Free Accounting from Incomplete Records 01 Practice Test - 11th Grade - Commerce
Question 1
Which of the following businesses usually maintain incomplete accounting records of the business activities?
Large Businesses
Companies
Big Partnership Firms
Small Businesses
SOLUTION
Solution : D
Small businesses usually maintain incomplete accounting records of the business activities.
Question 2
Balance of opening creditors = Rs 60,000 , Balance of closing creditors = Rs 80,000 , Payments made during the year = Rs 1,40,000. What is the amount of credit purchases during the year?
Rs 1,20,000
Rs 1,60,000
Rs 2,00,000
None of the above
SOLUTION
Solution : B
Credit purchases= Closing creditors + Payments - Opening creditors = Rs 1,60,000.
Question 3
Credit sales can be obtained by preparing:
Cash book
Statement of affairs
Debtors account
Creditors account
SOLUTION
Solution : C
Credit sales can be obtained by preparing debtors account.
Question 4
Opening inventory + Net purchases =
Closing stock
Cost of goods sold
Sales
Cost of goods available for sale
SOLUTION
Solution : D
Opening inventory + Net purchases = Cost of goods available for sale.
Question 5
Total opening balances of assets and liabilities are Rs 10,000 and Rs 5,000 respectively. Find out the opening capital of the business?
Rs 10,000
Rs 5,000
Rs 15,000
None of these
SOLUTION
Solution : B
Opening capital = Total assets - Liabilities
= Rs 10,000 - Rs 5,000
= Rs 5,000.
Question 6
Which of the following is not a feature of the incomplete system?
The profit or loss for the year cannot be ascertained with a high degree of accuracy
The balance sheet reflects the complete and true position
Personal transactions of owners may also be recorded in the cash book
None of the above
SOLUTION
Solution : B
The balance sheet does not reflect the complete and true position.
Question 7
Incomplete records system is
Complete
Systematic
Unsystematic
All of the above
SOLUTION
Solution : C
Incomplete records system is an unsystematic system of maintaining records.
Question 8
Analysis of profitability, liquidity and solvency of the business can be done under incomplete records system.
True
False
SOLUTION
Solution : B
Analysis of profitability, liquidity and solvency of the business cannot be done.
Question 9
Which of the following are part of trading account?
Closing stock
Gross profit
Net profit
Both A & B
SOLUTION
Solution : D
Closing stock and Gross profit are part of the trading account.
Question 10
Opening balance of cash account Rs 1,00,000. Expenditure paid Rs 30,000. Amount received from debtors Rs 80,000. What is the closing cash balance.
Rs 1,30,000
Rs 1,10,000
Rs 1,50,000
Rs 80,000
SOLUTION
Solution : C
Closing balance = Opening balance + Receipts - Payments
= 1,00,000+80,000-30,000
= Rs 1,50,000.