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All questions of Accounting Principles and Policies for Grade 9 Exam
Which of the following accounts can be classified as a real account?- a)Rent expenses account
- b)Rent income account
- c)insurance expenses account
- d)Asset accounts
Correct answer is option 'D'. Can you explain this answer?
Which of the following accounts can be classified as a real account?
a)
Rent expenses account
b)
Rent income account
c)
insurance expenses account
d)
Asset accounts
|
Kiran Mehta answered |
A real account is an account that retains and rolls forward its ending balance from period to period. The areas in the balance sheet in which real accounts are found are assets, liabilities, and equity.
The real accounts are the balance sheet accounts which include the following: Asset accounts (cash, accounts receivable, buildings, etc.) Liability accounts (notes payable, accounts payable, wages payable, etc.) Stockholders' equity accounts (common stock, retained earnings, etc.)
What accounting method is followed for the recording of transactions?- a)Double Entry System
- b)Single entry system
- c)Cash Basis System
- d)None of them
Correct answer is option 'A'. Can you explain this answer?
What accounting method is followed for the recording of transactions?
a)
Double Entry System
b)
Single entry system
c)
Cash Basis System
d)
None of them
|
Anshu Joshi answered |
The double-entry system of accounting or bookkeeping means that for every business transaction, amounts must be recorded in a minimum of two accounts. The double-entry system also requires that for all transactions, the amounts entered as debits must be equal to the amounts entered as credits.
Which is the evidence of business transaction- a)Balance sheet
- b)Voucher
- c)Journal
- d)Ledger
Correct answer is option 'B'. Can you explain this answer?
Which is the evidence of business transaction
a)
Balance sheet
b)
Voucher
c)
Journal
d)
Ledger
|
Ishan Choudhury answered |
You can watch fun with accounting videos this is just an example for ledger
https://www.youtube.com/watch?v=RQo1UMtRzR4
Can you explain the answer of this question below:On January 1, Sohan paid rent Rs. 5,000. This can be classified as
- A:
An event
- B:
A transaction.
- C:
A transaction as well as an event.
- D:
Neither a transaction nor an event.
The answer is b.
On January 1, Sohan paid rent Rs. 5,000. This can be classified as
An event
A transaction.
A transaction as well as an event.
Neither a transaction nor an event.
|
Anand Dasgupta answered |
Explanation:
A transaction is an exchange of goods, services, or money between two or more parties. In this case, Sohan paid rent of Rs. 5,000 which involves an exchange of money between Sohan and his landlord. Hence, it is a transaction.
An event, on the other hand, is a happening or occurrence that may or may not involve an exchange of goods, services, or money. In this case, if Sohan had received the rent payment from his landlord, it would have been an event. However, since he paid the rent, it is not just an event.
Therefore, the correct answer is option 'B' - A transaction.
A transaction is an exchange of goods, services, or money between two or more parties. In this case, Sohan paid rent of Rs. 5,000 which involves an exchange of money between Sohan and his landlord. Hence, it is a transaction.
An event, on the other hand, is a happening or occurrence that may or may not involve an exchange of goods, services, or money. In this case, if Sohan had received the rent payment from his landlord, it would have been an event. However, since he paid the rent, it is not just an event.
Therefore, the correct answer is option 'B' - A transaction.
Net Profit or Loss will be derived at _______ stage of accounting- a)Classifying
- b)Interpretation
- c)Recording
- d)Summarising
Correct answer is 'D'. Can you explain this answer?
Net Profit or Loss will be derived at _______ stage of accounting
a)
Classifying
b)
Interpretation
c)
Recording
d)
Summarising
|
Alok Mehta answered |
The answer is D.Summarising stage is concerned with the preparation and presentation of the classified data in a manner useful to the internal as well as external users of financial statements. This process leads to the preparation of the following financial statements. Therefore, Net Profit or Loss is derived at the summarising stage.
Amount paid in advance for a particulars expenses is known as_____- a)Outstanding expense
- b)Prepaid expense
- c)Both
- d)None
Correct answer is option 'B'. Can you explain this answer?
Amount paid in advance for a particulars expenses is known as_____
a)
Outstanding expense
b)
Prepaid expense
c)
Both
d)
None
|
|
Aryan Khanna answered |
Prepaid expenses are when a company gives an employee money in advance to pay for a known cost. Instead of asking that employee to pay out of their own pocket, you give them the money before they need it.
Which of the following does not represents a business transactions?- a)Goods are sold on credit
- b)Efficiency of Management
- c)Assets sold and money introduced in business
- d)Capital introduced in the business
Correct answer is option 'B'. Can you explain this answer?
