Important Questions:

Section A: (Multiple Choice Questions)

Note: Attempt all questions from this section.

Q.1:- Choose the correct answer for each from the given option:

i) Discount on list price or catalogue price is known as:

1. Sales discount
2. Early settlement discount
3. Purchases discount
4. Trade discount

ii) Mathematical error in the preparation of ledger can be detected with the help of :

1. Financial statements
2. General journal
3. Special journals
4. Trial Balance

iii) Which of the following best describes "Sales"

1. Old Office equipment
2. Merchandise sold on cash only
3. Merchandise sold on credit only
4. Merchandise sold on cash and credit

iv) If an account shows a credit balance that account represents:

1. Revenue
2. Liabilities
3. Owner's Equity
4. All of the above

v) The process of recording transactions in chronological order is called:

1. Posting
2. Journalizing
3. Balaning
4. Transferring

vi) Trial balance can be best describe as:

1. It is a part of financial statements
2. It shows a list of balances of all accounts
3. It shows a financial performance of business
4. It shows financial position of business

vii) The balance brought forward in the Bank Account in the condition of overdraft is on the:

1. Debit side
2. Credit side
3. May be on either side
4. None of the above

viii) Which of the following is returns outwards:

1. Goods purchased from suppliers
2. Goods returned by customers
3. Goods taken by customers
4. Goods returns to suppliers

ix) Which of the following ia a contra entry:

1. Cash is deposited in to bank
2. Cash is withdrawn from bank for office use
3. Cheque deposited in to bank on any future date
4. All of the above

x) Which of the following represents clains to economic resources:

1. Assets, but not liabilities or owner's equity
2. Liabilities and owner's equity, but not assets
3. Liabilities, but not assets or owner's equity
4. Owner's equity, but not assets or liabilitis

xi) A cheque issued by you but not yet paid by the bank is called:

1. Dishonoured cheque
2. Certified cheque
3. Unpresented cheque
4. Uncontrolled cheque

xii) Which of the following items in not reponsible for differences between cash book balnce and bank statement:

1. Interest given by bank
2. Outstanding cheque
3. Direct deposit by customer
4. Equipment purchased on cash

xiii) Salaries paid Rs. 10,000 were posted to salaries account as Rs.1,000. To rectify the error, the salaries account will be:

1. Debited by Rs 10,000
2. Credited by Rs 10,000
3. Credited by Rs. 9000
4. Debited by Rs. 9,000

xiv) Which of the following best describes "Drawing":

1. Owner invested cash into business
2. Withdrew cash from bank for office use
3. Cash and commodities taken by owner for personal use
4. Dep[osited cash in to bank

xv) In accounting term, "Purchases" means:

1. All items purchased on credit
2. Goods purchased on cash only
3. Goods purchased for resale purpose
4. Goods purchased on credit only

xvi) Which of the following is correct:.

1. Compound entry requires at least two accounts
2. Posting is done chronologically in journal
3. Debit means left hand side for every ledger
4. Capital = Assets - Net loss

xvii) Which of the following is not an asset:

1. Account recivable
2. Prepaid expense
3. Note recivable
4. Account payable

xviii) Transaction is only possible when there are:

1. At least one party
2. At least two parties
3. Maximum two parties
4. Not more than three parties

xix) Which of the following discount is given on prompt payment:

1. Trade discount
2. Quality discount
3. Cash discount
4. None of the above

xx) Which of the following is a liability:

1. Machinery
2. Loan from X
3. Building
4. Cash

Section B: (Short Answer Questions)

Q2- Important Short answer Questions:

Accounting Theory:

• Define Accounting
• State the rules of Debit and Credit
• List the steps involved in Accounting cycle
• State the Fundamental Accounting Equation
• Show the effects of Transactions on Accounting Equation

Accounting Equations:

1994 (Q1), 1993 (Q1), 1990 (Q1), 2002 R&P (Q1), 2003 P (Q1), 2003 R (Q1), 2004 (Q7)

General Journal, General Ledger And Trail Balance:

2007 (Q2), 2002R (Q2), 1998 (Q4), 1994 (Q3), 1993 (Q3), 1999 (Q3), 2003R (Q3), 2004 (Q1), 2005 (Q2)

Cash Book:

2008 (Q2), 1999 (Q2), 1996 (Q2), 1993 (Q2), 2003R (Q2) ASSUMING THE BANK BALANCE AS CREDIT BALANCE (OVER DRAFT BALANCE)

Petty Cash Book:

Bank Reconcillation Statement:

2000 (Q7B), 1989 (Q4), 1990 (Q6), 1993 (Q8), 1998 (Q3), 1999 (Q4), 2003R (Q5), 2004 (Q3), 2008 (Q6)

Special Journal:

1992 (Q5), 1993 (Q7), 1994 (Q7), 1996 (Q4), 1997 (Q5), 2000 (Q8), 2004 (Q5), 2004 (Q3), 2008 (Q6)

Section C: (Detailed Answer Questions)

2001 (Q7), 2002P (Q8), 1992 (Q6), 1995 (Q6), 1996 (Q7), 2003 (Q7), 1990 (Q7), 1993 (Q5), 1994 (Q5)

Closing Process:

1998 (Q6), 1996 (Q8), 2000 (Q5), 1995 (Q7), 2002P (Q7), 1992 (Q8), 1994 (Q6)

Financial Statements:

2004 (Q6), 1994 (Q4), 1995 (Q5), 1999 (Q5), 1997 (Q8), 1992 (Q7), 2003 R&P (Q7), 2002P (Q7), 2002R (Q5), 2008 (Q3), 2007 (Q6)

Best Of Luck