61
The term banking is defined in section . . . . . . . .
A)
Section 5 of Banking Regulation Act
B)
Section 4
C)
Section 7
D)
None of these
Answer & Solution
Answer: Option
A
62
Which of the following represents term deposit?
A)
Savings deposit
B)
Current deposit
C)
Fixed deposit
D)
None of these
Answer & Solution
Answer: Option
C
63
Errors of carry forward from one year to another year affect . . . . . . . .
A)
personal account
B)
real account
C)
nominal account
D)
both personal and real account
Answer & Solution
Answer: Option
A
64
What does GAAP represents?
A)
Generally Accepted Audit Procedure
B)
Generally Accepted Accounting Principles
C)
General Agreement on Audit Principles
D)
General Agreement on Accounting Principles
Answer & Solution
Answer: Option
B
65
Which one of the following error will affect the agreement of the trial balance?
A)
A sale of Rs. 20 to Ram entered in the sales book as Rs. 200
B)
Purchase of Rs. 500 credited to Ram instead of Shyam
C)
Sale returns of Rs. 1000 correctly entered in the sales returns book but posted to the debit of Sundar
D)
Cash sale of furniture credited to sales account
Answer & Solution
Answer: Option
C
66
Rs. 500 spent on servicing office typewriter should be debited to . . . . . . . .
A)
Expenses account
B)
Typewriter account
C)
Repairs account
D)
Services account
Answer & Solution
Answer: Option
C
67
Select the correct amount of purchases, given on the following information:
A)
Rs. 1,15,120
B)
Rs. 62,650
C)
Rs. 1,10,420
D)
None of these
Answer & Solution
Answer: Option
D
68
Contingent liability appears as a footnote in the balance sheet. This is in accordance with the accounting principle of . . . . . . . .
A)
Consistency
B)
Disclosure
C)
Materiality
D)
Conservatism
Answer & Solution
Answer: Option
B
69
Cost of goods sold is Rs. 1,00,000 rate of gross profit on sales is 20%. What is the amount of sales?
A)
Rs. 1,20,000
B)
Rs. 80,000
C)
Rs. 1,25,000
D)
None of these
Answer & Solution
Answer: Option
C
70
Which one of the following errors is an error of principle?
A)
Debiting repairs account instead of furniture account
B)
Sale of Rs. 200 entered in the books as Rs. 2000
C)
Cash sale of Rs. 500 wrongly entered in sales book
D)
Purchase transaction entered in purchases return book
Answer & Solution
Answer: Option
A
