Q.1. Which of the following is not a qualitative characteristics of accounting information?
(a) Reliability (b) Understandability (c) Comparability (d) Materiality
(1)
Q.2. According to which of the following accounting concepts, even the proprietor of a business is treated as
creditor to the extent of his capital.
(a) Money measurement concept (b) Dual aspect concept (c) Cost concept (d) Business Entity concept
(1)
Q.3. Decrease in liability may lead to
(a) decrease in an assets (b) increase in another liability (c) Either (a) or (b) (d) None of the above
(1)
Q.4. A person who owes money to a firm against goods sold is called a
(1)
Q.5. Cash account can have either
Or
balance.
(1)
Q.6. Ravi has purchased goods from Girish on credit for Rs. 10,000 plus 12% IGST. It will be recorded in
(a) Cash book (b) Purchase book
(c) Journal proper
(d) Petty Cash book.
Q.7. BRS is prepared
(a) at the end of each week
(b) at the end of each month
(c) at the end of the accounting year (d) whenever a bank statement is received.
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Q.8. The preparation of Trial Balance helps in
(a) Judging the financial position
(c) Preparation of Final a/c
(b) Locating errors of all types
(d) None of these
Answers
Answer:
Materiality
Business entity concept
Either a or b
Debtor
Nil or Debit balance
Purchase book
At the end of each month
Preparation of final accounts
Explanation:
A company's financial statements prepared in accordance with GAAP must include extensive documentation of or disclosure of any events that can reasonably be expected to have an impact on investors' decisions, according to the accounting principle of materiality.
The concept of a business entity states that a corporation is a distinct legal entity from its owners. The business enterprise is seen by the entity view as a distinct entity from the persons who are providing the funding. An example is a sole proprietorship or sole trader.
A firm or person that owes money is referred to as a debtor.
The record for purchases on credit is kept in the purchase book, not for purchases of assets.
Entries for asset purchases are kept in the actual Journal book
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Answer:
1. Option D
2. Option D
3. Option A
4. Debtor
5. Debit balance
6. Option B
7. Option B
8. Option B
Explanation:
Q.1. Which of the following is not a qualitative characteristic of accounting information?
Answer: d) Materiality
Q2. According to which of the following accounting concepts, even the proprietor of a business is treated as a creditor to the extent of his capital.
ANSWER: (d) Business Entity concept
Q3. A decrease in liability may lead to
ANSWER: (a) decrease in an assets
Q4. A person who owes money to a firm against goods sold is called a
Debtor.
Q5. Cash accounts can have debit balances.
Q6. Ravi has purchased goods from Girish on credit for Rs. 10,000 plus 12% IGST. It will be recorded in the Purchase book.
Q7. BRS is prepared at the end of each month.
Q8. The preparation of Trial Balance helps in the preparation of final accounts.
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