Introduction to Financial Accounting – Corporate and Management Accounting MCQ

The fee paid to a lawyer for checking whether all the papers are in order before the land is purchased is ______ But if later a suit is filed against the purchaser, the legal costs will be______

Amounts paid for wages, salary, carriage of goods, repairs, rent, and interest, etc. are items of

All sums spent up to the point an asset is ready for use should also be treated as

Depreciation on fixed assets is

Which of the following is/are not an example of capital expenditure

Costs incurred to acquire an asset are but costs incurred to keep them in working condition or to defend their ownership are

Amounts paid for wages, salary, carriage of goods, repairs, rent, and interest, etc. are items of

Which of the following is/are examples of capital expenditure?

Which of the following is/are examples of capital expenditure?

There are certain expenses that may be in the nature of revenue but their benefit may not be consumed in the year in which such expenditure has been incurred; rather the benefit may extend over a number of years are termed as

Expenses whose benefit expires within the year of expenditure and which are incurred to maintain the earning capacity of existing assets are termed as

is that expenditure that results in the acquisition of an asset or which results in an increase in the earning capacity of a business.

Which of the following statements is correct?

NSZ Ltd. makes payments to its sundry creditors through cheques and the cash discount received on these payments is recorded in the triple-columnar cash book. In the event of dishonor of any such cheques, the discount so received should be written back through:(i) A debit to discount column of the cash book.(ii) A credit to the discount column of the cash book.(iii) A credit to the bank column of the cash book.(iv) A debit to discount account through journal proper.(v) A credit to creditor’s account through journal proper.

Salary paid in cash ₹ 50,000 will be recorded in

The investment was sold on credit for ₹ 1,00,000 at par will be recorded in

The investment was sold in cash for ₹ 1,00,000 at par will be recorded in

A debit note for ₹ 20,000 issued to Mr. Z for goods returned by us is to be accounted for in

Outstanding salary ₹ 34,000 to be provided in the accounts will be recorded in

A bill receivable of ₹ 10,000, which was received from a debtor in full settlement for a claim of ₹ 11,000 dishonored will be recorded in

Credit purchase of stationery worth ₹ 5,000 by a stationery dealer will be recorded in

Accounting for recovery from Mr. C of an amount of ₹ 2,000 earlier written off as bad debt will be recorded in

Goods were sold on a credit basis to Mr. Ram for ₹ 10,000. It will be recorded in

A second-hand motor car was purchased on credit from B & Co. for ₹ 10,000. It will be recorded in

An allowance of ₹ 50 was offered for early payment of cash of ₹ 1,050. It will be recorded in

At the end of the accounting year, all the nominal accounts of the ledger book are

Ledger book is popularly known as

Journal and ledger records transactions in

The process of equalizing the two sides of an account by putting the difference on the side where the amount is short is known as

Ledger is the book for

Journal is a book of:

The process of recording transaction in the ledger is known as:

The process of recording transaction in the journal is termed as:

_____ is a book of account; in which all types of accounts relating to assets, liabilities, capital, expenses, and revenues are maintained.

Ledger is the____of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded.

_____ is the principal book of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded.

Transactions that are inter-connected and have taken place simultaneously are recorded by means of a

Journal has columns.

is a book in which all the business transactions are originally recorded in chronological order and from which they are posted to the ledger accounts at any convenient time.

Journal is the book in which every transaction is recorded before being posted into the ledger.

In which order the accounting transactions and events are recorded in the books?

____includes identifying, recording, classifying, and summarizing the transactions.

The accounting cycle or accounting process includes(X) Journalizing (Summarizing)(Y) Posting to the ledger (Recording)(Z) Final account (Classifying)

Purposes of an accounting system include all the following except

‘Provisions for doubtful debts’ and ‘provision for discount on debtors’ are based on

On 31.3.2019 after the sale of goods ₹ 2,000, Neelam is left with the closing inventory of ₹ 10,000. This is

The accounting policy for inventories of X Ltd. states that inventories are valued at a lower cost or net realizable value. Which accounting principle is followed in adopting the above policy?

Mr. Bhandari purchased a car for ₹ 50,000, making a down payment of ₹ 10,000 and signing a ₹ 40,000 bill payable due in 60 days. As a result of this transaction:

On 1.1.2019, CS N. S. Zad paid rent of ₹ 25,000 for Zads Professional Academy. This can be classified as

Current Assets Current liabilities =?

The rule for nominal accounts is

accounts represent assets and properties which cannot be seen, touched, or felt but can be measured in terms of money.

Accounts relating to income, revenue, gain expenses, and losses are termed as:

Which of the following types of accounts represent assets and properties which can be seen, touched, felt, measured, purchased, and sold?

The process of balancing an account involves the equalization of both sides of the account. If the debit side of an account exceeds the credit side, the difference is put on the credit side. The said balance is(i) A debit balance(ii) A credit balance(iii) An expenditure or an asset(iv) An income or a liability

Accounts that represent a certain person or group of persons are termed as

Real accounts can be further classified into

An account recording financial transactions with an artificial person created by law or otherwise are termed as

Accounts relating to properties or assets are known as

An account recording transaction with an individual human being is termed as a

Personal accounts are of the following types:

Accounts recording transactions with a person or group of persons are known as

All accounts are classified into

Property, plant, and equipment are conventionally presented in the balance sheet at

The realizable value of machinery is

The historical cost of machinery is

The present value of machinery is

The current cost of the machinery is

Book value & Market value of machinery on 31.3.2015 was ₹ 1,00,000 & ₹ 1,10,000 respectively. As of 31.3.2019, if the company values the machinery at ₹ 1,10,000, which of the following valuation principle is being followed

Generally, which of the following measurement bases are usually accepted in accounting parlance?

The determination of the number of bad debts is an accounting

A specific accounting policy refers to

It is essential to standardize the accounting principles and policies in order to ensure

When a change in accounting policy is justified?

Accounting policies followed by organizations