On 31st December, 2010 Ashok Ltd. purchased a machine from Mohan Ltd. for ` 1,75,000. This is :

(C) Both a transaction as well as an event

The main objective of Book-keeping is:

A’ ‘B’ (Both ‘A’ and ‘B’)

The Modern Enterprises reported all assets in the balance sheet at current market value. This action is a violation of:

· cost principle or historical cost concept

A company is a going concern if:

· there is no evidence that it will or will have to cease operation

Which of the following states that the dollar does not lose its value:

· stable dollar value assumption

studbud

ACCOUNTS XI (ACCOUNTING PRINCIPLES , MEANING & BASIC ACCOUNTING TERM)

20 termsStudBud Administration165 plays

Imported from external platform

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
` 5,000 paid as rent of office premises is an/a .......
A) Event
(B) Transaction
(C) Both ‘A’ and ‘B’
(D) None of these
2
A fixed asset costing $30,000 is depreciated over its estimated useful life of 15 years. This action is related to:
· matching principle ·
monetary unit assumption
· full disclosure concept ·
None of the above
3
On 31st December, 2010 Ashok Ltd. purchased a machine from Mohan Ltd. for ` 1,75,000. This is :
(C) Both a transaction as well as an event
(A) A transaction
(D) None of these
(B) An event
4
Internal users of accounting information are :
(A) Creditors
(C) Managers
(B) Potential investors
(D) Researchers
5
In accounts recording is made of :
Only financial transactions
Financial and non-financial transactions
Personal transactions of the proprietor
Only non-financial transactions
6
All of the following are the functions of accounting except :
(B) Measurement
(D) Posting
(A) Decision-making
(C) Forecasting
7
In certain situations, companies might recognize losses but not gains. This action belongs to:
· conservatism principle ·
· revenue recognition principle ·
monetary unit assumption
matching principle
8
The main objective of Book-keeping is:
A’ ‘B’ (Both ‘A’ and ‘B’)
Complete recording of transactions
Analysis and interpretation of data)
Ascertainment of Financial effect on the business
9
On 1st September Kashyap paid rent ` 2,000. Under which form it will be classified :
(B) A transaction
(D) Neither a transaction, nor an event
(A) An event
(C) an event and also as a transaction
10
Which of the following transactions is not of financial character :
Purchase of a building
Strike by employees
Purchase of goods on credit
Payment of salaries (D) Strike by employees
11
According to accrual concept of accounting, financial or business transaction is recorded
· when profit is computed ·
when transaction occurs
· when cash is received or paid ·
when balance sheet is prepared
12
Which one of the following states that the life of a business can be divided into equal time periods?
Revenue recognition principle
· Economic entity concept ·
Accrual concept
· Time period assumption ·
13
Which of the following is taken into account While determining the materiality of an amount?
Nature of the amount in question
Size of the amount as well as organization
Cumulative effect of all immaterial amounts
All of the above
14
Which of the following transaction is not recorded in the books of accounts unless it is measurable in terms of money?
· Monetary unit assumption ·
Revenue recognition principle ·
· Matching principle ·
Time period assumption
15
The Modern Enterprises reported all assets in the balance sheet at current market value. This action is a violation of:
conservatism concept
· materiality concept ·
· full disclosure concept ·
· cost principle or historical cost concept
16
The business or economic entity concept is applicable to:
· sole proprietorship form of business
· corporate form of business ·
all of the above
partnership form of business
17
A company is a going concern if:
it is a public limited company
· there is no evidence that it will or will have to cease operation
its balance sheet shows a strong financial position
its income statement for the current year shows huge profit
18
External users of accounting information are :
A) Researchers
(B) Government
(C) Tax authorities
(D) All of the abovE
19
Which of the following states that the dollar does not lose its value:
· stable dollar value assumption
monetary unit assumption
· matching principle
· going concern concept
20
Which of the following is not a sub-field of accounting ?
(B) Cost Accounting
(C) Financial Accounting
(D) Book-keeping
(A) Management Accounting

ACCOUNTS XI (ACCOUNTING PRINCIPLES , MEANING & BASIC ACCOUNTING TERM) Flashcards | StudBud