Accounting Basics MCQs Part 3

1. Current liability includes_____

2. Cash  discount is ____

3. Main feature of business transaction is

4. During the life-time of an entity ,  accounting produces financial at statements in accordance with which of the following accounting concept?

5. As per dual aspect concept:

6. M/s future ltd. Has invested Rs10,000 in the shares of relicam industries ltd. Current market value of these shares is Rs.10,500. Accountant of future ltd. Wants to show Rs10,500 as value of investment in the books of accounts, which accounting convention restricts him from doing so?

7. According to the cost concept

8. The trading and profit and loss account is prepared under which attribute of accounting:

9. The owner of the firm records his medical expenses in the firms income statement . indicate the principle that is violated:

10.  As per income tax act, accounting period is:

11. Which of the following statements is correct:

12. The cost of a small calculator is accounted as an expense and not shown as an asset in a financial statements of a business entity due to___.

13. IASB upon coming into existence has adopted

14. Assets (except securities )may be valued under Ind-AS on;

15. Under the cash accounting, expenses are recorded

16. Accrual basis of accounting

17. Return inward is the term used for:

18.  According to going concern concept ,  a business is viewed as having

19. Income is measured on the basis of :

20. Salary to manager will be recorded in the books of accounts but appointment of manager is not recorded due to —–

21.  According to convention of conservatism :