1. Management accounting is applicable to
a) Service entities
b) Manufacturing entities
c) Non profit entities
d) All of these
2. Insurance prepaid is shown as
a) Current assets
b) Current liabilities
c) Fixed asset
d) Fixed liability
3. 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
4. Goods given as samples should be credited to:
a) Advertisement account
b) Sales account
c) Purchase account
d) None of the above
5. Investment of X company profit in shares of other company PQR Pvt. ltd are recorded in
a) Asset side of Balance Sheet
b) Liability side of Balance Sheet
c) Profit & Loss a/c
d) Not recorded in Balance Sheet
6. Sales made to Mahesh for cash should be debited to
a) Cash account
b) Mahesh Account
c) Sales account
d) Purchase account
7. Income tax paid by a sole proprietor on his business income should be:
a) Debited to trading account
b) Debited to profit and loss account
c) Deducted from capital account in the balance sheet
d) None of the above
8. 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
9. Which of the following is not an example of real a/c:
a) Machinery
b) Building
c) Cash
d) Creditor
10. Payment received from Debtor
a) Decreases the Total Assets
b) Increases the Total Assets
c) Results in no change in the Total Assets
d) Increases the Total Liabilities