LPU previous year Questions

Accounting does not record non-financial transactions because of

• Accrual concept

• Cost concept

• Continuity concept

• Money measurement concept

During the life-time of an entity accounting produce financial statements in accordance with which basic accounting concept

• Accounting period

• Matching

• Conservation

• Going Concern

Which of the following Accounting Equation is not correct?

• Assets = Liabilities + Capital

• Assets - Liabilities = Capital

• Assets + Liabilities = Capital

• Assets - Capital = Liabilities

Which of the following errors are not disclosed by the trial balance?

• Error of casting

• Wrong balancing of account

• Double posting in one account

• Compensating errors

The amount of depreciation charged on a machinery will be debited to

• Machinery A/c

• Depreciation A/c

• Cash A/c

• Repair A/c

A sold goods to B for Rs 20,000. A will grant 5% discount to B. B requested A to draw a bill. The amount of bill will be

• Rs 20,000

• Rs 19,000

• Rs 19,500

• Rs 21,000

The Adjustment of Interest on drawings in financial statements will be Credited to _______ and will be Deducted from ________.

• P&L A/c, Drawings

• P&L A/c, Capital

• Trading A/c, Capital

• Trading A/c, Drawings

Rent expense of a non-profit organization paid in advance is an ________.

• Expense

• Liability

• Equity

• Asset

To hide the name of the Company you need to define

• Report Voucher

• Conventional Voucher

• Unconventional Voucher

• Both report and conventional voucher

In the absence of an agreement, Interest on loan advanced by the partner to the firm is allowed at the rate of

• 6%

• 12%

• 5%

• 9%