Consistency Concept

Q.

Is accounting an art or a science?

Q.

Define a computerised accounting system. Distinguish between a manual and computerised accounting system.

Q. concept states that accounting procedures and practices should remain same from year to year.

1. Timeliness
2. Conservatism
3. Consistency
4. Materiality

Q. Which of the following is a non-accounting voucher?

[0.88 marks]

1. Receipt voucher
2. Memo voucher
3. Payment voucher
4. Journal voucher

Q.

'Accounting information should be comparable. Do you agree with this statement? Give two reasons.

Q. Consistency with reference to application of accounting procedures means:

1. All companies in the same industry should use identical accounting procedures
2. Income & assets have not been overstated
3. Accounting methods & procedures shall be followed on a uniform basis year after year
4. Any accounting method can be followed as per convenience

Q.

What are the possible reasons for keeping incomplete records ?

Q.

Write any three Limitations of Accounting.

Q.

What are the main features of MS Excel?

Q.

Discuss the concept of accounting reports? Explain the three steps involved in creating such reports.

Q.

Name the accounting concept or convention associated with the following

(i) Assets are recorded at cost, irrespective of the market place.

(ii) Life of a business should be divided into smaller periods.

(iii) Accounting transactions should be free from bias of accountants and others.

Q. Accounting procedures and accounting practices should remain same from year to year under which of the following accounting principles:

1. Materiality Principle
2. Timeliness Principle
3. Conservatism Principle
4. Consistency Principle

Q. The main objective of Accounting Standards is to ___________.

1. Prepare the accounting reports which is easily understood by common man
2. Comply with the legal formalities
3. Harmonise the diversified accounting practices
4. Comply with the requirements of the International Accounting Standards (IAS)

Q.

Give the advantages of following consistency concept.

or

Why should a business follow a principle of consistency?

Q. Answer the question.
Why is there a need of Accounting Standards?

Q.

Discuss the concept of accounting reports? Explain the three steps involved in creating such reports.

Q. State the basic accounting concepts from following _________________.

1. Matching Concept
2. Revenue recognition Concept
3. All of the above
4. Consistency Concept

Q.

The accountant of a small firm feels that incomplete records system should not be followed. In spite of that it is easy to maintain accounts on single entry basis. The accountant suggest that double entry accounting system should be followed. Is the suggestion correct? Give reasons.

Q. Explain the factors which necessitated Systematic Accounting.

Q. What should happen if the balance on a Suspense Account is of a material amount?

1. Should be written off to the balance sheet.
2. Write it off to Profit and Loss Account.
3. Carry forward the balance to the next period.
4. Find the error(s) before publishing the final accounts.

Q. What is done as per the basic concepts of accounts?

1. Book keeping
2. Balancing
3. Casting
4. None of the above

Q. There are 2 branches of a company Batra Shoes Ltd. One is in Delhi & the other is in Mumbai. The accountant of the branch in Delhi uses LIFO method for valuation of inventory of shoes while the accountant of the branch in Mumbai uses FIFO method for valuation of inventory. When the accounts of the 2 branches are consolidated, this fact is ignored. Is it correct? If Not, which accounting convention is violated by this.

1. No, Consistency Convention
2. Yes, it is correct
3. No, Going Concern Convention
4. No, Money Measurement Concept

Q. The Institute of Chartered Accountants of India (ICAI) constituted the _________, with a view to harmonizing the diverse accounting policies and practices in use in India.

1. Standards Board of Accounting (SBA)
2. Accounting Standards Board (ASB)
3. Accounting Standards Committee (ASC)
4. Accounting Committee (AC)

Q. Customs and traditions which guide the accounts to prepare accounting statements are called ______________.

1. conventions
2. principles
3. concepts
4. procedure

Q. Double accounting system owes its origin to ________.

1. Luca Pacioli
2. Pickless
3. Karl Marx
4. Adam Smith

Q. Auditing exercise includes:
(i) Checking of accounts
(ii) Verification of accounts
(iii) Examination of accounts

1. I and III
2. I and II
3. I, II and III
4. II and II.1

Q. _______ is an accounting concept.

1. Conservatism
2. Money measurement
3. Consistency
4. All of the above

Q. General ideas which convey certain meanings are known as ____________ .

1. Concepts
2. Standards
3. Ethics
4. All of the above

Q. General notion or abstract ideas on which accounting is based is known as __________ .

1. Accounting Concepts
2. Accounting Ethics
3. Accounting Standards
4. None of the above

Q. An accountant records a transaction if ________ .

1. it is so required by the Management
2. it is substantiated by a documentary evidence
3. it has tax implication
4. it is mandatory as per Statutory requirement