Commerce Accountancy
Accounting Principles and Practices
2,416 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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Opening entry
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Closing entry
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Adjustment entry
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None of these
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Customers ledger
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Master ledger
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Suppliers ledger
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None of these
C
Correct answer
Explanation
A total creditors account (or creditors control account) is maintained to summarize the balances of all individual creditors. This is typically found in the suppliers ledger or creditors ledger.
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Dual aspect
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Realisation concept
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Entity concept
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None of these
B
Correct answer
Explanation
The realization concept states that revenue is recognized when the legal right to receive it arises, which happens at the time of sale, regardless of when cash is actually received.
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Customers ledger
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Suppliers ledger
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Creditors ledger
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None of these
D
Correct answer
Explanation
A master ledger, often called a general ledger, contains all the accounts of a business. It is not limited to just customers or suppliers.
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opening entry
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closing entry
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adjustment entry
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none of these
C
Correct answer
Explanation
Outstanding expenses are liabilities that need to be recognized at the end of the accounting period, which is done through an adjustment entry.
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Permanent Account No.
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Present Account No.
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Previous Account No.
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Perfect Account No.
A
Correct answer
Explanation
Right answer, because the full name of PAN No is Permanent Account Number. So, it is right answer.
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Expenses paid in advance
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Expenses payable
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Expenses that are not payable
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Expenses paid on time
A
Correct answer
Explanation
Right answer because when company pay their expenses in advance then we say it prepaid expenses. So it is the right answer.
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Record
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HR Audit
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Report
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Data bank
C
Correct answer
Explanation
A report is an account or statement describing in detail an event, a happening or evaluating an enterprise or a product that is proposed to be manufactured.
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Records must be classified.
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Records must be very large.
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Record must be capable of verification.
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Record must be produced and maintained at a reasonable cost.
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.
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record
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report
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HR Audit
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audit
D
Correct answer
Explanation
An audit is a review and verification of completed transactions to see whether they represent a true state of affairs of the business or not.
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Cash a/c
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Drawing a/c
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Personal a/c
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Repair a/c
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.
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Inventory System
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Tally (financial and accounting system)
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Payroll system
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None of the above
C
Correct answer
Explanation
Payroll system is a coin analysis. It is done to calculate the salary amount in various currency denominations (or notes).
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Debit side
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Assets side
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Credit side
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Both (1) and (2)
C
Correct answer
Explanation
Assets belong to a fixed deposit like alcohol, cigrerattes.
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Credit side
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P/L account income side
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Balance sheet liabities side
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Debit side
D
Correct answer
Explanation
In a cash book, reciepts are recorded on the debit side.
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Ledger
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Voucher file
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A/C payable
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None of above
B
Correct answer
Explanation
Voucher is a financial accounting system that affects voucher file. Each transaction generates a voucher, which is used to update the ledger.