Description : The Market price of good declined than the cost price. Then the concept that plays a key role is ____ a) Materiality b) Going concern concept c) Realization d) Consistency
Last Answer : c) Realization
Description : A trader has made a sale of Rs.75,500 out of which cash sales amounted to Rs.25,500. He showed trade receivables on 31-3-2014 at Rs.25,500. Which concept is followed by him? a) Going concern b) Cost c) Accrual
Last Answer : c) Accrual
Description : Human resources will not appear in the balance sheet according to ______ concept. a) Accrual b) Going concern c) Money measurement concept d) None
Last Answer : c) Money measurement concept
Description : Small items like, pencils, pens, files, etc. are written off within a year according to _ concept. a) Materiality b) consistency c) Conservatism d) Realisation
Last Answer : a) Materiality
Description : Recording of capital contributed by the owner as liability ensures the adherence of principle of– (A) Consistency (B) Going concern (C) Separate entity (D) Materiality
Last Answer : Answer: Separate entity
Description : Matching concept means A] Assets = capital + liabilities B] Transactions recorded at accrual concept C] Anticipate no profit but recognize all losses D] Expenses should be matched with the revenue of the period.
Last Answer : D] Expenses should be matched with the revenue of the period.
Description : As per accrual concept, which of the followings is not true a) revenue –expenditure = profit b) revenue –profit = expenditure c) sales + gross profit = revenue d) revenue = profit + expenditure
Last Answer : c) sales + gross profit = revenue
Description : According to which concept, the proprietor pays interest on drawings a) Accrual concept b) Conservatism concept c) Entity concept d) Dual Aspect concept
Last Answer : c) Entity concept
Description : Consistency with reference to application of accounting procedures means a) All companies in the same Industry should use identical accounting procedures b) Income & assets have not been overstated c ... uniform basis year after year d) Any accounting method can be followed as per convenience
Last Answer : c)Accounting methods & procedures shall be followed uniform basis year after year
Description : The policy of anticipate no profit and provide for all possible losses arise due to the concept of _____ a) Consistency b) Disclosure c) Conservatism d) Matching
Last Answer : c) Conservatism
Description : Which accounting concept specifies thepractice of crediting closing stock to the trading account? a) Cost b) Realisation c) Going concern d)Matching
Last Answer : d)Matching
Description : Which accounting concept satisfy the valuation criteria a] Going concern, Realisation, Cost b) Going concern, Cost, Dual aspect c) Cost, Dual aspect, Conservatism d) Realisation, Conservatism, Going concern.
Last Answer : a] Going concern, Realisation, Cost
Description : The fundamental accounting equation' Assets = Liabilities + Capital' is the formal expression of A. Dual aspect concept B. Matching concept C. Going concern concept D. Money measurement concept
Last Answer : A. Dual aspect concept
Description : A trader purchases goods for Rs. 2500000, of these 70% of goods were sold during the year. At the end of 31st December 2009, the market value of such goods were Rs. 500000. But the trader recorded in ... is violated. (a) Money measurement (b) Conservatism (c) Consistency (d) None of these
Last Answer : (b) Conservatism
Description : The direct advantages of accounting do not include A. Preparation of financial statements B. Comparison of results C. Competitive advantage D. Information to interested groups
Last Answer : C. Competitive advantage
Description : If nothing is given in the financial statements aboutthe three accounting assumptions then it is to be treated as it a) Is assumed that it is not followed b) Is assumed to be followed c) Is assumed to be followed to some extent d) None of the above
Last Answer : b) Is assumed to be followed
Description : Which of the following factor is not considered while selecting accounting policies? a) Prudence b) Substance over form c) Accountancy d) Materiality
Last Answer : c) Accountancy
Description : In income measurement & recognisation of assets & liabilities which of the following concepts goes together ? (a) Periodicity, Accural, Matching (b) Cost, Accural, matching (c) Going concern, cost, Realization (d) Going concern, Periodicity, Reliability
Last Answer : (a) Periodicity, Accural, Matching
Description : With respect to the concept of materiality, which one of the following statements is correct? a. Materiality is a matter of professional judgment. b. Materiality is determined by reference to AASC's ... depends only on the peso amount of an item relative to other items in the financial statements
Last Answer : Materiality is a matter of professional judgment
Description : Which of the following statements is incorrect about materiality? a. The concept of materiality recognizes that some matters are important for fair presentation of financial statements in conformity with ... s perception of the needs of a reasonable person who will rely on the financial statements
Last Answer : An auditor considers materiality for planning purposes in terms of the largest aggregate level of misstatements that could be material to any one of the financial statements
Description : The concept of materiality would be least important to an auditor when considering the a. Decision whether to use positive or negative confirmations of accounts receivable. b. Adequacy of disclosure of a ... . d. Effects of a direct financial interest in the client upon the CPA's independence.
Last Answer : Effects of a direct financial interest in the client upon the CPA's independence.
Description : The auditor's judgment concerning the overall fairness of presentation of financial position, results of operation, and changes in cash flow is applied within the framework of a. ... b. Generally accepted accounting principles. c. Philippine Financial Reporting Standards d. Quality control
Last Answer : Philippine Financial Reporting Standards
Description : Dividend policy of a company mainly concern with (i) dividend payout and (ii) Stability of dividend A. Only (i) is correct B. Only (ii) is correct C. Both (i) and (ii) are correct. D. Both (i) and (ii) are incorrect.
