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?
Fiscal year Calendar year Accounting period Accrual period View answer Correct answer: (C)
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
Rs 70,000 Rs 80,000 Rs 90,000 Rs 1,00,000 View answer Correct answer: (B)
103. The system of recording transaction based on dual aspect concept is called
Double account system Double entry system Single entry system None of these View answer Correct answer: (B)
104. The convention of conservatism is applicable
In providing for discount on creditors In making provision for bad doubtful debts Providing depreciation None of these View answer Correct answer: (B)
105. Rules of action or conduct adopted by the accountants universally while recording accounting transaction
Accounting convention Accounting concepts Accounting principles None of these View answer Correct answer: (C)
106. Which of the following items would not fall under the definition of an asset?
Land Machine Cash Milk View answer Correct answer: (D)
107. Basic assumptions or conditions upon which the science of accounting is based.
Accounting convention Accounting concepts Accounting principles None of these. View answer Correct answer: (B)
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?
Fiscal year Calendar year Accounting period Accrual period View answer Correct answer: (C)
109. The system of recording based on dual aspect concept is called:
Double account system Double entry system Single entry system All the above View answer Correct answer: (B)
110. Preliminary expenses are recorded in ______________
Equity and liabilities-Liability side of B/S Current liabilities- Liability side of B/S Fixed assets- Asset side of B/S Asset side of B/S View answer Correct answer: (D)