CBSE Questions for Class 9 Elements Of Book Keeping And Accountancy Accounting Equation Effects Quiz 7 - MCQExams.com

Allocating the cost of an asset over its useful life is an application of __________.
  • Going concern concept
  • Matching concept
  • Accounting period concept
  • Cost concept
Going concern concept assumes that____________________.
  • The business entity would continue to operate independent of the life of the proprietor/owner
  • Duration of the business is limited to the life span of the owner/proprietor
  • Life of the business is defined by the contractual agreement
  • Business is for short term
Which of the following is/are example(s) of application of conservatism concept?
  • Not providing for discount of creditors
  • Charging small value capital items as revenue expenses
  • Amortization of intangible assets like goodwill which has indefinite life
  • All the three
What is the underlying principle that supports the immediate recognition of a loss?
  • Matching
  • Conservatism
  • Consistency
  • Materiality
Provision for doubtful debts is made because of ________.
  • Materiality
  • Prudence
  • Going concern
  • Accrual
Going concern concept is not followed ________.
  • By Banks
  • By Co-operative societies
  • In Joint Venture Accounting
  • Depreciation Accounting
Depreciating fixed assets over its useful life is an example of which of the following concept/convention ________________.
  • Money measurement
  • Going concern
  • Cost concept
  • Matching concept
When inventory is valued at the lower of cost or market,price, we are under the influence of________.
  • Conservatism concept
  • Consistency concept
  • Materiality concept
  • Cost concept
Matching principle requires __________.
  • expenses and revenue should be incurred simultaneously
  • expenses incurred in an accounting period should be matched with the revenue recognized in that period
  • expenses should not exceed revenue
  • expenses should be commensurate with income
Revenue is generally recognized when earning process is virtually complete and significant risks and rewards have been exchanged. This is an application of _________ principle.
  • Consistency
  • Matching
  • Realization
  • Conservatism
The lower of cost and market basis of valuing inventories is an example of________.
  • Comparability
  • The cost principle
  • Conservatism
  • Consistency
Net realizable value means:-- 
  • Estimated selling price
  • Actual selling price
  • Actual or estimated selling price in the ordinary course of business less cost of completion and estimated cost necessary to be incurred to make the sale.
  • Actual selling price less sales commission.
Notes to financial statement about law suits, contractual commitment etc. are required to be shown in the financial statement by way of footnote or in notes to accounts under which of the following principles?
  • Disclosure Concept
  • Window Dressing
  • CA Institutes Requirement
  • Consistency Principles
Postponement of anticipated gains is an application of
  • Conservatism concept
  • Dual concept
  • Going concern
  • Disclosure
Which of the following statement is correct ___________.
  • Materiality convention demands that material facts which influence the decision maker must be suitable disclosed.
  • All the method of charging depreciation are accepted by income - tax Department.
  • Disclosure concept requires that all information material or immaterial should be disclosed.
  • Income not adding to cash balance is not a business income.
Inventory valuation method is guided by which of the following accounting concept ______________.
  • Business entity
  • Conservatism
  • Materiality
  • Double entry
At what price goods pending approval or return as on the last day of accounting year are valued?
  • Cost price
  • Selling price
  • Average price
  • Latest price
State whether the following statement is 'True' or 'False':
In accounting, all business transactions are recorded as having dual aspect.
  • True
  • False
According to money measurement concept which of the following will be recorded in the books of account?
  • Health of the chairman of the company
  • Quality control in the business
  • Value of the building
  • All of the above
When applied to the balance sheet, the convention of conservatism results in __________.
  • Understatement of assets
  • Understatement of liabilities and provisions
  • Overstatement of capital
  • All of these
No profit should be anticipated but every possible loss should be provided for.
  • True
  • False
The equality of Total Assets and Total Liability is known as........
  • Accounting equation
  • Accounting concept
  • Accounting jugglery
  • Accounting practice
The concept of Disclosure is applicable to ..
  • All material and immaterial transactions
  • Only material transactions
  • Transactions reducing profit only
  • None
The practice of appending note regarding contingent liabilities in the accounting statements is in pursuant to __________.
  • convention of consistency
  • money measurement concept
  • convention of disclosure
  • none of the above
The basis of revenue recognition often used in hire-purchase transaction is____________.
  • Cash basis
  • Sales basis
  • Production basis
  • None of these
Cost concept envisages the recording of which of the following in the books of accounts?
  • An asset at its cost
  • Knowledge and will acquired by the business executive
  • Changes effected because of some political events
  • All of the above
During the financial year the plant of the company remained shut down due to major fault leading to stoppage of production for three months.The Accountant is keen to disclose this fact by way of notes to the accounts. He is guided by the concept of
  • Materiality
  • Consistency
  • Disclosure
  • Matching
The entity concept of accounting is applicable to _________.
  • Sole proprietary concern
  • Partnership firm
  • Joint stock company
  • All of the above
Which of the following is accounting equation?
  • Capital = Assets + Liabilities
  • Capital = Assets - Liabilities
  • Assets = Liabilities - Capital
  • Liabilities = Assets + Capital
The accounting equation is based on __________.
  • Going concern concept
  • Dual aspect concept
  • Money measurement concept
  • All of the above
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Practice Class 9 Elements Of Book Keeping And Accountancy Quiz Questions and Answers