Last Answer : C. Both (i) and (ii) are correct.
Description : Which conventions, prevent window dressing. a. Conservation b. Full disclosure c. Consistency d. Materiality -Technology
Last Answer : Full Disclosure
Description : Which of the following is not followed in capital budgeting? A. Cash flows principle B. Interest exclusion principle C. Accrual principle D. Post tax principle
Last Answer : C. Accrual principle
Description : A term associated with the comparison of processing speeds of different computer system is: a. EFTS b. MPG c. MIPS d. CFPS
Last Answer : c. MIPS
Description : Which of the following statements is not correct? A. For the purpose of Funds Flow Statement, the term 'fund ' generally refers to net working capital B. Funds flow is a wider concept than ... business D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds
Last Answer : D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds
Description : The concept of small scale industries (SSIs) was brought to the fore by the A. Industrial Policy Resolution 1948 B. Industrial Policy Resolution 1956 C. Industrial Policy Statement 1977 D. None of the above
Last Answer : C. Industrial Policy Statement 1977
Description : Going Concern' concept of business says which of the following 1. Business will continue trading over a long period of time 2. Anticipate no profit and provide for all possible losses 3. The period of allocation f the cost of an asset 4. 1 and 2 5. None of these
Last Answer : Business will continue trading over a long period of time
Description : Which one of the following statements about preparation of financial statements of a limited liability company is correct ? (A) Financial statements should be prepared according to the cash basis ... Financial statements should be prepared according to both the accrual and cash basis of accounting
Last Answer : Answer: Financial statements should be prepared according to the accrual basis of accounting only
Description : If nothing is written about the accounting assumption to be followed it is presumed that a) They have been followed b) They have not been followed c) They are followed to some extent d) none of these
Last Answer : b) They have not been followed
Description : Which statement is incorrect regarding procedures and evidence obtained in a review engagement? a. The auditor should apply judgment in determining the specific nature, timing and extent of review procedures. ... the needs of those relying on that information, not to the level of assurance provided
Last Answer : There is a greater risk that misstatements will not be detected in an audit than in a review.
Description : A company pays dividend at the A. End of the week B. End of the financial year C. End of the month D. All of the above
Last Answer : B. End of the financial year
Description : Historical cost concept requires the valuation of an asset at A] Original cost B] Replacement value C] Net realizable value D] Market value
Last Answer : A] Original cost
Description : For every debit there will be an equal creditaccording to A] Matching concept B] cost concept C] Money measurement concept D] Dual aspect concept
Last Answer : D] Dual aspect concept
Description : As per the Matching concept, Revenue –? = Profit a) Expenses b) Liabilities c) Losses d) Assets
Last Answer : a) Expenses
Description : Cost concept basically recognises ____ a) Fair Market value b) Historical cost c) Realisable value d) Replacement cost
Last Answer : b) Historical cost
Description : Business enterprise is separate from its owner according to _____ concept. a) Money measurement concept b) Matching concept c) Entity concept d) Dual aspect concept
Description : The proprietor of the business is treated as creditor for the capital introduced by him due to_____ concept. a) Money measurement b) Cost c) Entity d) Dual aspect
Last Answer : c) Entity
Description : The first electronic general purpose digital computer built by Motley and Accrete called ENIAC did not work on the stored program concept. How many number s could it store in its internal memory? a. 100 b. 20 c. 40 d. 80
Last Answer : b. 20
Description : Orange Corp. has a few large accounts receivable that total P2,000,000. Yellow Corp. has a large number of small accounts receivable that also total P2,000,000. The importance of an error in ... auditor's concept of: a. Materiality. b. Reasonable assurance. c. Comparative analysis d. Relative risk
Last Answer : Materiality.
Description : According to going concern concept a business entity is assumed to have– (A) A long life (B) A small life (C) A very short life (D) A definite life
Last Answer : Answer: A long life
Description : Financial accounting is concerned with – a) Recording of business expenses and revenue b) Recording of costs of products and services c) Recording of day to day business transactions d) None of the above
Last Answer : c) Recording of day to day business transactions
Description : Double entry system is used in which type of accounting a) Cost b)Financial c) Management d) All
Last Answer : b)Financial
Description : Which of the following is not the main objective of accounting? A] Systematic recording of transactions B] Ascertaining profit or loss C] Ascertainment of financial position D] Solving tax disputes with tax authorities
Last Answer : D] Solving tax disputes with tax authorities
Description : The nature of financial accounting is: a) Historical b) Forward looking c) Analytical d) Social
Last Answer : a) Historical
Description : is root cause for financial accounting (a) Stewardship accounting (b) Social accounting (c) Management accounting (d) Human resource accounting
Last Answer : (a) Stewardship accounting
Description : Interpretation means (a) Explanation of meaning and significance of the data in Financial Statements. (b) Concerned with preparation and presentation of classified data (c) Systematic analysis of recorded data (d) Methodical classification of data given in Financial Statements
Last Answer : (a) Explanation of meaning and significance of the data in Financial Statements.
Description : The process of recording financial data upto trial balance is a) Book keeping b) Classifying c) Summarising d) Analyzing
Last Answer : a) Book keeping
Description : Which one of the following branches of accounting primarily deals with processing and presenting of accounting data for internal use? A. Financial accounting B. Tax accounting C. Management accounting D. Inflation accounting
Last Answer : C. Management accounting