2427 + Interview Questions in Accounts in Class 11 Page 46 InterviewSolution

2251.	Accrual basis is a more appropriate basis of determining profit as expenses are matched against revenue earned in relation thereto.
Answer» SOLUTION : TRUE

Discussion

2252.	AccrualBasis of Accounting
Answer» does not give a TRUE and FAIR VIEW of PROFIT and FINANCIAL position. gives a true and fair view ofprofit and financial position. may of may not give a true and fair view of profit and financial position. None of the above. Solution :gives a true and fair view ofprofit and financial position.

Discussion

2253.	Accounts from incomplete records is an unscientific method of accounting as it does not follow Dual Aspect Concept.
Answer» SOLUTION : TRUE

Discussion

2254.	Accrual basis of acccounting is more reliable than ________ of accounting.
Answer» ANSWER :CASH BASIS

Discussion

2255.	Accounting Standards have been evolved to improve thr relability and credibility of Financial Statements . Accounting Standards provide the solution in case of conflicts among various groups' In the light of this statement, enumerate the objectives of Accounting Standards.
Answer» Solution :Objectives of Accounting STANDARDS are: (i) Minimise the diverse accounting policies and practices with the aim to ELIMINATE them to the extent POSSIBLE. (ii) Promote better understanding of financial statements. (iii) Understand SIGNIFICANT Accounting Policies ADOPTED and applied. (iv) Facilitating meaningful comparison of financial statements of two or more entities. (v) Enhancing reliabilityof financial statements.

Discussion

2256.	Accounting voucher is prepared from source voucher.
Answer» SOLUTION : TRUE

Discussion

2257.	Accounting Voucher is prepared for cash and Credit purchases.
Answer» SOLUTION : TRUE

Discussion

2258.	Accounting voucher is prepared from
Answer» SOURCE VOUCHER. Journal entry. Both (a) and (B). NONE of these. Solution :source voucher.

Discussion

2259.	Accounting Standards are not mandatory in nature.
Answer» SOLUTION : FALSE

Discussion

2260.	Accounting softwares requires
Answer» READYMADE or off-the-shelf software Tailor-made software Customised software All of these SOLUTION :All of these

Discussion

2261.	Accounting software is used to perform the __________ function.
Answer» SOLUTION :ACCOUNTING

Discussion

2262.	Accounting records transactions and events that can be measured in money terms. It this, in your opinion,a limitation of accounting or an advantage? Give reasons.
Answer» Solution :YES. Accounting records only financial transaction and events. It is an advantage as transactions of DIVERSE nature are RECORDED using a COMMON YARDSTICK, i.e., money. But there are other important transactions and events which many have far-reaching effect on business. They are not recorded because they cannot be measured in money terms. For example, production loss due to labour strike. Thus, it is a limitation to that extent.

Discussion

2263.	Accounting records can be produced as _______ in the court of law.
Answer» SOLUTION :EVIDENCE

Discussion

2264.	Accounting Software requires.
Answer» transaction to be entered once. transactions to be entered at each STAGE , i.e, recording and posting into ACCOUNTS. Both (a) and (B) NONE of these Solution :transaction to be entered once.

Discussion

2265.	Accounting records business transactions and events which are of financial nature. Do you consider it a limitation of accounting ?
Answer» SOLUTION :Yes, It is limitaion of accounting because there are EVENTS which have a vital bearing on the PROFITABILITY of the FIRM and such events are IGNORED.

Discussion

2266.	Accounting principles are rules of action or conduct which are adopted by the accountants universally while recording accounting transactions.
Answer» SOLUTION : TRUE

Discussion

2267.	Accounting measures the business transactions in term of _______ units.
Answer» SOLUTION :MONETARY

Discussion

2268.	Accounting is the language of business.
Answer» SOLUTION :YES

Discussion

2269.	Accounting is
Answer» A process CONCERNED with summarising of the recorded TRANSACTIONS. Not the language of business An art of recording, classifying and summarising financial transactions in a SIGNIFICANT MANNER. All of the above. Answer :A::C

Discussion

2270.	Accounting Information System processes the data and transforms it into __________
Answer» SOLUTION :INFORMATION

Discussion

2271.	Accounting information should be verifable and free from personal Bias'. Name the qualitative characteristics of accounting information denoted by this statement.
Answer» SOLUTION :RELIABILITY

Discussion

2272.	"Accounting information should be comparable." Do you agree with this statement? Give two reasons.
Answer» SOLUTION :Yes, accounting INFORMATION should be comparable, because (i) Comparablility is NEEDED to make inter-firm comparisons, i.e. to find out how a form has performed as compared to the other firms, and (ii) Comparability is needed to make inter-period COMPARISON, i.e. to find out how is has performed as compared to the PREVIOUS years.