Which of the following does not represents a business transactions?
a)
Goods are sold on credit
b)
Efficiency of Management
c)
Assets sold and money introduced in business
d)
Capital introduced in the business
|
Tanya Mishra answered |
B as efficiency of mgmt. can't expressed in monetary terms
Sale is also known as ________
- a)Revenue from operations
- b)Profit
- c)Cost of goods sold
- d)Income
Correct answer is option 'A'. Can you explain this answer?
Sale is also known as ________
a)
Revenue from operations
b)
Profit
c)
Cost of goods sold
d)
Income
|
Saumya Ahuja answered |
Revenue=Cost + profit. So,sale include both Cost as well as Profit. so,that's why sale is also known as Revenue from operations.
The person who makes the investment and bears all the risks connected with the business is called- a)Proprietor
- b)Debtor
- c)Debenture holder
- d)Creditor
Correct answer is option 'A'. Can you explain this answer?
The person who makes the investment and bears all the risks connected with the business is called
a)
Proprietor
b)
Debtor
c)
Debenture holder
d)
Creditor
|
|
Arun Yadav answered |
Proprietor is the person who invested capital in the business and bear all the risks,and also known as the owner of the business.
Posting of entries in the ledger is done from _____- a)Vouchers
- b)Journal
- c)Balance sheet
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Posting of entries in the ledger is done from _____
a)
Vouchers
b)
Journal
c)
Balance sheet
d)
None of these
|
Maheshwar Chawla answered |
After the transactions are recorded in the journal, it is then posted in the principal book called as 'Ledger'. The process of transferring the entries from journal to respective ledger accounts is called ledger posting. Balancing of ledgers is carried to find out differences at the end of the year.
On 31st December, 2005, Ashok Ltd. purchased a machine from Mohan Ltd. for Rs. 1,75,000. This is : (year end : 31st December)
- a)A transaction
- b)An event
- c)Both transaction as well as event
- d)None of these
Correct answer is option 'C'. Can you explain this answer?
On 31st December, 2005, Ashok Ltd. purchased a machine from Mohan Ltd. for Rs. 1,75,000. This is : (year end : 31st December)
a)
A transaction
b)
An event
c)
Both transaction as well as event
d)
None of these
|
|
Alok Mehta answered |
The purchase of a machine by Ashok Ltd. from Mohan Ltd. for Rs. 1,75,000 on 31st December, 2005, is both a transaction as well as an event.
A transaction is an exchange of goods or services for something of value. In this case, Ashok Ltd. exchanged Rs. 1,75,000 for a machine from Mohan Ltd., which qualifies as a transaction.
An event, on the other hand, is a happening or occurrence that has significance or consequences. The purchase of a machine by Ashok Ltd. from Mohan Ltd. on 31st December, 2005, can be considered an event as it is a significant happening that has financial implications for both companies.
Therefore, the purchase of the machine is both a transaction and an event.
Can you explain the answer of this question below:Expenditure on purchase of machinery is a
- A:
Revenue expenditure
- B:
Deferred revenue expenditure
- C:
Capital expenditure
- D:
None of these
The answer is C.
Expenditure on purchase of machinery is a
Revenue expenditure
Deferred revenue expenditure
Capital expenditure
None of these
|
Madhurima Dasgupta answered |
Capital expenditure. Machinery is a permanent asset of the business and can be used for many years but it will benefit to the business until it is installed and erected at a proper place. So amount spent on purchase of machinery, on its installation and erection is capital expenditure.
Which of the following is a limitation of accounting?- a)Facilitates loan
- b)Replacing Memory
- c)Window Dressing
- d)Evidence in court
Correct answer is option 'C'. Can you explain this answer?
Which of the following is a limitation of accounting?
a)
Facilitates loan
b)
Replacing Memory
c)
Window Dressing
d)
Evidence in court
|
Gowri Nambiar answered |
Window dressing refers to actions taken or not taken prior to issuing financial statements in order to improve the appearance of the financial statements.
Goods/Assets or Cash used for personal use by a businessman is called______- a)Investment
- b)Capital
- c)Drawings
- d)Profit
Correct answer is option 'C'. Can you explain this answer?
Goods/Assets or Cash used for personal use by a businessman is called______
a)
Investment
b)
Capital
c)
Drawings
d)
Profit
|
Maitri Sharma answered |
Drawings in Business
Drawings are the goods/assets or cash used for personal use by a businessman. It is the amount of cash or goods withdrawn from the business by the owner or partner for personal use. These withdrawals reduce the capital of the business and are not treated as an expense.
