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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your Class 11 knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
Why 'Dividend EqualisationRerserve' istermedas Reserve and not aprovision ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/dividend-957360" style="font-weight:bold;" target="_blank" title="Click to know more about DIVIDEND">DIVIDEND</a> Equilisation <a href="https://interviewquestions.tuteehub.com/tag/reserve-1186088" style="font-weight:bold;" target="_blank" title="Click to know more about RESERVE">RESERVE</a> is notdebited to Profitand <a href="https://interviewquestions.tuteehub.com/tag/loss-1079380" style="font-weight:bold;" target="_blank" title="Click to know more about LOSS">LOSS</a> Account. Itscreation does notreducethe net profits.It isappropriationof profitand isdebited to Profitand Loss AppropriationAccount.</body></html> | |
| 52. |
Why do only one account is posted to the Ledger from the Cash Book ? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a> Book is both a book of <a href="https://interviewquestions.tuteehub.com/tag/original-1139424" style="font-weight:bold;" target="_blank" title="Click to know more about ORIGINAL">ORIGINAL</a> entry and a Ledger for Cash A/c and <a href="https://interviewquestions.tuteehub.com/tag/bank-13461" style="font-weight:bold;" target="_blank" title="Click to know more about BANK">BANK</a> A/c . <a href="https://interviewquestions.tuteehub.com/tag/hence-484344" style="font-weight:bold;" target="_blank" title="Click to know more about HENCE">HENCE</a>, each transaction in the Cash Book is posted only once to another <a href="https://interviewquestions.tuteehub.com/tag/account-25640" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNT">ACCOUNT</a> in the Ledger .</body></html> | |
| 53. |
Why Cash Book is called a book of original entry ? |
| Answer» <html><body><p></p>Solution :Since all cash <a href="https://interviewquestions.tuteehub.com/tag/transactions-18175" style="font-weight:bold;" target="_blank" title="Click to know more about TRANSACTIONS">TRANSACTIONS</a> are recorded for the first time in the cash book , it is <a href="https://interviewquestions.tuteehub.com/tag/therefore-706901" style="font-weight:bold;" target="_blank" title="Click to know more about THEREFORE">THEREFORE</a> called a book of original <a href="https://interviewquestions.tuteehub.com/tag/entry-972873" style="font-weight:bold;" target="_blank" title="Click to know more about ENTRY">ENTRY</a> . When a cash book is maintained , transactions of Cashand <a href="https://interviewquestions.tuteehub.com/tag/bank-13461" style="font-weight:bold;" target="_blank" title="Click to know more about BANK">BANK</a> are not recorded in journal .</body></html> | |
| 54. |
Why contra entry in two column cash Book is not posted in to ledger? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :When <a href="https://interviewquestions.tuteehub.com/tag/tow-1424125" style="font-weight:bold;" target="_blank" title="Click to know more about TOW">TOW</a> <a href="https://interviewquestions.tuteehub.com/tag/column-922494" style="font-weight:bold;" target="_blank" title="Click to know more about COLUMN">COLUMN</a> cash book is maintained ,cash and bank accouts are not maintained in the ledger.Therefore , such entries are not posted in to ledger.</body></html> | |
| 55. |
Why closing stock is valued at cost price or realisable value whichever is less? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Closing stock is <a href="https://interviewquestions.tuteehub.com/tag/valued-2321544" style="font-weight:bold;" target="_blank" title="Click to know more about VALUED">VALUED</a> at lower of cost <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> ro realisable <a href="https://interviewquestions.tuteehub.com/tag/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a> according to the Convention or prudence.</body></html> | |
| 56. |
Why contra entries in the Cash Book are not posted into Ledger ? |
| Answer» <html><body><p></p>Solution :Contra <a href="https://interviewquestions.tuteehub.com/tag/entries-972860" style="font-weight:bold;" target="_blank" title="Click to know more about ENTRIES">ENTRIES</a> are not posted to <a href="https://interviewquestions.tuteehub.com/tag/ledger-1070861" style="font-weight:bold;" target="_blank" title="Click to know more about LEDGER">LEDGER</a> as their <a href="https://interviewquestions.tuteehub.com/tag/double-441870" style="font-weight:bold;" target="_blank" title="Click to know more about DOUBLE">DOUBLE</a> entry is complete in the <a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a> Book itself . Cash book <a href="https://interviewquestions.tuteehub.com/tag/serves-1202535" style="font-weight:bold;" target="_blank" title="Click to know more about SERVES">SERVES</a> as the Cash Account and Bank Account .</body></html> | |
| 57. |
