56 + Interview Questions in PROJECT-WORK IN GENERAL AWARENESS Page 1 InterviewSolution

1.	Rs. 2,000 paid as wages for installing a machine should be debited toA. Wages AccountB. Machinery AccountC. Capital AccountD. Any of these
Answer» Correct Answer - B

Discussion

2.	Return Inward in the Trial Balance are deducted fromA. purchaseB. salesC. return outwardD. None of these
Answer» Correct Answer - B

Discussion

3.	Trial Balance is preparedA. before Journal is writtenB. after Journal is writtenC. after Journal is posted into ledger accounts.D. after financial statements have been prepared.
Answer» Correct Answer - C

Discussion

4.	Trial Balance can be preparedA. at any time of the year.B. at the end of the yearC. in the beginning of the yearD. None of these .
Answer» Correct Answer - A

Discussion

5.	If Trial Balance matches, it meansA. arithmetical accuracyB. book are accurateC. Both (a) and (b)D. None of these .
Answer» Correct Answer - A

Discussion

6.	Trial balance is prepared from the balance taken fromA. Day BooksB. JournalC. Balance sheetD. Ledger Accounts.
Answer» Correct Answer - D

Discussion

7.	Discount Received hasA. Debit balanceB. Credit balanceC. Both (a) and (b)D. None of these .
Answer» Correct Answer - B

Discussion

8.	If Closing Stock appears in the Trial Balance , it meansA. pruchases are adjusted against opening and closing stocks.B. purchase are adjusted against closing stockC. Both (a) and (b)D. None of the above.
Answer» Correct Answer - A

Discussion

9.	Errors of Complete omissionA. are reflected in the Trial BalanceB. are not reflected in the Trial BalanceC. Both (a) and (b)D. None of these .
Answer» Correct Answer - B

Discussion

10.	Errors of complete omission permitA. correct totalling of the Balance SheetB. correct totalling of the Trial balance.C. the Trial Balance to agreeD. None of these.
Answer» Correct Answer - C

Discussion

11.	Straight Line Method of Depreciation is that method under whichA. Depreciation is charged at a fixed percentage on the book value of the asset.B. Depreciation is charged at a fixed percentage on the original cost of the asset.C. Depreciation is charged on original cost of asset but the depreciation rate changes.D. None of the above.
Answer» Correct Answer - b

Discussion

12.	Suspense Account appears in the Trial Balance because ofA. one sided errorsB. compensating errors.C. errors of principleD. None of these.
Answer» Correct Answer - A

Discussion

13.	Compensating errors areA. combination of more than one errorsB. errors committed in one transaction.C. errors committed by applying incorrect accounting principles.D. None of the above.
Answer» Correct Answer - A

Discussion

14.	Rectification entries are normally passed inA. Journal ProperB. Cash BookC. Day BooksD. None of these.
Answer» Correct Answer - A

Discussion

15.	If both debit and the credit aspect of a transaction are recorded in the cash book itself , it is calledA. an opening entryB. a compound entryC. a tranfer entryD. a contra entry
Answer» Correct Answer - D

Discussion

16.	Depreciation arises because ofA. Wear and TearB. InflationC. Fall in the value of the assetD. None of these
Answer» Correct Answer - a

Discussion

17.	Under Accrual Basis of Accounting, expenses are recordedA. on paymentB. on being incurredC. Both (a) and (b)D. None of these
Answer» Correct Answer - B

Discussion

18.	Under Cash Basis of Accounting, expenses are recordedA. on paymentB. on being incurredC. Both (a) and (b)D. None of these
Answer» Correct Answer - A

Discussion

19.	The correct accounting equation isA. Assets=Liabilities-CapitalB. Assets=Liabilities + CapitalC. Liabilities=Assets+CapitalsD. Capital=Assets + Liabilities.
Answer» Correct Answer - B

Discussion

20.	Suspense Account will give theA. Debit balanceB. Credit balanceC. Debit or Credit balance, as the case may beD. Nil balance.
Answer» Correct Answer - C

