mcqs on accounting_accounting equation 9-pdf
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7/25/2019 MCQs on Accounting_accounting Equation 9-PDF
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Se lect the corr e ct e qu a ti on
a Own e rs E qui ty= A sse ts + Li a bi lit y
b O w n ers E qui ty + Out s id e li a bilit y=T ot a l As -se ts
c A ss et s + O wne rs E quit y= Out s id e L iabilit y
d Outside Equit y + pr o fit =T otal A ss et s
2 Cash w ithd rawal b y th e pr o p r ie tor wo uld cause-
a Cas h in h a nd to d ec rease
b E x ternal liabilit y to d ecr eas e
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c Tota l l iabi lit ies to increase
d Tota l assets re m ai n u nc h a n ge d
3 Purchase of office e quipment for cas h wo uldca u se
a Cas h in ha n d to d ecrease
b Externa l li a bili ty to decrease
c Total lia bi lities to in crease
d Total assets to in c rease
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7/25/2019 MCQs on Accounting_accounting Equation 9-PDF
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ACCOUNTING
4. Both total assets and own ers capital are increasedby .
a Credit purchases b Retained earnings
c Bank loans
d Drawings
5. Both total assets and owners capital are reducedby
a Credit purchases
b Retained earnings.
c) Bank loans
dDrawings
6. Purchase of RBI bonds for cash would lead to .
a No change in total assets
b Total assets to decrease
c) Total assets to increase
d Total liabilities to increase
7. Loss of stock by fire would lead to
a No change in total assets .
b Total assets to decrease
c Total assets to increased T l d i d
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7/25/2019 MCQs on Accounting_accounting Equation 9-PDF
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2 question No . 11 the other as se ts of the firm willbe
a Rs .I00000
b R s.120000
c Rs.80,000 d Rs .140,000
3 If total assets of a business ar e Rs . 180,000 andtotal outside liabilities are Rs. 50,000, t h e n e tworth of the firm-wi ll b e
a Rs. 1 30,000
b Rs.230,000
c Rs .1 80,000
d R s.50,000
4 Net worth is the difference between
a Total assets and total liabilitie s
b Total assets and ext e rnal liabi lities
c Tota l liabi liti e s and current assets
d Total a ssets and curr e nt liabiliti e s
5 If a b usiness has negative net worth what does itsignifies
a Tota l assets are more than total liabilities
b Accumulated loss e s are more than ownerscapital
c Huge cash logged up in idle assets
d Outside liabilities exceed s owners capital
6 From the following detai ls calculate the capitalexpendit u re to be capitalized .
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18 From the following d etails c alculate th e capitalexpendit ure to b e capit alized.
l Basic pric e of the Machine R s. 170 ,000
· . it Custo ms dut y Rs. 20 ,000
iiz Sea freight R s. 20,000
iv Insur ance Rs. 5000
v Erection ch arges Rs . 5000
vz CENV A T credit t aken Rs. 20 ,000
a Rs.200000 b Rs.175000
c Rs.150000
d Rs.190,000
19 From the followin g deta ils calculate the capital
expenditu re to b e capit alized. l Basic pric e of the Ma chin e Rs. 175,000
iz Excise duty Rs . 20,000
iil Freight R s. 20,000
iv) Insurance Rs. 5000
v Erection charg es Rs. 4000
V l CENV A T credit t aken R s. 20,000
a Rs.204,000
b .Rs. 1 85,000
c Rs.180 ,000
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c Rs.75,OOO
d Rs.45,OOO
22. ABC Associates is not maintaining full fledgesaccounts on Double entry system basis . From thefollowing details estimate the profit made by thefirm during 05-06.
Capital as on 1-04-2005 Rs. 90,000
Capital added during the year Rs . 25,000
Drawing during the year Rs. 35,000
Capital as on 31-3-2005 Rs . 125,000
a Rs.50,OOO
b Rs.60,OOO
c Rs. 75,000
d Rs.45,OOO23. XYZ Associates is not maintaining full fledges
accounts on Double entry system basis . From thefollowing d etails estimates the capital of the firmas on 31-03-2006 .
