Account Q1

Q1. "The firm must be treated as financially separate and distinct from its' owner(s)". This rule is known as:

(a) The accounting equation

(b) The dual aspect concept

(c) The business entity concept

(d) The balance sheet

Q2. A firm buys stock for £100 by cheque and intends to sell it for £200, so the double-entry should be:

(a) Debit bank £100, Credit Stock £100

(b) Credit bank £200, debit stock £200

(c) Debit Purchases £100, Credit Sales £200

(d) Debit Purchases £100, Credit Bank £100

Q3. The system whereby we make two records for each transaction is known as

(a) Balance Sheet accounting

(b) Double-entry

(c) Dual aspect

(d) Management accounting

3 'The accounting e This rule states th That's right. The b The balance shee

0 0 2 0 0 1

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Q4. Which of the following is a liability?

(a) Creditors

(b) Debtors

(c) Stock

(d) Vehicles

Q5. A 'trade debtor' of AB ltd. can best be described as:

(a) A person or firm who bought goods from AB Ltd on credit and has not yet paid.

(b) A person or firm who borrowed money from AB Ltd in the form of a loan.

(c) A person or firm who sold goods on credit to AB Ltd and has not been paid.

(d) A person or firm who made a loan to AB Ltd

Q6. The word 'credit' in book-keeping means:

(a) Add value onto an account.

(b) Deduct value from an account.

1 Yes. These are s

These are custom Stock ow ned by

Vehicles are 'f ixe

2 0

0 0

0 1

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0

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2 0 0 0 0 1

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(c) Left-hand entry in an account.

(d) Right-hand entry in an account.

Q7. Which of the following is an example of 'revenue expenditure'?

(a) The buying of a delivery van

(b) Paying for a five-year lease on shop premises in city centre

(c) Putting petrol in a delivery van

(d) Re-paying a loan which was taken out three years ago.

Q8. A firm pays £50 from its cash till to its bank account. The double-entry should be:

(a) Debit Cash £50, Credit Bank £50

(b) Debit Cash £25, Credit Bank £25

(c) Credit Cash £50, Credit Bank £50

(d) Credit Cash £50, Debit Bank £50

Q9. Which one of the following BEST describes 'purchases'?

4 It means this in ba This is incorrect i

Right idea, but w r Well done. A cred

0 0 0

2 0 1

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0 0 0

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3 The benefits obta The 'f ive year' bit A full tank of petr

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0 0 false

4 'Crediting' the ban A transaction of £ You must alw ays Correct. In book-k

0 0 0 2

0 1 In book-keeping, ' In book-keeping, '

0 0 0 false

(a) Items bought

(b) Goods bought for re-sale

(c) Goods paid for

(d) Fixed assets bought

Q10. G.Simkins sends back stock to J.J. Fabrics (a supplier), having originally purchased it on credit. J.J. Fabrics issued a credit note for the value of these goods. In Simkins' books, The double-entry for this transaction should be:

(Select one answer)

(a) Debit: J.J. Fabrics; credit Purchases

(b) Debit: purchases; credit J.J. Fabrics

(c) Debit J.J. Fabrics; credit purchases returns

(d) Debit purchases returns; credit J.J. Fabrics.

For the last five questions there may be more than one correct answer. Each question carries a total of four marks.

Q11. Which of the following groups might be interested in the accounts of a business?

(Select one or more answers)

(a) Shareholders

2 'Items bought' cou Yes. Goods boug 'Purchases' can i

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0 0 0 1

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0 0 false

3 Returns are kept This is the w rong That's right. He ow This is the w rong

0 0 2 0 0 1

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(b) The public

(c) Employees

(d) The Government

Q12. Which of the following are 'financial accounting' activities?

(Select one or more answers)

(a) Finding errors in the accounts and making the appropriate corrections.

(b) Preparing a cash budget for the next six months.

(c) Analysing the payroll records to determine the ratio of normal pay to overtime pay.

(d) Drawing up a 'Profit and Loss Account' for the year just ended.

1. The accounting profession can be divided into three major categories; specifically, the practice of public accounting, private accounting, and governmental accounting. A somewhat unique and important service

of public accountants is:

a. Financial accounting.b. Managerial accounting.c. Auditing.d. Cost accounting.

2. The primary private sector agency that oversees external financial reporting standards is the:

a. Financial Accounting Standards Board.b. Federal Bureau of Investigation.c. General Accounting Office.d. Internal Revenue Service.

