Explore topic-wise InterviewSolutions in .

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.

2101.

Briefly explain Intangible Assets

Answer»

Solution :INTANGIBLE Assets are the assets which do not have a PHYSICAL EXISTENCE, i.e., they cannot be SEEN or touched such as Computer SOFTWARE and Goodwill
Discussion
2102.

Briefly explain Credit Voucher.

Answer»

Solution :Credit VOUCHER is PREPARED when CASH is RECEIVED.
Discussion
2103.

Brieflyexplain Cash Voucher.

Answer»

Solution :CASH Voucher is PREPARED at the TIME of receipt or payment of cash or cheque.
Discussion
2104.

Books of Account are written on the basis of

Answer»

Source DOCUMENT.
ACCOUNTING VOUCHERS.
Both (a) and (B).
NONE of these.

Solution :Accounting Vouchers.
Discussion
2105.

Books maintained by the Single Entry System are not as reliable as they are when maintained following the Double Entry System. Comment.

Answer»

SOLUTION :Double ENTRY System of accounting records both aspects of a transaction. Thus, it provides ACCURATE INFORMATION as to PROFIT, liabilities,
Discussion
2106.

Book Keeping is not a part of accounting. Do you agree with the statement?

Answer»

Solution :No. Book Keeping is a PART of accounting. Twoo processes of accounting, i.e., collecting and RECORDING of financial TRANSACTIONS and EVENTS are the processes of Book Keeping.
Discussion
2107.

Books Account are written on the basis of

Answer»

SOURCE DOCUMENT
Accounting Vouchers
Both (a) and (B)
NONE of these

Solution :Accounting Vouchers
Discussion
2108.

Book-keeping is mainly concerned with :

Answer»

RECORDING of FINANCIAL data
Designing the systems of SUMMARISING the RECORDED data
Interpreting the data for INTERNAL and external users
Preparation of financial statements of the business enterprise

Answer :A
Discussion
2109.

Book Keeping is concerned with

Answer»

recording FINANCIAL data RELATING to BUSINESS transactions.
designing of system recording, classifying, and SUMMARIZING recorded data.
interpreting data for internal and external users
All of the above.

Solution :recording financial data relating to business transactions.
Discussion
2110.

Book Keeping is a systematic record of _______ transactions.

Answer»


SOLUTION :FINANCIAL
Discussion
2111.

Bills Receivable endorsed dishonoured are debited to

Answer»

DEBTORS ACCOUNT.
Bills RECEIVABLE Account.
Creditors Account.
Bank Account.

Solution :Debtors Account.
Discussion
2112.

Bills Receivable Account is

Answer»

an Asset ACCOUNT
an Expense Account
a Liability Accounts
an INCOME Account .

SOLUTION :an Asset Account
Discussion
2113.

Book Keeping and Accounting

Answer»

MEANS same and are used interchangeably.
does not mean same and are not used interchangeably.
means both (a) and (B) .
NONE of the above.

Solution :does not mean same and are not used interchangeably.
Discussion
2114.

Bills Payable honoured during the year will be debited to

Answer»

CASH ACCOUNT.
BILLS PAYABLE Account.
Creditors Account.
None of these.

Solution :Bills Payable Account.
Discussion
2115.

Bill of Exchange is drawn by the drawer and accepted by the drawee.

Answer»


SOLUTION : TRUE
Discussion
2116.

Bills Payable Account is

Answer»

an Asset Account
an Expense Account
a LIABILITY ACCOUNTS
an INCOME Account .

Solution :a Liability Accounts
Discussion
2117.

Bhuvan's Trial Balance has following entries, besides other: Bad Debts Rs. 1,000, Provision for Doubtful Debts Rs. 1,500. Provision for Doubtful Debts of Rs. 2,000 should be at the end of the year. The amount to be debited to the Profit & Loss Account will be

Answer»

RS. 4,500
Rs. 5,000
Rs. 1,500
Rs. 3,500

Answer :C
Discussion
2118.

Bill of exchange is drawn by a debtor .Do you agree?

Answer»

Solution :No Bill of Exchange is DRAWN by the credit (SUPPLIER) and accepted by the DEBTOR (BUYER).
Discussion
2119.

Bill of exchange cannot be endorsed.

Answer»


SOLUTION : FALSE
Discussion
2120.

