Dual Aspect Concept

Q. concept states that every transaction impacts two accounts that accounting equation always holds true.

1. Going Concern
2. Money Measurement
3. Business Entity
4. Dual Aspect

Q.

Which of the following equation is related with Dual Aspect Concept?

1. Total Assets = Total Liabilities

2. All of the above

3. Total Assets = Capital + Outsider`s Liabilities

4. Capital= Total Assets - Outsider`s Liabilities

Q. According to concept, everything a firm owns, it also owes out to someone.

1. going concern
2. dual aspect
3. business entity
4. money measurement

Q.

Explain the dual aspect principle with the help of an example.

Q.

Ram starts a business and his first act is to bring in a cash of Rs 1, 00, 000 of his own money. The dual aspect of this transaction is that:

1. Assets (Cash = 1, 00, 000) = Equities (Owner’s = 1, 00, 000)

2. Assets (Cash = 50, 000) = Liabilities (50, 000)

3. None of the above

4. Assets (Cash = 50, 000) = Equities (Owner’s = 50, 000)

Q.

When a machinery is purchased for cash, the cash balance is reduced and to that extent, the amount of machinery as an asset is recorded. This is done to follow which of the following accounting principles:

1. Dual Aspect Principle

2. Timeliness Principle

3. Consistency Principle

4. Materiality Principle

Q.

Name the concept explained in the below statement.

Everything a firm owns, it also owes out to someone.

1. Dual Aspect

2. Business Entity

3. Consistency

4. Money Measurement

Q.

According to which concept, Accounting equation will always hold true?

1. Money measurement

2. Business Entity

3. Dual Aspect

4. None of these

Q. The accounting concept that refers to the tendency of accountants to resolve uncertainty and doubt in favor of understating assets and revenues and overstating liabilities and expenses is known as________.

1. conservation
2. matching
3. historical cost
4. going concern

Q.

Under which of the following accounting principles, every transaction impacts two accounts that accounting equation holds true always.

1. Dual Aspect Principle

2. Revenue Accrual Principle

3. Double Entry Book-keeping System

4. Cash Accrual Principle

Q.

Statement 1: Aman purchases a piece of land for Rs. 1 lakh in 1985. This impacted an increase in his land account and a decrease in cash account. What is the concept behind this impact?

Statement 2: The price of the same piece of land in 2017 is Rs. 1 crore. Aman is excited about the price and plans to record it in his books of account. His accountant, Ravi, calms him down and lets him know that the price of the land is still Rs. 1 lakh and cannot be recorded otherwise. What made Ravi stop Aman from recording it as Rs. 1 crore?

1. Statement 1: Dual Aspect
   Statement 2: Cost

2. Statement 1: Cost
   Statement 2: Accounting period

3. Statement 1: Money measurement
   Statement 2: Cost

4. Statement 1: Matching
   Statement 2: Accounting period

Q. The system of recording based on dual aspect concept is called _______.

1. Double account system
2. Double entry system
3. Single entry system
4. All the above

Q. ______is a process by which the auditor satisfies himself about the actual existence, possession and ownership of the assets and process of _________includes valuation as well.

1. Verification, verification
2. Vouching, vouching
3. Verification, vouching
4. None of the above.

Q. Market value of investment is shown below the balance sheet as a footnote according to _____________.

1. Conservatism concept
2. Separate entity concepot
3. Consistency concept
4. Disclosure concept

Q. The convention of conservatism is likely to lead the balance sheet in __________.

1. overstatement of capital
2. overstatement of assets
3. understatement of assets
4. understatement of liabilities

Q. Which of the following cases deals with the negligence of auditor in due performance of his duties?

1. Irish Woolen Co.Ltd.V. Tyson and others(1900)
2. Inre Kingston Cotton Mill Co. Ltd.(1896)
3. Wimer V. McNamara & Company Ltd.(1895)
4. Leeds Estate Building & Investment company V. Shepherd(1887)

Q. Goods brought in by the proprietor as his capital contribution are recorded in _______.

1. Purchases Book.
2. Cash Book.
3. Journal Proper.
4. None of the above.

Q. The system of recording transactions based on dual concepts is called __________.

1. double account system
2. double entry system
3. single entry system
4. cash system

Q. ________ is interested in information about past profits and financial position.

1. Owner
2. Government
3. Bank
4. None of the above

Q. The auditor is generally expected to carry out the following in a particular serial:
1. Verification of Assets and Liabilities
2. Vouching of transactions
3. Checking of valuation of Assets and Liabilities.
Select the correct answer from the codes given below.

1. 1, 3 and 2
2. 3, 2 and 1
3. 2, 1 and 3
4. 3, 1 and 2

Q. The statement of affairs must be verified by a/an ___________.

1. Affidavit
2. Secretary
3. Accountant
4. Shareholders

Q. The shares are valued on the basis of real internal value of assets of the company, the method is termed as _______________.

1. Fair value method
2. Yield method
3. Real value method
4. All the above