B1[NRB Special MCQ BOOK SmartGk 62. THT TRATT FETA (Profit and Loss Account) STE Rs. 1,00,000 Fl Gx AH] HATS TUR TST ETT (General Reserves) FT 20% THA T¥. 2,00,000 HH share capital ST 15% Sa MavaT ot GeaAT ‘NIA (Balance Sheet) I total Hfiel Tee ? A) Rs. 40,000 B) Rs. 50,000 ) Rs, 80,000 D) Rs. 1,00,000 63. When was Auditor General first appointed in Nepal? A) 2015 Asar 16 B) 2016 Asar 16 2017 Asar 16D) 2018 Asar 16 64. According to accrual concept of accounting, financial or business transaction is recorded: Ajwhen cash is received or paid B) when transaction occurs ) when profit is computed D) when balance sheet is prepared 65. Se omendia caren enfin ory 14 acaes & HFT? What is the item called which gives economic benefit over its useful life? A) Owner's Equity B) Liabilities ) Withdrawals D) Assets 66. Internal Control STS BAe HHH eI ? A)Management B) Auditor ©) Management & Auditor D) Committee of Sponsoring Organizations. 67. Gross margin is added to cost of sold goods to calculate A)revenues, B) selling price ©) unit price D) bundle price 68. Which of following is an example of purchasing costs? Ajincoming freight B) storage costs ©) insurance D) spoilage 69. Which of the following are cash flow from financing activities? Allnterest received B) Dividend received C)Interest paid) Dividend paid A)Both a and b B) Both aandc QBothcandd —D) a,b, candd 70. After democracy in 2007 8)S., when was budgeting system started in Nepal? A)2010 BS B)2009 BS. ©) 2008 BS. D) 2012 BS. 71. cist Reng wel ats wTaP | A) debited in cash bookA)cash book #1 amount HE 8) credited in cash bookB) cash book Flamount Te, ) debited in pass bookC) pass book #lamount 4 I, D) credited in pass bookD) pass book #1 amount HEq, Al-a2-b3-d4-c By-b2-a3-da-c Ct-c2-b3-d4e — D) ta2-b3-c4d 72. Fa aa orate citaa HTgaT Ga Tig? A) otanda ate aur ore ad | 8) Saree aria eee | Q meaner ata aur afi enter D) aead otanicedts FF ie TAT TE 73, HOTS Sra SHE OA A CSET YET TaN Gags Tae Tits 4A eT fates h us 2 A) sample method B) census method C) certified method) cerially method 74. cael wane eat HH BA? Aaaeae sae) wR BRRRRGTR aR CATA UROT DATARATE eI 75. Srl rat faecal HeLa. el eT? AIT B)S Qi D)22 76. Drawing “ata et? ARE! Melt air B) SRR EL Qaei Paer sigg DEA aia digs 77.8& (ere eis earl Hee ce] Hel Paaie A? Anna gitar cen gaged aa dea staat Haare oxo caren Th 2) darate Hea Tetige THT TTS Qari afantare wep redige Ta es pyaar ee 78. aSeA ..... EIA SUING Ew | Awa aga B) Sui Hee OWT Aes Dita aes 62.D [638 [648 [65D [660A [67a [oac [oxc [roc [7B 72.d [73.68 [74d [75.0 [76a [77.0 [741c82|NRB Special MCQ BOOK SmartGk 79, ReTH Att HTC Current Assets GEA ? Alcash B) prepaid expenses C) outstanding expenses D) Debtors 80. Bank Cash Book ..... Entry System AT stuf GS | A) single B) double O triple D) zero 81. Trial Balance TAR I fF] Da Gr? A}Trading Account B) Profit & Loss C) Balance MethoD) D) None of the above 82. Cash Book #1 Cr. side df........ entry FS | A)income B) Expenses C) Capital D) Assets 83, TeTay CGNT Tat Ta PATENT | A) sian Aiegietl Frater wa TAS aT Sat ES | B) others Ateament Fears wet THIS THT aT FS | QO ye Fleas Heats adi aria ap Pa GS | D) Se Fearne yeaioos aH AIC ANI eT EA | Aerta dip javade Qn, aradin Dw TASH 84. GT TE ace vara > gars 2 A) Te Bete SA Te UIST BM oH B) Ta Ueto sear ae UT UM atic O Tee watt cer ate Fa TT a sit A2 Ba as D6 86. SHIRT Da Gast SASH SST 2 Ayaha Gat By corte waraT QAI aI siswie Ga ATT Asa TT 37. Reus aa Ga we? ) Da WAUGross Profit) HAUNT Trading Se TES | © pa Tere) sea case A oxeat Reber afte | T) Ge ATF (Net Profit)ehl HITE yaaa fet He) yO MVS | We ae) Raku 74 cereal ae onal Yea | AVIA Bata gw D)®, 128 A 88. deel Fed GH SE SENT STM lg? Apeutt By awry Fe Quyags DFP so 89, Sderuas arian ery Hie) dohteng & uf 2 Ajsifgpa Uef (Authorized Capital) 8) sik} Taf (Issued Capital) TARA Sst (Subscribed Capital) D)SaeT Got (Paid up Capital) 90. Internal Check CTS FHTADN FaTSa TAGS HA BT? A od fauna 8) oifael oar qard aRada ppariel at 91.he ratio that explains how efficiently companies use their assets to generate reveneu. Ajrevenue asset ratio 8) receivables turnover ratio Q) income ratio D) asset turnover ratio 92. Accounting cycle WI 74 FRU AeA SA AS SA? A) Recording B) Classification © Reconciliation D) Communication 93, aerated Foltta we (Capital Expenditure) 7 #7 A Ba ad 8) aR we (Preliminary Expenditure) ate Premera eet 0) ga ah ss | 79.c [806 [ac [628 [63D [aac [85A ]6ac [ara [86.c g9.B [90D [oD [92c [93.0a3[NRB Special MCQ BOOK SmartGk 94, A company has an opening balance of Machinery Rs. 100,000 on Baisakh 1. It purchased another machinery for Rs. 50,000 on Ashwin end Depreciation rate is 10%. Calculate the closing balance of machinery at Chaitra end. A)140,000 B) 135,000 ©) 137500 D) 125,000 95. hat is the Journal Voucher number of Statement of Monthly Expenditure? AJAGF No. 10 B) AGF No. 13, AGF No. 22, D) AGF No. 17 96. P/L Appropriation A/c AT D7 item SBT 2 Ay Staff Salar B) Transfer to Reserve C) Rent, Rates & Taxes D) Dividend Received 97. ARUT (Management) & HEATH fats (FATT (financial statements) THT (conceal) 7 HA Waray fae ge? 8) Materiality Principle B) Historical Cost Principle ©) Full Disclosure Principle D) Consistency Principle 98. Which of the following is a liability? A) Petty cash B) Loose tools ) Uneamed Revenue D) Leasehold premises 99. An auditor assesses control risk because it Alaffects the audit risk B) affects the level of detection risk that auditor may accept ) helps him to fix materiality level for each financial assertion (AFT aTa) D) is directly related to inherent risk (Fife GARE) 100. Collection of debtors A) Decreases current ratio B) Increases current ratio ©) Has no effect on current ratio D) None of the above 4c [95.8 [9c [97.c [98.c [998 [100 A 1. If purchase order lead time is 35 minutes and number of units sold per time is 400 units, then reorder point will be A)14000 units B) 14500 units 15000 units D) 15500 units 2. Which of the following statements are true? A) Cash flow reveals only the inflow of cash B) Cash flow reveals only the outflow of cash ©) Cash flow is a substitute for income statement D) Cash flow statement is not a replacement of funds flow statement. A) Only A B) Only B Both B and C D) Only D 3. BRR charar aple freee wre TAT? Aj3 BT Qo Ds 4, When estimating uneamed revenues, what principle applies? A) Conservatism Principle B) Historical Cost Principle ) full Disclosure Principle D) Consistency Principle 5. Business started with Cash Rs. 50,000 and machinery Rs. 150,000. In this case, which account is credited? A) Cash and Machinery Account B) Creditors Account Capital Account 1D) Revenue Account 6. Roma chap! arenes TT SHC ART | The performance of test of controls is documented in..... A) audit programme B) flow charts OQ working papers —_DJany of above 7. Determine Debtors turnover ratio if, closing debtors is Rs 40,000, Cash sales is 25% of credit sales and excess of closing debtors over opening debtors is Rs 20,000. A) A times B) 2 times )6times D) 8times, 1A [2D [3D [4a [5c foB [7ASAI NRB Special MCQ BOOK SmartG 8. Whats JIT approach in inventory management? A) to sell goods instantly after production B) to purchase goods in bulk () to purchase goods for production only when neededD)to keep safety stock 9. If Profit before tax is Rs, 300,000, tax rate is 30%, equity share capital is Rs. 5,00,000 and fixed assets are Rs. 50,000, calculate return on equity. A) 42% B) 38.18% C) 46.67% D) 25% 10. 