Recap of Overview of Financial Statements

Q.

Is furniture a current asset?

Q.

Balance sheet is prepared on a __________.

1. Particular period

2. Particular date

3. Either A or B

4. None of these

Q.

Identify the correct sequence of accounting process:

1. Communicating --- Recording--Identifying

2. Recording -- Communicating -- Identifying

3. Identifying -- communicating -- recording

4. Identifying -- recording -- communicating

Q.

Payment received from debtor will _____.

1. Increase the total assets

2. Decrease the total assets

3. Increase the total liabilities

4. Result in no change in the total assets

Q.

What operator tests column for the absence of data?

Q.

A Statement of Affairs is similar to the :

(a) Balance sheet
(b) Trial balance
(c) Trading Account
(d) Profit & Loss Account

Q.

___________ Is Called a Book of Original Entry

Q. The gross loss and ___expenses are shown on the debit side of profit and loss account.

1. Direct
2. Indirect
3. Operating
4. None of these

Q.

Why is statement of affairs prepared under single entry system not referred to as balance sheet?

Q.

Which of the following are stock variables?

1. Insurance premium

2. Rent

3. Cash

4. Both A & B

Q.

What are drawings on a balance sheet?

Q.

Is software a fixed asset or an expense?

Q.

Trading & Profit & loss account and balance sheet is prepared from:

1. Ledger balances, cash and bank balances

2. Cash book and bank book

3. Ledger balance

4. Trial Balance

Q.

Which of the following is a permanent account?

1. Capital

2. Liability

3. Asset

4. All the above

Q.

_________ is prepared for a period.

1. Profit or loss account

2. Balance sheet

3. Both A & B

4. None of these

Q.

How are computers useful in processing the accounting data?

Q.

What will be the effect on trial balance if purchases return of Rs. 10, 000 has been wrongly posted to the debit of sales return account but correctly entered in the customers account ?

Q.

What do you understand by accounting data? Discuss the stages through which it is finally transformed for being presented as information in financial statements.

Q.

What Items Are Recorded in Income and Expenditure Account?

Q.

What is the capital account in the balance of payments?

Q.

Loan taken from bank comes under the category ______

1. Asset

2. Liability

3. Capital

4. None of these

Q.

Which of the following is flow variable?

1. Asset

2. Liability

3. Expense

4. Capital

Q. Answer in one Sentence only.

What is the balance of outstanding salary A/c?

Q.

What all categories of CLEAR are recorded in balance sheet?

1. Capital

2. Liabilities

3. Asset

4. All the above

Q.

Which of the following comes under category assets?

1. Cash

2. Debtors

3. Both A & B

4. None of these

Q.

Are income and expense the same as profit and loss?

Q.

Permanent accounts are ________ variable, while temporary accounts are _______ variable.

1. Flow, Flow

2. Stock, Flow

3. Flow, Stock

4. Stock, Stock

Q. A ____________ is a liability which can be measured only by using a substantial degree of estimation.

1. Provision
2. Current liability
3. Non-current liability
4. Contingent liability

Q.

Which amongst the following is the correct sequence of accounting process:

1. Measuring--Communicating--Recording--Identifying

2. Recording-- Measuring-- Communicating-- Identifying

3. Identifying--communicating--recording-- Measuring

4. Identifying-- Measuring--Recording--Communicating

Q. State whether the following statements are true or false :

Book-keeping is an art as well as science.