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Updated MCQ Booklet SO Part-II
Updated MCQ Booklet SO Part-II
(MCQs)
For
A. Advance Accounting
Q.1 Disclosure of which ratio is not required as per new Schedule III of
Companies Act, 2013.
Q5. Goods sent by Head office to branch either at cost plus profit or
at_________________.
Q9. From the following ratios which ratio is covered under Activity Ratio?
(a) Debt-Equity Ratio (b) Working Capital Ratio
(c)Interest Coverage Ratio (d) Inventory Turnover Ratio
Q10. From the following which ratio is not covered under Leverage Ratio?
(a) Debt-Equity (b) Return on Equity
(c) Interest Coverage Ratio (d)Debt to Assets Ratio
Q12 In departmental accounting, where separate books are kept for each
department, know as:-
a) Independent Accounting
b) Columnar Accounting
c) Consolidated Accounting
d) Advanced Accounting
Q14. Branch which does not maintain its own books of accounts is_______.
a) Independent Branch
b) Local Branch
c) Foreign Branch
d) Dependent Branch
Q15. All expenses such as rent, salary etc are paid by H.O. in case of ____.
a) Independent Branch
b) Dependent Branch
c) Local Branch
d) Foreign Branch
Q19.Positive difference between opening net worth &closing net worth is:
a) Capital Balance
b) Cash Balance
c) Profit
d) Loss
Q20.In single entry system a statement of affairs is just like :-
a) Balance Sheet
b) Profit & Loss Statement
c) Cash Book
d) Trading Account
Q27. Old furniture purchased and Rs. 1000 spent on its repair before use,
Rs. 1000 should be debited to:-
a) Repair Account
b) Furniture Account
c) Labour Paid account
d) None of the Above
Q33. Bank charges Rs. 5000 not recorded, adjustment in cash book by:-
a) Credit in cash book
b) Debit in Cash Book
c) No effect in cash book
d) Add it in cash Balance
Q54.Deprication is
a) Deferred revenue expenditure
b) Capital Expenditure
c) Revenue Expenditure
d) None of the above
Q59. If books of accounts kept under Single Entry System, opening stock
is ascertained by preparing:-
a) Opening Stock Account
b) Stock Register
c) Memorandum Trading Account
d) Opening Statement of Affairs
a) 1:1
b) 2:1
c) 1:2
d) 1:3
a) Decrease
b) Increase
c) No change
d) None of the above
Q69. If Current Ratio is 2:1, after purchase of goods on credit ratio will
a) Decrease
b) Increase
c) No change
d) None of the above
Q75. Which of the following transaction will reduce total assets and
liability?
a) Share Capital
b) Current Liability
c) Long term borrowing
d) Reserve & Surplus
a) Turnover Ratio
b) Solvency Ratio
c) Profitability Ratio
d) Coverage Ratio
Q78. Return on Investment is a __________
a) Turnover Ratio
b) Solvency Ratio
c) Profitability Ratio
d) Coverage Ratio
a) PAT/Share Capital
b) DPS/EPS
c) Pref. Dividend /PAT
d) EPS/DPS
a) Budget
b) Direct cost
c) Unit cost
d) Cost sheet
Q93. Which of the following is written off every year from the profit of
business?
a) Preliminary Expenses
b) Goodwill
c) Trademark
d) Intangible Assets
a) General reserve
b) Revenue reserve
c) Security premium reserve
d) None of the above
Q99. The account that records expenses, income, loss & profit is called__
a) Personal Account
b) Nominal Account
c) Real Account
d) None of the above
A) Payment of Dividends
A) Issue of Debenture
Q9.While calculating cash flow from operating activities, which will be added ?
(a) Increase in Stock
(b) Increase in Creditors
(c) Decrease in Bills Payable
(d) Increase in Debtors
Q.10. Where will you show purchase of goodwill in Cash Flow Statement:
(a) Cash Flow from Operating Activities
(b) Cash Flow from Investing Activities
(c) Cash Flow from Financing Activities
(d) Cash Equivalent
A) Operating Activities
B) Financing Activities
C) Investing Activities
a) Both A and B
b) Both A and C
c) Both B and C
d) A, B, C
a) Only A
b) Only B
c) Both B and C
d) Only D
Q21. Cash flow statement is based upon _________ while Funds Flow Statement
recognizes _______.
Q25. Which of the following are added to net profit after tax and extraordinary
items to reach to net profit before tax and extraordinary items?
a) Both A and B
b) Both A and C
c) Both B and C
d) A, B, C and D
Q26. Which of the following statements represent example of cash flow from
investing activities?
Q27. In case of other enterprises cash flow arising from interest paid should be
classified as cash flow from ________ while dividends and interest received
should be stated as cash flow from ____.
Q28. When a fixed asset is bought as hire purchase, interest element is classified
under ______ and loan element is classified under________.
a) A, B, C
b) B, C, D
c) C, D, A
d) None of the above
a) A and C
b) A and D
c) A, B, C and D
d) None of the above
Q34. As per Indian Accounting standard IND AS7, provision for taxation should be
treated as:-
a) As a current liability
b) As an appropriation of profits
c) Either a or b
d) None of the above
Q35. Out of the following statements, which statement does not imply the item
that has to be shown under the application of fund flow
Q36. Out of the following options, what can be called the sources of funds
Q37. Which of the following statements help in describing the funds flow analysis
in the most suitable manner
B. accounting period
C. going concern
D. all of these
B. the suppliers
C. both
D. none
Q42. A statement of change in financial position typically would NOT disclose the
effect of
Q43.Which of the following does not result in an inflow of funds in case of fund
flow statement?
