Theoretical Framework of Accounting
This test covers the basics of accounting along with the accounting concepts.
Questions
Which of the following is not a subfield of accounting?
- Management accounting
- Cost accounting
- Auditing
- Financial accounting
Which of the following is not a primary book of accounts?
- Journal
- Ledger
- Cash book
- Purchase book
Which of the following is the first stage in the process of accounting?
- Recording of transaction
- Summarising
- Identification of transactions
- Analysing
Which qualitative characteristics of accounting suggets that the financial statements should be free from biasness and misstatements?
- Relevance
- Understandability
- Comparability
- Reliability
Which of the following is a legal compulsion?
- Management accounting
- Financial accounting
- Human resources accounting
- Social accounting
Which of the following is an internal user of accounting?
- Consumers
- Board of directors
- Employees
- Regulatory authorities
Which of the following is an example of representative personal account?
- Amitabh Bachan
- Rotary club
- Goodwill
- Accrued income
The bill discounted from bank but not matured yet is an example of
- long term liability
- short term liability
- contingent liability
- fictitious asset
The capital expenditure should be shown in the financial accounts in
- asset side of balance sheet
- liability side of balance sheet
- debit side of profit and loss account
- debit side of trading account
Which of the following is not a liquid asset?
- Inventory
- Debtors
- Bank balance
- Marketable securities
A heavy expenditure of revenue nature, which affects the generation of income over a number of years, is called
- capital expenditure
- deferred revenue expenditure
- revenue expenditure
- direct expenses
The amount debited to purchase account consists of
- purchase of goods and assets
- purchase of goods on credit only
- purchase of goods for cash only
- purchase of goods on cash as well as on credit basis
Deferred expenditures are put in which account till they are written off?
- Trading account
- Profit and loss account
- Profit and loss appropriation account
- Balance sheet
Closing stock at the end of the year should be valued at
- cost price only
- market price only
- cost price or market price whichever is lower
- cost price or market price whichever is higher
Calculate the amount of gross purchases from the data:
COGS - Rs. 2,20,000, opening stock - Rs. 35,000, closing stock - Rs. 55,000, purchase return - Rs. 5,000, sales return - Rs. 2,000, carriage inward - Rs. 10,000, carriage outward - Rs. 4,000
- Rs. 2,35,000
- Rs. 2,30,000
- Rs. 2,32,000
- Rs. 2,45,000
The liabilities, which are not due till date but may or may not be payable in future, are called
- current liabilities
- fixed liabilities
- long term liabilities
- contingent liabilities
Calculate COGS from the data:
Net profit = Rs.1,05,000, carriage inward = Rs. 15,000, carriage outward = Rs. 5,000, opening stock = Rs.25,000, closing stock = double of opening stock and G.P. = 20% of net purchases
- Rs. 5,15,000
- Rs. 5,40,000
- Rs. 12,000
- Rs. 5,02,500
COGS = Rs. 2,00,000, Gross loss = Rs. 40,000, Operating expenses = Rs. 30,000
Calculate net sales.
- Rs. 2,40,000
- Rs. 1,60,000
- Rs. 70,000
- Rs. 1,30,000
Sales of old furniture of Rs. 10,000 for cash at Rs. 8,000 should be credited to
- furniture account with Rs. 8,000
- furniture account with Rs. 10,000
- cash account with Rs. 8,000
- furniture account with Rs. 8,000, profit and loss a/c with Rs. 2,000
'To know the financial position of the business' is the main objective of
- accounting
- book keeping
- auditing
- all of these