Example: If the owner of a business withdraws $5000 cash from the business for personal use, it is known as drawings.
Drawings are not considered as an expense because they are not incurred to generate revenue. It is a personal withdrawal of capital from the business for personal use.
Importance of Drawings in Business
Drawings are important for the following reasons:
1. Helps in determining the net profit of the business.
2. Helps in determining the capital of the business.
3. Helps in determining the financial position of the business.
4. Helps in determining the tax liability of the business.
Conclusion
Drawings are the goods/assets or cash used for personal use by a businessman. It is a personal withdrawal of capital from the business for personal use. Drawings are not considered as an expense because they are not incurred to generate revenue. It helps in determining the net profit, capital, financial position, and tax liability of the business.
Drawings are the goods/assets or cash used for personal use by a businessman. It is the amount of cash or goods withdrawn from the business by the owner or partner for personal use. These withdrawals reduce the capital of the business and are not treated as an expense.
Example: If the owner of a business withdraws $5000 cash from the business for personal use, it is known as drawings.
Drawings are not considered as an expense because they are not incurred to generate revenue. It is a personal withdrawal of capital from the business for personal use.
Importance of Drawings in Business
Drawings are important for the following reasons:
1. Helps in determining the net profit of the business.
2. Helps in determining the capital of the business.
3. Helps in determining the financial position of the business.
4. Helps in determining the tax liability of the business.
Conclusion
Drawings are the goods/assets or cash used for personal use by a businessman. It is a personal withdrawal of capital from the business for personal use. Drawings are not considered as an expense because they are not incurred to generate revenue. It helps in determining the net profit, capital, financial position, and tax liability of the business.
Sales is also known as _________- a)Revenue from operations
- b)Profit
- c)Income
- d)Cost of goods sold
Correct answer is option 'A'. Can you explain this answer?
Sales is also known as _________
a)
Revenue from operations
b)
Profit
c)
Income
d)
Cost of goods sold
|
Nipuns Institute answered |
Sales, in the context of a business's financial statements, is often referred to as "Revenue from operations." This term highlights that the income generated is specifically from the core business activities of selling goods or services, as opposed to other sources of income like investments or incidental gains. This classification helps in clearly understanding the main revenue-generating activities of a business.
Can you explain the answer of this question below:Which is the last step of accounting as a process of information
- A:
Preparation of financial transaction
- B:
Analysis of information
- C:
Communication of information
- D:
Recording the transaction
The answer is C.
Which is the last step of accounting as a process of information
Preparation of financial transaction
Analysis of information
Communication of information
Recording the transaction
|
Praveen Kumar answered |
Communication of information is the last step of accounting as process of accounting information. Communicating the information is very necessary for the outsiders so they can look over the affairs and working efficiency of the business.
Accounting has universal application for recording _______ and events and presenting suitable information for decision making- a)Entries
- b)Transactions
- c)Data
- d)Figures.
Correct answer is option 'B'. Can you explain this answer?
Accounting has universal application for recording _______ and events and presenting suitable information for decision making
a)
Entries
b)
Transactions
c)
Data
d)
Figures.
|
|
Kavita Joshi answered |
Accounting has universal application for recording transactions and events and presenting suitable information to aid decision-making regarding any type of economic activity ranging from a family function to functions of the national government. But hereinafter we shall concentrate only on business activities and their accounting because the objective of this study material is to provide a basic understanding on accounting for business activities. Nevertheless, it will give adequate knowledge to think coherently of accounting as a field of study for universal application.
On March 31, 2011 after sale of goods worth Rs. 2,000, he is left with the closing inventory of Rs. 10,000. This is- a)An event
- b)A transaction.
- c)A transaction as well as an event.
- d)Neither a transaction nor an event
Correct answer is 'A'. Can you explain this answer?
On March 31, 2011 after sale of goods worth Rs. 2,000, he is left with the closing inventory of Rs. 10,000. This is
a)
An event
b)
A transaction.
c)
A transaction as well as an event.
d)
Neither a transaction nor an event
|
Neha Yadav answered |
Correct answer is option A
Which of the following is correct? Owner’s Equity is : - a)(Current Asset + Fixed Asset) + (Current Liabilities + Long term Liabilities)
- b)(Current Asset + Fixed Asset) – (Current Liabilities + Long term Liabilities)
- c)(Current Asset – Fixed Asset) – (Current Liabilities + Long term Liabilities)
- d)None of the above.
