This document contains a practice quiz on accounting concepts. It includes 15 multiple choice questions testing understanding of key terms like assets, liabilities, equity, income and expense accounts. The questions cover the balance sheet, distinguishing various types of assets, recognizing costs, and basic accounting calculations.
This document contains a practice quiz on accounting concepts. It includes 15 multiple choice questions testing understanding of key terms like assets, liabilities, equity, income and expense accounts. The questions cover the balance sheet, distinguishing various types of assets, recognizing costs, and basic accounting calculations.
This document contains a practice quiz on accounting concepts. It includes 15 multiple choice questions testing understanding of key terms like assets, liabilities, equity, income and expense accounts. The questions cover the balance sheet, distinguishing various types of assets, recognizing costs, and basic accounting calculations.
This document contains a practice quiz on accounting concepts. It includes 15 multiple choice questions testing understanding of key terms like assets, liabilities, equity, income and expense accounts. The questions cover the balance sheet, distinguishing various types of assets, recognizing costs, and basic accounting calculations.
The following set of questions will help you check your understanding of the concepts explained so far.
1 Which statement shows the financial position of the company on a date ?
A Income and Expenditure Statement
B Balance Sheet
C Profit and Loss Statement
D Cash Flow Statement
Which of the following attributes are essential for a resource to be recognised as
2 an asset:
i) It must be owned by the entity and remain in its custody
ii) It must be within the entity’s control
iii) It should have been established by a past transaction or event
iv) The future economic benefits must flow to the business
A ii, iii, & iv
B ii & iii
C I, ii, iii & iv
DD i, ii, iii
3 Which of the following is not an asset?
A. Equipment
B Accounts Payable
C Building
D Furniture 4 Which of the following is not a fixed asset?
A. Equipment
B Vehicles
C Computer
D Inventory
The most important asset of a IBM Corporation is its “Brand Image”. The 5 financial accounting system does not record the same, as it is -
A. It is a non-monetary asset
B It is not objectively measurable.
C It is an intangible
D Involves future estimation
6 The cost of fixed asset should include only the invoice cost
A TRUE
B FALSE
7 Which of the following is current asset?
A Land
B Patent
C Accounts Receivable
D Building
8 Which one of the following is not an example of inventory?
A. Oranges in a grocery store
B Chairs for sale in a furniture store
C Equipment in a factory
D All of the above
Expenses for routine maintenance of the equipment should be added to the cost 9 of the equipment.
A. TRUE
B FALSE
10 Choose the correct statement from the following:
A. Intangible assets are not recorded in books
B Intangible Assets are always objectively measurable
C Intangible assets don't have physical substance
D Intangible assets are always equal to tangible assets
10 Using the following information, compute total current assets:
Rs.
Bank Balances 1,100
Share Capital 1,750
Cash 500
Property, Plant, and Equipment 8,000
Accounts Receivable 700
Retained Earnings 1,000
Inventory 4,000
Goodwill 9,000 AB Co. purchased an equipment at Rs.4,000. The freight charges incurred was Rs. 100. The company incurred installation cost Rs. 200. The total cost of the 11 equipment is:
A. Rs.4,000
B Rs.4100
C Rs.4,300
D Rs.4,400
12 Self-generated brand names are to be recognized in the Financial Statements
TRUE
FALSE
13 Current assets are assets which are expected to be
A. realized, consumed or converted to cash within one year
B realized, consumed or converted to cash after one year
C are not expected to be converted to cash
D None of the above
The credit sales generated during the year 2016 for LT Co. is Rs. 300,000. Based on past experience, 2% of the sales remains uncollected. Calculate the amount 14 for allowance for doubtful debt as per percentage of sales method.
A. Rs.3,000
B Rs.3500
C Rs.6,000
D Rs.4,000
15 S Corp. has the following balance sheet elements as of December 31, 2012. Rs.
