Financial and Management Accounting Unit1 - 4 Mark Quiz Questions 1.Capital Interchange of Goods on a w ide Spread level Commerce Mechanism to keep information on Permanent basis Private property Change of ow ner Ship form one to another. Money A medium of Exchange Writing Wealth that creates 2.Book keeping and accounting seem to be synonymous. But they are different in certain respects. Basing on the differences, match the following. Book-Keeping Accounting 1.Process a. Final accounts e.Book keeping 2.Purpose b. Transactions f.Analytical 3.Basis c. Repetitive g.Reporting 4. Nature of work d. Recording h.Interpreting & presenting the final accounts a. 1 – a, h; 2 – b, f; 3 – c, e; 4 – d, g b. 1 – d, h ; 2 – a, g ; 3 – b, e ; 4 – c, f c. 1 - b, f ; 2 - c ; h; 3 - d, g; 4 - a, e d. 1 - c, g ; 2 - b, f ; 3 - a, h; 4 – d, e
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Question Bank of Financial and Management Accounting_ 4 Mark
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Financial and Management Accounting
Unit1 - 4 Mark Quiz Questions
1.Capital Interchange of Goods on a w ide Spread level
Commerce Mechanism to keep information on Permanent basis
Private property Change of ow ner Ship form one to another.
Money A medium of Exchange
Writing Wealth that creates
2.Book keeping and accounting seem to be synonymous. But they are different in certain
respects. Basing on the differences, match the following.
Book-Keeping Accounting
1.Process a. Final accounts e.Book keeping
2.Purpose b. Transactions f.Analytical
3.Basis c. Repetitive g.Reporting
4. Nature of
work d. Recording
h.Interpreting &
presenting the final
accounts
a. 1 – a, h; 2 – b, f; 3 – c, e;
4 – d, g
b. 1 – d, h ; 2 – a, g ; 3 – b, e
; 4 – c, f
c. 1 - b, f ; 2 - c ; h; 3 - d, g;
4 - a, e
d. 1 - c, g ; 2 - b, f ; 3 - a, h;
4 – d, e
Unit2 - 4 Mark Quiz Questions
1.The firm has certain stock, which is in high demand and
has high market value. The firm followed cost method of
valuation.
Consistency concept
A business makes a loss in an year, but the business shall
continue for long time Materiality concept
Accountant of a firm is worried with the total amount of
drawings, the partner made. He need not worry hoiw did he
spend it because of "
Going concern concept
If a firm believes that some of the debtors are likely to
become bad for which some reserve is to be provided Prudence concept
2."Moolchand, a businessman in sweets has been in this business for more than
10 years. He did not bother to maintain any accounts all along, even though he was
getting sizeable amount of profit every year. His son, who has completed B.Com told him
that mai"
Answer for 'a' What concept of Accounting is missing??
a. C. Money measurement concept
b. Accrual concept
c. Concept of periodicity
d. Concept of income recognition
3."Moolchand, a businessman in sweets has been in this business for more than
10 years. He did not bother to maintain any accounts all along, even though he was
getting sizeable amount of profit every year. His son, who has completed B.Com told him
that mai"
Answer for 'b' How much expenses should be considered for 2005?
a. Rs. 1,00,000 on an average after deducting the cost of shop
b. Rs. 3,00,000
c. Rs. 1,50,000
d. Rs. 1,05,000 because Rs.10,50,000 is divided by 10 years
4."Moolchand, a businessman in sweets has been in this business for more than
10 years. He did not bother to maintain any accounts all along, even though he was
getting sizeable amount of profit every year. His son, who has completed B.Com told him
that mai"
Answer for 'c' How do you treat expenses on shop construction?
a. The expenses belong to the past.
b. The expenses are business expenses
c. The expenses are part and parcel of revenue expenses
d. The expenses are capital in nature and should be excluded from total.
5."Moolchand, a businessman in sweets has been in this business for more than
10 years. He did not bother to maintain any accounts all along, even though he was
getting sizeable amount of profit every year. His son, who has completed B.Com told him
that mai"
Answer for 'd' What is approximate profit or loss for 2005?
a. Rs. 4,00,000
b. Rs. 3,00,000
c. Rs. 5,00,000
d. Rs. 2.95,000
6.Mr. Murthy is the Managing Director of Sole Divine Company, purchased a big truck
for Rs. 15,00,000 on cash for publicity and delivery from Tata Mohan Co. The Sole
Divine company is organised as a company with Mr. Ekanth Ram as the sole shareholder.
