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
        Accountancy?
(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)