SAMPLE QUESTIONS FOR ACCOUNTANCY OLYMPIAD- CLASS XI

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1 SAMPLE QUESTIONS FOR ACCOUNTANCY OLYMPIAD- CLASS XI 1. A change in accounting policy is justified a) To comply with accounting standard. b) To ensure more appropriate presentation of the financial statement of the enterprise. c) To comply with the law. d) All of the above. 2. If the users of accounting information are able to analyze various aspects of an entity over different time periods, accounting information has the quality of a) Reliability b) Relevance c) Comparability d) Understandability 3. A businessman purchased foods for 25, 00,000 and sold 80% of such goods during the accounting year ended 31 st March, The market value of remaining goods was 4, 00,000. He valued the stock at cost. He violated the concept of a) Money measurement. b) Conservatism. c) Historical cost. d) Periodicity. 4. Fundamental accounting assumption is a) Materiality. b) Business entity. c) Going concern. d) Dual aspect. 5. Which of the following are of capital nature? a) Purchase of goods. b) Cost of repair. c) Wages paid for installation of machinery. d) Rent of a factory.

2 6. Revenue from sale of products, is generally, realized in the period in which a) Cash is collected. b) Sale is made. c) Products are manufactured. d) None of the above. 7. The determination of expenses for an accounting period is based on the principle of a) Objectivity. b) Materiality. c) Matching. d) Periodicity. 8. Economic life of an enterprise is split into the periodic interval as per a) Principle of money measurement b) Principle of matching costs. c) Going concern assumption. d) Accrual assumption. 9. The cash book showed an overdraft of 1,500,but the passbook made up to the same date showed that cheques of 100, 50 and 125 respectively had not been presented for payments; and the bank had paid electricity bill of 400 as per standing instruction. The balance as per the pass book will be a) 1,100. b) 2,175. c) 1,625. d) 1, A second hand car is purchased for 10,000, the amount of 1,000 is spent on the repairs. 500 is incurred to get the car registered in owner s name and 1,200 is paid as dealer s commission. The amount debited to car account will be a) 10,000. b) 10,500. c) 11,500. d) 12,700.

3 11. A draws a bill on B for 30,000. A wants to endorse it to C in settlement of 35,000 at 2% discount with the help of B s acceptance and balance in cash. How much cash A will pay to B? a) 4,300. b) 4,000. c) 4,100. d) 5, Which account is the odd one out? a) Office furniture & equipment. b) Freehold land and buildings. c) Stock of raw materials. d) Plant and machinery. 13. In Double entry system of book keeping every business transaction affects. a) Two accounts. b) Two sides of the same account. c) The same account on two different dates. d) All of the above. 14. Which of the following types of information are found in subsidiary ledgers, but not in the general ledger? a) Total cost of goods sold for the period. b) The quantity of a particular product sold during the period. c) The amount owed to a particular creditor. d) The portion of total current assets that consist of cash. 15. The preparation of a trial balance is for. a) Locating errors of commission. b) Locating errors of principle. c) Locating clerical errors. d) All of the above. 16. When preparing a bank reconciliation statement, if you start with a debit balance as per the pass book, then payments received from customers directly by the bank are a) Added. b) Deducted. c) Not required to be adjusted.

4 d) None of the above. 17. The balance of the petty cash is a) An expense. b) Income. c) An asset. d) Liability. 18. On X draws a bill on Y for 25,000 for 30 days. 19 th July is a public holiday, due date of the bill will be: a) 19 th July. b) 18 th July. c) 17 th July. d) 16 th July. 19. If sales revenue are 4,80,000; gross profit is 20% on cost and operating expenses are 60,000 the cost of revenue from operation is a) 3, 00,000. b) 4, 20,000. c) 3, 40,000. d) 4, 00, A purchased a car for 5,00,000, making a down payment of 1,00,000 and signing a 4,00,000 bill payable due in 60 days. As a result of this transaction a) Total assets increased by 5, 00,000. b) Total liabilities increased by 4, 00,000. c) Total assets increased by 4, 00,000. d) Total assets increased by 4, 00,000. With corresponding increase in liability by 4, 00, A second hand machinery is purchased for 10,000., the amount of 1,500 is spent on its transportation and 1,200 is paid for installation. The amount debited to machinery account will be a) 10,000. b) 10,500. c) 11,500. d) 12,700.

5 22. State the case where the going concern concept is applied? a) When an enterprise was set up for a particular purpose, which has been achieved, or to be achieved shortly. b) When a receiver or liquidator has been appointed in case of a company which is to be liquidated. c) Fixed assets are acquired for use in the business for earning revenues and are not meant for resale. d) When an enterprise is declared sick. 23. If two or more transactions of the same nature are journalized together having either the debit or the credit account common is known as a) Compound journal entry. b) Separate journal entry. c) Posting. d) None of the above. 24. The term IASC stands for a) International Accounting Standards Commission. b) International Accounting Standards Committee. c) Indian Accounting Standards Committee. d) International Accounting Scheme Commission 25. Where depositing of cheques into bank will be recorded in the cash book? a) Debit side of cash column. b) Credit side of cash column. c) Debit side of bank column. d) Credit side of bank column. 26. Sohan has returned goods of 15,000 to Rohan as he found it damaged. Which source document will be prepared by Rohan? a) Debit note. b) Invoice/Bill. c) Credit Voucher. d) Credit Note. 27. Trial balance is prepared for those concerns which follow a) Single entry system. b) Double entry system. c) IFRS.

6 d) None of the above. 28. In accordance with the accounting standards recommended by the Institute of Chartered Accountants of India, AS-26 deals with a) Borrowing costs. b) Accounting for research and development c) Intangible assets d) Cash flow statement 29. Bills discounted and endorsed which may be dishonored on a future date are an example of a) Current liabilities. b) Contingent liabilities. c) Long term liabilities. d) Current assets. 30. Payment of 22,000 is made to Anushka, a creditor in full settlement of 24,000. Posting will be made in Anushka s account as a) 24,000 on debit side. b) 24,000 on credit side. c) 22,000 on debit side. d) 22,000 on credit side.

7 ANSWERS: 1-D, 2-C, 3-C, 4-C, 5-C, 6-B, 7-C, 8-C, 9-C, 10-C, 11-A, 12-C, 13-A, 14-B, 15-D, 16-B, 17-C, 18-B, 19-D, 20-D, 21-D, 22-C, 23-A, 24-B, 25-D, 26-A, 27-B, 28-C, 29- B, 30-A.

MIDTERM EXAMINATION Spring 2010 MGT101- Financial Accounting (Session - 6)

MIDTERM EXAMINATION Spring 2010 MGT101- Financial Accounting (Session - 6) Time: 60 min Marks: 47 Question No: 1 ( Marks: 1 ) - Please choose one Double entry accounting system includes: Accrual accounting