Tag: elements of accounts

Questions Related to elements of accounts

Erroneous data has been detected by computer program controls. It has been excluded from processing and printed separately "Error Report". Who should most probably  review and follow up on this report?

elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

  1. System analyst

  2. Data control group

  3. Programmer

  4. Computer operator

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Correct Option: A

American companies prepare their financial statement in Dollars whereas Japanese companies produce financial statement in Yen. This is an example of:

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. Stable monetary unit concept

  2. Unit of measurement concept

  3. Money value concept

  4. Current swap concept

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Correct Option: B
Explanation:

The unit of measure concept is a standard convention used in accounting, under which all transactions must be consistently recorded using the same currency. 

Without a common unit of measure, it would be impossible to produce financial statements.

Which one of the following is not an objective of the introduction of Primary Dealer System?

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. To encourage a voluntary holding of govt. securities amongst a wider investor base

  2. To make Primary Dealer System an effective conduct of open market operations

  3. To strengthen the private equity infrastructure

  4. To strengthen the govt. securities infrastructure

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Correct Option: C

Every registered taxable person shall be entitled to take credit of input tax in his return and such input tax credit shall be credited to _______________.

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. Personal Ledger Account

  2. Refund account

  3. Electronic Cash Ledger

  4. Electronic Credit Ledger

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Correct Option: D

Financial corporations which serve individual savers and commercial mortgage borrowers are classified as ___________________.

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. savings associations

  2. loans associations

  3. preferred and common associations

  4. savings and loans associations

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Correct Option: D

The objective of financial management is to ___________.

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. generate the maximum net profit

  2. generate the maximum retained earnings

  3. generate the maximum wealth for its shareholders

  4. generate maximum funds for the firm at the least cost.

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Correct Option: C

Which of the following is the most valid reason for India to export gold to Bank of England in 1991?

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. To set up India-UK bilateral relationship

  2. India returned UK gold

  3. To meet foreign exchange crisis

  4. For Investment in Bristish companies

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Correct Option: C

If overtime is resorted to at the desire of the customer, then the overtime premium ____________________.

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. should be charged to costing profit and loss account;

  2. should not be charged at all

  3. should be charged to the job directly

  4. should be charged to the highest profit making department

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Correct Option: C

Which of the following capital is required for the registration of the company?

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. Issued capital

  2. Subscribed capital

  3. Authorized capital

  4. Reserve capital

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Correct Option: C

Type of bonds that are issued by foreign governments or foreign corporations are classified as ______________.

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. zero risk bonds

  2. zero bonds

  3. foreign bonds

  4. government bonds

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Correct Option: C