1. Goods taken by proprietor for personal use will be recorded in -----------.
A. Journal proper
2. Total of sales book is posted to----------------
A. Sales Account
3. When a customer returns the goods a ------------------- is sent to him.
A. Credit note
4. When the goods are sent to supplier a ------------------- is sent to him.
A. Debit note
5. Credit purchase of stationary by a stationary dealer is to be recorded in --- ---------
A. Purchase book
6. BRS is prepared by a -----------------
A. Customer of Bank
7. BRS is statement showing the causes of differences ----------------.
A. Between the cash book and pass book
8. Installation charges of machinery purchased is --------------------
A. Capital expense
9. Expense incurred on trial run of machine is --------------
A. Capital expense
10. Repair of second hand machinery before put to use is---------------.
A. Capital expense
11. Annual maintenance fee of machine is -------------
A. Revenue expense
12. Cost of ring & pistons of an engine changed to get better fuel efficiency is ----------------
A. Capital expense
13. Interest on term loan for purchase of machinery where the commercial production has not begun till the last day of Accounting year is ---- ---------
A. Capital expense
14. Premium received on issue of shares is ---- -------------
A. Capital receipts
15. Scrap value of machinery is ------------------
A. Capital receipt
16. Deprecation is a --------------
A. Non cash operating expense
17. For depreciating good will the suitable method is --------
A. SLM
18. For depreciating mine the suitable method is ----------
A. Depletion
19. --------------- is same like deprecation
A. Amortization
20. For depreciating leases the suitable method is ---------
A. Annuity method
21. Trading Account is prepared to ascertain ----------------
A. Gross Profit
22. P/L Account is closed by transferring its balance to---------
A. Capital Account
23. Provision is a---------------
A. Charge against the profit
24. P/L Account shows the -------------------------- for an Accounting period.
A. Financial performance
25. Balance sheet shows the --------------- at a particular date
A. Financial position
26. Insurance claim for machinery damaged by fire is ------------------.
A. Capital receipt
27. Cash received from debtors is----------------
A. Revenue receipt
28. Fine imposed is --------------------------
A. Revenue expenses
29. Purchase of goodwill is -----------------
A. Capital expense
30. Import duty on purchase of material is --------------
A. Revenue expense
31. Loss on sale of machinery is --------------
A. Revenue loss
32. Festival advance to employee is -------------
A. Prepaid expense
33. Cost incurred on dismantling a machine worn out part is ------------.
A. Revenue expense
34. Amount spent on repainting an old building for first time on purchase is -------------
A. Capital expense
35. Amount spent on annual repainting of building is -------------------.
A. Revenue expense
36. ---------------- Usually arises from unplanned or unexpected event that given rise to the possibility of an inflow of economic benefits to the business entity.
A. Contingent assets
37. In the financial statement contingent assets and liabilities are -----------.
A. Not recognized
38. In the financial statement provisions are --- ------------
A. Recognized and adjusted
39. The trial balance checks the -------------- of the books of Account.
A. Arithmetical accuracy
40. The object of opining suspense Account is - -----------------
A. To avoid the delay in preparation of financial statement
41. The inventory of finished goods is valued at cost or NRV---------------.
A. Which is lower
42. Damaged inventory is valued at ------------- ---
A. Net realizable value
43. When the bill is honoured at the maturity date, the drawee debits -----------
A. B/P Account
44. The promissory note should be --------------
A. Signed by promisor
45. A fee paid in cash to notary public is charged by ---------------
A. Holder of bill of exchange
46. A ------------- has a separate legal entity from its member.
A. Company
47. An authorized capital refers to that amount which is stated in the ----------as share capital.
A. Capital clause of the memorandum of association
48. --------------- is not disclosed in the balance sheet of the company.
A. Reserve capital
49. Equity shares can be issued with the differential rights as to --------------.
A. Dividend and voting
50. -------------- of a company is an invitation to make an offer to subscribe the share or debenture of the company.
