GK Questions Answers

GK Questions Answers

1. Accounting System used for the organizations not earning any profit is–
(A) Accrual System 

(B) Cash System
(C) Mercantile System 

(D) Non-profitary System 

(Ans: B)

2. When does an accountant record a transaction?
(A) If it is materialized by a concrete document 

(B) if it has a tax implication
(C) on Manager’s demand 

(D) None of these

 (Ans: A)

3. The accounts that records expenses, gains and losses are–
(A) Personal accounts 

(B) Real accounts
(C) Nominal accounts 

(D) None of the above 

(Ans: C)

4. Real accounts records–
(A) Dealings with creditors or debtors 

(B) Dealings in commodities
(C) Gains and losses 

(D) All of the above 

(Ans: B)

5. Systematic recording of business transactions in books of account is–
(A) Auditing 

(B) Book Keeping
(C) Financial Accounting 

(D) Balance Sheet 

(Ans: C)

6. Financial accounting looks for the interests of–
(A) Investors 

(B) Employees
(C) Suppliers 

(D) Both investers and suppliers 

(Ans: D)

7. Financial Accounting considers the transactions–
(A) in terms of money 

(B) important from business point of view
(C) not in terms of money 

(D) All of the above 

(Ans: D)

8. Recording of expenditures of the organization in a systematic manner–
(A) Financial Accounting

(B) Balance Sheet
(C) Cost Accounting 

(D) Book Keeping 

(Ans: C)

9. In financial accounting records the entities whose monitary value is not known are not entered. This concept is–
(A) Double Entry Book Keeping Method 

(B) Cost Concept
(C) Objectivity 

(D) Money Measurment Concept 

(Ans: D)

10. The Financial record should always be published in a definite time period according to–
(A) Accounting Period Concept

 (B) Cost Concept
(C) Money Measurment Concept 

(D) Consistency

 (Ans: A)

11. Accounting provides information on–
(A) Cost and income for managers 

(B) Company’s tax liability for a particular year
(C) Financial conditions of an institution 

(D) All of the above

(Ans: D)

12. Accounting Policies and Procedures onces decided should not be changed till any sound reason is there. This is know as–
(A) Accrual Concept 

(B) Conservatism
(C) Business Entity Concept 

(D) Consistency 

(Ans: D)

13. According to accounting equation assets are equal to?
(A) liabilities 

(B) liabilities and equities
(C) equities 

(D) none of these 

(Ans: B)

14. The accounting cycle represents a series of steps that a business uses–
(A) to record and classify the transactions 

(B) to summarize the transactions
(C) to communicate financial events 

(D) for all of these 

(Ans: D)

15. Current liabilities need to be paid–
(A) within one accounting cycle 

B) beyond one accounting cycle
(C) within 3 years

 (D) within 6 months

 (Ans: A)