Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2007 M.B.A Financial and Management Accounting - Question Paper

a)Going concern
b)Separate legal entity
c)Business entity
d)Legal aspect
Ans: C

Q30A maximum limit of _____ months is set for the accounting period under the Companies Act of 1956

a)24
b)15
c)12
d)18
Ans: B

Q31 Which of the subsequent account does not form the group when classified on the basis of type of the account?
a)Bank over draft
b)Accumulated profits
c)Owner’s capital
d)Prepaid Expenses
Ans: D

Q32 Which of the subsequent account does not form the group when classified on the basis of type of the account?

a)Cash account
b)Bank account
c)Drawings account
d)Capital account
Ans: A

Q33. Which of the subsequent statement is incorrect?

a)Every debit entry should have a corresponding credit entry
b)A debit reduces revenue while a credit increases the revenue in case of nominal account
c)A debit increases the owner’s equity while a credit reduces the owner’s equity in case of personal account
d)In case of a real account-debit what comes in and credit what goes out
Ans: C
Q 34. Under ______ concept every debit entry has an corresponding credit entry

a)Money measurement
b)Double entry
c)Matching
d)GAAP
Ans: B

Q35. ______ is prepared to make sure that total debits equal to the credit

a)Balance sheet
b)Profit & Loss A/c
c)Trial balance
d)Reconciliation statement
Ans: C

Q36. ______ is not a subsidiary book of account

a)Purchase book
b)Journal
c)Journal proper
d)Sales book
Ans: B


Q37. ______ is a supporting document for any transaction

a)Bank A/c
b)Voucher
c)Debit note
d)Counterfoil
Ans: B

Q38. Rent paid to the land lord not entered in the books of account. This is a ______

a)Error of commission
b)Error of principle
c)Error of omission
d)Off setting errors
Ans: C

Q39. Item appearing in the Trading A/c is
a)Wages
b)Salaries
c)Carriage outward
d)Commission received
Ans: A

Q40. Depreciation can be charged on all The fixed other than
a)Building
b)Investments
c)Land
d)Debtors
Ans: D

Q41. AS-6 of ICAI deals with

a)Valuation of assets
b)Capital assets
c)Fixed assets
d)Depreciation accounting
Ans: D




Q42. A cash book which is used to record cash and bank transactions is referred to as _______

Earning:   Approval pending.