Discussion

2273.	'AccountingEaquation(A= L+C) always holds good under all eircumstances." Explain with the help of two examples.
Answer»

Discussion

2274.	Accounting does not show the realisable value of business. It is a/an
Answer» LIMITATION of ACCOUNTING. advantage of Accounting. Both (a) and (B). NONE of these. Solution :limitation of Accounting.

Discussion

2275.	Accounting deals with quantifiable information.
Answer» SOLUTION :Yes, ACCOUNTING deals with quantifiable INFORMATION.

Discussion

2276.	Accounting books maintained under single Entry system are not as reliable as under Double Entry system .Do you agree?
Answer» SOLUTION :YES

Discussion

2277.	Accounting aims to communicate financial information to investors only.
Answer» SOLUTION :FALSE

Discussion

2278.	Accounting
Answer» INCLUDES BOOK not INCLUDE Book KEEPING. does not inclued Book Keeping. MAY or may not include Book Keeping. None of these. Solution :includes Book not include Book Keeping.

Discussion

2279.	According to which of the following concepts , in determining the net income from business ,all cost which are applicable to the revenue of theperiod should be charged against that revenue?
Answer» MATCHING CONCEPT Money MEASUREMENT Concept Cost Concept Dual ASPECT Consept Solution :Matching Concept

Discussion

2280.	According to which of the following concepts, in determining the net income, all costs which are applicable to earn the revenue of the period should be charged against that revenue ?
Answer» MATCHING CONCEPT Money MEASUREMENT Concept Cost Concept Dual ASPECT Concept Solution :Matching Concept

Discussion

2281.	Accouding to the Cost Concept
Answer» ASSETS are RECORDED at the value PAID for acquiring them. assets are recorded by estimating the MARKET value at the time of purchase. assets are recorded at lower of cost or market value. None of the above. Solution :assets are recorded at the value paid for acquiring them.

Discussion

2282.	According to which of the followingaccounting concepts, even the proprietor of a business is treated as credotor to the extent of his capital?
Answer» MONEY Measurement Concept Dual ASPECT Concept Cost Concept Business ENTITY Concept Solution :Business Entity Concept

Discussion

2283.	According to which Concept the same accounting methods should be used each year :
Answer» Prudence Full DISCLOSURE MATERIALITY CONSISTENCY ANSWER :D

Discussion

2284.	According to which Concept even the proprietor of the business is treated as a creditor of the business :
Answer» GOING CONCERN CONCEPT Cost Concept Business Entity Concept Accounting Period Concept Answer :C

Discussion

2285.	According to which concept, depreciation is to be charged as per one particular method year after year?
Answer» SOLUTION :CONCEPT of CONSISTENCY.

Discussion

2286.	According to the Realisation Concept, revenue should be accounted only when it is received.
Answer» SOLUTION : FALSE

Discussion

2287.	According to the Money Measuremant Concept
Answer» all TRANSACTION and EVENT which can be estimated in money TERMS are recorded in the books of account. all transactions and EVENTS which can be estimated in money terms are recorded in the books of account. all transactions and events which can bemeasured in money terms are recorded in the books of account. None of the above. Solution :all transactions and events which can bemeasured in money terms are recorded in the books of account.

Discussion

2288.	According to the Going Concept, assets are recorded at realisable value and are depreciated over their estimated useful life.
Answer» SOLUTION : FALSE

Discussion

2289.	According tothe Going Concept
Answer» assets are RECORDED at COST and are depreciated over their useful life. assets are valued at their market value at the year - end are recorded in the books of account . assets are valued at their market value , recorded in the books and DEPRECIATION is charged on the market value. None of the above. Solution :assets are recorded at cost and are depreciated over their useful life.

Discussion

2290.	According to the Cost Concept, assets are recorded at the value paid for acquiring them .
Answer» SOLUTION : TRUE

Discussion

2291.	According to the Cost Concept
Answer» ASSETS are recorded at lower of COST and MARKET value. Assets are recorded by estimating the market value at the time of purchase. Assets are recorded at the value PAID for acquiring it. Assets are not recorded Answer :C

Discussion

2292.	According to the Convention of Consistency, accounting policies and practices onceadopted should be consistently followed.
Answer» SOLUTION : TRUE

Discussion

2293.	According to the Convention of Consistency
Answer» ACCOUNTING POLICIES and practices once adopted should be consistently followed. accounting policies and practices adopted may be changed as PER the management's decision. accounting policies and PRACTIES once adopted cannot be changed under any circumstances. None of the above. Solution :accounting policies and practices once adopted should be consistently followed.

