Question # 1

The total of all cost incurred to convert raw material into finished goods is known as :

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Prime cost

Conversion cost

Sunk cost

The basic purpose of depreciation is to achieve the :

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matching principle

Dual aspect principle

separate entity concept

The asset which have limited useful life are termed as :

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Limited assets

Depreciation assets

Unlimited assets

None of the given option

If the cost of the sales is Rs 60,000 are Rs 95,000 and opening expenses are Rs 20,000 during the year.What would be the net profit?

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Rs 15000

Rs 35000

Rs 55000

Rs 60000

In which of the following condition a company will have positive working capital?

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if current assets> current liabilities

if current assets < current liabilities

if current assets = current liabilities

if current assets <= current liabilities

Which of the following account will be credit,if business sold goods for Rs 10,000 on credit?

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Cash account

Sales account

account receivable account

purchase account

A book in which receipts and payments are recorded is known as

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Pass book

Cash book

Purchase book

Sales book

While making income and expenditure account,excess of income over expenses in a specified accounting is called :

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Profit

Loss

Surplus

Deficit

_____ is the amount for which an assets could be exchanged between knowledge willing parties in a arm length transaction

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Present Value

Fair Value

Book Value

Depreciation arises because

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fall in market value of an asset

fall in the value of money

physical wear and tear

all of the above

What would be the affects on component of the accounting equation if goods are purchased on cash?

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increase in cash and decrease in equity

increase in cash and increase in goods

increase in cash and decrease in goods

Which of the following account will be credited ,if business bought goods on credit from Mr.Ali?

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Purchase account

Mr.Ali account

Cash account

Sale account

The basic purpose of depreciation is to achieve the

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Matching principle

Dual aspect principle

Separate entity concept

Money measurement concept

Economic resource owned by a business and expected to benefit for the future operation are called :

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Expenses

Assets

Capital

If a business pays rent in 12 months mit will be treated as:

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Prepaid expenses of business

Long term liability of business

Fixed assets of business

What will be the effect on accounting equation ,which payment is made to the creditor of the business?

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Decrease in an asset ,decrease in liability

Increase in asset,increase in liability

Increase in asset ,increase in owner equity

In a balance sheet fixed asset is shown at

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cost price

market value

fair value

written down value

Firms chargers depreciation each year :

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To ensure there is enough money in the firm to replace the asset

To spread the cost of the asset over its working life

Because the law state must be reduced

Accrued expenses are the example of

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Current liabilities

Long term liabilities

Capital expenses

The price paid for an item , in terms of currency is called

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Sale

Cost

Debt

Revenue

Accountancy cover which of the following series

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bookkeeping

accounting

auditing

all of the above

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