Accor
a. Ekanth Ram and Tata Mohan Company
b. Mr. Murthy and Sole Divine Company
c. Mr. Murthy and Ekanth Ram
d. Sole Divine Company and Tata Mohan Company
7.New Horizon Company has capital of 1,00,000 shares of Rs.100 each. Mr. Mahendra
holds 2000 shares fully paid. The company proposed an annual dividend of 10%. Based
on this back ground, the accountant of Mr. Mahendra recognised Rs.20,000 as dividend
for the
a. Consider the dividend of Rs. 20,000 for 2004-05 and the balance Rs.10,000
received in June 2005, is consdered for 2005-06.
b. Dividend of Rs. 30,000 should be taken for the year 2005-06 but not for the year
2004-05 since dividend is recognised when there is a right to receive.
c. C.Whatever dividend recognised in 2004-05 may be cancelled and Rs. 30,000
paid in 2005-06 may be freshly considered
d. Since income is recognised when it is received, consider the dividend of Rs.
30,000 for the year 2004-05, even though it is actually received in 2005-06
8.The Directors of Chintan Ltd., decided on 31st March, 2006, to increase the sale of its
products by 10%, on sales taking place from June 30, 2006 on wards. The intimation
regarding the same was sent to all the customers by June15th, 2006. From which date
a. Income is recognised only when it is received. So even if the customers were to
accept the hike in 2007-08, then it will be recognised
b. The revenue as a result of increase in sale price can be recognised from June 15th
2006 itself because ultimate collection of money is also certain
c. The revenue as a result of increase in sale price is recognised in 2006-07 when
the sale price at increased rate begins to flow in
d. The revenue as a result of increase in sale price can be recognised, only if
customers accept the decision.
Unit3 - 4 Mark Quiz Questions
1.Prepaid expenses Nominal (Income)
Larsen & Toubro A/c Intangible real
Goodwill Personal
Royalty received Nominal (Expenses)
Printing & Stionery Nominal (Expenses)
a. b
b. a
c. d
d. c
1.Mention the sequential order in which the accounting trail
takes place
Mention the sequential order in which the accounting trail takes place
a. i) Ledger posting ii) Recording and classifying iii) Trial balance iv) Balancing v)
Trading and P&L A/c v)Balance Sheet
b. "A. i) Classifying and recording ii) Trial Balance iii) Ledger Posting iv)
Balance.Sheet v)Trading and P&L A/c vi) Balancing"
c. i) Classifying and recording ii) Ledger posting iii) Balancing iv) Trial balance v)
Trading and P7L A/c vi) Balance Sheet
d. i) Balance Sheet ii) Trial Balance iii) Trading and P&LA/c iv) Balancing v)
Ledger posting vi) Classifying and recording
2.On January 1 st, 2004 Rakesh Gen Stores had assets of Rs. 1,85,000 and liabilities of
Rs. 1,00,000. On Dec,31st 2004, the business had assets of Rs. 2,40,000 and liabilities of
Rs.1,20,000. During the year 2004, Rakesh had invested additional capital of Rs. 50,000
and withdrew Rs. 30,000. Compute net prfit or net loss using accounting equation
method.
a. Rs. 50,000
b. Rs. 45,000
c. Rs.. 65,000
d. Rs. 25,000
Unit4 - 4 Mark Quiz Questions
1.Complete the following matrix by entering either debit or credit in each cell, as shown
below
owners capital, To Increase - credit To Decreases - debit
1. Assets
2. Gains
3. Losses
4. Liabilities
a. c. Credit & debit, debit & credit, credit & debit, debit & credit
b. a. Debit & credit, credt& debit , debit & credit, credit & debit
c. d. Debit & credit, debit & credit, debit & credit, debit & credit
d. b. Debit & debit , credit & credit, credit & debit, credit & debit
2.Listed below a number of transactions. Identify which account to be debited and which
account to be credited, as shown for the first transaction