Discussion

2294.	According to the ______ Concept, revenue is considered as being earned on the date on which it is earned.
Answer» SOLUTION :REALISATION

Discussion

2295.	According to Going Concern Concept,a business is viewed as having
Answer» a LIMITED LIFE a very LONG life. an INDEFINITE life. None of these Solution :an indefinite life.

Discussion

2296.	According to the Accrual Concept
Answer» TRANSACTIONS and events are recorded in the BOOKS at the time of their settlement in cash. transaction and events are recordedin the books at the time when they are entered into. transactions and events MAY be recorded either at the time ofthe settlement or when they are entered into. None of the above. Solution :transaction and events are recordedin the books at the time when they are entered into.

Discussion

2297.	According to Principle of Consevatism, closing stock is vlaue at Historical cost or net realisable value ( market value ) whichever is higher.
Answer» SOLUTION : FALSE

Discussion

2298.	According to the Business Entity Concept
Answer» TRANSACTIONS between the BUSINESS and its owners are not recorded. transaction between the businessand its owners are recorded CONSIDERING them to be one single entity. transactions between the business and its owners are recorded from the business POINT of view. None of the above. Solution :transactions between the business and its owners are recorded from the business point of view.

Discussion

2299.	According to Going Concern Concept, a business is viewed as having
Answer» a LIMITED LIFE a very LONG life an INFINITE life None of these. SOLUTION :an infinite life

Discussion

2300.	According to Convention of conservation:
Answer» Provision is MADE for bad and doubtful DEBTS Depreciation is CHARGED on ASSETS RECORDING is made of outstanding expenses All of the above Answer :A

Discussion

Explore topic-wise InterviewSolutions in .

Accrual basis is a more appropriate basis of determining profit as expenses are matched against revenue earned in relation thereto.

AccrualBasis of Accounting

Accounts from incomplete records is an unscientific method of accounting as it does not follow Dual Aspect Concept.

Accrual basis of acccounting is more reliable than ________ of accounting.

Accounting Standards have been evolved to improve thr relability and credibility of Financial Statements . Accounting Standards provide the solution in case of conflicts among various groups' In the light of this statement, enumerate the objectives of Accounting Standards.

Accounting voucher is prepared from source voucher.

Accounting Voucher is prepared for cash and Credit purchases.

Accounting voucher is prepared from

Accounting Standards are not mandatory in nature.

Accounting softwares requires

Accounting software is used to perform the __________ function.

Accounting records transactions and events that can be measured in money terms. It this, in your opinion,a limitation of accounting or an advantage? Give reasons.

Accounting records can be produced as _______ in the court of law.

Accounting Software requires.

Accounting records business transactions and events which are of financial nature. Do you consider it a limitation of accounting ?

Accounting principles are rules of action or conduct which are adopted by the accountants universally while recording accounting transactions.

Accounting measures the business transactions in term of _______ units.

Accounting is the language of business.

Accounting is

Accounting Information System processes the data and transforms it into __________

Accounting information should be verifable and free from personal Bias'. Name the qualitative characteristics of accounting information denoted by this statement.

"Accounting information should be comparable." Do you agree with this statement? Give two reasons.

'AccountingEaquation(A= L+C) always holds good under all eircumstances." Explain with the help of two examples.

Accounting does not show the realisable value of business. It is a/an

Accounting deals with quantifiable information.

Accounting books maintained under single Entry system are not as reliable as under Double Entry system .Do you agree?

Accounting aims to communicate financial information to investors only.

Accounting

According to which of the following concepts , in determining the net income from business ,all cost which are applicable to the revenue of theperiod should be charged against that revenue?

According to which of the following concepts, in determining the net income, all costs which are applicable to earn the revenue of the period should be charged against that revenue ?

Accouding to the Cost Concept

According to which of the followingaccounting concepts, even the proprietor of a business is treated as credotor to the extent of his capital?

According to which Concept the same accounting methods should be used each year :

According to which Concept even the proprietor of the business is treated as a creditor of the business :

According to which concept, depreciation is to be charged as per one particular method year after year?

According to the Realisation Concept, revenue should be accounted only when it is received.

According to the Money Measuremant Concept

According to the Going Concept, assets are recorded at realisable value and are depreciated over their estimated useful life.

According tothe Going Concept

According to the Cost Concept, assets are recorded at the value paid for acquiring them .

According to the Cost Concept

According to the Convention of Consistency, accounting policies and practices onceadopted should be consistently followed.

According to the Convention of Consistency

According to the ______ Concept, revenue is considered as being earned on the date on which it is earned.

According to Going Concern Concept,a business is viewed as having

According to the Accrual Concept

According to Principle of Consevatism, closing stock is vlaue at Historical cost or net realisable value ( market value ) whichever is higher.

According to the Business Entity Concept

According to Going Concern Concept, a business is viewed as having

According to Convention of conservation: