Test Papers / Previous Question Papers of IGNOU PSS01/PCO01 Preparatory Course in Social Sciences/Commerce December 2007

Term-End Examination
Bachelor's Prepartory Programme (B.P.P.)

(For Non 10+2)

PSS-01/PCO-01:Preparatory Course in Social Sciences/
Preparatory Course in Commerce

December 2007

Time : 120 Minutes

1.All questions are compulsory, each of which carries one mark

Preparatory Course in Social Sciences (PSS-01) Questions 1-50

2. Each question has four alternatives one of which is correct. Write the SI.No. of you correct alternatives/answers below the corresponding question number in the answer sheet and then mark the rectangle for the same number in that column. If you find that none of the given alternatives is correct then write 0 and mark in column 0.

3. Do not waste time in reading the whole question paper. Go on solving questions one by one. Yoy may come back to the left out questions, if you have time at the end.

(1) Single entry system
(2) Double entry system
(3) Verifrability and objectivity of evidence
(4) combination of single and Double entry system

2. The prime function of Accounting is to

(1) record economic data
(2) attain non-economic goals
(3) provide the informational base for action
(4) classify and record business transactions

3. Book-keeping is mainly concerned with

(1) recording of financial data relating to an organisation
(2) summarising the recorded data for external use
(3) interpreting the data for internal and external users
(4) presenting the information to the management

4. Accounting principles are generally based on

(1) Practicability
(2) Subjectivity
(3) Convenience in recording
(4) Objectivity

5. The concept of Conservatism is applicable

(1) in providing for discount on creditors
(2) while providing for depreciation
(3) to charge bad and doubtful debts
(4) in making the provision for future losses

6. Cash Account is a/an

(1) Personal account
(2) Nominal account
(3) Real account
(4) Intangible asset

7. Loan from Bank is a/an

(1) Personal account
(2) ReaI account
(3) Nominal account
(4) Asset

8. Purchase of goods is a

(1) Nominal account
(2) Personal account
(3) Real account
(4) Representative Personal account

9. Rent paid to landlord will be credited

(1) Landlord account
(2) Cash account
(3) Rent account
(4) Drawing account

10. Real accounts are the accounts which relate to

(1) Assets
(2) Expenses
(3) Losses
(4) Incomes

11. Financial position of the business means

(1) position about profits and losses
(2) position about incomes and expenses
(3) what the business owes to others and what it owns at a given point of time
(4) position about liquid funds

12. Salary Outstanding account is a(1) Personal account (Natural)
(2) Real and Nominal account
(3) Nominal account
(4) Personal account (Representative)

13. Trial Balance is prepared

(1) before posting into the ledger
(2) before preparation of final accounts
(3) after posting into the ledger and balancing of accounts
(4) All of the above

14. Posting will be done in the

(1) Journal
(2) Ledger
(3) Trial Balance
(4) Balance Sheet

15. Goods given as charity

(1) Sales A/c
(2) Purchases A/c
(3) Charity A/c
(4) Cash A/c would be credited to

16. A Pass Book is a copy of

(1) Cash Book relating to bank column
(2) Cash Book relating to cash column
(3) Firm's receipts and payments
(4) A customer's account in the bank's books

17. A Bank Reconciliation Statement can be

(1) Cash Book only
(2) Pass Book only
(3) Either Cash Book or Pass Book
(4) Neither Cash Book nor pass Book

18. A Bank Reconciliation Statement is a

(1) part of Pass Book
(2) part of Cash Book
(3) statement prepared by the bank
(4) statement prepared by the customer

19. Unfavourable bank balance represents

(1) Credit balance in the Pass Book
(2) Debit balance in the Cash Book
(3) Debit balance in the Pass Book
(4) All of the above

20. Suspense Account in the Trial Balance will be entered in the

(1) Manufacturing account
(2) Trading account
(3) Profit and Loss account
(4) Balance Sheet

21. Sale of old typeryriter used In the office should be credited to

(1) Sales A/c
(2) Cash A/c
(3) Capital A/c
(4) Typewriter Nc

22. Sales Tax collected is a/an

(1) Liability
(2) Asset
(3) Expense
(4) Loss

23. Bank overdraft is a/an

(1) Liability
(2) Asset
(3) Revenue
(4) Expense

24. Income tax payable is alan

(1) Liability
(2) Asset
(3) Loss
(4) Expense

25. Business includes

(1) Industry and commerce
(2) Trade and aids to trade
(3) Industry and aids to trade
(4) Trade only

26. Accounting is

(1) a systematic record of business transactions in the books
(2) the science of measurement of wealth
(3) the summary of accounting information
(4) All of the above

27. A person who owes some amount to the business is called a

(1) Debtor
(2) Creditor
(3) Owner
(4) Auditor

28. The final step of accounting cycle is the preparation of

(1) Trial Balance
(2) Balance Sheet
(3) Trading and Profrt & Loss account
(4) Ledger

