Multiple Choice questions
Class: F. Y. B. Com.
Subject: Financial Accounting Sem I
1. Accounting Concepts, Conventions and Principles and an Overview of Emerging
Trends in Accounting
1 In accounting, everything is recorded in terms of money.
a Business Entity
b Dual Aspect
c Money Measurement
d Periodicity Concept
For accounting purposes the "business" is treated as a separate entity (Individual) from
2
the proprietor (s).
a Money Measurement
b Business Entity
c Periodicity Concept
d Matching Concept
3 As per this concept, every business transaction has a dual effect.
a Dual Aspect
b Historical Cost Concept
c Materiality Concept
d Periodicity Concept
4 An accounting period is the interval of time at the end.
a Business Entity
b Dual Aspect
c Money Measurement
d Periodicity Concept
5 Profit should be accounted for only when it is actually realised.
a Matching Concept
b Dual Aspect
c Money Measurement
d Realisation Concept
6 It is necessary to match “revenues” of the period with the “expenses” of that period.
a Accrual / Cash Concept
b Matching Concept
c Dual Aspect
d Money Measurement
7 The revenues & expenses relating to that particular accounting period only are
considered.
a Accrual / Cash Concept
b Dual Aspect
c Money Measurement
d Matching Concept
8 Accounting from one accounting period to another should on the same basis.
a Accrual / Cash Concept
b Dual Aspect
c Money Measurement
d Consistency Concept
9 Anticipate no profit but provide for all possible losses.
a Conservatism Principle
b Money Measurement
c Dual Aspect
d Matching Concept
10 All material items must be properly reported in financial statements.
a Materiality Concept
b Money Measurement
c Dual Aspect
d Matching Concept
11 It is assumed that the business concern will continue for a fairly long time
a Matching Concept
b Going Concern Concept
c Conservatism Principle
d Dual Aspect
12 The asset must be shown in the books at cost of purchase.
a Dual Aspect
b Matching Concept
c Historical Cost Concept
d Conservatism Principle
The process of adjusting the financial statements of a company to show the real
13 financial position of the company during inflationary period.
a Creative Accounting
b Inflation Accounting
c Environmental Accounting
d Human Resource Accounting
A process whereby accountants use their knowledge of accounting rules to manipulate
12 the figures reported in the accounts of a business.
a Forensic Accounting
b Environmental Accounting
c Human Resource Accounting
d Creative Accounting
It is an important tool for understanding the role played by the natural environment in
13 the economy
a Environmental Accounting
b Forensic Accounting
c Human Resource Accounting
d Creative Accounting
14 Human Assets is considered in
a Environmental Accounting
b Forensic Accounting
c Human Resource Accounting
d Creative Accounting
15 It is a form of investigative accounting which examines financial records
a Forensic Accounting
b Human Resource Accounting
c Creative Accounting
d Environmental Accounting
2. Piecemeal Distribution of Cash
1 Creditors, Outstanding Expenses are example of
a Outside liablities
b Inside Liabilities
c Personal Liabilties
d Non of the above
2 Partner Loan, Partner Capital are example of
a Outside liablities
b Inside Liabilities
c Personal Liabilties
d Non of the above
3 Surplus Capital Method is also known as
a Excess Capital Method
b Maximum Loss Mehtod
c Notional Loss Method
d Non of the above
4 General Reserve is shared among the partners in
a Capital Ratio
b Profit sharing Ratio
c Deficency Ratio
d Non of the above
5 Outside liablities are paid in the ratio
a Capital Ratio
b Profit sharing Ratio
c Deficency Ratio
d Ratio of their liabilities
6 Estimated realisation expenses are kept aside
a First Realisation
b Last Realisation
c Next Realisation
d Non of the above
7 There are __________ types of Secured Loan
a 1
b 2
c 3
d 4
8 Dissolution of firm means
a Breakdown of Partnership
b Admission of Partner
c Retirement of a partner
d Death of a Partner
9 The Meaning of Picemeal is
a At a time
b All at once
c Part by Part
d Non of the above
10 Realisation Expenses are
a Expenses paid on Realisation
b General Expenses
c Recuring Expenses
d Non of the above
11 Contingent liability is
a Non of the below
b Permanent Liabilties