7ST ROR AS PRTG HATS AESTNTHS Signa HT TH? A) 2076/02/19 B) 2076/03/21 C) 2076/04/01 D) 2076/03/25 11. Cara Reger STATA (income) TATSATTS Tats stun GIT Pars HA A) Consistency Principle B) Objectivity Principle ©) Cost Principle D) Revenue Recognition Pri 12. Rent for the month Rs. 25,000 and prepaid rent Rs. 15,000. Which account is created? A) Real Account B) Personal Account C) Nominal Account) Representational Account 13. External Audit 51 57a 94 fAINe a el GA Internal Audit Hl Fer? A) check risk management B) independence _C) confidentiality D) professionalism 14. Share Capital Rs. 5,00,000, Reserves Rs. 1,00,000, Long term Debt Rs. 3,00,000 and Debentures Rs. 1,00,000. What is the Debt-E quity ratio? A2t B) 25:1 Q34 D) 1.51 15. If demand in units is 18000, relevant ordering cost for each year is $150 and an order quantity is 1500 then annual relevant ordering cost would be A) $200 B)$190 $160 D)$180 16. BT DRIENTT Contra Entry FT ? A) So aig Tah 8) PIaWsaHT Leo Sapare Ba] < ST ET eT Q aware aca yaar fear D) Sunda) ear alle Tah 17. BA Hd RF New Government Accounting System FOP HTLaey el? A) 2017/18 B) 2018/19 Q 2019/20 D) 2020/21 18, Charging depreciation on straight line basis and changing to WDV method violates. A) Cost Principle B) Consistency Principle C) Realization Principle Dall 19, BITES sien fOrfea Riga (Arithmetical Accuracy) vita af Gare TRA seM (instrument) a & Hh 2 A) OPEC (Balance Sheet) B) Tg Wars AGL (Cash Flow Statement) ©) Sie TREN (Trial Balance) D) 11 ASST STSeHTS TAI (P/L Appropriation AVC) 20. Which is not a component of internal control? A) supervision B) control activities ©) monitoring of controls D) information system 21. Higher the ratio, the more favorable it is, doesn't stands true for A) Operating ratio B) Liquidity ratio C) Net profit ratio D)Stock tumover ratio 22. Decision model to calculate optimal quantity of inventory to be ordered is called A) efficient order quantit B)economic order quantity 8) ration aorder quantity Djoptimized order quantity 23. Which is a part of Cash Flow from Investigating Activities? A) Interest Received from Fixed Deposit 8) Interest paid to Bank for loan ) Dividend Paid D) Depreciation Charged 24, BRP] Glell HA TAAL GS HCH gl? A) Malla Period B) Lichchhavi Period C) Mahispal Period —_D) Shah Period 25, What is the major feature of IFRS? A) Fair Value Concept __B) Historical Cost Concept__C) Cash Concept__D) All 6c [9 A [OA fitD fia [13.8 [14D [15D [168 [17.C 138 [19.c [20A [ata [228 [233A [24B [25.4S| NRB Special MCQ BOOK SmartGk 26, Journal 23% GH HISTAE STEHT I ? Awe 8) ae qzert Do 27. Major difference between internal audit and extemal audit is... A) Independence B) Checking ©) Sampling D) Alll of the above 28. Formula of Inventory Turnover Ratio is... A)Sales= Total Inventory B) Sales= Average Inventory ©) Cost of Goods Sold= Average Inventory __D) Cost of Goods Sold= Total Inventory 29. if purchase order lead time is 35 minutes and number of units sold per time is 400 units then reorder point will be ‘A) 14000 units B) 14500 units ©) 15000 units D)15500 units 30. Balance Sheet is prepared to indicate assets and liabilities at. A) point of time B) Period of time C) Accounting year Dyall of the above 31. Sept Gel t aate waar fra PA FA? A) arprgelesy eereaT ac 8) PER SARAH) STURT (TAT Qaee dea gee Datbed 32. SHIM fais Taf ©. 10,000 Wel wa WF SSSI HH Part os AWE UTE Ud ? Ae 8) ost Q sree Dy) ae 33. Salary paid by cheque Rs. 10,000 1 Debit journal % g- ? A) Bank a/c B) Salary a/c Q Cash a/c D) Income a/c 34. The relationship between two financial variables can be expressed in: A) Pure ratio B) Percentage ) Rate or time D) Either of the above 35. If closing stock of last year is overstated by Rs. 25,000, accumulated profit (fa 4TH of the two years will be ‘A) overvalued by Rs. 50,000 Bjundervalued by Rs50,000 B) No change D) overvalued by Rs. 25,000. 36. If sales is Rs. 2,000 and the rate of gross profit on cost of goods sold is 25%, then the cost of goods sold will be A) Rs. 2,000 B) Rs. 1,500 Rs. 1,600 D) None of the above 37.40 Uy dh X Mel ER claw Sisal Fae UE do deel fe ot okaban AguA o? AS B)6 ar D8 36. Revenue from sale of products, is generally, realized in the period in which A) Cash is collected 8) Sale is made ) Products are manufactured D) None of the above 39.A sale of goods to Ram for cash should be debited to: A) Ram B) Cash ) Sales D) Capital 40. Verification of the value of assets, liabilities, the balance of reserves, provision and the amount of profit earned orloss suffered a firmis called A) Continuous audit B) Balance sheet audit ) Interim audit D) Partial audit 41. The definition, “The term accounting ratio is used to describe significant relationship which exist between figures shown in a balance sheet, in a profit and loss account, in a budgetary control system or in a any part of the accounting organization’ is given by A) Biramn and Dribin B) Lord Keynes OJ. Betty D) None of the above 42. If dosing stock of last year is understated by Rs, 25,000, accumulated profit (=f 4TP)) of the two years will be A) overvalued by Rs. 50,000 B)undervalued by Rs.50,000 B) No change D) overvalued by Rs. 25,000 262A [27.A [288 [29A [304 [31.0 [328 [338 [34D [35.8 36.c [37D [388 [398 [4oB [arc [a886[NRB Special MCQ BOOK SmartG 43. The capital of a sole trader would change as a result of A) Acteditor being paid his account by cheque B) Raw materials being purchased on credit, ©) Fixed assets being purchased on credit D) Wages being paid in cash 44.05 tad Fam BONS silasa Be Rata gat Fe wal wa wT Bate 2 A) 150 days B) 180 days €) 120 days D) 90 days 45, Decrease in the amount of trade payables result A) Increase in cash. 8B) Decrease in bank over draft account. ©) Decrease in assets. D) No change in assets. 