Why are the rules of debit and credit same for liability and capital ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Rules of debit and credit for liability and <a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> are same because of <a href="https://interviewquestions.tuteehub.com/tag/business-21797" style="font-weight:bold;" target="_blank" title="Click to know more about BUSINESS">BUSINESS</a> Entity Concept . According to the concept , business is a separate and <a href="https://interviewquestions.tuteehub.com/tag/distinct-432063" style="font-weight:bold;" target="_blank" title="Click to know more about DISTINCT">DISTINCT</a> entity from its owner .</body></html> | |
| 58. |
Why balance in GST Accounts is shown in the Balance Sheet ? |
| Answer» <html><body><p></p>Solution :The <a href="https://interviewquestions.tuteehub.com/tag/balance-891682" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCE">BALANCE</a> is GST Accounts means either GST recoverable, if it has a <a href="https://interviewquestions.tuteehub.com/tag/debit-945425" style="font-weight:bold;" target="_blank" title="Click to know more about DEBIT">DEBIT</a> balance or GST Payable, if it has a <a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a> balance. Thus, it is neither revenue nor expense. Therefore, it is <a href="https://interviewquestions.tuteehub.com/tag/shown-1206565" style="font-weight:bold;" target="_blank" title="Click to know more about SHOWN">SHOWN</a> in the Balance <a href="https://interviewquestions.tuteehub.com/tag/sheet-641829" style="font-weight:bold;" target="_blank" title="Click to know more about SHEET">SHEET</a></body></html> | |
| 59. |
Why are therules of debit and credit same for both liability and capital? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Because <a href="https://interviewquestions.tuteehub.com/tag/according-366619" style="font-weight:bold;" target="_blank" title="Click to know more about ACCORDING">ACCORDING</a> to business <a href="https://interviewquestions.tuteehub.com/tag/entity-972730" style="font-weight:bold;" target="_blank" title="Click to know more about ENTITY">ENTITY</a> <a href="https://interviewquestions.tuteehub.com/tag/concept-928138" style="font-weight:bold;" target="_blank" title="Click to know more about CONCEPT">CONCEPT</a> capital is also <a href="https://interviewquestions.tuteehub.com/tag/treated-1426908" style="font-weight:bold;" target="_blank" title="Click to know more about TREATED">TREATED</a> as liability of the business.</body></html> | |
| 60. |
Why assets are classified into current and non-current? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Classification of assets into <a href="https://interviewquestions.tuteehub.com/tag/current-940804" style="font-weight:bold;" target="_blank" title="Click to know more about CURRENT">CURRENT</a> and non-current <a href="https://interviewquestions.tuteehub.com/tag/helps-1018140" style="font-weight:bold;" target="_blank" title="Click to know more about HELPS">HELPS</a> in ascertaining the liquidity position of the business entity. Non-Current Assets are held forcontinued use in the business whereas current assets are expected to be converted into cash within one year.</body></html> | |
| 61. |
Why are Prepaid Expenses segregated from current year's expenses and taken to Balance Sheet as a current asset? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Prepaid Expanses are <a href="https://interviewquestions.tuteehub.com/tag/segregated-7256925" style="font-weight:bold;" target="_blank" title="Click to know more about SEGREGATED">SEGREGATED</a> from current <a href="https://interviewquestions.tuteehub.com/tag/year-1464599" style="font-weight:bold;" target="_blank" title="Click to know more about YEAR">YEAR</a>'s expanses and taken to Balance <a href="https://interviewquestions.tuteehub.com/tag/sheet-641829" style="font-weight:bold;" target="_blank" title="Click to know more about SHEET">SHEET</a> as a current asset because such expenses relate to next year, which have been paid in advance.</body></html> | |
| 62. |
Why are accounting standards required? |
| Answer» <html><body><p></p>Solution :To improve reliability and bring <a href="https://interviewquestions.tuteehub.com/tag/uniformity-1437734" style="font-weight:bold;" target="_blank" title="Click to know more about UNIFORMITY">UNIFORMITY</a> in <a href="https://interviewquestions.tuteehub.com/tag/accounting-637" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTING">ACCOUNTING</a> practices.</body></html> | |
| 63. |
Why a Cash Book always shows a debit balance ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Because a <a href="https://interviewquestions.tuteehub.com/tag/businessman-404233" style="font-weight:bold;" target="_blank" title="Click to know more about BUSINESSMAN">BUSINESSMAN</a> cannot <a href="https://interviewquestions.tuteehub.com/tag/pay-25544" style="font-weight:bold;" target="_blank" title="Click to know more about PAY">PAY</a> more <a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a> than what he has <a href="https://interviewquestions.tuteehub.com/tag/got-23540" style="font-weight:bold;" target="_blank" title="Click to know more about GOT">GOT</a>.</body></html> | |
| 64. |
Who is a Debtor ? |
