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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 451. |
What are the demerits of Straight Line Method? (Any two) |
| Answer» Solution :Demerits of STRAIGHT Line Method are:(i) Interest element on capital is ignored. (ii) REPAIR and MAINTENANCE cost which is likely to be more in later years is not CONSIDERED. | |
| 452. |
whatare theadvantages of readymadesoftware? (Two points) |
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| 453. |
whataretheAdvantagesofcomputerisedAccounting? |
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| 454. |
What are the classification of errors? |
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Answer» Solution :(i) Errors of Omission (ii) Errors of COMMISION (III) Errors of PRINCIPLE (IV) COMPENSATING Errors. |
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| 455. |
whataretheadvantagesof computerisedAccounting ? |
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| 456. |
What are the advantages of Cash Basis of Accounting ? (Two points) |
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Answer» Solution :ADVANTAGES of CASH BASIS of Accounting are : (i) It is a simple system as adjustments are not REQUIRED. (ii) It is more objective as very few estimates and judgments are MADE. |
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| 457. |
What are the advantages of allowing Trade Discount? (Two points) |
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Answer» Solution :Advantages of Trade DISCOUNT are: (i) It improves SALES as PURCHASER is encouraged to buy large QUANTITY. (ii) It REDUCES purchase cost for purchaser and thus, improves profit margin. |
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| 458. |
What are theadvantages of allowing Cash Discount? (Two points) |
| Answer» Solution :Two advantages of CASH Discount are:(i) SELLER gets the due AMOUNT WITHIN the due date. Thus, his liquidity REMAINS good.(ii) purchaser gets Cash Discount thus, it increases theprofits. | |
| 459. |
What are the advantages of Accrual Basis of Accounting?(Two Points) |
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Answer» Solution :Advantages of ACCRUAL Basis of Accounting are : (i) It gives a true and fair view of profit or LOSS and the financial position . (II) It shows complete picture of financial TRANSACTIONS as it accounts prepaid and outstanding expenses, earned and unearned incomes, assets and liabilities. |
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| 460. |
What are the advantages of Accounting? (Any Two) |
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Answer» SOLUTION :TWO advantages of Accounting are: (i) Financial performance and position is known, and (ii) ASSIST management in making business PLANS, take decisions and exercisecontrol. |
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| 461. |
whatare theadvantages of aComputer systemoverthemanual system ? |
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| 462. |
What are source documents of accountancy? |
| Answer» Solution :Source documents are the first RECORD about the DETAILS of a business TRANSACTION. Such documents report the date, the amount, PARTIES involved and the nature of the transaction. ENTRIES in the books are always made from the source documents. | |
| 463. |
What are Representative Personal Accounts? Give one example. |
| Answer» Solution :When an account represents a PARTICULAR person or GROUP of PERSONS, it is termed as a REPRESENTATIVE personal account. For EXAMPLE, Outstanding Rent Account. | |
| 464. |
What are Real Accounts? |
| Answer» Solution :The accounts of all those things whose VALUE can be measured in TERMS of MONEY and which are the properties of the business are TERMED as Real Accounts such as CASH Account, Furniture Account etc. | |
| 465. |
What are Natural Personal Accounts? Give on example. |
| Answer» SOLUTION :Accounts of NATURAL Persons means the accounts of human beings. For EXAMPLE, Mohans ACCOUNT. | |
| 466. |
What are Nominal Accounts? |
| Answer» Solution :These are the ACCOUNTS which are in NAME only and which do not REALLY exist such as the accounts of all expenses and INCOMES. | |
| 467. |
What are Personal Accounts? |
| Answer» SOLUTION :The accounts which relate to an INDIVIDUAL, firm, company or an INSTITUTION are called PERSONAL accounts. | |
| 469. |
What are Liabilities ? |
| Answer» Solution :It REFERS to the amount which the FIRM OWES to OUTSIDERS (expecting theamount OWED to proprietors). | |
| 470. |
What are Internal Liabilities? |
| Answer» Solution :All amounts which a BUSINESS entity has to PAY to the proprietor or OWNERS are internal LIABILITIES such as capital andaccumulated profits. | |
| 471. |
What are financial statements? What information do they provide. |
| Answer» SOLUTION :N/a | |
| 472. |
What are Fixed Assets ? |
| Answer» SOLUTION :Fixed Assets are the assets which are ACQUIRED not with a PURPOSE to resell but with a purpose to increase the EARNING capacity of the BUSINESS | |
| 473. |
What are Fictitious Assets? |
| Answer» Solution :These are the Assets which cannot be realised in Cash or no further benefit can be derived from these assets. Such assets include Debit balance of P & L A/c andthe EXPENDITURE not yetwritten off such as Advertisement EXPENSES ETC. | |
| 474. |
What are error of principle ? |