4G. A withdrawal of cash from business by the proprietor should be credited to: A) Drawing Account —_B) Capital Account ) Cash Account D) Purchase Account 7. Vouching of the balances of all incomes and expenses account is known as vouching of _ A) Personal ledger B) Impersonal ledger. C) Cash D) Sales 48. When the concept of ratio is defined in respect to the items shown in the financial statements, itis termed as. A) Accounting ratio 8B) Financial ratio ©) Costing ratio D) None of the above 49. Which is the least liquid item of the following? A) Cash B) Bank ) Debtors D) Stock 50. Rent paid on 1st October, 2010 for the year to 30 September, 2011 was Rs. 1,200 and rent paid on 1st October, 2011 for the year to 30 September, 2012 was Rs. 1,600. Rent payable, as shown in the profit and loss account for the year ended 31 December 2011, would be: A) Rs. 1,200, B) Rs. 1,600. ORs. 1,300. D) Rs. 1.500 51. TERT ORIEN Pare 2076 SAH Aare RRR al ge SS Gra fafa aes wa eT ARI Ts Une Gra Tien Frew? A Herta Reraael preter 8) aN wa aa Rawat orale C Berekel larenert enrafers Dy HereifacerreA) corer: 52. Economic life of an enterprise is split into the periodic interval to measure its performance is as per A) Entity, B) Matching. C) Periodici D) Accrual 53. The process of transferring the debit and credit items from a Journal to their respective accounts in the ledger is termed as A) Posting B) Purchase ©) Balancing of an account) Arithmetically accuracy test 54. Preliminary expenses are the best example for - A) fictitious asset. B) intangible asset. © wasting asset. D) floating asset. 55, What is the amount of tangible net worth, ifin the balance sheet of the company, the debt equity ratio is 2:1. The amount of long term sources is Rs. 12 lacs. A) Rs. 12 lacs B) Rs. B lacs ORs. 2 lacs, D) Rs. 4 lacs 56. Which is the most liquid item of the following? A) Cash B) Bank Debtors D) Stock 57. The excess price received over the par value of shares, should be credited to A) Calls-in-advance account B) Share capital account C) Reserve capital account D) Securities premium account 58, SENT ERIE FART 2076 ATE aA eT ERTL SSA THA PP A) Guna Ty oT B) GER Tel Wen GS aT Q oreaftie ory erat b) defer Gerace snarl erat 59. While finalizing the annual accounts, if the company values the machinery at Rs. 12,00,000. Which of the following concepts is violated by the Alpha LtD)? A) Cost B) Matching. © Accrual Periodicit 43.0 [448 [4c [46c [47.8 [48a [490 |50c |51B [sac 53.A |[54A [55D [564A [57.D [58A [59.4a7[NRB Special MCQ BOOK SmartGk 60, The technique of finding the net balance of an account after considering the totals of both debits and credits appearing in the account is known as A) Posting B) Purchase Balancing of an account) Arithmetically accuracy test 61. Periodical audit is also called as A) Final audit B) Interim audit. ©) Balance sheet audit. D) Income statement audit. 62. What is the liquidity ratio for commercial banks? A) 12% B) 20% ©) 25% Dy) 11% 63. Which is the simple and less expensive inventory system? A) Periodic Inventory System B) Perpetual Inventory System ) Normal Inventory System D) Actual Inventory System 64. Wages and salaries of employees which company ownsin this accounts are called ©) accrued expenses B) accruals accounts D) Both A and B D) zero liabilities 65. SRP RIS PAT 2076 TAT Apa Sifts He Te ORTH GA SAAT WA? A) fauna By eT By We TUT GY TAT Qe sfc as erat D) SSN Ta Ted ST GIT 66. Mr. Ahas reported a profit of Rs. 1.25,000 at the end of the financial year after taking into consideration the following amount: A) The cost of an asset of Rs. 25,000 has been taken as an expense. B)_ Mr. Ais anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books. ©) Salary of Rs. 7,000 payable in the financial year has not been taken into account. D) Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000. 67. What is the correct amount of profit to be reported in the books? A) Rs. 125,000 B) Rs. 135,000 C) Rs. 1,50,000 D) Rs. 133,000 68. Journal and ledger records transactions in A) A chronological order(@7FEI) and analytical order respectively. B) An analytical order and chronological order respectively. ©) A chronological order only D) An analytical order only, 69. The main object of the audit of the cash book may be _ A) to verify the assets and liabilities, B) to know that all receipts and payments have been properly recordeD) C) to check the intemal control system in business. D) to check the bank balance. 70. What is the CCD ratio of banks and financial institutions? A) 75% B) 80% ) 85% D) 70% 71. Which is the feature of periodic inventory system? A) based on physical verification. 8) based on book records ©) costlier method D) All of the above. 72. Which of the following would not be considered a cash flow from “operating” activities? ‘A) Payments for the inventory B) Interest received on loans ) Tax payments D) Payment of debt principle 73, SPN ORIGR Para 2076 SAE Aare TOPS aS Gay Ha GIST Ta? A) fauna oT eT 2) SER SU Tea GTS GTA OQ sete Sy Gi ) cara Berge ara Sia 60.C [61.C [628 |[63A [64D |65A | 66. 67D [68A | 69.C 708 [7A |[72A [73.0a8[NRB Special MCQ BOOK SmartG 74. All of the following are valuation principles except A) Historical cost. B) Present value, C) Future value, D) Realisable value. 75. Ledger book is popularly known as A) Secondary book of accounts B) Principal book of accounts B) Subsidiary book of accounts D) None of the above 76. The work of one clerk is automatically check by another clerk is called A) Internal control. B) intemal check. C) Internal audit. D) None of the above. 77. Internal Rate of Return is the rate at which... A) NPV is positive B) NPV is zero Q Profitability index is 2 times D) Earning per share is maximum 78. Inventory Control can be excercised undet..w.eeunsmases A) Periodic Inventory System 8) Stable Inventory System ) Perpetual Inventory System D) All of the above 79. In the long run, a business must generate positive net cash flow from which of the following activities, if it is to survive? A) Investing activities B) Financing activities ©) Operating activities D) Non cash activities 80. RON oRlaR Maret 2076 HRS A aOR Morn ae Gal Oa wats was 7 A) bisa tea Ors GT B) GAR Tu Ten GS TT Q simfie oy are D) aafirar Seraet amet erat 81. On March 31, 2015 after sale of goods worth Rs. 2,000, Sumitra is left with the closing inventory of Rs. 10,000. This is A) An event. B) A transaction, ©) A transaction as well as an event. D) None 82. At the end of the accounting year all the nominal accounts of the ledger book are A) Balanced but not transferred to profit and loss account B) Not balanced and also the balance is not transferred to the profit and loss account C) Balanced and the balance is transferred to the balance sheet D) Not balanced and their balance is transferred to the profit and loss account 83. A vacancy caused by resignation of an auditor is filled by _ A) Board of directors 8) managing director. C) general meeting D) Government. 