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Accounting For Managers Quiz 1

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

Which of the following is not a Branch of Accounting

a)

Financial Accounting

b)

Money Accounting

c)

Cost Accounting

d)

Management Accounting

2.

As discussed in the class, Profit and Loss account is like a photograph of a person

a)

True

b)

False

3.

The reason we create Bad debt Reserve in the books of accounts is due to the

a)

Materiality Concept

b)

Convention of Consistency

c)

Realisation Concept

d)

Convention Conservatism

4.

If the cost Price is Rs. 36000 and Profit is 10% on Selling Price then the selling price will be ---

(a)  

5.

When the accountant shows false information in financial statement to lure the investors it is known as

a)

Mercantile Accounting

b)

Window Dressing

c)

Money Measurement Concept

d)

None of the above

6.

Which one of the following is not a limitation of Financial Accounting

a)

It ignores qualitative aspects

b)

Window Dressing

c)

It ignores quantitative aspects

d)

It ignores Price level changes

7.

According to the Dual Aspect Concept

Capital + Assets = Liability

a)

True

b)

False

8.

Amortization is depreciation of intangible assets

a)

True

b)

False

9.

There is a prescribed format for preparation of Management Accounting which is known as GAAP

a)

True

b)

False

10.

Capital is the money invested by the owner of the business. But it is shown in the liability side of Balance sheet because of

a)

Conservatism Concepts

b)

Separate Entity Concept

c)

Cost Concept

d)

Going Concern Concept

11.

Transactions and events that cannot be measured in money terms are not recorded in the books of accounts. It is due to Money Measurement Concept.

a)

True

b)

False

12.

The system of recording transactions based on Dual Aspect Concept is known as (a)   .

13.

The rule “Debit all expenses and losses and credit all gains and incomes” is applicable to Personal Account

a)

True

b)

False

14.

What is the type of Drawings Account?

a)

(a) Personal

b)

(b) Real

c)

(c) Nominal

d)

Expenses

15.

In Accounting, Goods is defined as:

a)

(a) Items which purchased for own consumption.

b)

(b) Items which are purchased for charity.

c)

(c) Items which are purchased for resale.

d)

(d) Items without any defect.

16.

Personal Accounts are related to Individuals, Banks, Companies, etc.

a)

True

b)

False

17.

The rule ‘Debit what comes in Credit what goes out’ is applicable to:-

a)

(a) Personal Account

b)

(b) Real Account

c)

(c) Nominal Account

d)

(d) Liability Account

18.

Creditors are the (a)   users of accounting.

19.

Management is the (a)   users of accounting.

20.

Double entry system has two aspects_______and _________

(a)  

21.

Goods purchased on credit from Ram should be recorded as:

a)

Purchase A/c Dr. To Cash A/c

b)

Purchase A/c Dr. To Ram A/c

c)

Ram A/c Dr. To Purchase A/c

d)

Cash A/c Dr. To Purchase A/c

22.

Owner withdrew goods for personal use. The entry will be:

a)

Drawings A/c Dr. To Purchases A/c

b)

Purchases A/c Dr. To Drawings A/c

c)

Drawings A/c Dr. To Cash A/c

d)

Capital A/c Dr. To Purchases A/c

23.

Which of the following transactions will not require a journal entry?

a)

Goods purchased on credit

b)

Cash received from debtor

c)

Goods destroyed by fire

d)

Signing an agreement to buy goods in the future

24.

If the Assets of a business are ₹80,000 and Liabilities are ₹30,000, then Capital will be:

a)

₹1,10,000

b)

₹50,000

c)

₹80,000

d)

₹30,000

25.

Which of the following transactions will reduce both Assets and Capital?

a)

Cash paid to creditors

b)

Goods withdrawn by the proprietor for personal use

c)

Goods purchased on credit

d)

Commission received in cash