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Accounting and Auditing - Financial Accounting- Section 1 Online Exam Quiz

Important questions about Accounting and Auditing - Financial Accounting- Section 1. Accounting and Auditing - Financial Accounting- Section 1 MCQ questions with answers. Accounting and Auditing - Financial Accounting- Section 1 exam questions and answers for students and interviews.

1. Which accounting concept satisfies the valuation criteria.

Options

A : Going concern, Realisation, Cost

B : Going concern, Cost, Dual aspect

C : Cost, Dual aspect, Conservatism

D : Realization, Conservatism, Going concerned.

2. A trader has made a sale of Rs.75,500 out of which cash sales amounted to Rs.25,500. He showed trade receivables on 31-3-2014 at Rs.25,500. Which concept is followed by him?

Options

A : Going concerned

B : Cost

C : Accrual

D : Money measurement

3. In which of the following cases, accounting estimates are needed?

Options

A : Employs benefit schemes

B : Impairment of losses

C : Inventory obsolescence

D : All of the above

4. Deewali advance given to an employee is

Options

A : Revenue Expenditure

B : Capital Expenditure

C : Deferred Revenue Expenditure

D : Not an Expenditure

5. A firm has reported a profit of Rs.1,47,000 for the year ended 31-3-2014 after taking into consideration the following items. (i)The cost of an asset Rs.23,000 has been taken as an expense (ii) The firm anticipated a profit of Rs.12,000 on the sale of old furniture (iii) Salary of Rs.7,000 outstanding for the year has not been taken into account. (iv) An asset of Rs.85,000 was purchased for Rs.75,000 and was recorded in the books at Rs.85,000. What is the correct amount of profit to be reported in the books?

Options

A : Rs.1,47,000

B : Rs. 1,51,000

C : Rs.1,63,000

D : Rs.1,41,000

46. Sales – Gross Profit = ________

Options

A : Cost of goods sold

B : Net sales

C : Gross Sales

D : Liabilities

47. Which of the following is a Real A/c?

Options

A : Building A/c

B : Capital A/c

C : Shyam A/c

D : Rent A/c

48. Valuation of stock in accounting follows the principle of cost price or ____ whichever is lower.

Options

A : Market Price

B : Average Price

C : Net realizable value

D : None of these.

49. Which of the following is not a nominal Account?

Options

A : Outstanding salaries Account

B : Salaries account

C : Interest paid

D : Commission received

50. Mr. X is a dealer in electronic goods (refrigerator, washing machine, air conditioners, televisions, etc.) He purchased two air conditioners and installed in his showroom. In the books of X, the cost two air conditioners will be debited to

Options

A : Drawing account

B : Capital Account

C : Fixed assets

D : Purchases account

51. A trader calculated his profit as Rs.150000 on 31/03/2014. It is an

Options

A : Transaction

B : Event

C : Transaction as well as event

D : Neither transaction nor event

52. For every debit there will be an equal credit according to

Options

A : Matching concept

B : cost concept

C : Money measurement concept

D : Dual aspect concept

53. Historical cost concept requires the valuation of an asset at

Options

A : Original cos

B : Replacement value

C : Net realizable value

D : Market value

54. The comparison of the financial statement of one year with that of another is possible only when the ----------------concept is followed

Options

A : Going concerned

B : Accrual

C : Consistency

D : Materiality

55. Profit and loss is calculated at the stage of

Options

A : Recording

B : Posting

C : Classifying

D : Summarising

56. Which of the following is not the main objective of accounting?

Options

A : Systematic recording of transactions

B : Ascertaining profit or loss

C : Ascertainment of financial position

D : Solving tax disputes with tax authorities

57. An asset was purchased for Rs.1000000 with the down payment of Rs.200000 and bills accepted for Rs.800000/-. What would be the effect on the total asset and total liabilities in the balance sheet?

Options

A : Assets increased by Rs.800000 and liabilities decreased by Rs.800000

B : Assets decreased by Rs.800000 and liabilities increased by Rs.800000

C : Assets increased by Rs.1000000 and liabilities increased by Rs.800000

D : Assets increased by Rs.800000 and liabilities increased by Rs.800000

58. The rule debit all expenses and losses and credit all income and gains relates to

Options

A : Personal account

B : Real account

C : Nominal accounts

D : All

59. Matching concept means

Options

A : Assets = capital + liabilities

B : Transactions recorded at accrual concept

C : Anticipate no profit but recognize all losses

D : Expenses should be matched with the revenue of the period.

60. Reduction in the book value of an asset over a period of time is called-

Options

A : Appreciation

B : Depreciation

C : Proportion

D : Depletion

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