1.

According to ------------------- concept it is assured the business will last for long time

1. Accounting entity concept

2. Going concern

3. Money measurement concept

4. Dual aspect principal

Answer-1 Post-Your-Explanation-1

2. Royalty is an

1. Agreement

2. Contract

3. Mutual action

4. None of these

Answer-2 Post-Your-Explanation-2

3. The modern system of accounting owes to

1. AICPA

2. Luca Pacioli

3. GAAP

4. None of these

4. Which loss is due to the nature of goods consigned

1. Actual loss

2. Simple loss

3. Abnormal loss

4. Normal loss

5. AICPA Means

1. American Institute of Certified Public Accountants

 2. American Institute of Campus Prediction Ability

3. American Intellectual of Certified Public Accountants

4. American Institute of Certified Person Account

6. Expand AICPA

1. American Institute of Certified Public Accountants

2. American Institute of Corporate Public Account

3. Accounting Institutions of Conventions Public Account.

4. None of these.

7. Interest on drawings is charged on

1. Asset

2. Capital

3. Inventory

4. Drawing

8. Which is the material things or possessions of the business

1. Asset

2. Liability

3. Capital

4. None of these.

9. Any irrecoverable portion of sundry debtors is known as Â

1. Bad debt

2. Further bad debt

3. Provision for bad debt

4. Provision for doubtful debts

10. Which book is known as total of debit and credit Â

1. Balance sheet

2. Trial balance

3. Journal

4. Ledger

11. Which one is list of all account balances

1. Balance sheet
2. Ledger
3. Profit and loss a/c
4. Trial balance

Answer-11 Post-Your-Explanation-11

12. Recording of financial transactions is done in

1. Books
2. Journal
3. Trial balance
4. None of these.

13. Which is an account prepared to record all expenses at branch.

1. Branch account
2. Expense account
3. Branch expense a/c
4. None of these.

14. Which account is prepared wth a view to ascertain the gross profit of branch.

1. Branch account
2. Branch adjustment a/c
 3. Branch expense a/c
4. None of these.

15. Which account is prepared to exercise control over the branch cash.

1. Branch account
2. Branch expense account
3. Branch cash account
4. None of these.

16. On which condition we  made adjustment for closing stock as well as opening
stock in the purchaseaccount

1. By buying credit purchase

2. By buying
3. Adjusted purchases Â
4. On installment basic

17. Amount of cash or other assets withdrawn by owner for his personal purpose
called

1. Capital
2. Drawing
3. Withdrawal of cash
4. None of these.

18. Interest on capital is credited to----------------------- A /C

1. Capital a/c
2. Proprietors a/c
3. Combine a/c
4. Interest on capital a/c
19. Rent paid, salary paid which type of expenditure

1. Capital expenditure
2. Revenue expenditure
3. Deferred revenue expenditure
4. Capital receipt

20. Liability for partly paid investment what is this

1. Capital expenditure
2. Revenue expenditure
3. Deferred revenue expenditure
4. Contingent liability

21. Amount received during the course of trading operations are called

1. Capital receipt
2. Revenue expenditure
3. Capital expenditure
4. Revenue receipt

22. Which transaction is one where in items are exchanged for other items.

1. Cash
2. Credit
3. Barter
4. None of these.

23. What represents the amount invested by owner in to business

1. Cash
2. Stock
3. Capital
4. None of these.

24. Transit items may either be

 1. Cash and credit transit
2. Cash in transit & goods in transit
3. Credit and barter transit
4. None of these.

25. A shipment of goods by a manufacturer to an agent tobe sold by him on

commission basis on the risk    and account of the former called ---------------
----

1. Consigning
2. Consignment
3. Agreement
4. None of these.

26. Pass entry for consignors expenses

1. Consignment a/c De To Cash     Â

2. Consignment a/c Dr  To credit     Â
3. Cash a/c Dr  To consignee    Â
4. None of these.

27. The person who send the goods to the agent to be sold by him on commission is
calle

1. Consignor
2. Consignee
3. Merchant
4. None of these

28. The head office prepares a combined balance sheet called -----------------Â

1. Consolidated balance sheet

2. Balance sheet of branch
3. Head balance sheet
4. None of these.
29. Any amount spend on increasing the earning capacity of a business is known
as Â

