Accounting For Managers

31. The convention of disclosure implies that all material information should be

1. Disclosed in the account
2. Disclosed in the accounts which is required to owner
3. Not disclosed
4. None of these

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32. Outstanding salary is shown as:

1. An asset in the balance sheet
2. A liability
3. By adjusting it in the P & L a/c
4. Both a and c above
5. Both b and c above

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33. Proprietor (owner) is treated as creditor of business due to:

1. Periodicity concept
2. Materiality Principle
3. Entity Concept
4. Consistency concept

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34. Which of the following is correct

1. Profit does not alter capital
2. Capital can only come from profit
3. Profit reduces capital
4. Profit increases capital

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35. Interest , rent, electricity bill are types of account

1. Personal a/c
2. Impersonal a/c
3. Real a/c
4. Nominal a/c

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36. Cost of asset should always be equal to the cost of the liabilities. This concept is

1. Double Entry Bookkeeping
2. Matching Concept
3. Consistency
4. Money measurement Concept

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37. P& l a/c is prepared for a period of one year by following:

1. Consistency concept
2. Conservatism concept
3. Accounting period concept
4. Cost Concept

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38. Prepaid expense is treated as

1. Current asset
2. Current liability
3. Short term liability
4. None of these

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39. Which of the following is a liability?

1. Loan from Mr.Y
2. loan to Mr.y
3. Both (a) (b)
4. None of these

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40. Advantages of cost accounting accrue:

1. Only to workers
2. Only to government
3. Only to consumers
4. To management, workers, consumers and government

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