Accounting For Managers
31. The convention of disclosure implies that all material information should be
- Disclosed in the account
- Disclosed in the accounts which is required to owner
- Not disclosed
- None of these
Correct answer: (A)
Disclosed in the account
32. Outstanding salary is shown as:
- An asset in the balance sheet
- A liability
- By adjusting it in the P & L a/c
- Both a and c above
- Both b and c above
Correct answer: (E)
Both b and c above
33. Proprietor (owner) is treated as creditor of business due to:
- Periodicity concept
- Materiality Principle
- Entity Concept
- Consistency concept
Correct answer: (C)
Entity Concept
34. Which of the following is correct
- Profit does not alter capital
- Capital can only come from profit
- Profit reduces capital
- Profit increases capital
Correct answer: (D)
Profit increases capital
35. Interest , rent, electricity bill are types of account
- Personal a/c
- Impersonal a/c
- Real a/c
- Nominal a/c
Correct answer: (D)
Nominal a/c
36. Cost of asset should always be equal to the cost of the liabilities. This concept is
- Double Entry Bookkeeping
- Matching Concept
- Consistency
- Money measurement Concept
Correct answer: (B)
Matching Concept
37. P& l a/c is prepared for a period of one year by following:
- Consistency concept
- Conservatism concept
- Accounting period concept
- Cost Concept
Correct answer: (C)
Accounting period concept
38. Prepaid expense is treated as
- Current asset
- Current liability
- Short term liability
- None of these
Correct answer: (A)
Current asset
39. Which of the following is a liability?
- Loan from Mr.Y
- loan to Mr.y
- Both (a) (b)
- None of these
Correct answer: (A)
Loan from Mr.Y
40. Advantages of cost accounting accrue:
- Only to workers
- Only to government
- Only to consumers
- To management, workers, consumers and government
Correct answer: (D)
To management, workers, consumers and government
Wednesday, December 29, 2021