(A) Issue of equity share capital
(B) Premium received on issue of shares/ debentures
(C) Sale of investments
(D) Cash received from debtors
Q44.Assertion
(A) Funds are not related to working capital.
Reason (R):
The flow of funds takes place whenever there is a change in the funds.
Select the correct answer from the following
Q45. If provision for taxation is treated as a current liability, then payment of tax is
(A) An application of funds
(B) A source of funds
(C) No flow of funds
(D) None of the above
Q47. In the fund flow statement, the flow of fund will occur when a transaction is
happened between:
Q49. When current ratio is 2 : 1 and if equal increase in current assets and current
liabilities would result in
Q50.Net worth means paid up share capital and reserve & surplus (i.e.
shareholders equity)
Return on equity = profit after tax/net worth
Working capital turnover ratio = sales/net working capital
Total cost of production is more than net sales realisation (NSR) at
breakeven point
a) Easy form
b) Convenient and rational groups
c) Comparable form
d) All of the above
a) Cross-sectional Analysis
b) Time Series Analysis
c) Static Analysis
d) External Analysis
Q54.The area of interest for lenders while analyzing financial statements will be
a) Liquidity alone
b) Profitability and Liquidity
c) Solvency, Profitability, and Liquidity
d) None of these
Q56. Comparison of actual ratios of one period with those of earlier periods for the
same enterpriseis known as
a) Cross-sectional analysis
b) Time-series Analysis
c) Inter-firm Analysis
d) None of these
Q58. Cash receipt received from the sales fixed assets are recorded under the
head of:
Q59. Current asset that can be transferred into cash within three months is known
as:
Q60. Which statement shows the flow of cash and cash equivalents during the
financial period?
a) Ratio Analysis
b) Average Analysis
c) Trend Analysis
d) All of the above
Question 63.The most commonly used tools for financial analysis are:
(a) Comparative Statements
(b) Common-size Statement
(c) Accounting Ratios
(d) All the above
a) 50
b) 100
c) 200
d) No limit
a) Cash Receipts
b) Purchase of Assets
c) Redemption of debentures
d) Distribution of Dividend
a) Authorised Capital
b) Called up capital
c) Uncalled Capital
d) Reserve Capital
a) ABC Analysis
b) FSN Analysis
c) GOLF Analysis
d) FSND Analysis
Q81. Which section of the Companies Act requires that Balance Sheet is to
be prepared in the prescribed form?
a) Sec 129
b) Sec 148
c) Sec 128
d) Sec 198
a) C&AG India
b) PAG of the state
c) Management of the PSU
d) Central/State Government
a) Horizontal form
b) Vertical form
c) Either Horizontal form or Vertical form
d) Neither of above
e) Share Capital
f) Current Liability
g) Long term borrowing
h) Reserve & Surplus
a) Prepaid Rent
b) Outstanding Rent
c) Rent as security
d) Rent Paid
a) Operating efficiency
b) Assets use efficiency
c) Financial efficiency
d) None of the above
a) Trademarks
b) Patents
c) Technical Expertise
d) Preliminary Expenses
Q96. Stock is shown at cost or market prices whichever is less, due to:-
a) Accounting Concept
b) Accounting Principle
c) Accounting Conventions
d) Accounting Standards
a) Increase
b) Decrease
c) Stay same
d) Get closer to net profit
a) Solvency
b) Insolvency
c) Bankruptcy
d) Wining up
Q99.Capital Employed is:-
a) Total Assets-Current Liability
b) Non Current Assets+ Working Capital
c) Both a & b
d) None of the above
C. COST Accounting
Q1.The following cost will remain same whatever the level of activity.
a) Incremental cost
b) Sunk Cost
c) Fixed Cost
d) Both b & C
Q2. The cost of property, plant & equipment at the price paid originally for
them is ___________________
a) Replacement cost
b) Historical Cost
c) Implicit cost
d) Fixed Cost
Q9.Scrap is ______________.
a) Residue Material
b) Wastage of Material
c) Surplus Material
d) Abnormal loss of material
Q12. A document which provides the detailed cost centre and cost units
a) Bill of Quantity
b) Profit & Loss statement
c) Cost Sheet
d) Quantity Purchased register
Q26.Rent of building is
a) Indirect overhead
b) Direct Overhead
c) Fixed overhead
d) Capital Expenditure
Q33. Which of the following statements related to Contribution Analysis are ture?
a) In absorption costing, cost is divided into three major parts while in marginal
costing cost is divided into two main parts.
b) IN absorption costing period is important and in marginal costing product is
important.
c) Both a and b
d) None of the above
Q37. In context of net operating profit, which of the following statements are true?
a) If all costs are variable, the amount of profit obtained in marginal costing and
absorption costing will be same.
b) If the volume of sales and output is equal in a period, profit will be same in
absorption costing and marginal costing.
c) Both a and b
d) None of the above
Q38. If sales is less than production and there is no opening stock, it suggests
there is closing stock. In such a scenario, profit under marginal costing will be less
than the one shown by absorption costing.
a) True
b) False
Q39. If the marginal cost is _________ buying price, additional requirement of the
component should be met by making rather than buying.
a) Equal to
b) More than
c) Less than
d) None of the above.
