1. The prime function of Accounting is
a. Recording economic data
b. Classifying and recording business transactions
c. Classifying and summarizing business transactions
2. Any legal activity for earning profits is
a. Trust
b. Society
c. Business
d. None
3. All items purchased for the purpose of resale is called
a. Goods
b. Sale
c. Assets
d. Sample
4. Book keeping perfoms the
a. Primary Function
b. Secondary Function
c. Final Function
d. All of the above
5. Book keeping is concerned in
a. Recording of primary transctions
b. Classifying of business transaions
c. Interpretation of business transactions
d. None of above
6. Thre branches of accounting are
a. Two
b. Three
c. Four
d. Five
7. Accounting is the language of
a. Business
b. Proprieter
c. Company
d. None
8. The price of good sold is called
a. Revenue
b. Profit
c. Expense
d. Loss
9. Net profit is equal to
a. Total Revenue-Total Expenses
b. Total Revenue+Expenses
c. Assets-Liabilities
10. The system of recording both of the aspects of a transaction is called
a. Single entry system
b. Double entry system
c. Modern system
11. The rate of allowance allowed to debtor on paying his debt early is normally
a. 2%
b. 3%
c. 4%
d. 5%
12. All unsold goods lying in business is called
a. Stock
b. Revenue
c. Expenses
d. Assets
13. The terms Expenditure and Expense are
a. Different
b. Same
c. Opposite
14. A person who ows to business is called
a. Debtor
b. Creditor
c. Owner
d. Employee
15. Goods returned by customers are called
a. Sales Return
b. Purchase returen
c. Return outward
d. Return to supplier
16. The amount of goods or cash invested in business is called
a. Capital
b. Revenue
c. Assets
17. A person from whom credit purchases is made is
a. Creditor
b. Debtor
c. Proprietor
18. Stages of processing a transaction is
a. Recording
b. Summarizing
c. Classifying
d. All of above
19. The system of providing economic information about business is called
a. Bookkeeping
b. Accounting
c. Economics
d. All of above
20. According to which concept owner and business have separate entity
a. Matching concept
b. Dual aspect concept
c. Full disclosure
d. Business entity concept
21. A form of remuneration for services provided is called
a. Commission
b. Expenditure
c. Discount allowed
d. Discount received
22. The discount allowed by a wholeseller to reatailer at the list price of goods is called
a. Trade discount
b. Cash discount
c. Discount allowed
d. Discount received
23. A person whom the goods are sold or services provided on credit is called
a. Creditor
b. Debitor
c. Investor
d. Proprietor
24. Modern accounting is based on
a. Dual aspect concept
b. Cost concept
c. Matching concept
d. Going concern concept
25. According to which concept expenses are matched with revenue
a. Matching concept
b. Dual aspect concept
c. Cost concept
d. Full disclosure
26. When saleable goods are bought in business, it is called
a. Sale
b. Purchases
c. Assets
d. Goods
27. The business in which goods are purchased and sold is called
a. Trading concern
b. Manufacturing concern
c. Service concern
d. Going concern
28. To control the cost of production is the field of
a. Financial accounting
b. Cost accounting
c. Managerial accounting
d. Advanced accounting
29. According to which convention the accounting policies should remain same
a. Conservatism
b. Materiality
c. Consistency
d. Full disclosure
30. According to which concept it is assumed that a business will continue for an indefinite period of time
a. Going concern
b. Full disclosure
c. Consistency
d. Conservatism
31. According to which concept a record may be made only of those information which can be expressed in monetary terms
a. Monetary measurement
b. Materiality
c. Consistency
d. Full disclosure
32. According to which concept an asset is recorded at a price at which it is bough
a. Cost
b. Materiality
c. Consistency
d. Full disclosure
33. According to which concept anticipate no profits but to provide for all expenses
a. Conservatism
b. Consistency
c. Full disclure
d. Matching
34. According to which concept the users are informed of every aspect necessary for interpretation oa financial statements
a. Full disclosure
b. Matching
c. Consistency
d. Conservatism
35. According to which concept revenue are recognized when the good are sold ore services are rendered
a. Realization
b. Matching
c. Full disclosure
d. Consistency
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