1,2,3,4 a - Shareholders b - Various press c - Employees w i d - Various Gove

1 1 1 1

-1 1 There are many r Al of these group /learn/business/e

0 0 0 false

1,4 a - This is 'f inanc b - This is a 'man c - This is a 'man d - This is 'f inanc

1 1 1 1 -1 1

Financial account Management acc w ork01.htm 0 0 0

false

3. Which of the following equations properly represents a derivation of the fundamental accounting equation?

a. Assets + liabilities = owner's equity.b. Assets = owner's equity.c. Cash = assets.d. Assets - liabilities = owner's equity.

4. Wilson Company owns land which cost $100,000. If a "quick sale" of the land was necessary to generate cash, the company feels it would receive only $80,000. The company continues to report the asset on the balance sheet at $100,000. This is justified under which of the following concepts?

a. The historical-cost principle.b. The value is tied to objective and verifiable past transactions.c. Neither of the above.d. Both "a" and "b".

5. Retained earnings will change over time because of several factors. Which of the following factors would explain an increase in retained earnings?

a. Net loss.b. Net income.c. Dividends.d. Investments by stockholders.

6. Which of these items would be accounted for as an expense?

a. Repayment of a bank loan.b. Dividends to stockholders.c. The purchase of land.d. Payment of the current period's rent.

7. Which of the following transactions would have no impact on stockholders' equity?

a. Purchase of land from the proceeds of a bank loan.b. Dividends to stockholders.c. Net loss.d. Investments of cash by stockholders.

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

a. Accounts receivable.b. Accounts payable.c. Sales.d. Cash.

Q.1 The value of z in the system of equations 3x + y+2z=3, 2x-3y-z= -3 and x+

2y+ z=4 is __________.

A) Convention of Materiality

B) Convention of Conservatism

C) Convention of Consistency

D) Convention of Full Disclosure

Q.2 Match the following UNIX commands: Set A 1. cd 2. pwd 3. tail 4. cp Set B a. prints the last 10 lines of the text file b. to copy files C. changing the working directory d. printing the working directory

A) Recording

B) Classifying

C) Communicating

D) Analyzing

Q.3 EBCDIC stands for

A) Debit the Receiver

B) Debit what comes in

C) Credit what goes out

D) Credit the Giver

Q.4 Match the following with respect to hashing functions: Set A 1. Separate Chaining 2. Open Addressing

3. Linear Probing 4. Quadratic Probing Set B a. In this scheme, if collision occurs, alternative buckets are tried unt

A) Surplus

B) Equity

C) Income

D) Profit

Q.5 Space required to store one list element is obtained by invoking which C library function

A) debit, overdraft

B) credit, overdraft

C) overdraft, debit

D) overdraft, credit

Q.6 ______ is a specification that takes into account the syntactic properties of a language

A) Return Outwards

B) Purchase Allowance

C) Both A) and B)

D) None of the above

Q.7 A Bill before it is accepted by the drawee is known as:

A) Summary

B) Draft

C) Plan

D) Acceptance

Q.8 ___ means communicating an intended meaning

A) Relevance

B) Understandability

C) Reliability

D) Comparability

Q.9 The value of x in the following system of equations, 2x+y+4z=12, 4x+11y-z=33, 8x- 3y+2z=20 (use matrix inversion method) is _______.

A) Financial Accounting

B) Management Accounting

C) Cost Accounting

D) All of the above

Q.10 Given dy / dx = x2 - y with y(0) = 1, the value of y(0.1)= ____ . Use R. K method of order four.


B) Income Tax Accounting

C) Social Responsibility Accounting


Q.11 Match the following: SET A 1 Primary Storage 2, Secondary Storage 3. Tertiary Storage SET B a. Computer memory b. Archival Data C. Online Disk

A) AS-6

B) AS-9

C) AS-10

D) AS- 11

Q.12 The French word â€œAssezâ€ means:�

A) Enough

B) More

C) Further

D) New

Q.13 The French word â€œLierâ€ means:�

A) To bind

B) To give

C) Both A) and B)


Q.14 The ___ is an arithmetic check of the double entry system

A) Posting

B) Narration

C) Trial Balance

D) Journal

Q.15 ____ will have a separate account for each supplier, and it will show the transactions entered in to with the suppliers

A) General ledger

B) Debtor ledger

C) Creditors ledger


Q.16 A grammar is defined as 1. Set of non terminal symbols 2. Set of terminal symbols 3. Start symbol 4. Finite set Of Productions