Correct answer is option 'B'. Can you explain this answer?
Which of the following is correct? Owner’s Equity is :
a)
(Current Asset + Fixed Asset) + (Current Liabilities + Long term Liabilities)
b)
(Current Asset + Fixed Asset) – (Current Liabilities + Long term Liabilities)
c)
(Current Asset – Fixed Asset) – (Current Liabilities + Long term Liabilities)
d)
None of the above.
|
Deepika Desai answered |
Owner.
The expense that has been incurred but has not been paid are called- a)Prepaid expenses
- b)Outstanding expenses
- c)Loss
- d)Revenue
Correct answer is option 'B'. Can you explain this answer?
The expense that has been incurred but has not been paid are called
a)
Prepaid expenses
b)
Outstanding expenses
c)
Loss
d)
Revenue
|
Priya Patel answered |
Outstanding expenses are those expenses which have been incurred and consumed during an accounting period and are due to be paid but are not paid. Examples include outstanding salary, outstanding rent, etc. Outstanding expenses are recorded in the books at the end of an accounting period to show true numbers of a business.
Where _____ ends _____ begins- a)Book keeping and Finance
- b)Accounting and Book keeping
- c)Book keeping and Accounting
- d)Finance and Accounting
Correct answer is option 'C'. Can you explain this answer?
Where _____ ends _____ begins
a)
Book keeping and Finance
b)
Accounting and Book keeping
c)
Book keeping and Accounting
d)
Finance and Accounting
|
KP Classes answered |
Bookkeeping primarily involves the recording of financial transactions, which is the foundational part of the accounting process. Accounting begins where bookkeeping ends, extending into the interpreting, classifying, analyzing, reporting, and summarizing financial data. This transition shows that accounting builds on the data provided by bookkeeping to produce financial statements and insights necessary for decision-making within a business.
Rs. 5,000 paid as rent of office premises in an/a _________- a)Event
- b)Transaction
- c)Both
- d)None
Correct answer is option 'B'. Can you explain this answer?
Rs. 5,000 paid as rent of office premises in an/a _________
a)
Event
b)
Transaction
c)
Both
d)
None
|
|
Palak Choudhary answered |
Explanation:
This question is related to the accounting concept of "transactions".
Transactions are defined as any financial event that affects a business's financial position and can be measured reliably.
In this case, the payment of rent for office premises is a financial event that affects the business's financial position and can be measured reliably. Therefore, it is considered a transaction.
Events, on the other hand, are occurrences that may or may not have a financial impact on the business. For example, attending a business conference may be considered an event, but it does not have a direct financial impact on the business.
Therefore, the correct answer is option B - Transaction.
This question is related to the accounting concept of "transactions".
Transactions are defined as any financial event that affects a business's financial position and can be measured reliably.
In this case, the payment of rent for office premises is a financial event that affects the business's financial position and can be measured reliably. Therefore, it is considered a transaction.
Events, on the other hand, are occurrences that may or may not have a financial impact on the business. For example, attending a business conference may be considered an event, but it does not have a direct financial impact on the business.
Therefore, the correct answer is option B - Transaction.
The main purpose of balance sheet is to show ______- a)Assets and Capital
- b)Creditors
- c)Financial Position
- d)Old Accounting Records
Correct answer is option 'C'. Can you explain this answer?
The main purpose of balance sheet is to show ______
a)
Assets and Capital
b)
Creditors
c)
Financial Position
d)
Old Accounting Records
|
Mukunth Shiva answered |
The main purpose of balance sheet is to show financial position of the business because it shows the liquidity and creditworthiness of the business.
This a MCQ (Multiple Choice Question) based practice test of Chapter 1 - Introduction to Accounting of Accountancy of Class XI (11) for the quick revision/preparation of School Board examinationsQ What type of transactions we record in the books of accounts?- a)Political nature
- b)Social nature
- c)Financial nature
- d)Cash nature
Correct answer is option 'C'. Can you explain this answer?
This a MCQ (Multiple Choice Question) based practice test of Chapter 1 - Introduction to Accounting of Accountancy of Class XI (11) for the quick revision/preparation of School Board examinations
Q What type of transactions we record in the books of accounts?
a)
Political nature
b)
Social nature
c)
Financial nature
d)
Cash nature
|
|
Kiran Mehta answered |
Users of accounting information include
- a)Trade payables/ Suppliers
- b)Lenders.
- c)Customers.
- d)all of the above.
