ACCOUNTS CLASS TEST

According to this accounting statement should be prepared honestly, This should be evident to true & transparency of the statement. Which accounting Concept explains this?

• Prudence
• Consistency
• Triple aspect concept
• Full disclosure

When we buy furniture on cash , we debit cash account, true or false with reason.

• TRUE
• FALSE

In ledger If the total of debit side is greater than the total of credit side .

• It's a debit balance
• It's a credit balance
• Nill balance
• None of the above

Trial balance is a statement of all journal entries passed, true or false

• TRUE
• FALSE

According to which assumption assets are shown in the accounting records at cost less depreciation.

• Money measurement concept
• Business entity concept
• Going concern concept
• Matching concept

Fixed assets are recorded at cost less depreciation not at a reaslisable value because of

• Money measurement concept
• Business entity concept
• Going concern concept
• Matching concept

Point out the correct accounting equation

• Assets= Liability- capital
• Liability= capital+Assets
• Capital= Assets +liabilities
• Liabilities= Assets - Capital

Contingent Liability is shown in the balance sheet because of

• Convention of consistency
• Convention of materiality
• Convention of full disclosure
• Convention of conversation

In accounting, all business transactions are recorded as having dual aspect due to

• Money measurement concept
• Dual aspect concepts
• Going concern concept
• Matching concept

_________ is a specialised branch of accounting that keeps track of a company’s financial transactions.

• Cost accounting
• Management accounting
• Financial Accounting
• Corporate accounting