A) Verifier

B) Sorter

C) Interpolator

D) Re-producer

Q.17 Advantages Of circular linked list arc 1. Every node is accessible from a given node 2. Deletion operation is most efficient 3. Concatenation and splitting become more efficient

A) Recording

B) Classifying

C) Summarizing

D) Dealing with financial transactions

Q.18 According to ___, it is assumed that the business will exist for a long time and transactions are recorded on this basis

A) Money Measurement

B) Business Entity

C) Going Concern Concept

D) Cost Concept

Q.19 The value of y(4) in the following data y(0) = 1, y(1) = 0, y(2) = 1 and y(3) = 10 is ________

A) It must be a request to pay

B) It must be conditional

C) It must be signed by the maker

D) All of the above

Q.20 A separate record for each type of asset, liability, equity, revenue, and expense used to show the beginning balance and to record the increases and decreases for a period and the resulting ending balance at the end of a period ___

A) Ledger

B) Account

C) Journal

D) All of the above

Q.21 Given dy/dx = y-x with y(0) = 1 the value of y(0.1) = __________. (Use Euler's method).

A) The Drawer

B) The Drawee

C) The Payee

D) All of the above

Q.22 Which of the following statements- are correct for binary search tree? 1. Every element has a key and no two elements have the same key, that is, the keys are unique 2. The keys in a nonempty left sub-tree must be smaller than the

A) Profit and loss account

B) Income statement

C) Either A) or B)

D) Balance Sheet

Q.23 A real root of the equation x = 1 + 0.3 cos x is ____. (By bisection method)

A) Profit and Loss Account

B) Balance Sheet

C) SCFP


Q.24 ___ is the inclusion of a degree of caution in the exercise of the judgments needed in making the estimates required under conditions of uncertainty

A) Prudence

B) Prevarication

C) Transaction Analysis

D) Hedging

Q.25 Which of the statements are true for secondary storage devices? 1. When a program accesses a file, it is the file manager's job to map the logical parts of the file to their corresponding physical locations 2. Once a given cluster has





Q.26 The surfaces of each platter in a magnetic disk are divided into concentric bands called

A) To check the arithmetical accuracy of accounting

B) To help in locating errors

C) To provide a basis for financial statements

D) All of the above

Q.27 More than 95% of all business is conducted on a ___ basis\

A) Cash

B) Credit

C) Either A) or B)


Q.28 The percentage error if 625.483 is approximated to 3 significant digits.


B) Business Entity


D) Cost Concept

Q.29 ___ is a self-sufficient secondary book in the sense that all entries in the primary books will be posted, directly or indirectly, in this ledger

A) General ledger

B) Debtor ledger

C) Creditors ledger


Q.30 What is the output of the following? SUB('ABCDE',2)

A) General Ledger

B) Debtor Ledger

C) Creditorâ€™s Ledger


Q.31 The 2's compliment representation of integer 7 is

A) Credit

B) Debit

C) Asset

D) Liability

Q.32 Expected losses should be accounted for but not anticipated gains is the working rule of convention of ___

A) Materiality

B) Conservatism

C) Consistency

D) Full Disclosure

Q.33 Which of the following statements are correct? 1. The number of cylinders is the same as the number of tracks on a single surface and each track has the same capacity 2. The capacity of the disk is a function of the number of cylin





Q.34 ___ is a business transaction where, no doubt, receiving of something and giving of something take place

A) Cash Transaction

B) Credit Transaction

C) Barter Transaction


Q.35 A ____ is an account book in which all the accounts are maintained

A) Voucher

B) Ledger

C) Journal

D) Journal proper

Q.36 ____ is the process of entering in the ledger the information already recorded in the journal or in any of the subsidiary books

A) Posting

B) Narration

C) Trial Balance

D) Journal

Q.37 ASCII stands for

A) Personal Account

B) Expense Account

C) Real Account

D) Nominal Account

Q.38 ___ means the information is able to directly influence the decisions making process of the user

A) Relevance

B) Understandability

C) Reliability

D) Comparability

Q.39 ___ is the common unit, which enables various items of diverse nature to be summed up

together and dealt with

A) Money

B) Capital

C) Funds

D) All of the above

Q.40 The time complexity of selection sort is

A) Bank Reconciliation, bank

B) Bank Reconciliation, customer

C) Bank, customer

D) Bank, bank

Q.41 What is the name given to the technique of defining a set or a process in terms of itself?

