R.T.1 CH.1 CMAF-ACC
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- Prudence is a concept to recognize realized losses and not profits.
2 points
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True
False
Partly true
None of the above
- Contingent liability is an unascertained liability but its amount and due dateare determinate.
2 points
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True
False
Partly true
None of the above
- Closing stock is valued at cost or net realizable value, whichever is less, isbased on____ concept.
2 points
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Consistency
Conservatism
Materiality
Disclosure
- The determination of expenses for an accounting period is based on theprinciple of:
2 points
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Objectivity
Materiality
Matching
Periodicity
- Festival advances of Rs. 25,000 was given to employees at the time ofDeepawali. It is a
2 points
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Revenue Expenditure
Capital Expenditure
Deferred Revenue Expenditure
Non of the above
- Decrease in the amount of creditors results in
2 points
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Increase in cash
decrease in cash
Increase in assets
No change in assets
- Rs. 8000 is spent of travelling expanses of the partner to a foreign trip forpurchased of an asset to be used for the business is a/an
2 points
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Capital Expenditure
Revenue Expenditure
Revenue Loss
Capital Loss
- An expenditure is in capital nature when
2 points
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The receiver of the amount is going to treat it for the purchase of fixed assets.
It increase the quantity of fixed assets.
It is paid as interest on loans for the business
It maintains a fixed assets.
- Advertising expenses for launching a new product of the company is
2 points
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Revenue expenditure
Capital expenditure
Deferred revenue expenditure
Deferred capital expenditure
- Shiva who was a creditor for Rs. 47,000, his account was settled forRs.45,850. At the time of settlement, shiva’s account would be debited by
2 points
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45,850
47,000
1,150
None of the above
- Owing of The Business Are Called —
2 points
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Liabilities
Assests
Net Worth
Capital
- Which One Of The Following Equation Is Correct?
2 points
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Owner’s Equity = Asset + Liability
Owner’s Equity = Asset – Liability
Assets = Liabilities + Owner’s equity
Assets = Liabilities – Owner’s equity
- Accounting Conventions are established by ______
2 points
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Law
Rules
Common Accounting Practices
Both a and b
- In an Account if Debit side > Credit side, the balance is known as the
2 points
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Negative balance
Debit balance
Positive balance
Credit balance
- Rs.8,000 incurred for up gradation of computer by installation of 4 GB Ramis
2 points
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Capital Receipt
Capital Expenditure
Revenue Expenditure
None of these
- Which One Of The Following Is A Capital Expenditure?
2 points
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Royalty paid in installments for the purchase of rights to manufacture and sell patient
medicines
Compensation paid to Directors on termination of their services
Expenditures incurred in connection with renewal of Trade mark
Gratuities paid to Employees on termination of their services
- A bad debt recovered during the year will be
2 points
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Capital expenditure
Capital Receipt
Revenue Receipt
Revenue expenditure
- Rs. 50,000 received from issue of shares including Rs. 10,000 by way ofpremium. The Premium amount will be
2 points
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Capital Receipt
Capital Profit
Revenue Receipt
Revenue Profit
- Ram purchased a car Rs.10,000 paid Rs.3000 as cash and balance amountwill be paid in three equal installments/ Due to this
2 points
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Total assets increase by Rs.10,000
Total liabilities increase by Rs.3000
Assets will increase by Rs.7000 with corresponding increase in liability by Rs.7000
Both (b) and (c)
- Paid Rent out of Personal cash
2 points
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Increase in Expense and Decrease in Liability
Increase in Expense and Increase in Liability
Increase in Expenses and Increase in Assets
Increase in Expenses and Decrease in Assets
- Paid Salary
2 points
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Affect Nominal a/c and Real a/c
Affect Nominal a/c and Personal a/c
Affect Nominal a/c only
None of these
- Sold goods for cash(including profit Rs.1000) Rs. 5000
2 points
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Increase Assets Rs. 5000
Decrease Assets Rs. 4000
Both a and b
Neither a nor b
- A trial balance will not balance if
2 points
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correct entry is posted twice
The purchase on credit basis is debited to purchases and credited to cash
Rs.500 cash payment to creditors is debited to creditors for Rs 500 and credited to
cash as Rs 500
None of the above
- Closing stock appearing in the trial balance is shown on the__
2 points
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Trading account only
Balance sheet only
Both a and b
Neither a nor b
- Profit or loss have no effect on Net Worth
2 points
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True
False
Partly true
None of these
