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

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

Following are the types of bank documents except for ___________.

  1. Withdrawal slip

  2. Pay in slip

  3. Land agreement

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

The various documents of the bank are withdrawal slip to withdraw money, pay in slip to deposit money and a cheque to make payments and receive payments. In the given question all the documents are bank documents except a land agreement.

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
A 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. 

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

When does a entry termed as a combined entry ___________.

  1. if two transactions of one company are involved

  2. if there is debit and credit both

  3. transactions are of the same nature and they take place on the same day.

  4. all the accounts are debited the very same day
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A combined entry (or compound entry) is used when multiple accounts are debited or credited for transactions of the same nature occurring on the same day.

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 reason for totaling at the end of the page of a journal is __________.

  1. It makes whole system more convenient

  2. As the calculations are lengthy it is more comfortable

  3. It is a general practice

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All the options are correct from accounting point of view.


If the journal entries are recorded on several pages then both the amount column of each page should be totaled. The balance should be written at the end of that page. Also, the same total is to be carried forward at the beginning of the next page.

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

Statement I:
Receipts & Payment A / c starts with the opening balance of cash in hand and at bank.
Statement II :
Income & Expenditure A / c have no opening balance.
Select the correct answer from the options given below.

  1. Statement I is correct while statement II is incorrect.

  2. Both Statement I and II are incorrect.

  3. Statement II is correct while statement I is incorrect.

  4. Both Statement I and II are correct.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
  • Receipts and Payment A/c. is an account which record the payments done and receipts received in cash. It is similar to the cash account maintained in a business. The entries found in this account are opening balance of cash, to this the cash receipts are added and the cash payments are deducted and the remaining figure is the closing cash balance.
  • Income and Expenditure A/c. is nothing but another name for a Profit & Loss account. Income and Expenditure name is mostly used by non-business entities, but still all the principles are same as a Profit & Loss account. This account only records the expenses and income for a particular financial year and hence doesnt have any opening balance of any sorts.
Multiple choice elements of accounts ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

Loose-Leaf Ledgers are also known as _____________.

  1. Impersonal Ledgers

  2. Personal Ledgers

  3. Perpetual Ledgers

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

Loose-leaf ledgers are designed to allow for the addition or removal of pages, which is why they are often referred to as perpetual ledgers.

Multiple choice elements of accounts ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

In the Sale or Return Ledger _________________.

  1. All the customers are individually debited and the sale or return account is credited with the periodical total of the Sale or Return Day Book.

  2. All the customers are debited in total and the sale or return account is credited with the periodical total of the Sale or Return Day Book.

  3. All the customers are individually debited and the sale or return account is also credited with the individual total of the Sale or Return Day Book.

  4. Any one of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In a Sale or Return Ledger, individual customer accounts are debited for goods sent on sale or return, and the total is credited to the Sale or Return account to track the status of these goods.