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What is the effect on the Net Assets if cash is received from debtors of Rs. 50,000?
a) Increase
b) Decrease
c) No change
d) None of these
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An asset was purchased for Rs. 6,60,000. Cash was paid Rs. 1,20,000 and for the balance a bill was drawn for 60 days. What will be the effect on fixed assets?
a) Rs. 1,20,000
b) Rs. 5,40,000
c) Rs. 6,60,000
d) Nil
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Which concept requires that those transactions which can be measured in terms of money are recorded in books of account?
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In the accounting period, according to which concept, cost incurred to acquire an asset is shown in the Balance Sheet.
a) Business Concept
b) Realization Concept
c) Cost Concept
d) Accounting Period Concept
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Proprietor (owner) is treated as creditor of business due to: a) Periodicity concept b) Materiality Principle c) Entity Concept d) Consistency concept
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Unpaid expenses are: a) Outstanding Liabilities b) Prepaid expenses c) Unaccrued expenses d) All of these
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Estimated selling price less estimated cost of sales is: a) Net Realizable Value b) Cost of purchase c) Cost of goods sold d) None
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Cash of Rs. 2,000 is withdrawn for personal expenses. This will be debited to which account: a) Drawings A/C b) Creditors A/C c) Capital A/C d) Cash A/C
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Fixed assets and current assets are categorized as per concept of: a) Separate entity b) Going concern c) Consistency d) Time period
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The obligations of an enterprise other than owner's fund are known as: a) Assets b) Liabilities c) Capital d) None of these
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Which of these is not a fundamental accounting assumption? a) Going Concern b) Consistency c) Conservatism d) Accrual
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The adjustments to be made for prepaid expenses is: a) Add prepaid expenses to respective expenses and show it as an asset b) Deduct prepaid expenses form respective expenses and show it as an asset c) Add prepaid expenses to respective expenses and show it as a liability d) Deduct prepaid expenses from respective expenses and show it as a liability
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Accounting does not record non- financial transactions because of: a) Accrual concept b) Cost Concept c) Continuity Concept d) Money Measurement Concept
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Omission of paise and showing the round figures in financial statements is based on: a) Conservatism Concept b) Consistency Concept c) Materiality Concept d) Realization Concept
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The Accounting Convention of Matching means: a) Profit for the period to be matched with sales revenue b) Profit for the period to be matched with investment c) Expenses of one period to be matched against the expenses of another period d) Expenses of one period to be matched against the revenue of the same period
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During the life time of an entity accountants prepare financial statements at arbitrary points of time as per: a) Prudence b) Consistency c) Periodicity d) Matching
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