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Question
Cost of asset Rs. 1,00,000
Life of asset 5 years
Depreciation for each year Rs. 15,000
Sale price after 5 years Rs.50,000
Written down value of asset at the end of 5th year Rs.25,000
Profit or loss on disposal of fixed assets ?
► Rs.25, 000 profit
► Rs. 75,000 loss
► Rs. 15,000 profit
► Rs. 1, 00,000 profit
Question
What would be the value of conversion cost, if the cost of material consumed during the month is Rs. 5,000, labor cost incurred is Rs. 2,000 and the factory over head cost is Rs. 1,000?
► Rs. 3,000
► Rs. 8,000
► Rs. 7,000
► Rs. 5,000
Question
Which one of the following is CORRECT about the closing stock?
► It appears in the assets side of a balance sheet
► It decreases the value of cost of goods sold
► It becomes opening stock of next year
► All of the given option
Question
Which of the following particulars are included in the specimen of a bank receipt voucher?
1) Name of the organization
2) Bank code
3) Date of transaction
► (1) & (2) only
► (1) & (3) only
► (2) & (3) only
► (1), (2) & (3)
Question
Which of the following is an alternate term which can be used for “Capital”?
► Liability
► Owner’s net worth
► Working capital
► Asset
Question
Which of the following statement is TRUE about the positive working capital of a company?
► It shows sound position of a company
► It shows that company has sufficient current assets to meet current liabilities
► It shows that current assets are greater than current liabilities
► All of the given options
Question
In which of the following condition a company will have positive working capital?
► If current assets > current liabilities
► If current Assets < current Liabilities
► If current assets = current liabilities
► If current assets < current liabilities
Question
Which of the following is NOT an example of Current Asset?
► Bank Overdraft
► Accounts Receivable
► Notes Receivable
► Prepaid Expenses
Question
Which of the following is NOT an item of a Balance Sheet?
► Accounts Receivable
► Accounts Payable
► Sales Revenue
► Marketable Securities
Question
Which of the following statement is NOT TRUE about Current liabilities?
► These are due within one year
► These are short-term loans
► These are consist of all debts, payable after 12 months
► In working capital, these are deducted from current assets
Question
Which of the following shows summary of a company’s financial position at a specific date?
► Profit & Loss Account
► Cash Flow Statement
► Balance Sheet
► Income & Expenditure Account
Question
What type of expenses are paid out of Gross Profit?
► Selling Expenses
► General Expenses
► Financial Expenses
► All of the given options
Question
Which one of the following is NOT prepared by Non profit organizations?
► Profit & Loss account
► Income & Expenditure account
► Receipts & Payments account
► Balance Sheet
Question
Which of the following financial statement summarizes the profitability of an organization for a particular period?
► Trading and Profit & Loss account
► Cash Flow Statement
► Statement of Retained Earnings
► Balance Sheet
Question
An informal accounting statement that lists the ledger account balances at a point in time and compares the total of debit balances with the total of credit balances is known as:
► Income Statement
► Balance Sheet
► Trial Balance
► Cash Book
Question
Which of the following essentials are shown in Bank Book?
(1) Date of transaction
(2) Narration of transaction
(3) Cheque number
► (1) & (2) only
► (2) & (3) only
► (1) & (3) only
► (1), (2) & (3)
Question
Cost of asset Rs. 1,00,000
Life of asset 5 years
Depreciation for each year Rs. 15,000
Sale price after 5 years Rs.50,000
Written down value of asset at the end of 5th year Rs.25,000
Profit or loss on disposal of fixed assets ?
► Rs.25, 000 profit
► Rs. 75,000 loss
► Rs. 15,000 profit
► Rs. 1, 00,000 profit
Question
What would be the value of conversion cost, if the cost of material consumed during the month is Rs. 5,000, labor cost incurred is Rs. 2,000 and the factory over head cost is Rs. 1,000?
► Rs. 3,000
► Rs. 8,000
► Rs. 7,000
► Rs. 5,000
Question
Which one of the following is CORRECT about the closing stock?
► It appears in the assets side of a balance sheet
► It decreases the value of cost of goods sold
► It becomes opening stock of next year
► All of the given option
Question
Which of the following particulars are included in the specimen of a bank receipt voucher?
1) Name of the organization
2) Bank code
3) Date of transaction
► (1) & (2) only
► (1) & (3) only
► (2) & (3) only
► (1), (2) & (3)
Question
Which of the following is an alternate term which can be used for “Capital”?
► Liability
► Owner’s net worth
► Working capital
► Asset
Question
Which of the following statement is TRUE about the positive working capital of a company?