Capital as on 1-04-2005 Rs. 80,000
Capital added during the year Rs . 20,000
Drawing during the year Rs. 35,000
Profit credit to the capital c Rs . 60,000
a Rs. 150,000
b Rs.125,OOOR 175 OOO
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b Rs.60,000
c Rs.75,000
d Rs.4 5,000
26. PQR As sociates is not m aintainin g full fledgesaccounts on Doubl e entry sy stem ba sis . From th efoll owing details estim ate the capital of the firm ason 31 -03-2 006 .
Capital as on 1-04-200 5 Rs. 80,000
Capita l added durin g the yea r Rs. 20,000
Draw ing durin g the yea r Rs. 35,000
Prof it du ring the ye ar R s. 25,000
a RS.80,000
b Rs.90,000
c RS.75,000 d RS.45,000
27 From the followin g details ca lculate cred it sales.
Debtors bal ance as onl-04-2006 Rs . 30,000
Collection from d ebto rs during th e year Rs. 70,000
Discount given to debtors Rs. 4,000
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Bad debts durin g the yea r Rs. 3,500
Debtors b alance as on 31-03 -2007 Rs . 20,000
a Rs.70,000
b Rs.71,000
c Rs. 68,500
d Rs.67500
8 From the following calculate credit pur chaseduring th e year.
Credito rs as on 1-04-2006 Rs. 3 6,500
Pay ment m ade to c reditors R s. 60,000
Discount given by creditor s for early pa ymentRs.5,500
Creditors as on 31 -03-200 7 Rs. 21,000
a Rs.50 ,000
b Rs.54,000
c Rs.61,250
d Rs.52,800
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ACCOUN TING - AN INTRODU CTION
b Rs.60,OOO
e Rs.75,OOO
d Rs.45,OOO
26. PQR A ssocia tes is not m aintainin g full fledgesaccounts o n Double entry sys tem basis . From thefoll owing detail s estimat e the capital of the firm ason 31-0 3-2006.
Capital as on 1-04- 2005 R s. 80,000
Capital added durin g the year Rs. 20,000
Drawing durin g the year Rs. 35,000
Profit during th e yea r Rs. 25,000
a Rs.80,OOO
b Rs. 90,000
c Rs. 75,000
d Rs.45,OOO
27. From th e following details calculate credit sales.
Debto rs balance a s onl-04-2006 R s. 30,000
Collection from debtor s during th e year Rs. 70,000
Discount given to d ebto rs Rs. 4,000
Bad d ebts during the year Rs. 3,500
Debtors ba lance as on 3 1-03-2007 Rs . 20,000
a Rs.70 ,OOO
b Rs.71,OOO
c Rs. 68,500
d Rs.67500
28. F rom the followin g ca lculate credit purchasduring the year.
Credito rs as on 1-04-2006 Rs . 36,500
Payment m ade to creditors Rs. 60,000
Discount g iven by creditors for early paymeRs.5,500
Creditor s as on 31-03-2007 Rs . 21,000
a Rs.50,OOO
b Rs. 54,000
e Rs.61,250
d Rs.52,800
Answers: 1 b , 2 a , 3 a , 4 b , 5 d , 6 a , 7 d , 8 c , 9 b , 1O a , 11 b , 12 a , 13 a , 14 b , 15 b , 16 a , 17 a , 18 a , 1920 b , 21 b , 22 d ,.23 b , 24 b , 25 a , 26 b , 27 d , 28 a
A C C O UNT I NG STANDA RD S
1 . Which of the following is one of the advantages of c To minimi ze tax liabil itiesAccountin g Standards? d All the three
a To elimin ate or reduce variation in ac count- 4 How many Ac countin g S tan d a rd s have beening treatm ents. sued in India so far?
b To facilitate co mparison of Financial state- a 28ments of diff erent comp anies
b 29 c To make financial statements more infor-
mative c 30
d All the three d 27
In India Accountin g Standard s are issued by ....... 5 Which of the followi ng statement is true?
a lCAl a So far 28 Accounting standards have b
issued in India b s t
c ICWA I b Non-Compli ance of accountin g stan dards
a criminal offence d IDB c Accountin g Standard s are issu ed by CB
3 Which of t he following is on e of the objectives of d Account ing Standard B oard ASB) wasAccountin g Stand ard? up in 197 7
a To standardize diverse accounting practices 6 Which o f the following bodi es are not r epresenand po licies in ASB?
b To imp rove f inancial performan ce of Busi- a ICA Iness enterprises