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Subject: Financial Management
Multiple Choice Single Response | ||
Question ID | Question | Options |
1 | Which of the following can be defined as the reporting of the financial position and performance of a firm through the financial statement issued to the external users on a periodic basis? | Financial Accounting |
Recording | ||
Reporting | ||
Transactions | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
2 | What is concerned with providing financial results to managements, creditor, investors, bank, government, stock exchange, brokers and employees, etc., for decision making? | Recording |
Classification | ||
Reporting | ||
Controlling | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
3 | What helps to identify strong areas of performance and also points out the individuals or departments to be rewarded? | Recording |
Controlling | ||
Reporting | ||
Classification | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
4 | Which of the following protects the properties of the business by recording them as per the date and showing them in the balance sheet? | Protecting |
Controlling | ||
Reporting | ||
Classification | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
5 | What is capital used to purchase fixed asset called? | Fixed capital |
Assets | ||
Liability | ||
Goods | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
6 | Which of the following is a person who owes something to business? | Debtor |
Creditor | ||
Employer | ||
Employee | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
7 | Which of the following is concerned with providing financial results to management? | Recording |
Controlling | ||
Reporting | ||
Classification | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
8 | Which of the following also involves in the preparation of the trial balance which contains the summary of the balances of the ledger? | Recording |
Controlling | ||
Reporting | ||
Summarising | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
9 | Which of the following have interest in information about the continuation of an enterprise when they have established a long term involvement the enterprise? | Employees |
Employers | ||
Customers | ||
Tax Authorities | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
10 | Which of the following is not the function of Financial Accounting? | Recording |
Reporting | ||
Planning | ||
Classification | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
11 | What is processing of transactions in accounting called? | The Double Entry recording |
The amount | ||
Reporting | ||
Transactions | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
12 | Which of the following is derived from the French word ‘jour’ which means a day? | General Ledger |
Business transaction | ||
Record | ||
Journal | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
13 | What means a daily record? | Journal |
Creditor | ||
Ledger | ||
Cash Receipts | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
14 | Which of the following records all the purchases of inventory on credit? | Cash Payment journals |
Sales Journals | ||
Sales Return and Allowances Journal | ||
Purchase Journal | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
15 | Which of the following records the return of credit purchases or allowances that were previously purchased on credit? | Purchase Return and Allowance Journal |
Sales Journals | ||
Sales Return and Allowances Journal | ||
Purchase Journal | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
16 | Which of the following records all transactions that are not recorded in any of the specialised journals? | Purchase Return and Allowance Journal |
sales Journals | ||
General Journal | ||
Purchase Journal | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
17 | Which of the following is the principle books of accounts which contain all the account information of a business? | Account |
Journals | ||
Ledger | ||
Balance Sheet | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
18 | How many type of ledger are there? | Five |
Two | ||
Four | ||
Three | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
19 | What is Periodical Balance Form also called? | Balance form |
T Account | ||
Running Form | ||
Nominal | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
20 | Who cannot get the information of transactions from the journals? | Employees |
Investors | ||
A businessman | ||
Management | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
21 | Which of the following is required to find out the financial position of the organisation? | Trading Account |
Balance sheet | ||
Trading & Profit | ||
Loss Account | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
22 | What refers to buying and selling of goods? | Trading |
Selling | ||
Gross Profit | ||
Credit | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
23 | If the cost price of machinery is Rs 50,000 and it is sold in Rs.60, 000 then what is the gross profit? | The gross profit is Rs. 5, 000 |
The gross profit is Rs.60, 000 | ||
The gross profit is Rs.50, 000 | ||
The gross profit is Rs.10, 000 | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
24 | Which of the following furnishes only those data which are relevant for the decision making? | Balance form |
Management Accounting | ||
Accounting | ||
Profit | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
25 | Which of the following reveals Gross Profit or Gross Loss? | Trading |
Gross Profit | ||
Direct expenses | ||
Indirect expenses | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
26 | Which of the following is defined as “a Statement which sets out the Assets and Liabilities of a business firm and which serves to ascertain the financial position of the same on any particular date? | General Ledger |
Business transaction | ||
Record | ||
Balance Sheet | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
27 | Which of the following account is prepared to find out the difference between Selling price and Cost price? | Balance sheet |
Profit and Loss Account | ||
Trading Account | ||
Trial Balance | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
28 | Which of the following is stock on hand at the commencement of the year or period? | Opening Stock |
Closing Stock | ||
Purchases | ||
Purchase return Inward and Outward | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
29 | Which of the following has been defined in many ways by various experts? | Final Account |
Journals | ||
Managerial accounting | ||
Balance Sheet | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
30 | Which of the following furnishes only those data which are relevant for the decision making? | Balance form |
Management Accounting | ||
Accounting | ||
Profit | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
31 | _____________ decision making can be taken by the help of financial accounting | Controlling |
Market | ||
Employee | ||
Managerial | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
32 | Current liability has to be paid within a _________. | month |
day | ||
period | ||
year | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
