Systems of financial accounting - class-IX
| Description: systems of financial accounting | |
| Number of Questions: 115 | |
| Created by: Gagan Singh | |
| Tags: introduction to book-keeping and accountancy elements of accounts theory base of accounting accounting and its terminology introduction generally accepted accounting principles (gaap) and accounting standards introduction to accountancy accountancy book keeping and accountancy commercial applications bases of accounting book keeping and accounting introduction to accounting nature and terminology of accounting |
A company sends its cars to dealers on sale or return basis. All such transactions are, however, treated like actual sales and are passed through the sales day book. Just before the end of the financial year, two cars which had cost Rs 50,000 each have been sent on 'sale or return' and have been debited to customers at Rs 80,000 each. Cost of goods lying with the customers will be _______________.
The current ratio of a company is 2: 1 which of the following suggestions would Improve, reduce and net change it. I. Payment to trade creditors II. Sell machinery for cash Ill. Purchased goods for cash IV. Issue of equity shares ________________________.
Cash basis considers the revenue as realized, when the goods are produced.
Amit is recording sales transactions in the accounting system so that they can be summarized in a logical manner for the purpose of providing financial statement for decision-making. Amit is doing________.
A merchant sends out his goods casually to his dealers on approval basis. All such transactions are, however, recorded as actual sales and are passed through the sales book. On 31.12.2006, it was found that 200 articles at a sale price of 200 each sent on approval basis were recorded as actual sales at that price. The sale price was made at cost plus 25%. The amount of stock (at cost) on approval will be ______________.
Select the correct one/ones if all banks in an economy are nationalised and converted into a monopoly bank:
1. Deposits will decrease in the new bank
2. Deposits will increase in the new bank
3. There will be no effect on either saving rate or lending Code:
State, with reasons, whether the following statements are True or False.
Depositors approval is must for renewal of deposit.
An adjusting entry to accrue wages earned but not yet paid is an example of ______________________________.
______ attempt to record the financial effects of the transactions, events, and circumstances of an enterprise in the period in which they occur rather than recording them in period(s) in which cash is received or paid by the enterprise.
Which accounting system best reflect the time picture of organization?
Balance of cash column in cash book has ____________.
Which of the following is/are the essential features accrual basis of accounting?
(I) Revenue is recognized only when cash is received.
(II) Costs are matched against revenues on the basis of relevant time period to determine periodic income.
(III) Costs which are not charged to income are carried forward and are kept under continuous review.
(IV) Receipts or incomes are recorded as and when cash is received or becomes due on the other hand payments are recorded only when cash is actually paid.
The correct answer is:
At the end of the accounting year, ______are to be passed for outstanding/prepaid expenses, accrued income/income received in advance etc.
Which of the following is/are the essential features of accrual basis of accounting?
Non-monetary events like, death, dispute, sentiments, efficiency etc. are _______ in the books, even though these may have a great effect.
In accrual system of accounting ______________________.
Which of the following is a formal written promise to pay a definite sum of money on demand or at a fixed or determinable future date?
The total amount column of the purchases return book is _______________.
______ is an intagible real account.
____ period is normally adopted for accounting purpose.
Accounting policies refer to specific accounting ________ and _______ .
Rs. 1,000 being the monthly total of discount allowed to customers was credited to discount account in the ledger. If rectification is done before preparation of trial balance then which of the following is correct?
If an amount paid for servicing vehicles has been posted in error to Motor Vehicles account the journal entry necessary to correct this error should require which of the following _________________.
If the change in accounting policy has a material effect in current period and the effect of change is ascertainable in part _________________.
Mr.Ashok buys clothing of Rs.50,000 paying cash Rs.20,000. What is the amount of expense as per the accrual concept?
An entry for the goods sold to Madhav for Rs. 1,020 was posted to his account as Rs. 1,200. If rectification is done before preparation of trial balance then which of the following is correct?
When a change in accounting policy is justified?
