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Subject: Financial Management
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 1 | Which of the following can be defined as the reporting of the financial position and performance of a firm through the financial statement issued to the external users on a periodic basis? | Financial Accounting |
| Recording | ||
| Reporting | ||
| Transactions | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 2 | What is concerned with providing financial results to managements, creditor, investors, bank, government, stock exchange, brokers and employees, etc., for decision making? | Recording |
| Classification | ||
| Reporting | ||
| Controlling | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 3 | What helps to identify strong areas of performance and also points out the individuals or departments to be rewarded? | Recording |
| Controlling | ||
| Reporting | ||
| Classification | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 4 | Which of the following protects the properties of the business by recording them as per the date and showing them in the balance sheet? | Protecting |
| Controlling | ||
| Reporting | ||
| Classification | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 5 | What is capital used to purchase fixed asset called? | Fixed capital |
| Assets | ||
| Liability | ||
| Goods | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 6 | Which of the following is a person who owes something to business? | Debtor |
| Creditor | ||
| Employer | ||
| Employee | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 7 | Which of the following is concerned with providing financial results to management? | Recording |
| Controlling | ||
| Reporting | ||
| Classification | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 8 | Which of the following also involves in the preparation of the trial balance which contains the summary of the balances of the ledger? | Recording |
| Controlling | ||
| Reporting | ||
| Summarising | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 9 | Which of the following have interest in information about the continuation of an enterprise when they have established a long term involvement the enterprise? | Employees |
| Employers | ||
| Customers | ||
| Tax Authorities | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 10 | Which of the following is not the function of Financial Accounting? | Recording |
| Reporting | ||
| Planning | ||
| Classification | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 11 | What is processing of transactions in accounting called? | The Double Entry recording |
| The amount | ||
| Reporting | ||
| Transactions | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 12 | Which of the following is derived from the French word ‘jour’ which means a day? | General Ledger |
| Business transaction | ||
| Record | ||
| Journal | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 13 | What means a daily record? | Journal |
| Creditor | ||
| Ledger | ||
| Cash Receipts | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 14 | Which of the following records all the purchases of inventory on credit? | Cash Payment journals |
| Sales Journals | ||
| Sales Return and Allowances Journal | ||
| Purchase Journal | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 15 | Which of the following records the return of credit purchases or allowances that were previously purchased on credit? | Purchase Return and Allowance Journal |
| Sales Journals | ||
| Sales Return and Allowances Journal | ||
| Purchase Journal | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 16 | Which of the following records all transactions that are not recorded in any of the specialised journals? | Purchase Return and Allowance Journal |
| sales Journals | ||
| General Journal | ||
| Purchase Journal | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 17 | Which of the following is the principle books of accounts which contain all the account information of a business? | Account |
| Journals | ||
| Ledger | ||
| Balance Sheet | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 18 | How many type of ledger are there? | Five |
| Two | ||
| Four | ||
| Three | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 19 | What is Periodical Balance Form also called? | Balance form |
| T Account | ||
| Running Form | ||
| Nominal | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 20 | Who cannot get the information of transactions from the journals? | Employees |
| Investors | ||
| A businessman | ||
| Management | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 21 | Which of the following is required to find out the financial position of the organisation? | Trading Account |
| Balance sheet | ||
| Trading & Profit | ||
| Loss Account | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 22 | What refers to buying and selling of goods? | Trading |
| Selling | ||
| Gross Profit | ||
| Credit | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 23 | If the cost price of machinery is Rs 50,000 and it is sold in Rs.60, 000 then what is the gross profit? | The gross profit is Rs. 5, 000 |
| The gross profit is Rs.60, 000 | ||
| The gross profit is Rs.50, 000 | ||
| The gross profit is Rs.10, 000 | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 24 | Which of the following furnishes only those data which are relevant for the decision making? | Balance form |
| Management Accounting | ||
| Accounting | ||
| Profit | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 25 | Which of the following reveals Gross Profit or Gross Loss? | Trading |
| Gross Profit | ||
| Direct expenses | ||
| Indirect expenses | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 26 | Which of the following is defined as “a Statement which sets out the Assets and Liabilities of a business firm and which serves to ascertain the financial position of the same on any particular date? | General Ledger |
| Business transaction | ||
| Record | ||
| Balance Sheet | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 27 | Which of the following account is prepared to find out the difference between Selling price and Cost price? | Balance sheet |
| Profit and Loss Account | ||
| Trading Account | ||
| Trial Balance | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 28 | Which of the following is stock on hand at the commencement of the year or period? | Opening Stock |
| Closing Stock | ||
| Purchases | ||
| Purchase return Inward and Outward | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 29 | Which of the following has been defined in many ways by various experts? | Final Account |
| Journals | ||
| Managerial accounting | ||
| Balance Sheet | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 30 | Which of the following furnishes only those data which are relevant for the decision making? | Balance form |
| Management Accounting | ||
| Accounting | ||
| Profit | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 31 | _____________ decision making can be taken by the help of financial accounting | Controlling |
| Market | ||
| Employee | ||
| Managerial | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 32 | Current liability has to be paid within a _________. | month |
| day | ||
| period | ||