A) Totaling both the sides of the account

B) Difference of both the sides of account

C) Average of both the sides of account

D) Maximum of both the sides of account

Q.42 A real root of equation X3 - 4x - 9 = 0 is (with 3 iterations)


B) Cost Accounting

C) Inflation Accounting

D) Farm Accounting

Q.43 The primary use Of storage devices are 1. Back up of programs during execution 2. Storage of programs for future use 3. Storage of information in files

4. Faster execution

A) Standard Programmes

B) Scanner

C) Flow Charts

D) Parity Bit

Q.44 ___ is the difference between the sales and cost of goods sold

A) Profit

B) Profit Before Tax

C) Gross Profit

D) Net Profit

Q.45 The main Parameters of a tape are: 1. Number of tracks 2. Density 3. Character set used 4. Parity 5. Record size 6. Block size

A) Financial accounting

B) Management accounting

C) Cost accounting

D) Book keeping

Q.46 Given ( dy / dx = y - x, with y(0) = 2, then y(0.1) = _______ using R.K method of order 2.

A) Accrual

B) Cash

C) Both A) and B)


Q.47 If the drawee of the bill accepts the bill without any condition, the acceptance is known as ___

A) General Acceptance

B) Qualified Acceptance

C) Draft


Q.48 If y(0) = 1, y(1) = 3, y(2) = 7 and y(3) = 13 then y(2.5) = _________.

A) Intangible

B) Fictitious

C) Wasting

D) Liquid

Q.49 The maximum level of any node in the tree is called

A) Cheques issued to the supplier not yet presented for payment

B) Cheques deposited into the bank for collection and entered in the cash book, but not collected by the bank

C) Both A) and B)


Q.50 FAT stands for

A) Cash

B) Journal

C) Suspense

D) Bank

Q.51 Determining the effect of a business transaction on assets, liabilities and equities of the accounting equation is called __

A) Prudence

B) Prevarication

C) Transaction Analysis

D) Hedging

Q.52 GAAP stands for:

A) Generally Allowed Accounting Principles

B) Generally Accepted Accounting Principles

C) Generally Allowed Accounting Practices

D) Generally Accepted Accounting Practices

Q.53 ___ will have separate accounts for each customer, and it will show the transactions entered into with the customers

A) General ledger

B) Debtor ledger

C) Creditors ledger


Q.54 ____ refers to the money or moneyâ€™s worth introduced by the proprietor of the business

A) Drawings

B) Capital

C) Inventory

D) Asset

Q.55 The value of y in fourth iteration for the system of equations 3x + 20y â€“ z = 18, 2x - 3y + 20z = 25, 20x + y - 2z = 17 is _______ (Use Gauss-Seidal iteration method)

A) A) Suspense A/C Dr. 1300 To Ramâ€™s A/C 1300

B) B) Suspense A/C Cr. 1300 To Ramâ€™s A/C 1300

C) C) Suspense A/C Dr. 650 To Ramâ€™s A/C 650

D) D) Suspense A/C Cr. 650 To Ramâ€™s A/C 650

Q.56 What happens when you close a file? 1. Makes the logical file name available for another physical file 2. Ensures that everything has the file been written to the file 3. Files art usually closed automatically by the operating syst

A) Recording

B) Classifying

C) Summarizing

D) Analyzing

Q.57 Text handling encompasses which basic areas? 1. text editing 2. text scanning 3. text formatting

A) Accounting cost less estimated salvage value / Estimated life in years

B) Accounting cost plus estimated salvage value / Estimated life in years

C) Accounting cost less estimated salvage value * Estimated life in years

D) Accounting cost plus estimated salvage value * Estimated life in years

Q.58 The number 2.004800 contains ______significant digits.

A) Recording

B) Classifying

C) Summarizing

D) Communicating

Q.59 _______ is used when one wants a single value returned to the calling routine

A) Liability

B) Asset

C) Both A) and B)


Q.60 ___ is a book of original, prime or first entry in which all the business transactions are first entered in the specified manner in the order of dates

A) Posting

B) Narration

C) Trial Balance

D) Journal

Q.61 Which statement is used to repeat a step until a given logical expression is false?