Correct answer is option 'D'. Can you explain this answer?
Users of accounting information include
a)
Trade payables/ Suppliers
b)
Lenders.
c)
Customers.
d)
all of the above.
|
Jayant Mishra answered |
The correct answer is 4 - all of the above.
Users of accounting information include various stakeholders who have an interest in a company's financial performance and position. These stakeholders can use accounting information to make decisions regarding their engagement with the company. The users of accounting information can include trade payables/suppliers, lenders, customers, investors, regulatory authorities, employees, management, and others. All of the options given in the question - trade payables/suppliers, lenders, and customers - are users of accounting information, but there are also many others.
Financial position of the business is ascertained on the basis of - a)Records prepared under book-keeping process.
- b)Trial balance.
- c)Accounting reports.
- d)None of the above.
Correct answer is option 'C'. Can you explain this answer?
Financial position of the business is ascertained on the basis of
a)
Records prepared under book-keeping process.
b)
Trial balance.
c)
Accounting reports.
d)
None of the above.
|
|
Arjun Singhania answered |
Accounting reports are compilations of financial information that are derived from the accounting records of a business. These can be brief, custom-made reports that are intended for specific purposes, such as a detailed analysis of sales by region, or the profitability of a specific product line. More commonly, accounting reports are considered to be equivalent to the financial statements. These statements include the following reports:
1. Income statement. States the revenues earned during a period, less expenses, to arrive at a profit or loss. This is the most commonly used accounting report, since it is used to judge the performance of a business.
2. Balance sheet. Shows the ending asset, liability, and equity balances as of the balance sheet date. It is used to judge the liquidity and financial reserves of a business.
3. Statement of cash flows. Shows the sources and uses of cash related to operations, financing, and investments. Can be the most accurate source of information regarding the cash-generating ability of an entity.
A number of disclosures may accompany the financial statements, in the form of footnotes. This is more likely to be the case when the financial statements have been audited.
Double Accounting System owes its origin to : a)Luca De Pacioli b)Adam Smithc)Kohlerd)Karl MarxCorrect answer is option 'A'. Can you explain this answer?
b)Adam Smith
c)Kohler
d)Karl Marx
Correct answer is option 'A'. Can you explain this answer?
|
|
Poonam Reddy answered |
Luca Pacioli, in venice (1494) is considered as the first book on double entry book-keeping. A portion of this book contains knowledge of business and book-keeping.
The main objectives of Book- Keeping are :- a)Complete Recording of Transactions
- b)Ascertainment of Financial Effect on the Business
- c)Analysis and interpretation of data
- d)(a) and (b) both
Correct answer is option 'D'. Can you explain this answer?
The main objectives of Book- Keeping are :
a)
Complete Recording of Transactions
b)
Ascertainment of Financial Effect on the Business
c)
Analysis and interpretation of data
d)
(a) and (b) both
|
|
Arjun Singhania answered |
- Objective of Book-keeping
- - To have a permanent record of each transaction of the business.
- - To show the financial effect on the entity of each transaction recorded.
- - To ascertain the combined effect of all the transactions (during an accounting period) on the financial position on a particular date.
- - To disclose the factors responsible for earning profit or suffering loss in a given period.
- - The amount recoverable by the business from others (sundry debtors) and payable to others (sundry creditors)
- - Determination of tax-liability of the business.
- - Prevention of errors and frauds.
- - Protection of assets.
- - Measure of exercising a system of control.
Which of these is not available in the Financial Statements of Company?- a)Total Sales
- b)Total Profit & Loss
- c)Capital
- d)Cost of Production
Correct answer is option 'D'. Can you explain this answer?
Which of these is not available in the Financial Statements of Company?
a)
Total Sales
b)
Total Profit & Loss
c)
Capital
d)
Cost of Production
|
Neha Sindal answered |
Simply cost of production isnt taken in consideration due to this is a expense related to manufacturing costs nd this doesn't includes in the trading or p/l ac or balance sheet that is there is a all new account for the firms who r involving in manufacturing business called manufacturing account
so this is not includes in financial statements
so this is not includes in financial statements
A company prepares statement of Profit and Loss in the form prescribed in the Companies Act of
- a)1956
- b)1950
- c)1945
- d)1932
Correct answer is option 'A'. Can you explain this answer?
