Accounting for Business Decisions | Chapter 2 | Part 2 | MBA MCQs | ABD

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1. True & fair profit and loss a/c of a company know by
   1.   Preparing trial balance
   2.   Preparing respective ledger of account
   3.   Preparing trading a/c
   4.   Preparing trading & profit & loss a/c
2. According to which concept business is treated as a unit apart from owner
   1.   Dual concept
   2.   Divider concept
   3.   Entity concept
   4.   Landlord concept
3. Authorized capital, also known as
   1.   Nominal capital
   2.   Paid up capital
   3.   Issues capital
   4.   None of these
4. Credit balance of profit & loss a/c shown on
   1.   Asset side of balance sheet
   2.   Liability side of balance sheet
   3.   Not shown in balance sheet
   4.   Half on asset side and half on liability side
5. Under which concept it is assumed that the enterprises has neither the intention nor the necessity of liquidation or of curtailing materiality the scale of operation
   1.   Revenue realization concept
   2.   Matching cost concept
   3.   Going concern concept
   4.   None of these
6. Making the provision for doubtful debts and discount on debtors in anticipation of actual bad debts and discount is an example for which concept
   1.   Conservatism concept
   2.   Continuity concept
   3.   Realization concept
   4.   All of these
7. Financial accounting use data
   1.   Projected data
   2.   External data only
   3.   Historic data
   4.   Manager data only
8. Payment received from Debtor
   1.   Decreases the Total Assets
   2.   Increases the Total Assets
   3.   Results in no change in the Total Assets
   4.   Increases the Total Liabilities
9. Bookkeeping is an……………………of correctly recording of business transition.
   1.   Art and Science
   2.   Art
   3.   Science
   4.   Art or Science
10. Journal Entries are known as book of ………………Entry.
    1.   Original
    2.   Duplicate
    3.   Personal
    4.   Nominal
11. Every adjustment has two effects, i.e., ______________.
    1.   One Debit & One Credit
    2.   Debit
    3.   Credit
    4.   None of the above
12. Depreciation is debited to ______________.
    1.   BRS
    2.   Balance Sheet
    3.   Trading A/c
    4.   Profit and Loss A/c
13. Income Accrued but Not Received is recorded to ______________.
    1.   Profit and Loss A/c Debit Side
    2.   Profit and Loss A/c Credit Side
    3.   Trading A/c Debit Side
    4.   Trading A/c Credit Side
14. Prepaid Expenses shown at ______________.
    1.   Balance Sheet Asset Side
    2.   Profit and Loss A/c Credit Sid
    3.   Trading A/c Debit Side
    4.   Trading A/c Credit Side
15. Closing Stock is recorded to ______________.
    1.   Profit and Loss A/c Debit Side
    2.   Profit and Loss A/c Credit Sid
    3.   Trading A/c Debit Side
    4.   Trading A/c Credit Side
16. Outstanding Expenses shown at ______________.
    1.   Balance Sheet Liability Side
    2.   Profit and Loss A/c Credit Side
    3.   Balance Sheet Asset Side
    4.   Trading A/c Credit Side
17. Goods Withdrawn from business is considered as ______________.
    1.   Sales
    2.   Purchases
    3.   Capital
    4.   Drawings
18. Interest on Capital is debited to ______________.
    1.   Capital A/c
    2.   Balance Sheet
    3.   Trading A/c
    4.   Profit and Loss A/c
19. Interest on Drawings is credited to ______________.
    1.   Journal A/c
    2.   Balance Sheet
    3.   Trading A/c
    4.   Profit and Loss A/c
20. Goods Distributed as Free Samples is debited to______________.
    1.   Capital A/c
    2.   Personal A/c
    3.   Trading A/c
    4.   Profit and Loss A/c