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

Multiple choice

What is meant by PAN?

  1. Permanent Account No.

  2. Present Account No.

  3. Previous Account No.

  4. Perfect Account No.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Right answer, because the full name of PAN No is Permanent Account Number. So, it is right answer.

Multiple choice

Which of the following is not considered while maintaining a personal record?

  1. Records must be classified.

  2. Records must be very large.

  3. Record must be capable of verification.

  4. Record must be produced and maintained at a reasonable cost.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Records should not be very large, it should be precise so that valuable space is not wasted. That's why it is not considered while maintain a personal record.

Multiple choice

Which account is debited on sale of goods to Mr. Y for cash?

  1. Cash a/c

  2. Drawing a/c

  3. Personal a/c

  4. Repair a/c
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

 On sale of goods to Mr 'Y' for cash, the cash account is debited. This is because cash is recieved against the goods sold. Incoming cash is debited and outgoing cash is credited.

Multiple choice

Which of the following system enrolls coin analysis?

  1. Inventory System

  2. Tally (financial and accounting system)

  3. Payroll system

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Payroll system is a coin analysis. It is done to calculate the salary amount in various currency denominations (or notes).

Multiple choice

Current ratio is the part of

  1. profit & loss account ratio

  2. combined ratio

  3. balance sheet ratio

  4. trading account ratio
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 Right answer, because current ratio is the part of balance sheet ratio and we will find all items to calculate the current asset from balance sheet only. So this is the main reason why Current ratio is the part of balance sheet. Thus, it is the right answer.

Multiple choice

Directions: State whether the following statement is True Or False.Annual reports of a company are not essential for a financial analysis of the company performance, when balance sheet and P & L account are made available.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Annual reports are essential for financial analysis as they contain the Director's Report, Auditor's Report, and other qualitative disclosures that provide context beyond just the numerical data in the balance sheet and P&L account.

Multiple choice

ADRs is a—(In capital market)

  1. American Depository Receipts

  2. All Deposits Rate

  3. All Division Rule

  4. All of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

ADR stands for American Depository Receipt, which is a negotiable certificate issued by a U.S. depository bank representing a specified number of shares in a foreign stock.