Q40. Which of the following models is used to calculate the timing of the inventory
order?
a) Cost of ordering
b) Set up cost
c) Inventory carrying cost
d) Cost of shortages
Q47. The time period between placing an order its receipt in stock is known as
a) Lead time
b) Carrying time
c) Shortage time
d) Over time
Q52. The net present value of a proposed investment is negative; therefore, the
discount rate used must be
a) Greater than the project s internal rate of return.
b) Less than the project s internal rate of return.
c) Greater than the firm s cost of equity.
d) Less than the risk-free rate.
Q54. When using the net present value method for capital budgeting analysis, the
required rate of return is called all of the following except the
a) Risk-free rate.
b) Cost of capital.
c) Discount rate.
d) Cutoff rate.
Q56. A company wants to use discounted cash flow techniques when analyzing its
capital investment projects. The company is aware of the uncertainty involved in
estimating future cash flows. A simple method some companies employ to adjust
for the uncertainty inherent in their estimates is to:-
Q58. All of the following are the rates used in net present value analysis except for
the
a) Cost of capital.
b) Hurdle rate.
c) Discount rate.
d) Accounting rate of return.
Q59. Payback period____________________?
a) (2D*S/h)^1/2
b) (DS*/h)^1/2
c) (D*S/2h)^1/2
d) (D*S/3h)^1/2
a) incoming freight
b) storage costs
c) insurance
d) spoilage
Q64. Which of the following can be a criterion for the acceptance of a project?
Q65 Which of the following activities is true about the cost variance under the
Standard Costing System?
a) Cost variance is the difference between the standard cost and the
actual cost
b) Cost variance is the difference between the standard cost and the budgeted
cost
c) Cost variance is the difference between the standard cost and the marginal
cost
d) Cost variance is the difference between the actual cost and the marginal
cost
Q66.Which of the following is the audit fees a part of under the Standard Costing
System?
Q67.Which of the following parties are responsible for material price variances?
a) Production supervisors
b) Purchasing managers
c) Production schedules
d) None of the above
Q75.Make or Buy decision is made by comparing cost with the outside purchase
price.
a) Fixed cost
b) Variable cost
c) Sunk Cost
d) Joint Cost
Q 76.Under which of the following method of budgeting, all activities are re-
evaluated each time a budget is set
(A) Materials budget
(B) Zero base budgeting
(C) Sales budget
(D) Overheads budget
Q 77. A budget that gives a summary of all the functional budgets and budgeted
statement of profit and loss is called
(A) Flexible budget
(B) Master budget
(C) Performance budget
(D) Zero base budgets
Q78. While preparing the cash budget, which of the following items would not be
included
(A) Interest paid to debenture holders
(B) Salaries and wages
(C) Bonus shares issued
(D) Income-tax paid
Q79. When demand forecasting is difficult, the budget which is prepared:
(A) Sales Budget
(B) Production Budget
(C) Financial Budget
(D) Flexible Budget
Q80.The quantity required to have desired profit is …………………
(a) (Fixed cost + desired profit ) / contribution per unit
(b) (Fixed cost – desired profit ) / contribution per unit
(c) (Fixed cost +desired profit ) * contribution per unit
(d) Fixed cost / (desired profit +contribution per unit)
Q83.Higher the ratio, the more favourable it is, doesn’t stand true for
a) Prime cost
b) Works cost
c) Cost of sales
d) Cost of production
Q87. While evaluating deviation of actual and standard cost, technique used is
a) Regression analysis
b) Variance analysis
c) Linear progression
d) Trend analysis
a) Notional Cost
b) Real Cost
c) Normal Cost
d) Variable cost
Q92. The cost which is to be incurred even when business unit is closed is a__
a) Imputed cost
b) Sunk cost
c) Historical cost
d) Shutdown cost
a) Major Expense
b) Chargeable expenses
c) Overhead expenses
d) Sundry expenses
Q94. Warehouse rent is a part of__________
a) Office overhead
b) Selling overhead
c) Distribution overhead
d) Production overhead
a) Prime cost
b) Works cost
c) Cost of production
d) Cost of sales
a) Material cost
b) Labour cost
c) Prime cost
d) Direct expense
a) Over production
b) Over capitalisation
c) Soundness of the business
d) Under capitalisation
Q99. If fixed cost decrease while variable cost per unit remains same, the new
B.E.P will be ___________ than old B.E.P
a) Lower
b) Higher
c) Unchanged
d) Not able to determine
Q100. If fixed cost decrease while variable cost per unit remains same, the new
contribution margin will be ___________ than old contribution margin.
a) Lower
b) Higher
c) Unchanged
d) Not able to determine
D. Additional MCQs
Q1: The art of recording all business transactions in a systematic manner in
a set of books is called-
(a) Accounting
(b) *Book – keeping*
(c) Ledger
(d) None of these.
Q2: Cash, goods or assets invested by the proprietor in the business for
earning profit is called-
(a) Current Assets
(b) *Capital*
(c) Fixed assets
(d) None of these
Q3: The person, firm or institution who does not pay the price in cash for the
goods purchased or the services received is called-
(a) Creditor
(b) Proprietor
(c) *Debtor*
(d)Vender
Q4: …………… represents the excess of assets over liabilities.
