2427 + Interview Questions in Accounts in Class 11

1.	Whichofthefollowingstatements are correctabout a "Provitions " ?(i) Provisions area charge againsttheprofitsof andenterpise (ii) Provisionsare createdout ofdivisibleprofits (iii) Creationof provisions are notnecessary for abusiness (iv) Provisionsare created to meeta known liability
Answer» (i),(II)and(III) (ii)and(IV) only (i), (iii) and(iv) (i) and(iv) only ANSWER :d

Discussion

2.	Which ofthe followingstatementsis notappropriate in relation to"Provision"?
Answer» Provisiion is a charged againstprofit PROVISION is CREATED forknown liability Provisionis created for strengtheningthefinancial positionofthebusiness. CREATION of provisionsatisfies theprincipleof CONSERVATISM. Answer :c

Discussion

3.	Which of the following statement is not correct ?
Answer» PROVISION for Doubtful Debts ACCOUNT is AMOUNT payable to debtors. BAD Debts can be more than the amount of Provision for Doubtful Debts. Bad Debts can be less than than amount of Provision for Doubtful Debt. Provision for Doubtful Debts is shown in the Balance Sheet. Solution :Provision for Doubtful Debts Account is amount payable to debtors.

Discussion

4.	Which of the following transaction is not of financial character ?
Answer» Purchase of ASSET on credit Purchase of asset for cash Withdrawing of MONEY by proprietor from business STRIKE by employees Solution :Strike by employees

Discussion

5.	which of thefollowingsoftwareis notoperatingsoftware :
Answer» MS-DOS Windows XP MS WORD All of the above Solution :MS word

Discussion

6.	Which of the following software is not an operating software ?
Answer» MS DOS Windows XP MS WORD None of these Solution :MS word

Discussion

7.	Which of the following should be a 'charge' against profit and which should be an appropriation' of profit? (a) Provision for Doubtful Debts, (b) Provision for Depreciation, and (c) General Reserve.
Answer» Solution :(a) Provision for Doubtful Debts is a charge against PROFIT. (b) Provision for DEPRECIATION is a charge against profit. (C) GENERAL RESERVE is an appropriation of porfit.

Discussion

8.	Which of the following not require adjustment in the Cash Book balance ?
Answer» Cheque issued but not presented for payment Cheque deposited but not CLEARED. Cheque WRONGLY CREDITED by bank All of the above Solution :Cheque wrongly credited by bank

Discussion

9.	Which of the following may have both Dr. or Cr. Balance
Answer» Only CASH column of a cash BOOK Only BANK column of cash book Both cash and bank column Neither bank nor cash column Answer :B

Discussion

10.	Which of the following limitations of accounting states that accounts amy be manipulated to conceal vital facts :
Answer» Accounting is not FULLY exact Accounting may lead to WINDOW dressing Accounting ignores PRICES LEVEL changes Accounting ignores qualitative elements Answer :B

Discussion

11.	whichof thefollowinglimitationof acomputer :
Answer» speed accuracy INTELLIGENCE ? NONE of the above Solution :intelligence ?

Discussion

12.	Which of the following is the most relevant accounting information for taxation autherities ?
Answer» Cash BALANCE of the firm BOOK value of the fixed assets Credit SALES of the year Profit GENERATED during the year Answer :D

Discussion

13.	Which of the following is the objective of Accounting ?
Answer» SYSTEMATIC RECORDING Comparison and Evaluation Solvency Position Forecasting Solution :Systematic Recording

Discussion

14.	Which of the following is the error of principle ?
Answer» The PURCHASE book was overcasted by RS. 500 Credit sale to Arun Rs. 700 recorded as purchase from Arun Goods returned to Charu Rs. 4,000, posted in Chinoo's A/C WAGES PAID for INSTALLATION of machinery debited to Wages A/C Answer :D

Discussion

15.	Which of the following is the Capital expenditure?
Answer» Wages PAID for repair of building Wages paid for WHITE WASHING of building Wages paid for construction of building Wages paid for cleaning of building Answer :C

Discussion

16.	Which of the following is revenue ?
Answer» Purchases Purchases Return SALES Salary Payable Solution :Sales

Discussion

17.	Which of the following is not the user of accounting information ?
Answer» Short-term creditors DEBTORS Government Owners Solution :Debtors

Discussion

18.	Which of the following is not shown in Balance Sheet ?
Answer» OPENING STOCK Closing Stock Patents Debtors Solution :Opening Stock

Discussion

19.	Which of the following is not recorded in cash book :
Answer» TRADE discount BAD Debts CREDIT Purchases All of the above ANSWER :D

Discussion

20.	Which of the following is not an internal user of financial statements?
Answer» BOARD of Directors Managers Employees LENDERS Solution :Lenders

Discussion

21.	Which of the following is not an expense ?
Answer» FURNITURE Salary Rent Electricity EXPENSES SOLUTION :Furniture

Discussion

22.	whichof thefollowingis notan input device :
Answer» Scanner Keyboard MONITOR ? NONE of the above Solution :Monitor ?