A company prepares statement of Profit and Loss in the form prescribed in the Companies Act of
a)
1956
b)
1950
c)
1945
d)
1932
|
|
Rocky Gupta answered |
1 Form and Content of Balance Sheet : Balance sheet of a company is prepared and presented in the form prescribed in (Revised) Schedule VI of the Companies Act, 1956. The form prescribed is vertical
..from Google
Bookkeeping mainly concerns with which part of accounting process?- a)Analyzing
- b)Preparing financial statements
- c)Recording financial information
- d)Auditing the books of accounts
Correct answer is option 'C'. Can you explain this answer?
Bookkeeping mainly concerns with which part of accounting process?
a)
Analyzing
b)
Preparing financial statements
c)
Recording financial information
d)
Auditing the books of accounts
|
Vikas Kapoor answered |
Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business. Bookkeeping refers mainly to the record-keeping aspects of financial accounting, and involves preparing source documents for all transactions, operations, and other events of a business.
Net Profit or Loss will be derived at _______ stage of accounting- a)Classifying
- b)Interpretation
- c)Recording
- d)Summarising
Correct answer is option 'D'. Can you explain this answer?
Net Profit or Loss will be derived at _______ stage of accounting
a)
Classifying
b)
Interpretation
c)
Recording
d)
Summarising
|
|
Sonal Patel answered |
Summarising stage is concerned with the preparation and presentation of the classified data in a manner useful to the internal as well as external users of financial statements. This process leads to the preparation of the following financial statements. Therefore, Net Profit or Loss is derived at the summarising stage.
Which one of the following is not a fictitious asset?- a)Discount on issue of shares
- b)Loss on issue of debentures
- c)Goodwill
- d)Deferred revenue expenditure
Correct answer is option 'C'. Can you explain this answer?
Which one of the following is not a fictitious asset?
a)
Discount on issue of shares
b)
Loss on issue of debentures
c)
Goodwill
d)
Deferred revenue expenditure
|
|
Priya Patel answered |
Fictituous assets are not assets actually, they are expenses and losses shown on asset side of the Balance sheet. Fictitious means “Fake”.
Fictious assets are those assets which couldn’t be written off during the present accounting period.
Examples-
1.preliminary expense
2.promotional expense of a business.
3.discount allowed in issue of shares
4.loss incurred on issue of debentures.
Goodwill is not an expense explained below:
Goodwill is an intangible asset that arises when one company purchases another for a premium value. The value of a company’s brand name, solid customer base, good customer relations, good employee relations ,and any patents or proprietary technology represent goodwill.
Goodwill is considered an intangible asset because it is not a physical asset like buildings or equipment. The goodwill account can be found in the assets portion of a company's balance sheet.
Accounting is helpful in replacing the ______- a)Method
- b)Money
- c)Material
- d)Memory
Correct answer is option 'D'. Can you explain this answer?
Accounting is helpful in replacing the ______
a)
Method
b)
Money
c)
Material
d)
Memory
|
|
Karishma Karish answered |
As u said d is right option....all time we cant remeber how much we sell n made profit or loss.. as nowadays we ppls have weak memory power..accounts help us to store information as a record.
Which one of the following is not a current liability?- a)Short term loan
- b)Bill payables
- c)Debentures
- d)Creditors
Correct answer is option 'C'. Can you explain this answer?
Which one of the following is not a current liability?
a)
Short term loan
b)
Bill payables
c)
Debentures
d)
Creditors
|
|
Kavita Joshi answered |
A liability is a company's financial debt or obligations that arise during the course of its business operations. ... Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues and accrued expenses.
Long-term liabilities, in accounting, form part of a section of the balance sheet that lists liabilities not due within the next 12 months including debentures, loans, deferred tax liabilities and pension obligations.
Debtors and Bills Receivable are shown as _________- a)Trade Payables
- b)Cheques in hand
- c)Trade Receivables
- d)None of these
Correct answer is option 'C'. Can you explain this answer?
Debtors and Bills Receivable are shown as _________
a)
Trade Payables
b)
Cheques in hand
c)
Trade Receivables
d)
None of these
|
|
Arjun Singhania answered |
Trade receivables are amounts billed by a business to its customers when it delivers goods or services to them in the ordinary course of business. These billings are typically documented on formal invoices, which are summarized in an accounts receivable aging report. This report is commonly used by the collections staff to collect overdue payments from customers. In the general ledger, trade receivables are recorded in a separate accounts receivable account, and are classified as current assets on the balance sheet if you expect to receive payment from customers within one year.
Book-keeping is mainly concerned with - a)Recording of financial data.
- b)Designing the systems in recording, classifying and summarizing the recorded data.
- c)Interpreting the data for internal and external users.
- d)None of the above.
Correct answer is option 'A'. Can you explain this answer?
