STD - 11TH ACCOUNTANCY - EM ONLINE QUIZ BOOK BACK ONE MARK

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Lesson 1 - 14

Prepared by Muthu Selvam Madurai Cell : 9842104826

 

1. Under the written down value method of depreciation, the amount of depreciation is
   
   1.   Decreasing every year
   2.   None of the above
   3.   Uniform in all the years
   4.   Increasing every year
2. The root of financial accounting system is
   1.   Social accounting
   2.   Responsibility accounting
   3.   Stewardship accounting
   4.   Management accounting
3. Balance as per cash book is ` 2, 000. Bank charge of ` 50 debited by the bank is not yet shown in the cash book. What is the bank statement balance now?
   1.   1,950 credit balance
   2.   1,950 debit balance
   3.   2,050 debit balance
   4.   2,050 credit balance
4. Which one of the following is not a branch of accounting?
   1.   Financial accounting
   2.   Management accounting
   3.   Human resources accounting
   4.   None of the above
5. When money is withdrawn from bank, the bank
   1.   Credits customer’s account
   2.   Debits and credits customer’s account
   3.   None of these
   4.   Debits customer’s account
6. A bank reconciliation statement is prepared with the help of
   1.   Cash book
   2.   Petty cash book
   3.   Bank statement
   4.   Bank statement and bank column of the cash book
7. An example of output device is
   
   1.   Keyboard
   2.   Scanner
   3.   Printer
   4.   Mouse
8. Which one of the following is not a main objective of accounting?
   1.   Solving tax disputes with tax authorities
   2.   Ascertainment of the profitability of the business
   3.   Systematic recording of transactions
   4.   Ascertainment of the financial position of the business
9. The business is liable to the proprietor of the business in respect of capital introduced by the person according to
   1.   Business entity concept
   2.   Cost concept
   3.   Money measurement concept
   4.   Dual aspect concept
10. Which one is not a component of computer system?
    
    1.   Output unit
    2.   Input unit
    3.   Data
    4.   Central Processing Unit
11. The rule of stock valuation ‘cost price or realisable value’ whichever is lower is based on the accounting principle of:
    1.   Materiality
    2.   Conservatism
    3.   Accrual
    4.   Money measurement
12. GAAPs are:
    1.   Generally Accepted Accounting Provisions
    2.   None of these
    3.   Generally Accepted Accounting Principles
    4.   Generally Accepted Accounting Policies
13. The difference of totals of both debit and credit side of trial balance is transferred to:
    1.   Trading account
    2.   Difference account
    3.   Suspense accoun
    4.   Miscellaneous account
14. One of the limitations of computerised accounting system is
    
    1.   Accuracy
    2.   Storage
    3.   System failure
    4.   Versatility
15. In India, Accounting Standards are issued by
    1.   Supreme Court of India
    2.   The Institute of Chartered Accountants of India
    3.   The Cost and Management Accountants of India
    4.   Reserve Bank of India
16. Depreciation is to be calculated from the date when
    
    1.   Purchase order is made
    2.   Invoice of assets is received
    3.   Asset is put to use
    4.   Asset is received at business premises
17. A firm has assets of ` 1,00,000 and the external liabilities of ` 60,000. Its capital would be
    1.   60,000
    2.   1,00,000
    3.   40,000
    4.   1,60,000
18. A bank statement is a copy of
    1.   A customer’s account in the bank’s book
    2.   Bank column of the cash book
    3.   Cheques issued by the business
    4.   Cash column of the cash book
19. Residual value of an asset means the amount that it can fetch on sale at the ____of its useful life.
    
    1.   End
    2.   Middle
    3.   None
    4.   Beginning
20. Cash withdrawn by the proprietor from the business for his personal use’ causes
    1.   Increase in one asset and increase in liabilities
    2.   Decrease in assets and decrease in owner’s capital
    3.   Increase in one asset and decrease in another asset
    4.   Increase in asset and decrease in capital
21. The incorrect accounting equation is
    1.   Assets = Capital + Liabilities
    2.   Capital = Assets – Liabilities
    3.   Assets = Liabilities + Capital
    4.   Liabilities = Assets + Capital
22. The process of transferring the debit and credit items from journal to ledger accounts is called
    1.   Casting
    2.   Posting
    3.   Journalising
    4.   Balancing
23. Real account deals with
    1.   Incomes and gains
    2.   Expenses and losses
    3.   Assets
    4.   Individual persons
24. Purchase returns book is used to record
    1.   returns of goods to the supplier for which cash is not received immediately
    2.   None of the above
    3.   returns of assets to the supplier for which cash is received immediately
    4.   returns of assets to the supplier for which cash is not received immediately
25. Amount spent on increasing the seating capacity in a cinema hall is
    
