2022 Imp
58. A person to whom the business owes money is called (1)
(a) Debtor (b) Creditor (c) Manager (d) Partner
Ans. (b) Creditor
57. Decrease in the value of intangible asset is known as (1)
(a) Depletion (b) Fluctuation (c) Appreciation (d) Amortization
Ans. (d) Amortization
Ans. (d) Amortization
56. State the qualitative characteristics of accounting information. (2)
Ans. 1) Reliability 2) Relevance 3) Understandability 4) Comparability
2022 June
55. Costs incurred by a business in the process of earning revenue are called as (1)
(a) Capital Expenditure b) Expenses (c) Capital (d)Assets
Ans. b) Expenses
54. Fill the blank as per the hint given: (2)
Hint Investment by the owner in the firm - Capital
(a) Assets held for a short period of time - ---------
(b) ---------------------- - Debtor
Ans. a) Current Asset
b) who owes money to a business
53. Describe any three objectives of Accounting. (3)
Ans.
1) To maintain records of business
2) Calculation of profit and loss
3) Ascertain the financial position of the business.
4) Providing information to users
2021 IMP
52. Which among the following is an intangible asset ? (1)
(a) Goodwill (b) Building (c) Cash (d) Stock of goods
Ans. (a) Goodwill
51 Fill in the blanks as shown in example.
Example : The person who owes money to the business – Debtor
(a) The person to whom the business owes Money ………..….. ? .
(b) Money invested by businessman into the business ……….. ? . (2)
Ans. a. Creditor.
b. Capital.
50. Classify the following users of accounting information into internal and external users :
(a) Chief Executive Officer (b) Customers (c) Finance Officer
(d) Plant Manager (e) Labour Unions (f) Banks (3)
Ans. Internal Users : (a). Chief Executive Officer,(c). Finance Officer,(d) Plant Manager.
External Users : (b) Customers , (e) Labour Unions, (f) Banks.
49. Name the following :
(a) Withdrawal of money by the owner from the business for personal use.
(b) The amount of goods lying unsold at the end of an accounting period.
(c) Excess of income over expenditure of a business organization.
(d) The documentary evidence in support of a transaction. (4)
Ans. a. Drawings. b. Closing stock. c. Profit. d. Source Documents
2021 March
48. Cash or other assets invested by the owner in the business is .
(a) Fixed Asset (b) Capital (c) Current Asset (d) None of these (1)
Ans. (b) Capital
47. Match the following : (2)
(a) A person who owes money to an enterprise (i) Profit
(b) Withdrawal of money or goods by the owner from the business (ii) Assets
(c) Excess of revenue over expenses (iii) Drawings
(d) Economic resources of an enterprise (iv) Debtor
Ans.
(a) A person who owes money to an enterprise : (i) Debtor
(b) Withdrawal of money or goods by the owner from the business : (ii) Drawings
(c) Excess of revenue over expenses : (iii) Profit
(d) Economic resources of an enterprise : (iv) Assets
46. Complete the series from the items given in the brackets. (2)
I. Revenue Expenditure ……………
II. Capital Expenditure ……………
III. Revenue Receipts ……………
IV. Capital Receipts ……………
(Bank Loan, Machinery, Salary, Rent received)
Ans.
I. Revenue Expenditure – Salary
II. Capital Expenditure – Machinery
III. Revenue Receipts – Rent Received
IV. Capital Receipts – Bank Loan
45. Briefly explain about any 3 qualitative characteristics of accounting. (3)
Ans. a) Reliability – Accounting information is considered to be reliable if it is free from bias and faithfully represents the facts.
b) Relevance – The information to be relevant, it must be available in time.
c) Understandability- It must be understood by those to whom it is communicated.
d. Comparability – It means that the accounting reports should be comparable with other firms to identify similarities or differences.
44. Accounting has certain objectives to business. Explain. (4)
Ans. 1) To maintain records of business
2) Calculation of profit and loss
3) Ascertain the financial position of the business.
4) Providing information to users
2020 IMP
43. Choose an internal user from the given users of accounting information (1)
a. Creditors, b. Bank, c. Managers, d. Government
Ans. C. Managers
42. Explain any three branches of accounting (3)
Ans. 1.Financial accounting is to ascertain financial results from Trading, P/L account, and Balance sheet., 2. Cost accounting is to ascertain the cost of production, and 3. Management accounting is for decision making
2020 March
41. The person who owes money to the business is known as
(a) Debtor (b) Creditor (c) Partner (d) None of these (1)
Ans. (a) Debtor
40. What are the objectives of accounting ? (any three) (3)
Ans. 1) To maintain records of business
2) Calculation of profit and loss
3) Ascertain the financial position of the business.
