accounts from incomplete records Test

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accounts from incomplete records Test - 2

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Weekly Quiz Competition

Question 1
1 / -0

Some small size business entities do not follow the double entry system of maintaining the accounting records because :

A
It is a time consuming method, and

B
It requires expert staff to adhere the principles and accounting standards of this system

C
It is very costly system.

D
All of these

Solution

small size businesses don't want to pay attention in accounting complexities and that's why they don't maintain their books of accounts through the complex system of double entry. since, double entry system a costly system in comparison to incomplete records( single entry), it is a time-consuming system and a small businessman wants to pay his all attention to his business activities rather than accounting activities and also it requires expert knowledge.
Question 2
1 / -0

Which method is used under single entry system to find out the profit or loss?

A
Double Entry System

B
Cash book

C
Statement of affairs method

D
All of these

Solution

under this method profit\loss is calculated in the following manner:-

capital at the end ****

add: drawing during the year   ****

****

less: capital introduced ****

adjusted capital at the end ****

less: capital at the beginning    ****

profit\loss for the year    ****

if opening and closing capitals aren't given, statement of affairs needs to be prepared to calculate capitals. a statement of affairs is a statement of all assets and liabilities. the difference between the amount of the two sides is taken as capital. a statement of affairs is just like the balance sheet.
Question 3
1 / -0

Under Accounting from Incomplete records system two accounts are maintained

A
personal accounts and receipt and payment account

B
Cash book and Income statement account

C
Cash book and personal accounts

D
personal accounts and trading account

Solution

under accounts from incomplete records system usually only cash and personal accounts of creditors and debtors are maintained, real and nominal accounts are avoided.
Question 4
1 / -0

Which of the following transactions are false regarding Accounting from Incomplete records system

A
Accounting Principles and Accounting Standards are not followed properly under this system.

B
Original vouchers provide base for preparing the accounts

C
Two aspects of all transactions are recorded

D
Some financial events are not recorded at all

Solution

under 'accounting from incomplete records' sometimes for certain transactions both aspects are is recorded, for others only one aspect is recorded and some transactions are not even recorded.
Question 5
1 / -0

Books according to Incomplete records system can be maintained only by those small entities in the form of

A
Sole proprietor and company

B
Sole proprietor and partnership

C
Company and partnership

D
None

Solution

other entities, like a company can't prepare their books of accounts under this system since they are bound to follow the formats prescribed under Companies Act, 2013.
Question 6
1 / -0

Following are the Limitations of Incomplete Records except

A
Under this system no real and nominal accounts are maintained

B
it is not possible to prepare a balance sheet showing the true financial position of the business

C
his method is highly flexible because it can be adjusted according to the need of the organization

D
incomplete method of maintaining the ac counting records

Solution

an organisation can record, as per their need, both aspects of a transaction or one aspect of a transaction or they may even ignore the transaction. since single entry system doesn't follow any set of rules and principles.
Question 7
1 / -0

How DOUBLE ENTRY SYSTEM is differ from INCOMPLETE RECORDS

A
As True and fair financial position can not be maintained

B
Arithmetic accuracy can not be checked in it

C
Only personal account is maintained in it

D
Both aspects of every transaction are recorded

Solution

under 'double entry system' both aspects of a transaction are recorded and also it is a scientific system where as in 'accounts from incomplete records system' sometimes for certain transaction both aspects are recorded, for others one aspects are recorded and some transactions are not even recorded.
Question 8
1 / -0

How statement of affairs is differ from balance sheet

A
Based on incomplete records and estimates

B
As it is prepared to ascertain capital amount at a certain point of time

C
Does not prove the arithmetical accuracy

D
As it is maintained under double entry system

Solution

under 'double entry system' both aspects of a transaction are recorded and also it is a scientific system where as in 'accounts from incomplete records system' sometimes for certain transaction both aspects are recorded, for others one aspects are recorded and some transactions are not even recorded. therefore it creates a lot of difference between the 'balance sheet' and 'statement of affairs'.
Question 9
1 / -0

When Statement of affairs is prepared _______ is not prepared.

A
Personal Account

B
Trial balance

C
Cash book

D
None of these

Solution

the trial balance is prepared just to check the arithmetic accuracy of accounting information. statement of affairs is prepared under accounts from incomplete records where arithmetic accuracy can't be checked since all information aren't available. hence when Statement of affairs is prepared trial balance is not prepared.
Question 10
1 / -0

When only closing and opening capital is given and closing capital is greater than opening capital it denotes

A
Loss

B
Profit

C
Profit if there is no introduction of fresh capital

D
None

Solution

calculation of profit/(loss) during the year:-

capital at the end ****

Add: drawing during the year   ****

****

Less: capital introduced ****

adjusted capital at the end ****

Less: capital at the beginning    ****

profit\loss for the year    ****

in the above format if the drawing isn't given and no further capital has been introduced, in such a case, the difference will be profit.

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accounts from incomplete records Test - 2

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accounts from incomplete records Test - 2

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Question 1

It is a time consuming method, and

It requires expert staff to adhere the principles and accounting standards of this system

It is very costly system.

All of these

Solution

Question 2

Double Entry System

Cash book

Statement of affairs method

All of these

Solution

Question 3

personal accounts and receipt and payment account

Cash book and Income statement account

Cash book and personal accounts

personal accounts and trading account

Solution

Question 4

Accounting Principles and Accounting Standards are not followed properly under this system.

Original vouchers provide base for preparing the accounts

Two aspects of all transactions are recorded

Some financial events are not recorded at all

Solution

Question 5

Sole proprietor and company

Sole proprietor and partnership

Company and partnership

None

Solution

Question 6

Under this system no real and nominal accounts are maintained

it is not possible to prepare a balance sheet showing the true financial position of the business

his method is highly flexible because it can be adjusted according to the need of the organization

incomplete method of maintaining the ac counting records

Solution

Question 7

As True and fair financial position can not be maintained

Arithmetic accuracy can not be checked in it

Only personal account is maintained in it

Both aspects of every transaction are recorded

Solution

Question 8

Based on incomplete records and estimates

As it is prepared to ascertain capital amount at a certain point of time

Does not prove the arithmetical accuracy

As it is maintained under double entry system

Solution

Question 9

Personal Account

Trial balance

Cash book

None of these

Solution

Question 10

Loss

Profit

Profit if there is no introduction of fresh capital

None

Solution

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