NCERT MCQ ON THEORY BASE OF ACCOUNTING:


Q1.During the lifetime of an entity accounting produce financial statements in accordance with which basic accounting concept:
(a) Conservation
(b) Matching
(c) Accounting period
(d) None of the aboveAnswer

Answer: (c) Accounting period


Q2.When information about two difference enterprises have been prepared presented in a similar manner the information exhibits the characteristic of:
(a) Verifiability
(b) Relevance
(c) Reliability
(d) None of the aboveAnswer

Answer: (d) None of the above


Q3.concept that a business enterprise will not be sold or liquidated in the near future is known as :
(a) Going concern
(b) Economic entity
(c) Monetary unit
(d) None of the aboveAnswer

Answer: (a) Going concern


Q4.The primary qualities that make accounting information useful for decision-making are
(a) Relevance and freedom from bias
(b) Reliability and comparability
(c) Comparability and consistency
(d) None of the aboveAnswer

Answer: (b) Reliability and comparability

Fill in the blank with correct word:
Q1.Recognition of expenses in the same period as associated revenues is called ………………. concept.

Answer: Matching


Q2.The accounting concept that refers to the tendency of accountants to resolve uncertainty and doubt in favour of understating assets and revenues and overstating liabilities and expenses is known as ………………….

Answer: Conservatism


Q3.Revenue is generally recognised at the point of sale denotes the concept of ………………….

Answer: Revenue Realisation


Q4.The ………………… concept requires that the same accounting method should be used from one accounting period to the next.

Answer: Consistency


Q5.The ……………….. concept requires that accounting transaction should be free from the bias of accountants and others.

Answer: Objectivity.

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