SL NOQuestion option 1 option 2 option 3 option 4 answer

Management Discussion &

1 Which will not be part of the annual report of a comInternal Auditor Report Statement of changes in equity Cash Flow Statement Analysis 1
International Final Report International Financial
2 IFRS means Internal Finance Reporting & Statements International Finance Reporting Standards Standards Reporting Standards 4
The sources of regulation which comprise the
3 regulatory framework for financial reporting Accounting Standards Legislation Stock exchange regulations All of these 4
i l d
Financial Statements format is given in which
4 schedule of Companies Act, 2013? Schedule I Schedule II Schedule III Schedule IV 3
Generally accepted accounting Generally accepted
5 The abbreviation "GAAP" stands for: Globally accepted accounting principles Globally accepted accounting practice principles accounting practice 3
Which of the following is not an accounting
6 concept? Matching Concept Dual Aspect Concept True and Fair Concept Going Concern Concept 3

7 What is another name for outstanding expenses? Debit Loans Credit Accruals 4
Which of the following is the accounting Assets = Capital +
8 equation? Assets = Capital - Liabilities Capital = Assets + Liabilities Liabilities = Capital + Assets Liabilities 4
Are assets debited or credited when they
9 increase? Debited Credited Both can be done None 1
Which of the following options is not recorded in
10 the Balance sheet? Cash Rent Expenses Building Goodwill 2
The long-term assets that have no physical
11 existence but are rights that have value are Investments Intangible assets Fixed assets None of these 2
k
Plant & machinery bought Reputation of firm for good
12 Which of the item would be included as Goodwill? Value of employee skill & experience quality Cost of purchase brand 3
The reason for balancesheet to be always balance
Assets cannot be bought without cash
13 is Every transaction has two offsetting effects. It is drawn up by an accountant It is called balancesheet 2
Which among the following is FALSE in relation to Explain how the Capital of the company is Indicate the strength of the Is drawn up at specific
14 Balancesheet? invested Shows the assets and liabilities of the compny company's profit margin point of time 3
Which one of these items won't be included in Amounts owed to trade Corporation tax due in the
15 Current Liabilities? Obselete or slow moving inventories An accrual for likely expenses creditors next 12 months 1
The two main parts of the equity half of the Share capital and retained Long term liabilities and
16 Balancesheet are Non current assets and current assets Current Assets and Current Liabilities profits shares 3
ABC Ltd. has current assets of Rs. 500 and non
current assets of rs. 1500.It has current liabilities
of Rs.300 and non current liabilities of Rs.800.
17 What is the amount of ABC's owner's equity 850 800 950 900 4

18 Excess of debit in the profit and loss account is kno Profit Loss Expense Income 2
Which of the following items do not come under,
19 reserves & surplus __________ . capital redemption reserve general reserve provident fund sinking fund 4
According to the prescribed order of assets in a
20 Company’s Balance Sheet which the asset should Non-current Assets Current Assets Current Investments Loans and Advances 1
b h
Financial fi f ll? are summarised statements
statements Profitability and Financial Operating and
21 of accounting data that provide information of the Current Assets and Quick Assets Debt and Equity Position Non-operating Income 3
b i b t
While preparing the Balance Sheet of a company,
22 6% debentures is shown under which head? Share capital Long term borrowings Short term borrowings None of these 2
Operating Revenues minus Revenues minus Expenses
Net income equals Total Revenues minus Cost of Goods Sold Total Revenues minus Total Expenses 2
23 Operating Expenses Plus Income Taxes
Current Assets minus Current Net capital invested in
Net working capital means Total Assets Minus Total Liabilies Current Liabilities plus Capital 3
24 Liabilities business
A current asset that can be transferred into cash
Cash asset Operating asset Intangible asset Cash equivalent 4
25 within three months is known as
The concept of separate entity is applicable to
Sole Proprietorship Partnership Corporation All of these 4
26 which of following types of businesses?
Which of the following is not an internal user of
Creditor Controller Treasurer Department manger 1
27 management information?