| Answer» Solution :When some FUNDAMENTAL PRINCIPLE of acountancy is violated while recording a transaction, the error is termed as error of principle. These error are committed in those cases where a PROPER distinction between capital and REVENUE items is not made, i.e., a capital expenditure is treated as a revenue expenditure or vice-versa. | |
| 475. |
What are error of Commission. |
| Answer» Solution :If a WRONG amount is entered either in the journal or in the subsidiary BOOKS it is called error of commission. Trial BALANCE will tally bacause the same amount (THOUGH wrong) will be posted in both the ACCOUNTS affected by the transaction. | |
| 476. |
What are error of Omission ? |
| Answer» Solution :If a transaction remain altogether unrecorded EITHER in the journal or in Subsidiary Books, it will be termed as an error of omission, Such an error will not EFFECT the AGREEMENT of a Trial Balance, as NEITHER the transaction has been entered on the debit SIDE of an account nor on the credit side of any other account. | |
| 477. |
What are Drawings? |
| Answer» SOLUTION :Drawings refer to any Cash or VALUE of GOODS withdrawn by THEOWNER for personal USE. | |
| 478. |
What are Direct Expenses? |
| Answer» Solution :Direct Expenses are those expenses which are incurred on purchases of goods up the POINT of BRINGING them to the place of business. In the CASE of manufacturing business, they are the expenses incurred to make them ready for SALE | |
| 479. |
What are Current Liabilities? |
| Answer» Solution :Current liabilities refer to those liabilities which are to be paid in NEAR FUTURE (normally within one YEAR). | |
| 480. |
What are Current Assets? |
| Answer» SOLUTION :Current Assets INCLUDE Cash and other assets which are expected to be converted into Cash within a short PERIOD (normally within ONE YEAR). | |
| 481. |
What are Contra Entries ? Why these are not posted into the Ledger ? |
| Answer» SOLUTION :Contra entries means entrieswhich are RECORDED on both sides of the cash BOOK . These entries are MADE with depositing or withdrawing cash from the BANK . | |
| 482. |
What are closing entries? Give four examples of closing entries. |
| Answer» SOLUTION :N/a | |
| 483. |
What are Assets? |
| Answer» Solution :Assets are VALUABLE resources OWNED by a BUSINESS enterprise which can bemeasured in TERMS of money. | |
| 484. |
What are Assets ? |
| Answer» SOLUTION :Asset is a property (land, MACHINE, goods, premises, etc) or legal rights (patents, copyrights, etc). Owned by an INDIVIDUAL or business which can be measured in MONEY terms | |
| 485. |
What are Artificial Personal Accounts ? Give one example. |
| Answer» Solution :These accounts do not have physical existence as human BEINGS but they WORK as perosonal accounts. For EXAMPLE, any Firms account. | |
| 486. |
What are adjusting entries? Why are they necessary for preparing final accounts? |
| Answer» SOLUTION :N/a | |
| 487. |
What are Accounting Standards? |
| Answer» Solution :These are WRITTEN STATEMENTS specifying uniform rules and practices for PREPARING the financial statements. | |
| 488. |
What adjusting entries would you record for the following : (a) Depreciation (b) Discount on debtors (c) Interest on capital (d) Manager’s commission |
| Answer» SOLUTION :N/a | |
| 489. |
Welprint Ltd. has given you the following information: Calculate cash flow from Investing Activities on the basis of the above information. |
Answer» SOLUTION : 
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| 490. |
Whar are Compensating Errors? |
| Answer» Solution :If the effect of one ERROR is NEUTRALISED by the effect of some other error, such error are CALLED compensating ERRORS. | |
| 491. |
Wages paid to X will be posted to ……….account on the …………………side. (X, Wages, Debit, Credit) |
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Answer» |
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| 493. |
Wages paid for installation of machine is added to the cost of machine because of ________ |
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Answer» |
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| 494. |
Wages paid for installation of machine in added to the cost of machine because of |
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Answer» ACCRUAL Concept |
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| 495. |
Wages paid to a worker for making additions to machinery amounting to Rs. 5,000 were debited to the Wages Account. Identify the type of error. |
| Answer» SOLUTION :ERROR of PRINCIPLE. | |
| 496. |
Wages and Salaries Account in shown in |
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Answer» TRADING Account |
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| 497. |
Wages and Salaries Account is shown in |
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Answer» Trading ACCOUNT |
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| 498. |
Voucher is prepared from: |
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Answer» DOCUMENTARY EVIDENCE |
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| 499. |
Voucher is prepared for: |
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Answer» CASH RECEIVED and PAID |
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| 500. |
Voucher is prepared for |
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Answer» CASH and CREDIT PURCHASES. |
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