Accounting and Financial Management

Unit - I

1. In all transactions are expressed and interpreted in terms of money.

(a) Money Measurement Concept
(b) Dual Aspect Concept
(c) Revenue Realisation Concept
(d) Business Entity Concept
2. Revenue received from the sales of goods and services to the customers is measured in __________.
(a) Money Measurement Concept
(b) Dual Aspect Concept
(c) Revenue Realisation Concept
(d) Business Entity Concept
3. The amount which the proprietor has invested in the business is .
(a) Capital
(b) Credit
(c) Debit
(d) Assets
4. is an art of recording business transaction in the book of accounts.
(a) Document writing
(b) Book-keeping
(c) Selling
(d) Purchasing
5. is a written document in support of transaction.
(a) Drawings
(b) Capital
(c) Voucher
(d) Receipt
6. refers to the financial obligations of business.
(a) Liabilities
(b) Expenses
(c) Credit
(d) Debit
7. Owner of the business is called .
(a) Creditor
(b) Debtor
(c) Proprietor
(d) Owner
8. is an acknowledgement for cash received.
(a) Drawings
(b) Capital
(c) Voucher
(d) Receipt
9. The debits owing to others by the business is known as .
(a) Liabilities
(b) Expenses
(c) Credit
(d) Debit
10. Assets – Liabilities = ?
(a) Capital
(b) Drawings
(c) Credit
(d) Debit
11. Purchases return means goods returned to the supplier due to ________.
(a) Good quality
(b) Defective quality
(c) Super quality
(d) Effective quality
12. Amount spent in order to produce and sell the goods and services is called .
(a) Liabilities
(b) Expenses
(c) Credit
(d) Debit
13. The incoming aspect of the transaction is called as .
(a) Liabilities
(b) Expenses
(c) Credit
(d) Debit
14. Machinery is an example of .
(a) Capital account
(b) Real account
(c) Personal account
(d) Nominal account
15. Capital account is an example of .
(a) Capital account
(b) Real account
(c) Personal account
(d) Nominal account
16. is an example of intangible a/c.
(a) Real account
(b) Goodwill account
(c) Drawings account
(d) Cash account
17. “Debit the Receiver and Credit the Giver” is applicable to ___________ account.
(a) Personal
(b) Real
(c) Nominal
(d) None of the these
18. Goods worth Rs. 500 taken by the owner for his personal use should be credited to _____.
(a) Sales account
(b) Drawings account
(c) Purchases account
(d) Expenses account
19. Transactions are initially recorded in the _______.
(a) Trail Balance
(b) Ledger
(c) Journal
(d) Balance sheet
20. The journal is a book of entry.
(a) Original
(b) All cash transactions
(c) Final
(d) Credit
21. The process of transferring entries from Journal to the Ledger is called .
(a) Journalising
(b) Posting
(c) Balancing
(d) Carrying
22. Accounts having credit balance is closed by writing .
(a) By Balance c/d
(b) To Balance c/d
(c) By Balance b/d
(d) To Balance b/d
23. The _______________ can be defined as “a list of all balances standing in the Ledger Accounts”
(a) Journal
(b) Ledger
(c) Trail balance
(d) Trading account
24. The Trading and Profit and Loss A/c is prepared to find out
(a) Profit or Loss
(b) Only Profit
(c) Only Loss
(d) Both Profit and Loss
25. is prepared to find out the arithmetic accuracy of the accounts.
(a) Journal
(b) Ledger
(c) Trail balance
(d) Trading account
26. is enabled the trader to find out gross profit or loss.
(a) Journal
(b) Ledger
(c) Trail balance
(d) Trading account
27. shows the financial position of a business.
(a) Balance sheet
(b) Trading account
(c) Profit and Loss account
(d) Trail balance
28. A __________ needs to be drawn up before the final accounts are prepared.
(a) Balance sheet
(b) Trading account
(c) Profit and Loss account
(d) Trail balance
29. Revenue account of trading concern is divided into __________ part.
(a) One
(b) Two
(c) Three
(d) Four
30. Statement that is prepared at the close of accounting period is _________.
(a) financial statement
(b) error statement
(c) quit statement
(d) statement