Accounting Control and Financial Management
by Madan Mohan
- 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
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