Book-keeping is mainly concerned with
a)
Recording of financial data.
b)
Designing the systems in recording, classifying and summarizing the recorded data.
c)
Interpreting the data for internal and external users.
d)
None of the above.
|
|
Kavita Joshi answered |
According to North Cott ,“Book-keeping is an art of recording in books of accounts the monetary aspect of commercial or financial transactions”. It is mainly concerned with record keeping or maintenance of books of accounts.
Interpreting Financial Statements means:- a)Methodical classification of the data given in the financial statements.
- b)Preparation and presentation of the classified data in a manner useful to the users of financial statements.
- c)Systematic analysis of the recorded data so as to put information in usable from.
- d)Explaining the meaning and significance of the relationship of analysis of accounting data.
Correct answer is 'D'. Can you explain this answer?
Interpreting Financial Statements means:
a)
Methodical classification of the data given in the financial statements.
b)
Preparation and presentation of the classified data in a manner useful to the users of financial statements.
c)
Systematic analysis of the recorded data so as to put information in usable from.
d)
Explaining the meaning and significance of the relationship of analysis of accounting data.
|
|
Alok Mehta answered |
Interpretation of financial statements are an attempt to determine the significance and meaning of the financial statement data so that a forecast may be made of the prospects for future earnings, ability to pay interest, debt maturities, both current as well as long term, and profitability of sound dividend policy.
Interpretation of financial statements involves many processes like arrangement, analysis, establishing relationship between available facts and drawing conclusions on that basis.
The person from whom goods are purchased on credit is known as ____- a)Creditor
- b)Debtor
- c)Investors
- d)Owner
Correct answer is option 'A'. Can you explain this answer?
The person from whom goods are purchased on credit is known as ____
a)
Creditor
b)
Debtor
c)
Investors
d)
Owner
|
|
Nipuns Institute answered |
The person from whom goods are purchased on credit is known as a creditor. A creditor is an entity (person or institution) that allows another party to borrow money or goods on the agreement that it will be paid back later. In business accounting, creditors represent the parties from which a business has purchased goods on credit and to whom the business owes money.
______users are the groups outside the business entity who uses the information to make decisions about the business entity- a)Internal
- b)External
- c)Both
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
______users are the groups outside the business entity who uses the information to make decisions about the business entity
a)
Internal
b)
External
c)
Both
d)
None of these
|
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Arun Khanna answered |
Examples of internal users are owners, managers, and employees. External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.
Financial statements do not consider- a)Assets expressed in monetary terms.
- b)Liabilities expressed in monetary terms.
- c)Only assets expressed in non-monetary terms.
- d)Assets and liabilities expressed in non-monetary terms
Correct answer is option 'D'. Can you explain this answer?
Financial statements do not consider
a)
Assets expressed in monetary terms.
b)
Liabilities expressed in monetary terms.
c)
Only assets expressed in non-monetary terms.
d)
Assets and liabilities expressed in non-monetary terms
|
|
Pallabi Khanna answered |
Nonmonetary items are those assets and liabilities appearing on the balance sheet that are not cash, or cannot be readily converted into cash. ... Nonmonetary liabilities include those obligations that are not payable in cash, or items that will adjust an expense.
Following information is related to Trade discount except- a)Offered at an agreed percentage
- b)Not recorded in the books
- c)encourage the debtors to pay the dues promptly
- d)Persuade the buyer to buy more goods
Correct answer is option 'C'. Can you explain this answer?
Following information is related to Trade discount except
a)
Offered at an agreed percentage
b)
Not recorded in the books
c)
encourage the debtors to pay the dues promptly
d)
Persuade the buyer to buy more goods
|
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Jayant Mishra answered |
A trade discount is a reduction to the published price of a product. For example, a high-volume wholesaler might be entitled to a 40% trade discount, while a medium-volume wholesaler is given a 30% trade discount. ... Trade discounts are different from early-payment discounts. A trade discount is the amount by which a manufacturer reduces the retail price of a product when it sells to a reseller, rather than to the end customer. The reseller then charges the full retail price to its customers in order to earn a profit on the difference between the amount by which the manufacturer sold the product to it and the price at which it then sells the product to the final customer. The reseller does not necessarily resell at the suggested retail price; selling at a discount is a common practice, if the reseller wishes to gain market share or clear out excess inventory.
Financial Statements are a part of : - a)Accounting
- b)Book- Keeping
- c)Both
- d)None
Correct answer is option 'A'. Can you explain this answer?
