GENERAL ACCOUNTING PRINCIPLES (GENERAL STUDIES) Part-2

Total Questions: 30

21. Joint venture is a ________ Account.

  1. (a) Personal
  2. (b) Real
  3. (c) Nominal
  4. (d) Capital
Correct Answer: (c) Nominal
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22. When unsold stock is taken away by a co-venturer, then ______account is debited:

  1. (a) Joint Stock
  2. (b) Joint Venture
  3. (c) Joint Bank Account
  4. (d) Co-venturers capital account
Correct Answer: (d) Co-venturers capital account
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23. Following are the characteristics of joint venture except:

  1. (a) No common firm name
  2. (b) Contribution of funds
  3. (c) Sharing of Profits/losses
  4. (d) None of these
Correct Answer: (d) None of these
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24. Joint Venture Accounting follows which concept:

  1. (a) Accrual Concept
  2. (b) Going Concern Concept
  3. (c) Cost Concept
  4. (d) Cash Basis
Correct Answer: (d) Cash Basis
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25. When co-ventures initially contribute for a joint venture which account should be debited in case when separate set of books are maintained:

  1. (a) Purchases A/c
  2. (b) Joint ventures A/c
  3. (c) Ventures Capital A/c
  4. (d) Joint bank A/c
Correct Answer: (d) Joint bank A/c
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26. Separate set of books is maintained and discount is received at the time of purchase of goods then such a discount will be treated as :

  1. (a) Income of joint Venture hence credited venture account
  2. (b) Expense of Joint Venture hence debited to joint venture account
  3. (c) Will not be recorded in books of account
  4. (d) Credited to co venturers account
Correct Answer: (a) Income of joint Venture hence credited venture account
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27. X spending a sum of Rs. 10000 on account of joint venture, will be credited to _____ account in case of the records being maintained in the books of X.:

  1. (a) Memorandum J.V.
  2. (b) Joint Venture
  3. (c) Co-Venturers
  4. (d) Cash
Correct Answer: (d) Cash
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28. Discount for quick repayment of debt is normally referred to as

  1. (a) Trade discount
  2. (b) Prompt payment discount
  3. (c) Cash discount
  4. (d) Bulk discount
Correct Answer: (c) Cash discount
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29. An Account record the ______in the balance of an item

  1. (a) Increase
  2. (b) Decrease
  3. (c) Increase or decrease
  4. (d) Appreciation
Correct Answer: (c) Increase or decrease
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30. ____will be credited if goods are given as charity

  1. (a) Cash
  2. (b) Charity
  3. (c) Purchases
  4. (d) Sales
Correct Answer: (c) Purchases
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