular date is called as
      • Ledger
      • Trial balance
      • Journal
    • Balance sheet

Ans. Balance sheet

  • A business concern is separate and distinct from its owners is the accounting principle based on
    • Business Entity Concept
    • Going Concern Concept
    • Accounting Period Concept
    • Money Measurement Concept

Ans. Business Entity Concept

  • Organization used to calculate depreciation and consider historical cost over market price for its asset as it reflects the accounting concept of
      • Business Entity Concept
      • Going Concern Concept
      • Accounting Period Concept
    • Money Measurement Concept

Ans. Going Concern Concept

  • Organization calculate profit and loss of its performance every year as it is a fundamental accounting concept relates to
      • Business Entity Concept
      • Going Concern Concept
      • Accounting Period Concept
    • Money Measurement Concept

Ans. Accounting Period Concept

  • Quality of a product though important, cannot be converted into monetary forms. The accounting concept that reveals on it is
      • Business Entity Concept
      • Going Concern Concept
      • Accounting Period Concept
    • Money Measurement Concept

Ans. Money Measurement Concept

  • Give in one hand and take on another is the accounting concept reflects
      • Dual Aspect Concept
      • Cost Concept
      • Matching Concept
    • Realization Concept

Ans. Dual Aspect Concept

  • Organisation always recorded the historical cost of its fixed asset to make the calculation more objective oriented. It is the accounting concept of
      • Dual Aspect Concept
      • Cost Concept
      • Matching Concept
    • Realization Concept

Ans. Cost Concept

Comments are closed.