Accountancy mcq previous year question paper

 Accounting: An introduction

Unit:- meaning and scope of accounting

Objective Type Questions: The following multiple choice questions are taken from the question papers of various Government recruitments occurred in the past.

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[1] Financial statements users include

 (a) Shareholders

(b) Government

(c) Vendors

 (d) All of the above



[2] Which of these is not available in the Financial Statements of a Company?

(a) Total Sales

(b) Total Profit & Loss

(c) Capital

(d) Cost of Production



[3] ~ 5000 paid as rent : of office premises is an/a _____

 (a) Event

(b) Transaction

(c) Both

(d) None.



[4] Which of the following is correct? Owner’s Equity is:

 (a) (Current Asset + Fixed Asset) + (Current Liabilities + Long term Liabilities)

(b) (Current Asset + Fixed Asset) – (Current Liabilities + Long term Liabilities) 

(c) (Current Asset – Fixed Asset) – (Current Liabilities + Long term Liabillties)

(d) None of the above.


[5] If owner’s capital is ~ 50,000 liability is ~ 30,000 and fixed assets is ~ 70,000, then what is the value of current assets?

 (a) ~ 10,000

(b) ~ 40,000

(c) ~ 80,000

(d) ~ 1,00,000





[6] Net Profit or Loss will be derived at __ stage of accounting


(a) Classifying

(b) Interpretation

(c) Recording

(d) Summarising


[7] Which one of the following is not a main objective of accounting?

 (a) Systematic recording of the transaction

(b) Ascertainment of the profitability of the business.

(c) Ascertainment of the financial position of the business.

(d) Solving tax disputes with tax authorities



[8] At the end of the financial year, Mr. X earns a profit of ~ 57,000 in his business. This is


(a) a transaction

(b) an event

(c) a transaction as well as an event

(d) neither a transaction nor an event



[9] Which of the following is an event?

 (a) Sale of goods for ~ 5,000

(b) Closing stock of worth ~ 4,000

(c) Purchase of goods for ~ 8,000

(d) Rent paid ~ 2,000



[10] Accounting has universal application for recording and events and presenting suitable information for decision making

 (a) Entries

(b) Transactions

(c) Data

(d) Figures.



[11]________ was the root of financial accounting system:

(a) Social accounting

(b) Stewardship accounting

(c) Management accounting

(d) Responsibility accounting



[12] Interpreting Financial Statements means:

(a) Methodical classification of the data given in the financial statements.

(b) Preparation and presentation of the classified data in a manner useful to the users of financial statements.

(c) Systematic analysis of the recorded data so as to put information in usable form.

(d) Explaining the meaning and significance of the relationship of analysis of accounting data



[13] The process of recording financial data along with the preparation of trial balance are covered under-

 (a) Book Keeping

(b) Accounting

(c) Classifying

(d) Summarising



[14] All items relating to fixed assets are put at one place while. all items relating to current assets are put at another place. Which procedural stage of the accounting is being referred?

 (a) Communicating

(b) Analysing

(c) tnterpretinq

(d) Recording



[15] Government raises funds through taxes and spends on various development activities. The deficit or surplus at the end of accounting year is:

 (a) A transaction

(b) An event

(c) A transaction as well as an event.

(d) Neither transaction nor an event.



[16] “Substance of any transaction should be considered while recording them and not only the legal form.” Is the statement which holds true for?

 (a) Substance over form.

(b) Disclosure of accounting . policies.

 (c) Both (a) and (b).

(d) None of the three.



[17] Financial position of the business is ascertained on the basis of:

 (a) Records prepared under book . keeping process.

(b) Trial balance.

(c) Accounting Reports.

(d) None of the above.



[18] On March 31 st, 2016, after sale of goods worth ~ 45,000, businessman is left with the closing inventory of ~ 20,000. This is:

(a) an event

(b) a transaction

(c) a transaction as well as an event

(d) neither a transaction nor an event.



[19] BOD, government, lender,suppliers, customers, managers, investors, partners. From the above identify the external and internal stakeholders.

 (a) Internal: BOD, lender, suppliers, manager, partners External: Investor, customers, government

(b) Internal: BOD, managers, partners External: Investor ‘:’–customer, government, lender, supplier

(c) Internal: BOD, lenders External: Suppliers, managers,partners, investors, customers, and using financial information reporting

(d) internal ;BOD;partners ; external supplierts : manager customer



[20] Payment made to suppliers of goods may be classified as __ .

 (a) An event

(b) A transaction

(c) A transaction as well as an event

(d) Neither a transaction nor an event


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