Accounting 1

Name

Roll No

1. Accounting furnishes data on

• A) Income and cost for the managers
• B) Financial conditions of the institutions
• C) Company’s tax liability for a particular year
• D) All the above

2. Long term assets having no physical existence but possessing a value are called

• A) Intangible assets
• B) Fixed assets
• C) Current assets
• D) Investments

3. The assets that can be easily converted into cash within a short period, i.e., 1 year or less, are known as

• A) Current assets
• B) Fixed assets
• C) Intangible assets
• Option 4

4. Copyrights, Patents and Trademarks are,

• A) Current assets
• B) Fixed assets
• C) Intangible assets
• D) Investments

5. The debts which are to be repaid within a short period (a year or less) are referred to as,

• A) Current Liabilities
• B) Fixed liabilities
• C) Contingent liabilities
• D) All the above

6. Gross profit is

• A) Cost of goods sold + Opening Stock
• B) Excess of sales over cost of goods sold
• C) Sales fewer Purchases
• D) Net profit fewer expenses of the period

7. Net profit is computed in the

• A) Profit and loss account
• B) Balance sheet
• C) Trial balance
• D) Trading account

8. In order to find out the value of the closing Stock during the end of the financial year we,

• A) do this by stocktaking
• B) deduct the cost of goods sold from sales
• C) deduct opening stock from the cost of goods sold
• D) look in the stock account