(a) *Capital*
(b) Bank Balance
(c) Closing stock
(d) Reserve & surplus
Q5: The amount drawn by businessmen for his personal use is-
(a) Capital
(b) *Drawing*
(c) current assets
(d) Loss.
Q7: The entry which affects cash and bank column of a triple column cash –
book is known as –
(a) Compound entry
(b) *Contra entry*
(c) Journal entry
(d) Control entry
Q26: When a single journal entry is passed for two transactions of same
nature on same date, such an entry is called?
(a) Contra entry
(b) *Compound entry*
(c) Mixed entry
(d) Combined entry
Q30: The balance on the debit side of the bank column of cash book
indicates?
(a) The total amount has drawn from the bank
(b) *Cash at bank*
(c) The total amount overdraft in the bank
(d) Cash deposit in to bank
Q33: Which of the following items is not a reason for difference between
bank balance as per cash book and pass book?
(a) Dishonoured check
(b) Cheques deposited but not yet cleared
(c) *Credit sales to customer*
(d) Cheques issued but not yet presented for payment
Q35: Of the two sides of Trial balance does not tally, which Account is
opened –
(a) *Suspense Account*
(b) Personal Account
(c) Real Account
(d) None of the above
Q47: On dishonour of a discounted bill whom does the bank look for
payment
(a) *Drawer*
(b) Drawee
(c) Endorser
(d) Payee
Q50: If the drawer is in need of money and cannot wait till due date and
receive the money form bank is called?
(a) Endorsement of bill
(b) *Discounting of bill*
(c) Transfer of bill
(d) Dishonour of bill
Q61: When full amount is due on any call but it is not received, then the
short fall is debited to :
(a) Calls-in-advance
(b) *Calls-in-arrear*
(c) Share Capital
(d) Suspense Account
Q64: Securities Premium is shown under which head in the Balance Sheet
?
(a) *Reserve and Surplus*
(b) Miscellaneous Expenditure
(c) Current Liabilities
(d) Share Capital
Q66: When shares are forfeited, the Share Capital Account is debited with:
(a) Nominal value of Shares
(b) Market value of Shares
(c) *Called-up value of Shares*
(d) Paid-up value of Shares
Q67: If the loss on reissue of shares is less than the amount forfeited, the
‘surplus’ or profit is transferred to :
(a) *Capital Reserve*
(b) Revenue Reserve
(c) Profit & Loss A/c
(d) None of these
Q76: Which of the following should be deducted from the called-up capital
to find out paid-up capital:
(a) Calls-in-advance
(b) *Calls-in-arrear*
(c) Share forfeiture
(d) Discount on issue of shares
Q93: The reserve which is created for a particular purpose and which is a
charge against revenue is called:
(a) Capital Reserve
(b) General Reserve
(c) Secret Reserve
(d) *Specific Reserve*
Q95: The profit and loss disclosed by the accounts of a company is:
(a) Transferred to share capital account
(b) Shown under the head of ‘Current liabilities’ and provisions
(c) *Shown under the head ‘Reserves and Surplus*
(d) None of these
Q96: Debit Balance of Profit & Loss Statement will be shown on:
(a) Assets Side of Balance Sheet
(b) Liabilities Side of Balance Sheet
(c) Under the head Reserve & Surplus
(d) *Under the head Reserves and Surplus as a negative item*
Q99: According to which part of Schedule III of the Indian Companies Act,
2013, Indian companies have to prepare Balance Sheet:
(a) *Part 1*
(b) Part 2
(c) Part 3
(d) Part 4
Q100: Which of the following assets is not shown under the head ‘Fixed
Asset’ in the Balance Sheet ?
(a) Goodwill
(b) *Investments*
(c) Buildings
(d) Vehicle
Q101: Amount set aside to meet losses due to bad debts is called:
(a) Reserve
(b) *Provision*
(c) Liability
(d) contingent liabilities
Q102: The most commonly used tools for financial analysis are:
(a) Comparative Statements
(b) Common-size Statement
(c) Accounting Ratios
(d) *All the above*
Q104: Which of these are not the method of financial statement analysis?
(a) Ratio Analysis
(b) Comparative Analysis
(c) Trend Analysis
(d) *Capitalisation Method*
Q114: Ratio based on figures of profit & loss as well a the Balance sheet
are:
(a) Profitability Ratios
(b) Operation Ratio
(c) Liquidity Ratio
(d) *Composite Ratio*
Q117: The satisfactory ratio between internal and external equity is. :
(a) 1 : 2
(b) *2 : 1*
(c) 3 : 1
(d) 4 : 1
Q118: Which of the following transactions will improve the current ratio?
(a) Purchase of good for cash
(b) Cash received from customers
(c) *Payment of creditors*
(d) Credit purchase of goods
Q120: If net profit is ₹ 35,000 after writing off good will ₹ 6,000 and loss on
sale of furniture ₹ 1,000, cash flow from operating activities will be :
(a) ₹ 35,000
(b) *₹ 42,000*
(c) ₹ 29,000
(d) ₹ 28,000
Q123: While calculating operating profit which will be added to net profit:
(a) Interest received
(b) Profit on sale of Asset
(c) *Increase in General Reserve*
(d) Refund of Tax
Q124: While calculating cash flow from operating nativities which will be
deducted?