Financial Statements are a part of :
a)
Accounting
b)
Book- Keeping
c)
Both
d)
None
|
Freedom Institute answered |
Financial statement is a formal record of the financial activities and position of a business, person or other entity. Financial statement are major part of accounting as accounting is incomplete without financial statements.
Management Accounting:
- a)Is a clerical work
- b)Is accounting for future
- c)Is a recording technique of the management related transactions
- d)Is an analysis of the past business activities
Correct answer is option 'C'. Can you explain this answer?
Management Accounting:
a)
Is a clerical work
b)
Is accounting for future
c)
Is a recording technique of the management related transactions
d)
Is an analysis of the past business activities
|
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Jayant Mishra answered |
Hence, the correct option is c) is a recording technique of management related transaction. Other options, such as b) is accounting for the future is not correct as management accounting is being used today to analyze the cost in a business.
Which of the following is not a subfield of accounting?- a)Management accounting.
- b)Cost accounting.
- c)Financial Accounting.
- d)Book-keeping
Correct answer is option 'D'. Can you explain this answer?
Which of the following is not a subfield of accounting?
a)
Management accounting.
b)
Cost accounting.
c)
Financial Accounting.
d)
Book-keeping
|
|
Arjun Singhania answered |
Book Keeping is the Recording Branch of Accountancy. Accountancy includes Book Keeping and classifying,interpreting and summarizing of the business transactions.
A liability is a current liability if it satisfies- a)It is expected to be settled in the company’s normal operating cycle
- b)It is held primarily for the purpose of being traded
- c)It is due to settled within 12 months after reporting date
- d)All of these
Correct answer is option 'D'. Can you explain this answer?
A liability is a current liability if it satisfies
a)
It is expected to be settled in the company’s normal operating cycle
b)
It is held primarily for the purpose of being traded
c)
It is due to settled within 12 months after reporting date
d)
All of these
|
|
Arjun Singhania answered |
Liabilities are to be classified as current if any one of four specified conditions is met. The conditions are:
a) It expects to settle the liability in its current operating cycle
b) It holds the liability primarily for trading
c) The liability is due to be settled within 12 months
d) It does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.
All other liabilities are to be classified as non-current.
Net Profit or Loss will be derived at _______ stage of accounting- a)Classifying
- b)Interpretation
- c)Recording
- d)Summarising
Correct answer is option 'D'. Can you explain this answer?
Net Profit or Loss will be derived at _______ stage of accounting
a)
Classifying
b)
Interpretation
c)
Recording
d)
Summarising
|
|
Jayant Mishra answered |
Summarising stage is concerned with the preparation and presentation of the classified data in a manner useful to the internal as well as external users of financial statements. This process leads to the preparation of the following financial statements. Therefore, Net Profit or Loss is derived at the summarising stage.
The direct advantage of accounting do not include: - a)Preparation of financial statements
- b)Competitive advantage
- c)Ascertainment of profit or loss
- d)Information to interested groups
Correct answer is 'B'. Can you explain this answer?
The direct advantage of accounting do not include:
a)
Preparation of financial statements
b)
Competitive advantage
c)
Ascertainment of profit or loss
d)
Information to interested groups
|
|
Arun Khanna answered |
Accounting is defined as the art of recording, classifying, summarizing, analyzing, interpretation and communicating the results of transactions and events which are of financial character. Hence, it includes preparation of final accounts, ascertainment of profit or loss and its communication to users, but it does not includes any kind of competitive advantage.
The time between the acquisition of an asset for processing and its conversion into cash and cash equivalent is called- a)Operating cycle
- b)Production cycle
- c)Time gap
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
The time between the acquisition of an asset for processing and its conversion into cash and cash equivalent is called
a)
Operating cycle
b)
Production cycle
c)
Time gap
d)
None of these
|
Rajat Patel answered |
The operating cycle is also known as the cash conversion cycle. In the context of a manufacturer the operating cycle has been described as the amount of time that it takes for a manufacturer's cash to be converted into products plus the time it takes for those products to be sold and turned back into cash. In other words, the manufacturer's operating cycle involves:
- paying for the raw materials needed in its products
- paying for the labor and overhead costs needed to convert the raw materials into products
- holding the finished products in inventory until they are sold
- waiting for the customers' cash payments for the products that have been sold
Chapter doubts & questions for Accounting Principles and Policies - Accounting for Grade 9 2025 is part of Grade 9 exam preparation. The chapters have been prepared according to the Grade 9 exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for Grade 9 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
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Accounting for Grade 9
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