► It shows sound position of a company
► It shows that company has sufficient current assets to meet current liabilities
► It shows that current assets are greater than current liabilities
► All of the given options
Question
In which of the following condition a company will have positive working capital?
► If current assets > current liabilities
► If current Assets < current Liabilities
► If current assets = current liabilities
► If current assets < current liabilities
Question
Which of the following is NOT an example of Current Asset?
► Bank Overdraft
► Accounts Receivable
► Notes Receivable
► Prepaid Expenses
Question
Which of the following is NOT an item of a Balance Sheet?
► Accounts Receivable
► Accounts Payable
► Sales Revenue
► Marketable Securities
Question
Which of the following statement is NOT TRUE about Current liabilities?
► These are due within one year
► These are short-term loans
► These are consist of all debts, payable after 12 months
► In working capital, these are deducted from current assets
Question
Which of the following shows summary of a company’s financial position at a specific date?
► Profit & Loss Account
► Cash Flow Statement
► Balance Sheet
► Income & Expenditure Account
Question
What type of expenses are paid out of Gross Profit?
► Selling Expenses
► General Expenses
► Financial Expenses
► All of the given options
Question
Which one of the following is NOT prepared by Non profit organizations?
► Profit & Loss account
► Income & Expenditure account
► Receipts & Payments account
► Balance Sheet
Question
Which of the following financial statement summarizes the profitability of an organization for a particular period?
► Trading and Profit & Loss account
► Cash Flow Statement
► Statement of Retained Earnings
► Balance Sheet
Question
An informal accounting statement that lists the ledger account balances at a point in time and compares the total of debit balances with the total of credit balances is known as:
► Income Statement
► Balance Sheet
► Trial Balance
► Cash Book
Question
Which of the following essentials are shown in Bank Book?
(1) Date of transaction
(2) Narration of transaction
(3) Cheque number
► (1) & (2) only
► (2) & (3) only
► (1) & (3) only
► (1), (2) & (3)
Question
Particulars Rs.
Opening written down value of machine 3,75,000
Cost of machine 50,000
Depreciation during the year 11,000
Closing written down value (WDV) of the Machines ?
► Rs. 4, 14,000
► Rs. 4, 25,000
► Rs. 3, 86,000
► Rs. 61,000
Question
Particulars Rs.
Opening written down value of machine 1,00,000
Cost of new machine purchased during the year 50,000
Depreciation during the year 21,000
Closing written down value (WDV) ?
► Rs. 1, 29,000
► Rs. 1, 50,000
► Rs. 1, 21,000
► Rs. 71,000
Question
Firms charge depreciation each year:
► To ensure there is enough money in the firm to replace the asset
► To spread the cost of the asset over its working life
► To reduce the profit and thus reduce the dividends they can pay to share holders
► Because the law states they must be reduced
Question
Depreciation arises because of:
► Fall in the market value of an asset
► Fall in the value of money
► Physical wear and tear
► All of the given options
Question
The assets which have a limited useful life are termed as:
► Limited assets
► Depreciateable assets
► Unlimited assets
► None of the given options
Question
Accountancy covers which of the following area(s):
► Book-keeping
► Accounting
► Auditing
► All of the given options
Question
Bank Reconciliation Statement is prepared by:
► Bankers
► Accountant of the business
► Statutory auditor
► Manger
Question
___________ is the detail of transaction in one’s account provided by the bank.
► Bank statement
► Bank reconciliation statement
► Income statement
► Financial statement
Question
If you start with cash book favorable balance in Bank Reconciliation Statement, which item will be added?
► Cheque deposited but not credited by the bank
► Cheques omitted to be deposited into bank
► Any amount directly collected by bank on behalf of customer but not recorded in cash book
► Debit side of cash book was overcast
Question
_________ is the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction.
► Present value
► Fair value
► Book value
► Residual value
Question
Consider the following:
Beginning inventory 10 units @ Rs. 10 per unit
First purchase 35 units @ Rs. 11 per unit
Second purchase 40 units @ Rs. 12 per unit
Third purchase 20 units @ Rs. 13 per unit
Eighty-five units were sold, what is the value of the ending inventory using the FIFO method of inventory costing?
► Rs.260
► Rs.232
► Rs.284
► Rs.268
Question
If, Cost of machine = Rs.400, 000
Useful life = 5 years
Rate of depreciation= 40%
The book value of machine after one years using diminishing balance method is ?
► Rs.86, 400
► Rs. 1, 44,000
► Rs. 2, 40,000
► Rs. 51,840