Commerce Accountancy
Accounting Principles and Practices
2,324 Questions
Accounting principles and practices involve the preparation of trial balances, ledgers, and bank reconciliation statements. This area tests your knowledge of fundamental accounting concepts and routine business transactions. It is a core section in commerce exams and various competitive tests.
Ledger accountsTrial balance preparationBank reconciliation statementAccounting conceptsPrimary books of accounts
Accounting Principles and Practices Questions
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Direct Expenses
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Indirect Expenses
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Direct And Indirect Expenses
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None of these
A
Correct answer
Explanation
Right answer Because Electricity Expenses is directly help for a company to produce the goods and that kind of expenses comes in the Range of Direct Expenses so that is the main Reason that it is right answer here.
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Liability Side
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Assets Side
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In P and L Account
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In Trading Account
B
Correct answer
Explanation
Right answer. Bank Balance comes only in Asset Side in Balance Sheet Becasue it is the asset for a company.
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Liability Side
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Assets Side
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Comes in P and L Account
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Comes in Trading Account
A
Correct answer
Explanation
Right answer because It is liability for a company.
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pilferage
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auctioning stores without recording
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non-recording of receipts
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all of the above
D
Correct answer
Explanation
Discrepancies between computer records and physical stock can arise from various operational failures, including theft, unrecorded transactions, or administrative errors.
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should be integrated with financial accounts
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would prove very beneficial if it is made on-line
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should be integrated with finished stores system
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all of the above
D
Correct answer
Explanation
A comprehensive sales analysis system is most effective when it integrates data from financial accounts and inventory systems to provide a holistic view of business performance.
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Debits creditor control account and credits raw material stock account.
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Credits creditor control account and debits raw material stock account.
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Credits supplier account and debits raw material account.
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None of these
C
Correct answer
Explanation
Returning materials to a vendor reverses the initial purchase; therefore, the supplier's account (creditor) is debited (reducing the liability) and the raw material stock account is credited (reducing the asset).
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classifies the outstanding balances of customers
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is a control report for monitoring debtors
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both 1 and 2
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none of the above
C
Correct answer
Explanation
An ageing analysis report categorizes outstanding customer balances by the length of time they have been unpaid, serving as a key tool for monitoring and collecting debts.
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verify the accuracy of incoming bills
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keep track of amounts owned by customers
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make sure that discounts are not lost
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issue payment cheques towards the end of the discount period
B
Correct answer
Explanation
Accounts Payable (A/P) tracks money the company owes to suppliers. Tracking money owed by customers is the function of Accounts Receivable (A/R), not A/P.
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order entry
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sales analysis
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shipping/billing
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all of the above
D
Correct answer
Explanation
A comprehensive business accounting system integrates various modules, including order entry, sales analysis, and shipping/billing, to streamline financial operations.
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customer invoices
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purchase vouchers
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challans
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all of the above
A
Correct answer
Explanation
Accounts receivable represents money owed to the firm by customers for goods or services sold on credit. Customer invoices are the primary documents used to record these transactions.
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Financial audit
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Company audit
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Statutory audit
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Cost audit
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Management audit
D
Correct answer
Explanation
Cost audit is the systematic verification of cost accounts and records to ensure they are accurate and comply with cost accounting principles.
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accuracy
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reliability
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fairness
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dependability
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none of these
A
Correct answer
Explanation
The primary objective of an audit is to verify that the financial records are accurate and represent the true state of the business.
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cash purchase of goods
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credit purchase of goods
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cash purchase of assets
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credit purchase of assets
B
Correct answer
Explanation
Credit Purchase of Goods is recorded in the Purchase Book.
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Error of commission
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Error of omission
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Error of principle
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Compensatory error
B
Correct answer
Explanation
When a transaction is not recorded at all or partially recorded in the books of original entry, both it's debit and credit aspects would be ommitted.
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Error of commission
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Error of omission
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Error of principle
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Compensatory error
C
Correct answer
Explanation
In this type of error, an item of nominal account is entered into a real account or vice versa.