    1.   Deferred revenue expenditure
    2.   Capital expenditure
    3.   None of the above.
    4.   Revenue expenditure
26. The cash book records
    1.   All cash payments
    2.   All cash receipts
    3.   All cash receipts and All cash payments
    4.   All credit transactions
27. Net profit of the business increases the
    
    1.   Drawings
    2.   Debts
    3.   Capital
    4.   Receivables
28. Accrued interest on investment will be shown
    
    1.   On the assets side of balance sheet
    2.   None of these
    3.   On the credit side of profit and loss account and On the assets side of balance sheet
    4.   On the credit side of profit and loss account
29. Withdrawal of cash from business by the proprietor should be credited to
    1.   Drawings A/c
    2.   Cash A/c
    3.   Purchases A/c
    4.   Capital A/c
30. Net profit is
    
    1.   Credited to capital account
    2.   Debited to drawings account
    3.   Debited to capital account
    4.   Credited to drawings account
31. Prepaid rent is a
    1.   Nominal A/c
    2.   Real A/c
    3.   Personal A/c
    4.   Representative personal A/c
32. Main objective of preparing ledger account is to
    1.   Ascertain the financial position
    2.   Ascertain the profit or loss
    3.   Know the balance of each ledger account
    4.   Ascertain the profit or loss and the financial position
33. The process of finding the net amount from the totals of debit and credit columns in a ledger is known as
    1.   Posting
    2.   Casting
    3.   Journalising
    4.   Balancing
34. Debit balance in the bank column of the cash book means
    1.   None of the above
    2.   Credit balance as per bank statement
    3.   Debit balance as per bank statement
    4.   Overdraft as per cash book
35. In double entry system of book keeping, every business transaction affects
    1.   Same account on two different dates
    2.   Minimum of two accounts
    3.   Two sides of the same account
    4.   Minimum three accounts
36. Who is considered to be the internal user of the financial information?
    1.   Government
    2.   Employee
    3.   Customer
    4.   Creditor
37. Bank overdraft should be shown
    
    1.   Profit and loss account
    2.   On the liabilities side
    3.   On the assets side
    4.   In the trading account
38. Trial balance is a
    1.   Statement
    2.   Ledger
    3.   Journal
    4.   Account
39. Accounting equation is formed based on the accounting principle of
    1.   Accrual
    2.   Going concern
    3.   Dual aspect
    4.   Consistency
40. Closing stock is valued at
    
    1.   Market price
    2.   Cost price or market price whichever is higher
    3.   Cost price
    4.   Cost price or net realisable value whichever is lower
41. In accounting, computer is commonly used in the following areas:
    
    1.   Stores accounting
    2.   All the above
    3.   Payroll accounting
    4.   Recording of business transactions
42. Drawings appearing in the trial balance is
    1.   Added to the capital
    2.   Subtracted from the purchases
    3.   Added to the purchases
    4.   Subtracted from the capital
43. The trial balance contains the balances of
    1.   Only real accounts
    2.   Only personal accounts
    3.   All accounts
    4.   Only nominal accounts
44. Goods returned by Senguttuvan were taken into stock, but no entry was passed in the books. While rectifying this error, which of the following accounts should be debited?
    1.   Senguttuvan account
    2.   Returns outward account
    3.   Sales returns account
    4.   Purchases returns account
45. Small payments are recorded in a book called
    
    1.   Purchase book
    2.   Petty cash book
    3.   Bills payable book
    4.   Cash book
46. A list which contains balances of accounts to know whether the debit and credit balances are matched is
    1.   Day book
    2.   Trial balance
    3.   Balance sheet
    4.   Journal
47. Accounting equation signifies
    1.   Liabilities of a business are equal to assets
    2.   Capital of a business is equal to assets
    3.   Assets of a business are equal to the total of capital and liabilities
    4.   Capital of a business is equal to liabilities
48. Under straight line method, the amount of depreciation is
    
