MCQs on Bookkeeping And Accountimg, MCQ on Bookkeeping and Accounting,

   Hello viewers, Today we are going to start MCQs on Book Keeping and Accounting , I hope it will be beneficial for your upcoming exam. (Part-5, From Question No. 81 to 100 ) 

81. Statement of changes in financial position shows:

a) Sources and uses of funds   

b) Assets and Liabilities

c) Income and Expenses

d) Losses and Gains

 

82. Which of the following statements is false?

a) Accounting is the language of business.

b) Accounting is as old as money itself.

c) Accounting is a service function.

d) Accounting involves only the recording of business transactions.

 

83. Which of the following statements are false?

a) Accounting may be described as an information system which has its inputs, processing methods and outputs.

b) Accounting records only those transactions and events which are of financial nature.

c) Accounting is both art and science.

d) Accounting means recording transactions and events, not their interpretation.

 

84. Which of the following is not a characteristic of accounting information?

a) Relevanceb) Reliability

c) Comparability

d) Matching

 

85. Which of the following is not a branch of

accounting?

a) Financial accounting

b) Cost accounting

c) Management Accounting

d) Responsibility accounting

 

86. The last step in accounting process is:

A. Identifying the business transactions and events

b) Recording of business transactions

c) Classifying the business transactions

d) Communication of financial statements

 

87. The person who makes the investment and bears all the risks connected with the business is called

A. Proprietor 

B. Debtor

C. Debenture holder

D. Creditor

 

88. The time between the acquisition of an asset for processing and its conversion into cash and cash equivalent is called

A. Operating cycle 

B. Production cycle

C. Time gap

D. None of these

 

89. Following information is related to Trade discount except

A. Offered at an agreed percentage

B. Not recorded in the books

C. Encourage the debtors to pay the dues promptly

D. Persuade the buyer to buy more goods

 

90. Which of the following is a limitation of

accounting?

A. Facilitates loan

B. Replacing Memory

C. Window Dressing

D. Evidence in court

 

91. What is the main objective of financial accounting?

[A] profit and loss account only

[B] balance sheet only

[C] both P & L account and balance sheet

 [D] trial balance only

 

92. While putting the value or price of an entity in financial records the lowest price is recorded not the current price or current market value. This is known as

[A] Business Entity Concept

[B] Conservatism

[C] Expenditure Concept

[D] Money Measurment Concept

 

93. Principal objective of Accounting is -

i) Determination of financial result

ii) Control expenditure

iii) Ascertainment of financial position

Which one is correct?

[a] I        

[b] ii & iii

[c] i& ii

[d] i & iii t

 

94. Whose objective is to record transactions correctly?

[a] Business’

[b] Debtors and creditors

[c] Recording Transactions

[d] Accounting’s

 

95. How the desired result can be achieved of Business organization?

[a] By purchasing assets

[b] By taking correct decision

[c] By controlling Expenses 

[d] By purchasing Goods

 

96. Science & Technology –

[a] Reduce Accounting

[b] Makes Accounting expensive

[c] Restrict the movement of Accounting

[d] Improve Accounting

 

97. In which name does Accounting appraise?

[a] Accounting systems

[b] Information systems

[c] Auditing systems

[d] Statement systems

 

98.A business can make contribution to the society & environment by

i) Using foreign raw materials in production

ii) Using local raw materials in production

iii) Giving scholarship among poor & meritorious students

Which one is correct?

[a] ii

[b] ii &iii. 

[c] i & ii

[d] i& iii

 

99. Properly recorded accounts of Dr. Hasan’s clinic will help to –

i) Increase sales

ii) Increase valuesi

ii) Determine tax

Which one is correct of the following?

[a] I          

[b] ii

[c] ii & iii

[d] i& ii

 

100. One of the detailed rules used to record business transaction is

(A) Objectivity 

(B)

(C) Double entry book keeping 

(D)Going Concern