NEW
Font size
WorksheetsAccountancy
Total questions: 30
Worksheet time: 3600secs
Accounting is also known as the language of business
True
False
An employee dismissed from his job is an events which represent business transaction.
True
False
An owner withdrawing cash from his business for personal use is an events representing business transaction
True
False
Accounting can be viewed as an information system which has its inputs, processing methods and output.
True
False
Accounting is required in
a. Business activities
b. Non-Business activities
c. Non-Governmental Organisation
d. All of the above
A transaction is an exchange in which participant’s ____________ or __________ value.
a. Receives, sacrifices
b. receives, earn
c. earn, sacrifices
goods, services
Accounting measures the transactions in terms of -
a. Differential measuring unit
b. Quantity measurement Unit
c. Average measurement unit
d. Common measurement unit
The process of establishing the relationship between various items or group of items taken from Income Statement or Balance Sheet or both is known as
a. Analyzing
b. Interpreting
c. Recording
d. Classifying
Maintenance of books of accounting which is often routine and clerical in nature-
a. Accountancy
b. Financial Management
c. Accounting
d. Book-Keeping
The process of transferring the transaction recorded in the journal to respective accounts opened in Ledger is-
a. Journalising
b. Posting
c. Balancing
d. Position Statement
Accounting communicates information to
a. Internal Users
b. External Users
c. Both A and B
d. None of the above
Which of the following statement is not an objective of accounting?
a. To provide information about firms liabilities, assets and capital
b. To provide information on the personal assets and liabilities of the owner of the firm.
c. To maintain the records of the business
d. To provide information on the performance of an enterprise
The information provided in the annual financial statements of an enterprise pertain to-
a. Individual business enterprise
b. Business industries
c. The economy as a whole
d. None of the above
A documentary evidence in support of business transaction is known as
a. Events
b. Entry
c. Voucher
d. Purchases
The financial obligation of an enterprise other than owner’s fund is
a. Liabilities
b. Assets
c. Capital
d. Drawings
The person from whom the amount are due for goods sold or service rendered on credit basis is term as-
a. Trade creditors
b. Trade debtors
c. Opening Stock
d. Closing Stock
The person to whom the amount are due for goods purchased or service rendered on credit basis-
a. Credit purchase
b. Credit sales
c. Trade creditors
d. Trade debtors
Accounting equation can be expressed as-
a. Liability = Assets + Capital
b. Assets = Liability – Capital
c. Assets = Liability + Capital
d. Assets = Internal Equity – External Equity
Ascertain the accounting equation when Mr X started business with cash Rs. 1,00,000
a. 1,00,000 = 0 + 0
b. 0 = 0 + 1,00,000
c. 1,00,000 = 0 + 1,00,000
d. 1,00,000 = 1,00,000 + 0
Ascertain the accounting equation when, purchase furniture for Rs. 10,000
a. 10,000 = 0 + 10,000
b. 10,000 + 10,000 = 0 + 0
c. (-) 10,000 + 10,000 = 0 + 0
d. 10,000 = 10,000 + 0
Ascertain the accounting equation when, purchase goods from Mr Y on credit for Rs. 30,000
a. 30,000 = 30,000 + 0
b. (-) 30,000 + 30,000 = 0 + 0
c. 30,000 = 0 + 30,000
d. 0 = 30,000 + (-) 30,000
Ascertain the accounting equation when, sold goods costing Rs. 10,000 for cash Rs. 12,000
a. -10,000 = 0 + 12,000
b. -10,000 + 12,000 = 0 + 0
c. -10,000 + 12,000 = 0 + 2,000
d. 12,000 = 10,000 + 2,000
Ascertain the accounting equation when, withdraw cash Rs. 2,000 for personal use.
a. 0 = 2,000 + 0
b. 2,000 = 0 + (-) 2,000
c. -2,000 = 0 + (-)2,000
d. -2000 = (-)2,000 + 0
Rules of debit for real account is
a. Debit the receiver
b. Debit all expenses and losses
c. Debit what comes in
d. Debit the giver
Credit rules for personal account is
a. Credit the giver
b. Credit the receiver
c. Credit what comes in
d. Credit all gain and expenses
Debit all expenses and losses is associated with
a. Personal account
b. Real account
c. Nominal account
d. Expenses account
GAAP stands for
a. Generally applicable Accounting Principles
b. Generally Assumption Accounting Principles
c. Generally Accepted Accounting Principals
d. Generally Accepted Accounting Principles
According to which principles, accounting practices should be followed on a horizontal basis from one accounting period to another to achieve compatibility
a. Going concern principles
b. Consistency principles
c. Money measurement principles
d. Historical cost principles
Items or events having insignificant economic effect or not being relevant to the user’s need not be disclosed in
a. Materiality principle
b. Full disclosure principle
c. Accrual principle
d. Conservatism principle
In GAAP, the accounting principles that can be implemented without much complexity or cost is –
a. Relevance
b. Objectivity
c. Feasibility
d. None of the above