    1.   Decreasing every year
    2.   Increasing every year
    3.   Constant for all the years
    4.   Fluctuating every year
49. A transaction not recorded at all is known as an error of
    1.   Duplication
    2.   Principle
    3.   Partial omission
    4.   Complete omission
50. While preparing the trial balance, the accountant finds that the total of the credit column is short by ` 200. This difference will be
    1.   Adjusted to any of the credit balance
    2.   Debited to suspense account
    3.   Adjusted to any of the debit balance
    4.   Credited to suspense account
51. A depreciable asset may suffer obsolescence due to____
    
    1.   Passage of time
    2.   Wear and tear
    3.   None of the above
    4.   Technological changes
52. The source document or voucher used for recording entries in sales book is
    1.   Cash receipt
    2.   Credit note
    3.   Invoice
    4.   Debit note
53. The account which has a debit balance and is shown in the debit column of the trial balance is
    1.   Bills payable account
    2.   Drawings account
    3.   Capital account
    4.   Sundry creditors account
54. Trial balance is prepared:
    1.   On a particular date
    2.   At the end of the year
    3.   For a year
    4.   None of the above
55. Which of the following method(s) can be used for preparing trial balance?
    1.   Balance method
    2.   Total and Balance method
    3.   All the above
    4.   Total method
56. A periodic total of the purchases book is posted to the
    1.   debit side of the purchases account
    2.   credit side of the sales account
    3.   debit side of the sales account
    4.   credit side of the purchases account
57. The total of the sales book is posted periodically to the credit of
    1.   Purchases account
    2.   Cash account
    3.   Journal proper
    4.   Sales account
58. If the total of the debit side of an account exceeds the total of its creditside,itmeans
    1.   Nil balance
    2.   Debit balance
    3.   Debit and credit balance
    4.   Credit balance
59. Wages paid for installation of machinery wrongly debited to wages account is an error of
    1.   Principle
    2.   Duplication
    3.   Complete omission
    4.   Partial omission
60. Purchases of fixed assets on credit basis is recorded in
    1.   Purchases book
    2.   Sales book
    3.   Purchases returns book
    4.   Journal proper
61. In Triple column cash book, the balance of bank overdraft brought forward will appear in
    1.   Bank column credit side
    2.   Cash column credit side
    3.   Bank column debit side
    4.   Cash column debit side
62. Which of the following statements is not true?
    1.   Assets purchased on credit are recorded in journal proper
    2.   Cash discount is recorded in the books of accounts
    3.   Trade discount is recorded in the books of accounts
    4.   3 grace days are added while determining the due date of the bill
63. Closing entries are recorded in
    1.   Journal proper
    2.   Cash book
    3.   Ledger
    4.   Purchases book
64. Pre-operative expenses are
    
    1.   Prepaid revenue expenditure
    2.   Deferred revenue expenditure
    3.   Revenue expenditure
    4.   Capital expenditure
65. Cash book is a
    1.   Subsidiary book
    2.   Principal book
    3.   Journal proper
    4.   Both subsidiary book and principal book
66. Sales book is used to record
    1.   all credit sales of assets
    2.   all sales of assets and goods
    3.   all credit sales of goods
    4.   all sales of goods
67. When a firm maintains a simple cash book, it need not maintain
    
    1.   Purchases account in the ledger
    2.   Sales account in the ledger
    3.   Cash account in the ledger
    4.   Capital account in the ledger
68. A cash book with discount, cash and bank column is called
    
    1.   Three column cash book
    2.   Petty cash book
    3.   Simple cash book
    4.   Double column cash book
69. After the preparation of ledger, the next step is the preparation of
    1.   Journal
    2.   Trial balance
    3.   Profit and loss account
    4.   Trading account
70. Which of the following is recorded as contra entry?
    
