Introduction to accountancy - class-IX
Costing system, which is a combination of process costing and job costing system is classified as _____________.
Element/s of Cost of a product are _________.
One of the book selection principles states that ''the best reading for the largest number at the__________ Cost.''
A saree manufacturer marks 20% higher price on his sarees. He allows 10% discount to the coustomer and earns a profit of Rs. 56 The cost of the saree is _____________.
Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as _____________.
A manager who is responsible for only cost of company belongs to _____________.
Which of the following is not an advance given by a bank?
Deposit is a money deposited by customer in bank for saving.
Insurance Act came in to effect in _______.
The Insurance Act, 1938 is a law originally passed in 1938 in British India to regulate the insurance sector. It provides the broad legal framework within which the industry operates.
On 31.3.2019 after sale of goods Rs. 2,000, Neelam is left with the closing inventory of Rs. 10,000. This is ____________.
Which of the following are ways to prove access rights?
Debit means _________.
Debit means left side. For e.g. every accounting entry will have a debit and credit amount. The debit amount is usually listed first and will be entered on the left side of the general ledger account indicated. The general ledger accounts will have both a debit and credit side, left and right side. The balance in a general ledger account will be either a debit balance or a credit balance.
Rs. 500 spent on servicing office type writer should be debited to _________.
Amount spend on normal servicing or repair of any asset is a revenue expenditure and should be debited to repairs account in profit & loss account. Any amount spent which improves the life of any asset, should be capitalized.
The process of recording financial transactions in the journal is called ___________.
All business transactions are to be first recorded in journal in chronological order. Process of recording the transaction is called journalizing.
In life insurance, the risk insured is __________________.
Life insurance are taken to cover up the unforeseen and untimely event occurs during the life time. Life insurance companies provide the coverage of life of the insurer by taking an insurance premium. Life cover are taken to have future security in case of untimely and unforeseen circumstances.
A bank can open a branch only at the permission of the _______.
RBI has strict guidelines about the same keeping multiple factors in mind - type of bank, financial inclusion being done, location, density of banking needed etc
$1.$ Providing only for the holding company's share of unrealised profit is more popular.
$2.$ The holding company's share of the unrealised profit should be reduced from the stock on the asset's side of the consolidated Balance Sheet
$3.$ The holding company's share of unrealised profit should be reduced from the profit and loss account on the liabilities side of the consolidated Balance Sheet.
$4.$ The approach of making a provision for the entire profit included in the stock is preferred by the American Institute of Certified Public Accountants (AICPA)
'Manufacturing Account' is prepared by _________.
Every business have to prepare financial statements at the end of every financial year to know the profitability and financial position of the business. In case of trading concern, business need to prepare trading account and Profit & Loss account and the Balance Sheet. In case of manufacturing concern, business need to prepare manufacturing account, trading account and Profit & Loss account and the Balance Sheet.
Transaction is ____________.
A transaction is a business event that has a monetary impact on an entity's financial statements, and is recorded as an entry in its accounting records.
Dealings between two persons is a __________ .
An event involving some value between two or more entities. It can be purchase of goods, receipt of money, payment of creditor, incurring expenses, etc. It can be a cash transaction or a credit transaction. A transaction is a business event that has a monetary impact on an entity's financial statements, and is recorded as an entry in its accounting records. A high-volume transaction, such as billing to a customer, may be recorded in a specialized journal, which is then summarized and posted to the general ledger. Alternatively, lower-volume transactions are posted directly to the general ledger.
Sale or purchase of goods or for certain value to be receivable or payable in future is known as ____________ .
The term "transaction" refers to any business dealing or event which has a value measurable in terms of money and which involves transfer of money or money's worth between the business and others. The capital introduced by the proprietor, the amount withdrawn by the proprietor, purchase of goods on cash or credit, selling of goods for cash or credit, receipt of money from a debtor, payment to a creditor, borrowing of loan from bank or payment of a loan, payment of salaries, rent, telephone charges, and receipt of incomes such as discount, rent and interest are examples of transactions. A credit transaction is one in which payment or receipt of money is postponed for a future date. Here, the name of the party is mentioned (with or without the word 'credit'). Purchased furniture from Mohan on credit, sold goods to Rejeev on credit, and salary unpaid, are some examples of credit transactions.
Business transaction in which cash is not paid or received immediately is known as ______________.
Credit transaction means any transaction by the terms of which the repayment of money loaned or loan commitment made or payment for goods, services or properties sold or leased is to be made at future date or dates. In other words credit transaction means goods or services are purchased but the payment will settle in a later date.
Exchange of goods and services either for cash or any other goods or services is known as _______________ .
