Sponsored Links

Interview Questions
Recommended Books












INTERVIEW QUESTIONS COMMON PROFICIENCY TEST (CPT) FUNDAMENTALS OF ACCOUNTING DETAILS
Question :

" Holding gains in relation to stocks should not be used for payment of dividend." Which on of the following accounting principle is involved in this?
a) Consistency
b) Cost
c) Materiality
d) Realization

Category Fundamentals of Accounting Interview Questions
Rating (3.6) By 12 users
Added on 7/17/2016
Views 762
Rate it!

Highly Recommended, Hand Picked Fundamentals of Accounting Books



Question :

" Holding gains in relation to stocks should not be used for payment of dividend." Which on of the following accounting principle is involved in this?
a) Consistency
b) Cost
c) Materiality
d) Realization


Answer:

(d)
Description: " Dividends can only be paid out of the profits which have been realized in cash." The realization concept states that any change in value of an asset is to be recorded only when the business realizes it. The change is not o be counted unless there is certainty that such change will materialize. Therefore, holding gains in relation to stocks should not be used for payment of dividends because these have not been realized in cash.
Source: CoolInterview.com




If you have the better answer, then send it to us. We will display your answer after the approval.
Rules to Post Answers in CoolInterview.com:-
  • There should not be any Spelling Mistakes.
  • There should not be any Gramatical Errors.
  • Answers must not contain any bad words.
  • Answers should not be the repeat of same answer, already approved.
  • Answer should be complete in itself.
Name :*
Email Id :*
Answer :*
Verification Code Code Image - Please contact webmaster if you have problems seeing this image code Not readable? Load New Code
Process Verification Enter the above shown code: *
Inform me about updated answers to this question

Related Questions
View Answer
Historical cost concept requires the recording of an asset:
a) At its cost value
b) At its market value
c) At its Net Realizable value
d) At its replacement cost
View Answer
All of the following are valuation principles except:
a) Historical Cost
b) Present Value
c) Future Value
d) Realizable Value
View Answer
There are ___________ generally accepted measurement bases or valuation principles:
a) Two
b) Three
c) Four
d) Five
View Answer
Change in accounting estimate means:
a) Differences arising between certain parameters re-estimated during the current period and actual results achieved during the current period
b) Differences arising between certain parameters estimated earlier and re-estimated during the current period
c) Differences arising between certain parameters estimated earlier and actual results achieved during the current period
d) Both (b) and (c)
View Answer
ABC Ltd. purchased a building by paying Rs. 50,00,000 as on 1st April, 2000. On 1st April, 2007 it found that it would cost Rs. 1,50,00,000 to purchase the similar building. This value of Rs. 1,50,00,000 is known as:
a) Historical Cost
b) Realizable Value
c) Current Cost
d) Present Cost
View Answer
Gross Book Value of a Fixed Asset is its:
a) Cost less depreciation
b) Historical Cost
c) Fair Market Value
d) Realizable Value
View Answer
Money is a measurement scale and has a universal denomination:
a) True
b) Partly True
c) False
d) Can't Say
View Answer
In Accounting money is the:
a) Measurement value
b) Scale of Measurement
c) Scale of Social Measurement
d) Store o Value
View Answer
The underlying accounting principle necessitating amortization of intangible assets is/ are:
a) Cost Concept
b) Realization Concept
c) Matching Concept
d) Both 'b' and 'c'
View Answer
No inference of profit and the provision making policy for all possible losses is due to:
a) Convention of Consistency
b) Convention of Conservatism
c) Convention of Disclosure
d) Convention of Materiality
View Answer
Double Entry Principle means:
a) Writing twice the same entry
b) Writing all the entries twice in the book
c) Having debit for every credit and credit for each debit
d) All of the above
View Answer
________ refer to the general agreement on the usage and practices in social or economic life:
a) Accounting Assumptions
b) Accounting Conventions
c) Accounting Policies
d) Accounting Principles
View Answer
GAAP's are:
a) Generally Accepted Accounting Policies
b) Generally Accepted Accounting Principles
c) Generally Accepted Accounting Provisions
d) None of these
View Answer
Capital as on 1-4-05 Rs. 90,000
Capital introduced Rs. 25,000
Drawings made Rs. 35,000
Capital as on 31-3-06 Rs. 1,25,000
What is the amount of profit added to the capital?
a) Rs. 50,000
b) Rs. 60,000
c) Rs. 75,000
d) Rs. 45,000
View Answer
Cost of Machinery- Rs. 10,00,000
Installation charges- Rs. 1,00,000
Market value on 31.3.2016- Rs. 12,00,000
While finalizing the accounts, if the company values the machinery at Rs.12,00,000; which concept is violated by the company?
a) Cost
b) Matching
c) Realization
d) Periodicity
View Answer
Money owed from a outsider is a:
a) Asset
b) Liability
c) Expense
d) Capital
View Answer
Two primary qualitative characteristics of financial statements are:
a) Understandability and Materiality
b) Relevance and Reliability
c) Materiality and Reliability
d) Relevance and Understandability
View Answer
The owner of a company included his personal medical expenses in the company's income statement. Indicate the principle that is violated.
a) Cost principle
b) Conservatism
c) Disclosure
d) Entity Concept
View Answer
_________ concept is the basic idea that the business is separate from owner.
a) Dual Aspect
b) Entity
c) Realization
d) Materiality
View Answer
The Accounting Equation is based on:
a) Going Concern Concept
b) Dual Aspect Concept
c) Money Measurement Concept
d) All of these
View Answer

