FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING (PAPER - 2) MCQ TEST

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FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING (PAPER – 2) MCQ TEST

FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING (PAPER - 2) MCQ TEST

CMA FOUNDATION- FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING (PAPER - 2) MCQ TEST

1 / 50

The determination of expenses for an accounting period is based on the concept of

Objectivity

Materiality

Matching

Periodicity

2 / 50

Accounting provides information on :

Cost and income for managers

Company’s tax liability for a particular year

Financial conditions of an institutions

All of the above

3 / 50

The main Purpose of Financial Accounting is?

To Provide financial information to shareholders

To maintain Balance Sheet

To minimize taxes

To keep track of liabilities

4 / 50

The revenues and expenses of a company are displayed in which statement?

Balance Sheet

Cash Flow Statement

Income Statement

Periodicity

5 / 50

The rent paid to landlord is credited to :

Landlord’s A/c

Rent A/c

Cash A/c

None

6 / 50

The process of transfer of entries from day book to ledgers is called :

Simple posting

Journal posting

Transaction

Ledger posting

7 / 50

Ledger contains various________ in it :

Transactions

Entries

Accounts

None

8 / 50

Rent Account is :

Personal

Real

Nominal

None

9 / 50

A withdrawal of cash from business by the proprietor should be credited to :

Drawing A/c

Capital A/c

Cash A/c

Purchase A/c

10 / 50

A sale of goods to Ram for cash should be debited to:

Ram

Cash

Sales

Capital

11 / 50

In an Account if debit > credit side, the balance is known as the :

Negative balance

Debit balance

Positive balance

Credit balance

12 / 50

Prepaid rent is a :

Nominal A/c

Representative Personal A/c

Tangible Assets A/c

None

13 / 50

The process of recording business transactions in a book of original entry is known as

Journal

Balance

posting

none

14 / 50

S.B.I Account is a …

Nominal

Artificial Personal Account

Representative Personal Account

None

15 / 50

Nominal Account represents

Profit & gain

Loss/Expenses

None

Both (a) and (b)

16 / 50

Money spent ₹ 10,000 as travelling expenses of the directors on trips abroad for purchase of capital assets is

Capital Expenditure

Revenue Expenditure

Deferred Revenue Expenditures

None

17 / 50

Amount of ₹ 5,000 spent as lawyers’ fees to defend a suit claiming that the firm’s factory site belonged to the plaintiff’s land is:

Capital Expenditure

Revenue Expenditure

Deferred Revenue Expenditures

None

18 / 50

Insurance claim received on account of machinery damaged completely by fire is

Capital Receipt

Revenue Receipt

Capital Expenditure

Revenue Expenditure

19 / 50

A bad debt recovered during the year will be

Capital Expenditure

Revenue Expenditure

Capital Receipt

Revenue Receipt

20 / 50

All revenue receipts and expenditures are shown in

Balance Sheet

Trading and Profit and Loss A/c

Cash Flow Statement

Statement of Affairs

21 / 50

Compensation received from government for compulsory acquisition of land

Revenue Expenditure

Capital Expenditure

Deferred Revenue Expenditure

None of These

22 / 50

Received from Soloman & co., an invoice for ₹ 1,500 for repairs to factory walls

Revenue Expenditure

Capital Expenditure

Deferred Revenue Expenditure

None of These

23 / 50

Import duty of raw material purchased

Revenue Expenditure

Capital Expenditure

Deferred Revenue Expenditure

None of These

24 / 50

Cost of goods purchased for resale is an example of

Capital Expenditure

Revenue Expenditure

Deferred Revenue Expenditure

None of These

25 / 50

Life membership fees received by a club is a

Revenue Expenditure

Capital Expenditure

Deferred Revenue Expenditure

Capital Receipt

26 / 50

Entrance fee of ₹ 20,000 received by a club is a

Capital Receipts

Revenue Receipt

Capital Expenditure

Revenue Expenditure

27 / 50

₹ 5,000 incurred for up gradation of computer by installation of 128 MB Ram is

Capital Expenditure

Deferred Revenue Expenditure

Revenue Expenditure

None of the above

28 / 50

Which of the following transaction is of capital nature

Purchases of a truck

Replacement of old trucks

Cost of repairing of truck

All of the above

29 / 50

Capital expenditures are recorded in the

Balance Sheet

Profit and Loss A/c

Trading A/c

Manufacturing A/c

30 / 50

An expenditure is capital in Nature when

The receiver of the amount is going to treat it

It increase the quantity of fixed assets for the purchase of fixed assets

It is paid as interests on loans for the business

It is maintains a fixed assets

31 / 50

P & L Account is prepared for period of one year by following

Consistency Concept

Conservatism Concept

Accounting Period Concept

Cost Concept

32 / 50

Omission of paise and showing the round figures in Financial Statements is based on

Conservatism Concept

Consistency Concept

Materiality Concept

Realization Concept

33 / 50

Fixed Assets and Current Assets are categorized as per concept of

Separate Entity

Going Concern

Consistency

Time period

34 / 50

Provision for bad debt is made as per the

Entity Concept

Conservatism Convention

Cost Concept

Going Concern Concept

35 / 50

Accounting does not record non-financial transactions because of

Entity Concept

Accrual Concept

Cost Concept

Money Measurement Concept

36 / 50

If a receipt of ₹ 200 from rajesh (debtor) has not been recorded in the books the profits would show