All of the following are valuation principles except ___________________.
Companies are regulated by Companies Act, ______.
Match List I with List II and select the correct answer using the codes given below the lists.
List I List II
A. Doctrine of ultra vires 1. Articles of association
B. Doctrine of indoor management 2. Prospectus
C. Doctrine of golden rule 3. Memorandum of association
The most liquid asset among the following is?
Overvaluation of opening stock in financial accounting results _____________.
The current ratio of a company is 2: 1. Which of the following suggestions would improve the ratio?
Globalisation of financial services is being promoted by _____________.
One of the items is not related with e-banking ___________.
The correct sequence of following will be :
1. Policies 2. Objective
3. Programmes 4. Procedures.
In the comparative financial statement, comparison of financial data is done in the form of ___________ .
Cash account normally has _________________.
Which of the following statements is 'True'?
If the Money Discount Rate is 19% and Inflation Rate is 12%, then the Real Discount Rate is __________.
Cash discount terms offered by trade creditors should never be accepted because __________________.
Interest on performing assets should be recognized on ___________ basis.
Income includes ______________.
Which of the following is not followed in capital budgeting?
In lease system, interest is calculated on _________________.
Which one of the following is not an accounting convention?
Double entry system is used in which type of accounting ___________.
The accrual cost is the basis for ____________.
The system of recording transaction based on dual aspect concept is called ________________.
The basis for the accounting equation is the principle of _________.
Mercantile system is followed by __________.
Match the following:
| 1. Artificial persons accounts | a) Firms account, educational institution's accounts, bank account etc. |
|---|---|
| 2. Representative personal accounts | b) Prepaid insurance, outstanding wages etc., |
| 3. Tangible real accounts | c) Building, furniture, cash and machinery etc. |
| 4. Intangible real accounts | d) trademark, goodwill, patents, etc. |
The system of recording based on dual aspect concept is called _______.
The governing principle of double entry system is that _________.
A system in which accounting entries are made on the basis of amounts having become due for payment or receipt is called _______________.
In cash transactions, goods or services are exchanged for ______________.
Under the accrual concept, which one of the following will not be shown as an asset/liability in the balance sheet of an entity?
If the convertibility of the currency is restricted to certain foreign currency transactions, it is termed as _______________.
Consider the following statements:
1. The bonus shares shall not be issued in lieu of dividend,
2. A company may issue fully paid up bonus shares to its members out of its 'Capital Redemption Reserve Account'
3. A company may not issue bonus shares out of its 'Securities Premium Account'
Which of the above statement/s is are not correct?
Double entry system is more accurate because__________.
Name the accounting concept on the basis of which income statement is prepared ______________.
Match the items of the following two lists and indicate the correct answer:
| List - I | List - II |
|---|---|
| (i) Earning ability of firm | (a) Basis of Accounting |
| (ii) Conservation | (b) P/V ratio |
| (iii) Cash profit | (c) Cash flow statement |
| (iv) Cash and Accrual | (d) Prudence |
Break-even analysis helps in __________.
System in which entry is recorded for cash as well as credit transactions is known as _____________.
Expenses/Income are recorded when it is earned irrespective of cash being received/paid as per _____________.
______ is the Accounting method that recognizes the impact of transactions on the financial statements in the time periods when revenue and expenses occurs.
Transactions affecting cash balance only are recorded in the books of accounts.
The accounting system that affects at least two accounts is called __________ .
In a mercantile system of accounting adjustment is required for _______.
______ is the Accounting method that recognizes the impact of transactions on the financial statements in the time periods when cash is disbursed or received.
The system of recording of transactions based on dual aspect is called _________ .
Total sales during the financial year amounted to Rs. 25 lakh out of which Rs. 20 lakh accounted for in the same financial year and remaining in next financial year when the debtors were realized. The firm is following ______ system of Accounting.
Select the correct statement.
In cash transactions goods or services are purchased for certain value to be paid in future.
