Accounting(Commerce ) Questions and Answers

Question 1. Accounting provides information on
  1.    Cost and income for managers
  2.    Company's tax liability for a particular year
  3.    Financial conditions of an institutions
  4.    All of the above
Explanation:-
Answer: Option D. -> All of the above
Question 2. The long term assets that have no physical existence but are rights that have value is known as
  1.    Current assets
  2.    Fixed assets
  3.    Intangible assets
  4.    Investments
Explanation:-
Answer: Option C. -> Intangible assets
Question 3. The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
  1.    Current assets
  2.    Fixed assets
  3.    Intangible assets
  4.    Investments
Explanation:-
Answer: Option A. -> Current assets
Question 4. The debts which are to be repaid within a short period (year or less) are known as
  1.    Current liabilities
  2.    Fixed liabilities
  3.    Contingent liabilities
  4.    All of the above
Explanation:-
Answer: Option A. -> Current liabilities
Question 5. Patents, Copyrights and Trademarks are
  1.    Current assets
  2.    Fixed assets
  3.    Intangible assets
  4.    Investments
Explanation:-
Answer: Option C. -> Intangible assets
Question 6. The sales income (Credit and Cash) of a business during a given period is called
  1.    Transactions
  2.    Sales Returns
  3.    Turnover
  4.    Purchase Returns
Explanation:-
Answer: Option C. -> Turnover
Question 7. Any written evidence in support of a business transaction is called
  1.    Journal
  2.    Ledger
  3.    Ledger posting
  4.    Voucher
Explanation:-
Answer: Option D. -> Voucher
Question 8. In Journal, the business transaction is recorded
  1.    Same day
  2.    Next day
  3.    Once in a week
  4.    Once in a month
Explanation:-
Answer: Option A. -> Same day
Question 9. Real account records
  1.    Dealings with creditors or debtors
  2.    Dealings in commodities
  3.    Gains and losses
  4.    All of the above
Explanation:-
Answer: Option B. -> Dealings in commodities
Question 10. The account that records expenses, gains and losses is
  1.    Personal account
  2.    Real account
  3.    Nominal account
  4.    None of the above
Explanation:-
Answer: Option C. -> Nominal account
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