(a) Increase in Creditors
(b) *Increase in Debtors*
(c) Decrease in Debtors
(d) Decrease in Prepaid Expenses
Q125: While calculating cash flow from operating activities, which will be
added ?
(a) Increase in Stock
(b) *Increase in Creditors*
(c) Decrease in Bills Payable
(d) Increase in Debtors
Q128: Where will you show purchase of goodwill in Cash Flow Statement:
(a) Cash Flow from Operating Activities
(b) *Cash Flow from Investing Activities*
(c) Cash Flow from Financing Activities
(d) Cash Equivalent
Q129: Interest received by a finance company is classified under which kind
of activity while preparing a Cash Flow Statement?
(a) *Cash Flow from Operating Activities*
(b) Investing Activities
(c) Financing Activities
(d) Cash Equivalent
Q138: At the balance sheet date, the balance on the Accumulated Provision
for Depreciation Account is
(a) Transferred to Depreciation Account
(b) Transferred to the Asset Account
(c) Transferred to Profit and Loss Account
(d) *Simply deducted from the gross value of asset in the
Balance Sheet*
Q153: Material with lowest price is issued first” this sentence is suitable to
a. LIFO
b. HIFO
c. FIFO
d. NIFO
Q154: When an employee is given wages according to units he produces,
then _________ is given to him.
a. Time Card
b. Piece Work Card
c. Job Card
d. Both Piece Work Card and Job Card
Q156: Suppose the total cost of the product is ` 5,000 and profit on Selling
price is 20%, what will be the profit on cost price ?
(a) 1,000
(b) 750
(c) 1,500
(d) 1,250
Q157: Which of the following is NOT necessary for the purpose of regulating
the Profession of Auditing in India ?
(a) The Companies Act, 1956
(b) The Institute of Chartered Accountants of India, 1949
(c) Comptroller and Auditing General of India
(d) Income Tax Act, 1961
Q159: Which one of the following is NOT a relevant voucher for vouching of
cash received on issue of shares ?
(a) Cash book and Pass book
(b) Share Application and Allotment Shares
(c) Board of Director’s resolution
(d) Agreements with the financial institutions for borrowing loans.
Q161: Which one of the following is NOT correct with regards to the “Rights of
An Auditor”?
(a) Right to receive remuneration.
(b) Right to be indemnified.
(c) Right to attend the Board of Director’s meeting
(d) Right to get “Expert advice”.
Q168. Statement-I : Interest & Dividend are received from investments. Naturally,
they should be classified as cash inflows from investing activities. (In case of other
enterprise)
Statement-II : Examples of Non-cash transactions are – (i) Purchase of assets by
issue of shares (ii) Conversion of debentures into shares
(a) Both the statements are correct.
(b) Both the statements are incorrect.
(c) Statement I is correct & Statement II is incorrect.
(d) Statement I is incorrect & Statement II is correct.
Q169. What is the full form of IFRS?
(a) International Fiscal Report Statement
(b) International Financial Reporting Statement
(c) International Financial Reporting Standard
(d) International Fiscal Recording Statement
Q170. What is the correct sequence of following stages in accounting process? 1.
Income statement 2. Trial balance 3. Journalizing 4. Posting 5. Position statement
6. Balancing
(a) 2,5,1,3,6,4
(b) 3,6,4,2,5,1
(c) 3,2,1,6,4,5
(d) 3,4,6,2,1,5
Q171.What is the full form of GAAP ?
(a) Generally Accepted Accounting Procedure
(b) Generally Accepted Accountant Procedure
(c) Generally Accepted Accounting Principles
(d) Generally Accepted Accountant Principles
Q172.The order in which various assets and liabilities are shown either in order of
liquidity or in the order of permanency in the balance-sheet is termed as
(a) Classification
(b) Grouping
(c) Marshalling
(d) Tabulation
Q173.Which one of the following is not the type of standard ?
(a) Ideal Standard
(b) Basic Standard
(c) High Standard
(d) Current or Expected Actual Standards
Q174. If contractor had to deposit some amount on accepting the contract i.e.
Tender Deposit is shown
(a) Contract account
(b) Balance sheet
(c) P & L account
(d) Contractee account
Q177. The balance of the goods sent on the Consignment Accounts should be
shown on the _________.
(a) Credit Side of the Trading Account
(b) Debit Side of the Profit and Loss Account
(c) Debit Side of the Trading Account
(d) Credit Side of the Profit and Loss Account
Q178.Depreciation is calculated on machinery purchased by company in
(a) Pre incorporation
(b) Post incorporation
(c) Sales ratio
(d) Time ratio
Q183. According to the rules of debit and credit for balance sheet accounts?
(a) Increase in assets, liabilities and owner equity recorded by debit
(b) Decrease in asset and liability are recorded by credit
(c) Increase in asset and owner’s equity are recorded by debit
(d) *Decrease in liability and owner’s equity are recorded by debit*
A.*Personal account*
B. Real account
C. Nominal account
D. Representative personal account
Q189. In which of the following method of sales, if the purchaser can’t pay the
amount of instalment, the vender can get the assets as return back ?
a. Cash method
b. Instalment method
c. Hire Purchase method
d. Sale or Sales return method
Q190. When the value of goodwill is not given, the value of goodwill is found out in
the purchase of business by applying the following formula :
a. Goodwill = Purchase price less net assets
b. Goodwill = Net assets less purchase price
c. Goodwill = Total assets less purchase price
d. Goodwill = Purchase price plus net assets
Q191. Total assets of a firm are 6, 60,000. Total liabilities are ` 50,000. Purchase
price is determined at ` 2, 30,000. Then remaining amount would be debited to
(1) Goodwill A/c.
