Accounting For Managers (AFM)

MBA
Tuesday, 15 September 2015

AFM MCQ Question Bank

1)The accounting process involves in recording:
A)  Quantifiable economic event 
B)  Non quantifiable economic event 
C)  All of them
D)  None of them

2) In accounting an Economic event is referred to as:

A)  Cash 
B)  Bank statement 
C)  Transaction
D)  Exchange of money

3) Identify the correct sequence of accounting process

A)  Communicating→Recording→Identifying 
B)  Recording→Communicating→Identifying 
C)  Identifying→communicating→recording
D)  Identifying→recording→communicating

4) Bookkeeping mainly concerns with which part of accounting process?

A)  Analysing 
B)  Preparing financial statements 
C)  Recording financial information
D)  Auditing the books of accounts

5) Financial accounting provides financial information to all of the following external users
except:
A)  Government agencies 
B)  investors 
C)  Creditors
D)  Managers

6) For which step of accounting process the accountants of business entity prepare financial
statements?
A)  Identification of economic event 
B)  Communication of financial information 
C)  Recording financial information
D)  Making decisions about business
7) Keeping the log of financial information in books of original entries is called 
A)  Recording 
B)  summarizing 
C)  Grouping
D)  Processing

8) Auditing is what?
A)  Reporting the financial information 
B)  Examination of financial statements 
C)  Preparation financial statements
D)  maintaining the ledger records

9) Which of the following is the external user of financial statements?

A)  Manager of the business 
B)  CEO of the business 
C)  Creditor of the business
D)  Controller of the business 

10) Which of the following is the internal user of financial statements?

A)  Creditor of the business 
B)  Government agency 
C)  Shareholder of the business 
D)  Manager of the business

11) The going concern concept assumes that

A)  The entity continue running for foreseeable future
B)  The entity continue running until the end of accounting period
C)  The entity will close its operating in 10 years
D)  The entity can't be liquidated 

12 )American companies prepare their their financial statement in dollars whereas Japanese
companies produce financial statements in yens. Ths is an example of:
A)  Stable monetary unit Concept
B)  Unit of measurement Concept
C)  Money value concept
D)  Current swap concept

13) Which of the following is time span into which the total life of a business is divided for the
purpose of preparing financial statements? 
A)  Fiscal year 
B)  Calendar year 
C)  Accounting period
D)  Accrual period
14) Which of the following is not regarded as the fundamental concept that is identified by IAS-1
A)  The going concern concept 
B)  The septate entity concept 
C)  The prudence concept
D)  Correction concept

15) Using "lower of cost and net realizable value" for the purpose of inventory valuation is the
implementation of which of the following concepts?
A)  The going concern concept 
B)  The septate entity concept 
C)  The prudence concept
D)  Matching concept

16) The concept of separate entity is applicable to which of following types of businesses?

A)  Sole proprietorship 
B)  Corporation 
C)  Partnership
D)  All of them

17) Office equipment is a ________ asset for a computer manufacturer and the same office
equipment is a _________ asset for a company that deals in these equipments
A)  Current, Fixed 
B)  Fixed, intangible 
C)  Tangible, intangible 
D)  Fixed, current 
18) Financial statements are prepared mainly for
A)  Internal users of financial information 
B)  External users of financial informaiton 
C)  Creditors of the business
D)  Managers of the busienss

19) If the total liabilities of a business decrease by $5000 what will be the effect on total asset?
(assuming the amount of capital remain same) 
A)  Remain constant 
B)  Decrease by $5000 
C)  Increase by $5000
D)  Increase by $10,000

20) If the business's owner withdraws cash for his/her personal use what will be the effect on
capital?
A)  Increase in capital 
B)  Remain the same 
C)  Decrease in capital
D)  No effect on capital 

21) Which of the following accounts will be credited if a company purchases building for cash?
A)  Capital account
B)  Fixed assets account
C)  Building account
D)  Cash account 
22) Discount for quick repayment of debt is normally referred as
A)  Trade discount
B)  Prompt payment discount
C)  Cash discount
D)  Bulk discount

23) The first step in accounting process is

A)  Recording the transaction
B)  Identifying the transaction 
C)  Posting the transaction
D)  Preparing the source documents
24) In which of the following orders data is entered in journal?
A)  Alphabetical order
B)  Numeric order
C)  Bullets order
D)  Chronological order 

25)_________ is the evidence that a transaction took place

A)  Source documents
B)  Ledger
C)  Bonds
D)  Journals

26) Which of the following will be debited if a business purchases goods on credit?

A)  Cash
B)  Debtor
C)  Creditor
D)  Purchases

27) Which of the following accounts will be debited if the business's owner withdraws cash from
business for his personal use?
A)  Drawings
B)  Cash
C)  Business
D)  Stock
28) Journals are also referred as
A)  Book of entries
B)  Book of original entries
C)  T account
D)  Books of economic event
29) The standard format of journal does not include which of the following?
A)  Assets column
B)  Date column
C)  Description column
D)  Amount column
30)The Basic accounting equation is
A)  Asset=Expense +Income
B)  Assets=Cash+Capital
C)  Assets=Capital+Liabilities
D)  Assets=Expenses+Capital
1)The accounting process involves in recording:
A)  Quantifiable economic event 
B)  Non quantifiable economic event 
C)  All of them
D)  None of them

2) In accounting an Economic event is referred to as:

A)  Cash 
B)  Bank statement 
C)  Transaction
D)  Exchange of money

3) Identify the correct sequence of accounting process

A)  Communicating→Recording→Identifying 
B)  Recording→Communicating→Identifying 
C)  Identifying→communicating→recording
D)  Identifying→recording→communicating

4) Bookkeeping mainly concerns with which part of accounting process?

A)  Analysing 
B)  Preparing financial statements 
C)  Recording financial information
D)  Auditing the books of accounts

5) Financial accounting provides financial information to all of the following external users
except:
A)  Government agencies 
B)  investors 
C)  Creditors
D)  Managers

6) For which step of accounting process the accountants of business entity prepare financial
statements?
A)  Identification of economic event 
B)  Communication of financial information 
C)  Recording financial information
D)  Making decisions about business

7) Keeping the log of financial information in books of original entries is called 

A)  Recording 
B)  summarizing 
C)  Grouping
D)  Processing

8) Auditing is what?
A)  Reporting the financial information 
B)  Examination of financial statements 
C)  Preparation financial statements
D)  maintaining the ledger records

9) Which of the following is the external user of financial statements?

A)  Manager of the business 
B)  CEO of the business 
C)  Creditor of the business
D)  Controller of the business 

10) Which of the following is the internal user of financial statements?

A)  Creditor of the business 
B)  Government agency 
C)  Shareholder of the business 
D)  Manager of the business

11) The going concern concept assumes that

A)  The entity continue running for foreseeable future
B)  The entity continue running until the end of accounting period
C)  The entity will close its operating in 10 years
D)  The entity can't be liquidated 

12 )American companies prepare their their financial statement in dollars whereas Japanese
companies produce financial statements in yens. Ths is an example of:
A)  Stable monetary unit Concept
B)  Unit of measurement Concept
C)  Money value concept
D)  Current swap concept

13) Which of the following is time span into which the total life of a business is divided for the
purpose of preparing financial statements? 
A)  Fiscal year 
B)  Calendar year 
C)  Accounting period
D)  Accrual period

14) Which of the following is not regarded as the fundamental concept that is identified by IAS-1
A)  The going concern concept 
B)  The septate entity concept 
C)  The prudence concept
D)  Correction concept

15) Using "lower of cost and net realizable value" for the purpose of inventory valuation is the
implementation of which of the following concepts?
A)  The going concern concept 
B)  The septate entity concept 
C)  The prudence concept
D)  Matching concept

16) The concept of separate entity is applicable to which of following types of businesses?

A)  Sole proprietorship 
B)  Corporation 
C)  Partnership
D)  All of them

17) Office equipment is a ________ asset for a computer manufacturer and the same office
equipment is a _________ asset for a company that deals in these equipments
A)  Current, Fixed 
B)  Fixed, intangible 
C)  Tangible, intangible 
D)  Fixed, current 
18) Financial statements are prepared mainly for
A)  Internal users of financial information 
B)  External users of financial informaiton 
C)  Creditors of the business
D)  Managers of the busienss

19) If the total liabilities of a business decrease by $5000 what will be the effect on total asset?
(assuming the amount of capital remain same) 
A)  Remain constant 
B)  Decrease by $5000 
C)  Increase by $5000
D)  Increase by $10,000
20) If the business's owner withdraws cash for his/her personal use what will be the effect on
capital?
A)  Increase in capital 
B)  Remain the same 
C)  Decrease in capital
D)  No effect on capital 

21) Which of the following accounts will be credited if a company purchases building for cash?
A)  Capital account
B)  Fixed assets account
C)  Building account
D)  Cash account 
22) Discount for quick repayment of debt is normally referred as
A)  Trade discount
B)  Prompt payment discount
C)  Cash discount
D)  Bulk discount

23) The first step in accounting process is

A)  Recording the transaction
B)  Identifying the transaction 
C)  Posting the transaction
D)  Preparing the source documents
24) In which of the following orders data is entered in journal?
A)  Alphabetical order
B)  Numeric order
C)  Bullets order
D)  Chronological order 
25)_________ is the evidence that a transaction took place
A)  Source documents
B)  Ledger
C)  Bonds
D)  Journals

26) Which of the following will be debited if a business purchases goods on credit?

A)  Cash
B)  Debtor
C)  Creditor
D)  Purchases

27) Which of the following accounts will be debited if the business's owner withdraws cash from
business for his personal use?
A)  Drawings
B)  Cash
C)  Business
D)  Stock
28) Journals are also referred as
A)  Book of entries
B)  Book of original entries
C)  T account
D)  Books of economic event
29) The standard format of journal does not include which of the following?
A)  Assets column
B)  Date column
C)  Description column
D)  Amount column
30)The Basic accounting equation is
A)  Asset=Expense +Income
B)  Assets=Cash+Capital
C)  Assets=Capital+Liabilities
D)  Assets=Expenses+Capital

Unknown at 03:58
Share

2 comments:

1.

amar27 June 2018 at 03:11

nice blogs about Accounting Fundamental and Preparing Financial Statements

at The Accounting Fundamental and Preparing Financial Statements training in
bangalore

Reply

2.

swaroop29 July 2020 at 06:21

I like the blog format as you create user engagement in the complete article.
Thanks for the informative posts.

Web Designing Training in Chennai

Web Designing Course in Chennai

Web Designing Training in Bangalore

Web Designing Course in Bangalore

 Web Designing Training in Hyderabad

Web Designing Course in Hyderabad

Web Designing Training in Coimbatore

Web Designing Training

Web Designing Online Training

Reply

›
Home
View web version
About Me

Unknown
View my complete profile
Powered by Blogger.