Discussion

23.	Which of the following is not an input device ?
Answer» Scanner Keyboard MONITOR NONE of these SOLUTION :Monitor

Discussion

24.	Which of the following is not an error of principle?
Answer» ANSWER :D

Discussion

25.	Which of the following is not an error of commission :
Answer» A SALE of Rs. 560 not recorded in books at all. Rent paid to LANDLORD was POSTED to Landlord's account A purchase of Rs. 840 was wrongly posted to sales account Instead of creding Shyam credited the other CREDITOR Sham. Answer :A

Discussion

26.	Which of the following is not an error of principle:
Answer» Purchase of furniture DEBITED to PURCHASES account. Repairs on the overhauling of second hand MACHINERY purchased debited to repairs account. Cash received from Manoj POSTED to Saroj. Sale of old car credited to SALES account. Solution : (c)

Discussion

27.	Which of the following is not an error of commission
Answer» OVERCASTING of sales BOOK. CREDIT sales to Ramesh  5,000 credited to his account. Wrong balancing of machinery account. CASH sales not recorded in cash book. Solution : (d)

Discussion

28.	Which of the following is not a sub field of accounting ?
Answer» FINANCIAL accounting Book keeping Management accounting Cost accounting Answer :B

Discussion

29.	Which of the following is not a qualitative characteristic of accounting information?
Answer» Reliability Understandability Comparability MATERIALITY Solution :Materiality

Discussion

30.	Which of the following is not a long - term liability ?
Answer» CREDITORS Term LOAN Debentures BANK loan SOLUTION :Creditors

Discussion

31.	Which of the following is not a limitation of accounting
Answer» To provided information about the assets, LIABILITIES and capital of the enterprise. To provide information about the private assets and liabilities of the proprietor. To maintain records of the business To provide information REGARDING the PROFIT and LOSS of the enterprise Answer :B

Discussion

32.	Which of the following is not a fixed asset ?
Answer» Building Plant and Machinery BALANCE with BANK Goodwill Solution :Balance with bank

Discussion

33.	Which of the following is not a business transactions?
Answer» Purchase of GOODS for resale amounted toRs. 50,000 Paid salaries and wages amounted to Rs. 10,000 Paid RENT for OFFICE premises Rs. 5,000 PURCHASED a LCD for personal use Solution :Purchased a LCD for personal use

Discussion

34.	Which of the following is not a characteristicof accounting?
Answer» RECORDING non-monetary TRANSACTIONS Classifying Analysis Summarising Solution :Recording non-monetary transactions

Discussion

35.	Which of the following is not a business transaction ?
Answer» Bought furniture â‚¹25,000 for business PAID for salaries of employees,â‚¹ 20,000 CASH withdraw from personal BANK account , â‚¹ 10,000 for personal USE All of the above. Solution :Cash withdraw from personal bank account , â‚¹ 10,000 for personal use

Discussion

36.	Which of the following is not a busincess transaction ?
Answer» Bought furniture of RS 25,000 for business Paid for SALARIES of employees, Rs 20,000 Cash withdrawn from personal BANK account, Rs 10,000 for domestic use. All of the above Solution :Cash withdrawn from personal bank account, Rs 10,000 for domestic use.

Discussion

37.	Which of the following is known as ''Principle Book of Accounting''?
Answer» LEDGER Journal Trial balance Balance sheet Answer :A

Discussion

38.	Which of the following is correct?
Answer» SOLUTION :III

Discussion

39.	Which of the following is an output device?
Answer» Scanner PRINTER Smart CARD READER NONE of these. SOLUTION :Printer

Discussion

40.	Whichof thefollowingis correct ?
Answer» `{:(,"ASSETS",,"Liabilities",,"CAPITAL"),((a),"₹ 785000",,"₹ 125000",,"₹ 660000"):}` `{:(,"Assets",,"Liabilities",,"Capital"),((B),"₹ 820000",,"₹ 280000",,"₹ 1100000"):}` `{:(,"Assets",,"Liabilities",,"Capital"),((C),"₹ 955000",,"₹ 115000",,"₹ 820000"):}` `{:(,"Assets",,"Liabilities",,"Capital"),((d),"₹ 542000",,"₹ 654000",,"₹ 112000"):}` SOLUTION :`{:(,"Assets",,"Liabilities",,"Capital"),((a),"₹ 785000",,"₹ 125000",,"₹ 660000"):}`

Discussion

41.	Which of the following is correct :
Answer» OPERATING PROFIT `=` Operating profit `–` Non-operating EXPENSES `–` Non-operating INCOMES Operating profit `=` NET profit `+` Non-operating Expenses `+` Non-operating incomes Operating profit `=` Net profit `+` Non-operating Expenses `–` Non-operating incomes Operating profit `=` Net profit `–` Non-operating Expenses `+` Non-operating incomes

Discussion

42.	Which of the following is capital expenditure?
Answer» Wages Wages PAID for BUILDING construction REPAIR EXPENSES of building Advertisment Expenses Answer :B

