Tag: commercial applications

Questions Related to commercial applications

Amit is recording sales transactions in the accounting system so that they can be summarized in a logical manner for the purpose of providing financial information for decision-making. Amit is doing ___________.

commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

  1. management consulting

  2. review

  3. accounting

  4. auditing

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Correct Option: C
Explanation:

To review is to check the work already done/performed.

Management consulting refers to the  providing suggestions/ recommendations to the management to perform the business more effectively.
Auditing is examining.
Amit is doing none of the three but a simple accounting exercise. 

Accounting is BEST described as__________.

commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

  1. The use of financial data

  2. The collection of financial data

  3. The collection and use of financial data

  4. The collection and use of financial and non- financial data

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Correct Option: D

A chronological record of transaction may be found in _______.

commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

  1. Balance Sheet

  2. Trial Balance

  3. Ledger

  4. Journal

Show answer
Correct Option: D
Explanation:

In accounting, a first recording of financial transactions as they occur in time, and  in accounting and bookkeeping called a journal is a record of financial transactions in order by date. A journal is often defined as the book of original entry. Manual systems usually had a variety of journals such as a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and a general journal.so that they can then be used for future reconciling and transfer to other official accounting records such as the general ledger is a journal.

Casual vacancy occurs only when ________.

commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

  1. Direction dies

  2. Declared incompetent

  3. Resigns

  4. All of the above

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Correct Option: D

Business is treated as a separate entity accounts for ______________.

commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

  1. Limited Liability Partnership

  2. Partnership

  3. Company

  4. All of the above

Show answer
Correct Option: D
Explanation:

Accounting is based on certain basic concepts. One of the concept is "Separate Entity Concept". This defines that, for all accounting purposes, the business is considered to be a separate entity distinct from its owners. The transactions of business are recorded in the books of the business and the position of owner in his business will be like other creditors. 

This concept applies to all the forms of businesses.

A vacant position that arises because of the resignation of the director can only be filed in ____________.

commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

  1. Annual general meeting

  2. Board meeting

  3. Board meeting but expired at the general meeting

  4. Both A and B

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Correct Option: C

Insurance claim for loss-in-transit received by consignor is _________________.

commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

  1. Credited to Bank Account

  2. Debited to Insurance Co.

  3. Credited to Abnormal Loss Account

  4. Debited to Consignment Account

Show answer
Correct Option: C
Explanation:

A loss by theft or losses by fire, flood, earthquake, war, accidents, in transit, etc. are abnormal losses. These losses are avoidable and not inherent in nature. These losses reduce the value of closing stock as well as profit. 

After finding out the value, credit the Consignment A/c and debit the Abnormal Loss A/c.

  1. The cost of stock as per physical verification as on 24th March amounted to Rs.2,00,000. Purchases as per Purchases Book after stock taking till 31st March amounted to Rs.2,00,000 and included the following:
    (i) Rs.10,000 for goods received till 23rd March.
    (ii) Rs.20,000 for goods received on 1st April. Sales as per Sales Book after stock taking, till 31st March amounted to Rs.2,00,000 and included the following:
    (I) Rs.10,000 for goods delivered till 23rd March. (II) Rs.20,000 for goods delivered on 1st April. Goods are sold by the trader at a profit of 25% on Cost. The value of stock as per books Is ____________.
commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

  1. Rs.2,40,000

  2. Rs.2,38,000

  3. Rs.2,36,000

  4. Rs.2,34,000

Show answer
Correct Option: B

The debit side of manufacturing Account __________________.

commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

  1. is always equal to its credit side

  2. is always more than its credit side

  3. is always less than its credit side

  4. None of these

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Correct Option: B

Under sales on return or approval basis, the ownership of goods is passed only ____________________.

commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

  1. when the retailer gives his approval

  2. if the goods are not returned within specified period.

  3. Both (a) and (b)

  4. None of the above

Show answer
Correct Option: C