(2) Capital Reserve A/c.
(3) General Reserve A/c.
(4) Both Goodwill and Capital Reserve
Q193. In case of continuous increase in profits of the company, which profit shall
be taken into consideration for goodwill valuation?
(1) Weighted Average Profit
(2) Super Profit
(3) Revenue
(4) Simple Average
1. IND AS 10
2. IND AS 11
3. IND AS 12
4. IND AS 13
1. IRR
2. ARR
3. CRR
4. NPV
1. 1-07-2016
2. 1-07-2017
3. 1-06-2017
4. 1-07-2018
Account MCQ for SO Part-II
QNo.1 On 13th June, 2015 A draws a bill on B for Rs.50,000 payable after 60 days. What will be the
due date of that bill?
a) 14th August
b) 15th August
c) 16th August
d) 17th August
Ans A
QNo.2 A bill is drawn on 5th February,2017 for one month after sight. Its date of acceptance is 12th
February 2017. What will be the due date of the bill?
a) 12th March,2017
b) 13th March, 2017
c) 14th March, 2017
d) 15th March,2017
Ans D
QNo.3 A bill for 40,000 was discounted by Ganesh with Axis Bank for Rs.38500. At maturity, the
bill was dishonoured and bank notified it for Rs.600. How much amount Axis bank will deduct
from the bank balance of Ganesh at the time of dishonor.
a) 40,000
b) 38500
c) 40600
d) 39100
Ans C
QNo.4 Radha draws a bill on Lalita for Rs.50,000. She want to endorse it to Visakha in settlement
of Rs.62,000 at 4% discount with the help of Lalita’s acceptance and balance in cash. How much
cash Radha will pay to Visakha.?
a) 9520
b) 9620
c) 9720
d) 9820
Ans A
QNo.5 X draws a bill on Y for Rs.60,000 for mutual accommodation. X discounted the bill for
57,000 and remitted 19,000 to What amount will be sent by X to Y on due date.?
a) 60,000
b) 57,000
c) 40,000
d) 41,000
Ans C
QNo.6 Interest account is debited in the books of _______________ because it is an expenses for
him
a) Drawee
b) Drawer
c) Endorsee
d) Payee
Ans A
QNo.7 A bill for 75000 is discounted with the bank for 72,000. The bill is dishonoured at maturity.
The drawee pays 40% in full settlement. What is the amount of bad debts?
a) 45000
b) 42000
c) 43000
d) 44000
Ans A
QNo.8 Imprest amount Rs.5000. what will be the amount of reimbursement if following expenses
were incurred by the petty cashier during the month –telephone -1450/- . Tiffin -1050/-, small
repair-500/- and General expenses-400/-
a) 1600
b) 3400
c) 3050
d) 3000
Ans B
QNo.9 Salary due for the month of March will appear in __________ side of cash book.
a) Receipt
b) Payment
c) Contra
d) None of the above.
Ans D
A. By matching entries in the passbook with entries in the bank and cash column of the cash
book
B. By matching the entries in the passbook with entries in the bank column of the cash book
C. By matching the entries in the passbook with entries in the cash column of the cash book
D. None of the above
Ans: C. By matching the entries in the passbook with entries in the bank column of the
cash book
QNo.12. When the Cash amount as per the Cash Book is the beginning point, explicit
deposits by the bank holder are known as?
A. Subtracted
B. Added
C. Not need to be adjusted
D. Neither of the two
Ans: B.) Added
A. Double-entry system
B. Not a Part of the Double-entry system
C. Bank Statement
D. None of all of these
A. Debtor
B. Creditor
C. Account Holder
D. Bank
QNo.15 Which amount of the following does not need to be adjusted into the cash book
balance?
QNo.16 If the Account holder deposits the cash in the bank, then it is known as?
A. Expense
B. Liability
C. Credit
D. Debit
QNo.17 A Bank Reconciliation Statement is made up using the ……… from following
which?
Ans: A.) The bank column of the Cashbook and the Bank Statement
QNo.18 The customer account is ………….when he withdraws the amount from the
bank?
A. Debited
B. No effect
C. Credited
D. None of these
A. Recorded in books
B. Recorded in banks
C. Subtracted from the cash book balance
D. Subtracted from the Passbook balance
A. Uncollected cheques
B. Uncredited cheques
C. Outstanding cheques
D. None of all of the above
QNo.21 If the Cash amount as per the passbook is the beginning point, then the rate of
the bank interest will be permitted?
A. Deducted
B. Added
C. No effect
D. None of all of these
QNo.22 what is the most prominent purpose of preparing the Bank Reconciliation
Statement?
A. To confirm the cash collections have been deposited into the bank suitably and the payments
have been processed
B. To know about the balance of the Pass book
C. To know about the balance of the Cashbook
D. None of all of these
A. Petty Cash
B. Cash
C. Freight-In
D. Postage Expense
QNo.25 The Balance of the reconciliation of the cash ledger book reconcile with the
cash in the register is an example of
A. Other rules
B. Separate internal confirmation
C. Establishment of duty
D. Segregation of responsibilities
QNo.26 Which of these below-given points is not an internal management method for
cash?
