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Questions and Answers
What is the definition of inter-state supply?
What is the definition of inter-state supply?
Which of the following statements about the Trial Balance is true?
Which of the following statements about the Trial Balance is true?
From which document can posting to the ledger be carried out?
From which document can posting to the ledger be carried out?
What is the primary objective of preparing the Trial Balance?
What is the primary objective of preparing the Trial Balance?
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What type of error occurs when there is a difference between Capital and Revenue Expenditure?
What type of error occurs when there is a difference between Capital and Revenue Expenditure?
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Gross Profit or Gross Loss is calculated using which of the following?
Gross Profit or Gross Loss is calculated using which of the following?
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Which account should Fuel and Power expenses be charged to?
Which account should Fuel and Power expenses be charged to?
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What is included in the Profit & Loss account?
What is included in the Profit & Loss account?
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Which of the following is not an intangible asset?
Which of the following is not an intangible asset?
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How many components are there in final accounts?
How many components are there in final accounts?
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What does the Balance Sheet represent?
What does the Balance Sheet represent?
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When is the Profit & Loss account typically prepared?
When is the Profit & Loss account typically prepared?
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Closing Stock is recorded in which of the following accounts?
Closing Stock is recorded in which of the following accounts?
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What account is debited when goods are returned by a customer?
What account is debited when goods are returned by a customer?
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What type of accounting focuses primarily on the cost of production?
What type of accounting focuses primarily on the cost of production?
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Which type of account does Dividend Income fall under?
Which type of account does Dividend Income fall under?
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What is the first step in the bookkeeping process?
What is the first step in the bookkeeping process?
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Who qualifies as an internal user of accounting information?
Who qualifies as an internal user of accounting information?
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Under the Traditional Approach of accounting, what are the classifications of accounts?
Under the Traditional Approach of accounting, what are the classifications of accounts?
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What does the left-hand side of a ledger account represent?
What does the left-hand side of a ledger account represent?
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Which basis of accounting records transactions when cash is received or paid?
Which basis of accounting records transactions when cash is received or paid?
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What does a balance sheet primarily tabulate?
What does a balance sheet primarily tabulate?
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Which of the following statements about closing stock is correct?
Which of the following statements about closing stock is correct?
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Which of the following is considered an example of indirect expense?
Which of the following is considered an example of indirect expense?
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What is the correct classification of 'Goodwill'?
What is the correct classification of 'Goodwill'?
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Which of the following describes a current asset?
Which of the following describes a current asset?
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Which of the following is not included in the Profit and Loss Account?
Which of the following is not included in the Profit and Loss Account?
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What is the formula to calculate Net Sales?
What is the formula to calculate Net Sales?
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Which of the following is an example of a business liability?
Which of the following is an example of a business liability?
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Which accounting concept ensures that revenue and expenses are recognized in the same accounting period?
Which accounting concept ensures that revenue and expenses are recognized in the same accounting period?
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Which of the following is a characteristic of Ind AS?
Which of the following is a characteristic of Ind AS?
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Which type of account is 'Bank' classified under in the classification of accounts?
Which type of account is 'Bank' classified under in the classification of accounts?
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Which accounting convention emphasizes the practice of recording expenses or losses when they are probable but not recording revenues until they are realized?
Which accounting convention emphasizes the practice of recording expenses or losses when they are probable but not recording revenues until they are realized?
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Which of the following is the first step in the accounting process?
Which of the following is the first step in the accounting process?
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Books of original entry are also known as:
Books of original entry are also known as:
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Which of the following is NOT recorded in a journal?
Which of the following is NOT recorded in a journal?
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The primary purpose of preparing a trial balance is to:
The primary purpose of preparing a trial balance is to:
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Which process is essential for ensuring the mathematical accuracy of accounts?
Which process is essential for ensuring the mathematical accuracy of accounts?
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Which of the following errors cannot be identified by reviewing a trial balance?
Which of the following errors cannot be identified by reviewing a trial balance?
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If a trial balance does not balance, where is the discrepancy temporarily recorded?
If a trial balance does not balance, where is the discrepancy temporarily recorded?
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In what situation is redrafting a trial balance necessary?
In what situation is redrafting a trial balance necessary?
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Which example best represents an error of omission?
Which example best represents an error of omission?
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What action is required to rectify a wrongly posted sales transaction attributed to a purchases account?
What action is required to rectify a wrongly posted sales transaction attributed to a purchases account?
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What is the consequence of posting a debit entry incorrectly as a credit entry in the ledger?
What is the consequence of posting a debit entry incorrectly as a credit entry in the ledger?
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Which of the following best characterizes capital expenditure?
Which of the following best characterizes capital expenditure?
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Study Notes
Fundamentals of Accounting - MCQ Questions
- Original Book of Entry: The Journal is known as the "Original Book of Entry".
- Accounting Equation: Assets = Liabilities + Owner's Equity.
- Plant and Machinery Account Type: Plant and Machinery is a Real Account.
- Modern Accounting Approach Account Classification: Accounts are classified under three groups.
- Characteristic of Accounting Information: Reliable accounting information is a characteristic.
- Basis of Accounting: Cash Basis and Accrual Basis are two fundamental bases of accounting.
- Ledger Definition: A ledger is also known as the "book of original entry".
- Double Entry Accounting System: Accounts of both aspects of a transaction are recorded in this accounting system.
- Ledger - Information Excluded: Cash Discount information is not shown in a ledger.
- Financial Year Period: April 1st to March 31st.
- Accounting Concept - Currency Unit: A business should only record transactions that can be stated in terms of a currency unit.
- Goods Returned by Customer Account: This will be recorded in the Sales Return Account.
- Production Cost Accounting: Cost accounting is concerned with the cost of production.
- Dividend Income: Dividend Income is categorized as a Nominal Account.
- First Step in Bookkeeping: Identifying transactions and events is the first step in the bookkeeping process.
- Internal User of Accounting Information Examples: Employees, customers, and government personnel are examples of internal users of accounting information.
- Traditional Accounting Approach Classification of Accounts: Personal, real, and nominal accounts are the categories in the traditional accounting approach.
- Trial Balance - Base: Balance sheet, cash account, and cash flow statement are the bases for preparing a trial balance.
- Owner's Capital in Accounting: Owner's capital is classified as a Personal Account under the traditional accounting approach.
- Accounting Basis - Recording Transactions: The accrual basis records transactions as they are earned or incurred, not when cash changes hands.
- Salary Account Type: Salary account is a Nominal Account.
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Description
Test your knowledge with this multiple-choice quiz on the fundamentals of accounting. Covering key concepts such as the accounting equation, journal, ledger, and classification of accounts, this quiz is designed for students to assess their understanding of essential accounting principles.