An increase of ₹ 2,000

A decrease of ₹ 200

Neither an increase nor a decrease

None of the above

37 / 50

Goods worth ₹ 272 returned by Lala passed through the books as ₹ 722. The rectification entry is

Lala will be debited by ₹ 450

Lala will be debited by ₹ 272

Lala will be credited by ₹ 722

Lala will be credited by ₹ 272

38 / 50

Errors of carry forward from one year to another affects :

Personal Account

Real Account

Nominal Account

both (a) and (b)

39 / 50

Sales of Shyam of ₹ 500 not recorded in the books would affect :

Shyam’s Account

Sales Account

Sales Account and Shyam’s Account

Cash Account

40 / 50

A Trial Balance will not tally if :

correct journal entry is posted twice

credit purchase debited to purchases and credited to cash

₹5,000 cash paid to creditors is debited

none of the above to creditors for ₹500 and credited to cash as ₹5,000

41 / 50

Whenever errors are noticed in the accounting records, they should be rectified :

At the time of preparation of Trial Balance

without waiting the accounting year to end

After the preparation of Final Accounts

in the next accounting year

42 / 50

A Ledger is also called :

Book of Original entry

Book of Primary entry

Book of Final entry

None of the above

43 / 50

The process of transfer of entries from day book to ledgers is called :

Simple posting

Journal posting

Transaction

Ledger posting

44 / 50

Ledger contains various in it :

Transactions

Entries

Accounts

None

45 / 50

In an Account if debit > credit side, the balance is known as the

Negative balance

Debit balance

Positive balance

Credit balance

46 / 50

The process of recording business transactions in a book of original entry is known as

Journal

Balance

Posting

none

47 / 50

A Trial Balance shows

Honesty of accountants

Accuracy of account

Only arithmetical accuracy of accounts

None of these

48 / 50

A trial balance will not balance if

correct entry is posted twice

The purchase on credit basis is debited to purchases and credited to cash

₹ 500 cash payment to creditors is debited to creditors for ₹ 50 and credited to cash as ₹ 500

None of the above

49 / 50

The debts written off as bad, if recovered subsequently are

Credited to Bad Debts Recovered A/c

Credited to Trade Receivables Account

Debited to Profit and Loss Account

None

50 / 50

Which financial statement represents the accounting equationAssets = Liabilities + Owner’s equity:

Income Statement

Statement of Cash flows

Balance Sheet

None

Your score is

The average score is 38%

Post Views: 66

The determination of expenses for an accounting period is based on the concept of

Accounting provides information on :

The main Purpose of Financial Accounting is?

The revenues and expenses of a company are displayed in which statement?

The rent paid to landlord is credited to :

The process of transfer of entries from day book to ledgers is called :

Ledger contains various________ in it :

Rent Account is :

A withdrawal of cash from business by the proprietor should be credited to :

A sale of goods to Ram for cash should be debited to:

In an Account if debit > credit side, the balance is known as the :

Prepaid rent is a :

The process of recording business transactions in a book of original entry is known as

S.B.I Account is a …

Nominal Account represents

Money spent ₹ 10,000 as travelling expenses of the directors on trips abroad for purchase of capital assets is

Amount of ₹ 5,000 spent as lawyers’ fees to defend a suit claiming that the firm’s factory site belonged to the plaintiff’s land is:

Insurance claim received on account of machinery damaged completely by fire is

A bad debt recovered during the year will be

All revenue receipts and expenditures are shown in

Compensation received from government for compulsory acquisition of land

Received from Soloman & co., an invoice for ₹ 1,500 for repairs to factory walls

Import duty of raw material purchased

Cost of goods purchased for resale is an example of

Life membership fees received by a club is a

Entrance fee of ₹ 20,000 received by a club is a

₹ 5,000 incurred for up gradation of computer by installation of 128 MB Ram is

Which of the following transaction is of capital nature

Capital expenditures are recorded in the

An expenditure is capital in Nature when

P & L Account is prepared for period of one year by following

Omission of paise and showing the round figures in Financial Statements is based on

Fixed Assets and Current Assets are categorized as per concept of

Provision for bad debt is made as per the

Accounting does not record non-financial transactions because of

If a receipt of ₹ 200 from rajesh (debtor) has not been recorded in the books the profits would show

Goods worth ₹ 272 returned by Lala passed through the books as ₹ 722. The rectification entry is

Errors of carry forward from one year to another affects :

Sales of Shyam of ₹ 500 not recorded in the books would affect :

A Trial Balance will not tally if :

Whenever errors are noticed in the accounting records, they should be rectified :

A Ledger is also called :

The process of transfer of entries from day book to ledgers is called :

Ledger contains various in it :

In an Account if debit > credit side, the balance is known as the

The process of recording business transactions in a book of original entry is known as

A Trial Balance shows

A trial balance will not balance if

The debts written off as bad, if recovered subsequently are

Which financial statement represents the accounting equationAssets = Liabilities + Owner’s equity:

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