A event involving some value between two or more entities. It can be purchase of goods, receipt of money, payment to a creditor, incurring expenses, etc. A transaction is a business event that has a monetary impact on entity's financial statements, and is recorded as an entry in its accounting records. A high-volume transaction, such as billing to a customer, may be recorded in a specialized journal, which is then summarized and posted to the general ledger. Alternatively, lower-volume transactions are posted directly to the general ledger. A transaction can be a cash transaction or a credit transaction.
Sale or purchase of goods or services for immediate cash payment is known as ____________ .
The term "transaction" refers to any business dealing or event which has a value measurable in terms of money and which involves transfer of money or money's worth between the business and others. The capital introduced by the proprietor, the amount withdrawn by the proprietor, purchase of goods on cash or credit, selling of goods for cash or credit, receipt of money from a debtor, payment to a creditor, borrowing of loan from the bank or payment of a loan, payment of salaries, rent, telephone charges, and receipt of incomes such as discount, rent and interest are examples of transactions. Cash transactions refer to any transaction which involves immediate payment or receipt of cash, e.g. purchase of goods for cash, sale of goods for cash, and payment of expenses or receipt of incomes
Money value of the reputation of business is known as ______.
Business goodwill is a key intangible asset that represents the portion of the business value that cannot be attributed to other business assets. The value of a company brand name, solid customer relations, good employee relations represent goodwill.
Period of time for which accounts of the business are prepared is _____________.
Every organization surely want to analyse the overall business performance. Normally this is 12 month or a period of a year. This year is called accounting year, also termed as financial year.
A transaction is concerned with money and money 's worth.
A transaction is an agreement between a buyer and a seller to exchange goods, services or financial instruments. Transaction is a business event that has a monetary impact on an entity 's financial statements. For example - paying a supplier for services rendered or for supply of goods, paying an employee for hours work etc. This all are transactions and involve money and money' s worth.
The above statement is true as barter system is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange such as money.
In credit transaction goods or services are purchased but the payment is settle in a later date and in cash transactions payment is settled immediately.
Narration is written just above an entry.
A brief about the journal entry is written after every journal entry to give the transaction details about the journal entry.
Gopal Sons starts a business by investing Rs. 15 lakh and purchases goods worth Rs.12.5 lakh. At the end of the year he is left with a profit of Rs.1,50,000. The surplus profit of Rs.1,50,000 is a /an_________.
Every economic activity is performed through transactions and events. An event is the happening, consequence or result of the transaction. Hence in our example the surplus profit is an event which is result of transaction.
________ is used to mean a happening as a consequence of transaction(s).
Every economic activity is performed through transactions and events. A transaction may be a business, performance of an act or an agreement. Event is used to mean a happening as a consequence of transaction(s).
An accountant records a transaction if ________ .
Any business transaction which occur during the course of business must have the documentary evidence. Since the accounts of the business need to be audited in future, all evidence must be available for records.
______ describes a record of the transaction.
The transactions are recorded first of all in the journal and then they are posted to the ledger. Thus the journal is the book of first or original entry while the ledger is the book of second entry. Journal records transactions in a chronological order. Journal is more reliable then ledger. The process of recording transactions is termed as journalising.
_______ is the first phase of accounting cycle.
Accounting cycle starts only when there is an event or transaction of monetary value. If a transaction is completed, its considered an event to record the same in business books. Non economic transaction should not be considered as an event. Hence, no recording is done.
_______ is used to an economic event in accounting.
Every economic activity is performed through transactions and events. A transaction may be a business, performance of an act or an agreement. Transaction is used to an economic event in accounting.
Choose the wrong statement.
Accounting is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. transactions and events of financial information. It revels profit or loss for a given period, and the value and nature of firm's assets, liabilities and owner;s equity. It is the language of business.
A business transaction in which money comes into the business immediately after the goods are delivered or services are rendered is called ____________.
A cash transactions is a transaction where there is an immediate payment of cash for the purchases of an asset. It differs from other type of transactions that involves delayed delivery of purchased item, or delayed payment for the item.
A post dated cheque bears ______ date.
A post-dated check (or post-dated cheque) is a check written with a future date. In other words, the date that appears on the check is after the date when the check was written. Even with a future date appearing on the check, the check could clear (be paid from) the bank account prior to that date.
Ram purchased goods of Rs. $10,000$. This can be classified as _________.
Any exchange of value for value ( for money or money's worth) is called a transaction. Something having value is received, and something having value goes out. Selling or purchasing of goods or taking or granting any loan are examples of transactions.
On March 31, there is closing stock of Rs. $10,000$. This can be classified ________________.
Unsold items i.e Closing stock is captured in the financial statements as 'Current Asset'. An event can be internal or external. This is an internal event.
State with reasons whether the following statement is true or false:
Transactions and events are guided by generally accepted accounting principles subject to law of land.
Accounting is based on the certain concepts and conventions which are commonly known as Generally Accepted Accounting principles".
Which of the following statement is false?