| year | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 33 | Financial accounting is used for ___________ and maintenance of accounts of various transactions which needs special skills and knowledge. | recording |
| reporting | ||
| managing | ||
| accounting | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 34 | ______________ frequently requires timely financial information that deals with different aspects of the firm. | Global market |
| Employers | ||
| Management | ||
| Customers | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 35 | Current assets are those which are receivable within a _________. | day |
| year | ||
| month | ||
| decade | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 36 | Systematically __________ all the business events posting through journals and ledgers to finally prepare financial statements like profit and loss account and balance sheet. | reporting |
| recording | ||
| planning | ||
| classification | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 37 | The accounting information should be presented in a truthful, accurate and complete manner and capable of being verified by the potential __________. | employers |
| employees | ||
| investors | ||
| Creditors | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 38 | ____________ and their agencies are interested in the allocation of resources and their activities of enterprises. | Employees |
| Investors | ||
| Government | ||
| Management | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 39 | The __________ in the entire business are either in a credit basis or in cash basis. | transactions |
| profit | ||
| business | ||
| cost | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 40 | In double entry accounting, a company’s _________ are equal to the company’s Liabilities plus owner’s equity. | liabilities |
| assets | ||
| profits | ||
| losses | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 41 | The _________ always recorded on the left-hand side while the credit is on right hand side. | cash |
| record | ||
| debit | ||
| transactions | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 42 | If the total debit does not equal to the total credit then there must be a _____ entry. | correct |
| wrong | ||
| two | ||
| no | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 43 | ____________ in revenue account increases the credit balance. | Increase |
| Decrease | ||
| Loss | ||
| Expense | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 44 | __________ items decrease the owner’s equity so they have debit balance. | Increased |
| More | ||
| Less | ||
| Expenses | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 45 | The flow of information starts with _______ data and gradually transformed into financial statements. | raw |
| assets | ||
| old | ||
| client | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 46 | Journal is day book which ________ business history in date wise manner. | summarises |
| report | ||
| record | ||
| knows | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 47 | If the managers want to know that how the ________ are going on for the current year then they check out the sales of general ledger | business |
| market | ||
| sales | ||
| management | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 48 | There are ______ types of ledger | three |
| five | ||
| two | ||
| four | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 49 | _______the entries made in the journal must be posted into ledger | Record |
| Higher | ||
| All | ||
| None of | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 50 | Place the page of _____ where the transferred information is located in the post reference column of the ledger account. | Journal |
| Ledger | ||
| Transfer | ||
| Posting | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 51 | The importance of ________ account is to inform the businessman about the business progress and financial position at the right time in the right way. | final |
| profit | ||
| project | ||
| Journal | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 52 | ________ & Profit and Loss Account is prepared to find out Profit and Loss. | Final |
| Report | ||
| Trading | ||
| Transactions | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 53 | If all the records are correctly recorded in the book, the _________ sheet must tally automatically. | balance |
| credit | ||
| report | ||
| general | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 54 | Sales return must be ___________ from the Total Sales to get Net Sale | divided |
| multiplyied | ||
| added | ||
| subtracted | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 55 | The presentation of accounting ____________ in such a way as to assists management in the creation of policy and day to day operation of an undertaking. | journal |
| information | ||
| management | ||
| policy | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 56 | Management Accounting Information is useful to _____________. | business |
| market | ||
| management | ||
| accounts | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 57 | The main motive of Management Accounting is to serve the management while making the _________ for the organisation. | work |
| function | ||
| decision | ||
| schedule | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 58 | There should be a _________ approach for a logical decision-making process. | management |
| quantitative | ||
| profit | ||
| qualitative | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 59 | _______________ of accounting is much useful than Financial Report as it provides some insight impact of rise in price of the product. | Journal |
| Log book | ||
| Cost Book | ||
| Ledger | ||
| Multiple Choice Single Response | ||
| Question ID | Question | Options |
| 60 | In ____________ accounting there is a great importance to figures worked out accurately. | general |
| financial | ||
| management | ||
| project | ||
| True/False | ||
| Question ID | Questions | Options |
| 61 | Controlling also points out people who are underperformed | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 62 | Financial accounting is used for recording and maintenance of accounts of various transactions which needs special skills and knowledge. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 63 | Accounting does not follow certain policies, procedures and principles. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 64 | Buildings, plants are immovable assets. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 65 | Fixed assets are used in the production of goods and services. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 66 | If a sugar dealer purchase sugar for resale then the sugar is called goods. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 67 | Fixed assets are those which can be easily converted into cash. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 68 | A person to whom goods are sold on credit becomes a trade debtor to the business. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 69 | Every business involves exchange of goods and services. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 70 | Business transaction takes place throughout the year. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 71 | The amount is recorded as debit with a corresponding amount being recorded as debit. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 72 | For every debit account there must be one credit account. