1. Material concept tell about
a) Disclosure of loss
b) Disclosure of profit
c) Disclosure of all information which are important for investor
d) Disclosure of all information which are important for management
2. Using "lower of cost and net realisable value(Market Value)" for the purpose of inventory valuation
is the implementation of which of the following concepts?
a) The going concern concept
b) The separate entity concept
c) The prudence concept
d) Matching concept
3. Which financial statement represents the accounting equation ASSETS = LIABILITIES + OWNER'S
EQUITY
a) Income Statement
b) Cash Flow Statement
c) Balance Sheet
d) Fund Flow Statement
4. Cost accounting aims at ascertain ______________ of product
a) Cost
b) Net profit
c) Gross profit
d) Selling price
5. The purpose of financial accounts is reporting to
a) Management only
b) Government only
c) Investor only
d) All of these
6. Financial accounting use data
a) Projected data
b) External data only
c) Historic data
d) Manager data only
7. What comes in is to be debited, what goes out is to be credited.
a) Rules of Personal
b) Rules of Real
c) Rules of Nominal
d) All of these
8. Payment of salary is recorded by:
a) Debiting salary a/c; crediting cash a/c
b) Debiting cash a/c; crediting salary a/c
c) Debiting employee a/c; crediting cash a/c
d) Debiting employee a/c; crediting salary a/c
9. Amortization of intangible Asset Such as Goodwill which has indefinite life is an example of
accounting concept
a) Conservatism Concept
b) Continuity Concept
c) Realisation Concept
d) Measurement Concept
10. ______________ cost refers to those cost which have already been incurred and cannot be altered
by any decision in the future.
a) Opportunity cost
b) Sunk Cost
c) Incremental cost
d) Decremental cost