Accounting Principles MCQ -

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1.The profounder of book-keeping is?
(a) B. G. Bikri.
(b) Luca Pacioli.
(c) Old Kesal.
(d) Menhr.
Lucas Pacioli is the profounder of book-keeping. So, only it is the right answer.

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2. The method of recording transaction in Account book?
(a) Book-keeping.
(b) Auditing.
(c) Accountancy.
(d) Cost Accounting.
Book-keeping is an activity concerned with complete recording of transactions and ascertainments of financial effect on the business.
On the other hand, Auditing is an examination and appraisal of accounts, Accounting is about identifying, measuring and communicating economic information. Cost accounting is about evaluation of cost of the product. So, (b), (c) & (d) are not correct answer.

So, option (a) is correct

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The primary function of accounting is
(a) classification to record business transactions.
(b) To record transaction data only.
(c) To deal with non-financial transactions.
(d) None of the above.

The primary function of accounting is related to recording of business transactions and classification. So, option (a) is correct

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Book-keeping deals with
(a) Recording, classifying and summarizing recorded data.
(b) Recording of financial data relating to business operations.
(c) Recording of non-financial data.
(d) Interpreting the data for internal and external end users.
Book-keeping deals with recording the financial data relating to business. Accounting deals with recording, classifying and summarizing recorded data. So, option (a), (c) and (d) is incorrect

So, (b) the right answer.

Objectives of accounting is/are
(a) Systematic record of transactions.
(b) Ascertainment of results of recorded transactions
(c) Ascertainment profit & loss of the business.
(d) All of the above.

The objectives of accounting are systematic record, ascertainment of the results and financial position of the business transactions So, statements under option (a), (b) & (c) are true. So, option (d) is correct

Window dressing of account means.
(a) Recording of transaction in subsidiary books in beautiful manner.
(b) Showing more losses to avoid income tax.
(c) Showing better results and status than actual √
(d) All of the above.

Window dressing of Accounts means to show better result than actual. So, option (c) is correct..

The purpose of accounting is to provide information to
(a) Proprietor.
(b) Government.
(c) Creditors.
(d) All of the above.
Purpose of accounting is to provide information to owners, creditors, management, employees, government and consumers etc. So, option (d) is correct.

Financial position of the business is determined on the basis of —————.
(a) Accounting reports
(b) Records maintained under book-keeping process
(c) Trial Balance
(d) All of the above.

Accounting Report shows the financial position of the business. Trial balance is a statement, not an account .So option (a) is not correct. Book keeping is just process of recording of accounting transactions, So, option (b), (c) & (d) are incorrect. So, option (a) is correct.

Book-keeping records only the ————– transactions of Business. /2
(a) Cash
(b) Financial
(c) Credit
(d) None of the above.
Every financial transactions of business, whether Cash or Credit or otherwise, are recorded in book-keeping. So, option (b) is correct.

At the end of the financial year (after sale of goods worth Rs. 1, 00,000) there was a closing stock of Rs. 50,000. This is:
(a) An event
(b) A transaction
(c) Both event as well as transaction
(d) None of these

Events are results of transaction. Closing Stock in hand in business is result of business transactions. So option (a) is correct