Tag: bases of accounting

Questions Related to bases of accounting

The most liquid asset among the following is?

commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

  1. Gold

  2. Share

  3. Cash

  4. land

Show answer
Correct Option: C

Overvaluation of opening stock in financial accounting results _____________.

commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

  1. decreases costing profit

  2. decreases financial accounts profit

  3. increases costing profit

  4. increases financial accounts profit

Show answer
Correct Option: B

The current ratio of a company is 2: 1. Which of the following suggestions would improve the ratio?

commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

  1. To pay a current liability

  2. To borrow money on an interest-bearing promissory note

  3. To purchase stocks for cash

  4. To give an interest-bearing promissory note to a creditor to whom money was owed on current account

Show answer
Correct Option: B

Globalisation of financial services is being promoted by _____________.

commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

  1. World Trade Organisation

  2. International Finance Corporation

  3. International Bank for Reconstruction and Development

  4. International Monetary Fund

Show answer
Correct Option: D

One of the items is not related with e-banking ___________.

commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

  1. Demand draft

  2. SPMS

  3. ECS

  4. ATM

Show answer
Correct Option: A

The correct sequence of following will be :
1. Policies           2. Objective
3. Programmes   4. Procedures.

commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

  1. 1, 2, 3, 4

  2. 1, 2, 4, 3

  3. 2, 1, 4, 3

  4. 2, 1, 3, 4

Show answer
Correct Option: D

In the comparative financial statement, comparison of financial data is done in the form of ___________ .

commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

  1. Absolute data of each year in terms of Rupees of the same firm

  2. Increase or decrease in data over the years of the same firm

  3. Increase or decrease in data of different firms

  4. Any of the above

Show answer
Correct Option: D

Cash account normally has _________________.

commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

  1. Debit balance or credit balance

  2. Credit balance

  3. Debit balance

  4. None of these

Show answer
Correct Option: C

Which of the following statements is 'True'?

commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

  1. Building Account is a nominal account

  2. Outstanding rent account is a non-personal account

  3. Every debit has a corresponding credit

  4. Income is debited

Show answer
Correct Option: C

If the Money Discount Rate is 19% and Inflation Rate is 12%, then the Real Discount Rate is __________.

commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

  1. 7%

  2. 5%

  3. 5.70%

  4. 6.25%

Show answer
Correct Option: D