A) EVA

B) GAPP

C) Value added Concept


Q.62 The prefix of the expression A+(b+c) is

A) E

B) D

C) L

D) T

Q.63 If A is a non-singular matrix then AdjA =

_____

A) Increase in Assets

B) Decrease in Assets

C) Increase in ownersâ€™ Equity

D) Decrease in ownersâ€™ Equity

Q.64 Assets are always recorded at ___ cost

A) Acquisition

B) Historical

C) Either A) or B)

D) Current

Q.65 In which method, a data structure is accessed directly through an address

A) Posting

B) Balance Sheet

C) Trial Balance

D) Journal

Q.66 Which of the following statements are true for stacks? 1. Insertion and deletion operation are allowed to carry out at only one end 2. The elements can only be removed in the opposite order from that in which they were added to the

A) Accrual

B) Cash

C) Both A) and B)


Q.67 An entity that possess a value and its name is chosen to reflect the meaning of the value it holds is called

A) Liability

B) Asset

C) Both A) and B)


Q.68 A real root of. the equation e-x=10x (using iterative method) is ______

A) Liquid Assets

B) Long Term Debts

C) Shareholders Equity

D) Current Liabilities

Q.69 A real root of the equation 2x -log 10 x = 7 is ______. (Use iteration method)

A) Four days

B) Five days

C) Three days

D) Two days

Q.70 What provides a homogenous method of referencing any data structure regardless of structure's type?

A) Posting

B) Narration

C) Trial Balance

D) Journal

Q.71 BCD stands for

A) Bought Day

B) Invoice

C) Both A) and B)

D) Bills Receivable

Q.72 ___ concept implies that a business unit is separate and distinct from the person who owns or controls it


B) Business Entity


D) Cost Concept

Q.73 How does the MARKOV algorithm terminate? 1. The last production is not applicable 2. A terminal production is applicable

A) Punching

B) Sorting

C) Tabulation

D) All of the above

Q.74 . ___ is prepared as an improved replacement of traditional profit and loss account

A) SCFP

B) Value added statement

C) Balance sheet

D) All of the above

Q.75 _____ is an â€œinformalâ€ record keeping system�

A) Single entry system

B) Double entry system

C) Both A) and B)


Q.76 A process of devising a method of analyzing the various parts of a string to determine whether the string is a sentence if the language is called

A) Journal Proper

B) Bills Receivable Book

C) Bills Payable book


Q.77 The 2's compliment of integer 6 in a modulo 16 system is

A) Posting

B) Narration

C) Trial Balance

D) Journal

Q.78 Any happening which brings change in the proprietorship of a business is a ___ to it

A) Asset

B) Liability

C) Either A) or B)

D) Financial transaction

Q.79 Which data structure has the following properties? 1. It makes use of computed addresses to locate its element 2. A number of memory locations are

sequentially allocated 3. Size is fixed and requires a fixed number of memory lo

A) AICPA

B) ICA

C) AAA


Q.80 The normal equations of the straight lines are 7a + 35b = 70, 35a + 227b = 453, then a = ______

A) Trading Account

B) Profit and Loss Account

C) Balance Sheet

D) Trial Sheet

Q.81 What does formatting do? 1. Defines data areas 2. Creates tracks 3. Separates into sectors 4- Writes the ID number to each sector

A) AS-6

B) AS-9

C) AS-10

D) AS-11

PART B

Q.1 1) External Consistency 2) Vertical Consistency 3) Horizontal Consistency 4) Third Dimensional Consistency a) All units in the same industry follow the same accounting policies b) The financial statements of one enterprise should be comparable with another c) The same accounting policies are adopted while preparing inter-related statements of the same date d)

The same accounting policies are adapted from year to year

A) 1-b, 2-c, 3-d, 4-a

B) 1-c, 2-b, 3-d, 4-a

C) 1-b, 2-d, 3-c, 4-a

D) 1-b, 2-c, 3-a, 4-d

Q.2 Causes of appreciation are: 1) Wear and Tear 2) Efflux of time 3) Obsolescence 4) Accident 5) Rise in market price

A) Except 3

B) Except 4

C) Except 5

D) All of the above

Q.3 State the true equations a. Liabilities + Assets = Capital b. Liabilities â€“ Assets = Deficiency of Capital

A) Only a

B) Only b

C) a and b


Q.4 ___ assets represent long term liquid investments that a company expects will help it generate profits

A) Fixed Assets

B) Current Assets

C) Liquid Assets

D) Intangible Assets

Q.5 State the correct equations 1) Ownerâ€™s Equity + Outside Liability = Asset 2) Assets â€“ Liabilities = Capital