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 73 | The Double Entry rule can be helpful when there are no mistakes in the Financial Records. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 74 | First stage of preparing financial statements starts with source documents of the business. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 75 | There is a ledger account for every Assets, Liabilities, expenses and revenue. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 76 | The trial balance shows all the accounts in the General Ledger. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 77 | The statement of financial performance does not show the results of the firm. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 78 | No the entries made in the journal must be posted into ledger. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 79 | A manager cannot get the information of transactions from the journals. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 80 | Once the journals are posted, the monetary amounts are then transferred to the general ledgers. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 81 | It is quite natural that businessman is interested in knowing whether his business is running in profit or in loss. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 82 | Preparation of Final Account is only possible after the preparation of Balance Sheet. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 83 | If the final price exceeds the Cost price then it will bring Gross Profit. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 84 | The difference between the two sides of the Trading Account shows that either it is profit or a loss. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 85 | All the expenses occurred in the business is divided into two parts. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 86 | The total of assets and Liabilities must tally with each other. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 87 | With the help of the management-decision the managers cannot maintain their work scheduled properly | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 88 | Price of a company product is to be revised twice or more than that as per the market demand. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 89 | The voluminous data in the financial report does not show the performance of the business. | TRUE |
| FALSE | ||
| True/False | ||
| Question ID | Questions | Options |
| 90 | Management Accounting deals with the internal operation of the organization. | TRUE |
| FALSE | ||
| Match the following | ||
| Question ID | Question | Options |
| 91 | Classification | It is concerned with the systematic analysis of recorded data in such a way that the transactions of similar classes are classified under appropriate heading. |
| Controlling | It helps to identify strong areas of performance and also points out the individuals or departments to be rewarded. | |
| Protecting | It protects the properties of the business by recording them as per the date and showing them in the balance sheet. | |
| Summarising | It is concerned with the presentation of classified data in such a manner that the management can figure out which data is required for them in decision making | |
| Match the following | ||
| Question ID | Question | Options |
| 92 | Management | It needs accounting information to review the firm’s activity, short term planning, long term planning and profitability etc |
| Creditors | They are both short term and long term. | |
| Employees | They need the account information to know about the stability and profitability of the employers | |
| Tax authorities | This need information to access the tax liabilities of an enterprise. | |
| Match the following | ||
| Question ID | Question | Options |
| 93 | Capital | Funds brought by the owners to start a business |
| Assets | It may be fixed, current and liquid. | |
| Liability | The amount which is to be paid in future with respect to payment towards acquisition of an asset or performance of a service. | |
| Goods | Commodities and articles purchased for resale. | |
| Match the following | ||
| Question ID | Question | Options |
| 94 | Accounting equation | In double entry accounting, a company’s assets are equal to the company’s Liabilities plus owner’s equity. |
| Personal accounts | They are accounts of person, firms, organizations, companies and institutions etc. | |
| Real accounts | Accounts related to properties and assets of a businessman. | |
| Nominal accounts | All items of expenses and losses, income and gain come under this account | |
| Match the following | ||
| Question ID | Question | Options |
| 95 | Cash Receipts Journals | It records all the funds coming to the business in the form of either cash or cheque. |
| Cash Payment journals | It records all cash and cheque paid. | |
| Sales Journals | It records all sales trading stocks like, inventories on credit. | |
| Sales Return and Allowances Journal | It records the returns of credit sales. | |
| Match the following | ||
| Question ID | Question | Options |
| 96 | Date Column | It is not necessary to write the year because it already mentioned in the beginning of the page. |
| Particular Column | It is one of the most important columns in the Journal. | |
| Debit Amount Column | In this column, the amount of transaction is written against the word “Or” in particular column on that time. | |
| Credit Amount Column | In this column, the amount of transaction is written against the name of the account credited on that time. | |
| Match the following | ||
| Question ID | Question | Options |
| 97 | Periodical Balance Form | In this type of ledger the page is divided into two halves, left hand side is called debit side and right hand side is called as credit side. |
| Running Balance Form | This form of ledger is much similar structure of Journal, with a single difference is that it contains an extra column with heading “Balance” at the end. | |
| In the Ledger | Locate the corresponding account | |
| In the Journal | Posting the ledger is usually made periodically. | |
| Match the following | ||
| Question ID | Question | Options |
| 98 | Error of Commission | These errors are clerical in nature. |
| Error of Omission | This may be recorded at the time of recording the transaction in the book of original entry or while posting to the ledger. | |
| Error of Principle | There are some rules while making entries in the book of accounts. | |
| Offsetting Error (Compensating Error) | When two or more errors are committed in such a way that the net effect of such errors on debit and credit side becomes nil, then that type of error | |
| Match the following | ||
| Question ID | Question | Options |
| 99 | Opening Stock | Stock on hand at the commencement of the year or period |
| Closing Stock | It represents the value of goods at the end of the Trading Account | |
| Purchases | It indicates total purchases both in credit and cash | |
| Direct Expenses | Wages | |
| Match the following | ||
| Question ID | Question | Options |
| 100 | Selling Expenses | Carriage Outward, Travelling Expenses, Advertising |
| Office Expenses | Office salary, Rent, Tax, Stationary etc | |
| Maintenance Expenses | Repairs, Renewals and Depreciation | |
| Financial Expenses | Interest paid on loan, Discount allowed etc |