TN STATEBOARD 11th ACCOUNTANCY UNIT 2

TEST

CONCEPTUAL FRAMEWORK OF ACCOUTNING UNIT TEST

 

TEST –2

PADVIKSHA BLOG

 

TIME: 1 HOUR 15 Minutes

 

TOTAL MARKS: 25

 

 

         

I Multiple Choice Questions (MCQ) (Mark- 5 x 1 = 5)

Write all questions

1. GAAPs are:

(a) Generally Accepted Accounting Policies

(b) Generally Accepted Accounting Principles

(c) Generally Accepted Accounting Provisions

(d) None of these

         

2. The word convention refers ………………

a. Traditions

b. Concept

c. Matching

d. None of the above

 

3. Which of the following is the objective of Accounting:

 

a. It is the process of recording transactions in the books of accounts.

 

b. Monetary transactions only are recorded in the accounts.

 

C. Book-keeping is the primary stage in the accounting process.

 

d. To know the progress of the business.

 

 

4. In India, Accounting Standards are issued by

(a) Reserve Bank of India

(b) The Cost and Management Accountants of India

(c) Supreme Court of India

(d) The Institute of Chartered Accountants of India

 

5. ASB was constituted in India in the year of ………………

a. 1997

b. 1977

c. 1976

d. 1967

 

II very short answer question. (3x2=6)

 

Write Any 3 Questions:

1. What is dual aspect concept?

2. What is “Full Disclosure Principle” of accounting?

3. Write any two needs for accounting standards.

4. Write a note on:

1. Matching

2. Realisation

5. Write any two limitations of book-keeping.

 

III Short answer questions. (3 X 3 = 9)

 

WRITE ANY 3 QUESTIONS

1. Explain the Relationship among Book-keeping, Accounting and Accountancy.

 

2. “Business units last indefinitely”. Mention and explain the concept on which the statement is based.

 

3. State the features of Book-keeping. Any 3

 

4. “Revenue is recognised when it is earned and expenses are recognised when they are incurred.” Justify this statement.”

 

5. What is matching concept? Why should a business concern follow this concept?

 

IV. Long Answer question (1 x 5 = 5)

 

WRITE ANY ONE QUESTION

1. Differentiate between book-keeping and accounting.

2. Magesh started a new trading business. He buys and sells packing materials.

He wants to be honest in doing his business. He has plans to establish his business in the future. He has little accounting knowledge but has excellent business skills. At the end of his first year of trading, he wanted to value his closing stock.

He finds some of the goods are damaged. If he wants to sell them, then he has to spend some amount for making them in a saleable condition. He also takes some money from his business bank account for his personal use. But, he forgot to record that.

Now, discuss on the following points

• Does every businessman need accounting knowledge?

• Identify some of the accounting concepts in this case study.

• How should his closing stock be valued?

• Is it possible for him to compare his business results with that of his competitors?

 

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