Prepared by Jaison James HSST (Jr) SMHSS Koodathai
Ch:1 : Introduction to Accounting
2022 Improvement Examination
1 – A person to whom the business owes money is called (1)
(a) Debtor (b) Creditor (c) Manager (d) Partner
2 – Decrease in the value of intangible asset is known as
(a) Depletion (b) Fluctuation (c) Appreciation (d) Amortization
3 – State the qualitative characteristics of accounting information. (2)
4 – Costs incurred by a business in the process of earning revenue are called as (1)
(a) Capital Expenditure b) Expenses (c) Capital (d) Assets
5 – Fill the blank as per the hint given: (2)
Investment by the owner in the firm – Capital
(a) Assets held for a short period of time – ———
(b)——————————————————– – Debtor
6 – Describe any three objectives of Accounting. (3)
7 – Which among the following is an intangible asset ?
(a) Goodwill (b) Building (c) Cash (d) Stock of goods (1)
8 – 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)
9 – 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)
10 – 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)
11 – Cash or other assets invested by the owner in the business is ______.
Fixed Asset (b) Capital (c) Current Asset (d) None of these (1)
12 – Match the following : (2)
(a) A person who owes money to an enterprise
(b) Withdrawal of money or goods by the owner from the business
(c) Excess of revenue over expenses
(d) Economic resources of an enterprise
13 – Complete the series from the items given in the brackets.
I. Revenue Expenditure …………… II. Capital Expenditure …………… III. Revenue Receipts ……………
IV. Capital Receipts ……………
(Bank Loan, Machinery, Salary, Rent received) (2)
14 – Briefly explain about any 3 qualitative characteristics of accounting. (3)
15 – Accounting has certain objectives to business. Explain. (4)
16 – Choose an internal user from the given users of accounting information (1)
- Creditors, b. Bank, c. Managers, d. Government
17 – Explain any three branches of accounting (3)
18 – The person who owes money to the business is known as _____.
(a) Debtor (b) Creditor (c) Partner (d) None of these (1)
19 – What are the objectives of accounting ? (any three) (3)
20 – 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)
21 – 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)
22 – Give examples for each of the following terms
- Revenue ii. Gain iii. Short-term liability iv. Fixed assets
23 – Pick the WRONG pair
- Land , building b) Cash ,Stock c) Debtors, Machinery d) Copyright, Patent (1)
24 – ‘Accounting is a post mortem survey’. Do you agree? Justify your answer. (2)
25 – Notebooks purchased by a stationery shop comes under
a) Assets b) Income c) Purchases d) Liabilities
26 – In a business organization, goods are known in different names’ Write the names used for the goods in the following cases. (3)
- Goods remaining unused at the end of the year.
- Goods returned by the buyer due to breakage in transit.
- Goods sold for cash and credit.
27 – Which one of the following events is NOT a business transaction?
- Furniture purchased for cash.
- Goods are ordered for next month.
- 10 % of debtors are treated as bad.
- Salary outstanding to the employee. (1)
28 – Classify the following items as Revenue, Expense, Gain and Profit. (2)
- Profit on sale of investment
- Interest received
- Goods sold at above cost.
29 – 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
30 – Vinod took a loan of 1, 00,000 from Canara Bank. Identify the debtor in the above transaction. (1)
31 – Which one of the following is NOT a fixed asset?
- Goodwill b) Stock of goods c) Furniture d) Land (1)
32 – Briefly explain any two objectives of accounting. (2)
33 – On 1st April, 2016 Thomas purchased goods from Arun for Rs. 6,000 on credit. Identify the debtor and creditor in this transaction (1)
34 – Which one of the following is not a business transaction?
- Bought motorcar for business ₹ 100000
- Paid employee’s salary ₹ 1000
- Paid son’s fees from business ₹2000
- Paid son’s fees from his personal account ₹ 2000. (1)
35 – The creditors and bankers need qualitative accounting information for taking appropriate decisions. What qualitative features do they expect in accounting information? (2)
36 – Pick out the wrong Pair. State the reason.
- Patent, Copyright
- Stock, Debtors
- Salary, Rent
- Cash, Furniture (2)
37 – 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
38 – In how many ways are assets classified? Mention these ways. (2)
39 – Mr. Cino is a furniture dealer at Perumbavoor. Hiss closing stock of furniture is Rs. 300000 it is considered as a/an …………………..asset.
- Fixed b) Current c)Intangible d)None of these (1)
40 – Goods in business are called by different names. Give their names in the following two cases:
- Value of goods remaining at the end of a period
- Return of goods from customers, which are defective (2)
41 – Complete the series based on the hint given:
Hint: Intangible asset – Goodwill
- Fictitious asset – ……………………
- Liquid asset – …………………… (1)
42 – Name any two internal users of accounting information of your choice. (1)
43 – Choose the correct sequence
- Identifying, Recording, Classifying, Summarising
- Identifying, Recording, Summarising, Classifying
- Recording, Summarising, Classifying, Identifying
- Identifying, Classifying, Recording, Summarising (1)
44 – __________ 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)
45 – Fund based accounting is used by …………………………
a)Multinational companies b) Trading organization
c) Government organization d) manufacturing organization (1)
46 – Fathima took an educational loan of Rs. 10,000 from SBI, Calicut the relationship which exists between SBI and Fathima is ……………………
- Fathima is the debtor of SBI, Calicut
- SBI, Calicut is the debtor of Fathima
- Fathima is the creditor of SBI, Calicut
- Fathima is the proprietor of SBI, Calicut (1)
47 – A student of XI commerce, after going through the topic “Capital expenditure and Revenue expenditure” has classified certain expenditure as given below.
Sale of land
Do you agree with the above classification? If not, correct it. (2)
48 – Find odd one out
- Manager b) Bank c) Government (1)
49 – Identify the debit and credit aspects of the following transactions.
“Goods taken by the owner for his personal use”. (1)
50 – Ram Ltd. gives the following items. As a commerce student classify them into Revenue expense, capital expenditure and deferred expenditure
- Computer purchased
- Salary paid
- Huge advertisement expense
- Goods purchased (2)
51 – What represent the amount invested by the owner into the business?
- a) Asset b) Revenue c) Capital (1)
52 – If Mr. Kumar purchased from our business for Rs. 10,000. He is our creditor. True or False (1)
53 – Identify the events not amenable to accounting treatment
- Sale of goods b) Salary paid c) Directors are appointed d) Rent paid (1)
54 – Find out the odd one out
- Machinery b) Land and building c) Closing stock d) Furniture (1)
55 – “The primary objective of accounting is to provide information to facilitate business decisions”. Mention any four objectives of accounting.
56 – Discount allowed to customer is a………………..to the business
- Expense b) Income c) Creditor d) Capital (1)
57 – Write a short note on :
- Capital b) Liability (2 Score)
58 – “Accounting gives number of advantages to the business”. What are the important advantages of accounting? (4)