84. The formula of Capital Adequacy ratios... A) Total Capital/Total Assets B) Total Capital/Total Liabilities C) Total Capital/Risk weighted exposures D) Any of the above 85. if dosing stock of previous year is understated, it will resuh A) increase of net profit this year 8) decrease of net profit this year ) no change in net profit of this year D) decrease of gross profit this year 86. When equipment is sold for cash, the amount received is reflected as cash? A) Inflow in the operating section B) Inflow in the financing section ) Inflow in the investing section D) Outflow in the operating section 87. TEER GNIGN Mafra 2076 SATE Fae TLHRTT shay (overdraft) BM HAG ATA UE HT airs wri ees 2 A) Deitel Para) pair 8) DIS cel Ga Peal wales ) RereRaT wRlarorent apres Dy aerate wratere 88. sirdite Parau yore mache apa aie tiga ? ‘A) Management Override 8) Collusion among employees C) Inefficiency of internal auditor D) Abuse of authority 74.c [758 |768 |77B zac [rac [sod [81a [a2d [aac 64.c [85.A [86.C | 87.A | b8.cg9[NRB Special MCQ BOOK SmartGk 39, ara Rare Teter Ha Ha Gea otras GATST 2 ALR eam Haat ae B) 13 % VTE Wises HES Q rrr afta ArT D) waeaht sare Ger 90, sities Sax] Teel Hel pa Vw 2 A) GR fears ST 8) ATP) AGH PBA ST Q aed pata ae 91, Tere Aa Das TTR gat Soa Res 2 A) Teel ea By dere ST Creme at Dy ware aPate 92. Luca De Pacioli $4 Qaap1 aT FH? A) os B) zeit Q ace pa 93. Luca De Pacioli ST GAH SHH TIAL TH HT Bl? A) Luca De Pacioli B) Hugh old Castle C) James Paul D)J. R. Battliboi 94, ara = aIgeee yh sities wah |fPerler fecore wt feet art a gH? A) Luca De Pacioli B) James Paul Marshal D) Hugh old Castle 95. GAAP 1 yeh By a eT? A) General Accepted Accounting Principle B) General Accounting & Administrative Principle ) Gain Advance Account & Price b) gt eles 96. AIC TRS TAR TART ? A) fare 8) sara Q fern bp) afta gga 97. GACH FACT Column FS (Se CHASE ) TSA A HUH Ba GU HE THETA WaT HIT 2 A) onan fare B) Luca De Pacioli C) EdwardJones —_D) R.N. Anthony 98. Paid interest to bank Rs. 25,000. Accounting equation Al deel 481 get aife few et A) Assets decreased by Rs. 25,000 and liabilities decreased by Rs. 25,000 B)Assets decreased by Rs. 25,000 and capital decreased by Rs, 25,000 C)Assets increased by Rs. 25,000 and liabilities increased by Rs. 25,000 D)Assets decreased by Rs. 25,000 and liabilities increased by Rs. 25,000 99. Wages paid Rs. 10,000 and wages outstanding Rs. 5,000. Which of the following is correct? A) Debit Wages Rs. 15,000, Credit Wages O/s Rs. 5,000, Credit Cash Rs. 10,000. B) Debit Wages Rs. 10,000, Debit Wages O/s Rs. 5,000, Credit Cash Rs. 15,000, ©) Debit Cash Rs. 15,000, Credit Wages 0/s Rs. 5,000, Credit Wages Rs. 10,000. D) Debit Wages Rs. 10,000, Credit Wages O/s Rs. 5,000, Credit Cash Rs. 5,000, 100. Sirah FEAT WOT (Internal Control System) 1 WOR AeeHT Hea HA ale cg? A)Preventative B) Detective Q Corrective D) Corelative 890A [90D foc [928 [93B [94B [95A [96.8 [97.C [98.8 99.4 [100. D90[NRB Special MCQ BOOK SmartGk 1. Performance audit checks...» A) Efficiency B) Productivity C)bothaandb —_D) income 2. Solvency ratio checks, A) firm’s capacity to earn profit B) firm’s capacity to pay current liabilities ©) firm’s capacity to pay long term liabilities D) all of the above. 3. Calculate Inventory Cash cycle if Opening stock= Rs. 40,000, closing stock= Rs. 20,000, cost of goods sold =Rs. 1,50,000. A) 146 days B) 73 days 36.5 days D) 40.5 days 4. What is JIT approach in Inventory management? fet AIqRMAT JIT approach & I ? A) to purchase goods when required 8) to keep safety stock ©) To forecast future requirement D) to keep inventory records. 5. NFRS agar dagoe Fis silaltke fafey faarurelig d Uw 2 A) Complete Financial Statements B) Interim Financial Statements C) Trimester Financial Proposal D) Interim Financial Proposal 6. The capital gearing ratio is high for a com pany.lt indicates a position of A) Low debts B) high preference capital high equity D) low debt equity ratio 7. Financial leverage means A) Use of more debt capital to increase profit _B) High degree of solvency © Low bank finance D) None of the above 8. A very high current ratio indicates A) High efficiency 8) flabby inventory (inventory held due to poor working capital management) © position of more long term funds D) bore 9. Current ratio is 2:5.Current liability is Rs.30000.The Net working capital is A) Rs.18,000 B) Rs.45,000 ©) Rs(-) 45,000 D) Rs.(-)18000 10. Current ratio is 4:1.Net Working Capital is Rs.30,000.Find the amount of current Assets. ‘A) Rs.10,000 B) Rs.40,000 ©) Rs.24,000 D) Rs.6,000 11. Current ratio of a concern is 1,its net working capital will be A) Positive B) Negative ONil D) None of the above 12. Authorised capital of a com pany is Rs.5 lac,40% of it is paid up.Loss incurred during the year is Rs.50,000.Accumulated loss carried from last year is Rs.2 laC)The company has a Tangible Net Worth of A) Nill B) Rs.2.50 lac OORs.50,000 —_D) Rs.1 lac 13. In last year the current ratio was 3:1 and quick ratio was 2:1. Presently current ratio is 3:1 but quick ratio is 1:1.This indicates comparably A) high liquidity B) higher stock O lower stock D) low liquidity 14.In the balance sheet amount of total assets is Rs.10 lac, current liabilities Rs.5 lac & capital & reserves are Rs.2 lac .What is the debt equity ratio? Ayr B) 1.51 21 D)none of the above. 15, Payment of dividend comes in. A) Cash Flow from Financing Activities B) Cash Flow From Investing Activities Profit and Loss Account D) Cash Flow From Operating Activities. 