Commerce MCQ

1) What is the method of summarizing and classifying the record of financial transactions in monetary terms?
A) Book keeping
B) Auditing
C) Accountancy
D) None of these

2) Accounting is also defined as an information system because?
A) The function of accounting is to provide quantitative information, primarily financial in nature
B) It a system which provides information
C) It provides information to anyone seeking it
D) All of these

3) Accounting is the process of matching?
A) Revenues and costs
B) Benefits and costs
C) Cash inflows and outflows
D) All of these

4) The personal assets of the owner of a company will not appear on the company's balance sheet because of which of the following principal or guideline?
A) Cost
B) Economic entity
C) Monetary unit
D) None of these

5) Which principal is associated with the assumption that the company will continue long enough to carry out its objectives and commitments?
A) Economic entity
B) Time period
C) Going concern
D) None of these

6) Depreciation Expense shown on a company's income statement must be the same amount as the depreciation expense on the company's income tax return. True or false?
A) True
B) False
C) Can't say
D) None of these

7) The book value of an asset is defined as

A) Cost minus salvage value
B) Cost minus accumulated depreciation
C) Cost minus Salvage value minus accumulated depreciation
D) None of these

8) The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the
A) Balance Sheet
B) Income statement
C) Cash flow statement
D) None of these

9) The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is known as the?
A) Income statement
B) Cash flow statement
C) Balance sheet
D) None of these

10) Unearned Revenues is what type of account?
A) Owner's equity
B) Assets
C) Liability
D) None of these

ANSWERS
1) B
2) A
3) A
4) B
5) C
6) B
7) B
8) B
9) C
10) C

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Puzzle Que For SBI PO & NIACL 2017 (Part 11 )
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