| Answer» <html><body><p></p>Solution :Debtor is a <a href="https://interviewquestions.tuteehub.com/tag/person-25481" style="font-weight:bold;" target="_blank" title="Click to know more about PERSON">PERSON</a> who <a href="https://interviewquestions.tuteehub.com/tag/owes-7703111" style="font-weight:bold;" target="_blank" title="Click to know more about OWES">OWES</a> amount to the business on account of <a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a> sales of goods and/or services in the normal <a href="https://interviewquestions.tuteehub.com/tag/course-937885" style="font-weight:bold;" target="_blank" title="Click to know more about COURSE">COURSE</a> of business.</body></html> | |
| 65. |
Who is a Creditor ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Creditor is the person to whom an amount is owed on account of credit purchases of <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> and/or <a href="https://interviewquestions.tuteehub.com/tag/services-1202745" style="font-weight:bold;" target="_blank" title="Click to know more about SERVICES">SERVICES</a> in the normal <a href="https://interviewquestions.tuteehub.com/tag/course-937885" style="font-weight:bold;" target="_blank" title="Click to know more about COURSE">COURSE</a> of business</body></html> | |
| 66. |
Who are the internal users of accounting information? |
| Answer» <html><body><p></p>Solution :Internal users are the person who are directly <a href="https://interviewquestions.tuteehub.com/tag/involved-7257329" style="font-weight:bold;" target="_blank" title="Click to know more about INVOLVED">INVOLVED</a> in managing and operating the business enterprise such as <a href="https://interviewquestions.tuteehub.com/tag/directors-440324" style="font-weight:bold;" target="_blank" title="Click to know more about DIRECTORS">DIRECTORS</a> or the partners, <a href="https://interviewquestions.tuteehub.com/tag/managers-25470" style="font-weight:bold;" target="_blank" title="Click to know more about MANAGERS">MANAGERS</a> and <a href="https://interviewquestions.tuteehub.com/tag/officers-1129122" style="font-weight:bold;" target="_blank" title="Click to know more about OFFICERS">OFFICERS</a>.</body></html> | |
| 67. |
While starting with Pass Book overdraft bank interst credited in the Pass Book is to be written in minus column. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a></body></html> | |
| 68. |
While preparing the accounts of company, following issues are faced:(i) ProductionManager is interested in rccording good industrial relations in the accounts.(ii) Long - term succes of the company is doubtful due to market competition. (iii) Although sales have not yet taken place , few reliable customers of the company have placed large orders from which huge profit is expected.(iv)One of the shareholders of the company has invested his savings in shares of another company. (v) At the end of the accounting period , factory of the company is outstanding for Rs.10 ,000.(vi) At present , market price of the fixed assets of the company is very high as compared to the bookvalue and directors are intersted to show the fixed assets in accounts attheir currennt market price.(vii) During the year , the company purchased pencils of Rs.50 . These had all been issued from stock and were srill in use at the end of the year.(viii)Directors are interested to adopt Written Down Value (WDV) Method of charging depreciation in place of Straight Line Method (SLM) in the current accounting period to show higher profit. (ix)A debtor who owesan amount to the company is likely to be declared insolvent. You are required to (a) state which accounting concept you would following in dealing with eachof the above problems and (b) Explain briefly what each concept means. |
| Answer» <html><body><p></p>Solution :(i) Money Measurement Concept : Transactions and events that can be measured in money or in money orin money terms are recorded in the books of account . Since , <a href="https://interviewquestions.tuteehub.com/tag/good-1009017" style="font-weight:bold;" target="_blank" title="Click to know more about GOOD">GOOD</a> <a href="https://interviewquestions.tuteehub.com/tag/industrial-515446" style="font-weight:bold;" target="_blank" title="Click to know more about INDUSTRIAL">INDUSTRIAL</a> relations cannot be measured in money terms , they will not be reflected in the accounts.<br/> (ii)Going Concept : The business will continue for an indefinite period and there is no intention to close the business or downsize its operations significantly . The doubt of success does not lead to the inference that business will not continue for indefinite period and also to the intention that the business will be downsized significantly.<br/>(iii) Realisation Consept : Revenue is recognised when sale has been made or service has been rendered . Therefore , the revenue will be recognised when sale has been affected and not when not when the order is placed.<br/>(iv) Business Entity Concept : Business is treated as a separate and distinct entity from its owners . The investment in another company ' s shares is by a shareholder who is distinct from the business .<br/>(<a href="https://interviewquestions.tuteehub.com/tag/v-722631" style="font-weight:bold;" target="_blank" title="Click to know more about V">V</a>) Accrual Concept : This concept recognises revenues andexpenses as they are earned or incurred respectively ignoring the date of receipt or payment . Since, the factory rent of the company is outstanding , it will be recorded in the books of account.