Classical

Financial and Management Accounting - Financial and Management Accounting Questions

21:  
Following expenses are not shown in Profit & Loss Account
1. Domestic and household expenses
2. Interest on capital
3. Income tax
4. Life insurance premium
Select the correct answer using the codes given below :
A.

1,2 and 3

B.

2,3 and 4

C.

1,3 and 4

D.

1 and 4

 
 

Option: C

Explanation :


22:  
When the proprietor withdraws or takes away some goods from the business for his personal use or consumption, he records the withdrawals at
A.

Selling price

B.

Cost price

C.
Selling price or cost price whichever is higher
D.
Selling price or cost price whichever is lower
 
 

Option: B

Explanation :


23:  
The accounting equation (i.e., Assets = Liabilities + Capital) is an expression of the
A.

Cost Concept

B.

Business Entity Concept

C.

Money Measurement Concept

D.

Matching Concept

 
 

Option: B

Explanation :


24:  

Which of the following statements is correct?

A.
Cost of goods sold is calculated at the time of sale
B.
Adjustment entries are required because of accrual basis used for accounting
C.
Trial balance is a conclusive proof of accuracy of accounts
D.
Debit balance means that debit side total is less than credit side total.
 
 

Option: B

Explanation :


25:  
Single entry in the popular sense may consist of
A.
Double entry for certain transactions such as cash received from debtors
B.
Single entry in respect of some transactions such as purchase of fixed assets etc.
C.
No entry in respect of some transactions such as bad debts etc
D.

All of the above

 
 

Option: D

Explanation :




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