Discussion

21.	A cheque of â‚¹ 1,120 received from a debtor recorded twice in the Cash Book . When balance as per Cash Book is the starting pointA. â‚¹ 1,120 to be addedB. â‚¹ 1,120 to be subtracted.C. No adjustment is require.D. None of these .
Answer» Correct Answer - B

Discussion

22.	Which of the following accounts will be credited on giving cash donation ?A. Cash A/cB. Donation A/CC. Purchase A/cD. None of these
Answer» Correct Answer - A Cash A/c

Discussion

23.	Which of the following is the objective of Accounting ?A. Systematic RecordingB. Comparison and EvaluationC. Solvency PositionD. Forecasting
Answer» Correct Answer - A

Discussion

24.	Prepaid expense is expenseA. Paid in advanceB. Still to be paid.C. Both (a) and (b)D. None of these
Answer» Correct Answer - A

Discussion

25.	Excess of income over its related expenses which arises from its normal business activity isA. GainB. ProfitC. RevenueD. Loss.
Answer» Correct Answer - B

Discussion

26.	The cash Book recordedA. all cash receipt and payments.B. cash and credit sale of goodsC. Both (a) and (b)D. None of these.
Answer» Correct Answer - A all cash receipt and payments.

Discussion

27.	Ledger is a book in whichA. Real and Nominal Account are maintainedB. Real and Personal Accounts are maintained.C. Real,Personal and nominal Account are maintained.D. None of the above.
Answer» Correct Answer - C Real,Personal and nominal Account are maintained.

Discussion

28.	Which of the following will not be recorded in the books of account ?A. Purchased a LED TV for personal use, amount paid from personal accountB. Purchased machinery of â‚¹ 1,00,000C. Purchased goods for â‚¹ 25,000D. Paid Salaries and Wages
Answer» Correct Answer - A

Discussion

29.	Accounting isA. A process concerned with summarising of the recorded transactions.B. Not the language of businessC. An art of recording, classifying and summarising financial transactions in a significant manner.D. All of the above.
Answer» Correct Answer - A::C

Discussion

30.	One intra-state (i.e., outside the state) pruchase of goods, which of the following GST is leviedA. IGSTB. IGST and CGSTC. CGST and IGSTD. None of these
Answer» Correct Answer - A IGST

Discussion

31.	Two primary qualitative characteristics of financial statements are :A. Understandability and Materiality.B. Relevance and reliabilityC. Relevance and MaterialityD. All of these
Answer» Correct Answer - B

Discussion

32.	Out of the following which is the branch of Accounting ?A. Financial AccountingB. Cost AccountingC. Management AccountingD. All of these
Answer» Correct Answer - D

Discussion

33.	Which of the following will not required adjustment in the Cash Book balance ?A. Cheque issued but not presented for paymentB. Cheque deposited but not cleared.C. Cheque wrongly credited by bankD. All of the above.
Answer» Correct Answer - D All of the above.

Discussion

34.	Purchase Account in the ledger showsA. All purchases of goodsB. Credit puchasesC. Cash purchases of goodsD. Credit purchase of assets other than goods.
Answer» Correct Answer - A All purchases of goods

Discussion

35.	Sale Account in the ledger showsA. All Sale of goodsB. Credit salesC. Cash sale of goods .D. Credit sales of assets other than goods.
Answer» Correct Answer - A All Sale of goods

Discussion

36.	According to Going Concern Concept, a business is viewed as havingA. a limited lifeB. a very long lifeC. an infinite lifeD. None of these.
Answer» Correct Answer - C

Discussion

37.	The Concept of Conservatism takes into accountA. all prospective profits and all prospective losses.B. all prospective profits and leaves all prospectives losses.C. all prosepective losses but not the prospective profits.D. None of the above.
Answer» Correct Answer - C

Discussion

38.	Amount paid or payable against purchase of goods isA. revenue expenditureB. capital expenditureC. Both (a) and (b)D. None of these
Answer» Correct Answer - A