1. Contigent liability Â
2. Capital expenditure
3. Revenue expenditure
4. Capital receipt

30. Expenditure incurred during one year known as Â

1. Contigent  liability
2. Capital expenditure
3. Revenue expenditure
4. Capital receipt

31. What is the expenditure of revenue nature

1. Contingent liability
2. Capital expenditure
3. Revenue expenditure
4. Deferred revenue expenditure

32. What is to the original form of accounting

1. Cost accounting
2. Management accounting
3. Financial accounting
4. None of these

33. The amount of royalty payable is an expense to the lessee and is ------------------
 in the royaltyaccount

1. Credited
2. Debited
3. Deducted
4. None of these
34. Who is a person to whom business occurs money Â

1. Creditor
2. Debtor
3. Proprietor
4. None of these.

35. Assets acquired for long term use in business called

1. Current asset
2. Fixed asset
3. Wasting asset
4. None of these.

36. A person who owes money to the business is a

1. Debtor
2. Creditor
3. Investor
4. None of these

37. Branches keeping full system of accounting is called

1. Dependent  branches
2. Independent branches
3. Simple branches
4. None of these.

38. The head office prepares branch account to find out ------------------- earned by
branch

1. Dividend
2. Revenue
3. Capital
4. Profit
39. Payment of monthly rent to land lord isÂ

1. Economic event
2. Non economic event
3. Substantial event
4. None of these.

40. What is short working? Â

1. Excess of minimum rent over actual royalty

2. Below of minimum rent
3. Equal to minimum rent
4. Above to royalty

41. What is the another term of minimum rent

1. Fixed and copy right

2. Dead rent and fixed rent
3. Patent and copy right
4. Fixed and dead rent

42. Assets which have no real value but are shown in books of account for technical
reasons are called

1. Fixed asset
2. Current asset
3. Fictions asset
4. None of these.

43. Assets which are held for a short period called

1. Fixed asset
2. Contingent asset
3. Current asset
4. None of these.
44. Recouping of short working arise in

1. Future
2. Present
3. Past
4. None of these

45. Which concept facilitates recording of business events on a uniform basis.

1. Going concern
2. Accounting entity
3. Money measurement
4. None of these.

46. Which principal have separate entity

1. Going concern concept

2. Money measurement concept
3. Accounting period concept
4. Accounting entity concept

47. Things which are purchased by business for resale called

1. Goods
2. Closing stock
3. Lease housing
4. None of these.

48. What represents goods sent by head office to the branch or by the branch to the
head office but not received by other

1. Goods in transit
2. Cash in transit
3. Barter transit
4. None of these
49. Managers commission is calculated on

1. Gross profit
2. Notional profit
3. Net profit
4. Sales

50. The amount of reserve deducted from the

1. Gross profit
2. Managers commission
3. Net profit
4. None of these

51. The accounts for the dependent branches are maintained only in the books of

1. Head office
2. Sub office
3. Main office
4. None of these

52. Adjustment given in trial balance is known as

1. Hidden adjustment
2. Partly adjustment
3. Adjustment
4. Provision for discount on debtors

53. Trading and profit and loss account is known as ----------------------- statement

1. Income
2. Expense
3. Position
4. Revenue

54. Prepaid expenses is ------------------- to the business

 1. Income
2. Expense
3. Asset
4. Liability

55. The term ------------------ denotes the cost of services and things used for
earning revenue

1. Income
2. Expense
3. Loss
4. None of these.

56. Which Expenditure is incurred to maintain the business or to keep the assets on
good working condition

1. Income
2. Dividend
3. Revenue
4. None of these.

57. Balance sheet show -------------------- and ------------------- of fund

1. Incomes and losses

2. Sources and applications
3. Debit and Credit
4. Asset and liability

58. The process of transferring items from branch books to the head office books and
the preparation ofconsolidated balance sheet is called ---------------------Â

1. Incorporation of branch trial balance

2. Trial balance
3. Branch balance sheet
4. None of these.
59. Branches not keeping full system of accounting called

1. Independent branches
2. Partial branches
3. Dependent branches
4. None of these

60. In which stage short working  arise

1. Initial stage of production

2. Sales
3. Buying of raw materials
4. Last stage of production

61. Branches may be classified in to

1. Inland branches and foreign branches

2. Account branches and proper branch
3. Main branch and subordinate branch
4. None of these

62. Assets having definite shape and physical existence are called

1. Intangible asset
2. Current asset
3. Fictions asset
4. Tangible asset

63. Transaction between branches are called-------------Â

1. Inter-Â branch transactions

2. Branch transaction
3. Internal transaction
4. None of these.

64. What is the journal entry of interest on capital Â

 1. Interest on capital a/c  Dr  To capital a/c
2. Drawings a/c Dr To interest on drawings
3. Profit &loss a/c Dr To discount Debtors
4. Capital a/c Dr To Interest on capital.

