Accounting For Managers MCQS With Answers 31 to 40

Accounting For Managers

31. The convention of disclosure implies that all material information should be

1. Disclosed in the account
2. Disclosed in the accounts which is required to owner
3. Not disclosed
4. None of these

Correct answer: (A)
Disclosed in the account

32. Outstanding salary is shown as:

1. An asset in the balance sheet
2. A liability
3. By adjusting it in the P & L a/c
4. Both a and c above
5. Both b and c above

Correct answer: (E)
Both b and c above

33. Proprietor (owner) is treated as creditor of business due to:

1. Periodicity concept
2. Materiality Principle
3. Entity Concept
4. Consistency concept

Correct answer: (C)
Entity Concept

34. Which of the following is correct

1. Profit does not alter capital
2. Capital can only come from profit
3. Profit reduces capital
4. Profit increases capital

Correct answer: (D)
Profit increases capital

35. Interest , rent, electricity bill are types of account

1. Personal a/c
2. Impersonal a/c
3. Real a/c
4. Nominal a/c

Correct answer: (D)
Nominal a/c

36. Cost of asset should always be equal to the cost of the liabilities. This concept is

1. Double Entry Bookkeeping
2. Matching Concept
3. Consistency
4. Money measurement Concept

Correct answer: (B)
Matching Concept

37. P& l a/c is prepared for a period of one year by following:

1. Consistency concept
2. Conservatism concept
3. Accounting period concept
4. Cost Concept

Correct answer: (C)
Accounting period concept

38. Prepaid expense is treated as

1. Current asset
2. Current liability
3. Short term liability
4. None of these

Correct answer: (A)
Current asset

39. Which of the following is a liability?

1. Loan from Mr.Y
2. loan to Mr.y
3. Both (a) (b)
4. None of these

Correct answer: (A)
Loan from Mr.Y

40. Advantages of cost accounting accrue:

1. Only to workers
2. Only to government
3. Only to consumers
4. To management, workers, consumers and government

Correct answer: (D)
To management, workers, consumers and government