Accounting Concepts and Principles Quiz
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kpananthakrishnan183Accounting Concepts and Principles Quiz
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kpananthakrishnan183ACCOUNTING
1. Accounting furnishes data on
a) Income and cost for the managers
b) Financial conditions of the institutions
c) Company’s tax liability for a particular year
d) All the above
2. Any written evidence in support of a business transaction is called
a) Journal b) Ledger c) Ledger posting d) Voucher
3. Fixed assets are held by business for _____.
a) Converting into cash b) Generating revenue
c) Resale d) None of the above
[Link] cost concept requires the valuation of an asset at
a) Original cost b) Replacement value
c) Net realizable value d) Market value
5. Profit and loss is calculated at the stage of
a) Recording b) Posting c) Classifying d) Summarizing
6. Which of the following is not the main objective of accounting?
a) Systematic recording of transactions
b) Ascertaining profit or loss
c) Ascertainment of financial position
d) Solving tax disputes with tax authorities
7. The comparison of financial statement of one year with that of another is
possible only when ____________ concept is followed
a) Going concern b) Accrual c) Consistency d) Materiality
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8. Differential costs are obtained on the basis of …..
a) Absorption costing b) Marginal Costing
c) Both (a) &(b) d) None of the above
[Link] one of the following is related to margin of safety?
a) Sales- Break even sales b) Actual Sales- Fixed cost
c) Contribution + Break even sales d) Sales- Profit
[Link] main object of cost accounting is:
a) To record day to day transactions of the business
b) To reveal managerial efficiency
c) To ascertain true cost of products and services
d) To determine tender price
11. Accounting principles are generally based upon:
a) Practicability b) Subjectivity
c) Convenience in recording d) None of the above
12.(Standard Quantity- Actual Quantity)* ( Standard Price)=
a) Material Usage Variance b) Material Mix Variance
c) Material cost Variance d) Material price Variance
[Link] of the following is not an efficiency ratio?
a) Asset turnover b) Stock Turnover
c) Debtor days d) Interest cover
[Link] of the following is NOT a core element of the fraud triangle?
a) Opportunity b) Pressure c) Rationalization d) Compliance
[Link] Budgeting is related to
a) Long term assets b) Short term assets
c) Long term and short term assets d) Fixed assets
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16. Working Capital management is managing
a) Long term assets b) Short term assets and liabilities
c) Long term liabilities d) Only short term assets
[Link] fixed proportion of working capital should be generally financed from the
capital sources.
a) fixed b) variable c) semi-variable d) borrowed
18. Factoring is a form of financing
a) payable b) receivables c) borrowings d) debts.
19. Ordering cost is the cost of materials.
a) selling b) purchasing c) stocking d) financing.
[Link] overall financial condition of the organization is listed in the
a) income statement b) profit and loss statement
c) balance sheet d) statement of cash flows
[Link] earnings are
a) An indication of a company's liquidity
b) The same as cash in the bank
c) Not important when determining dividends
d) The cumulative earnings of the company after dividends.
[Link] of the following is not the goal of Management Information Systems
(MIS)?
a) Assist in the decision making process
b) Recruitment of people for the organization
c) Providing necessary information at all levels of management
d) Facilitate the decision making process
[Link] is the main focus of MIS data?
a) Strategic trends b) Day-to-day operations
c) unstructured decision-making d)Financial transactions
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[Link] of the following item is shown in the Receipt and Payment account?
a) Only items of capital nature.
b) Only items of revenue nature which are received during the period of
accounts.
c) Only items of revenue nature pertaining to the period of accounts.
d) Both the items of capital and revenue nature which are received during the
period of accounts.
[Link] income arising from special fund will be credited to
a) General fund in the Balance Sheet
b) Receipt and Payment account
c) Income and Expenditure account
d) Special fund in the Balance sheet
[Link] in Bank Balance as per Pass book and Cash book may arise on account
of
a) Cheque issued but not presented b) Cheque issued but dishonoured
c) Cheque deposited not credited by bank d) All of the above
[Link] analysis stands for:
a) Strength, Wealthy, Occasional, Treatment
b) Strength, Weaknesses, Opportunity, Threat
c) Strength, Weaknesses, Opportunity, Treat
d) Strength, Weaknesses, Optimistic, Threat
28. Consolidated summary of ledger accounts of a Co operative society is
(2018/2022)
a) Receipts and Disbursement statement b) Profit and loss account
c) Trial balance d) Balance sheet
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[Link] break even point is the point at which
a) There is no profit, no loss
b) Contribution margin is equal to total fixed cost
c) Total revenue is equal to total cost
d) All of the above
[Link] Receipts and payments account is a_______.
a) Real Account b) Nominal Account
c) Personal Account d) Impersonal Account
[Link] Revenue account prepared by a not-for-profit organisation is called.
a) Receipt and Payment b) Profit and Loss A/c
c) Income and Expenditure A/c d) Statement of affairs
[Link] and Expenditure A/c is prepared in order to ascertain_______.
a) Profit or Loss b) Surplus or deficit
c) Cash in hand and at bank d) Assets and Liabilities
[Link] and Expenditure A/c is a______ account.
a) Nominal b) Real c) Personal d) None of these
[Link] is prepared for a____________
a) Indefinite period b) Definite period
c)Period of one year d)Six months
35. Which of the following is the primary goal of capital budgeting?
a) To maximize profits for shareholders.
b) To minimize costs for the firm.
c) To maximize the firm's total value.
d) To maintain a stable cash flow.
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[Link] of the following is NOT a capital budgeting decision?
a) Purchasing new equipment.
b) Investing in a new factory.
c) Deciding whether to hire a new employee.
d) Making a large investment in an outside business entity.
37. Which capital budgeting method considers the time value of money?
a) Payback period. b) Accounting rate of return.
c) Net present value (NPV). d) Average cost of capital.
38. Which of the following is NOT a factor in evaluating the risk of a capital
budgeting project?
a) The project's expected cash flows.
b) The company's cost of capital
c) The project's payback period.
d) The project's potential for unforeseen events.
[Link] of the following is a weakness of the payback period method?
a) It doesn't consider the time value of money.
b) It's easy to calculate.
c) It can be used to calculate a project's NPV.
d) It's a complex method.
[Link] of the following is an advantage of the Net Present Value (NPV) method?
a) It doesn't consider the time value of money.
b) It's easy to understand.
c) It considers all cash flows and the cost of capital.
d) It doesn't require much calculation.