65. Which is the statement sent by the consignee to the consignor regarding the sale
of goods consigned.

1. Invoice
2. Bill
3. Account sales
4. None of these.

66. The price of goods sent by head office to branch at a price higher than cost price
called

1. Invoice price
2. Actual price
3. Unloaded price
4. None of these.

67. Which is one which has been sent by one party but not received by the other
before theclosing books of accounts.

1. Item of transaction
2. Transit item
3. Credit transaction
4. None of these.

68. Principal books of accounting is known as

1. Journal
2. Profit and loss
3. Ledger
4. Balance sheet
69. What is an example of wasting asset

1. Land
2. Fixed asset
3. Stock
4. Mines

70. Who is the person take property on the lease agreement

1. Lessor
2. Lessee
3. Payee
4. None of these

71. Who is the person tends the ownership right of property

1. Lessor
2. Lessee
3. Payer
4. None of these

72. Which are the two persons in lease agreement

1. Lessor and Lessee

2. Payer and payee
3. Drawer and drawee
4. None of these

73. Which of these is accounting equation?

1. Liability = Asset + Capital

2. Asset = Liability – Capital
3. Capital = Asset + Liability
4. Asset = Liability +Capital.

74. What is the gross decrease in the assets or gross increase in liabilities.
 1. Loss
2. Revenue
3. Profit
4. Expense

75. The person who introduced double entry principle

1. Luca Pacioli (and da vinci)

2. William
3. Luca’s
4. None of these.

76. In which principal we say that if depreciation is charged on fixed installment basis
it should beDone year after year

1. Materiality concept
2. Consistency concept
3. Conservatism concept
4. Time line principal

77. The person to whom the goods are sent for sale on commission basis is calle

1. Merchant
2. Consignor
3. Consignee
4. None of these.

78. What type royalty to payable on the basis of sale

1. Minning royalty
2. Patent  royalty
3. Copy right royalty
4. None of these

79. Which type of account is entered in balance sheet Â

 1. Nominal
2. Real
3. Capital
4. Expense

80. Which type of account are entered in profit & loss a/c

1. Nominal account
2. Personal account
3. Real account
4. Other

81. What are the two types of losses of goods.

1. Normal and abnormal losses

2. Simple loss and pure loss
3. Executive and execute loss
4. None of these

82. Value of goods remaining at the end of a period

1. Opening stock
2. Closing stock
3. Stock
4. None of these.

83. What is the equation of gross profit Â

1. Opening stock +Purchase +Direct expense – Closing stock

2. Sales –Cost of goods sold
3. Sales returns –Cost of goods sold
4. Sales + Cost of goods sold

84. Minning royalty and patent royalty are payable on the basis of

1. Output
 2. Sales
3. Output and sale
4. None of these

85. The commission given by consignor to the consignee for taking additional risks of
recovery of debts on account of sales made on credit is known as ----------------------

1. Over riding commission

2. Delcredre  commission
3. Normal commission
4. None of these.

86. The agreement between business house and the owner of the right is called

1. Patent Right
2. Royalty agreement
3. Minning agreement
4. Copy right

87. Outstanding expenses are those expenses which have became---------during the
accounting year.

1. Payable
2. Payed
3. Received
4. Receivable

88. Balance sheet is known as ----------------- statement Â

1. Positional
2. Expense
3. Income
4. Expenditure

89. Trading account show ------------------- incomes and losses

 1. Production
2. Sales
3. Manufacturing
4. Personal

90. It is a system of finding out the profit made by a head office at a branch by
preparing an accountcalled---------------------Â

