CBSE Questions for Class 11 Commerce Accountancy Financial Statements 1 Quiz 13 - MCQExams.com

The primary objective of the trading account is to show the __________.
  • overall trading profit or loss for the period concerned
  • net trading profit or loss for the period concerned
  • profit or loss on the turnover of the goods sold in the period
  • difference between income earned and expenditure incurred in the period
Trading account is a _________ account.
  • personal
  • real
  • nominal
  • none of these
All accounts related to goods and direct expenses are recorded in ___________ account.
  • Trading
  • Profit and loss
  • Cash
  • Capital
All items of revenue concerning current year - whether received in cash or not - and all items of expenses - whether paid in cash or not - are considered in which account ?
  • Trading Account
  • Profit and Loss Account
  • Both Trading and Profit & Loss Account
  • None of the above
What is the journal entry for recording Outstanding wages ?
  • Wages A/c Debit

    To Profit & Loss A/c
  • Wages A/c Debit

    To Trading A/c
  • Wages A/c Debit

    To Wages Outstanding A/c
  • None of the above
Who among the following is a bear operator?
  • A stock broker who sells shares now and buys the same shares later.
  • An investor who expects the price of a security or that of the whole securities market to rise.
  • An investor who sells securities anticipation of being able to repurchase them later at a lower price.
  • A broker who indulges in rigging of share prices.
Control of management of the company mainly vests in hands of __________ .
  • Equity shareholders
  • Preference shareholders
  • Debenture-holders
  • All of these
A Profit is earned if _________.
  • assets exceeds Expenditure
  • income exceeds Expenditure
  • cash Inflow exceeds Cash Outflow
  • income exceeds Liabilities
Direct expenses means expenses directly related to production of goods and purchases of goods.
  • True
  • False
Journal entry for transfer of direct expenses is __________.
   Trading A/c  Dr.
         To Direct Expenses A/c
  • True
  • False
Entry for transfer of Gross profit is :
   Profit and Loss A/c    Dr.
            To Trading A/c
  • True
  • False
The amount paid for the permission to use mines, patents, copyrights etc. is known as __________ .
  • royalty
  • compensation
  • salary
  • all of the above
Entry for transfer of gross loss is -
  Trading A/c  Dr.
        To Profit and Loss A/c
  • True
  • False
Opening stock, purchases and direct expenses are credited to trading account.
  • True
  • False
Journal entry for transfer of closing stock is -
       Closing Stock A/c   Dr.
                 To Trading A/c
  • True
  • False
Sales includes cash or credit sales made during the year.
  • True
  • False
Journal entry for transfer of opening stock is -
   Trading A/c   Dr. 
          To Opening Stock A/c
  • True
  • False
Stock of goods in hand at the end of _________ year is known as closing stock.
  • calendar
  • accounting
  • assessment
  • previous
The expression 'firm' would include a _________________.
  • Company
  • LLP
  • HUF
  • AOP
Which of the following is the most valid reason for India to export gold to Bank of England in 1991?
  • To set up India-UK bilateral relationship
  • India returned UK gold
  • To meet foreign exchange crisis
  • For Investment in Bristish companies
The companies globalize their operations through defficient means ________________.
  • Exporting directly
  • Licensing / Franchising
  • Joint venture
  • All of the above
The objective of financial management is to ___________.
  • generate the maximum net profit
  • generate the maximum retained earnings
  • generate the maximum wealth for its shareholders
  • All of the above
American companies prepare their financial statement in Dollars whereas Japanese companies produce financial statement in Yen. This is an example of:
  • Stable monetary unit concept
  • Unit of measurement concept
  • Money value concept
  • Current swap concept
Fully paid-up shares are called ___________.
  • Securities
  • Stock
  • Dividends
  • Debentures
Which of the following is not an intangible asset __________.
  • stock
  • goodwill
  • trade mark
  • patents
Every registered taxable person shall be entitled to take credit of input tax in his return and such input tax credit shall be credited to _______________.
  • Personal Ledger Account
  • Refund account
  • Electronic Cash Ledger
  • Electronic Credit Ledger
If overtime is resorted to at the desire of the customer, then the overtime premium ____________________.
  • should be charged to costing profit and loss account;
  • should not be charged at all
  • should be charged to the job directly
  • should be charged to the highest profit making department
Which of the following capital is required for the registration of the company?
  • Issued capital
  • Subscribed capital
  • Authorized capital
  • Reserve capital
_________ is the expense which is unpaid at the end of the accounting period.
  • Outstanding expenses
  • Prepaid expenses
  • Proposed expenses
  • Working capital
All _________ expenses are recorded in the Trading A/c.
  • direct
  • indirect
  • cost
  • none of these
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