Financial Accounting - part 1

Q1

Example of Intangible asset

A Debtors
B Plant and Machinery
C Goodwill
D None of these

Q2

Luca Pacioli is referred to as "The Father of Accounting and Bookkeeping". What is his nationality?

A Italian
B French
C Polish
D Danish

Q3

What factor could have caused the g demand to decrease?

A incomes increased
B expectation that prices will increase
C a decrease in the price of a substi tute
D increase in market size

Q4

Cash is a current asset.

A True
B False
C Don’t Know

Q5

Sold goods on credit effects on

A Goods only
B Debtors only
C Goods and Debtors
D Cash and Debtors

Q6

Residual value of the asset means:

A The price paid on the purchase of asset
B The amount realised on the sale of asset
C The net amount expected to realise on final disposal of assets
D Reduced value of the asset every year

Q7

Nominal accounts

A Debit the expenses and losses credit income and gains
B Credit the expenses and losses debit income and gain
C All expenses and income on credit side
D All of above

Q8

What are economic activities?

A rules in a game
B a sport
C how a government is run
D ways in which people make a living

Q9

On May 1, 2012, your checking account beginning balance was $200. On May 2, you deposited $562.62. Then, you wrote a check for $126.74 to pay for groceries on May 3. On May8, you made an online payment for $186.91 and received $0.02 in interest from your bank. What is your ending balance

A $200.02
B $449.63
C $352.79
D $448.99

Q10

Financial position of a business is ascertained on the basis of

A Journal
B Trial balance
C Balance sheet
D Ledger

Q11

Shareholders receive from the company :

A Interest
B Commission
C Profit
D Dividend

Q12

F shows

A Total Cash you want to keep
B Total cash putting into bank
C Total Checks putting into bank
D Total of checks and cash putting into bank

Q13

The overall purpose of accounting is to

A maintain accurate reports.
B compile the business’s expenses.
C keep track of sales.
D control the finances of the business.

Q14

Integrity means

A trying to palease the client
B listening to the clients viewpoint
C preparing accounts to the clients specifications
D preparing accounts to show a ’true and fair wiew’

Q15

Accounting starts

A Where Accountancy ends.
B Where book keeping ends.
C Where financial statements ends.
D Where analysis of financial state ment ends.

Q16

Creditors and banks are the example of users of accounting and there known as ___ users.

A Internal
B External
C None of the above
D Both

Q17

The profit or less on revaluation of assets and liabilities is transferred to the capital account of

A The old partners
B The new partner
C All the partners
D The sacrificing ratio

Q18

The value of the asset cannot be brought down to zero ___ method

A Original cost method
B Diminishing Balance method
C Annuity method

Q19

Due to which Concept qualitative transactions are not recorded in the books?

A Business Entity Concept
B Money Measurement Concept
C Historical Cost Concept
D Dual Aspect Concept

Q20

A firm has assets RS. .1, 00, 000 and the external liabilities of RS. .60, 000 its capital would be

A RS. .1, 60, 000
B RS. .60, 000
C RS. .1, 00, 000
D RS. .40, 000

Q21

Fill in the blank

A Worker
B Labour
C Inventory
D Cost

Q22

What is the difference between total utility and marginal utility?

A Total utility is the dollar value of all consumption; marginal utility is the dollar value of one more unit of consumption
B Total utility is consumers’ satisfaction of the last unit of consumption; marginal utility is consumers’ satisfaction from all consumption.
C Total utility is the value to sellers of all production; marginal utility is the value to sellers of one more unit of production
D Total utility is consumers’ satisfaction with all consumption; marginal utility is consumers’ satisfaction from one more unit of consumption.

Q23

Accounting voucher is prepared from

A Source voucher
B Journal entry
C Ledger
D All of these

Q24

Which of the following show cases strength of a business?

A improved company reputation
B skilled and knowledgeable staff
C entry of competitors
D Costly set-up

Q25

Budgeting includes only the financial aspects of the plan and not any non financial aspects such as the number of physical units manufactured

A True
B False