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 technology testing

OLB Accounts are exclusively for

  1. Consumer Accounts

  2. Business Accounts

  3. Both a & b

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

In many community banking systems, OLB (Online Banking) accounts are designated specifically for consumer or retail customers. In contrast, business or commercial accounts must use a separate Cash Management or Business Online Banking portal designed to support complex corporate authorization and treasury workflows.

Multiple choice technology testing

OLB Accounts stands for

  1. Online Business

  2. Other Lines of Business

  3. Order Line Business

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

OLB stands for 'Other Lines of Business' in ICM and telecommunications systems. This refers to business lines or accounts that are not part of the primary or main business categories. It's used to categorize secondary or auxiliary business units or services.

Multiple choice technology testing

OLB Accounts can have only

  1. Billing address

  2. Service address

  3. Both Billing and Service address

  4. Shipping address
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

OLB (Other Lines of Business) accounts in ICM systems are specifically designed to have only a billing address, not a service address. This is different from primary business accounts which may have both billing and service addresses. The system constraints for OLB accounts limit them to billing address only.

Multiple choice technology mainframe

What is the transaction used to see scorecard changes

  1. 4R

  2. 7R

  3. 7P

  4. 4P
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Transaction 4P is used to view scorecard changes in the insurance system. This appears to be a specific inquiry or display transaction (the 'P' may stand for 'print' or 'display'). Transactions 4R, 7R, and 7P are other transaction codes that perform different functions - they may be related but are not the correct transaction for viewing scorecard modifications.

Multiple choice technology

What are the different account lines?

  1. Indemnity

  2. Expense

  3. 1 & 2

  4. 1 Alone
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The different account lines are Indemnity and Expense, making option C (1 & 2) correct. Options A and B only mention one type each, while option D is incomplete.

Multiple choice technology mainframe

What is the transaction used to see scorecard changes

  1. 4R

  2. 7R

  3. 7P

  4. 4P
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Transaction 4P is used to view scorecard changes in the system. The 'P' likely stands for 'Print' or 'Display' function. Transactions 4R and 7R (R likely = 'Run') and 7P would have different purposes - 4R might run a calculation, while 7P might display a different type of report. 4P is specifically designated for viewing scorecard modifications.

Multiple choice technology mainframe

Which report in AXIOM will have the transactions posted of all account numbers

  1. O11

  2. R30

  3. O17

  4. U03
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

O17 is the AXIOM report that contains all posted transactions across all account numbers. This is likely a comprehensive transaction listing or posting report that aggregates activity by account. The other options (O11, R30, U03) appear to be different AXIOM reports serving other purposes like detailed account ledgers, summary reports, or unposted transaction queues.

Multiple choice technology mainframe

In Globestar, which of the following status code in block-code represents the account is in the final charge-off stage.

  1. A

  2. I

  3. Z

  4. D
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In Globestar, status code 'Z' in the block-code indicates the account is in the final charge-off stage. Charge-off is the final stage of delinquency where the debt is written off as uncollectible. Codes A, I, and D likely represent other stages like active, inactive, or delinquent status.

Multiple choice technology mainframe

What is Billing Cycle/Date?

  1. It is the date a particular transaction (retail/cash) was done.

  2. It is the day of the every month on which the account will get cycle and the statement will get generated for that particular month.

  3. It is the day every year on which the e-statement for a particular account is generated.

  4. It is the day the account was opened.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Billing Cycle/Date is the specific day each month when a credit card account's statement cycle closes and the monthly statement is generated. All transactions within this cycle period appear on that statement. Option A is incorrect because it refers to individual transaction dates, not the billing cycle. Option C wrongly describes it as an annual event. Option D confuses the billing cycle with the account opening date, which are separate concepts.

Multiple choice technology mainframe

What is a Statement?

  1. Statement includes the following details for a Calendar Month 1)All the transaction done by the customer for a Calendar Month 2)

  2. Statement includes the following details for that Cycle 1) All the transaction done by the customer for that Cycle 2)Late fees charged 3)Annual/Membership Fee charged 4)Interest charged 5) Minimum Due Amount 6)Payment Due Date 8)Current cycle date 9) Cur

  3. Statement includes the following details for the Previous Cycle 1)All the transaction done by the customer for the Previous Cycle 2)Late fees charged 3)Annual/Membership Fee charged4)Interest charged5)•

  4. Both B&C

  5. Minimum Due Amount 6)•Payment Due Date 7•Current cycle date 8)Current Due Amount 9)Past Due Amount 10) Payment details
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A credit card statement includes transactions for the billing cycle, fees (late, annual, membership), interest charged, minimum due amount, payment due date, current cycle dates, and current/past due amounts. Option B covers these comprehensively. Options A and C are incorrect (statements are for cycles, not calendar months). The claimed answer B is correct.

Multiple choice technology mainframe

What is a Statement?

  1. Statement includes the following details for a Calendar Month 1)All the transaction done by the customer for a Calendar Month 2)Late fees charged 3)Annual/Membership Fee charged 4)Interest charged 5)Minimum Due Amount 6)Payment Due Date 7)Current cycle da

  2. Statement includes the following details for that Cycle 1) All the transaction done by the customer for that Cycle 2)Late fees charged 3)Annual/Membership Fee charged 4)Interest charged 5) Minimum Due Amount 6)Payment Due Date 8)Current cycle date 9) Curr

  3. Statement includes the following details for the Previous Cycle 1)All the transaction done by the customer for the Previous Cycle 2)Late fees charged 3)Annual/Membership Fee charged4)Interest charged5)•

  4. Both B&C
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A credit card Statement includes comprehensive details for a specific billing cycle: all transactions made during that cycle, late fees, annual/membership fees, interest charges, minimum due amount, payment due date, current cycle date, and current outstanding balance. Option A is incorrect because statements are cycle-based, not calendar month-based. Option C incorrectly refers to the previous cycle - statements always cover the current/billing cycle. Option D is unnecessary because only option B is correct.

Multiple choice technology mainframe

What is a Statement?

  1. Statement includes the following details for a Calendar Month 1)All the transaction done by the customer for a Calendar Month 2)Late fees charged 3)Annual/Membership Fee charged 4)Interest charged 5)Minimum Due Amount 6)Payment Due Date 7)Current cycle da

  2. Statement includes the following details for that Cycle 1) All the transaction done by the customer for that Cycle 2)Late fees charged 3)Annual/Membership Fee charged 4)Interest charged 5) Minimum Due Amount 6)Payment Due Date 8)Current cycle date 9) Curr

  3. c) Statement includes the following details for the Previous Cycle 1)All the transaction done by the customer for the Previous Cycle 2)Late fees charged 3)Annual/Membership Fee charged4)Interest charged 5)Minimum Due Amount 6)Payment Due Date 7)Current cy

  4. Both B&C
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A billing statement summarizes all account activity for a specific billing cycle, including transactions, fees, interest, minimum payment due, and payment due date. The key distinction is that statements are cycle-based, not calendar month-based, which is why Option B correctly specifies 'that Cycle' rather than 'Calendar Month' or 'Previous Cycle'. Options A and C incorrectly reference calendar month or previous cycle, while Option D incorrectly suggests both B and C are correct.