QNo.27 Which of the below-given items on a bank statement reconciliation would need
an adjusting entry on the company’s books?
3. An issue of shares that is not a public issue but offered to a selected group of
persons is called _______.
4. When shares are forfeited, the share capital account is debited with ______.
8. Under the provisions of the Companies Act, the company can issue_______.
10. Premium on the issue of shares is shown on which side of the balance sheet?
(a) Assets
(b) Liabilities
3. An issue of shares that is not a public issue but offered to a selected group of
persons is called _______.
4. When shares are forfeited, the share capital account is debited with ______.
8. Under the provisions of the Companies Act, the company can issue_______.
10. Premium on the issue of shares is shown on which side of the balance sheet?
(a) Assets
(b) Liabilities
10. Who will notify the rate of tax to be levied under CGST Act?
(a) Central Government
(b) State Government
(c) GST Council
(d) Central Government as per the recommendations of the GST Council
14 . What is the time of supply of vouchers when the supply with respect to
the voucher is identifiable?
(a) Date of issue of voucher
(b) Date of redemption of voucher
(c) Earlier of (a) & (b)
(d) (a) & (b) whichever is later
15. What is the time of supply of vouchers when the supply with respect to
the voucher is not identifiable?
(a) Date of issue of voucher
(b) Date of redemption of voucher
(c) Earlier of (a) & (b)
(d) (a) & (b) whichever is later
16. What is the time of supply of service if the invoice is issued within 30
days from the date of provision of service?
a) Date of issue of invoice
b) Date on which the supplier receives payment
c) Date of provision of service
d) Earlier of (a) & (b)
17. What is the time of supply of service where services are received from
an associated enterprise located outside India?
a) Date of entry of services in the books of account of recipient of service
b) Date of payment
c) Earlier of (a) & (b)
d) Date of entry of services in the books of the supplier of service
24. When can the transaction value be rejected for computation of value of
supply?
(a) When the buyer and seller are related and price is not the sole consideration
(b) When the buyer and seller are related or price is not the sole
consideration
(c) It can never be rejected
(d) When the goods are sold at very low margins
26. Rule 30 of the CGST Rules inter alia provides value of supply of goods or
services or both based on cost shall be ……………% of cost of production or
manufacture or the cost of acquisition of such goods or the cost of
provision of such services
(a) 100
(b) 10
(c) 110
(d) 120
28. Which of the following persons are not liable for registration?
a) Any person engaged exclusively in supplying services wholly exempt from
tax
b) Casual Taxable Person
c) Both (a) and (b)
d) None of the above
29. Within how many days a person should apply for registration?
a. Within 60 days from the date he becomes liable for registration.
b. Within 30 days from the date he becomes liable for registration.
c. No Time Limit
d. Within 90 days from the date he becomes liable for registration.
33. If an entity has multiple branches within the same state, it requires
a) Registration for each branch separately
b) Single registration for all the branches
c) Multiple registration or single registration at the option of the Assessee
d) Registration for each branch separately if the turnover of each branch exceeds
INR 20 Lakhs
35. Which of the following forms are used for applicable for registration?
a) Form GSTR-1
b) Form GSTR-2
c) Form GST REG-01
d) Form GST REG-02
44. As per section 25 of CGST Act, 2017, a casual taxable person shall apply
for registration at least _____ prior to the commencement of business.
a. 5 days
b. 10 days
c. 7 days
d. 30 days
45. In case of taxable supply of services, invoice shall be issued within a
period of __________ from the date of supply of service.
a) 30 days
b) 45 days
c) 60 days
d) 90 days
46. Where the goods being sent or taken on approval for sale or return are
removed before the supply takes place, the invoice shall be issued:
a) before/at the time of supply
b) 6 months from the date of removal
c) Earlier of (a) or (b)
d) None of the above
47. Registered person may issue a consolidated tax invoice for such
supplies at the close of each day in respect of all such supplies provided
a) The recipient is not a registered person
b) The recipient does not require such invoice
c) The value of goods and services or both per invoice is less than INR 200
d) All the above conditions are satisfied
54. Deposits towards tax, penalty, interest, fee or any other amount are
credited into the _________________of a taxable person.
a) Electronic liability register
b) Electronic credit ledger
c) Electronic cash ledger
d) All of the above
55. Input tax credit as self-assessed in the return of the registered person
shall be credited to which of the following ledger?
a) Electronic liability register
b) Electronic credit ledger
c) Electronic cash ledger
d) All of the above
56. Which of the following items are debited to electronic credit ledger?
a) Output tax
b) Interest
c) Penalty
d) All of the above
57. Which input tax credit cannot be claimed against which output tax
liability?
a) IGST, SGST
b) CGST, IGST
c) SGST, IGST
d) CGST, SGST
59. Which of the following liability cannot be adjusted against input tax
credit of CGST?
a) IGST
b) SGST/UTGST
c) All of the above
d) None of the above
66. Composition tax payer is required to file return in Form no. ______.
a) GSTR-2
b) GSTR-3
c) GSTR-4
d) GSTR-5
68. Which of the following are not required to file the Annual Return?
a) Input Service Distributor
b) Casual Taxable Person
c) Non-resident Taxpayer
d) All of the above
69. Who is authorised to conduct audit under section 35(5) of the CGST Act,
2017?
