Basics of Accounting Bit Bank for APPSC | Panchayat Secretary | IBPS | SBI | SSC

Basics of Accounting

 1).  Festival advance to  employee is -------------. ?
Answer  ::   Prepaid expense

 2).  Cost incurred on dismantling a machine worn out part is ------------?.
Answer  ::   Revenue expense

 3).  Amount spent on repainting an  old building for first time on purchase is -------------.? 
Answer  ::   Capital expense

 4).  Amount spent on annual repainting of  building is -------------------?.
Answer  ::   Revenue expense

 5).  ---------------- Usually arises from  unplanned or unexpected event that given rise to the possibility of an  inflow of economic benefits to the business entity.? 
Answer  ::   Contingent assets

 6).  In the financial statement contingent  assets and liabilities are -----------?.  
Answer  ::   Not recognized

 7).  In the financial statement  provisions are ---------------. ?
Answer  ::   Recognized and adjusted

 8).  The trial balance checks the -------------- of the books of Account?.
Answer  ::   Arithmetical accuracy

 9).  The object of opining suspense  Account is  ------------------.? 
Answer  ::   To avoid the delay in preparation of financial statement

 10).  The inventory of finished goods is valued at cost or  NRV---------------?. 
Answer  ::   Which is lower

 11).  Damaged inventory is  valued at ----------------.? 
Answer  ::   Net realizable value

 12).  Under inflationary condition, FIFO method will  show ----------------?.  
Answer  ::   Highest value of closing stock

 13).  Under inflationary condition, LIFO method will show ------------------.?  
Answer  ::   Lower value of closing stock

 14).  Under inflationary condition, FIFO  method will show  ------------------?.
Answer  ::   Lowest value of cost of goods sold

 15).  Under inflationary condition, LIFO method will  show -----------------?.
Answer  ::   Highest value of cost of goods sold

 16).  Deprecation is related to ------?. 
Answer  ::   All tangible fixed assets (Except Land

 17).  Deprecation Accounting is ------------------.? 
Answer  ::   A process of allocation of the cost of fixed assets

 18).  Deprecation is a --------------.? 
Answer  ::   Non cash operating expense

 19).  For depreciating good will the  suitable method is --------.? 
Answer  ::   SLM

 20).  For depreciating mine the suitable method is ----------.? 
Answer  ::   Depletion