WorksheetsVSmart Dayanand College Class test 1
Total questions: 25
Worksheet time: 23mins
Who is known as the Father of Modern Accounting?
Adam Smith
Luca Pacioli
Aryabhatt
Alfred Marshal
The three Fundamental Accounting Assumptions are:
Going concern, Consistency, Accrual
Business Entity, Going Concern, Accrual
Going concern, Conservatism, Accrual
Going concern, Accrual, Money Measurement
Accounting is an art of Recording, Classifying & summarizing Transactions & Events which are of part at least of Financial Character & Interpreting the results thereof. This definition is given by
Institute of Chartered Accountants of India
International Accounting Association
American Institute of Certified Public Accountants
The International Accountants Association
According to the principle of dual aspect
Every Transaction has single Aspect and we record it twice
Every Transaction has 2 Aspects and we record both these aspects twice
Every Transaction has 2 Aspects and we record both these using ‘Debit’ & ‘Credit’
Every Transaction is to be recorded twice using ‘Debit’ & ‘Credit’
Mr. Bhushan (Owner) paid for Ipad purchased for his son using business money. In Business Accounting records this will be:
Recorded
Ignored
Will be recorded in Rough book
None of the Above
A Dealer in Mobile handsets purchased 20 Iphone 13. This will be classified as:
Purchase of Goods
Purchase of Asset
An Expense
None of the Above
A Stationery dealer purchased 2 Laptops having a life of 5 years for business use. This will be classified as
Purchase of Goods
Purchase of Asset
An Expense
None of the Above
Shyam sold 1000 units to Ram @ Rs 50 per unit. Ram will record this transaction as:
Sale
Purchase
Sales Return
Purchase Return
Accrual Means
Recognition of revenue as it is earned & of costs as they are paid
Recognition of revenue as it is received & of costs as they are incurred
Recognition of revenue & costs on payment basis
Recognition of revenue as it is earned & of costs as they are incurred
The fundamental accounting equation
Assets = Capital + Liabilities Is the formal expression of
Dual Aspect
Matching
Going Concern
Money Measurement
In Accounting facts are preferred over Mere Legal Formalities, this is based on
Conservatism
Consistency
Materiality
Substance over Form
Interest Receivable Account will be a
Personal Account
Real Account
Nominal Account
None of the above
Mr Satish purchased goods worth 20,000 from Mr Manish for Cash. Mr Manish will (a) Cash Account.
Trade Discount is a reduction granted by a supplier from the list price of goods or services on business considerations for prompt payment. TRUE OR FALSE.
(a)
(a)
An Entity following the Cash basis of Accounting. In this case he:
Should Disclose it as he is not following Accrual.
May disclose it or may not as per his wish.
Need not disclose it at all.
Should disclose only if specifically asked for.
A ledger is also known as
The Principal Book
The Primary Book
The Record Book
The Subsidiary Book
Ledger accounts of assets when they are increased will always be
Debited
Credited
Can be Debited as well as Credited
Wont be debited or Credited
Rent paid to landlord is credited to
Landlord A/c
Rent A/c
Cash A/c
None of the above
If the total of Credit side is greater than the total of debit side, we get a
Debit Balance
Credit Balance
Debit as well as Credit balance
Zero balance
Cost of machinery Rs.10,00,000
Installation charges Rs.1, 00,000
Market value on 31.03.25 Rs. 12, 00, 000
While recording the company debits machinery by Rs.12, 00,000, which concept is violated by the company?
Cost
Matching
Materiality
Periodicity
Mohan purchased good for Rs. 15,00,000 and sold 4/5th of the good amounting Rs.18,00,000 and met expenses amounting Rs.2,50,000 during the year , he counted net profit as Rs.3,50,000. Which of the following concept was followed by him?
Entity
Periodicity
Matching
Conservatism
A businessman purchased goods for Rs. 25, 00,000 and sold 80% of such goods during the year ended 31st March 2025. The market value of remaining goods was Rs.4, 00,000. He valued the stock @ Rs. 5,00,000. He violated concept of
Money Measurement
Conservatism
Cost
Periodicity
To Record a decrease in Assets. Asset A/c is
Debited
Credited
Both Debited as well as Credited
Ignored
Income Tax liability of a Sole proprietorship concern will be treated as
Business Expense
Business Liability
Drawings
Capital