Discussion

43.	Which of the following is correct ?
Answer» OPERATING Profit = NET Profit + Non - Operating Epenses - Non -operating Income Operating Profit = Net Profit + Non-operating Expenses + Non-operating Income Operating Profit = Net Profit + Non-operating Expenses - Non-operating Income Opertin Profit = Net Profit - Non-operating Expenses + Non-operating Income Solution :Operating Profit = Net Profit + Non-operating Expenses - Non-operating Income

Discussion

44.	Which of the following is a liability ?
Answer» Furniture RENT PAYABLE Interest Received Stock Solution :Rent Payable

Discussion

45.	Which ofthefollowingis a correctdifferencebetweenaprovisionandreserve ?
Answer» A provisionis createdout of alegal necessity WHEREAS a reserve is createdas a matterof pruence. A PROVISION is invested whereas reserve is notinvested A provision is an appropriationof profit WHEREASA reserveis achargeagainstprofit. A provisioncan be USED for distributionof dividendwhereasareservecannotbe allowed to be usedfor distributionof dividend. Answer :a

Discussion

46.	Which of the following is an asset ?
Answer» MACHINERY Purchases Sales Return Interest Received Solution :Machinery

Discussion

47.	Which of the following is a limitation of accounting?
Answer» ASSISTANCE to Management Replaces Memory UNREALISTIC INFORMATION Evidence in Court Solution :Unrealistic Information

Discussion

48.	Whichofthe followingis a correctdistinctionbetweena Revenuereserveianda Capitalreserve ?
Answer» A revenuereserveis createdout ofcapitalprofitswhereas a capitalreserveis createdout ofbusiness profits. A revenue reserve can be usedfor distributionof dividend with certain preconditionswhereas acapitalreservecan beusedfor distribution ofdividendwithoutany preconditions A revenue reserve is created forstrengthening the financialpositionwhereas capitalreserve is created for meetingcapitallosses or to beused for PURPOSES specified bythe COMPANIES ACT. There ISNO distinctionbetweenrevenuereserve and capitalreserve. Answer :C

Discussion

49.	Which of the following is a business transaction ?
Answer» Goods purchased on CREDIT An employee being dismissed Proprietor purchasing a CAR for own use Sale of PERSONAL asset by the proprietor Solution :Goods purchased on credit

Discussion

50.	Which of the following errors is revealed by the Trial Balance :
Answer» WRONG amount entered into the book of original entry Wrong amount posted in the ledger account Complete omission of an entry from the books of original entry When ACCOUNTING PRINCIPLE is violated while RECORDING a transaction in the books of account Answer :B

Discussion

Explore topic-wise InterviewSolutions in Current Affairs.

Whichofthefollowingstatements are correctabout a "Provitions " ?(i) Provisions area charge againsttheprofitsof andenterpise (ii) Provisionsare createdout ofdivisibleprofits (iii) Creationof provisions are notnecessary for abusiness (iv) Provisionsare created to meeta known liability

Which ofthe followingstatementsis notappropriate in relation to"Provision"?

Which of the following statement is not correct ?

Which of the following transaction is not of financial character ?

which of thefollowingsoftwareis notoperatingsoftware :

Which of the following software is not an operating software ?

Which of the following should be a 'charge' against profit and which should be an appropriation' of profit? (a) Provision for Doubtful Debts, (b) Provision for Depreciation, and (c) General Reserve.

Which of the following not require adjustment in the Cash Book balance ?

Which of the following may have both Dr. or Cr. Balance

Which of the following limitations of accounting states that accounts amy be manipulated to conceal vital facts :

whichof thefollowinglimitationof acomputer :

Which of the following is the most relevant accounting information for taxation autherities ?

Which of the following is the objective of Accounting ?

Which of the following is the error of principle ?

Which of the following is the Capital expenditure?

Which of the following is revenue ?

Which of the following is not the user of accounting information ?

Which of the following is not shown in Balance Sheet ?

Which of the following is not recorded in cash book :

Which of the following is not an internal user of financial statements?

Which of the following is not an expense ?

whichof thefollowingis notan input device :

Which of the following is not an input device ?

Which of the following is not an error of principle?

Which of the following is not an error of commission :

Which of the following is not an error of principle:

Which of the following is not an error of commission

Which of the following is not a sub field of accounting ?

Which of the following is not a qualitative characteristic of accounting information?

Which of the following is not a long - term liability ?

Which of the following is not a limitation of accounting

Which of the following is not a fixed asset ?

Which of the following is not a business transactions?

Which of the following is not a characteristicof accounting?

Which of the following is not a business transaction ?

Which of the following is not a busincess transaction ?

Which of the following is known as ''Principle Book of Accounting''?

Which of the following is correct?

Which of the following is an output device?

Whichof thefollowingis correct ?

Which of the following is correct :

Which of the following is capital expenditure?

Which of the following is correct ?

Which of the following is a liability ?

Which ofthefollowingis a correctdifferencebetweenaprovisionandreserve ?

Which of the following is an asset ?

Which of the following is a limitation of accounting?

Whichofthe followingis a correctdistinctionbetweena Revenuereserveianda Capitalreserve ?

Which of the following is a business transaction ?

Which of the following errors is revealed by the Trial Balance :