Accounting For Managers 61. Management accounting is applicable to
Service entities Manufacturing entities Non profit entities All of these View answer Correct answer: (D)
62. Insurance prepaid is shown as
Current assets Current liabilities Fixed asset Fixed liability View answer Correct answer: (A)
63. Financial accounting is concerned with
Recording of business expenses and revenue Recording of costs of products and services Recording of day to day business transactions None of the above View answer Correct answer: (C)
64. Goods given as samples should be credited to:
Advertisement account Sales account Purchase account None of the above View answer Correct answer: (C)
65. Investment of X company profit in shares of other company PQR Pvt. ltd are recorded in
Asset side of Balance Sheet Liability side of Balance Sheet Profit & Loss a/c Not recorded in Balance Sheet View answer Correct answer: (A)
66. Sales made to Mahesh for cash should be debited to
Cash account Mahesh Account Sales account Purchase account View answer Correct answer: (A)
67. Income tax paid by a sole proprietor on his business income should be:
Debited to trading account Debited to profit and loss account Deducted from capital account in the balance sheet None of the above View answer Correct answer: (C)
68. What comes in is to be debited, what goes out is to be credited.
Rules of Personal Rules of Real Rules of Nominal All of these View answer Correct answer: (B)
69. Which of the following is not an example of real a/c:
Machinery Building Cash Creditor View answer Correct answer: (D)
70. Payment received from Debtor
Decreases the Total Assets Increases the Total Assets Results in no change in the Total Assets Increases the Total Liabilities View answer Correct answer: (C)