<br/>(vi)Historical Cost Concept : According to the Historical Cost Concept , the asset must be shown at cost price , which is the cost of acquisition less depreciation .As a good accounting practice, they should be continued to be shown at cost.<br/>(vii)Materiality Concept : An item is recorded in the books of account on the basis of materially. Purchased <a href="https://interviewquestions.tuteehub.com/tag/stationary-633001" style="font-weight:bold;" target="_blank" title="Click to know more about STATIONARY">STATIONARY</a> (pencil) is in use but , the amount and nature is not material . Therefore, it is debited to Stationery Account.<br/>(viii)Consistency Assumption or Concept : All accounting principles and methods shoulds be applied in a similar way from one period to the next so that data reportedin financial statement can be compared for one period with that of another period . Method may be changed by the but company but it should be disclosed along with its impact on profit or loss.<br/>(ix) <a href="https://interviewquestions.tuteehub.com/tag/conservatism-424801" style="font-weight:bold;" target="_blank" title="Click to know more about CONSERVATISM">CONSERVATISM</a> Convention or Concept : The concept is stated as " Anticipate no profit , but provide for all possible losses ". Thus , provision for doubtful debts should be made against the amount of debtors.</body></html> | |
| 69. |
While preparing Bank Reconciliation Statement from the debit balance of the Pass Book indicate whether the following items will be witten in Plus of Minus Column. (I) Insrurance preminum paid by the bank. II. Interset and dividend collwcted by the bank. III. Payment of 'Bills Payable' by the bank on behalf of the customer. IV. Interest allowed by the bank. V. Cheques deposited into the bank but not yet cleared. |
| Answer» <html><body><p><br/></p>Answer :[Items No. (II) and (IV) will be <a href="https://interviewquestions.tuteehub.com/tag/written-732709" style="font-weight:bold;" target="_blank" title="Click to know more about WRITTEN">WRITTEN</a> in <a href="https://interviewquestions.tuteehub.com/tag/minus-1098111" style="font-weight:bold;" target="_blank" title="Click to know more about MINUS">MINUS</a> Clumn and Item No. (I) (<a href="https://interviewquestions.tuteehub.com/tag/iii-497983" style="font-weight:bold;" target="_blank" title="Click to know more about III">III</a>) and (V) will be written in Plus <a href="https://interviewquestions.tuteehub.com/tag/column-922494" style="font-weight:bold;" target="_blank" title="Click to know more about COLUMN">COLUMN</a>.]</body></html> | |
| 70. |
While preparing Cash A/c of the Current Year, the balance of the previous year is shown as 'To Balance b/d'. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a></body></html> | |
| 71. |
While preparing Capital A/c of the Current Year, the balance of the previous year is shown as 'By Balance b/d'. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a></body></html> | |
| 72. |
While preparing Bank Reconciliation Statement from the debit balance of the Pass Book indicate whether the following items will be witten in Plus of Minus Column. (I) Cheques issued but not yet presented for payment. II. Cheques paid into the bank not yet cleared. III. Dividend collected by the bank on customer's incestments. IV. Payment of club fee by the bank according to the standing instructions. V. Direct payment into the bank by a customer. VI. Any wrong entry on the debit side of the Pass Book. VII. Disonour of the cheques deposited into the bank. |
| Answer» <html><body><p><br/></p>Answer :[I. <a href="https://interviewquestions.tuteehub.com/tag/plus-591752" style="font-weight:bold;" target="_blank" title="Click to know more about PLUS">PLUS</a> <br/> II. Minus <br/> III. Plus <br/> IV. Minus <br/> <a href="https://interviewquestions.tuteehub.com/tag/v-722631" style="font-weight:bold;" target="_blank" title="Click to know more about V">V</a>. Plus <br/> <a href="https://interviewquestions.tuteehub.com/tag/vi-723586" style="font-weight:bold;" target="_blank" title="Click to know more about VI">VI</a>. Minus<br/> VII. Minus.]</body></html> | |
| 73. |
While posting in personal accounts from the purchases book, posting is done : |
| Answer» <html><body><p>on <a href="https://interviewquestions.tuteehub.com/tag/debit-945425" style="font-weight:bold;" target="_blank" title="Click to know more about DEBIT">DEBIT</a> side<br/>On <a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a> side<br/>On Debit or Credit side<br/>None of the above</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a></body></html> | |
| 74. |
While calculating operating profit, the following are not taken into account. |