1c f2c [3 8 [4a [58 foB [7a [8B [9D [10B wc fi2zc [13.8 [14D [15.4S1[NRB Special MCQ BOOK SmartGk 16. PUGAPL TE MPA GEMTTET | A) Communication-----Recording B) Recording----Com municating- ©) Identifyin D)Identifying, 17. Net Profit Ratio: A) Rs. 25 B) Rs. 20 18. Liabilities are which of the following? A) Resources B) Obligations 19. An asset posses which of the following? A) Future economic benefits for the business © Expenses for the business is the gross inflow of economic benefits A) Assets, B) Liabilities 21. What is equity? A) Cash from the business © Owner's claim on total assets 22. Which is the most im portant characteristic that A) Long life of assets C Intangible nature of assets ~Identifying identifying Communicating—-Recording ecording—Communicating 20. =20%, Sales=Rs. 500,000. There are 5,000 Equity shares of Rs. 100 each. EPS= CRs. 15 D) Rs. 30, C) Future benefits _D) Expenses B) All kind of benefits for the business D) Merits and Demerits for the business ©) Income D) Expenses B) liability of a business D) Owner's claim on total liabilities all assets of a business have? B) Value of assets D) Future economic benefits 23. Liability are arisen from which of the following events? A) Present event © Past event B) Future event D) None of them 24. An asset must be by the business to be shown as an asset in its "balance sheet” A) Possessed B) Owned 25. Purchases return means goods returned to the A) Good quality © Super quality 26. Capital will reduce by A) Purchase of goods on credit C) Furniture purchased for personal use 27. Bank overdraft is A) Short term liability C) Owners’ liability 28, Purchase refers to the purchase of A) Goods for resale ©) Assets for the factory ©) controlled supplier due to B) Defective quality D) Excellent quality D) Used B) Selling of goods for cash D) Computer purchased for office use B) Long term liability D) Contingent liability B) Stationery for office use D) None of these 29. Which of the following is not a business transaction? A) Purchase of goods for resale amounted to Rs. 10,000 B) Paid salaries amounted to Rs. 5,000 Q) Give an appointment letter to Mr. Sharama D) Paid rent for office premises Rs. 3,000 30. Discount allowed is A) Expense of business © Loss of business B) Income of business 1D) Abnormal loss of business: 16.D [17.8 [18B [19a [20.c 2i.c [22D [23.c [24c [258 26.C [27A [268A [20C [30492|NRB Special MCQ BOOK SmartG 3 is concerned with establishment of relationship between the various items of financial statements A) Interpreting 8) Identifying the transaction © Communicating D) Analysing 32 is concemed with explaining the meaning and significance of relationship between ‘two items of financial statements A) Interpreting 8) Identifying the transaction © Communicating D) Analysing 33. Which one is smallest in scope? ‘A) Accountancy B) Accounting ——C) Book Keeping) None of them 34, Net Profit Ratio=20%, Sales=Rs. 500,000. There are 5,000 Equity shares of Rs. 100 each, ROE= A) 25% B) 20% 015% D) 30% 35. Fixed cost is divided by break-even revenues to calculate A) cost margin B)fixed margin Qrevenue margin —_D) contribution margin 36. The cost of insurance and taxes are included in A) Cost of ordering B) Set up cost Q) Inventory carrying cost D) Cost of shortages: 37. Statement of changes in working capital is prepared separately in A) Cash Flow Stateme B) Funds Flow Statement C) Both D) None of the above 38, WHTAAT HA VAY HA (tax, revenue) Gi... HEMT WAT Ta TTY SHIEH Ga AaaaT CT et Tey Si ar oaeive Rede 1 Aq B)2 a5 D3 39. The John Marketing Company provides advertising services to an investment company in year A but receives advertising fee in year B The John Marketing Company recognizes this revenue in year AThis action of John Marketing Company is justified by: A)business entity concept B) revenue recognition principle C) economic entity concept D) going concern concept 40. Double Entry System is used in which type of A) Cost B)Financial C) Management —_—D) All 41. XYZ 1D) conducts quarterly review of operations. It discovers that unrest in a south east Asian country may affect the supply of raw materials to it the next quarter. This is an example of: A) risk assessment B) control procedure C) supervision D) control environment 42. Debt Equity Ratio is 3:1 the amount of total assets Rs20 lac.current ratio is 15:1 and owned funds Rs.3 Lac What is the amount of current asset? A) Rs5 lac B) Rs3 lac C) Rs.12 lac D) none of the above. 43, When developing inventory cost models, which of the following are not included as costs to place an order? A) Phone 8) Taxes C) Clerical) Calculating quamtity to order AA. Net turnover can be calculated as: A) Sales plus returns inwards B) Purchases plus opening stock less returns outwards ) Gross profit plus cost of goods sold D) Sales less returns outwards 45, Which of the following is not an expense? A) Wages and Salaries, B) Dividend Payments ©) Stationery ——_D) Materials 46. Deferred Taxation is, A) Part of owners equity B) Fixed assest C) Fixed liabilities, D) None of these 47. BIS GY] RAT aa Hie RON) HMM TSH| CUTAA BHU ATTA Ma 7 A) 1 year B) 3 months A months D) 6 months 31D [32D [338 [348 [350 [36c [378 [38a [398 [404A 4.A [42.c [43.8 [44D [458 [4a [47.c98[NRB Special MCQ BOOK SmartG 48. A company is a going concern if A) its balance sheet shows a strong financial position 8) its income statement for the current year shows huge profit ©) there is no evidence that it will or will have to cease operations within foreseeable future. D) itis a public limited company 49. fa company issues bonus shares the debt equity ratio will A) Remain unatfected B) Will be affected C) Will improve D) none of the above. 50. Inventory errors are often caused by A) Secure stockrooms 8) Trained personnel ©) Authorized withdrawal of material D) Lack of audit capability 51. The only feasible purpose of financial management is A) Wealth Maximization B) Sales Maximization ) Profit Maximization D) Assets maximization 52. Tay Gur waehl pidacl Gel Hieacl PRIATS 2076 H) AIT HN} Heal Gaal WRITS SH? Avs B)2t 25 D) 26 53. A contra asset account has what type of balance? A) Debit B) Credit C) Contra D) All of the above 54, Paid rent Rs. 25,000 and outstanding rent Rs. 15,000. Rent expenses will be A) debited by Rs. 10,000 B) credited by Rs. 10,000 C) debited by Rs. 40,000 D) debited by Rs. 25,000 55. The fundamental objective of the audit of a company is to: A)Protect the interests of the minority shareholders B)Detect and prevent errors and fraud Assess the effectiveness of the company’s performance DjAttest to the credibility of the company’s accounts, 56. ale MIRTH! aX 25% G, SER Yoh B. 1 Els G, | aH (te vile) v. socis w we we lax oar fe Fo? We SATS 100 FT | A) Rs. 05 B) Rs. 25 CRs. 50 D) Rs. 25 57. 