MCQ on Indian Railways Administration and Finance An introduction (Concepts and conventions)-PC-11

 

MCQ on  Indian Railways Administration and Finance An introduction 

(Concepts and conventions)-PC-11

 

1)       Recognition of expenses in the same period as associated revenues is known as the

 

A)      Book-Keeping principle

 

B)      matching principle.

 

C)      Cost Principle

 

D)      None.

 

2)       If a concern proposes to discontinue its business from March 2018 and decides to dispose of all its assets within a period of 4 months, The Balance Sheet as on

 

(A)    Historical Cost

 

(B)    Net realisable value

 

(C)    Cost less Depreciation

 

(D)    Cost price or Market value, whichever is lower.

 

3)   A concept that a business enterprise will not be sold or liquidated in the near future is known as:

 

(A)    Going Concern

 

(B)    Economic Entity

 

(C)    Monetary Unit

 

(D)    None of the above

 

4)       During the life-time of an entity accounting produce financial statements in accordance with which basic accounting concept:

 

(A)    Conservation

 

(B)    Matching

 

(C)    Accounting Period

 

(D)    None of the Above

 

5)       The concept which requires that the same accounting method should be used from one accounting period to the next is called

 

(A)    Conservatism

 

(B)    Consistency

 

(C)    Objectivity

 

(D)    Matching

 

6)   All of the following items are classified as fundamental accounting assumptions except

 

A)      Consistency

 

B)      Business Entity

 

C)      Going concern

 

D)      Accrual

 

7)       The determination of expenses for an accounting period is based on the principle

 

of

 

A)      Objectivity

 

B)      Materiality

 

C)      Matching

 

D)      Periodicity.

 

8)       A change in accounting policy is justified

 

(A) To comply with accounting

 

(B) To ensure more appropriate presentation of the financial statement of the enterprise.

 

(C) To comply with the law

 

(D) All of the above

 

9)       Selection of an inappropriate accounting policy decision may

 

(A)    Overstate the performance and financial position of a business entity

 

(B)    Understate/ overstate the performance and financial position of a business entity

 

(C)    Overstate the performance of a business entity

 

(D)    Understate financial position of a business entity.

 

10)   Accounting polices refer to specific accounting

 

(A) principles

 

(B) Methods of applying those principles.

 

(C) Both (a) and (b) .

 

(D) None of the above.

 

11)      All of the following are valuation principles except

 

(A) Historical cost.

 

(B) Present Value

 

(C) Future value

 

(D) Realisable value

 

12)   Nandini enterprises follows the Written Down Value method of depreciating

 

machinery year after year due to

 

A)      Comparability

 

B)      Convenience

 

C)      Consistency

 

D)      All of them.

 

13)   Mr. Raj purchased goods costing 1,50,000 and sold 4/5th of the goods amounting to Rs.1,80,000. He met expenses amounting to Rs.25,000 during the year, 2018. He made a net profit as Rs.35,000. Which of the accounting concept was followed

by him?

 

A)      Entity

 

B)      Periodicity

 

C)      Matching

 

D)      Conservatism.

 

14) Economic life of an enterprise is split into period interval as per

 

A)      Entity

 

B)      Matching

 

C)      Accounting Period

 

D)      Accrual

 

15) It is essential to standardize a company’s accounting principles and policies in order to ensure

 

A)      Transparency

 

B)      Consistency

 

C)      Comparability

 

D)      All of the above.

16) What is the Accounting Standard for Depreciation?

 

A)      AS4

 

B)      AS6

 

C)      AS8

 

D)   AS10

 

Answer key

 

Concepts and conventions

 

1B	2B	3A	4C	5B	6B	7D	8D	9B	10C	11C	12C
13C	14C	15D	16D