SBI Clerk

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

About the author

Mallikarjuna

Mallikarjuna

Leave a Comment

error: Content is protected !!