c Temporary Liabilties
d Which may or may not be a Liability
12 Surplus Capital Method is also known as
a Maximum Loss Mehtod
b Highest Relative Capital Method
c Notional Loss Method
d Deficency Capital Method
13 Government dues is a
a Secured Liability
b Internal Liability
c Universal Liability
d Preferential Liability
14 Partners Loan is Paid
a After Creditors
b After Bank Overdarft
c After Partners Mrs. Loan
d Before Partners Capital
3. Single Entry System
1 In double entry system:
a Only one aspect of a transaction is recorded
b Both aspect of a transaction is recorded
c No aspect of a transaction is recorded
d None of these
2 In Single entry mostly:
a Personal aspects of transaction are recorded
b Nominal aspects of transaction are recorded
c Real aspects of transaction are recorded
d All of the above
3 Statements of assets & liabilities prepared under single entry system is called
a Balance sheet
b Profit & loss statement
c Statement of affairs
d Income Statement
4 Normally single entry system is suitable for:
a Small scale business
b Large scale business
c Both of them
d None of them
5 More accurate profit & loss account can be prepared in:
a Modern accounting system
b Single entry system
c Double entry system
d None of them
6 Opening capital is obtained by preparing:
a Debtors account
b Creditors account
c Opening statement of affairs
d Cash account
7 Credit sale is determined by preparing:
a Sales Account
b Creditors Account
c Debtors Account
d None of these
8 Credit purchase is determined by preparing :
a Purchases Account
b Debtors Account
c Creditors Account
d Cash Account
9 Closing balance of cash is obtained by preparing :
a Balance Sheet
b Debtors Account
c Creditors Account
d Cash Account
10 Trial balance is not obtained in:
a Double Entry System
b Modern Entry System
c Single Entry System
d None of these
11 In single entry two-fold aspect of transaction are not recorded, so it is:
a Complete and Scientific
b Incomplete and Unscientific
c Complete and Unscientific
d Incomplete and Scientific
12 Single entry systems are maintained by
a Company
b Income tax authorities
c Government
d Sole trader
13 Single entry system of book keeping is
a Simple
b Unauthorized by tax authorities
c Unscientific
d All of these
14 Bills Receivable received during the year can be ascertained by preparing
a Bills Receivable A/c
b Bills Payable A/c
c Sundry Debtors A/c
d Sundry Creditors A/c
15 Bills Payable received during the year can be ascertained by preparing
a Bills Receivable A/c
b Bills Payable A/c
c Sundry Debtors A/c
d Sundry Creditors A/c
16 Bills Payable Dishonour is ______ to Bills Payable Account
a Added
b Deducted
c Debited
d Credited
4. Introduction to Goods and Services Tax laws and Accounting
1 GST Stands for
a Goods and Supply Tax
b Government Sales Tax
c Goods and Services Tax
d General Sales Tax
2 In India GST became effective from
a 1st April, 2017
b 1st January, 2017
c 1st July, 2017
d 1st March, 2017
3 In India GST came effective from July 1st, 2017 India has chosen
_______ model of dual – GST.
a USA
b UK
c Canadian
d China
4 GST is a _______ based tax on consumption of goods and services.
a Duration
b Destination
c Dividend
d Development
Destiny
5 5. Indian GST model has _________rate structure.
a 3
b 4
c 5
d 6
6 What does “I” stands for in IGST?
a International
b Internal
c Integrated
d Intra
7 7. How many types of taxes will be in Indian GST?
a 2
b 3
c 4
d 5
8 8. First announcement to introduce GST by 2010, is made in Year
a 2000
b 2004
c 2006
d 2008
2010
9 9. Which of the following tax is not subsumed in GST
a VAT
b Stamp Duty
c Entry Tax
d Entertainment Tax
10 10. What are the taxes levied on an Intra-State Supply?
a CGST
b SGST
c CGST and SGST
d IGST
11 11. What is the maximum rate prescribed under CGST?
a 12%
b 20%
c 28%
d 18%
12. Which of the following taxes will be levied on Imports of goods and
12 services?
a CGST
b SGST
c IGST
d Exempt
13 13. Maximum rate prescribed under UTGST/SGST?
a 14%
b 20%
c 28%
d 30%
14 14. How will the goods and services be classified under GST regime?
a SAC/HSN Code
b HSN Code
c SAC Code
d GST Code
e None of above
15 15. HSN Code Stands for
a Home Shopping Network
b Harmonised System of Nomenclature
c Harmonised System Number
d Home State Number
