CBSE Questions for Class 9 Elements Of Book Keeping And Accountancy Accounting Equation Effects Quiz 2 - MCQExams.com

Profit & Loss Account is prepared for a period of one year by following __________.
  • Consistency concept
  • Conservatism concept
  • Accounting period concept
  • Cost concept
Fixed assets and current assets are categorized as per concept of ________________.
  • Separate entity
  • Going concern
  • Consistency
  • Time period
The amount brought in by the proprietor in the business should be credited to _____________.
  • Cash A/c
  • Capital A/c
  • Drawing A/c
  • Bank A/c
Which of the following is not related with Money Measurement Concept?
  • All business transaction should be expressed only in Money
  • The transactions which cannot be expressed in money, will not be recorded in accounting books
  • Business is treated as separate from the proprietor
  • None of these
The convention of conservatism is applicable ______________.
  • In providing for discount on creditors
  • In making provision for bad doubtful debts
  • Providing depreciation
  • None of these
Information about an item is _______ if its omission or misstatement might influence the financial decision of the users taken on the basis of that information.
  • Concrete
  • Complete
  • Immaterial
  • Material
The convention of disclosure implies that all material information should _____________.
  • Be disclosed with the financial statements
  • Be disclosed as per choice
  • Not be disclosed
  • None of these
Which of the following equation is related with Dual Aspect Concept?
  • Total Assets = Total Liabilities
  • Total Assets = Capital + Outsider's Liabilities
  • Capital = Total Assets - Outsider's Liabilities
  • All of the above
Creating provision against fluctuation in the price of investment is application of accounting concept _____________________.
  • Convention of conservatism
  • Convention of full disclosure
  • Convention of consistency
  • None of these
Which of the following is not an Accounting concept ?
  • Matching concept
  • Dual Aspect concept
  • True and Fair concept
  • Going concern concept
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 _____________.
  • Rs 70,000
  • Rs 80,000
  • Rs 90,000
  • Rs 1,00,000
Accounting is the process of matching __________.
  • Benefits & costs
  • Revenues & costs
  • Cash Inflow & cash outflow
  • Potential & real performance
"Accountant should follow the same principles of accounting continuously", is as per which accounting convention ____________________.
  • Convention of conservatism
  • Convention of full disclosure
  • Convention of consistency
  • None of these
Going concern concept assumes __________________.
  • Business as a dissolving concern
  • Business on relishing values
  • Business as a going concern
  • Asset = liability
Business entity concept distinguishes between ________________.
  • Individual and business
  • Business and business
  • Owners
  • Debtors and creditors
Accounting concepts are based on ___________________.
  • Certain assumption
  • Certain facts and figures
  • Certain accounting records
  • Practice experience
Concept of conservatism refers to taking into account ___________.
  • All profit
  • Only cash profit
  • Only profit realised
  • Profit realised and all possible losses
Which of the following, equations properly represents a derivation of the fundamental accounting equation?
(a) Assets + Liabilities = Owner Equity
(b) Asset = Owner Equity
(c) Cash = Assets
(d) Assets - Liabilities = Owner Equity
  • Only (a)
  • Both (a) & (b)
  • All (a), (b), (c), (d)
  • None of these
The cost concept records the figures at _______________.
  • Market values
  • Actual amount paid
  • Actual amount or market values whichever is less
  • MRP maximum retail price
Which of the following is true for: -
"In accounts recording is done of _________".
  • Only financial transaction
  • Only non-financial transaction
  • Both A and B
  • Personal transaction of Proprietor
In stock valuation, application of the principle 'at cost price or market price whichever is lower' will result in the valuation of stock sometimes at cost price and at other times at market price. This is an application of the principle of __________.
  • Consistency
  • Materiality
  • Conservatism
  • Disclosure
In accounting all business transaction are recorded as having ______________.
  • Single aspect
  • Dual aspect
  • Triple aspect
  • None of these
The full disclosure principle, as adopted by the accounting professionals, is best described by which of the following?
  • All information related to an entity's business and operating objectives is required to be disclosed in the financial statements
  • Information about each account balance appearing in the financial statements is to be included in the notes to the financial statements
  • Enough information should be disclosed in the financial statements so a person wishing to invest in the stock of the company can make a profitable decision
  • Disclosure of any financial facts significant enough to influence the judgment of an informed reader
Fixed assets are recorded at _______.
  • current cost
  • original cost
  • depreciated cost
  • all of the above
Which concept is not related to identification, measurement and recording of financial transactions __________________.
  • Entity concept
  • Dual aspect concept
  • Cost concept
  • Going concern concept
The fundamental accounting equation, Assets = Equities + Liabilities is the formal expression of ____________.
  • Dual aspect concept
  • Matching concept
  • Going - concern concept
  • Money measurement concept
  • Both Assertion and Reason are correct and Reason is the correct explanation for Assertion.
  • Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion.
  • Assertion is correct but Reason is incorrect.
  • Both Assertion and Reason are incorrect.
Concepts related to income measurement and preparation of financial statements ___________.
  • Going concern concept
  • Accounting Period concept
  • Matching concept
  • All of the above
Double entry system was invented by __________.
  • Luca Pacioli
  • J. Batty
  • H.J,. Wheldon
  • Vanskicle
Revenue is generally recognised as being earned at that point of time when ____________.
  • Sale is effected
  • Cash is received
  • Production is completed
  • Debts are collected
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