The double entry system is based on "dual aspect" concept.
A cash receipt may cause ___________.
Purposes of an accounting system are________________________.
No accounting is made for Abnormal Loss in Joint Venture Account.
Cash basis considers the revenue as realised when ____________.
The basis of revenue recognition often used in accounting for hire-purchase transaction is _______________.
The consignment accounting is made on __________ .
Adjustment of accrued/outstanding income/expenses is not necessary in ______ system of accounting.
The act by members of a trade union, persuading others not to work is called as _________ .
X sends out 100 bags to Y costing Rs 1000 each. 60 bags were sold at 10% above cost price. Sale value will be ______________.
Cash cannot be misappropriated by ___________.
State the reasons whether the following statement is true or false:
Accrual concept implies accounting on cash basis.
From the following details calculate net profit on accrual basis.
| Particulars | Rs. |
|---|---|
| Goods sold for cash | $5,00,000$ |
| Credit sales | $25,000$ |
| Cash purchases | $4,00,000$ |
| Credit purchases | $50,000$ |
| Wages paid | $20,000$ |
| Outstanding expenses | $10,000$ |
| Rent paid | $5,000$ |
| Rent outstanding | $2,000$ |
| Depreciation on building | $10,000$ |
| Loss on sales of fixed assets | $1,000$ |
In accrual basis or mercantile basis of accounting, the financial effect of the transaction is recorded in the books ___________.
In cash system of accounting, entries are recorded ____________.
Which of the following has no relevance whether the receipts pertain to previous period or future period?
Which of the following is/are the essential features of accrual basis of accounting?
(I) Revenue is recognized only when cash is received.
(II) Costs are matched against revenues on the basis of relevant time period to determine periodic income.
(III) Costs which are not charged to income are carried forward and are kept under continuous review.
(IV) Receipts or incomes are recorded as and when cash is received or becomes due on the other hand payments are recorded only when cash is actually paid.
The correct answer is _________________.
According to which of the following concepts, revenue is recognised when it is earned rather than when it is collected and recognises when assets or benefits are used rather than they are paid for?
Purpose of ac an accounting system include all the following except _______________________.
______ is incompatible with the matching principle of income determination.
Who among the following defined management as "The accomplishment of results through the efforts of other people"?
The characteristic feature of imprest system is ___________________.
Global depository receipts (GDRs) are issued by successful corporations with a view to attract ___________________.
Accrued income refers to that income which has been _______________.
Materiality in accounting is decided __________________.
Whenever a company wants to alter its Memorandum of Association for changing the place of registered office from one state to another, it has to pass _________________.
It SA/cs is done and by mistake A's account is transferred to Purchase No in such a case which accounts are affected?
Bank balance as per cash book of ABC Enterprises as on 31st March, 2013 is f 1,500. Cheques deposited with bank but not cleared amount to f 100 and cheques issued but not presented for payment amount to f 150. The bank allowed interest amounting to Rs.50 and collected dividend Rs.50 on behalf of ABC Enterprises. Balance as per pass book should be ____________.
Consignee sends to consignor ________________.
No person can act as a managing director of more than ____________.
Social obligation of accounting refers to ________________.
Combination of Printing and Dyeing companies is type of _____________.
The basis for the payment of cash by contractee under contract is __________.
If an allocated indirect cost is 1500 and actual in curred indirect cost is 1500 and actual in curred in direct costis 1200, then this is classified as _____________.
An analysis and estimation method of cost, by classifying cost accounts as fixed or variable with respect for specific output level is considered as ______________.
Under cash basis of accounting, revenue is recognized when _____________.
Consider the following steps:
- Analysis of variances
- Initiating corrective action
- Measurement of actual performance
- Establishment of standards
Greater chance of lower actual return than expected return and greater variation is indicated by _____________________.
What deductions are allowed from the transaction value ____________________.
The relationship between potential unsystematic risk and reward is given by ____________.
Which of the following is an intrastate supply?