260. Which of the following is true for Inventory control? A) Economic order quantity has minimum total cost per order 8) Inventory carrying costs increases with quantity per order ©) Ordering cost decreases with low size D) All of the above 58. As per Nepal Rastra Bank Directives, where is revaluation gain or loss of assets recorded? A) Statement of Profit or Loss B) Statement of Other Comprehensive Income ©) Statement of Cash Flow D) Not recorded 59. 40m Gana tah Gen ofan Ee ues a? A) 2020 Magh 1 B) 2020 Falgun 1 ©) 2020 Magh 21 D} 2020 Shrawan 1 60. Revenue is normally recorded when. A) Cash is received 8) Goods are delivered to Customer ©) invoice is made D) production is completed 61. Assuming no safety stock, what is the re-order point (R) given an average daily demand of 50 units, a lead time of 10 days and 625 units on hand? A) 550 8) 500 ans 0) 450 62. Capital budgeting involves the A) Planning of Purchase B) Planning of Sales ) Planning of expenditure for assets D) lll of the above 43.c |49A [50D [51a |[52A [538 [54 55D [sac [57D 58.B |59A [60c [61.8 | 62CO4[NRB Special MCQ BOOK SmartG 63. aftien taal saa Gs Paral aM FGA? A)5% B) 55% 44% 0) 4% 64. Which of the following is NOT the responsibility of a company’s directors? A) Reporting to the shareholders on the accuracy of the accounts 8) Establishment of internal controls ) Keeping proper accounting records D) Supplying information and explanations to the auditor 65. Deferred Tax 4101 Sl? A) craps OT Geeks HUT Y PES orev Repl Seater Tal Ucad Ba oR LOH Oe B) eye CAST Geeks YOST Saale Glery Wapl chapel Wal SA EA GR LETH) HR ©) NERS HI Geet wap e HUE Oia Tel chabael Tal Gea ga Ge Lore) ep D) Ter wa 66, uaa WRENT oRaR Pare 2076 ary eta Aare eRe wie aah TeTTAT sa TRETS A)20 B) 27 29 67. gate sha stereo ora ete oe He ida esr Rated Ge A) onan art 8) shfamarat ard c) aaa art D) PRaRGTa art 68. The famous types of accounting doesnot include A) Financial Accounting _B) Cost Accounting ©) Artistic Accounting D) Auditing 69. What is the major difference between auditing and investigation? A) Sampling B) Checking errors C) Done for an objective D) all of the above 70. The proposal is accepted if the profitability index ismnore than A) One B) Zero ©) Three D) Five TL 72. ABC analysis is an inventory categorization method which consists in dividing items into three categories, A, B and C Which of the following is correct? A) consists of low value inventory items B) B consists of high value inventory items ©) C consists of high value inventory items D) A consists of high value inventory items 73. While preparing Cash Flow Statement, non-cash items and non-operati adjusted under _ items are not required to be A) Indirect meth B) Direct method Both a&b D) None of the above 74 for Prana arte wisdgs eo. RT A wT TS? Aas B)50 Qs p52 75. Accounting cycle does not include: A) Recording B)Decision making ) Classification —_D) Interpreting 76. Leasehold Land and Insurance Premium are...» A) Expenses, Assets —_B) Assets, Assets). Expenses, Expenses D) Assets, Expenses 77. Auditor shall report the accounts examined by him to A) shareholders, B) court ) Nepal Rastra Bank D) pul 78. What ratio can be used to inefficient buying habbits? ‘A) Gross Margin Ratio _B) Equity Multiplier C) Inventory Turnover Ratio D) Debt Ratio 79. For a motorcycle showroom, is an inventory. A) Furniture B) Motorcycle Q) Car D) Stationery 80. Banks and Financial Institutions have to prepare financial statements as per A) NRB Directive 4 B) NRB Directive 14 _C) NRB Directive 1 D) None 6c [64A |[65A [668 [67.0 [6c [69A |[70A [71 72.D Be [AA [758 [76D [7A [7c [79B [80a95|NRB Special MCQ BOOK SmartG 81. Government Account is... A) Profitable in nature 8) Non-profitable in nature ) Sometimes profitable D) sometimes a, sometimes 82. often of ‘UWA THAT debtor ZT TEE (insolvent) Wax STA | TX ATATTAT TH FAAS debtors TT eargyal Wat | TEN event cig HEH event UT? A) Adjusting B) Non-Adjusting ©) Serious. D) Operating 83. Salaries is an expense whereas unearned revenue is.. A) Income B) Revenue CO) Asset D) Liability 84. When was Institution of Internal Auditors established? A) 1921 AD B) 1931 AD Q 1941 AD D) 1951 AD 85. A ratio that compares investors’ and creditors’ stake in a company. A) Debt Ratio B) Debt to Equity Ratio —_C) Equity Ratio D) Investor Creditor Ratio 86. Buffer Stock AT& G5? A) sifectart sraxaenan war adh foe TRE | B) Pr aSaseng cfs Te RT TS | ©) both a and b D) Senens Wigal Ge feheare PAR TET | 87. Commercial banks have to prepare interim financial statements A) quarterly B) monthly O yearly D) should not prepare 88, (AH Hloaisen) ailifee wleas H..0, RH Hi BIA TS 2 A) 49 B) 56 Qs7 D)59 89. 291. One of the following is not the example of Materiality concept: A) Purchase of pencil recorded as an expense instead of including in stock B) Purchase of car for private use ©) Purchase of plant for business D) Purchase of building to extend the business 90. Wages earned is..0.0.- and marketable secutitiesis..... : A) assets, assets B) liabilities, assets C) revenue liabilities D) revenue, assets 91. Full form of ISACA in audit iS... A) Information Systems Audit and Control Association B) Internal Systems Audit and Control Association C) Institutional Systems Audit and Control Association D) Internal System and Control Activities 92. The DuPont Analysis uses the following ratios except: A) Profit Margin B) Debt Ratio ) Total Assets Turnover D) Financial Leverage 93. MRO goods in inventory management means. A) Machine Requisition and Order B) Maintenance, repair and operating supplies ) Material requisition order D) Maintenance, requisition and operating 94. car] alata) saey qteaa) chal Tal FA PRHeIG YP 7 A )Actuarial gain/loss 8) Gratuity Gain/Loss Q Provident Fund gain/loss D) Actual gain/loss 95. Aart RORe fief Re sraare H.A.G OHA s Hfa ol? A) 30 B) 36 4s 0) 49 96. All of the following are liabilities except A) Income Receivable __B) Notes Payable ) Wages Outstanding D) None 81.B [82a [83D [84c ase [36a [87A |8ac [892A [90D 91.4 [928 [93.8 [94A [95.C [96.496| NRB Special MCQ BOOK SmartGk 97. Which of the following provides information about the financial information's, obligations and activities on the economic entity that is intended for use primarily by external decision makers? A) Management accounting 8B) Financial accounting ) Tax accounting D) Environmental Accounting 98. Which one of the following is NOT a duty of the auditor? A) Duty to report to the company’s bankers B) Duty to report to the members ) Duty to sign the audit report D) Duty to report on any violation of law 99. Return on capital emplayed for a company will increase it ‘A) sales volume doesn't change but margins decrease, B) sales volume increases with no change in margins. C) sales volume decreases and margins decrease. D) sales volume decreases with no change in margins. 