    1.   Withdrew cash from bank for personal use
    2.   When bank charges interest
    3.   Withdrew cash from bank for office use
    4.   Direct payment by the customer in the bank account of the business
71. If there is no existing provision for doubtful debts, provision created for doubtful debts is
    
    1.   Debited to sundry debtors account
    2.   Credited to bad debts account
    3.   Debited to profit and loss account
    4.   Debited to bad debts account
72. If the debit and credit aspects of a transaction are recorded in the cash book, it is
    
    1.   Compound entry
    2.   Simple entry
    3.   Contra entry
    4.   Single entry
73. Petty cash may be used to pay
    
    1.   The expenses relating to postage and conveyance
    2.   Purchase of raw materials
    3.   Purchase of furniture and fixtures
    4.   Salary to the Manager
74. A bank reconciliation statement is prepared by
    1.   Creditor to the business
    2.   Debtor to the business
    3.   Business
    4.   Bank
75. A bank reconciliation statement is prepared to know the causes for the difference between:
    1.   The balance as per the bank column of the cash book and the bank statement
    2.   The balance as per petty cash book and the cash book
    3.   The balance as per the cash column of the cash book and bank statement
    4.   The balance as per the cash column of the cash book and bank column of the cash book
76. Sales return book is used to record
    1.   Returns of goods by the customer for which cash is not paid immediately
    2.   Returns of assets by the customer for which cash is paid immediately
    3.   Returns of goods by the customer for which cash is paid immediately
    4.   Returns of assets by the customer for which cash is not paid immediately
77. TALLY is an example of
    
    1.   Tailor-made accounting software
    2.   Ready-made accounting software
    3.   In-built accounting software
    4.   Customised accounting software
78. Which one of the following is not a timing difference?
    1.   Cheque issued but not yet presented for payment
    2.   Amount directly paid into the bank
    3.   Cheque deposited but not yet credited
    4.   Wrong debit in the cash book
79. Error of principle arises when
    1.   There are wrong postings and wrong castings
    2.   There is complete omission of a transaction
    3.   Distinction is not made between capital and revenue items
    4.   There is partial omission of a transaction
80. The difference in trial balance is taken to
    1.   The trading account
    2.   The profit and loss account
    3.   The suspense account
    4.   The capital account
81. Which one of the following is representative personal account?
    1.   Building A/c
    2.   Balan & Co
    3.   Outstanding salary A/c
    4.   Mahesh A/c
82. The balance in the petty cash book is
    
    1.   A profit
    2.   An expense
    3.   An asset
    4.   A liability
83. The amount brought into the business by the proprietor should be credited to
    1.   Cash account
    2.   Capital account
    3.   Drawings account
    4.   Suspense account
84. Goodwill is classified as
    
    1.   A liquid asset
    2.   An intangible asset
    3.   A tangible asset
    4.   A current asset
85. Which of the following errors will not affect the trial balance?
    1.   Posting an amount in the wrong account but on the correct side
    2.   Wrong balancing of an account
    3.   Carried forward wrong amount in a ledger account
    4.   Wrong totalling of an account
86. A credit purchase of furniture from Athiyaman was debited to purchases account. Which of the following accounts should be debited while rectifying this error?
    1.   Athiyaman account
    2.   Furniture account
    3.   Purchases account
    4.   None of these
87. Which of the following errors will be rectified using suspense account?
    1.   Goods returned by Narendran was not recorded in the books
    2.   Goods returned by Akila ` 900 was recorded in the sales returns book as ` 90
    3.   Purchases returns book was undercast by ` 100
    4.   A credit sale of goods to Ravivarman was not entered in the sales book.
88. The concept which assumes that a business will last indefinitely is
    1.   Going concern
    2.   Periodicity
    3.   Business Entity
    4.   Conservatism
89. If the total charge of depreciation and maintenance cost are considered, the method that provides a uniform charge is
    
    1.   Annuity method
    2.   Straight line method
    3.   Insurance policy method
    4.   Diminishing balance method
90. Expenditure incurred ` 20,000 for trial run of a newly installed machinery will be
    
    1.   Revenue expenditure
    2.   Deferred revenue expenditure
    3.   Preliminary expense
    4.   Capital expenditure
91. People who write codes and programes are called as
    
    1.   System analysts
    2.   System designers
    3.   System programmers
    4.   System operators
92. Depreciation is caused by
    
    1.   Lapse of time,Usage and Obsolescence
    2.   Usage
    3.   Lapse of time
    4.   Obsolescence
93. For which of the following assets, the depletion method is adopted for writing off cost of the asset?
    
