MB0025-Model_paper_2

MB0025-Model_paper_2 - MB0025 Model Question Paper 2...

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MB0025 Model Question Paper 2 Financial and Management Accounting 1 Mark 1. What is the relationship between book keeping and accounting? a. Both are concerned with recording economic data b. Accounting stops, book keeping starts c. Book keeping is concerned with recording transactions while accounting is measuring, analyzing and communicating the financial data d. They are synonymous. 2. Identify financial transaction in the following list a. Formulating a bonus policy b. Discussion on discontinuation of production of a product c. Receiving royalty for the minerals extracted d. A wordy warfare between employees and management about wages. 3. The object of financial Accounting is not a. To prepare future financial plans b. To prepare and communicate final accounts c. To record all transactions and interpret the financial data d. To take into consideration the historical data 4. What is a credit transaction? a. Transaction to transfer goods from one to another b. Transaction with a promise to pay for the goods at a future date c. Transaction, where customers has already paid the price and the goods are due to be sent d. Transaction where goods are promised to be transferred and the price promised to be paid. 5. What do you mean by a concept? a. Reasonable assumption b. A willful prediction c. Universal characteristic d. A regulated condition 6. A convention is different from a concept because a. Convention represents meaningless customs b. Convention is a presumption c. Convention is subjective and convenient principle d. Convention is a time tested principle 7. A manufacturing Company has produced 50000 units of a product during 2006. What accounting concept is missing in the above statement? a. Separate business unit
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b. Accrual concept c. Going concern concept d. Money measurement concept 8. A manufacturing Company has produced 50000 units of a product costing Rs.2,50,000. What accounting concept is missing in the above statement? a. Separate business unit b. Accrual concept c. Periodicity concept d. Money measurement concept 9. The principle of ‘full disclosure’ means a. Giving all business information to all parties b. Giving all business information to a few parties c. Giving part of business information to all parties d. Giving relevant business information to relevant parties 10. Capital is invested in the business. How does it impact the accounting equation? a. Capital of the business increases b. Cash is received into the business as asset c. Cash increases the liability and capital increases asset of the business d. Capital appears as a liability and cash appears as asset of the business 11. What is 'Accounting Trail'? a. Process of preparing all accounts b. Process of commencing from recording to preparation of final accounts c. Process of preparing a trial balance d. Process of finding out P & L Account 12. What is the purpose of preparing a voucher? a. To safeguard all cash disbursements
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MB0025-Model_paper_2 - MB0025 Model Question Paper 2...

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