Financial and Management Accounting (CBSE-NET (UGC) Commerce (Paper-II & Paper-III)): Questions 1 - 5 of 13

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Question number: 1

» Financial and Management Accounting » Basic Accounting Concept

MCQ▾

Question

Which of the following accounting equation is correct?

Choices

Choice (4) Response

a.

Capital – liabilities = assets

b.

Capital = assets + liabilities

c.

Capital + assets = liabilities

d.

Capital + liabilities = assets

Question number: 2

» Financial and Management Accounting » Basic Accounting Concept

MCQ▾

Question

Which of the following concepts are also known as “prudence”?

Choices

Choice (4) Response

a.

Conservatism

b.

Materiality

c.

Full Discloser

d.

Consistency

Question number: 3

» Financial and Management Accounting » Basic Accounting Concept

MCQ▾

Question

The policy of “anticipate no profit and provide for all possible losses” is followed due to

Choices

Choice (4) Response

a.

Consistency

b.

Materiality

c.

Conservatism

d.

Cost

Question number: 4

» Financial and Management Accounting » Basic Accounting Concept

MCQ▾

Question

According to which of the following concept, while determining the net income from business, all expenses should be charged against that revenues in securing which are incurred during an accounting period?

Choices

Choice (4) Response

a.

Matching concept

b.

Cost concept

c.

Accounting period concept

d.

Business entity concept

Question number: 5

» Financial and Management Accounting » Basic Accounting Concept

MCQ▾

Question

What are the limitations of money measurement concept?

Choices

Choice (4) Response

a.

Any transaction/event in spite of being very important can’t be recorded in the books of account, it can’t be expressed.

b.

As per this concept, transaction is recorded at its money value on the date of occurrence and the subsequent changes in the money value are conveniently ignored.

c.

Both a. and b. are correct

d.

Question does not provide sufficient data or is vague

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