Gupta's Classes

Accounting

McQs Chapter - 1(Ncert Based)

Introduction to Accounting

Q. 1 Which is the evidence of business transaction?

A Voucher

B Balance sheet

C Journal

D Ledger

E More than one

Q. 2 Posting of entries in the ledger is done from?

A Vouchers

B Subsidiary books

C Journal

D None of these

E More than one

Q. 3 What type of transactions we record in the books of accounts?

A Cash nature

B Financial nature

C Both A and B

D monetary nature

E More than one

Q. 4 What accounting method is followed for the recording of transactions?

A Cash Basis System

B None of them
C Double Entry System

D Single entry system

E More than one

Q. 5 Which one is not the step of accounting

A Interpretation

B Classifying the recorded entries

C Window Dressing

D Recording in the book of accounts

E More than one

Q. 6 Which of the following does not represents a business transactions?

A Efficiency of Management

B Goods are sold on credit

C Assets sold and money introduced in business

D company hosting charity event and donation

E More than one

Q. 7 The main purpose of balance sheet is to show

A Financial Position

B Creditors

C Assets and Capital

D Old Accounting Records

E More than one

Q. 8 The objective of financial accounting is to ascertain for a particular period

A Assets only

B Debt only

C Accounts
D Profit/Loss

E More than one

Q. 9 Accounting is helpful in replacing the................

A Money

B Material

C Memory

D Method

E More than one

Q. 10 The person from whom goods are purchased on credit is known as

A Debtor

B Investors

C Supplier

D Creditor

E More than one

Q. 11 A firm earns revenue of Rs. 14,500 and to earn this revenue the firm incurs an expense
of Rs.8,500. Calculate firm's income.

A Rs.5, 500

B Rs.6, 000

C Rs. 7, 500

D Rs.5, 000

E More than one

Q. 12 A person who receives benefit without paying money immediately but liable to pay in
future within a particular period of time is known to be as...........

A Creditor

B Borrower

C Debtor
D Investor

E More than one

Q. 13 The expenditure incurred at the time of acquiring any assets or improving the quality
of any existing assets which will help in increasing the earning capacity of the business is
called..........

A Deferred Revenue Expenditure

B Capital Expenditure

C Revenue Expenditure

D Operational Expenses

E More than one

Q. 14 Which of the following uses accounting information to take policy decisions?

A Creditors

B Investors and potential investors

C Government authorities

D Banks and financial institutions

E More than one

Q. 15 Which of the following transaction is maintained in a systematic manner?

A Monetary

B Non-monetary

C Managerial

D Financial

E More than one

Q. 16 What is the first step of accounting process?

A Identifying the business transaction

B Classifying the transaction under separate heads in the ledger

C Recording transaction in the books

D Communicating the information to the various parties who are interested in business
enterprise

E More than one

Q. 17 Who is not an internal user of accounting?

A Owner

B Management

C Employees

D Investors

E More than one

Q. 18 The branch of accounting which keeps a systematic record of financial transactions

and represents the operating result of the organisation is.....

A Management accounting

B Financial accounting

C Social responsibility accounting

D Cost accounting

E More than one

Q. 19 Accounting is an art as well as

A Finance

B Commerce

C Profession

D Science

E More than one

Q.20 Which one of the following is not a function of accounting?

A Meeting legal requirements

B Maintaining systematic record

C Communicating the financial results

D Reliability of the accounting

E More than one

Q. 21 The business organisation whose revenue is in excess of its expenses is known as...........

A Profit

B Sales

C Loss

D Gain

E More than one

Q. 22 Which one of the following is the correct sequence of accounting process?

A Identification, classification, measurement and communication

B Analysis, interpretation, measurement, identification and recording

C Classification, recording, analysis, interpretation and communication

D Identification, recording, D classification, analysis and interpretation

E More than one

Q. 23 Trade payables include which of the following?

A Creditor and bills payable

B Creditor and bills receivable

C Debtor and bills receivable

D Debtor and bills payable

E More than one

Q. 24 In a non-profit organisation, surplus or deficit is shown by which type of accounting

information?

A Profit and loss account

B Trading account

C Income and expenditure account

D Receipt Account
E More than one

Q. 25 Which one of the following transaction is not recorded in the books of account?

A Paid sons fees Rs. 10,000 to University of Mumbai from his personal account

B Purchased raw material from the supplier Rs. 12,000

C Personal selling made by a salesman worth Rs. 25000

D Paid salary to employees Rs. 15,000

E More than one

Q. 26 Which of the following is not an intangible asset?

A Trademark

B Copyright

C Goodwill

D Computer

E More than one

Q. 27 Which of the following transaction is not of financial nature?

A Strike by employees

B Paid rent for office premise

C Withdraw money from business for personal use

D Purchase of machinery

E More than one

Q. 28 Which one of the following is not a characteristic of accounting information?

A Comparability

B Reliability

C Transparency

D Record keeping

E More than one

Q. 29 A transaction can be recorded in the books of account only if the transaction is of
an/a............. nature.

A Scientific

B Economic

C Financial

D Social

E More than one

Q. 30 The asset which does not have physical existence is known as

A Current Assets

B Intangible Assets

C Tangible Assets

D Fictitious Assets

E More than one