Financial Accounting - Mms I Mid Term Test
.
- 1.Write a Brief Note on non-applicability of Ind AS
- 2.Describe in brief the process of accounting
- 3.Which of the following is not a sub field of Accounting?
- A.
Book Keeping
- B.
Management Accounting
- C.
Financial Accounting
- D.
Cost Accounting
- 4.Purpose of an accounting system includes all of the following except
- A.
Interpret and record the effects of business transaction
- B.
Classify the effects of transactions to facilitate the preparation of reports
- C.
Summarize and communicate information to users
- D.
Dictate the specific types of business enterprise transactions that the enterprise may engage in
- 5.Book Keeping is mainly concerned with
- A.
Recording of financial data
- B.
Designing the systems in recording, classifying and summarizing the recorded data
- C.
Interpreting the data for internal and external users
- D.
Analyzing the financial data
- 6.All of the following is function of accounting except
- A.
Decision Making
- B.
Forecasting
- C.
Measurement
- D.
Ledger Posting
- 7.Financial Position of a business is ascertained on the basis of
- A.
Records under the book keeping process
- B.
Trial Balance
- C.
Accounting Reports
- D.
Balance Sheet
- 8.Financial Statements are not a part of book keeping
- A.
True
- B.
False
- 9.Financial Statements do not consider
- A.
Assets expressed in monetary terms
- B.
Liabilities expressed in monetary terms
- C.
Only assets expressed in non-monetary terms
- D.
Assets and Liabilities expressed in non-monetary terms
- 10.On January 1st Mr Kulkarni paid rent of Rs. 5,000. This can be classified as
- A.
An event
- B.
A Transaction
- C.
A transaction as well as an event
- D.
Neither a transaction nor an event
- 11.Users of accounting information includes
- A.
Creditors & Customers
- B.
Creditors but not Customers
- C.
Neither Customers Nor Creditors
- D.
Customers but not Creditors
- 12.On March 31, 2015 after sale of goods worth Rs. 2,000 Ms Sumedha is left with a closing inventory of Rs. 10,000. This is
- A.
An event
- B.
A Transaction
- C.
A transaction as well as an event
- D.
Neither a transaction nor an event
- 13.All the following items are classified as fundamental accounting assumption except
- A.
Consistency
- B.
Entity
- C.
Going Concern
- D.
Accrual
- 14.Two primary qualitative charactereistics of financial statements are
- A.
Understandability and Materiality
- B.
Relevance and Reliability
- C.
Neutrality and Understandability
- D.
Materiality and Reliability
- 15.Cindrella Enterprises follows the written down value method of depreciation year after year due to
- A.
Comparability
- B.
Convenience
- C.
Consistency
- D.
Computability
- 16.Mr Nitesh purchased goods for Rs. 15,00,000 and sold 80% of them amounting Rs. 18,00,000 and met expenses amounting Rs. 2,50,000 during the year 2014-15. He counted net profit as Rs. 3,50,000. Which of the accounting concept was followed by him?
- A.
Entity
- B.
Periodicity
- C.
Matching
- D.
Conservatism
- 17.Mr. Nitesh purchased goods for Rs. 25,00,000 and sold 80% of them during the accounting year 2014-15. The market value of the remaining goods was Rs. 4,00,000. He valued the closing inventory at cost. He violated the concept of
- A.
Money Measurement
- B.
Conservatism
- C.
Cost
- D.
Periodicity
- 18.Assets are held in business for
- A.
Resale
- B.
Conversion into Cash
- C.
Earning Revenue
- D.
Creating Liabilities
- 19.The determination of expenses for an accounting period is based on the principle of
- A.
Objectivity
- B.
Materiality
- C.
Matching
- D.
Periodicity
- 20.Economic life of an enterprise is split into the periodic interval to measure its performance as per
- A.
Entity
- B.
Matching
- C.
Periodicity
- D.
Accrual
- 21.Consider following data pertaining to DBCL:Cost of Machinery Rs. 10,00,000; Installation Charges Rs. 1,00,000; Market Value as on 31st March 2015 Rs. 12,00,000.While finalizing accounts, DBCL values the machinery at Rs. 12,00,000. Which of the following concept is violated by DBCL
- A.
Cost
- B.
Matching
- C.
Accrual
- D.
Periodicity
- 22.Accounting Standards in India are issued by
- A.
Central Government
- B.
Reserve Bank of India
- C.
Ministry of Finance
- D.
Institute of Chartered Accountants of India
- 23.Functions of Accounting Standards includes following except
- A.
Harmonize Accounting Policies
- B.
Eliminate the non-comparability of financial statements
- C.
Improve the reliability of financial statements
- D.
Facilitate manipulation
- 24.How many Accounting Standards have been issued by ICAI?
- A.
25
- B.
39
- C.
32
- D.
22
- 25.It is essential to standardize the accounting principle and policies in order to ensure
- A.
Transparency
- B.
Consistency
- C.
Comparability
- D.
All of the options given
Featured Quizzes
Popular Topics
Back to top