Basic Accounting 9

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Objective Questions and Answers of MBA: Basic Accounting 9

Subject: Objective Questions and Answers of MBA: Basic Accounting 9

Part 9: Objective questions and answers of Basic Accounting


Q1. A statement containing the various ledgers balances on particular date

a) Compound Journal

b) Ledger

c) Trial balance

d) None of these


Q2. The full disclosure principle, as adopted by the accounting profession, is best described by which of the following?

a) All information related to an entity's business and operating objectives is required to be disclosed in the financial statements.

b) Information about each account balance appearing in the financial statements is to be included in the notes to the financial statements.

c) Enough information should be disclosed in the financial statements so a person wishing to invest in the stock of the company can make a profitable decision.

d) Disclosure of any financial facts significant enough to influence the judgment of an informed reader


Q3. Investment in Bonds should be disclosed on the balance sheet.

a) On liability side of balance sheet

b) On Assets side of balance sheet

c) On both side of Balance sheet

d) None of these


Q4. Accounting principles are

a) As definite as principles of physics and chemistry

b) Unlike principles of physical sciences.

c) Verifiable through observations and records

d) Thoughts of accountant


Q5. Financial account provide summary of:

a) Asset

b) Liability

c) Accounts


Q6. Inventory accounts should be classified in which section of a balance sheet?

a) Current assets

b) Investments

c) Property, plant, and equipment

d) Intangible assets


Q7. In accounting all business transaction are recorded as having

a) Single aspect

b) Dual aspect

c) Triple aspect

d) None of these


Q8. Which of the following would not be included on a balance sheet?

a) Accounts payable

b) Accounts receivable

c) Sales

d) Cash


Q9. The cost concept records the figures at

a) Market values

b) Actual amount paid

c) Actual amount or market values whichever is less.

d) MRP maximum retail price


Q10. The term Management Accounting was first used in

a) 1910

b) 1939

c) 1950

d) 1960


Q11. The word accounting can be classified in to:

a) Financial accounting and management accounting

b) Financial accounting and cost accounting

c) Financial accounting, management accounting and cost accounting

d) Cannot be classified


Q12. Which of the following is true for: – "In accounts recording is done of_ _ _ _ _"

a) only financial transaction

b) only non- financial transaction

c) Both

d) Personal transaction of Proprietor


Q13. A company's telephone bill consisting of a Rs.200 monthly base amount, plus long distance charges, would be classified as a:

a) Variable cost

b) Committed fixed cost

c) Direct cost

d) Semi variable cost


Q14. In manufacturing a product, prime costs are:

a) Raw materials and manufacturing overhead

b) Indirect materials and manufacturing overhead

c) Indirect labour and manufacturing overhead

d) Direct materials and direct labour


Q15. Salary paid to factory manager is an item of:

a) Prime Cost

b) Factory Overhead

c) Selling overhead

d) Office overhead


Q16. Aggregate of cost of goods sold and selling and distribution overheads is known as:

a) Total Cost

b) Office Cost

c) Cost of sales

d) Selling overhead


Q17. Which one of the following would not be classified as manufacturing overhead?

a) Indirect labour

b) Direct materials

c) Insurance on factory building

d) Indirect materials


Q18. Lubricants, used regularly in a production process, are classified as

a) Miscellaneous expense

b) Direct materials

c) Indirect materials

d) Immaterial items


Q19. Accounting principles are ______________ which are adopted by the accountant universally while recording accounting transaction.

a) Rules of action or conduct

b) Which u can change as per accountant

c) Which keep changing every year

d) None of these


Q20. 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


Part 9: Objective questions and answers of Basic Accounting


Q1. Answer c


Q2. Answer d


Q3. Answer b


Q4. Answer b


Q5. Answer c


Q6. Answer a


Q7. Answer b


Q8. Answer c


Q9. Answer b


Q10. Answer c


Q11. Answer c


Q12. Answer a


Q13. Answer d


Q14. Answer d


Q15. Answer b


Q16. Answer a


Q17. Answer b


Q18. Answer c


Q19. Answer c


Q20. Answer a & b

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