My Mother and Me

My Mother and Me
"My Mother" - Mrs.Vedambal 96 years young

Tuesday, June 28, 2011

Financial Accounting with Elementary Costing (For SAS Exams)

Chapter- 1 : Accountancy Introduction.

Objective Questions:-
Chapter-1 : Accountancy Introduction
Q1. Accountancy is:
(a) A Science                      (b) An art 
 (c) Both science and art    (d) None of the above

Q2. Which of the following is the most scientific system of Book-Keeping and
(a) Single Entry System            (b) Cash System
 (c) Indian (Mahajani) System  (d) Double Entry System

Q3. Which of the following is not a fixed asset?
(a) Building            (b) Bank Balance
 (c) Plant                 (d) Goodwill

Q4.Which of the following is a current Asset ?
(a) Furniture           (b) Machinery
 (c) Stock                 (d) Patent

Q5. Amount brought by owner to start business is called :
(a) Asset                     (b) Capital 
(c) Reserve                 (d) Drawings

Q6.The stage at which transactions are analysed in terms of debit and credit.
(a) Journal Entries           (b) Ledger Posting
 (c) Trial Balance             (d) Final Accounts

Q7. Accounting is:
(a) The are of recording business transactions in a set of books.
(b) Preparation of various financial statements for measuring performance of a firm.
(c) The art of recording,classifying and summarizing in a significant manner and 
      in terms of money transactions and events which are in part atleast of a financial
      character and interpreting the result thereof.
(d)  The art of measuring profit and loss of a firm.

Q8. Who among the following are users of accounting information of a firm.
(i) Owners,                    (ii) Lenders,
(iii) Employees,             (iv) Government
(a) (i) only                          (b) (i)and (ii)only
 (c) (i),(ii)and (iii)only        (d) All

Q9. Double Entry System means recording of transaction in :
(a) both sides of an account
(b) debit side of two accounts
(c) credit side of two accounts
(d) debit side of one or more accounts and credit side
     of one or more accounts.

Q10.The stage of accounting cycle which gives financial position of a firm.
(a) Journal Entries                          (b) Posting in ledger accounts
(c) Preparation of Trial Balance     (d) Final Accounts

Q11.Which of the following concept is corret?
(a) Capital = Assets-Liabilities   (b) Capital = Assets + Liabilities
(c) Capital = Liabilities-Assets    (d) Capital = Assets + Profits

Q12.The first stage of double entry system is :
(a) Entry in Primary records      (b) Classification
(c) Summarizing                           (d) Analysing

Answers :- 1.(c),    2.(d),    3.(b),     4..(c),   5.(b),   6.(a),   7.(c),   8.(d),
                   9.(d) ,  10.(d),   11.(a),   12.(a)