| Answer» <html><body><p>Normal transactions<br/>Abnormal items<br/>Expenses of a <a href="https://interviewquestions.tuteehub.com/tag/purely-2962981" style="font-weight:bold;" target="_blank" title="Click to know more about PURELY">PURELY</a> <a href="https://interviewquestions.tuteehub.com/tag/financial-988642" style="font-weight:bold;" target="_blank" title="Click to know more about FINANCIAL">FINANCIAL</a> <a href="https://interviewquestions.tuteehub.com/tag/nature-1112013" style="font-weight:bold;" target="_blank" title="Click to know more about NATURE">NATURE</a><br/>(<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>) & (iii)</p></body></html> | |
| 75. |
Which value is most important for good accounting ? |
| Answer» <html><body><p></p>Solution :A good accounting is the <a href="https://interviewquestions.tuteehub.com/tag/one-585732" style="font-weight:bold;" target="_blank" title="Click to know more about ONE">ONE</a> who is honest and shrewd. He must ensure that all transactions are <a href="https://interviewquestions.tuteehub.com/tag/recorded-2240050" style="font-weight:bold;" target="_blank" title="Click to know more about RECORDED">RECORDED</a> in the books of accounts and there should be no hiding of facts. Sometimes, pressure <a href="https://interviewquestions.tuteehub.com/tag/may-557248" style="font-weight:bold;" target="_blank" title="Click to know more about MAY">MAY</a> be put on him to hide certain facts in accounts to evade tax or any other purpose. But he should <a href="https://interviewquestions.tuteehub.com/tag/behave-894568" style="font-weight:bold;" target="_blank" title="Click to know more about BEHAVE">BEHAVE</a> in a honest and shrewd <a href="https://interviewquestions.tuteehub.com/tag/manner-1086162" style="font-weight:bold;" target="_blank" title="Click to know more about MANNER">MANNER</a>.</body></html> | |
| 76. |
Which transactions will : I. Decrease the Assets andDecrease the Capital. II. Increase the Assets andIncrease the Liabilities. III. Increase the Assets andDecrease another Asset. IV. Decrease the Assets andDecrease the Liabilities. |
| Answer» <html><body><p></p>Solution :(I) Drawings or <a href="https://interviewquestions.tuteehub.com/tag/expenses-980258" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENSES">EXPENSES</a>, (II) Purchase ofan <a href="https://interviewquestions.tuteehub.com/tag/asset-885901" style="font-weight:bold;" target="_blank" title="Click to know more about ASSET">ASSET</a> on Credit, (III) Purchase or Sale of an asset in <a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a>, (IV) <a href="https://interviewquestions.tuteehub.com/tag/payment-1149239" style="font-weight:bold;" target="_blank" title="Click to know more about PAYMENT">PAYMENT</a> of a liability.]</body></html> | |
| 77. |
Which type of accounting information shows profit earned or loss incurred? |
| Answer» <html><body><p></p>Solution :Profit and <a href="https://interviewquestions.tuteehub.com/tag/loss-1079380" style="font-weight:bold;" target="_blank" title="Click to know more about LOSS">LOSS</a> <a href="https://interviewquestions.tuteehub.com/tag/account-25640" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNT">ACCOUNT</a> (in <a href="https://interviewquestions.tuteehub.com/tag/case-910082" style="font-weight:bold;" target="_blank" title="Click to know more about CASE">CASE</a> of firms) and <a href="https://interviewquestions.tuteehub.com/tag/statement-16478" style="font-weight:bold;" target="_blank" title="Click to know more about STATEMENT">STATEMENT</a> of Profit and Loss (in case of Companies) shows profit earnedor loss incurred during the accounting period.</body></html> | |
| 78. |
Which type of expenses are shown in Trading Account ? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/direct-954477" style="font-weight:bold;" target="_blank" title="Click to know more about DIRECT">DIRECT</a> <a href="https://interviewquestions.tuteehub.com/tag/expenses-980258" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENSES">EXPENSES</a><br/><a href="https://interviewquestions.tuteehub.com/tag/indirect-514760" style="font-weight:bold;" target="_blank" title="Click to know more about INDIRECT">INDIRECT</a> Expenses<br/>Opening Expenses<br/>Direct and Indirect Expenses</p>Solution :Direct Expenses</body></html> | |
| 79. |
Which transaction decreases one asset and increaaca another asset? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/amount-374803" style="font-weight:bold;" target="_blank" title="Click to know more about AMOUNT">AMOUNT</a> <a href="https://interviewquestions.tuteehub.com/tag/received-1179289" style="font-weight:bold;" target="_blank" title="Click to know more about RECEIVED">RECEIVED</a> from a <a href="https://interviewquestions.tuteehub.com/tag/debtor-945512" style="font-weight:bold;" target="_blank" title="Click to know more about DEBTOR">DEBTOR</a>.</body></html> | |
| 80. |
Which statement shows financial position of the business ? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/trading-1424689" style="font-weight:bold;" target="_blank" title="Click to know more about TRADING">TRADING</a> Account<br/>Profit and <a href="https://interviewquestions.tuteehub.com/tag/loss-1079380" style="font-weight:bold;" target="_blank" title="Click to know more about LOSS">LOSS</a> Account<br/><a href="https://interviewquestions.tuteehub.com/tag/balance-891682" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCE">BALANCE</a> <a href="https://interviewquestions.tuteehub.com/tag/sheet-641829" style="font-weight:bold;" target="_blank" title="Click to know more about SHEET">SHEET</a><br/>Trial Balance</p>Solution :Balance Sheet</body></html> | |
