Basic Accounting 10

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Objective Questions and Answers of MBA: Basic Accounting 10

Subject: Objective Questions and Answers of MBA: Basic Accounting 10

Part 10: Objective questions and answers of Basic Accounting


Q1. Material concept tell about

a) Disclosure of loss

b) Disclosure of profit

c) Disclosure of all information which are important for investor

d) Disclosure of all information which are important for management


Q2. Which financial statement represents the accounting equation ASSETS = LIABILITIES + OWNER'S EQUITY

a) Income Statement

b) Cash Flow Statement

c) Balance Sheet

d) Fund Flow Statement


Q3. The purpose of financial accounts is reporting to

a) Management only

b) Government only

c) Investor only

d) All of these


Q4. What comes in is to be debited, what goes out is to be credited.

a) Rules of Personal

b) Rules of Real

c) Rules of Nominal

d) All of these


Q5. Amortization of intangible Asset Such as Goodwill which has indefinite life is an example of accounting concept

a) Conservatism Concept

b) Continuity Concept

c) Realisation Concept

d) Measurement Concept


Q6. The main object of cost accounting is:

a) To record day to day transactions of the business

b) To reveal managerial efficiency

c) To ascertain true cost of products and services

d) To determine tender price


Q7. An accounting that deals with the accounting and reporting of information to management regarding the detail information is

a) Financial accounting

b) Management accounting

c) Cost accounting

d) Real Accounting


Q8. Management accounting concentrates on ______________

a) Opening books of account

b) Preparation of financial statements

c) Control of business activities

d) None of these


Q9. Double entry system is used in which type of accounting

a) Cost

b) Financial

c) Management

d) All


Q10. Reserve for doubtful debts appearing in the trial balance should be: credited to P & L a/c

a) Shown as liability side in balance sheet

b) Reduced from related asset in the balance sheet

c) Both a and b

d) Both a and c


Q11. Using "lower of cost and net realizable value (Market Value)" for the purpose of inventory valuation is the implementation of which of the following concepts?

a) The going concern concept

b) The separate entity concept

c) The prudence concept

d) Matching concept


Q12. Cost accounting aims at ascertain ______________ of product

a) Cost

b) Net profit

c) Gross profit

d) Selling price


Q13. Cost accounting is applied to:

a) Public undertakings only

b) Large business enterprise only

c) Small business concerns only

d) Manufacturing and service concern


Q14. Financial accounting use data

a) Projected data

b) External data only

c) Historic data

d) Manager data only


Q15. Payment of salary is recorded by:

a) Debiting salary a/c; crediting cash a/c

b) Debiting cash a/c; crediting salary a/c

c) Debiting employee a/c; crediting cash a/c

d) Debiting employee a/c; crediting salary a/c


Q16. ______________ cost refers to those cost which have already been incurred and cannot be altered by any decision in the future.

a) Opportunity cost

b) Sunk Cost

c) Incremental cost

d) Decremental cost


Q17. The nature of financial accounting is

a) Historical

b) Forward looking

c) Analytical

d) Social


Q18. Bad debt amount should be credited to

a) Debtors account

b) Bad debts account

c) Sales account

d) Creditors account


Q19. Which of the following is not an internal user of management information?

a) Creditor

b) Department manager

c) Controller

d) Treasurer


Q20. Which type of asset class includes those assets which have only definite use and become valueless when the yield is over?

a) Fixed asset

b) Current asset

c) Fictitious asset

d) Wasting asset


Part 10: Objective questions and answers of Basic Accounting


Q1. Answer c


Q2. Answer c


Q3. Answer d


Q4. Answer c


Q5. Answer a


Q6. Answer c


Q7. Answer b


Q8. Answer c


Q9. Answer b


Q10. Answer d


Q11. Answer c


Q12. Answer a


Q13. Answer d


Q14. Answer c


Q15. Answer a


Q16. Answer b


Q17. Answer a


Q18. Answer a


Q19. Answer a


Q20. Answer d

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