Tag: principles of double entry system

Quizzes (11) Questions (5)

Questions Related to principles of double entry system

Multiple choice book keeping and accountancy principles of double entry system objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

 If a company is registered on the basis of fictitious names, its incorporation is invalid.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The certificate of incorporation once issued, is a conclusive evidence of the existence of the company even if there were deficiencies in the formalities.

Even when company get registered with illegal object with any fictitious name, the birth of the company cannot be questioned only remedy is to wind off.

Multiple choice book keeping and accountancy principles of double entry system objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate _________________.

  1. annual irrelevant ordering costs

  2. annual relevant carrying costs

  3. annual relevant ordering costs

  4. annual irrelevant carrying costs
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In inventory management, the annual relevant ordering cost is calculated by multiplying the number of purchase orders placed per year by the cost incurred for each individual order.

Multiple choice book keeping and accountancy principles of double entry system objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Other factors held constant, but lesser project liquidity is because of ______________.

  1. Shorter payback period

  2. Greater payback period

  3. Less project return

  4. Greater project return
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Other factors held constant, but lesser project liquidity is because of greater payback period. Payback period in capital budgeting refers to the period of time required to recoup the funds expended in an investment, or to reach the break-even point.

Multiple choice book keeping and accountancy principles of double entry system objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Personal Account relates to  ____________.

  1. Persons

  2. All artificial and natural persons

  3. Representative Personal Accounts

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

Personal accounts in accounting include natural persons (individuals), artificial persons (companies, institutions), and representative personal accounts (outstanding expenses, prepaid expenses). Therefore, all these categories fall under the umbrella of personal accounts.

Multiple choice book keeping and accountancy principles of double entry system objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

What is the validity of the registration certificate?

  1. One year

  2. Valid till it is cancelled.

  3. No validity

  4. Five years
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under many regulatory frameworks, a registration certificate remains valid until it is formally cancelled or surrendered by the holder, rather than having a fixed expiration date.