A void agreement is not punishable under law whereas an illegal agreement is considered as an offence, hence the parties to it are punishable and penalised under Indian Penal Code (IPC)
Which of the following is a cash transaction?
This can be summarized as:
Which of the following is a credit transaction?
Sold goods to customer is defined as credit sales.
Posting means the recording of a transaction _____________.
Posting is the transfer of journal entries to a general ledger, which usually contains a separate form for each account. Journals record transactions in chronological order, while ledgers summarize transactions by account. Posting in accounting consists of a few simple steps.
Adjusting entries are essential to the ___________.
Before financial statements are prepared, additional journal entries, called adjusting entries, are made to ensure that the company's financial records adhere to the revenue recognition and matching principles. Adjusting entries are necessary because a single transaction may affect revenues or expenses in more than one accounting period and also because all transactions have not necessarily been documented during the period. Each adjusting entry usually affects one income statement account (a revenue or expense account) and one balance sheet account (an asset or liability account)
The basic concepts related to P&L Account are _______________.
The matching concept is an accounting practice whereby firms recognize revenues and their related expenses in the same accounting period.
In every business transaction, at least _______ parties are involved.
Any business transaction will involve at least two parties. One can not do the transaction with himself. One party may be receiver and another will be give.
Which of the following business entity will not prepare Trading Account?
Trading accounting is prepared only by those organization where the purchase and sale of goods is done.
The manufacturing account is prepared __________________.
|To Op Stock of Raw Material||By Closing Stock of Raw Material|
|To Opening Stock of WIP||By Closing WIP|
|To Purchases of Raw Material||By Cost of goods transferred to Trading A/c|
|To Carriage Inwards|
|To Direct Labor|
|To Direct Expenses|
|To Factory Rent|
|To Fuel, Power|
|To Manufacturing overheads|
Characteristic feature NOT found in a company is _______.
Fixed assets are recorded at _______.
Fixed assets are those which gives the benefits to the organization on a long term basis. Fixed Assets are recorded in the books of account on the original cost irrespective of their market value as per the cost concept in accounting.
On 1.1.2019, CS N. S. Zad paid rent of Rs. 25,000 for Zads Professional Academy. This can be classified as _________.
Monetary concept of accounting defines that only those transactions are recorded in the books of account which are measured in terms of money.
Which of the following statements is correct?
Profit & Loss account is prepared for a business for a particular period. Profit & Loss account is having two sides i.e. Income and expenses side or debit or credit side. All incomes/revenues are recorded in credit side and expenses are debited.
Which of the following statements is correct in relation to a trial balance?
When a consistency is found between financial statements of one entity from period to period it is _____________.
Consistency is the basic assumption and it is assumed that the various Policies/Methods adopted by the concern while preparing the accounts are consistent from one period to another. This convention plays its role particularly when there are some different methods available. However, consistency does not implies that there is no way for the introduction of new policies.
Business is treated as a separate entity accounts for __________.
Separate entity concept defines that the owner and business are having a separate legal entity in the eye of law. Any amount contributed by the owner is considered as liability to the business.
The business form(s) in which the owners is (are) personally liable is (are) _________.
Co-operative society __________.
A vacant position that arises because of the resignation of the director can only be filed in __________.
Sole traders differ from other types of trading organizations. Which of the following statements correctly summarizes the key characteristics of a sole trader's business?
Which of the following is TRUE about the sole trader form of business?
Which one of the following is NOT a feature of sole proprietorship business?
Separate entity concept defines that the owner/proprietor and business are treated two separate legal entity in the eyes of law. Hence any contribution made by owner as part of capital is treated as liability in the business.
Accounting transactions are recorded in terms of ________.
In accounting we can communicate only those business transactions and other events which can be expressed in monetary units. This is called monetary unit assumption. Therefore, only money or money's worth transactions are recorded in the books of account.
Atul purchased a car for Rs. $5,00,000$, by making a down payment of Rs. $1,00,000$ and signing a Rs. $4,00,000$ bill payable due in $60$ days. As a result of this transaction ____________________.
On purchase of a Car, total assets of balance sheet will be increased by $Rs. 5,00,000$ and on making of down payment of $Rs.1,00,000$ total assets will decrease by $Rs. 1,00,000$. The result will be that total assets of Balance sheet will increase by $Rs.4,00,000$.
On other hand a liability of $Rs.4,00,000$ has been made so the liability side of Balance Sheet will be increased by $Rs.4,00,000$.
Revenue from sales of products is generally accounted in the period in which __________.
Business transactions are recorded when they occur and not when the related payments are received or made. This concept is called accrual basis of accounting and it is fundamental to the usefulness of financial accounting information.
Thus sale of products is recorded when sales is made and not when cash is collected or when products are manufactured.
Goods returned to supplier is an example of __________.
Which of the following is correct?
