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ACCOUNTS

Total questions: 31

Worksheet time: 16mins

Name
Class
Date
1.

capital is a

a)

internal liability

b)

external liability

c)

both internal and external

d)

none of these

2.

goods taken by the proprietor for personal use is

a)

sale

b)

drawings

c)

purchase

d)

none of these

3.

sale is recognised as revenue

a)

when the contract for sale is entered into

b)

at the point pf sale or performance of service

c)

after the expiry of credit period allowed to debtors

d)

after the money collected from the customers

4.

amount paid or payable against purchase of goods is

a)

revenue expenditure

b)

capital expenditure

c)

both revenue and capital expenditure

d)

none of these

5.

good will is a/an

a)

tangible asset

b)

intangible asset

c)

current asset

d)

fictitious asset

6.

expenditure of revenue nature that gives benefit for more than one accounting period is categorised as

a)

capital expenditure

b)

revenue expenditure

c)

deferred revenue expenditure

d)

none of these

7.

a person who owes money to a firm against goods sold is called a

a)

creditor

b)

debtor

c)

both creditor and debtor

d)

none of these

8.

a person to whom money is owed by a firm for purchase of goods is called a

a)

creditor

b)

debtor

c)

both creditor and debtor

d)

none of these

9.

purchase refers to the purchase of

a)

goods for resale

b)

stationery for office use

c)

assets for the factory

d)

none of the above

10.

a liability arises because of

a)

cash transaction

b)

credit transaction

c)

cash as well as credit transaction

d)

none of these

11.

book keeping and accounting

a)

means same and are accounting

b)

does not mean same and are not used interchangeably

c)

both means same and are accounting and does not mean same and are not used interchangeably

d)

none of the above

12.

accounting

a)

includes book keeping

b)

does not include book keeping

c)

may or may not include book keeping

d)

none of these

13.

which of the following will not be recorded in the books of account?

a)

sales of goods

b)

payment of salary

c)

quality of staff

d)

purchase of goods

14.

book keeping is concerned with

a)

recording financial data relating to business operations

b)

designing for systems recording, classifying and summarising recorded data

c)

interpreting data for internal and external users

d)

all of the above

15.

which is the last step of accounting as a process of information

a)

recording the transaction

b)

preparation of financial statements

c)

communication of information

d)

analysis and interpretation of information

16.

accounting to going concern concept, a business is viewed as having

a)

a limited life

b)

a very long life

c)

an indefinite life

d)

none of these

17.

valuation of stock at lower of cost or net realisable value is an example of

a)

consistency convention

b)

conservation convention

c)

realisation concept

d)

matching concept

18.

during the life-time of an entity, accounting produces financial statements in accordance with which of the following accounting concept?

a)

matching

b)

conservatism

c)

accounting period

d)

cost

19.

IASB upon coming into existence has adopted

a)

all IAS and SIC

b)

some IAS and SIC

c)

none of the IAS and SIC

d)

none of these

20.

debit means

a)

an increase in a asset

b)

an increase in liability

c)

an increase in the proprietor's equity

d)

a decrease in asset

21.

credit means

a)

an increase in asset

b)

an increase in liability

c)

a decrease in liability

d)

a decrease in proprietor's equity

22.

sale of goods to ram for cash is debited to

a)

ram

b)

cash A/c

c)

sales A/s

d)

none of these

23.

withdrawal of cash from business by the proprietor is credited to

a)

drawing A/c

b)

capital A/c

c)

cash A/c

d)

profit and loss A/c

24.

bank account is a

a)

personal account

b)

real account

c)

nominal account

d)

none of these

25.

goodwill account is a

a)

personal account

b)

real account

c)

nominal account

d)

none of these

26.

drawings account is a

a)

personal account

b)

real account

c)

nominal account

d)

none of these

27.

cash book records all

a)

cash receipts and payment

b)

cash and credit transaction

c)

cash receipts

d)

cash payments

28.

if Ram has sold goods for cash to Param, the entry will be recorded in the

a)

cash book

b)

sales book

c)

journal proper

d)

petty cash book

29.

Non-sufficient funds in the account to cover a check

a)

Bounced Check

b)

Cancelled Check

c)

Check

d)

Checkbook Register

30.

Depreciation is charged on

a)

Intangible assets

b)

Fixed tangible assets

c)

Liabilities

d)
31.

This is not a reason for depreciation

a)

Passage of time

b)

Obsolescence

c)

Accident / wear and tear

d)

Change in Demand & Supply