| 81. |
Which qualitative characteristics of accounting information requires the use of common unit and common format of reporting ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Camparability</body></html> | |
| 82. |
Which qualitative characteristic of accounting information is reflected when accounting information is clearly presented? |
| Answer» <html><body><p>Reliability<br/>Relevance<br/>Comparability<br/><a href="https://interviewquestions.tuteehub.com/tag/understandability-2316965" style="font-weight:bold;" target="_blank" title="Click to know more about UNDERSTANDABILITY">UNDERSTANDABILITY</a></p>Solution :Understandability</body></html> | |
| 83. |
Which principle states that the financial statements should disclose all significant informations? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/convention-933064" style="font-weight:bold;" target="_blank" title="Click to know more about CONVENTION">CONVENTION</a> of <a href="https://interviewquestions.tuteehub.com/tag/full-1001178" style="font-weight:bold;" target="_blank" title="Click to know more about FULL">FULL</a> <a href="https://interviewquestions.tuteehub.com/tag/disclosure-955394" style="font-weight:bold;" target="_blank" title="Click to know more about DISCLOSURE">DISCLOSURE</a>.</body></html> | |
| 84. |
Which out of the following are (a) Capital Expenditure, (b) Revenue Expenditure and (c) Deferred Revenue Expenditure ? (i) Rs 1,200 spent on the repairs of machines (ii) Rs 2,500 spent on the overhaul of machines purchased second -hand (iii) Whitewash expenses. (iv) Paper purchased for use as stationery (v) Advertising campaign to launch a new product. (vi) Renovation of a cinema hall. (vii) Brokerage paid in connection with purchase of land (viii) Expenses incurred to get the manager's office air-conditioned (ix) Loss on investments (x) Expenses to move the stock of goods from one place to another |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :Capital Expenditure - (ii); (<a href="https://interviewquestions.tuteehub.com/tag/vii-723638" style="font-weight:bold;" target="_blank" title="Click to know more about VII">VII</a>); (viii); <a href="https://interviewquestions.tuteehub.com/tag/revenue-1188040" style="font-weight:bold;" target="_blank" title="Click to know more about REVENUE">REVENUE</a> Expenditure- (i); (<a href="https://interviewquestions.tuteehub.com/tag/iii-497983" style="font-weight:bold;" target="_blank" title="Click to know more about III">III</a>); (iv); (ix); (x) and Deferred Revenue Expenditure - (v) ; (vi)</body></html> | |
| 85. |
Which one is the advantage of accounting ? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/replacement-1185217" style="font-weight:bold;" target="_blank" title="Click to know more about REPLACEMENT">REPLACEMENT</a> of <a href="https://interviewquestions.tuteehub.com/tag/memory-11894" style="font-weight:bold;" target="_blank" title="Click to know more about MEMORY">MEMORY</a><br/>Shows the present value of the business<br/>Accounting does not record price <a href="https://interviewquestions.tuteehub.com/tag/level-1072714" style="font-weight:bold;" target="_blank" title="Click to know more about LEVEL">LEVEL</a> changes<br/>Accounting is not <a href="https://interviewquestions.tuteehub.com/tag/fully-2663010" style="font-weight:bold;" target="_blank" title="Click to know more about FULLY">FULLY</a> exact</p>Solution :Replacement of memory</body></html> | |
| 86. |
Which of these errors would be disclosed by the Trial Balance and why: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/cheque-915097" style="font-weight:bold;" target="_blank" title="Click to know more about CHEQUE">CHEQUE</a> of Rs. 9,500 from Vikas entered in Vikas's Account as Rs. 5,900, <br/>Selling <a href="https://interviewquestions.tuteehub.com/tag/expenses-980258" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENSES">EXPENSES</a> have been debited to Sales Account, <br/>Credit sales of Rs. 3,000 entered in both the <a href="https://interviewquestions.tuteehub.com/tag/accounts-14064" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTS">ACCOUNTS</a> as Rs. 300, <br/>A purchase of Rs. 2,500 was omitted <a href="https://interviewquestions.tuteehub.com/tag/entirely-2614676" style="font-weight:bold;" target="_blank" title="Click to know more about ENTIRELY">ENTIRELY</a> from the books?<br/></p>Solution :(i) Because wrong amount has been entered although in the correct account.</body></html> | |
| 87. |
Which of these is not a fundamental accounting assumption? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/going-1008806" style="font-weight:bold;" target="_blank" title="Click to know more about GOING">GOING</a> concern Concept <br/><a href="https://interviewquestions.tuteehub.com/tag/consistency-930013" style="font-weight:bold;" target="_blank" title="Click to know more about CONSISTENCY">CONSISTENCY</a> <br/>Accural <br/><a href="https://interviewquestions.tuteehub.com/tag/materiality-1089371" style="font-weight:bold;" target="_blank" title="Click to know more about MATERIALITY">MATERIALITY</a> </p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :D</body></html> | |
