Accountancy QUIZ 1 for XI

The system of recording transactions based on dual concept is called:

• Double Account System

• Double Entry System

• Single Entry System

• Double Ledger System

Dual Aspect Concept results in the accounting equation:

• Capital + Liabilities = Assets

• Capital = Assets

• Revenue = Expenses

• Capital + Profit = Assets + Expenses

Market Value of Investments is shown as a footnote according to:

• Consistency Concept

• Conservatism Concept

• Full Disclosure Concept

• Money Measurement Concept

The proprietor is treated as a creditor to the extent of his capital according to:

• Cost Concept

• Business Entity Concept

• Dual Aspect Concept

• Going Concern Concept

Goods means:

• Commodity to be bought and sold

• Commodity to be bought but not to be sold

• Commodity to be used as an asset

• All of the above

Tangible Asset is:

• Goodwill

• Stock

• Patents

• Prepaid Expenses

The limitations of Accounting are:

• Influenced by Personal Judgements

• Based on Historical Cost

• Affected by Window Dressing

• All of these

Accounting is:

• Only an Art

• Only a Science

• Art & Science Both

• Neither Art nor Science

First step in accounting process is:

• Recording of Transactions

• Identification of Transactions

• Preparation of Trial Balance

• Posting to Ledger

According to which concept the same accounting methods should be used each year:

• Prudence

• Full Disclosure

• Materiality

• Consistency