Process

Financial Accounting 1) Purpose of Financial Accounting is to provide financial information to a) Shareholders b) Board Of Directors c) Tax Authorities d) All Of these. 2) According to the Money Measurement concept,the following will be recorded in the books of accounts a) Quality Control in Business b) Commission Payable to salesmen c) Extra profits made due to introduction of Budgetory Control System d) All of these. 3) A provision is a a) General Reserve b) pecific Reserve c) Capital Reserve d) None of these. 4) Market value of Investments is shown as a Footnote to Balancesheet as per a) Consistency concept b) Disclosure concept c) Materiality concept d) Going Concern 5) Which of the followings is Operating Expense? a) Bad debts b) Salary of General Manager c )Expired Insurance d) All of the above. 6) A business has assets Rs.55826/-&Owner’s Equity Rs.14150/-What is the amt.of Liabilities? a) Rs.41676/b) Rs.57522/c ) Rs.44312/d) None of these.

7)

Liabilities of business are Rs.11220/-&Owner’s Equity Rs.15000/-What will be the assets of the business? a) Rs.11220 b )Rs.3780 c) Rs.15000 d) Rs.26220

8)

Contengent Liability is shown due to a) Convention of full Disclosure b) Convention of Convertism c )Convention of Materiality d) Dual aspect Concept.

9)

Cartage paid on purchase of a new machine is debited to a) Cartage a/c b) P& L a/c c) Machine a/c d) Trading a/c

10)

Rs.15000/-Custom duty paid on import of a machinery for modernization of a factory production during the current year & Rs.5000/- paid as import duty on purchase of raw material.What is the amt. Of capital expenditure? a) Rs.15000/b) Rs.5000/c) NIL d) Rs.20000/-

11)

Amt.received from subletting a part of the office building is a revenue receipt,What is the receipt of Govt.Grant for construction? a) Misc.Receipt b) Trade Receipt c) Cash Receipt d) Capital Receipt

12)

Huge Sales promotion expenditure is a Deffered Revenue Expenditure,What can be the realization from