33 | Financial accounting is used for ___________ and maintenance of accounts of various transactions which needs special skills and knowledge. | recording |
reporting | ||
managing | ||
accounting | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
34 | ______________ frequently requires timely financial information that deals with different aspects of the firm. | Global market |
Employers | ||
Management | ||
Customers | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
35 | Current assets are those which are receivable within a _________. | day |
year | ||
month | ||
decade | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
36 | Systematically __________ all the business events posting through journals and ledgers to finally prepare financial statements like profit and loss account and balance sheet. | reporting |
recording | ||
planning | ||
classification | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
37 | The accounting information should be presented in a truthful, accurate and complete manner and capable of being verified by the potential __________. | employers |
employees | ||
investors | ||
Creditors | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
38 | ____________ and their agencies are interested in the allocation of resources and their activities of enterprises. | Employees |
Investors | ||
Government | ||
Management | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
39 | The __________ in the entire business are either in a credit basis or in cash basis. | transactions |
profit | ||
business | ||
cost | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
40 | In double entry accounting, a company’s _________ are equal to the company’s Liabilities plus owner’s equity. | liabilities |
assets | ||
profits | ||
losses | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
41 | The _________ always recorded on the left-hand side while the credit is on right hand side. | cash |
record | ||
debit | ||
transactions | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
42 | If the total debit does not equal to the total credit then there must be a _____ entry. | correct |
wrong | ||
two | ||
no | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
43 | ____________ in revenue account increases the credit balance. | Increase |
Decrease | ||
Loss | ||
Expense | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
44 | __________ items decrease the owner’s equity so they have debit balance. | Increased |
More | ||
Less | ||
Expenses | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
45 | The flow of information starts with _______ data and gradually transformed into financial statements. | raw |
assets | ||
old | ||
client | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
46 | Journal is day book which ________ business history in date wise manner. | summarises |
report | ||
record | ||
knows | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
47 | If the managers want to know that how the ________ are going on for the current year then they check out the sales of general ledger | business |
market | ||
sales | ||
management | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
48 | There are ______ types of ledger | three |
five | ||
two | ||
four | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
49 | _______the entries made in the journal must be posted into ledger | Record |
Higher | ||
All | ||
None of | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
50 | Place the page of _____ where the transferred information is located in the post reference column of the ledger account. | Journal |
Ledger | ||
Transfer | ||
Posting | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
51 | The importance of ________ account is to inform the businessman about the business progress and financial position at the right time in the right way. | final |
profit | ||
project | ||
Journal | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
52 | ________ & Profit and Loss Account is prepared to find out Profit and Loss. | Final |
Report | ||
Trading | ||
Transactions | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
53 | If all the records are correctly recorded in the book, the _________ sheet must tally automatically. | balance |
credit | ||
report | ||
general | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
54 | Sales return must be ___________ from the Total Sales to get Net Sale | divided |
multiplyied | ||
added | ||
subtracted | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
55 | The presentation of accounting ____________ in such a way as to assists management in the creation of policy and day to day operation of an undertaking. | journal |
information | ||
management | ||
policy | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
56 | Management Accounting Information is useful to _____________. | business |
market | ||
management | ||
accounts | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
57 | The main motive of Management Accounting is to serve the management while making the _________ for the organisation. | work |
function | ||
decision | ||
schedule | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
58 | There should be a _________ approach for a logical decision-making process. | management |
quantitative | ||
profit | ||
qualitative | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
59 | _______________ of accounting is much useful than Financial Report as it provides some insight impact of rise in price of the product. | Journal |
Log book | ||
Cost Book | ||
Ledger | ||
Multiple Choice Single Response | ||
Question ID | Question | Options |
60 | In ____________ accounting there is a great importance to figures worked out accurately. | general |
financial | ||
management | ||
project | ||
True/False | ||
Question ID | Questions | Options |
61 | Controlling also points out people who are underperformed | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
62 | Financial accounting is used for recording and maintenance of accounts of various transactions which needs special skills and knowledge. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
63 | Accounting does not follow certain policies, procedures and principles. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
64 | Buildings, plants are immovable assets. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
65 | Fixed assets are used in the production of goods and services. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
66 | If a sugar dealer purchase sugar for resale then the sugar is called goods. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
67 | Fixed assets are those which can be easily converted into cash. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
68 | A person to whom goods are sold on credit becomes a trade debtor to the business. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
69 | Every business involves exchange of goods and services. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
70 | Business transaction takes place throughout the year. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
71 | The amount is recorded as debit with a corresponding amount being recorded as debit. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
72 | For every debit account there must be one credit account. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
