Basic Accounting 7

COEP
Lets Crack Online Exam

Objective Questions and Answers of MBA: Basic Accounting 7

Subject: Objective Questions and Answers of MBA: Basic Accounting 7

Part 7: Objective questions and answers of Basic Accounting

 

Q1. Which of the following is time span into which the total life of a business is divided for the purpose of preparing financial statements?

a) Fiscal year

b) Calendar year

c) Accounting period

d) Accrual period

 

Q2. The system of recording transaction based on dual aspect concept is called

a) Double account system

b) Double entry system

c) Single entry system

d) None of these

 

Q3. Rules of action or conduct adopted by the accountants universally while recording accounting transaction

a) Accounting convention

b) Accounting concepts

c) Accounting principles

d) None of these

 

Q4. Basic assumptions or conditions upon which the science of accounting is based.

a) Accounting convention

b) Accounting concepts

c) Accounting principles

d) None of these.

 

Q5. The system of recording based on dual aspect concept is called:

a) Double account system

b) Double entry system

c) Single entry system

d) All the above

 

Q6. ______________ is a person or item for which cost may be ascertained.

a) Cost unit

b) Cost centre

c) Cost object

d) Cost estimation

 

Q7. According to which concept business is treated as a unit apart from owner

a) Dual concept

b) Divider concept

c) Entity concept

d) Landlord concept

 

Q8. Which of the following should not be called sales?

a) Good sold on credit

b) Office fixtures sold

c) Sale of item previously included in purchase

d) Good sold for cash

 

Q9. Outstanding salaries are shown as:

a) Added to Salaries while preparing P & La/c

b) Shown in liability side of Balance sheet under current Liability

c) Above (a) & (b)

d) None of the above

 

Q10. Which of the following account balance will be shown on debit side of Trial Balance?

a) Outstanding expenses

b) Cash a/c

c) Short term loan

d) creditors

 

Q11. The practice of appending notes regarding contingent liabilities in accounting statements is in pursuance to:

a) Convention of consistency

b) Money measurement concept

c) Convention of conservatism

d) Convention of disclosure

 

Q12. Identify which is wrong rule

a) Nominal account- debit all expenses & losses

b) Real account- credit what comes in

c) Nominal account- credit all incomes & gains

d) Personal account- debit the receiver

 

Q13. ______________ cost will still be incurred although a plant is shut down temporarily.

a) Cost of raw material

b) Advertising

c) Depreciation

d) Carriage

 

Q14. Variable cost per unit

a) Remains fixed

b) Fluctuates with volume of production

c) Varies in consideration with the volume of sales

d) None of the above

 

Q15. Liabilities in balance sheet include the following items

a) Long term loan

b) Short term loan

c) Owner’s fund

d) All of these

 

Q16. The going concern concept assumes that

a) The entity continue running for foreseeable future

b) The entity continue running until the end of accounting period

c) The entity will close its operating in 10 years

d) The entity can't be liquidated

 

Q17. Which expenses is a Capital Nature?

a) Depreciation

b) Wages

c) Salary

d) Stationary

 

Q18. Accounting principles are generally based on

a) Practicability

b) Subjectivity

c) Convenience in recording

d) None of these

 

Q19. In case of a debt becoming bad, the amount should be credited to

a) Debtors Accounts

b) Bad debts a/c

c) Sales a/c

 

Q20. A system in which accounting entries are made on the basis of amounts having become due for payment or receipt is called

a) Cash concept

b) Accrual concept

c) Matching concept

d) On-going concept

 

Part 7: Objective questions and answers of Basic Accounting

 

Q1. Answer c

 

Q2. Answer b

 

Q3. Answer c

 

Q4. Answer b

 

Q5. Answer b

 

Q6. Answer b

 

Q7. Answer c

 

Q8. Answer b

 

Q9. Answer c

 

Q10. Answer d

 

Q11. Answer d

 

Q12. Answer b

 

Q13. Answer d

 

Q14. Answer b

 

Q15. Answer d

 

Q16. Answer a

 

Q17. Answer a

 

Q18. Answer a

 

Q19. Answer a

 

Q20. Answer b

Be the first to comment

Leave a Reply