Sale of goods to Ram for Rs. 1,000 with a credit term of 5 days is a/an ____________.
The transaction in which there is no immediate payment of cash is known credit transaction. For e.g., sale of goods to Ram for Rs. 1,000. In this transaction goods worth Rs. 1,000 sold to Ram on 5 days credit is a credit transaction as the payment is not made immediately for the goods.
Sale of goods to Ram for Cash $Rs.1000$ is a ______________.
The transaction which involves immediate payment of cash is known as cash transaction. For e.g., Sale of goods to Ram for Cash Rs. 1,000. In this transaction goods are sold to Ram when he paid Rs. 1,000 cash.
An economic event that involves transfer of money or money's worth is a/are _______________.
Any event which involves transfer of money or money's worth is known as financial transaction. It is an agreement, or communication, carried out between a buyer and a seller to exchange an asset for payment. It is still a transaction if the goods are exchanged at one time, and the money at other.
On March 31 after sale of goods worth Rs 10,000, there is closing stock of Rs 20,000. This is _____________.
Unsold items i.e Closing stock is captured in the financial statements as 'Current Assets'.
Ram paid rent of Rs 10,000. This can be classified as _____________.
'Transaction' involves money or money's worth, and hence, has a financial impact in the books of accounts.
Closing Stocks with X and Y are 26400 & 60000 respectively. In the books of Y, what will be the treatment of closing stock in joint venture?
Discount charges of Rs 1000 on discounting a B/R by one of the co-venture, maintaining all joint ventures transactions in his books of account will be __________.
If adjusting entries are not passed __________________.
Adjusting entries are the entries which are passed at the year end. The balance sheet as well as the trial balance will tally but the financial statements will not show a correct picture of the financial position of the company.
"Debit the receiver and credit the giver" is the golden rule for which type of account?
"Debit the receiver, and credit the giver" is a golden rule for Personal A/c. Personal accounts are the accounts for individual, firms, companies etc. By debit the receiver means the person who is receiving goods on credit will be debited and the person who is giving will be credited.
General reserve account and dividend equalization fund account are ______________.
What rate of commission is charged by the bank issuing the credit card?
The bank issuing the credit card charges a commission from anywhere between 1% to 4% for each such transaction. The commission charged is immediately debited to the seller's bank account.
When the form and flow of operations of an entity are so devised that automatic checks are carried out as the transaction occurs, it is called _________________.
Vouching may be formed as ____________________.
Which is an unearned income?
Unearned Income is that income which is received in advance. That mean income received against which services are not provided so far.
The bank statement reports a credit transfer of Rs.$4000$ from a customer. Accounting entries for this is _____________________.
As per double entry system of accounting, every transaction affects two account. In the given transaction, Bank and customer account are affected. Bank account is a real account and customer account is a personal account.
The characteristic that is always present with joint venture is _____________.
A joint venture is a business entity created by two or more parties generally to share the ownership to complete a specific task or venture.
India suffered from deficit balance both in trade and balance and not invisibles, hence took up a number of Steps to manage the problem. Which one is not appropriate for this?
Export control regulations are federal laws that prohibit the unlicensed export of certain commodities or information for reasons of national security or protections of trade.
Current assets are those assets which get converted into cash ___________ .
Current assets are assets that can be converted into cash within one fiscal year or one operating cycle. Current assets are used to facilitate day-to-day operational expenses and investments. As a result, short-term assets are liquid meaning they can be readily converted into cash.
Fresh capital introduction will increase _______________.
Financial assets _________.
Capital gain of Rs. 75 lakh arising from transfer of long term capital assets will be exempt from tax if such capital gain is invested in the bonds redeemable after three years, issued by NHAI u/s 54EC of the Act.
"For the financial year ended as on March 31, 20XX the figures extracted from the balance sheet of Xerox Limited as under: Opening Stock Rs 29, 000; Purchases Rs 2, 42, 000; Sales Rs 3, 20, 000; Gross Profit 25% of Sales. Stock Turnover Ratio will be".
The liability of the shareholders of a public limited company is limited to the extent of ________________.
Left side of balance sheet states the ______________.
The term cost refers to __________.
In regression analysis, if predicted cost value is 65 and observed cost value is 19 then disturbance term will be _________.
According to the traditional approach cost of capital affected by?
If a company is registered on the basis of fictitious names, its incorporation is invalid.
The certificate of incorporation once issued, is a conclusive evidence of the existence of the company even if there were deficiencies in the formalities.
Number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate _________________.
Other factors held constant, but lesser project liquidity is because of ______________.
Other factors held constant, but lesser project liquidity is because of greater payback period. Payback period in capital budgeting refers to the period of time required to recoup the funds expended in an investment, or to reach the break-even point.
Personal Account relates to ____________.
What is the validity of the registration certificate?