73 | The Double Entry rule can be helpful when there are no mistakes in the Financial Records. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
74 | First stage of preparing financial statements starts with source documents of the business. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
75 | There is a ledger account for every Assets, Liabilities, expenses and revenue. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
76 | The trial balance shows all the accounts in the General Ledger. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
77 | The statement of financial performance does not show the results of the firm. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
78 | No the entries made in the journal must be posted into ledger. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
79 | A manager cannot get the information of transactions from the journals. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
80 | Once the journals are posted, the monetary amounts are then transferred to the general ledgers. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
81 | It is quite natural that businessman is interested in knowing whether his business is running in profit or in loss. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
82 | Preparation of Final Account is only possible after the preparation of Balance Sheet. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
83 | If the final price exceeds the Cost price then it will bring Gross Profit. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
84 | The difference between the two sides of the Trading Account shows that either it is profit or a loss. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
85 | All the expenses occurred in the business is divided into two parts. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
86 | The total of assets and Liabilities must tally with each other. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
87 | With the help of the management-decision the managers cannot maintain their work scheduled properly | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
88 | Price of a company product is to be revised twice or more than that as per the market demand. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
89 | The voluminous data in the financial report does not show the performance of the business. | TRUE |
FALSE | ||
True/False | ||
Question ID | Questions | Options |
90 | Management Accounting deals with the internal operation of the organization. | TRUE |
FALSE | ||
Match the following | ||
Question ID | Question | Options |
91 | Classification | It is concerned with the systematic analysis of recorded data in such a way that the transactions of similar classes are classified under appropriate heading. |
Controlling | It helps to identify strong areas of performance and also points out the individuals or departments to be rewarded. | |
Protecting | It protects the properties of the business by recording them as per the date and showing them in the balance sheet. | |
Summarising | It is concerned with the presentation of classified data in such a manner that the management can figure out which data is required for them in decision making | |
Match the following | ||
Question ID | Question | Options |
92 | Management | It needs accounting information to review the firm’s activity, short term planning, long term planning and profitability etc |
Creditors | They are both short term and long term. | |
Employees | They need the account information to know about the stability and profitability of the employers | |
Tax authorities | This need information to access the tax liabilities of an enterprise. | |
Match the following | ||
Question ID | Question | Options |
93 | Capital | Funds brought by the owners to start a business |
Assets | It may be fixed, current and liquid. | |
Liability | The amount which is to be paid in future with respect to payment towards acquisition of an asset or performance of a service. | |
Goods | Commodities and articles purchased for resale. | |
Match the following | ||
Question ID | Question | Options |
94 | Accounting equation | In double entry accounting, a company’s assets are equal to the company’s Liabilities plus owner’s equity. |
Personal accounts | They are accounts of person, firms, organizations, companies and institutions etc. | |
Real accounts | Accounts related to properties and assets of a businessman. | |
Nominal accounts | All items of expenses and losses, income and gain come under this account | |
Match the following | ||
Question ID | Question | Options |
95 | Cash Receipts Journals | It records all the funds coming to the business in the form of either cash or cheque. |
Cash Payment journals | It records all cash and cheque paid. | |
Sales Journals | It records all sales trading stocks like, inventories on credit. | |
Sales Return and Allowances Journal | It records the returns of credit sales. | |
Match the following | ||
Question ID | Question | Options |
96 | Date Column | It is not necessary to write the year because it already mentioned in the beginning of the page. |
Particular Column | It is one of the most important columns in the Journal. | |
Debit Amount Column | In this column, the amount of transaction is written against the word “Or” in particular column on that time. | |
Credit Amount Column | In this column, the amount of transaction is written against the name of the account credited on that time. | |
Match the following | ||
Question ID | Question | Options |
97 | Periodical Balance Form | In this type of ledger the page is divided into two halves, left hand side is called debit side and right hand side is called as credit side. |
Running Balance Form | This form of ledger is much similar structure of Journal, with a single difference is that it contains an extra column with heading “Balance” at the end. | |
In the Ledger | Locate the corresponding account | |
In the Journal | Posting the ledger is usually made periodically. | |
Match the following | ||
Question ID | Question | Options |
98 | Error of Commission | These errors are clerical in nature. |
Error of Omission | This may be recorded at the time of recording the transaction in the book of original entry or while posting to the ledger. | |
Error of Principle | There are some rules while making entries in the book of accounts. | |
Offsetting Error (Compensating Error) | When two or more errors are committed in such a way that the net effect of such errors on debit and credit side becomes nil, then that type of error | |
Match the following | ||
Question ID | Question | Options |
99 | Opening Stock | Stock on hand at the commencement of the year or period |
Closing Stock | It represents the value of goods at the end of the Trading Account | |
Purchases | It indicates total purchases both in credit and cash | |
Direct Expenses | Wages | |
Match the following | ||
Question ID | Question | Options |
100 | Selling Expenses | Carriage Outward, Travelling Expenses, Advertising |
Office Expenses | Office salary, Rent, Tax, Stationary etc | |
Maintenance Expenses | Repairs, Renewals and Depreciation | |
Financial Expenses | Interest paid on loan, Discount allowed etc |