Discussion

39.	Opening Stock Rs. 1,00,000, Sales Rs. 5,00,000, Gross profit @25% on cost, Purchases Rs. 6,00,000. Closing Stock isA. Rs. 1,25,000B. Rs. 3,00,000C. Rs. 8,00,000D. Rs. 3,25,000
Answer» Correct Answer - B

Discussion

40.	Adjusted purchases Rs. 6,63,600 , sales Rs. 7,44,000, Closing Stock Rs. 50,400, Freight & Cartages Inward Rs. 3,600, Wages Rs. 2,400, Freight & Cartage outward Rs. 1,800, Gross Profit for the Year isA. Rs. 76,200B. Rs. 74,400C. Rs. 1,24,800D. None of these.
Answer» Correct Answer - B

Discussion

41.	Withdrawal of goods from business by the proprietor is credited toA. Drawing A/cB. Capital A/cC. Purchase A/cD. None of these
Answer» Correct Answer - C

Discussion

42.	Business transactions are recorded in the order in which they ________A. in chronological order.B. weeklyC. at the end of the month.D. Any of the above.
Answer» Correct Answer - A in chronological order.

Discussion

43.	Business transactions are recordedA. in chronological orderB. weeklyC. at the end of the month.D. All of these
Answer» Correct Answer - A

Discussion

44.	Financial position of Surbhi as on 1st April, 2018 was as under : Plant â‚¹ 22,000, Stock â‚¹ 45,000, Creditors â‚¹ 12,500, Bank overdraft â‚¹ 28,800, Cash â‚¹ 15,700, Debtors â‚¹ 27,900 , Bill Payable â‚¹9,800, Investments â‚¹ 30,000, Building 80,000. Her Capital at the year end will beA. â‚¹ 2,57,000B. â‚¹ 51,100C. â‚¹ 3,08,600D. â‚¹ 1,69,500.
Answer» Correct Answer - D

Discussion

45.	A Machinery which costs â‚¹ 2,00,000 is depreciated at 25% per year using the Written Down Value Method. At the end of three years, it will have a net book value ofA. â‚¹ 1,50,000B. â‚¹ 84,375C. â‚¹ 1,12,500D. â‚¹ 1,00,000
Answer» Correct Answer - b

Discussion

46.	Cash Book showed Bank overdraft of â‚¹ 3,000. But the Pass Book made up on the same date showed that cheque of â‚¹ 200, â‚¹ 100 and â‚¹ 250 respectively had not been presented for payments, and the cheque of â‚¹ 800 paid into account had not been cleared. The balance as per the Cash Book will beA. â‚¹ 2,200B. â‚¹ 4,350C. â‚¹ 3,250D. â‚¹ 2,750.
Answer» Correct Answer - C

Discussion

47.	A bill of â‚¹ 2,00,000 drawn on 7th January, 2019, due for payment on 10th April, 2019 is discounted with bank on 10th February, 2019 at 12% p.a. The amount of discounting charge isA. â‚¹4,800B. â‚¹ 4,000C. â‚¹ 48,000D. â‚¹ 8,000
Answer» Correct Answer - B

Discussion

48.	Purchase of office furniture of â‚¹ 1,200 has been debited to the General Expenses Account . It isA. a clerical error.B. an error of principle.C. an error of omissionD. Compensating Error.
Answer» Correct Answer - B

Discussion

49.	Journal entry for payment of income Tax â‚¹5,000 by the propritor is :A. Dr. Income Tax A/c and Cr. Purchase A/c by â‚¹5,000B. Dr. Purchase A/c and Cr. Drawing A/c by â‚¹5,000C. Dr. Drawing A/c and Cr. Income Tax by â‚¹5,000D. Dr.Drawing A/c and Cr. Cash A/c by â‚¹5,000
Answer» Correct Answer - D

Discussion

50.	Journal entry for stock left unsold at the end of the year is :A. Dr. Closing Stock A/c and Cr. Trading A/cB. Dr. Trading A/c and Cr. Closing Stock A/cC. Dr. Profit & Loss A/c and Cr. Closing Stock A/cD. Dr. Closing Stock A/c and Cr. Profit and Loss A/c
Answer» Correct Answer - A

Discussion

Explore topic-wise InterviewSolutions in .