4) Providing information to users
2019 Imp
39. Creative Traders provides accounting information to its users whenever it is required for. Specify the qualitative characteristics of accounting'
(a) UnderstandabilitY. (b) Relevance (c) Comparability (d) Reliability (1)
Ans. (b) Relevance or (d) Reliability
38. Suresh advanced 3 months‟ salary to an employee of his firm. This advance salary is
(a) Revenue expense (b) Capital expense (c) Current asset (d) Current liability (1)
Ans. (c) Current asset
37. Give examples for each of the following terms
i. Revenue ii. Gain iii. Short-term liability iv. Fixed assets
Ans. 1. Sales, commission, interest, rent etc.
2. Profit on sale of fixed asset, winning a court case, appreciation of value of asset
3. Creditors, bills payable, outstanding expenses etc.
4- Land, Building , Plant etc.
2019 March
36. Pick the WRONG pair
a) Land , building b) Cash ,Stock c) Debtors, Machinery d) Copyright, Patent (1)
Ans. C. Debtors, Machinery
35. "Accounting is a post mortem survey". Do you agree? Justify your answer. (2)
Ans. Yes. Accounting is basically financial post mortem analysis of past events.
2018 March
34. Notebooks purchased by a stationery shop comes under
a) Assets b) Income c) Purchases d) Liabilities (1)
Ans. C. Purchase
33. In a business organization, goods are known in different names' Write the names used for the goods in the following cases. (3)
a) Goods remaining unused at the end of the year.
b) Goods returned by the buyer due to breakage in transit.
c) Goods sold for cash and credit.
Ans. a) Closing stock b) sales return/ return inward c) sales
2018 Imp
32. Which one of the following events is NOT a business transaction?
a. Furniture purchased for cash.
b. Goods are ordered for next month.
c. 10 % of debtors are treated as bad.
d. Salary outstanding to the employee. (1)
Ans. B, Goods are ordered for next month.
31. Classify the following items as Revenue, Expense, Gain and Profit. (2)
i. Profit on sale of investment
ii. Interest received
iii. Goods sold at above cost.
iv. Depreciation
Ans. I) Gain II) Revenue III) Profit IV) Expense
2017 March
30. Classify the following assets under appropriate heads.
a) Cash b) Machinery c) Land d) Stock (1)
Ans. Fixed Asset- Machinery, land Current Asset- Cash, Stock
29. Vinod took a loan of 1, 00,000 from Canara Bank. Identify the debtor in the above transaction. (1)
Ans. Vinod
2017 Imp
28. Which one of the following is NOT a fixed asset?
i. Goodwill b) Stock of goods c) Furniture d) Land (1)
Ans. Stock of goods
27. Briefly explain any two objectives of accounting. (any two) (2)
Ans. 1) To maintain records of business
2) Calculation of profit and loss
3) Ascertain the financial position of the business.
4) Providing information to users
26 On 1st April, 2016 Thomas purchased goods from Arun for Rs. 6,000 on credit.
Identify the debtor and creditor in this transaction (1)
Ans. Debtor- Thomas, Creditor- Arum
2016 Imp
25. Which one of the following is not a business transaction?
a. Bought motorcar for business ₹ 100000
b. Paid employee's salary ₹ 1000
c. Paid son's fees from business ₹2000
d. Paid son's fees from his personal account ₹ 2000. (1)
Ans. Paid son's fees from his personal account ₹ 2000.
2015 March
24. The creditors and bankers need qualitative accounting information for taking appropriate decisions. What qualitative features do they expect in accounting information? (2)
Ans. 1) Reliability 2) Relevance 3) Understandability 4) Comparability
2015 Imp
23. Pick out the wrong Pair. State the reason. (2)
- Patent, Copyright
- Stock, Debtors
- Salary, Rent
- Cash, Furniture
2014 March
22. Under which one of the following can the asset of 'Debtors' be well placed?
a) Real assets b) Fixed assets c) Current assets d) Human asset (1)
Ans. Current assets
21. In how many ways are assets classified? Mention these ways. (2)
Ans. Fixed asset, Tangible asset, Intangible asset, Wasting asset, Fictitious asset, Current asset
2014 Imp
20. Mr. Cino is a furniture dealer at Perumbavoor. Hiss closing stock of furniture is Rs. 300000 it is considered as a/an …………………..asset.
a. Fixed b) Current c)Intangible d)None of these (1)
Ans. Current
19. Goods in business are called by different names. Give their names in the following two cases:
i. Value of goods remaining at the end of a period
ii. Return of goods from customers, which are defective (2)
Ans. A) closing stock, b) Sales Return
2013 March
18. Complete the series based on the hint given: Hint: Intangible asset – Goodwill
i. Fictitious asset - ….....................
ii. Liquid asset - …..................... (1)
Ans. Fictitious asset - Preliminary expenses, underwriting commission etc.