A. Prospectus
51. As per section 69(3) of the Co. Act 1956, the amount payable on application on each share must be at least ------
A. 5% of the nominal amount of share
52. As per SEBI Guidelines, the amount payable on application on each share must be at least ----------------
A. 25% of the issue amount of shares
53. As per Table A (SEBI Guidelines), the amount of call on a share must not exceed ------------
A. 25% of the nominal amount of share
54. A company can issue share at premium--------------
A. Even in the absence of any express authority in its articles
55. The maximum rate of interest which can be charged on calls in arrears is --------------
A. 5% p.a.
56. The maximum rate of interest which can be paid on calls in advance is ----------------
A. 6% p.a.
57. If shares are forfeited, share capital Account is debited with the amount of ---------------
A. Called up value of shares
58. On the approval from Central Government the rate of discount on issue of share can be ----------------
A. 10% of the nominal value of shares
59. Under inflationary condition, FIFO method will show ----------------.
A. Highest value of closing stock
60. Under inflationary condition, LIFO method will show ------------------.
A. Lower value of closing stock
61. Under inflationary condition, LIFO method will show -----------------.
A. Highest value of cost of goods sold
62. Deprecation is related to ------
A. All tangible fixed assets (Except Land)
63. Deprecation Accounting is ------------------
A. A process of allocation of the cost of fixed assets
64. Wages and salaries appearing in trail balance are shown on the-------------.
A. Debit side of treading Account
65. Outstanding wages appearing in trail balance is shown on the -------------.
A. Liabilities side of balance sheet
66. Prepaid insurance appearing in trail balance is shown on the ------------.
A. Assets side of Balance Sheet
67. Closing stock appearing in trail balance is shown on the ---------------.
A. Assets side of Balance Sheet
68. Capital work in progress is --------------
A. Tangible asset
69. Drawings are------------------
A. Deducted from capital
70. The debit balance in the P/L Account is a-- -----------
A. Loss
71. The value of human resources is generally not shown in balance sheet as per -----------------
A. Money measurement concept
72. Accrued income is shown as a ---------------
A. Current asset
73. Unaccrued income is shown as a ------------
A. Current liability
74. A promissory note is an --------------- to pay.
A. Unconditional promise
75. In case of Promissory note, there are --------------
A. 2 parties
76. A bill of exchange is an ---------------- to pay.
A. Unconditional order
77. In case of bill of exchange there are ------------
A. 3 parties
78. The term of bill after sight commences from the date of ----------------
A. Acceptance of the bill
79. The term of bill after date commences from the date of ---------------
A. Drawing a bill
80. Prepaid salary account is a --------------
A. Personal Account
81. Interest received account is a ------------
A. Nominal Account
82. Accrued interest is a ----------------
A. Personal Account
83. Interest receivable is a --------------
A. Personal Account
84. Cash account is a--------------------
A. Real Account
85. Bank account is a -------------------
A. Personal Account
86. Advance to employee is a--------------------------
A. Personal Account
87. Advance to suppliers is a ---------------------
A. Personal Account
88. Goodwill is a ----------------------------
A. Real Account
89. Patent, Copyright, Trademark are --------------------
A. Real Account
90. Bad debt and Bad debt recovered are------------------
A. Nominal Account
91. A free sample account is ----------------------
A. Nominal Account
92. Cash book is a type of ------------- but treated as ---------------
A. Subsidiary Book, Principal Book of Account
93. Cash book is used to record -----------
A. All receipts and payments of cash
94. A cheque which is payable across the bank counter is a---------------.
A. Bearer cheque
95. The balance in petty cash book represents - --------------
A. An asset
96. Purchase book is used to record all ---------
A. Credit purchase of goods
97. Sale book is used to record all ---------------
A. Credit sales of goods
98. B/R book is a --------------------
A. Part of Journal
99. Purchase book, sale book is a ----------------
A. Part of Journal
100. Under inflationary condition, FIFO method will show ------------------.
A. Lowest value of cost of goods sold