| 88. |
Which of these accounts has debit balance? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> <a href="https://interviewquestions.tuteehub.com/tag/received-1179289" style="font-weight:bold;" target="_blank" title="Click to know more about RECEIVED">RECEIVED</a> in advance<br/>Bank loan<br/>Prepaid <a href="https://interviewquestions.tuteehub.com/tag/insurance-22907" style="font-weight:bold;" target="_blank" title="Click to know more about INSURANCE">INSURANCE</a> premium<br/>Creditors for goods</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 89. |
Which of the following will not required adjustment in the Cash Book balance ? |
| Answer» <html><body><p>Error in <a href="https://interviewquestions.tuteehub.com/tag/pass-1148402" style="font-weight:bold;" target="_blank" title="Click to know more about PASS">PASS</a> <a href="https://interviewquestions.tuteehub.com/tag/book-900767" style="font-weight:bold;" target="_blank" title="Click to know more about BOOK">BOOK</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/cheque-915097" style="font-weight:bold;" target="_blank" title="Click to know more about CHEQUE">CHEQUE</a> issued but not presented for payment <br/>Cheque deposited but not cleared <br/>All of the above.</p>Solution :Error in Pass Book</body></html> | |
| 90. |
Which of the following will not be recorded in the books of account? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/sales-25569" style="font-weight:bold;" target="_blank" title="Click to know more about SALES">SALES</a> of goods<br/>Payment of salary<br/><a href="https://interviewquestions.tuteehub.com/tag/quality-17732" style="font-weight:bold;" target="_blank" title="Click to know more about QUALITY">QUALITY</a> of <a href="https://interviewquestions.tuteehub.com/tag/staff-1223732" style="font-weight:bold;" target="_blank" title="Click to know more about STAFF">STAFF</a><br/>Purchase of Goods</p>Solution :Quality of staff</body></html> | |
| 91. |
Which of the following will not be recorded in the books of account ? |
| Answer» <html><body><p>Purchased a <a href="https://interviewquestions.tuteehub.com/tag/led-536896" style="font-weight:bold;" target="_blank" title="Click to know more about LED">LED</a> <a href="https://interviewquestions.tuteehub.com/tag/tv-662255" style="font-weight:bold;" target="_blank" title="Click to know more about TV">TV</a> for <a href="https://interviewquestions.tuteehub.com/tag/personal-590834" style="font-weight:bold;" target="_blank" title="Click to know more about PERSONAL">PERSONAL</a> use, <a href="https://interviewquestions.tuteehub.com/tag/amount-374803" style="font-weight:bold;" target="_blank" title="Click to know more about AMOUNT">AMOUNT</a> paid from personal account<br/>Purchased machinery of ₹ 1,00,000<br/>Purchased <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> for ₹ 25,000<br/>Paid Salaries and Wages </p>Solution :Purchased a LED TV for personal use, amount paid from personal account</body></html> | |
| 92. |
Which of the one following is nota long-term liability ? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/creditors-938665" style="font-weight:bold;" target="_blank" title="Click to know more about CREDITORS">CREDITORS</a><br/>term-loan<br/>Debentures<br/>Capital</p>Solution :Creditors</body></html> | |
| 93. |
Which of the following will not be considered while preparing an Ameded Cash Book ? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/cheques-915112" style="font-weight:bold;" target="_blank" title="Click to know more about CHEQUES">CHEQUES</a> issued but not presented for payment<br/>Cheques <a href="https://interviewquestions.tuteehub.com/tag/deposited-948649" style="font-weight:bold;" target="_blank" title="Click to know more about DEPOSITED">DEPOSITED</a> but not credited by <a href="https://interviewquestions.tuteehub.com/tag/bank-13461" style="font-weight:bold;" target="_blank" title="Click to know more about BANK">BANK</a> <br/>Any wrong entry in the <a href="https://interviewquestions.tuteehub.com/tag/pass-1148402" style="font-weight:bold;" target="_blank" title="Click to know more about PASS">PASS</a> Book<br/>All of the above</p>Answer :D</body></html> | |
| 94. |
Which of the following will be treated as drawings : |
| Answer» <html><body><p>Withdrawing money for <a href="https://interviewquestions.tuteehub.com/tag/payment-1149239" style="font-weight:bold;" target="_blank" title="Click to know more about PAYMENT">PAYMENT</a> of <a href="https://interviewquestions.tuteehub.com/tag/salary-1193463" style="font-weight:bold;" target="_blank" title="Click to know more about SALARY">SALARY</a> to employees <br/>Withdrawing money for payment to <a href="https://interviewquestions.tuteehub.com/tag/creditors-938665" style="font-weight:bold;" target="_blank" title="Click to know more about CREDITORS">CREDITORS</a> <br/>Withdrawing from business for <a href="https://interviewquestions.tuteehub.com/tag/private-11896" style="font-weight:bold;" target="_blank" title="Click to know more about PRIVATE">PRIVATE</a> expenses <br/>Withdrawingmoney for purchase of asset </p>Answer :C</body></html> | |
