Theory Base of Accounting Test

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Theory Base of Accounting Test - 35

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Weekly Quiz Competition

Question 1
1 / -0

Which of the following statement is correct ___________.

A
Materiality convention demands that material facts which influence the decision maker must be suitable disclosed.

B
All the method of charging depreciation are accepted by income - tax Department.

C
Disclosure concept requires that all information material or immaterial should be disclosed.

D
Income not adding to cash balance is not a business income.
Question 2
1 / -0

____________ of Accounting recognizes revenue when the amount is ultimately collected ____________.

A
Mercantile basis

B
Cash basis

C
Production basis

D
Accrual basis

Solution

The cash basis of accounting recognizes revenue when the amount is ultimately collected.
There are mainly two bases of Accounting namely
1. Cash Basis of Accounting
2. Accrual Basis of Accounting.
The accrual basis of accounting is widely used by business enterprises.
Question 3
1 / -0

The Accounting Standards issued by IASB are called __________.

A
Internally Accepted Accounting Standards

B
International financial Accounting Standards

C
Internal Accounting Standards

D
International Financial Reporting Standards

Solution

The Accounting Standards issued by IASB are called International Financial Reporting Standards which are commonly known as IFRS.
The full form of IASB is International Accounting Standards Board.
Question 4
1 / -0

The accounting standard are mandatory for

A
Charitable organization

B
Govt.departments

C
Companies

D
Central Government

Solution

The accounting standard are mandatory for Companies. Accounting standards are issued by the institute of chartered accountant of India. Accounting Standards are sets of rules, principles, policies which are followed in accounting.
Question 5
1 / -0

___ Ind AS have been notified so far

A
44

B
24

C
33

D
39

Solution

39 Ind AS has been notified so far.
Accounting Standards are issued by the Institute of Chartered Accountants of India to bring uniformity in accounting.
Question 6
1 / -0

As per $AS2$ inventories are valued at lower of cost or......

A
Market Price

B
Book Value

C
Net realizable value

D
Replacement value

Solution

As per AS-2 Inventories are valued at a lower cost or Net Realizable Value.
Accounting Standards are issued by the Institute of Chartered Accounting of India. Accounting standards define the principles, policies, rules to be followed while preparing the financial statements.
Question 7
1 / -0

According to money measurement concept which of the following will be recorded in the books of account?

A
Health of the chairman of the company

B
Quality control in the business

C
Value of the building

D
All of the above

Solution

The concept of money measurement states that only those transactions and happenings in an organisation which can be expressed in terms of money such as sale of goods or payment of expenses or receipt of income, etc. are to be recorded in the book of accounts.
All such transactions or happenings which can not be expressed in monetary terms, for example, the appointment of a manager, do not find a place in the accounting records of a firm.
Hence, amongst the above, only value of building shall be recorded in the books of accounts.
Question 8
1 / -0

The concept of Disclosure is applicable to ..

A
All material and immaterial transactions

B
Only material transactions

C
Transactions reducing profit only

D
None

Solution

Concept of Disclosure states that only those matter should be disclosed in the financial which may change the decision making of the users of the financial statement. Therefore, Only material transactions is to be disclosed as per this concept.
Question 9
1 / -0

The practice of appending note regarding contingent liabilities in the accounting statements is in pursuant to __________.

A
convention of consistency

B
money measurement concept

C
convention of disclosure

D
none of the above

Solution

The principle of full disclosure requires that all material and relevant facts concerning financial performance of an enterprise must be fully and completely disclosed in the financial statements and their accompanying footnotes.
This is to enable the users to make correct assessment about the profitability and financial soundness of the enterprise and help them to take informed decisions.
Question 10
1 / -0

Purposes of an accounting system are________________________.

A
Intrepret

B
Classify the effects of transaction to facilitate the preparation of reports

C
Summarize and communicate information to decision makers

D
All of the above

Solution

The purpose of an accounting system are interpret, classify the effects of transaction to facilitate the preparation of reports and to summarize and communicate information to decision makers.

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Re-Attempt Weekly Quiz Competition

Theory Base of Accounting Test - 35

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Theory Base of Accounting Test - 35

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SHARING IS CARING

Question 1

Materiality convention demands that material facts which influence the decision maker must be suitable disclosed.

All the method of charging depreciation are accepted by income - tax Department.

Disclosure concept requires that all information material or immaterial should be disclosed.

Income not adding to cash balance is not a business income.

Question 2

Mercantile basis

Cash basis

Production basis

Accrual basis

Solution

Question 3

Internally Accepted Accounting Standards

International financial Accounting Standards

Internal Accounting Standards

International Financial Reporting Standards

Solution

Question 4

Charitable organization

Govt.departments

Companies

Central Government

Solution

Question 5

44

24

33

39

Solution

Question 6

Market Price

Book Value

Net realizable value

Replacement value

Solution

Question 7

Health of the chairman of the company

Quality control in the business

Value of the building

All of the above

Solution

Question 8

All material and immaterial transactions

Only material transactions

Transactions reducing profit only

None

Solution

Question 9

convention of consistency

money measurement concept

convention of disclosure

none of the above

Solution

Question 10

Intrepret

Classify the effects of transaction to facilitate the preparation of reports

Summarize and communicate information to decision makers

All of the above

Solution

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