Berlia Ltd. Purchased a second hand machine for Rs. 56,000 on July 01,2015 and spent Rs. 24, 000 on its repair and installatio and Rs. 5,000 for its carriage. On September 01, 2016, it purchased another machineRs. 2,50,000 and spent Rs. 10,000 on its installation. (a) Depreciation is provided on machinery @10% p.a on original cost method annually on December 31. Prepare machinery account and depreciation account from the year 2015 to 2018. (b) Prepare machinery account and depreciation account from the year 2011 to 2018, if depreciation is provided on machinery @10% p.a. on written down value method annually on December 31.

Answer»

SOLUTION : (a) BALANCE of MACHINE ACCOUNT as on 1.01.19 `Rs.` 2,54,583.
(b)Balance of Machine account as on `01.0119 `Rs.` 2 2,62,448
Discussion
2121.

Basic function of financial accounting is to

Answer»

RECORD all BUSINESS TRANSACTIONS.
interpret FINANCIAL data.
assist the management.
None of these.

Solution :record all business transactions.
Discussion
2122.

Bank Reconciliation statement Jogindeer Sharma works as an accountant in Ragav International . His responsibilities are maintaining and recording the day to day transactions of the firm's and preparing the Bank Reconciliation Statement at the end of the month. The firm's cash book for July 2018 which Joginder has just finished entering and balancing for the month end is shown below.( Note : For the sake of clarity the cash column has beenomitted.) A copy of firm's bank statement from the Axis Bank Ltd. has just been received for July and is also given below. You are required toprepare corrected Cash Book and also Bank Reconciliation Statement as on 31st July, 2018.

Answer»

Solution :Bank Pass Book is reconciled with the Cash Book in following four STEPS.
Step 1: Tick the items in both Cash Book and Bank Statement

Step 2: Update the Cash Book from the Bank Statement
The unticked item on the bank statement indicate items that have gone through the Bank Account but have not yet been recorded n Ragav International Cash Book. These are :
`{:("Receipt","July 02","Refund from Whois. com","₹ 1,403"),("Receipts","July 05","Refund of Unsuccess recharge from ICONNECT"," ₹ 98"),("Payment","July 28","Service Tax Charge","₹ 25"),("Payment","July 28","Other Bank Charges","₹ 200"):}`
Joginder will have to record these transactions in the cash book to bring it up to date. The new entries are shown in Bold type, the previous entries are in normal type.

The balance of he bank Column now stands at ₹ 48,508. This still differs from the bank statement balance of ₹ 36,080.
The numerical DIFFERENCE between the two is :
Bank Statement ₹ 36,080 (Cr.) minus cash book ₹ 48,508 (Dr.)= ₹12,428(Cr.)
This remaining difference is dealt with in theBank Reconciliation Statements.
Step 3: Identify the remaining unticked items from the Cash Book. These are :
`{:("Payments","July 10","Vikash Ltd.","₹1,447",|,"Payments","July 31","Ashutosh & Co.","₹5,000"),("Payments","July 15","Raj Distributors","₹735",|,"Payments","July 31","Orpat Insturment","₹10,000"),("Payments","July 15","City Automation Pvt. Ltd.","₹3,150",|,"Payments","July 31","Perfect Stores","₹15,000"),("Payments","July 15","Vipul Tiwari","₹1,120",|,"Receipts","July 29","Ramesh & Co.","₹40,000"),("Payments","July 10","Sky Venture","₹1,120",|,"Receipts","July 31","Dhingra & Co.","₹10,000"):}`
These items should appear on next month's bank statement as they are because of timing differences. The above transactions are item which will be required to be shown in the Bank Reconciliation Statement.
Step 4: Preparation of the Bank Reconciliation Statement.
Discussion
2123.

Basaria Confectioner bought a cold storage plant on July 01, 2014 for Rs. 1,00,000. Compare the amount of depreciation charged for first three years using: Rate of depreciation @ 10% on original cost basis,

Answer»

Solution :Depreciation for 1 YEAR (2014-15) = `Rs.` 7500 (CHARGED for 9 months)
Discussion
2124.

Basic function of accounting is

Answer»

to RECORD all BUSINESS transactions.
to INTERPRET financial data.
to ASSIST the management in performing functions effectively.
NONE of the above.

Solution :to record all business transactions.
Discussion
2125.

Based on data given in question number 2 record journal entries and prepare Machine account, Depreciation account and Provision for Depreciation account for the first 3 years if provision for depreciation account is maintained by the firm.

Answer»

SOLUTION :
Discussion
2126.

Bank Reconciliation Statement may be prepared at any time of the accouting period.

Answer»


SOLUTION : TRUE
Discussion
2127.

Bank Reconciliation Statement is prepared at the end of the accounting year only.

