Accounting For Managers MCQS With Answers 101 to 110

 

Accounting For Managers

101. Which of the following is time span into which the total life of a business is divided for the purpose of preparing financial statements?

1. Fiscal year
2. Calendar year
3. Accounting period
4. Accrual period

Correct answer: (C)
Accounting period

102. If the total assets of the company amount to Rs 1,50,000 and owner’s equity is Rs 70,000,the amount of liabilities will be

1. Rs 70,000
2. Rs 80,000
3. Rs 90,000
4. Rs 1,00,000

Correct answer: (B)
Rs 80,000

103. The system of recording transaction based on dual aspect concept is called

1. Double account system
2. Double entry system
3. Single entry system
4. None of these

Correct answer: (B)
Double entry system

104. The convention of conservatism is applicable

1. In providing for discount on creditors
2. In making provision for bad doubtful debts
3. Providing depreciation
4. None of these

Correct answer: (B)
In making provision for bad doubtful debts

105. Rules of action or conduct adopted by the accountants universally while recording accounting transaction

1. Accounting convention
2. Accounting concepts
3. Accounting principles
4. None of these

Correct answer: (C)
Accounting principles

106. Which of the following items would not fall under the definition of an asset?

1. Land
2. Machine
3. Cash
4. Milk

Correct answer: (D)
Owner Equity

107. Basic assumptions or conditions upon which the science of accounting is based.

1. Accounting convention
2. Accounting concepts
3. Accounting principles
4. None of these.

Correct answer: (B)
Accounting concepts

108. Which of the following is time span into which the total life of a business is divided for the purpose of preparing financial statements?

1. Fiscal year
2. Calendar year
3. Accounting period
4. Accrual period

Correct answer: (C)
Accounting period

109. The system of recording based on dual aspect concept is called:

1. Double account system
2. Double entry system
3. Single entry system
4. All the above

Correct answer: (B)
Double entry system

110. Preliminary expenses are recorded in ______________

1. Equity and liabilities-Liability side of B/S
2. Current liabilities- Liability side of B/S
3. Fixed assets- Asset side of B/S
4. Asset side of B/S

Correct answer: (D)
Asset side of B/S

Accounting For Managers

Wednesday, December 29, 2021

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