1) The root of financial accounting system is a) Social accounting b) Stewardship accounting c) Management accounting d) Responsibility accounting 2) Which one of the following is not a main objective of accounting? a) Systematic recording of transactions b) Solving tax disputes with tax authorities c) Ascertainment of the profitability of the business d) Ascertainment of the financial position of the business 3) Which one of the following is not a branch of accounting? a) Financial accounting b) Management accounting c) Human resources accounting d) None of the above. 4) Financial position of a business is ascertained on the basis of a) Journal b) Trial balance c) Balance Sheet d) Ledger 5) Who is considered to be the internal user of the financial information? a) Creditor b) Employee c) Customer d) Government 6) The business is liable to the proprietor of the business in respect of capital introduced by the person according to a) Business entity concept b) Dual aspect concept c) Money measurement concept d) Cost concept 7) The concept which assumes that a business will last indefinitely is a) Conservatism b) Business Entity c) Going concern d) Periodicity 8) GAAPs are: a) None of these b) Generally Accepted Accounting Policies c) Generally Accepted Accounting Principles d) Generally Accepted Accounting Provisions 9) The rule of stock valuation ‘cost price or realisable value’ whichever is lower is based on the accounting principle of: a) Conservatism b) Accrual c) Materiality d) Money measurement 10) In India, Accounting Standards are issued by a) The Institute of Chartered Accountants of India b) Reserve Bank of India c) The Cost and Management Accountants of India d) Supreme Court of India 11) Accounting equation signifies a) Assets of a business are equal to the total of capital and liabilities b) Capital of a business is equal to assets c) Liabilities of a business are equal to assets d) Capital of a business is equal to liabilities 12) A firm has assets of Rs 1,00,000 and the external liabilities of Rs 60,000. Its capital would be a) Rs 1,60,000 b) Rs 60,000 c) Rs 1,00,000 d) Rs 40,000 13) The incorrect accounting equation is a) Assets = Liabilities + Capital b) Assets = Capital + Liabilities c) Liabilities = Assets + Capital d) Capital = Assets – Liabilities 14) Accounting equation is formed based on the accounting principle of a) Dual aspect b) Consistency c) Going concern d) Accrual 15) Real account deals with a) Individual persons b) Expenses and losses c) Assets d) Incomes and gains 16) Which one of the following is representative personal account? a) Building A/c b) Outstanding salary A/c c) Mahesh A/c d) Balan & Co 17) Prepaid rent is a a) Nominal A/c b) Personal A/c c) Real A/c d) Representative personal A/c 18) Withdrawal of cash from business by the proprietor should be credited to a) Drawings A/c b) Cash A/c c) Capital A/c d) Purchases A/c 19) In double entry system of book keeping, every business transaction affects a) Minimum of two accounts b) Same account on two different dates c) Two sides of the same account d) Minimum three accounts 20) Main objective of preparing ledger account is to a) Know the balance of each ledger account b) Ascertain the financial position c) Ascertain the profit or loss d) Ascertain the profit or loss and the financial position 21) The process of transferring the debit and credit items from journal to ledger accounts is called a) Casting b) Balancing c) Posting d) Journalising 22) J.F means a) Ledger page number b) Journal page number c) Voucher number d) Order number 23) The process of finding the net amount from the totals of debit and credit columns in a ledger is known as a) Casting b) Journalising c) Posting d) Balancing 24) If the total of the debit side of an account exceeds the total of its credit side, it means a) Credit balance b) Debit balance c) Nil balance d) Debit and credit balance 25) The amount brought into the business by the proprietor should be credited to a) Cash account b) Drawings account c) Capital account d) Suspense account 26) Trial balance is a a) Statement b) Account c) Ledger d) Journal 27) After the preparation of ledger, the next step is the preparation of a) Trading account b) Trial balance c) Journal d) Profit and loss account 28) The trial balance contains the balances of a) Only personal accounts b) Only real accounts c) Only nominal accounts d) All accounts 29) Which of the following is/are the objective(s) of preparing trial balance? a) Examining arithmetical accuracy of accounts b) Serving as the summary of all the ledger accounts c) Helping in the preparation of final accounts d) All the above 30) A list which contains balances of accounts to know whether the debit and credit balances are matched is a) Journal b) Day book c) Trial balance d) Balance sheet 31) Which of the following method(s) can be used for preparing trial balance? a) Balance method b) Total method c) Total and Balance method d) All the above 32) While preparing the trial balance, the accountant finds that the total of the credit column is short by ` 200. This difference will be a) Adjusted to any of the debit balance b) Adjusted to any of the credit balance c) (a) Debited to suspense account d) Credited to suspense account 33) The account which has a debit balance and is shown in the debit column of the trial balance is a) Sundry creditors account b) Drawings account c) Bills payable account d) Capital account 34) The difference of totals of both debit and credit side of trial balance is transferred to: a) Trading account b) Difference account c) Suspense account d) Miscellaneous account 35) Trial balance is prepared: a) At the end of the year b) On a particular date c) For a year d) None of the above

+1 Acc I Midterm (EM)

by
Print
Embed

Leaderboard

Visual style

Options

Switch template

Continue editing: ?