| 95. |
Which of the followingtransactions will not be recorded in the books of account? |
| Answer» <html><body><p>Purchased a <a href="https://interviewquestions.tuteehub.com/tag/lcd-536691" style="font-weight:bold;" target="_blank" title="Click to know more about LCD">LCD</a> for personal use, <a href="https://interviewquestions.tuteehub.com/tag/paying-1149227" style="font-weight:bold;" target="_blank" title="Click to know more about PAYING">PAYING</a> the amount from personal bank account.<br/>Purchased machinery for manufacture.<br/>Purchased machinery for resale.<br/>Paid <a href="https://interviewquestions.tuteehub.com/tag/salaries-1193459" style="font-weight:bold;" target="_blank" title="Click to know more about SALARIES">SALARIES</a> and wages.</p>Solution :Purchased a LCD for personal use, paying the amount from personal bank account.</body></html> | |
| 96. |
Which of the followingwill be recorded as Contra-entry : |
| Answer» <html><body><p>Cashdirectly deposited into bank by a <a href="https://interviewquestions.tuteehub.com/tag/customer-25462" style="font-weight:bold;" target="_blank" title="Click to know more about CUSTOMER">CUSTOMER</a> <br/>Payment made to creditor by <a href="https://interviewquestions.tuteehub.com/tag/cheque-915097" style="font-weight:bold;" target="_blank" title="Click to know more about CHEQUE">CHEQUE</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a> depositd into bank <br/>Cash <a href="https://interviewquestions.tuteehub.com/tag/sales-25569" style="font-weight:bold;" target="_blank" title="Click to know more about SALES">SALES</a> </p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 97. |
Which of the following transactions will result in higher balance in the bankcolumn of Cash Book in comparison to Pass Book ? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/cheques-915112" style="font-weight:bold;" target="_blank" title="Click to know more about CHEQUES">CHEQUES</a> issued but not presented for payment <br/><a href="https://interviewquestions.tuteehub.com/tag/interest-13407" style="font-weight:bold;" target="_blank" title="Click to know more about INTEREST">INTEREST</a> <a href="https://interviewquestions.tuteehub.com/tag/allowed-857944" style="font-weight:bold;" target="_blank" title="Click to know more about ALLOWED">ALLOWED</a> by <a href="https://interviewquestions.tuteehub.com/tag/bank-13461" style="font-weight:bold;" target="_blank" title="Click to know more about BANK">BANK</a> <br/>Bank charges entered <a href="https://interviewquestions.tuteehub.com/tag/twice-714133" style="font-weight:bold;" target="_blank" title="Click to know more about TWICE">TWICE</a> in Cash Book.<br/>Cheques paind into bank for collection but not yet credited </p>Answer :D</body></html> | |
| 98. |
Which of the following transactions are of financial character and will be recorded in the books ? (i) Credit purchase of goods. (ii) Strike by employes. (iii) Goods worth Rs 20,000 taken form the business and given by the proprietor to his friend as gift. (iv) Withdrawing of money by proprietor form business for personal use. (v) Interviewing the candidates for employement. (vi) Sale of household furniture for Rs 10,000. (vii) Payment of school fess of proprietor's son form propritor's personal bank account. (viii) Make promise to send the goods. (ix) Receiving on order to send the goods. (x) Loss of goods by fire. (xi) Value of human resources. |
| Answer» | |
| 99. |
Which of the following transactions is of afinancial character and will be recorded in the business? |
| Answer» <html><body><p>Good taken from the <a href="https://interviewquestions.tuteehub.com/tag/business-21797" style="font-weight:bold;" target="_blank" title="Click to know more about BUSINESS">BUSINESS</a> by the proprietor for her personal <a href="https://interviewquestions.tuteehub.com/tag/use-1441041" style="font-weight:bold;" target="_blank" title="Click to know more about USE">USE</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/interviewing-2745731" style="font-weight:bold;" target="_blank" title="Click to know more about INTERVIEWING">INTERVIEWING</a> the candidates for employment<br/>Sale of houseland furniture for Rs. 5,000<br/>Received an order for sale of goods</p>Answer :A</body></html> | |
| 100. |
Which of the following transactions is not financial character? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/purchase-1172709" style="font-weight:bold;" target="_blank" title="Click to know more about PURCHASE">PURCHASE</a> of <a href="https://interviewquestions.tuteehub.com/tag/asset-885901" style="font-weight:bold;" target="_blank" title="Click to know more about ASSET">ASSET</a> on credit<br/>Purchase of asset for cash<br/>Withdrawing of <a href="https://interviewquestions.tuteehub.com/tag/money-25502" style="font-weight:bold;" target="_blank" title="Click to know more about MONEY">MONEY</a> by <a href="https://interviewquestions.tuteehub.com/tag/proprietor-1170512" style="font-weight:bold;" target="_blank" title="Click to know more about PROPRIETOR">PROPRIETOR</a> from business<br/>Strike by Employees</p>Answer :D</body></html> | |