Theoretical Framework – Meaning and Scope of Accounting 0 Theoretical Framework - Meaning and Scope of Accounting 1 / 30 Q.30 Internal users of accounting information includes short-term creditors customers shareholders long - term lenders 2 / 30 Q.29 the basic objective of the book -keeping is to maintain systematic records of financial transactions to ascertain financial performance to ascertain financial position All of the above 3 / 30 Q.28 Book-keeping covers only the following activities recording & classifying recording , classifying , summarising & analysing summarising ,analysing & interpretreting identifying ,measuring & communication 4 / 30 Q.27 Management of the business are the internal users of financial statements are the end results of the transactions is a transaction are one of the external users of the financial statements 5 / 30 Q.26 According to_______dictionary for accountants,an account has been defined as a formal record of a particular type of transaction expressed in money. Kohler's Oxfords Chate Taxmann 6 / 30 Q.25 Fixed assets-Rs.5,50,000,current assets - Rs.2,25,000, current liabilities - Rs.1,50,000, bank loan - Rs.1,75,000. Capital = ? 3,50,000 5,50,000 4,50,000 6,50,000 7 / 30 Q.24 Mr.Ashok buys clothing of Rs.50,000 paying cash Rs.20,000.What is the amount of expense as per the accrual concept ? Rs.30,000 Rs,20,000 Rs,50,000 Nil 8 / 30 Q.23 Which of the following is/are can be treated as role of accountant ? Maintenance of Books of account Taxation services Investigation of accountants All of the above 9 / 30 Q.22 Which of the following is/are can be treated as role of accountant ? Personnel management Innovations & environmental scanning Advisory role in taxation All of the above 10 / 30 Q.21 Cash system of accounting is suitable in which of the following cases ? Where the organization is very small or in the case of individuals where credit transaction are almost negligible and collection are uncertain Both (a) & (b) Neither (a) & nor (b) 11 / 30 Q.20 Which of the following is/are the main function of accounting ? Allowing credit to customers Ascertaining the operational profit/loss Providing leadership to accounting staff All of the above 12 / 30 Q.19 On 31-12-2009, Total Assets and Capital were Rs. 50,000 and Rs.35,000 respectively. Find out the amount of liabilities as on 31-12-2009 85,000 15,000 35,000 50,000 13 / 30 Q.18 If the capital on the last day of the year is Rs.12,000; loss during the year is Rs.(600); drawings during the year are Rs. 1,800 and fresh capital introduced during the year is Rs. 2,400 then what is the amount of capital on the first day of the year - Rs. 12,000 Rs. 14,400 Rs.13,200 Rs. 16,800 14 / 30 Q.17 The accounting measurement that is not consistent with the going concern concept is Historical cost Realisation The transaction approach Current Cost 15 / 30 Q.16 In Accounting Money is the - Measurement Value Scale of Measurement Scale of social Measurement Store of Value 16 / 30 Q.15 Which of the following bodies is represented in ASB ? CAG CBI Trade Unions Local stock exchange 17 / 30 Q.14 The application of principle for Inventory Valuation at Cost Price or market price, whichever is lower,will result in the valuation of Inventory something at lost price and at other times at the market price. This is an application of Principle of Consistency Materiality Disclosure Conservatism 18 / 30 Q.13 Policy of making provision for all possible losses and not for profits is followed Due to the Convention of consistency Due to the Convention of Conservatism Due to the Convention of Disclosure Due to the Convention of Materiality 19 / 30 Q.12 An assets was purchased for Rs.6,60,000. Cash was paid Rs. 1,20,000 and for the balance a bill was drawn for 60 days. What will be the effect on Fixed Assets? Rs.1,20,000 Rs.5,40,000 Rs.6,60,000 Nil 20 / 30 Q.11 Transaction and events not capable of expressed on terms of money are not to be recorded in accounting due to - Cost Concept Materiality Concept Realization Concept money Measurement Concept 21 / 30 Q.10 Under the business entity concept Business is treated as a unit or entity is different from it owner, Manager, partners No distinction is made between business it owner All transaction are recorded in books of account from the point of view of businessmen/owner None 22 / 30 Q.9 Financial statements are used by Owners Creditors Investors All the there 23 / 30 Q.8 Book Keeping records only --------- transaction of business Cash Financial Management Credit 24 / 30 Q.7 Money owed from an Outside is an - Asset Asset Expense Capital 25 / 30 Q.6 Accounting is also defined as an 'Information System' because The function of accounting is to provide quantitative information, primarily financial in nature about economic entities It is a system which provides information According provides required information for anyone seeking it All of the above 26 / 30 Q.5 gains represents all increase in equity all increase in assets increase in equity from any transaction other than revenue or investment by equity participant None of these 27 / 30 Q.4 capital is the excess of external liabilities over the assets excess of assets over the external liabilities excess of external liabilities over the fixed assets excess of assets over the internal liabilities 28 / 30 Q.3 fixed assets are those assets which can be converted into cash within 12 months which can be converted into cash within a period normally not exceeding 12 months which can be converted into cash within an operating cycle which normally does not exceed 12 months which are held for their conversion into cash within an operating cycle which normally does not exceed 12 months 29 / 30 Q.2 an economic event that involves transfer of money or money's worth is financial transaction barter settlement receipt/payment 30 / 30 Q.1 Financial position of the business is ascertained on the basis of Records prepared under book- keeping process Trial balance Accounting reports None of these Your score is LinkedIn Facebook Twitter VKontakte