Tag: book keeping and accountancy

Questions Related to book keeping and accountancy

Left side of balance sheet states the ______________.

book keeping and accountancy accounting equation and business transactions meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

  1. appreciated earnings

  2. liabilities

  3. assets

  4. stocks earnings

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Correct Option: B

The term cost refers to __________.

book keeping and accountancy basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

  1. the present value of future benefits

  2. the value of sacrifice made to acquire goods or services

  3. an asset that has given benefit but now expired

  4. the price of products sold or services rendered

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Correct Option: B

In regression analysis, if predicted cost value is 65 and observed cost value is 19 then disturbance term will be _________.

book keeping and accountancy basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

  1. 46

  2. 56

  3. 36

  4. 76

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Correct Option: A

According to the traditional approach cost of capital affected by?

book keeping and accountancy basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

  1. debt-equity mix

  2. debt-capital mix

  3. equity expenses mix

  4. debt-interest mix

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Correct Option: A

 If a company is registered on the basis of fictitious names, its incorporation is invalid.

book keeping and accountancy principles of double entry system objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

  1. True

  2. False

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Correct Option: B
Explanation:

The certificate of incorporation once issued, is a conclusive evidence of the existence of the company even if there were deficiencies in the formalities.

Even when company get registered with illegal object with any fictitious name, the birth of the company cannot be questioned only remedy is to wind off.

Number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate _________________.

book keeping and accountancy principles of double entry system objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

  1. annual irrelevant ordering costs

  2. annual relevant carrying costs

  3. annual relevant ordering costs

  4. annual irrelevant carrying costs

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Correct Option: C

Other factors held constant, but lesser project liquidity is because of ______________.

book keeping and accountancy principles of double entry system objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

  1. Shorter payback period

  2. Greater payback period

  3. Less project return

  4. Greater project return

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Correct Option: B
Explanation:

Other factors held constant, but lesser project liquidity is because of greater payback period. Payback period in capital budgeting refers to the period of time required to recoup the funds expended in an investment, or to reach the break-even point.

Personal Account relates to  ____________.

book keeping and accountancy principles of double entry system objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

  1. Persons

  2. All artificial and natural persons

  3. Representative Personal Accounts

  4. All of the above

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Correct Option: D

What is the validity of the registration certificate?

book keeping and accountancy principles of double entry system objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

  1. One year

  2. Valid till it is cancelled.

  3. No validity

  4. Five years

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Correct Option: B

Which of the following is a personal account?

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  1. Outstanding Expense

  2. Investment

  3. Share premium

  4. Salary

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Correct Option: A
Explanation:

Outstanding expenses are recorded in books of finance at the end of an accounting period to show the true numbers of a business. 

The outstanding expense is a personal account and is treated as a liability for the business. It is also shown on the liability side of a balance sheet.