Liquid asset - cash / bank etc.
17. Name any two internal users of accounting information of your choice. (1)
Ans. Managers, Owners, employees, etc.
2013 Imp
16. Choose the correct sequence
a. Identifying, Recording, Classifying, Summarising
b. Identifying, Recording, Summarising, Classifying
c. Recording, Summarising, Classifying, Identifying
d. Identifying, Classifying, Recording, Summarising (1)
Ans. Identifying, Recording, Classifying, Summarising
15. Is the cost incurred for the use of things or services for the purpose of generating revenue.
a) Capital b) Expense c) Income d) Liabilities (1)
Ans. B) Expense
2012 March
14. Fund based accounting is used by …………………………
a) Multinational companies b) Trading organization
c) Government organization d) manufacturing organization (1)
Ans. Government organization
13. Fathima took an educational loan of Rs. 10,000 from SBI, Calicut the relationship which exists between SBI and Fathima is ……………
a. Fathima is the debtor of SBI, Calicut
b. SBI, Calicut is the debtor of Fathima
c. Fathima is the creditor of SBI, Calicut
d. Fathima is the proprietor of SBI, Calicut (1)
Ans. Fathima is the debtor of SBI, Calicut
12. A student of XI commerce, after going through the topic “Capital expenditure and Revenue expenditure” has classified certain expenditure as given below. Do you agree with the above classification? If not, correct it. (2)
Capital expenditure
Machinery purchased
Depreciation on machinery
Goods purchase
Revenue expenditure
Sale of land
Installation charge on machinery
Rent paid
Ans.
Capital expenditure : Machinery purchased, Installation charge on machinery
Revenue expenditure : Rent paid, Depreciation on machinery, Goods purchase
2012 Imp.
11. Find odd one out a) Manager b) Bank c) Government (1)
Ans. a) Manager
10. Identify the debit and credit aspects of the following transactions. “Goods taken by the owner for his personal use”. (1)
Ans. Debit : Drawings, Credit : Purchase
9. Ram Ltd. gives the following items. As a commerce student classify them into Revenue expense, capital expenditure and deferred expenditure (2)
1. Computer purchased
2. Salary paid
3. Huge advertisement expense
4. Goods purchased
Ans.
I) Computer purchased - Capital Expenditure
ii) Salary paid - Revenue Expenditure
iii) Huge advertisement expense - Deferred Revenue Expenditure
iv) Goods purchased - Revenue Expenditure
2011 March
8. What represent the amount invested by the owner into the business? (1)
a) Asset b) Revenue c) Capital
Ans. c) Capital
7. If Mr. Kumar purchased from our business for Rs. 10,000. He is our creditor. True or False (1)
Ans. False
2010 March
6. Identify the events not amenable to accounting treatment
a) Sale of goods b) Salary paid c) Directors are appointed d) Rent paid (1)
Ans. Directors are appointed
5. Find out the odd one out
a) Machinery b) Land and building c) Closing stock d) Furniture (1)
Ans. Closing stock
4. “The primary objective of accounting is to provide information to facilitate business decisions”. Mention any four objectives of accounting. (4)
Ans.
1. To maintain records of business
2. Calculation of profit and loss
3. Ascertain the financial position of the business.
4. Providing information to users
2009 March
3. Discount allowed to customer is a………………..to the business
a) Expense b) Income c) Creditor d) Capital (1)
Ans. Expense
2. Write a short note on : a) Capital b) Liability (2)
Ans.
A) Capital refers to the money or money’s worth introduced or invested by the owners into business. Capital is the owners claim against the business and is called owner’s equity.
B) Liabilities are obligations or debts that an enterprise has to pay at some time in the future.
1. “Accounting gives number of advantages to the business”.
What are the important advantages of accounting? (4)
What are the important advantages of accounting? (4)
Ans.
1. Provide quantitative information
2. Helps in ascertaining the financial position of the business
3. Systematic recording of data is possible
4. Act as an information system
5. Beneficial to different users.
