The nature of financial accounting is:
A. Historical
B. Forward looking
C. Analytical
D. Social
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Interest on drawings is:
A. Expenditure for the business
B. Cost for the business
C. Gain for the business
D. None of the above
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Which of these items would be accounted for as an expense?
A. Repayment of bank loan
B. Dividend to stock holders
C. The purchase of land
D. Payment of current period rent
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Debit the receiver credit the giver rule for:
A. Real a/c
B. Personal a/c
C. Nominal a/c
D. None of these
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Which of the following statements is correct in regards to tariff barrier?
1. It affects the price of imported goods.
2. It affects the quantity of imported goods.
Select the correct answer:
A. Only 1
B. Only 2
C. Both 1 and 2
D. Neither 1 nor 2
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Liabilities in balance sheet include the following items:
A. Long-term loan
B. Short-term loan
C. Owner's fund
D. All of these
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P & L a/c is prepared for a period of one year by following:
A. Consistency concept
B. Conservatism concept
C. Accounting period concept
D. Cost concept
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The word accounting can be classified into:
A. Financial accounting and management accounting
B. Financial accounting and cost accounting
C. Financial accounting, management accounting and cost accounting
D. Cannot be classified
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The basic sequence in the accounting process can best be described as:
A. Transaction, journal entry, source document, ledger account, trial balance
B. Source document, transaction, ledger account, journal entry, trial balance
C. Transaction, source document, journal entry, trial balance, ledger account
D. Transaction, source document, journal entry, ledger account, trial balance
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Book-keeping is mainly concerned with:
A. Recording of financial data relating to business operation
B. Designing the systems in recording classifying, summarizing the recorded data
C. Interpreting the data for internal and external users
D. None of these
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Credit balance of profit & loss a/c shown on:
A. Asset side of balance sheet
B. Liability side of balance sheet
C. Not shown in balance sheet
D. Half on asset side and half on liability side
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The amount of salary paid to Suresh should be debited to:
A. The account of Suresh
B. Salaries a/c
C. Cash a/c
D. Bank a/c
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When the completion stage of the contract is more than half, the profit is to be credited to profit and loss account will be equal to?
A. 1/3rd
B. 2/3rd
C. 2/5th
D. 1/5th
E. 4/5th
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When a cement company, a steel company and a chemical company combine, it is a case of:
A. Horizontal combination
B. Vertical combination
C. Circular combination
D. None of the above
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The cost concept records the figures at:
A. Market values
B. Actual amount paid
C. Actual amount or market values whichever is less
D. MRP maximum retail price
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Which of the following is not the function of stock exchange?
A. Valuation of securities
B. Protecting investors
C. Ensuring higher profits
D. Organizing savings
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All those to whom business owes money are:
A. Debtors
B. Investors
C. Creditors
D. Shareholders
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The concept of present value is based on the :
A. Principle of compounding
B. Principle of discounting
C. A and B
D. None of the above
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Preliminary expenses are recorded in . . . . . . . .
A. Equity and liabilities - Liability side of B/S
B. Current liabilities - Liability side of B/S
C. Fixed assets - Asset side of B/S
D. Asset side of B/S
Select an option to see the answer and solution.
Which of the following is not a function of Foreign Exchange Market?
A. Stabilization function
B. Hedging function
C. Credit function
D. Transfer function
Select an option to see the answer and solution.