1. Profit &loss a/c

2. Trading a/c
3. Branch a/c
4. None of these.

91. Abnormal loss account should be transferred to

1. Profit and loss a/c

2. Trading a/c
3. Abnormal a/c
4. None of these.

92. What is prepared at the end of the period to show the financial position of
business

1. Profit and loss account

2. Balance sheet
3. Trial balance
4. None of these

93. Interest is charged on drawings made by the proprietor it is gain to the ------------
----Â

1. Proprietor
2. Employee
3. Other
4. Business
94. Bad debt shown in adjustment is known as Â

1. Provision for bad debt

2. Bad debt
3. Further bad debt
4. Net bad debt

95. What is the major source of revenue of any business Â

1. Purchase
2. Sale
3. Dividend
4. None of these.

96. If the goods are drawn by the proprietor for personal use, the amount should
deduct from -------------------- and add to the Â

1. Purchase and drawings

2. Sales and capital
3. Drawings and cash in hand
4. Cash in hand and stock

97. Patent Rights account is a ------ account

1. Real
2. Personal
3. Nominal
4. Fictitious

98. What is an example of fixed asset

1. Receivables
2. Stock
3. Land and Building
4. None of these.
99. Debit aspect is known as ------------------and Credit aspect is known as ----------
------------------.

1. Receiving and giving

2. Liability and asset
3. Expense and Gains
4. Income and Expenses

100. Which one of these are not the function of account

1. Recording
2. Classifying
3. Summerising
4. Statement

101. Which one of these not shown on profit & loss a/c

1. Rent
2. Bad debt
3. Wages
4. Salaries

102. The amount set apart from profit for future is known as

1. Reserve
2. Capital a/c
3. Depreciation a/c
4. Cash in hand

103. The right may be enjoyed throughout the period of lease agreement is called

1. Restricted
2. Unrestricted
3. Dead rent
4. Fixed rent
104. What is the two type of recouping of short working Â

1. Restricted and unrestricted

2. Sales and output
3. Dead rent and fixed rent
4. None of these

105. Return  of goods to supplier which are defective called

1. Return outwards/purchases returns

2. Sales return
3. Outstanding return
4. None of these.

106. Which of the following are not current asset Â

1. Salary paid in advance

2. Inventory
3. Preliminary expense
4. Temporary investment

107. Branches are opened to increase

1. Sales
2. Purchases
3. Both sales and purchase
4. None of these

108. Who denotes goods bought for sale

1. Sales Â
2. Purchases
3. Expenses
4. None of these.

109. Excess of minimum rent over actual royalty is termed as

 1. Short working
2. Royalty suspense
3. Deadrent
4. Â Fixed Rent

110. Capital investments for the branches are made by

1. State office
2. Central office
3. Head office
4. None of these.

111. Trading account is

1. Statement
2. Positional a/c
3. Capital a/c
4. Account

112. Branches are units physically segregated from the main office called

1. Sub registrar office

2. Head office
3. Central Govt.
4. None of these.

113. In which principal transaction and events are recorded in the books of account
and presented in thefinancial statement in accordance with their substance and not
legality.

1. Substance over legal form

2. Time line principal
3. Materiality principal
4. Consistency principal
114. Assets having no physical existence but are represented by rights in certain
things are called----------------Â

1. Tangible asset
2. Intangible asset
3. Contingent asset
4. None of these

115. Why use prepare  trial balance

1. To check arithmetical accuracy of a/c

2. To know the financial position
3. To know the gross profit
4. To know the capital of the firm

116. For what use are preparing profit and  loss a/c

1. To find out net profit or net loss

2. To find out gross profit or gross loss
3. To know closing stock
4. To determine the sales

117. In which method trial balance is prepared with the balance of ledger account

1. Total amount Method

2. Balance Method
3. Grouping
4. Marshalling

118. Capital receipts will not affect ------------------- and ------------------a/c

1. Trading  & profit & loss a/c

2. Trading account Â
3. Profit and loss a/c and balance sheet
4. Trading a/c and trial balance
119. Adjustment given in the ---------------------- is known as hidden adjustment

1. Trial balance
2. Profit & loss a/c
3. Trading
4. Ledger

120. The lessee may be permitted to recoup short working for a few years only is
called

1. Unrestricted
2. Restricted
3. Minimum rent
4. None of these

121. Which principal is known as basic principal of accounting

1. verifiable  objective principal

2. matching principal
3. Dual aspect principal
4. Materiality principal

122. Which one of these not shown in trading account

1. Wages
2. Octroi
3. Closing stock
4. Carriage outward