Tag: commercial applications

Questions Related to commercial applications

Crossing of a cheque effects the ___________________.

commercial applications banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks meaning, definition and characteristics of promissory note promissory note

  1. Negotiability of the cheque

  2. Mode of payment on the cheque

  3. Both a and b

  4. Transferable but does not give a better title to the holder

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Correct Option: B

As per Negotiable Instrument Act $1881$ all of the following are types of the cheque EXCEPT:

commercial applications banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks meaning, definition and characteristics of promissory note promissory note

  1. Bearer Cheques

  2. Order Cheques

  3. Crossed Cheques

  4. Blank Cheques

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Correct Option: D

Which of the following is not valuation principle?

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. Historical cost 

  2. Present value

  3. Gross value

  4. Realisable value

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Correct Option: C
Explanation:

In economics, gross value added is the measure of the value of goods and services produced in an area, industry or sector of an economy. In national accounts GVA is output minus intermediate consumption; it is a balancing item of the national accounts' production account.

Accounting Principle is general law or rule followed in the preparation of financial statements.

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. True

  2. False

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Correct Option: A

In cash accounting system __________________________.

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. Revenues of assets are shown only when cash is received irrespective of the period

  2. Revenues of assets are shown only of the cash received for the transactions of the financial year

  3. Revenues of assets are shown only of the cash received for the current year

  4. None of the above

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Correct Option: A

The characteristic feature of dual aspect concept of accounting is?

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. The total amount debited is always equal to total amount credited

  2. All the transactions are settled in cash

  3. Cost of the various asset is taken on the basis of actual amount spent on it

  4. None of the above

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Correct Option: A

Which of the following statements is correct?

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. Accounting profit is the difference between cash receipts and cash paid in a period

  2. Accounting profit is the total of cash sales in the year less the expenses for the period

  3. Accounting profit is the difference between revenue income and expenses for the period

  4. Accounting profit is the difference between revenue income and cash payments for the period

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Correct Option: C

Select the odd one in relation to users of accounting information's.

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. Officers

  2. Managers

  3. Debtors

  4. Board of directors

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Correct Option: C

Accounts which represent a certain person or group of persons are termed as ___________________.

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. Artificial or legal persons account

  2. Natural persons personal account

  3. Representative personal accounts

  4. Any of the above

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Correct Option: C
Explanation:

Representative Personal Accounts are accounts which represent a certain person or group of people. Accounts relating to outstanding and prepaid items are called representative personal accounts. For example, prepaid insurance, outstanding rent, outstanding wages/salaries etc. Outstanding salaries is one such account.

A change in accounting policy is justified ______________________.

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. To comply with accounting standard

  2. To ensure more appropriate presentation of the financial statement of the enterprise.

  3. To comply with law

  4. All of the above.

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Correct Option: D