29. Which of the following is a Personal account?

(1) Bakul A/c
(2) Loan from Rakesh A/c
(3) Salaries Outstanding A/c
(4) All of the above

30. Equity is the

(1) claims or right over the assets of the firm
(2) anything which has economic value
(3) amount earned through business operations
(4) amount realised from goods sold

31. Excess of Revenue over Expenses is

(1) Capital
(2) Loss
(3) Drawing
(4) Profit

32. Which of the following transactions leads to Contra entry?

(1) Deposited Rs. 10,000 in the bank
(2) Received Rs. 4,000 from Naresh
(3) Goods sold to Rakesh for cash Rs. 1,000
(4) Goods purchased from Mohan for cash Rs. 1,000

33. Returns Outward account is overcast by Rs. 100. While rectifying this error the credit be given to

(1) Suspense A/c
(2) Returns Outward A/c
(3) Goods A/c
(4) Sales A/c

34. Depreciation on Fixed Assets is treated as

(1) Capital expenditure
(2) Revenue receipt
(3) Deferred revenue expenditure
(4) Revenue loss

35. Objective of preparing Balance sheet is to ascertain

(1) Financial position of business
(2) Net results of business activities
(3) Arithmetical accuracy of the transactions recorded
(4) Assets of the business

36. Amount brought by the proprietor, Ramesh, in the business should be credited to

(1) Cash A/c
(2) Capital A/c
(3) Ramesh A/c
(4) Drawing A/c

37. Office equipment purchased on credit will be recorded in

(1) Journal Proper
(2) Cash Book
(3) Sales Book
(4) Purchase Book

38. Which note is sent to the customer when he returns the goods?

(1) Debit Note
(2) Credit Note
(3) Promissory Note
(4) Cheque

39. Amount realised from the goods sold is cailed

(1) Revenue
(2) Gain
(3) Equity
(4) Profit

40. While preparing a Bank Reconciliation Statement, cheque sent for collection but not yet collected should be added when balance is favourable as per

(1) Cash Book is taken as starting point
(2) Purchase Book is taken as starting point :
(3) Sales Book is taken as starting point
(4) The Book is taken as starting point

41. Goods sold to Mahesh for cash will be credited to

(1) Cash account
(2) Mahesh account
(3) Sales account
(4) Purchase account

42. statement containing various ledger balances is known as

(1) Trial Balance
(2) Bank Reconciliation Statement
(3) Statement of Account
(4) Financial Statement

43. According to money measurement concept, which transaction will be recorded in the books of the account?

(1) Health of manager
(2) Quality of goods
(3) Value of building
(4) Qualifications of employees

44. Revenue is said to be realized when

(1) the sale is made
(2) goods are manufactured
(3) cash is received
(4) sale is made and cash is received

45. Discount allowed on issue of shares is an example of

(1) Capital loss
(2) Capital expenditure
(3) Revenue expenditure
(4) Deferred revenue expenditure

46. Repair incurred for using a second-hand car purchased recently

(1) Capital expenditure
(2) Revenue expenditure
(3) Capital loss
(4) Deferred revenue expenditure

47. Sales are equal to

(1) Cost of Goods Sold + Gross Profit
(2) Cost of Goods Sold - Gross Profit
(3) Gross Profit - Cost of Goods Sold
(4) Cost of Goods Sold - Stock

48. Interest on drawings is regarded as

(1) Expenditure for the business
(2) Loss for the business
(3) Gain for the business
(4) Liability for the business

49. Sales to Ram Rs. 450 posted to his account as Rs.

(1) Sales account
(2) Ram's account
(3) Cash account
(4) Suspense account

50. Which of the following accounts is prepared to find out cost of production?
(1) Manufacturing account
(2) Trading account
(3) Profit and Loss account
(4) Balance Sheet

The following is a partial list of Testpapers of similar / related courses to Preparatory Course in Social Sciences/Commerce offered by IGNOU

• PSS01/PCO01 Preparatory Course in Social Sciences/Commerce June 2007 Testpapers
• PSS01/PCO01 Preparatory Course in Social Sciences/Commerce December 2006 Testpapers
• PSS01/PCO01 Preparatory Course in Social Sciences/Commerce June 2006 Testpapers
• PSS01/PCO01 Preparatory Course in Social Sciences/Commerce June 2002 Testpapers

Note: The above courses are picked automatically by the website for indicative purpose only. However, students are requested to check with the University for the similarity of the course or for any other information in regard to the course.

B School Admissions
Do check out Admissions for Business, Management & Commerce courses

Business Schools Directory
Browse through the complete List of Top Business Schools in India

Quiz Time!!
Did you try our latest Business Quiz - Finance
Test your knowledge on Business & Finance terminology..