Rs. 2,000 paid as wages for installing a machine should be debited toA. Wages AccountB. Machinery AccountC. Capital AccountD. Any of these

Return Inward in the Trial Balance are deducted fromA. purchaseB. salesC. return outwardD. None of these

Trial Balance is preparedA. before Journal is writtenB. after Journal is writtenC. after Journal is posted into ledger accounts.D. after financial statements have been prepared.

Trial Balance can be preparedA. at any time of the year.B. at the end of the yearC. in the beginning of the yearD. None of these .

If Trial Balance matches, it meansA. arithmetical accuracyB. book are accurateC. Both (a) and (b)D. None of these .

Trial balance is prepared from the balance taken fromA. Day BooksB. JournalC. Balance sheetD. Ledger Accounts.

Discount Received hasA. Debit balanceB. Credit balanceC. Both (a) and (b)D. None of these .

If Closing Stock appears in the Trial Balance , it meansA. pruchases are adjusted against opening and closing stocks.B. purchase are adjusted against closing stockC. Both (a) and (b)D. None of the above.

Errors of Complete omissionA. are reflected in the Trial BalanceB. are not reflected in the Trial BalanceC. Both (a) and (b)D. None of these .

Errors of complete omission permitA. correct totalling of the Balance SheetB. correct totalling of the Trial balance.C. the Trial Balance to agreeD. None of these.

Suspense Account appears in the Trial Balance because ofA. one sided errorsB. compensating errors.C. errors of principleD. None of these.

Compensating errors areA. combination of more than one errorsB. errors committed in one transaction.C. errors committed by applying incorrect accounting principles.D. None of the above.

Rectification entries are normally passed inA. Journal ProperB. Cash BookC. Day BooksD. None of these.

If both debit and the credit aspect of a transaction are recorded in the cash book itself , it is calledA. an opening entryB. a compound entryC. a tranfer entryD. a contra entry

Depreciation arises because ofA. Wear and TearB. InflationC. Fall in the value of the assetD. None of these

Under Accrual Basis of Accounting, expenses are recordedA. on paymentB. on being incurredC. Both (a) and (b)D. None of these

Under Cash Basis of Accounting, expenses are recordedA. on paymentB. on being incurredC. Both (a) and (b)D. None of these

The correct accounting equation isA. Assets=Liabilities-CapitalB. Assets=Liabilities + CapitalC. Liabilities=Assets+CapitalsD. Capital=Assets + Liabilities.

Suspense Account will give theA. Debit balanceB. Credit balanceC. Debit or Credit balance, as the case may beD. Nil balance.

A cheque of â‚¹ 1,120 received from a debtor recorded twice in the Cash Book . When balance as per Cash Book is the starting pointA. â‚¹ 1,120 to be addedB. â‚¹ 1,120 to be subtracted.C. No adjustment is require.D. None of these .

Which of the following accounts will be credited on giving cash donation ?A. Cash A/cB. Donation A/CC. Purchase A/cD. None of these

Which of the following is the objective of Accounting ?A. Systematic RecordingB. Comparison and EvaluationC. Solvency PositionD. Forecasting

Prepaid expense is expenseA. Paid in advanceB. Still to be paid.C. Both (a) and (b)D. None of these

Excess of income over its related expenses which arises from its normal business activity isA. GainB. ProfitC. RevenueD. Loss.

The cash Book recordedA. all cash receipt and payments.B. cash and credit sale of goodsC. Both (a) and (b)D. None of these.

Ledger is a book in whichA. Real and Nominal Account are maintainedB. Real and Personal Accounts are maintained.C. Real,Personal and nominal Account are maintained.D. None of the above.

Which of the following will not be recorded in the books of account ?A. Purchased a LED TV for personal use, amount paid from personal accountB. Purchased machinery of â‚¹ 1,00,000C. Purchased goods for â‚¹ 25,000D. Paid Salaries and Wages

Accounting isA. A process concerned with summarising of the recorded transactions.B. Not the language of businessC. An art of recording, classifying and summarising financial transactions in a significant manner.D. All of the above.

