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01	Financial Accounting ICOM Mcqs Chapter 01	02	Financial Accounting ICOM Mcqs Chapter 02
03	Financial Accounting ICOM Mcqs Chapter 03	04	Financial Accounting ICOM Mcqs Chapter 04
05	Financial Accounting ICOM Chapter 05	06	Financial Accounting ICOM Chapter 06
07	Financial Accounting ICOM Mcqs Chapter 07	08	Financial Accounting ICOM Mcqs Chapter 08
09	Financial Accounting ICOM Mcqs Chapter 09	10	Financial Accounting ICOM Mcqs Chapter 10
11	Financial Accounting ICOM Mcqs Chapter 11	12	Financial Accounting ICOM Mcqs Chapter 12
13	Financial Accounting ICOM Mcqs Chapter 13	14	Financial Accounting ICOM Mcqs Chapter 14
15	Financial Accounting ICOM Mcqs Chapter 15	16	Financial Accounting ICOM Mcqs Chapter 16

Chapter – 1

INTRODUCTION

^{Encircle the most appropriate answer from following:}

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^{1)The prime function of accounting is to:}

1. ^{Record economic data}
2. ^{Classifying and summarising business transactions}
3. ^{Classifying and recording business transactions}
4. ^{Provide the information basis for action}

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^{2) Any legal activity which is done for the purpose of earning profit, is called :}

1. ^Business
2. ^Trust
3. ^Society
4. ^{None of a & b}

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^{3) All those thing, which are purchased for resale purpose, are called:}

1. ^Assets
2. ^Liabilities
3. ^Sale
4. ^Goods

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^{4) Book-keeping is mainly concerned with:}

1. ^{Classifying of business transactions}
2. ^{Interpreting of business transactions in money terms.}
3. ^{None of above}
4. ^{Recording of business transactions}

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^{5) Book-keeping provides the:}

1. ^{Final information}
2. ^{Primary function}
3. ^{Secondary function}
4. ^{All of the above}

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^{6) how many branches of accounting are:}

1. ^Two
2. ^Four
3. ^One
4. ^Three

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^{7) Accounting is the language of :}

1. ^School
2. ^Business
3. ^America
4. ^Proprietor

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^{8) The rate of allowance given by a creditor to a debtor, if he pays his debts before the due date of payment is normally:}

1. ^{5 %}
2. ^2%
3. ^10%
4. ^15%

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^{9) All those good which are lying unsold in a business are termed as:}

1. ^Stock
2. ^Revenue
3. ^Expense
4. ^Sale

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^{10) The term expenses & expenditures are:}

1. ^Same
2. ^OPPOSITE
3. ^Different
4. ^{Singular or plural}

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^{11) A person who owes money to the business is called:}

1. ^Creditor
2. ^Shareholder
3. ^Debtor
4. ^Owner

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^{12) Stages for proceeding a transaction are:}

1. ^Recording
2. ^Classifying
3. ^Summarising
4. ^{All of these}

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^{13) If damaged or below standard goods returned to the seller are called:}

1. ^{Return outward}
2. ^{Purchase return}
3. ^{Return to supplier}
4. ^{All of these}

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^{14) The system of providing quantified information about an organization to people who need such information is called:}

1. ^Economics
2. ^Bookkeeping
3. ^Accounting
4. ^{None of above}

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^{15) The amount of cash or goods invested by the proprietor in a business is called:}

1. ^Revenue
2. ^Capital
3. ^Assets
4. ^Expense

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^{16) A person from whom credit  purchases are made is called:}

1. ^Debtor
2. ^Banker
3. ^Creditor
4. ^Owner

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^{17) The price of goods sold or services provided by a business to its customers is called:}

1. ^Expense
2. ^Revenue
3. ^Liability
4. ^Income

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^{18) A form of remuneration for services rendered by one person to another:}

1. ^{Discount allowed}
2. ^Commission
3. ^{Discount received}
4. ^Expenditure

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^{19) It takes place when assets or services are acquired:}

1. ^Revenue
2. ^Expenses
3. ^Assets
4. ^Expenditure

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^{20) The discount allowed by the wholesaler to the retailer at the list price of goods is called:}

1. ^{Cash discount}
2. ^{Trade discount}
3. ^{Discount allowed}
4. ^{Discount received}

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^{21) A person to whom the goods or services are sold on credit basis is known as:}

1. ^Creditor
2.  ^investor
3.  ^Debtor 
4.  ^Proprietor

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^{22)  Net income is equal to:}

1. ^{Revenues – Expenses}
2. ^{Revenue – Income}
3. ^{Assets – Liabilities}
4. ^{Revenues + Expense;}

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^{23) The system of recording transactions having two fundamental aspects is known as:}

1. ^{Single entry system}
2.  ^{Modem System}
3.  ^{Double entry system}
4.  ^{None of these}

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^{24) According to this concept. it is assumed that business will exist for an indefinite time period:}

1.  ^{Business entity concept}
2.  ^{Going concern concept}
3. ^{Realisation Concept}
4.  ^{None of these}

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^{25)Business and owner both have separate identity:}

1. ^{Cost concept}
2.  ^{Realization concept}
3. ^{Going concern concept}
4.  ^{Business entity concept}

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^{26 A record is made only of those information that can be expressed in monetary terms:}

1. ^{Accounting period concept}
2. ^{Going concern concept}
3. ^{Non-monetary concept}
4. ^{Money measurement concept}

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^{27. An asset is recorded at a price at which it is acquired:}

1. ^{Realization concept.}
2. ^{Cost concept}
3.  ^{Money measurement concept}
4. ^{Dual aspect concept}

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^{28)  Modern accounting is based on:}

1. ^{Going concern concept}
2.  ^{Dual aspect concept}
3. ^{Cost concept}
4. ^{Matching concept}

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^{29) Expenses are matched with revenues to study the business result:}

1. ^{Business entity concept}
2. ^{Dual aspect}
3. ^{Matching concept}
4. ^{Cost concept}

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^{30) Revenues recognized at the time when goods are sold or services are rendered:}

1. ^{Dual aspect concept}
2. ^{Realization concept}
3. ^{Cost concept}
4. ^{Money measurement concept}

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^{31) According to this convention. ‘anticipate no profits but provide for all possible losses:}

1. ^Materiality
2. ^Conservatism
3. ^{Full disclosure}
4. ^Consistency

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^{32. According to this convention. the users of financial statements are informed of any facts necessary for the proper interpretation of statements.}

1. ^Consistency
2. ^Conservatism
3.  ^Materiality
4. ^{Full disclosure}

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^{33. According to this convention. accounting practice should remain unchanged from one period to another:}

1. ^consistency
2.  ^Materiality
3. ^Conservatism
4. ^{Full disclosure}

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^{34) A business in which a merchant purchases goods and sells it in the same position is called:}

1. ^{Service concern}
2. ^{Manufacturing Concern}
3. ^{Trading Concern}

^{Nominal concer}

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