1. Which of the following is time span into which the total life of a business is divided for the purpose
of preparing financial statements?
a) Fiscal year
b) Calendar year
c) Accounting period
d) Accrual period
2. If the total assets of the company amount to Rs 1,50,000 and owner’s equity is Rs 70,000,the
amount of liabilities will be
a) Rs 70,000
b) Rs 80,000
c) Rs 90,000
d) Rs 1,00,000
3. The system of recording transaction based on dual aspect concept is called
a) Double account system
b) Double entry system
c) Single entry system
d) None of these
4. The convention of conservatism is applicable
a) In providing for discount on creditors
b) In making provision for bad doubtful debts
c) Providing depreciation
d) None of these
5. Rules of action or conduct adopted by the accountants universally while recording accounting
transaction
a) Accounting convention
b) Accounting concepts
c) Accounting principles
d) None of these
6. Which of the following items would not fall under the definition of an asset?
a) Land
b) Machine
c) Cash
d) Milk
7. Basic assumptions or conditions upon which the science of accounting is based.
a) Accounting convention
b) Accounting concepts
c) Accounting principles
d) None of these.
8. Which of the following is time span into which the total life of a business is divided for the purpose
of preparing financial statements?
a) Fiscal year
b) Calendar year
c) Accounting period
d) Accrual period
9. The system of recording based on dual aspect concept is called:
a) Double account system
b) Double entry system
c) Single entry system
d) All the above
10. Preliminary expenses are recorded in ______________
a) Equity and liabilities-Liability side of B/S
b) Current liabilities- Liability side of B/S
c) Fixed assets- Asset side of B/S
d) Asset side of B/S