Model Objective Question for Accountancy Commercial and Management Accounts – Part 7

Q. Classification of assets as current assets and fixed assets is an application of which accounting assumption:

A. Accounting Emily Assumption

B. Monetary Unit Assumption

C. Accounting Period Assumption

D. Going Concern Assumption

Q. Ravi started business with Rs. 15.000 of which Rs. 4000 were borrowed at 15% p.a. from Shri Akash. The correct journal entry for this transaction will be:

A. Cash A/c Dr. 15000; Capital A/c Cr. 11000 and Akash Loan A/c Cr. 4000

B. Cash A/c Dr. 15000; LoanAcCr.44)00mdcashA.cCr. 11000

C. Cash A/c Dr. 11000; Capital A/c Cr. 11000

D. Cash A/c Dr. 11000 and Capital A/c Dr 4000: Loan A/c Cr. 15000

Q. Accounting vouchers have got following features:

A. It is prepared on the basis of evidence of the transaction.

B. It is an analysis of a transaction

C. In the case of cash/bank voucher, it is a receipt.

D. All of the above.

Q. Which oldie following is NOT a feature of Hooks of original entry;

A. Recording of entries in these books is the first stage

B. The process of recording entries in these books is called journalising.

C. These books do not help to know the net effect of various transactions affecting a particular account.

D. In these books all the accounts arc balanced.

Q. Govind’s Trial Balance contains the following, formation

trail balance sheet

Discount allowed

Rs. 500

Provision for discount on debtors

Rs. 1000

The amount to be debited to the P & L account is:

A. Rs. 1200

B. Rs. 3200

C. Rs. 700

D. Rs. 2200

Q. In a Cash Flow Statement, which of the following would appear as a cash inflow?

A. Repayment of a Bank loan

B. Amount received as a result Selling Fixed assets

C. Depreciation fir the current year

D. Redemption of debentures by conversion

Q. A cost which does not involve cash outlay, is called:

A. Historical cost

B. Imputed cost

C. Out of pocket cost

D. Sunk cost

Q. According to schedule 24, Raw Materials and semi/fully finished goods arc valued at

A. Lower of cost and net-realisable value

B. Higher of cost and net realisable value

C. At market cost

D. At Net realisable value

Q. A Not - For - Profit organisation cannot take up which of the following activities:

A. Stock Trading

B. Trading in Goods

C. Mining

D. None of these

Q. Which is NOT an underlying assumption whiles preparing the Financial Statement?

A. Accrual basis

B. Consistency

C. Going concern

D. Materiality