Accounting For Managers
11. Amount brought in by proprietor should be credited to
- cash account
- capital account
- drawings account
- creditors account
Correct answer: (B)
capital account
12. Which of the following is a real (permanent) account?
- Goodwill
- Sales
- Accounts Receivable
- Both Goodwill and Accounts Receivable
Correct answer: (D)
Both Goodwill and Accounts Receivable
13. Which of the following errors will be disclosed in the preparation of a trial balance?
- Recording transactions in the wrong account.
- Duplication of a transaction in the accounting records.
- Posting only the debit portion of a particular journal entry.
- Recording the wrong amount for a transaction to both the account debited and the account credited.
Correct answer: (C)
Posting only the debit portion of a particular journal entry.
14. Management Accounting provides invaluable services to management in performing
- All management function
- Interpret financial data
- Controlling function
- None of these
Correct answer: (A)
All management function
15. If closing stock appears in the trial balance, it should be
- Credited to the trading account
- Credited to the profit and loss account
- Deducted from the purchases in the trading account
- Shown on the liability side of the Balance sheet
Correct answer: (A)
Credited to the trading account
16. Financial information should be neutral and bias free" is the dictation of which one of the following?
- Completeness concept
- Faithful representation Concept
- Objectivity Concept
- Duality Concept
Correct answer: (C)
Objectivity Concept
17. Which of the following statements is not an objective of financial reporting?
- Provide information that is useful in investment and credit decisions.
- Provide information regarding policy of organisation
- Provide information that is useful in assessing cash flow prospective
- None of theses
Correct answer: (B)
Provide information regarding policy of organisation
18. A company's telephone bill consisting of a Rs.200 monthly base amount, plus long distance charges, would be classified as a:
- Variable cost
- Committed fixed cost
- Direct cost
- Semi variable cost
Correct answer: (D)
Semi variable cost
19. A book containing a chronological record of business transaction & original record
- Journal
- Ledger
- Trial balance
- None of these
Correct answer: (A)
Journal
20. Which of these items would be accounted for as an expense?
- Repayment of bank Loan
- Dividend to stock holders
- The purchase of land
- Payment of current period rent
Correct answer: (D)
Payment of current period rent