1st Year Principles of Accounting Chapter 1 TestIntroduction

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. Modern accounting is based on:

   1. Matching concept

   2. Dual aspect concept

   3. Cost concept

   4. Going concern concept

2. A type of business in which a merchant purchases goods and sells it in the same position is called:

   1. Trading concern

   2. Service concern

   3. Manufacturing concern

   4. None of these

3. Net income is equal to:

   1. Assets-Liabilities

   2. Revenues+Expense

   3. Revenue-Income

   4. Revenues-Expenses

4. According to this concept, business and owner both have separate identity:

   1. Going concern concept

   2. Business entity concept

   3. Cost concept

   4. Realization concept

5. How many branches of accounting are:

   1. Two

   2. Three

   3. Four

   4. One

6. According to this concept, it is assumed that business will exit for an indefinite time period:

   1. Realization Concept

   2. Going concern concept

   3. Business entity concept

   4. None of these

7. The system of recording transactions having two fundamental aspects is known as:

   1. Single entry system

   2. Modern System

   3. Double entry system

   4. None of these

8. A form of remuneration for services rendered by one person to another:

   1. Discount allowed

   2. Discount received

   3. Commission

   4. Expenditure

9. A person to whom the goods or services are sold on credit basis is known as:

   1. Creditor

   2. Proprietor

   3. Debtor

   4. Investor

10. All those things which are purchased for resale purpose are called:

    1. Goods

    2. Assets

    3. Liabilities

    4. Sale