Q1.Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented?
(1) Relevance(2) Understandability(3) Reliability(4) Comparability
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Q2.Which of the following is not a business transaction?
(1) Purchase of goods for resale amounted to Rs. 50,000(2) Paid salaries and wages amounted to Rs. 10,000(3) Paid rent for office premises Rs. 5,000(4) Purchased a LCD for personal use
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Q3.Which is the last step of accounting as a process of information?
(1) Preparation of summaries in the form of financial statements(2) Recording of data in the books of accounts(3) Analysis and interpretation of information(4) Communication of information
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Q4.Use of common unit of measurement and common format of reporting promotes
(1) Understandability(2) Comparability(3) Reliability(4) Relevance
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Q5.The process of recording, classifying and summarizing all business transactions in order to know the financial result is called –
(1)Accounting(2) Book – keeping(3) None of these.(4) Journalizing
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Q6.The person, firm or institution who does not pay the price in cash for the goods purchased or the services received is called-
(1) Proprietor(2) Creditor(3)None of these.(4) Debtor
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Q7.The long term assets that have no physical existence but are rights that have value is known as
(1)Fixed assets(2)Current assets(3)Investments(4)Intangible assets
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Q8.The debts which are to be repaid within a short period (year or less) are known as
(1)Fixed liabilities(2)Current liabilities(3)All of the above(4)Contingent liabilities
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Q9.The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
(1)Fixed assets(2)Current assets(3)Investments(4)Intangible assets
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Q10.Purchases refers to the buying of
(1)Stationery for office use(2) Assets for the factory(3) Goods of resale(4) Investment
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