A) Only 1

B) Only 2

C) Both 1 and 2


Q.6 Set A â€“ Adjustments to Bank Balance 1) Add Deposits in transit 2) Subtract outstanding cheques Set B â€“ Adjustments to Cash Balance a) Bad checks b) Bank Collections c) Interest earned d) Bank fees

A) 1 â€“ a, b, 2 â€“ c, d

B) 1 â€“ b, c, 2 â€“ a, d

C) 1 â€“ d, b, 2 â€“ c, a

D) 1 â€“ a, c, 2 â€“ b, d

Q.7 The financial statements include 1) Profit and loss account 2) Balance sheets 3) Statement of changes in financial position

A) 1 and 2

B) 2 and 3

C) 1 and 3

D) All of the above

Q.8 State the True points with regards to GAAP 1) Compliance with GAAP helps maintain creditability with creditors and stock holders 2) It reassures outsiders that a companyâ€™s financial report accurately portrays its financial position

A) Only 1

B) Only 2

C) 1 and 2


Q.9 EDI

A) Help in reducing delay

B) Reduce paper cost

C) Reduce inventory cost

D) All of the above

Q.10 When the bill sent for collection is actually collected, the two accounts affected in the books of the drawer re:

A) Bank Account and Bank for collection of Bills Account

B) Bank Account and Bank Charges Account

C) Bank Account and Bills Payable Account

D) Bank Account and Bills Receivable Account

Q.11 The ___ becomes the ___ after he accepts the bill

A) Drawer, Drawee

B) Drawee, Acceptor

C) Acceptor, Drawer

D) Drawee, Payee

Q.12 State the true points with regards to debt 1) Good debt refers to fully recoverable debt 2) Bad debt refers to debt, which is not recoverable (irrecoverable) 3) Doubtful debt refers to debt whose recovery is doubtful

A) Only 1

B) 1 and 2

C) 1 and 3

D) 1, 2 and 3

Q.13 According to IASCâ€™s Conceptual framework, the financial information must require the following attributes to be reliable: 1) Faithful presentation of information 2) Neutrality 3) Substance over form 4) Prudence 5) Completeness

A) Except 3

B) Except 2

C) Except 4

D) All of the above

Q.14 Say the True sentences for Mechanization: 1) Speed and accuracy 2) Minimum cost 3) Flexible 4) To formulate and prove hypothesis

A) 1, 2, 3

B) 1, 2, 4

C) 2, 3, 4

D) 1, 2, 3, 4

Q.15 Advantages of Single-entry System

A) It is a simple method of recording business transactions

B) It is more costly than double entry systems

C) It facilitates the calculation of income but not of financial position

D) It does not track asset and liability accounts

Q.16 ___ is a liability of a period greater than one year

A) Current Liabilities

B) Long tern debt

C) Shareholderâ€™s equity

D) Intangible liabilities

Q.17 The principal characteristics of financial statements are: 1) Relevance 2) Understandability 3) Reliability 4) Comparability 5) Timeliness 6) Cost-Benefit Analysis

A) 1, 2, 3, 4

B) 1, 2, 3, 4, 5

C) 1, 2, 3, 4, 5, 6

D) 1, 2, 3, 5, 6

Q.18 The rent paid for fifteen months in advance is an example for ___ basis of accounting:

A) Accrual

B) Cash

C) Both A) and B)


Q.19 All ___ in assets and ___ in liabilities represent the uses of funds

A) increases, decreases

B) decreases, increases

C) decreases, decreases

D) increases, increases

Q.20 Bank Reconciliation Set A - Adjustments to Bank Balance 1) Add Deposits in transit 2) Subtract outstanding cheques 3) Bank errors Set B - Adjustments to bank Balance a) Errors relating to deposits b) Interest Earned c) Interest Charges

A) 1-b, 2-c, 3-a

B) 1-a, 2-b, 3-c

C) 1-a, 2-c, 3-b

D) 1-c, 2-b, 3-a

Q.21 What would be the difference of amount in the Cash Book and Bank Balance?

