Please chose the correct answer

1. The term 'Financial Statement' covers:

a) Profit & Loss Statement

b) Balance sheet and Profit & Loss Statement appropriation account

c) Profit & Loss Statement and Balance sheet

d) All of above are false

2. The concept of "separate entity ' is applicable to which of the following type of business?

a) Sole proprietorship

b) Corporation

c) Partner ship

d) All of the above

3. Accounting principle is divided into:

a) Accounting concept

b) Accounting conventions

c) Fundamental accounting assumptions

d) All of the above

4.An Annual Report is issued by a company to its:

(a) Directors

(b) Authors

(c) Shareholders

(d) Management

5.The profit and loss disclosed by the accounts of a company is:

(a) Transferred to share capital account

(b) Shown under the head of 'Current liabilities' and provisions

(c) Shown under the head 'Reserves and Surplus

(d) None of these

6.Balance Sheet is a:

(a) Account

(b) Statement

(c) Both (a) and (b)

(d) All the above

7.Financial statements are the product of accounting process.

(a) First

(b) Second

(c) End

(d) None of these

8.Financial statements disclose:

(a) Monetary information

(b) Qualitative information

(c) Non-monetary information

(d) All the above

9.Statement of Profit & Loss is also called.........:

(a) Operating Profit

(b) Balance Sheet

(c) Income Statement

(d) Trading Account

10.Preliminary expenses are shown in the Balance Sheet under the head:

(a) Non-current assets

(b) Current assets

(c) Non-current liabilities

(d) Deducted from securities premium reserve

11.Debit Balance of Profit & Loss Statement will be shown on:

(a) Assets Side of Balance Sheet

(b) Liabilities Side of Balance Sheet

(c) Under the head Reserve & Surplus

(d) Under the head Reserves and Surplus as a negative item

12. As per Accounting Standard-3, Cash Flow is classified into:

a) Operating activities and investing activities

b) Investing activities and financing activities

c) Operating activities and financing activities

d) Operating activities, financing activities and investing activities

13. Cash Flow Statement is also known as:

a) Statement of Changes in Financial Position on Cash basis

b) Statement accounting for variation in cash

c) Both a and b

d) None of the above.

14. The objectives of Cash Flow Statement are

A) Analysis of cash position

B) Short-term cash planning

C) Evaluation of liquidity

D) Comparison of operating Performance

15. In cash flow statement, the item of interest is shown in:

A) Operating Activities

B) Financing Activities

C) Investing Activities

a) Both A and B

b) Both A and C

c) Both B and C

d) A, B, C

16.What is the basic concept of cost concept?

A) Cost ascertainment.

B) Tax compliance.

C) Financial audit

D) Profit analysis

17. In how many ways cost classification can be done?

A) Three ways

B) Two ways

C) Four ways

D) Many ways

18. A total of all the direct costs is known as

A) Cost of production

B) Cost of sales

C) Prime cost

D) Works cost

19. What item is not included in cost accounting?

A) Product costing

B) Profit-sharing

C) Planning

D) Controlling

20.Which of the following is not an internal user of management information?

a) Creditor

b) Department manager

c) Controller

d) Treasurer

21.Management accounting is applicable to

a) Service entities

b) Manufacturing entities

c) Nonprofit entities

d) All of these

22.Double entry system is used in which type of accounting

a) Cost

b) Financial

c) Management

d) All

23. An accounting that deals with the accounting and reporting of information to management regarding the detail information is

a) Financial accounting

b) Management accounting

c) Cost accounting

d) Real Accounting

24. Marginal costing is concerned with:

a) Fixed cost

b) Variable cost

c) Semi variable cost

d) None of the above

25. According to which concept business is treated as a unit apart from owner

a) Dual concept

b) Divider concept

c) Entity concept

d) Landlord concept

26. Financial accounting use data

a) Projected data

b) External data only

c) Historic data

d) Manager data only

27. The purpose of financial accounts is reporting to

a) Management only

b) Government only

c) Investor only

d) All of these

28. Which financial statement represents the accounting equation ASSETS = LIABILITIES + OWNER'S EQUITY

a) Income Statement

b) Cash Flow Statement

c) Balance Sheet

d) Fund Flow Statement

29. The revenue recognition principal dictates that all types of incomes should be recorded or recognized when

a) Cash is received

b) At the end of accounting period

c) When they are earned

d) When interest is paid

30. Accounting is the process of matching........

a) Benefits & Costs

b) Revenues & Costs

c) Cash Inflow & Cash Outflow

d) Potential & Real Performance