Accounting For Managers 1. Creating Provision against fluctuation in the price of investment is an example of which accounting convention
Convention of conservatism Convention of full disclosure Convention of materiality Convention of consistency View answer Correct answer: (A)
2. Return of goods by a customer should be debited to
Customers account Sales return account Goods account Purchase account View answer Correct answer: (B)
3. Cash discount allowed to a debtor should be credited to
Discount account Customer’s account Sales account Cash account View answer Correct answer: (B)
4. The concept of separate entity is applicable to which of following types of businesses?
Sole proprietorship Corporation Partnership All of them View answer Correct answer: (D)
5. Accounting principles are generally based upon:
Practicability Subjectivity Convenience in recording None of the above View answer Correct answer: (A)
6. Debit the receiver credit the giver rule for
Real a/c Personal a/c Nominal a/c None of these View answer Correct answer: (B)
7. Managerial accounting information is generally prepared for
Shareholders Creditors Managers Regulatory agencies View answer Correct answer: (C)
8. True & fair profit and loss a/c of a company know by
Preparing trial balance Preparing respective ledger of account Preparing trading a/c Preparing trading & profit & loss a/c View answer Correct answer: (D)
9. Which one of the following items would fall under the definition of a liability
Cash Debtor Owner’s equity None of these View answer Correct answer: (C)
10. The basic sequence in the accounting process can best be described as:
Transaction, journal entry, source document, ledger account, trial balance. Source document, transaction, ledger account, journal entry, trial balance. Transaction, source document, journal entry, trial balance, ledger account. Transaction, source document, journal entry, ledger account, trial balance. View answer Correct answer: (D)