Please Note: We keep on updating better answers to this site. In case you are looking for Jobs, Pls Click Here Vyoms.com - Best Freshers & Experienced Jobs Website.

View ALL Fundamentals of Accounting Interview Questions & Answers



User Options
India News Network

Latest 20 Questions
What are the Hadoop related Projects at Apache?
What are the modules included in Apache Hadoop Project?
What is Apache Hadoop?
What is a Private Cloud? Do we need one to handle Big Data?
How Can We Cope with the Impact of Big Data?
What skills do Big Data analysts need to have?
What does a Big Data analyst do?
What are some real-world examples of Big Data and how it is used?
What is Big Data Analytics?
Why Big Data is becoming so important?
What is the impact of Big Data on Sports Industry?
What is the impact of Big Data on Real estate Industry?
What is the impact of Big Data on Retail Banking Industry?
What is the impact of Big Data on Retail Industry?
What is the impact of Big Data on Technology Industry?
What is the impact of Big Data on Information Technology Industry?
What is the impact of Big Data on Internet of Things (IoT) Industry?
What is the impact of Big Data on Media Industry?
What is the impact of Big Data on Education Industry?
What is the impact of Big Data on Healthcare Industry?



Fresher Jobs | Experienced Jobs | Government Jobs | Walkin Jobs | Company Profiles | Interview Questions | Placement Papers | Companies In India | Consultants In India | Colleges In India | Exams In India | Latest Results | Notifications In India | Call Centers In India | Training Institutes In India | Job Communities In India | Courses In India | Jobs by Keyskills | Jobs by Functional Areas

Testing Articles | Testing Books | Testing Certifications | Testing FAQs | Testing Downloads | Testing Interview Questions | Testing Jobs | Testing Training Institutes

Gate Articles | Gate Books | Gate Colleges | Gate Downloads | Gate Faqs | Gate Jobs | Gate News | Gate Sample Papers | Gate Training Institutes

MBA Articles | MBA Books | MBA Case Studies | MBA Business Schools | MBA Current Affairs | MBA Downloads | MBA Events | MBA Notifications | MBA FAQs | MBA Jobs
MBA Job Consultants | MBA News | MBA Results | MBA Courses | MBA Sample Papers | MBA Interview Questions | MBA Training Institutes

GRE Articles | GRE Books | GRE Colleges | GRE Downloads | GRE Events | GRE FAQs | GRE News | GRE Training Institutes | GRE Sample Papers

IAS Articles | IAS Books | IAS Current Affairs | IAS Downloads | IAS Events | IAS FAQs | IAS News | IAS Notifications | IAS UPSC Jobs | IAS Previous Question Papers
IAS Results | IAS Sample Papers | IAS Interview Questions | IAS Training Institutes | IAS Toppers Interview

SAP Articles | SAP Books | SAP Certifications | SAP Companies | SAP Study Materials | SAP Events | SAP FAQs | SAP Jobs | SAP Job Consultants
SAP Links | SAP News | SAP Sample Papers | SAP Interview Questions | SAP Training Institutes |




Copyright ©2003-2016 CoolInterview.com, All Rights Reserved.
Privacy Policy | Terms and Conditions



Cache = 0.935547 Seconds