100. The formula of Reorder Level is A) Maximum Demand x Maximum lead time + Buffer stock B) Minimum Demand x Minimum Lead time © (Aoyya D) (2AOQ)* 97.B [98.4 [99D [100 A 1. Purchase of intangible assets comes under. A) Cash flow from operating acti B) Cash flow from investing activities C) Cash flow from financing activities D) Any of the above 2. qrehl Geer) oft unr Tera carla TF SRI Geeks TREE) w? A) 231 B) 221 gant D) 250 3. All of the form of Business Organizations except? A) Partnersh B) Sole Concern B) Limited Liability Partnership D) Unlimited Liabilities Companies 4. Transportation cost is.... Ss whereas bills receivables is .. A) expenses, assets 8) expenses, revenue ©) expenses, expenses Djexpenses, provisions 5. How long is the extemal auditor's term of office? A) Until the audit is complete 8) Until the financial statements are complete ) Until the next AGM D) Until the directors remove them 6. Dividends are the ----- of a company distributed amongst members in proportion to their shares. A) Divisible Profits 8B) Assets with Cash and Bank C) Reserve D) Undivisible Profits 7. Danger stock level means A) Minimum Level + ROQ/2 B) Average Usage x Minimum delivery time (for emergency) ) Minimum Level D) Minimum Level-ROO/2 8. Repayment of subordinated liabilities is. A) Cash flow from operating activities B) Cash flow from investing activities ©) Cash flow from financing activities D) Any of the above 9. oie aria cer fetta cava ts, 2076 Hieetae ar Tat et? A) SiTfFT 25, 2076 B) Sif 15, 2076 ©) si 24, 2076 D) sift 26, 2076 1B [2c [3D [4a [5c Joa [7B [ac fac97[NRB Special MCQ BOOK SmartG 10. The concept that recognizes the distinction between the receipt of cash and the right to receive the cash is called A)Acctual Concept —_—B) Cash Concept _—_C) Materiality Concept D) Full Disclosure Concept 11. Which account increases equity? A) Expenses B) Withdrawals C) Treasury Stock D) Revenues 12. Audit risk is composed of 3 factors. Which of the following is NOT one of those factors? A) Compliance risk B) Detection risk C) Control riskD) Inherent risk 13, There is deterioration in the management of work capital of XYZ L1D) What does it refer to? A) That capital employed has reduced B) That the profitability has gone up C) That sales has decreased D) That debtors collection period has increased 14. A document that records the status of a good held in stock is called A) store ledger B) Material requisition note C) Bin card D) Cost card 15, Banks have to record guarantees issued by them in A) Assets B) Liabilities C) Contingent Asset) Contingent Liabilit 16. soffe prdiatt cen faite Gears ty, 2076 Ta oratte caren afe afta RISTTS ? A) 3 months B) 4 months ) 6 months D) yearly 17. Realization concepts implies A) The receipts of the order B) The delivery of the goods C) The receipt of cash from customers D) None of these 18, Balance Sheet and Profit and Loss accounts are also called... A) Final Accounts B) Financial Accounts ) Cost Accounts) All of the above 19. Which should NOT be considered at the planning stage? A) The timing of the audit B) Analytical review C) Last year’s written representation letter D) Obtaining written representations 20. Quick ratio is 1.8:1, current ratio is 27:1 and current liabilities are Rs 60.000. Determine value of stock. A) Rs 54,000 B) Rs 60,000 C) Rs 1,62,000 D) None of the above 21.018 Wa BAe HEI Ateae sig SET (average) demand rate SEAT TTB Hed GA ae TESA? A) FOQ B) lead time C) annual holding cost D} ROP 22. Operating expenses are recorded in: A) Trading Account —_B) Profit and Loss Account, ©) Balance Sheet D) All of these 23, FPN GRIER Paha 2076 SHE Aaa HERTS & TT aE S | aH of fea ST TT a? AS BG a7 D9 24, Which accounting concept or principle states that the transactions of a business must be recorded separately from those of its owners or other businesses? A) materiality concept of accounting B) time period concept of accounting © matching principle of accounting D) business or economic entity concept of accounting 25. Which of the following item of revenue nature? ‘A) Dividends payable 8B) Rent incur C) Fee eamed D) Payment for building improvement 26. A major control available in a small company, which might not be feasible in a big company, is. ‘A) a wider segregation of duties. B) a voucher system. C) fewer transactions to process. D) the owner-manager’s personal interest and close relationship with personnel. 27. Debt-equily ratio is a sub-part of A) Short-term solvency ratio B) Long-term solvency ratio ©) Debtors turnaver ratio D) None of the above 1A [11.0 [12A [13D [14c [15D [16a [17.8 [18A [19.8 20A [21.8 [228 [23c [24d [25c [26D [27a98[NRB Special MCQ BOOK SmartG 28. Set up costs are analogous (Mea tairal/GeTA™) to which of the costs? A) shortage B) holding C) excess D) ordering 29. Any physical thing that has money value is: A) Intangible asset B) Fictitious asset ©) Goodwill D) Asset 30. SUN) GRIER Maret 2076 SHH VaR Reg |G HHT eaUH) ws | TaN cole faareaT RSA Gra BH? Ays 2) 6 q7 D9 31. The return of goods by a customer should be debited to? A) Return outward B) Return inward account C) Goods account —_D) Accounts receivable 32. The rent paid to landlord is credited to A) Landlord's account. B) Rent account. ) Cash account. _D) None of the above. 33. The use of an audit engagement letter is the best method of assuring the auditor will have which of the following? A) Auditor will obtain sufficient appropriate audit evidence. B) Management representation letter. ©) Access to all books, accounts and vouchers required for audit purpose D) Co-operation from other auditors 34, Current ratio is stated as a crude ratio because A) It measures only the quantity of current assets. C) Both a and b 8) It measures only the quality of current asset's D) Offerings dimension 35. The amount of purchase if Cost of goods sold is Rs. 80,700 Opening Inventory Rs5,800 Closing Inventory Rs.6,000 A) Rs. 80,500 B)Rs. 74,900 Rs. 74,700 D) Rs 80,900, 36. The balance of the petty cash is A) An expense B) An income C) An asset D) A liability 37. ROR ORleR Mat 2076 TS Vira aOReTS T aha eae w | AAT ple fear eT URI? AS 26 Q7 D8 38. Which of the following is not a book of prime or original entry? A) Sales daybook B) Purchase dayboo ©) Debtor's account D) Cashbook 39. In case of a debt becoming bad, the amount should be credited to A) Trade receivables account. B) Bad debts account. ) Cash account. D) Sales account. 