Accounting - Questions and Answers for Competitive Exams | GkSeries

1. What is the main objective of financial accounting?

1. [A] profit and loss account only
2. [B] balance sheet only
3. [C] both P & L account and balance sheet
4. [D] trial balance only

Answer: Option [C]

2. According to which concept the owners are considered to be different from the business

1. [A] business entity concept
2. [B] going concern concept
3. [C] money measurement concept
4. [D] accounting period concept

Answer: Option [A]

3. According to which concept all the transactions are measurable in the terms of money are recorded in accounts?

1. [A] business entity concept
2. [B] going concern concept
3. [C] money measurement concept
4. [D] accounting period concept

Answer: Option [C]

4. While putting the value or price of an entity in financial records the lowest price is recorded not the current price or current market value. This is known as

1. [A] Business Entity Concept
2. [B] Conservatism
3. [C] Expenditure Concept
4. [D] Money Measurment Concept

Answer: Option [B]

5. Which of the following is related to Scientific system of maintaining account?

1. [A] single entry
2. [B] double entry
3. [C] contra entry
4. [D] book entry

Answer: Option [B]

6. Which of the following defines outstanding salary account?

1. [A] natural personal account
2. [B] artificial personal account
3. [C] representative personal account
4. [D] real account

Answer: Option [C]

7. Debit the receiver, credit the giver is rule for

1. [A] personal account
2. [B] tangible real account
3. [C] nominal account
4. [D] representative personal account

Answer: Option [A]

8. Interest earned is a

1. [A] personal account
2. [B] real account
3. [C] nominal account
4. [D] Intangible real account

Answer: Option [C]

9. Investment is a

1. [A] personal account
2. [B] real account
3. [C] nominal account
4. [D] representative personal account

Answer: Option [B]

10. Trading account is a

1. [A] personal account
2. [B] real account
3. [C] nominal account
4. [D] none of the above

Answer: Option [C]

11. Profit and loss account starts with

1. [A] net profit
2. [B] net loss
3. [C] gross profit
4. [D] none of the above

Answer: Option [C]

12. All revenue incomes are credited to

1. [A] manufacturing account
2. [B] trading account
3. [C] profit and loss account
4. [D] none of the above

Answer: Option [C]