One intra-state (i.e., outside the state) pruchase of goods, which of the following GST is leviedA. IGSTB. IGST and CGSTC. CGST and IGSTD. None of these

Two primary qualitative characteristics of financial statements are :A. Understandability and Materiality.B. Relevance and reliabilityC. Relevance and MaterialityD. All of these

Out of the following which is the branch of Accounting ?A. Financial AccountingB. Cost AccountingC. Management AccountingD. All of these

Which of the following will not required adjustment in the Cash Book balance ?A. Cheque issued but not presented for paymentB. Cheque deposited but not cleared.C. Cheque wrongly credited by bankD. All of the above.

Purchase Account in the ledger showsA. All purchases of goodsB. Credit puchasesC. Cash purchases of goodsD. Credit purchase of assets other than goods.

Sale Account in the ledger showsA. All Sale of goodsB. Credit salesC. Cash sale of goods .D. Credit sales of assets other than goods.

According to Going Concern Concept, a business is viewed as havingA. a limited lifeB. a very long lifeC. an infinite lifeD. None of these.

The Concept of Conservatism takes into accountA. all prospective profits and all prospective losses.B. all prospective profits and leaves all prospectives losses.C. all prosepective losses but not the prospective profits.D. None of the above.

Amount paid or payable against purchase of goods isA. revenue expenditureB. capital expenditureC. Both (a) and (b)D. None of these

Opening Stock Rs. 1,00,000, Sales Rs. 5,00,000, Gross profit @25% on cost, Purchases Rs. 6,00,000. Closing Stock isA. Rs. 1,25,000B. Rs. 3,00,000C. Rs. 8,00,000D. Rs. 3,25,000

Adjusted purchases Rs. 6,63,600 , sales Rs. 7,44,000, Closing Stock Rs. 50,400, Freight & Cartages Inward Rs. 3,600, Wages Rs. 2,400, Freight & Cartage outward Rs. 1,800, Gross Profit for the Year isA. Rs. 76,200B. Rs. 74,400C. Rs. 1,24,800D. None of these.

Withdrawal of goods from business by the proprietor is credited toA. Drawing A/cB. Capital A/cC. Purchase A/cD. None of these

Business transactions are recorded in the order in which they ________A. in chronological order.B. weeklyC. at the end of the month.D. Any of the above.

Business transactions are recordedA. in chronological orderB. weeklyC. at the end of the month.D. All of these

A Machinery which costs â‚¹ 2,00,000 is depreciated at 25% per year using the Written Down Value Method. At the end of three years, it will have a net book value ofA. â‚¹ 1,50,000B. â‚¹ 84,375C. â‚¹ 1,12,500D. â‚¹ 1,00,000

A bill of â‚¹ 2,00,000 drawn on 7th January, 2019, due for payment on 10th April, 2019 is discounted with bank on 10th February, 2019 at 12% p.a. The amount of discounting charge isA. â‚¹4,800B. â‚¹ 4,000C. â‚¹ 48,000D. â‚¹ 8,000

Purchase of office furniture of â‚¹ 1,200 has been debited to the General Expenses Account . It isA. a clerical error.B. an error of principle.C. an error of omissionD. Compensating Error.

Journal entry for payment of income Tax â‚¹5,000 by the propritor is :A. Dr. Income Tax A/c and Cr. Purchase A/c by â‚¹5,000B. Dr. Purchase A/c and Cr. Drawing A/c by â‚¹5,000C. Dr. Drawing A/c and Cr. Income Tax by â‚¹5,000D. Dr.Drawing A/c and Cr. Cash A/c by â‚¹5,000

Journal entry for stock left unsold at the end of the year is :A. Dr. Closing Stock A/c and Cr. Trading A/cB. Dr. Trading A/c and Cr. Closing Stock A/cC. Dr. Profit & Loss A/c and Cr. Closing Stock A/cD. Dr. Closing Stock A/c and Cr. Profit and Loss A/c