Accounting of claims against the company only

Which of these accounting policy is inconsistent when they are actually settled by the Accounting Valuation of inventory at lower Accounting of all
Valuation of investment at this peak value 3
with accounting concept of conservatism of claims by the company as and when they of cost or not realisable value anticipated gains or profit
arises
28
The elements of financial statements which relate Assets, liabilities, income and Income, expenses and
Assets, liabilities and equity Income and expenses 1
29 to financial position are: expenses equity
How many number of accounting standard have
38 32 42 37 2
30 been issued by ICAI
The policy of "Anticipate no profit and provide for
Disclose materiality Conservatism consistency 3
31 all possible losses" arises due to convention of
As per the accrual concept of accounting, any
when profit is computed when balance sheet is prepared when cash is received or paid when transaction occurs 4
32 financial or business transaction should be
Which of the following is not required to be
Cash Flow Statement Balancesheet Profit & Loss Statement Fund Flow Statement 4
33 prepared under the Companies Act
The chairman’s statement in a company’s annual analyses the financial results forecasts the share price
is subject to external audit. comments on current and future performance. 2
34 report and accounts: for the year. for the subsequent year.
A trader purchases goods for Rs. 2500000, of these
70% of goods were sold during the year. At the
end of 31st December 2009, the market value of
such goods were Rs. 500000. But the trader Money measurement Conservatism Consistency None of these 2
recorded in his books for Rs. 750000. Which of the
35 following concept is violated. ed from liabilities it
ill b lt ?
As per Schedule III, Part I of the Companies Act,
2013 ’Calls-in-arrears’ will be presented under
Current Liabilities Contingent Liabilities Reserves and Surplus Shareholder's Funds 4
which of the following head/sub-head, in the
36 Balance Sheet of a company?
Financial Statements reflect a combination of
Personal Judgements Postulates Accounting Assumptions Accounting principles 4
37 recorded facts, personal judgements and ______
According to which Schedule of the Indian
Companies Act, 2013, Indian companies have to Schedule II Schedule I Schedule III Schedule IV 3
38 prepare Balance Sheet:
39 Deferred Tax Asset is Tax Credit Tax Payable Tax Penalty Tax Liability 1
What is the difference between the Gross Block
Depreciation Expense Accumulated Depreciation Annual Depreciation Amortisation 2
40 and Net Block?
Financial Statement Format is given in which
Schedule I Schedule II Schedule III Schedule IV 3
41 schedule of Companies Act, 2013?
Interest component of financial
What is considered in the finance costs? Interest cost on borrowed funds Commitment fees on bank loan All of these 4
42 lease
If assets decrease by Rs.25,000 and liabilities
Increase by 5,000 Decrease by 45,000 Increase by 20,000 Decrease by 25,000 2
43 increase by Rs.20,000, Owner's Equity..
Which expense reported on the statement of
Depreciation expense Interest Expense Employee expense Purchase of raw materials 1
44 profit and loss is an estimate?
What items will not be considred in other
Interest income Revenue from Sale of scraps Dividend Income Rental Income 2
45 income?
46 Operating profit is also known as EBIT PBT Net Profit Gross Profit 1
What will not be considered in comprehensive Gains/Losses on hedging
Changes in Revaluation surplus Actuarial gains/losses on defined benefit plans Litigation Settlement 4
47 income? instruments in a cash flow
Computer software bought for A machine bought for use
Which of the following items qualifies as property, A machine bought for use in more than one
A machine bought for resale to a customer use in more than one during a single accounting 2
plant and equipment? accounting period
48 accounting period period
Which of the following would not be included in Interest cost on funds borrowed
Delivery Expenses Refundable Duty paid Installation charges 2
49 the cost of an item of property, plant and for the asset
 Which of the following would generally not be An asset intended for consumption within the An asset held for long-term use An asset held for the
A cash equivalent 3
classified as a current asset? entity's normal operating cycle within the entity purpose of being traded
50