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 accountancy accounting software - tally concept of entity and relationship designing and creating simple tables, forms, and queries objective in dbms

The series, to find the total amount by which the accounts have been debited is used in database design for ________.

  1. Model-I

  2. Model-II

  3. Model-III

  4. Model-IV
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Model-I is a specific design convention in database accounting tutorials used to handle debits and credits by assigning signs to amounts.

Multiple choice accountancy accounting software - tally concept of entity and relationship designing and creating simple tables, forms, and queries objective in dbms

The steps required in data processing cycle, when thought of in the context of accounting are _____________________.

  1. Data capturing, Source documents, Data storage, Generating and Input of data.

  2. Source documents, Input of data, Data storage, Manipulation of data and Output of data.

  3. Source documents, Data capturing, Collecting, Manipulation of data and Interpreting.

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

Data processing cycle, when thought of in the context of accounting, requires a series of steps that are source documents, input of data, data storage, manipulation of data and output of data.

Multiple choice accountancy accounting software - tally concept of entity and relationship designing and creating simple tables, forms, and queries objective in dbms

Accounting transactions of an organisation are documented using a _________.

  1. Bill

  2. Invoice

  3. Voucher

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

The first step to capture accounting data from transaction(s) so as to prepare a document, is called voucher that expresses and document an accounting transaction.

Multiple choice accountancy accounting software - tally concept of entity and relationship designing and creating simple tables, forms, and queries objective in dbms

The _________ are used for storing accounting data.

  1. Data storage

  2. Databases

  3. Computers

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

Both computerised and computer-based AIS require a definite data structure for storing the accounting data. The databases are used for storing accounting data.

Multiple choice accountancy accounting software - tally concept of entity and relationship designing and creating simple tables, forms, and queries objective in dbms

A positive net amount implies a _________ and _________ amount implies a credit.

  1. debit, positive

  2. debit, credit

  3. debit, negative

  4. credit, positive
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In accounting database models, positive values are typically assigned to debits, while negative values are assigned to credits to allow for simple summation.

Multiple choice accountancy accounting software - tally concept of entity and relationship designing and creating simple tables, forms, and queries objective in dbms

__________ report design appears on the RHS of Database Window as object under reports.

  1. Balance sheet

  2. Trial balance

  3. Profit and loss

  4. Both a and c
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In the context of the specific database accounting model being referenced, the trial balance report is the object saved and displayed under the reports list.

Multiple choice accountancy accounting software - tally concept of entity and relationship designing and creating simple tables, forms, and queries objective in dbms

Every transacted amount that have been debited as well as credited appear _______ in record set.

  1. once

  2. twice

  3. thrice

  4. both a and c
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In a double-entry accounting system, every transaction involves at least two entries: one debit and one credit, meaning the amount appears twice in the record set.

Multiple choice social studies cooperatives and consumer empowerment understanding advertising media and advertisement advertisements

Full form of CPA is ________________.

  1. Consumer priority Act

  2. Consumer protection Act

  3. Consumer priority authority

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

The full form of CPA is consumers protect  act which seeks to protect and promote the consumers interest through speedy and inexpensive redrenal of their grievances. 

Multiple choice geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

When a country enters into international trade, what record is maintained on the basis of double entry book-keeping?

  1. Balance of Payment

  2. Balance Sheet

  3. International Trade

  4. Profit and Loss Account
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Balance of Payment (BoP) is a systematic record of all economic transactions between the residents of a country and the rest of the world, maintained using double-entry bookkeeping.

Multiple choice business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

The pay in slips for different types of accounts like savings, current, etc are _____________.

  1. Different

  2. Same

  3. Universal

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

The pay in slips for different types of account are different. The details asked in the pay in slips do not ask whether the account is current or savings and therefore different pay in slips are given so as to differentiate between them. 

Multiple choice business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

The process of recording is done ____________________.

  1. Two times a year

  2. Once a year

  3. Frequently during the accounting period

  4. At the end of a accounting period
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In accounting, transactions are recorded chronologically in journals or books of original entry as they occur throughout the accounting period.

Multiple choice book keeping and accountancy accounting for retirement and death of partner reconstitution of partnership (retirement of partner) accounting of sum payable to a partner on retirement or death accounting treatment in case of retirement of a partner

For the intervening period in the books of account, ______________ A/c will be debited for deceased partner's share of profits.

  1. profit and loss suspense

  2. deceased partners' capital

  3. deceased partners' current

  4. cash/bank
Reveal answer Fill a bubble to check yourself
B Correct answer
Multiple choice book keeping and accountancy reconstitution of partnership (retirement of partner) accounting for retirement and death of partner accounting of sum payable to a partner on retirement or death accounting treatment in case of retirement of a partner

On retirement of a partner which account is not prepared:

  1. Realisation Account

  2. Distribution Account

  3. Revaluation Account

  4. Adjustment Account
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

On retirement of a partner following accounts are prepared:

1. Revaluation Account
2. Adjustment Account
3. Partners' Capital Account
Realisation account is prepared at the time of dissolution of partnership.
Distribution account is prepared in the company form of organisation to set out who gets what at the time of liquidation of a company.

Multiple choice book keeping and accountancy banking transactions and accounts relating to cheque functions and services of modern banking meaning of passbook and cashbook journal entries for transactions through bank and for loans

The total of discount column on the debit side of the cash book is posted to the _________________.

  1. Credit of the discount allowed account

  2. Debit of the discount received account

  3. Credit of the discount received account

  4. Debit of the discount allowed account.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The discount column on the debit side of the cash book represents discounts allowed to customers. This total is posted to the debit side of the Discount Allowed account in the ledger.

Multiple choice book keeping and accountancy banking transactions and accounts relating to cheque functions and services of modern banking meaning of passbook and cashbook journal entries for transactions through bank and for loans

For opening Joint Bank account, in case of separate sets of books:

  1. Venture A/c will be debited and Ventures A/c will be credited

  2. Joint Bank A/c is debited and Ventures Capital A/c is credited

  3. Joint Venture A/c is debited and Joint Bank A/c will be credited

  4. Joint Bank A/c will be debited and Joint Venture A/c will be credited
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For opening a Joint bank account, in case of separate sets of books are joint bank account debited and ventures capital account is credited. A joint bank account is like any other bank account.