A) 2000

B) 3000

C) 6000

D) 9000

Q.22 1) Errors of Omission 2) Errors of Commissions 3) Errors of Principles a) Partial Omission b) Balancing of subsidiary books c) Valuation of assets

A) 1-a, 2-b, 3-c

B) 1- b, 2-a, 3-c

C) 1-a, 2-c, 3-b

D) 1-b, 2-c, 3-a

Q.23 A debit ___ an asset while a credit ___ an asset

A) increases, decreases

B) decreases, increases

C) decreases, decreases

D) increases, increases

Q.24 The balance sheet equation indicates that

A) Sources of Fund = Uses of Fund

B) Equities â€“ Assets = 0

C) Outside Liability = Assets â€“ Proprietorsâ€™ Equity (Capital)

D) All of the above

Q.25 Set A 1) Tangible Assets 2) Intangible Assets Set B a) Good account b) Patent rights account c) Goodwill account d) Land account

A) 1 â€“ a, b; 3 â€“ c, d

B) 1 â€“ c, b; 3 â€“ a, d

C) 1 â€“ a, d; 3 â€“ c, b

D) 1 â€“ c, d; 3 â€“ a, b

Q.26 Which of the above reasons should be entered in the â€œLessâ€ part of Bank� Reconciliation Statement?

A) 1, 3 and 5

B) 2, 3 and 4

C) 2 and 4

D) 1 and 4

Q.27 Which are the true statements with respect to Double Entry System? 1) It facilitates the

comparison of purchases, sales etc. 2) It makes inclusion of assets and liabilities in the book keeping accounts 3) It helps for preparation of financial statements directly from the accounts 4) It makes work easy for detection of errors and fraud 5) It is inexpensive 6) It calls for maintaining les number of account books

A) 2, 4, 5, 6

B) 2, 3, 5, 6

C) 1, 2, 3, 4

D) 1, 2, 3, 5

Q.28 The branches of Accounting are: 1) Financial Accounting 2) Management Accounting 3) Cost Accounting

A) 1 and 2

B) 1 and 3

C) 1, 2 and 3

D) Only 1

Q.29 Shareholders equity generally reflects the amount of capital the owners invested plus any profits that the company generates that are subsequently reinvested in the company. This is called as ___

A) Re-invested Earnings

B) Retained Earnings

C) Either A) or B)


Q.30 ___ assets are assets that are usually converted to cash within one year

A) Fixed Assets

B) Current Assets

C) Liquid Assets

D) Intangible Assets

Q.31 Which of the following statements are true? 1) Accounting principles do not have the

authoritativeness as universal principle 2) The Science of accounting is in the time of evolution 3) The general acceptance of accounting depends on relevance, objectivity and feasibility

A) 2, 3

B) 1, 3

C) 1, 2

D) All of the above

Q.32 The elements directly related to financial position of an organization are:

A) Assets, Liabilities

B) Assets, Liabilities, Equity

C) Assets, Equity

D) Liabilities, Equity

Q.33 1) Personal Account 2) Real Account 3) Nominal Account a) Any account that bears the name of a particular person b) Accounts of properties, assets or things owned by a concern c) Accounts of the expenses and losses which a concern incurs

A) 1-a, 2-b, 3-c

B) 1-a, 2-c, 3-b

C) 1-b, 2-a, 3-c

D) 1-c, 2-b, 3-a

Q.34 ABC Ltd. maintains a current account with Syndicate Bank of India. As on 31st March 2004, the bank column of its cash book showed a debit balance of Rs. 10000. However, the bank statement shows a different balance. The following are the reasons for such difference: 1) Cheque deposited but not yet credited by the bank: Rs. 2000 2) Cheque issued but not yet presented: Rs. 1000 3) Bank Charges: Rs. 2000 4) Cheque received by the bank directly: Rs. 5000 5) Insurance premium paid by the bank as per standing instructions not yet intimated: Rs. 2000 113. Which of the above reasons should be entered in the â€œAddâ€ part of Bank �Reconciliation Statement?

A) 1, 3 and 5

B) 2, 3 and 4

C) 2 and 4

D) 1 and 4

Q.35 Liabilities also can be classified into 1) Current liabilities 2) Fixed liabilities 3) Bank liabilities 4) Sales liabilities

A) 1 and 2

B) 1, 2 and 3

C) 1, 2 and 4

D) All of the above

PART C

Q.1 What is the total amount to be deducted from the bank balance as per the cash book'?

A) 75,450

B) 91,985

C) 2,15,960


Q.2 National Bank

A) 37485

B) 47845

C) 42485

D) 44485

Q.3 Balance c/d in Cash Account

A) 1140

B) 1120

C) 1160

D) 1150

Q.4 What is the gross profit b/d in the Profit and Loss Account?