    1.   Mines and quarries
    2.   Trademark
    3.   Buildings
    4.   Plant and machinery
94. Which of the following is not the salient feature of bank reconciliation statement?
    1.   Any undue delay in the clearance of cheques will be shown up by the reconciliation
    2.   It helps in finding the actual position of the bank balance
    3.   Reconciliation statement will discourage the accountant of the bank from embezzlement
    4.   Reconciliation statement is prepared only at the end of the accounting period
95. If the rate of depreciation is same, then the amount of depreciation under straight line method vis-à-vis written down value method will be
    
    1.   Equal in all years
    2.   Equal in the first year but higher in subsequent years
    3.   Lower in the first year but equal in subsequent years
    4.   Equal in the first year but lower in subsequent years
96. Salaries appearing in the trial balance is shown on the
    
    1.   Debit side of trading account
    2.   Liabilities side of the balance sheet
    3.   Debit side of profit and loss account
    4.   Assets side of the balance sheet
97. The total of purchases book was overcast. Which of the following accounts should be debited in the rectifying journal entry?
    1.   Suspense account
    2.   Creditor account
    3.   Purchases account
    4.   None of the above
98. Accounting software is an example of
    
    1.   Application software
    2.   Utility software
    3.   Operating software
    4.   System software
99. Amount received from IDBI as a medium term loan for augmenting working capital
    
    1.   Capital expenditures
    2.   Revenue expenditures
    3.   Capital receipt
    4.   Revenue receipts
100. Balance as per bank statement is ` 1, 000. Cheque deposited, but not yet credited by the bank is ` 2, 000. What is the balance as per bank column of the cash book?
     1.   3,000 favourable
     2.   1,000 overdraft
     3.   3,000 overdraft
     4.   1,000 favourable
101. Customised accounting software is suitable for
     
     1.   Large, medium business
     2.   None of the above
     3.   Small, conventional business
     4.   Large, typical business
102. Current assets does not include
     1.   Furniture
     2.   Prepaid expenses
     3.   Cash
     4.   Stock
103. Purchases book is used to record
     1.   all credit purchases of assets
     2.   all credit purchases of goods
     3.   all purchases of goods
     4.   all purchases of assets
104. Which one of the following is not a method of codification of accounts?
     
     1.   Access codes
     2.   Block codes
     3.   Sequential codes
     4.   Mnemonic codes
105. Interest on bank deposits is
     
     1.   Revenue receipt
     2.   Capital expenditures
     3.   Revenue expenditures
     4.   Capital receipt
106. Revenue expenditure is intended to benefit
     
     1.   Current period
     2.   Any period
     3.   Past period
     4.   Future period
107. Balance sheet is
     
     1.   None of the above
     2.   Neither a statement nor an account
     3.   An account
     4.   A statement
108. Which of the following is/are the objective(s) of preparing trial balance?
     1.   Helping in the preparation of final accounts
     2.   Serving as the summary of all the ledger accounts
     3.   Examining arithmetical accuracy of accounts
     4.   All the above
109. Which method shall be efficient, if repairs and maintenance cost of an asset increases as it grows older.
     
     1.   Annuity method
     2.   Sinking fund method
     3.   Straight line method
     4.   Reducing balance method
110. Carriage inwards will be shown
     
     1.   In the profit and loss account
     2.   In the trading account
     3.   On the liabilities side
     4.   On the assets side
111. Balance sheet shows the of the business.
     
     1.   Profitability
     2.   Purchases
     3.   Sales
     4.   Financial position
112. Closing stock is an item of .
     
     1.   Intangible asset
     2.   Current asset
     3.   Fictitious asset
     4.   Fixed asset
113. Errors not affecting the agreement of trial balance are
     1.   Errors of partial omission
     2.   Errors of principle
     3.   Errors of overcasting
     4.   Errors of undercasting
114. J.F means
     1.   Journal page number
     2.   Voucher number
     3.   Order number
     4.   Ledger page number
115. Financial position of a business is ascertained on the basis of
     1.   Management accounting
     2.   Human resources accounting
     3.   None of the above
     4.   Journal
116. A prepayment of insurance premium will appear in
     
     1.   The balance sheet on the assets side
     2.   The balance sheet on the liabilities side
     3.   The profit and loss account on the credit side
     4.   The trading account on the debit side