Financial Accounting - Mms I Mid Term Test

34 Questions | Total Attempts: 119

SettingsSettingsSettings
Please wait...
Financial Accounting - Mms I Mid Term Test

.


Questions and Answers
  • 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

Back to Top Back to top