A) 152000

B) 153000

C) 155000

D) 155750

Q.5 Which of the following are types of equities? 1) Cash 2) Prepaid expenses 3) Debentures 4) Loose tools 5) Bills receivable 6) Proprietorship equities 7) Bank overdraft

A) 1, 2, 3, 5, 6

B) 1, 2, 4, 5

C) 3, 6, 7

D) 1, 2, 3, 4, 5, 6, 7

Q.6 In the above figure, 6 stands for:

A) Debit expenses and losses

B) Credit expenses and losses

C) Debit incomes and gains

D) Credit incomes and gains

Q.7 Balance c/d in National Bank Account

A) 21195

B) 21145

C) 21245

D) 21255

Q.8 What is the balance as per the bank statement?

A) 2,78,275

B) 1,68,320

C) 2,95,150


Q.9 Advantages of Bill of Exchange are: 1) It fixes the date of payment 2) It grants the debtor his full period of credit 3) It is a negotiable instrument 4) It is written and sign acknowledgement of debt 5) It is discountable

A) Except 3

B) Except 5

C) Except 3 and 5

D) All of the above

Q.10 What is the total closing stock?

A) 121000

B) 122000

C) 192500

D) 125000


A) Debit what comes in

B) Debit what goes out

C) A) Credit what comes in

D) B) Credit what goes out

Q.12 Overseas Bank

A) 77804

B) 55260

C) 77760

D) 77882


A) Debit expenses and losses

B) Credit expenses and losses

C) Debit incomes and gains

D) Credit incomes and gains

Q.14 Balance c/d in Overseas Bank Account

A) 15940

B) 16055

C) 16057

D) 16172

Q.15 The important characteristics of Bill of Exchange are: 1) It must be a request to pay 2) It must be unconditional 3) The order must be signed by the drawee 4) It must bear the required revenue stamp 5) The money payable must be certain

A) Except 1 and 3

B) Except 3 and 5

C) Except 2 and 4

D) Except 2 and 5



B) Credit the Receiver

C) Debit the Giver

D) Credit the Giver

Q.17 The different types of debtors are: 1) Trade debtor 2) Loan debtor 3) Capital debtor 4) Debtor for asset 5) Debtor for service

A) 1, 2, 3, 4

B) 1, 2, 3, 5

C) 2, 3, 4, 5

D) 1, 2, 4, 5



B) Credit the Receiver

C) Debit the Giver

D) Credit the Giver


A) Debit what comes in

B) Debit what goes out

C) A) Credit what comes in

D) B) Credit what goes out

Q.20 Which of the following are types of assets? 1) Cash 2) Prepaid expenses 3) Debentures 4) Loose tools 5) Good will 6) Proprietorship equities 7) Bank overdraft

A) 1, 2, 3, 5, 6

B) 1, 2, 4, 5

C) 3, 6, 7

D) 1, 2, 3, 4, 5, 6, 7

Q.21 What is the total amount to be added to bank balance as per the cash book?

A) 80,700

B) 75,450

C) 1,35,200


Q.22 What is the total Assets in Balance Sheet?

A) 328750

B) 328500

C) 278750

D) 278500

Q.23 Discount Account

A) 185

B) 215

C) 250

D) 220

Q.24 What is the net profit transferred to Capital Account?

A) 123000

B) 126000

C) 125000

D) 12750

Q.25 The main objectives of accounting include: 1. To maintain complete and proper records of the business 2. To protect business properties 3. To ascertain operating profit or loss 4. To ascertain the financial position of the business 5. To facilitate rational decision making

A) Except 1

B) Except 3

C) Except 5

D) All of the above

Q.26 Business firms raise funds in the following ways: 1) Additional Capital 2) Earning Revenues 3) Profits 4) Additional Loans 5) Disposing of Assets

A) 1, 2, 3, 4

B) 1, 2, 3

C) 1, 3, 4, 5

D) 1, 2, 3, 4, 5

Q.27 What are the various possible combinations on the components of an accounting equation? 1) Increase in one assets, decrease in another asset 2) Decrease in one liability, decrease in other liability 3) Increase in one item of proprietors equity, decrease in another item of proprietors equity 4) Increase in one item of proprietors equity, decrease in liability 5) Decrease in asset, decrease in liability

A) Except 1

B) Except 3

C) Except 4

D) All of the above

Q.28 What is the Total Amount in the Profit and Loss Account?

A) 153000

B) 153500

C) 155000

D) 157500

Q.29 Cash Account

A) 18265

B) 16765

C) 19765

D) 14765

Account Q1

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