40. No business or institution an eff ectively carry on its activities without the help of proper —- A) Audit B) Record and accounts C) neither Aor BD) both Ajand B) 41. Which ratio is considered as safe margin of solvency? A) Liquid ratio B) Quick ratio ©) Current ratio —_—_D) None of the above 42. Average Inventory = Rs. 12,000. Closing Inventory is Rs. 3,000 more than opening Inventory. The value of closing Inventory A) Rs. 12,000, 43. Fixed assets are ‘A) Keptin the business for use over a long time for earning income 8) Meant for resale ©) Meant for conversion into cash as quickly as possible D) All of the above 44, ROR GRIER ART 2076 TSH el HERA Sig Sas SIS GTATY aoa Fea Ge wa 2 AA B)6 Q7 D8 ) Rs. 24,000 ORs. 10500 D) Rs. 13,500. 2a.d [29D [30a [318 ]32c [33c [34a [35D [36c [37D 3a.c [39a [408 f4ai.c [42d [43a [44.099|NRB Special MCQ BOOK SmartGk 45. Which of the following are accounts? A) Journal and Ledger B) Journal and Trial Balance C) Ledger and Trial Balance 1D) None of these 46, Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes: A) A credit to the cash received account of Rs. 2,100. B) A credit to the Accounts receivable account of Rs. 2.100. CA debit to the cash account of Rs. 1,400. D) A debit to the Accounts receivable account of Rs. 1,400. 47. Which of the following is not a kind of audit? A) Statutory and private audit. B) Government and continuous audit. Q Continuous, final, Interim, Cash, Cost and Management audit D) None of these. A8, Determine Working capital turnover ratio if, Current assets is Rs 1,50,000, current liabilities is Rs 1,00,000 and Cost of goods sold is Rs 3,00,000. A) 5 times B) 6 times, Q3times D) 15 times 49. Goods purchased Rs. 1,00,000. Sales Rs. 90,000. Margin 20% on cost. Closing Inventory = A) Rs. 20,000 B) Rs. 10,000 C) Rs. 25,000 D) Rs 28,000 50. A new firm commenced business on Ist January, 2011 and purchased goods costing Rs. 90,000 during the year. A sum of Rs. 6,000 was spent on freight inwards. At the end of the year the cost of goods still unsold was Rs. 12,000. Sales during the year Rs. 1,20,000. What is the gross profit earned by the firm? A) Rs, 36,000 B) Rs. 30,000 ©) Rs. 42,000 D) Rs. 38,000 ROR GMa Perr 2076 TA AT ANAT ae Te HTS TAT abla aT TAT BA? Aya B)6 cto D8 51. GAAP 1 full form & G1? A) General Audit Accounting Practices B) Generally Accepted Auditing Principles C) Generally Accepted Accounting Principles D) Generally Applied Accounting Principles 52. Which financial statement represents the accounting equation: Assets = Liabilities + Owner's equity: A) Income Statement —_B) Statement of Cash flows C) Balance Sheet —_D) None 53. Before the work of audit is commenced, the auditor plans out the whole of audit work is called 4) Audit plan. B) Audit note. C) Audit risk. D) Audit programme 54, Determine Operating ratio, if operating expenses is Rs 60,000, Sales is Rs 9,40,000, Sales Retum is Rs 40,000 and Cost of net goods sold is Rs 6 60,000. A) 80% B) 15% ©) 25% D) 11% 55. If the profit is 25% of the cost price then it is A) 25% of the sales price B) 33% of the sales price ©) 20% of the sales price D) 15% of the sales price. 56. prepayment of insurance premium will appear in the Balance Sheet and in the Insurance Account respectively as: A) Aliability and a debit balance. B) An asset and a debit balance. ©) An asset and a credit balance. D) None of the above 57. Rp OREN MART 2076 TAK Ae SPR) Aywa Sy GTA Hie psy ara se? A3 BG 10 D8 58. Voucher relatesto_ A) cash receipt. B) cash payment C) credit transactions, D) all the above. 59. All the following items are classified as fundamental accounting assumptions except A) Consistency. B) Business entity Going conce.__D) Accrual 45A [46.8 [47.0 [488 [49.c [SOA [51.c [52c [53D [54a sc [6c [872A [58D [59.8100] NRB Special MCQ BOOK SmartGk 60. Which account is the odd one out? A) Office furniture & Equipment. B) Freehold land and Buildings C) Inventory of materials. D) Plant and Machinery. 61. Operating ratio is calculated by A) (Operating Cost / Gross sales) * 100 8) Operating Cost / Gross sales* 100 © (Operating cost / Net sales) * 100 D) None of the above 62. Which of the following is true for Inventory control? A) Economic order quantity has minimum total cost per order 8) Inventory carrying costs increases with quantity per order ©) Ordering cost decreases with lo size D) All of the above 63. Under-statement of closing work in progress in the period will A) Understate cost of goods manufactured in that period 8) Overstate current assets ©) Overstate gross profit from sales in that period D) Understate net income in that period 64. FRONT GRIER Fear 2076 SAA ae TPG deft Ue smart rane wt Ferhat eH? A) 30 B) 21 a10 D8 65. Mohan purchased goods for Rs.15,00,000 and sold 4/Sth of the goods amounting Rs.18,00,000 and met expenses amounting Rs. 2,50,000 during the year, 2015. He counted net profit as Rs. 350,000. Which of the accounting concept was followed by him? A) Entity. B) Periodicity. C) Matching D) Conservatism 66. The debts written off as bad, if recovered subsequently are A) Credited to Bad Debts Recovered Account B) Credited to Trade receivables Account. ) Debited to Profit and Loss Account D) None of the above 67. internal auditor is appointed by : A) the management. Bythe shareholders ©) the government. D) the statutory body, 68. If sales is Rs 10,00,000, sales returns is Rs 50,000, Profit Before Tax is Rs 2,00,000, Income tax is 40%, Net profit ratiois A) 12.63% B) 20.63% ©) 10% 1) 50% 69. Which product is usually bought on an ROP basis? A) textbooks B) wedding gifts sugar D) newspaper 70. Sales for the year ended 31st March, 2011 amounted to Rs. 10,00,000. Sales included goods sold to Mr. A for Rs, 50,000 at a profit of 20% on cost. Such goods are still ing in the godown at the buyer's risk. Therefore, such goods should be treated as part of A) Sales B) Closing Inventory ©) Goods in transit D) Sales return, 71, BRP] PIG MART 2076 THIGH Aurel wep) See Hes GTA ale FRET eT TA? 43 BS Q10 D8 72. A businessman purchased goods for Rs. 25,00,000 and sold 80% of such goods during the accounting year ended 31st March, 2015. The market value of the remaining goods was Rs. 4,00,000. He valued the closing Inventory at cost. He violated the concept of A) Money measurement. _B) Conservatism Cost D) Periodicity 73. Prepaid salary acCOUNtis....m-nmm account A) Personal B) Real ©) Nominal D) None of the above oc [o1.c [o2d fod [ora [osc [oa |ora [ona [69.c 704 [71.4 [728 |73A