Answer»


SOLUTION :FALSE
Discussion
2128.

Bank Reconciliation Statement is prepared by the account holder and not by the bank .

Answer»


SOLUTION : TRUE
Discussion
2129.

Bank Reconciliation Statement is prepared by matching

Answer»

entries in Pass BOOK with entries in BANK columns of CASH Book.
entries in Pass Book with entries in bank columns Cash Book.
entries in Pass Book with entries in bank columnsand cash columns of Cash Book.
None of the abvoe

Solution :entries in Pass Book with entries in bank columns of Cash Book.
Discussion
2130.

Bank Reconciliation Statement is prepared so that the difference between the undermentioned balaces can be recociled :

Answer»

DIFFERENCE in thebalance in the bank and the cash balance.
Difference in thebalance in THEPASS Book in THEBEGINNING and atthe end
Difference in thePass Book and Cash Book BALANCES.
None of the above

Solution : Difference in thePass Book and Cash Book balances.
Discussion
2131.

Bank Reconciliation Statement is prepared.

Answer»

to know payments made through CHEQUES.
to know he errors in the PASS BOOK
to compare the Cash Book with Pass Book and ascertain the differences
NONE of the above

Solution :to compare the Cash Book with Pass Book and ascertain the differences
Discussion
2132.

Bank Reconciliation Statement is a part of Cash Book

Answer»


SOLUTION : FALSE
Discussion
2133.

Bank Reconciliation Statement brings out the reasons for difference in the Pass Book and Cash Book balances.

Answer»


SOLUTION : TRUE
Discussion
2134.

Bank Reconciliation Statement is a part of Bank Account .

Answer»


SOLUTION : FALSE
Discussion
2135.

Bank Reconcilation Statement is prepared by

Answer»

CREDITORS.
Debtors.
Bank
ACCOUNT HOLDER

SOLUTION :Account holder
Discussion
2136.

Bank Reconceiliation Statement is

Answer»

a part of DOUBLE ENTRY SYSTEM.
not a part of Double Entry System.
part of BankStatement
NONE of these

Solution : not a part of Double Entry System.
Discussion
2137.

Bank Recnciliation Statement is prepared

Answer»

at the end of each WEEK
at the of each of month
at the end of the ACCOUNTING year.
whenever a bank STATEMENTIS received

Solution :whenever a bank statementis received
Discussion
2138.

Bank overdraft is a Liability while bank balance is anAsset. Do you agree?

Answer»

Solution :YES. Bank overdraft is the AMOUNT payable by the bank since the amount DRAWN is more than the balance held. Bank balance is the amount owned by the firm that is LYING deposited in the bank, thus, it is an asset.
Discussion
2139.

Bank-Overdraft is a _________ liability.

Answer»


SOLUTION :CURRENT
Discussion
2140.

Bank overdraft is

Answer»

short-term LIABILITY
long-term liability
contingent liability
None of these

Solution :short-term liability
Discussion
2141.

Bank overdraft in Cash Book means __________ balance.

Answer»


SOLUTION :CREDIT
Discussion
2142.

Bank Column of Cash Book may have _______ or _________ balance .

Answer»


SOLUTION :DEBIT, CREDIT
Discussion
2143.

Bank column in the Cash Book can have either debit balance or credit balance. Why?

Answer»

SOLUTION :Bank COLUMN in the Cash Book REPRESENTS Bank Account. Bank Account will have a credit BALANCE if it is overdrawn and will OTHERWISE have a debit balance.
Discussion
2144.

Bank charges ₹5,000 debited twice in pass book. What should be done in BRS if overdraft as per cash book is starting point ?

Answer»

₹5,000 MUST be DEDUCTED
₹5,000 must be ADDED
₹10,000 must be deducted
₹10,000 must be added

ANSWER :B
Discussion
2145.

Bank Column in Cash Book may show Credit Balance.

Answer»


SOLUTION : TRUE
Discussion
2146.

Bank balance as per Bank Statement is shown in the Balance Sheet at the end of the year.

Answer»


SOLUTION : FALSE
Discussion
2147.

Bank Balance in Cash Book means _________ balance.

Answer»


SOLUTION :DEBIT
Discussion
2148.

Bank Account may be _________ Account or __________ Account.

Answer»


SOLUTION :ASSET, LIABILITY
Discussion
2149.

Bank Account is a real account .

Answer»


ANSWER :FALSE
Discussion
2150.

Bank account is a

Answer»

PERSONAL ACCOUNT
REAL Account
NOMINAL Account
NONE of these

Solution :Personal Account
Discussion