1. Chartered accountant
2. Any person having master degree in finance of recognised university
3. Cost accountant
4. Company secretary
Select the correct answers from the options given below
a. 1, 3 and 4
b. 4, 2, 3 and 1
c. 1 only
d. 1 or 3 only
70. A registered person whose aggregate turnover during a FY exceeds INR 2
crores is required to file which of the following documents.
a. Annual Return
b. Audited annual accounts
c. A Reconciliation Statement, duly certified, in prescribed form.
d. All of the above
A. Knowingly supplying, transporting or storing any goods that are liable for GST
B. Not registering under GST even though required to do so under GST Law
C. Falsification of documents/records or providing false information
D. all of the above
A. Jail term not exceeding 1 year if tax amount involved is between Rs. 100
lakhs to less than Rs. 200lakhs.
B. Jail term not exceeding 3 years if tax amount involved is between Rs.200lakhs
to less than Rs. 1000lakhs.
C. Jail term not exceeding 5 years if tax amount involved is Rs. 1000lakhs or
higher.
D. all of the above
A. The time limit for claiming a refund is 2 years from relevant date.
B. The time limit for claiming a refund is 1 years from relevant date.
C. all of the above
D. none of the above
84. ITC on goods sent for job work, in which of the following case?
A. The principal manufacturer will be allowed to take credit when goods are
return back in the place of principal manufacturer in the prescribed time.
B. The principal manufacturer sells the goods after return back from job work.
C. Manufacture can claim any time after purchase of raw materials.
D. none of the above
85. The normally applicable rate of GST on goods and services are
A. UK
B. Canada
C. France
D. China
A. Usually, the Input Tax Credit should be reduced from Outward Tax Liability.
B. TDS/TCS will be reduced from the total GST to arrive at the net payable.
C. Also, ITC cannot be claimed on interest and late fees, these can only be paid in
cash only.
D. all of the above taken in to consideration.
A. GST is like a last-point retail tax. GST is going to be collected at point of Sale.
B. GST will abolish all the direct tax levied in India.
C. It will be implemented from 1 July, 2017 in India.
D. It will unified the tax structure in India
A. Service Tax
B. Corporation tax
C. Wealth Tax
D. All of the above
A. Composition scheme
B. Time of supply
C. Service tax on imported services
D. All of the above
A. Supply of goods
B. Supply of services
C. Supply of goods and services
D. Sales of goods and services
A. YES
B. NO
C. none
D. all
A. YES
B. NO
C. none
D. all
97. Can the taxable person under composition scheme avail the input tax credit?
A. YES
B. NO
C. none
D. all
A. YES
B. NO
C. none
D. all
99. Where the supplier involves a movement of goods, the place of supply
shall be determined by.
A. Movement of goods
B. Location of goods at the time of final delivery
C. Supplier’s location
D. Recipients’ location
100. How will the goods and services be classified under GST regime?
A. HSN/SAC CODE
B. HSN
C. SAC
D. None of the above
102. Input tax credit on compensation cess paid under GST (Compensation
to States) Act, 2017.
A. is not available
B. is available
C. is available but not fully
D. is available after one year
A. Immovable property
B. Both movable and immovable property
C. Immovable property treated as supply of service
D. Immovable property treated as supply of goods
A. an interstate supplier
B. an intra-state supplier
C. Electronic commerce operator
D. Person liable to pay GST under reverse charge
106. One of the following states does not fall under special category given
under Art. 279A of the Constitution
A. Himachal Pradesh
B. Uttarakhand
C. Chhattisgarh
D. Jammu & Kashmir
A. Schedule I
B. Schedule III
C. Schedule II
D. Schedule IV
A. Individual or HUF
B. Individual and HUF
C. Partnership
D. All the above
A. Section 137
B. Section 147
C. Section 142
D. Section 145
A. Two percent
B. Three per cent
C. One per cent
D. Half per cent
A. With participation
B. Without participation
C. Either a or b
D. None of the above
122. Supply of two or more taxable supplies naturally bundled and supplied is
called
a) Mixed supply b) Composite supply
c) Common supply d) Continuous supply
123. Goods are packed and transported with insurance, packing materials,
transport and insurance. This is a case of
a) Mixed supply c) Composite supply
b) Common supply d) Continuous supply
129. Liability to pay tax by the recipient of supply of goods or services is called
a) CGST b) SGST
c) CGST plus the rate of SGST d) SGST plus UTGST
132. Where an E- commerce operator does not have physical presence in the
taxable territory
a) Tax need not be paid b) Agent of the E- commerce operator shall be liable to
pay tax
c) Tax must be paid in advance d) IGST is not applicable
133. Where the location of the supplier and the place of supply are in two different
States –
a) IGST is applicable b) CGST is applicable
c) SGST plus CGST is applicable d) CGST plus IGST is applicable
134. Where location of the supplier and the place of supply are in two different
Union territories
a) CGST plus UTGST is applicable b) IGST is applicable
c) SGST plus UTGST is applicable d) CGST plus IGST is applicable
137. The managers of ITC Ltd., Kolkata (GST registered) are given one week training
in Munnar, by Infosys Ltd. Bangalore, for a sum of Rs. 10 Lakhs. Payment given at
Mumbai. The place of supply of service is
a) Mumbai b) Kolkata
c) Munnar d) Bangalore
138. The managers of ITC Ltd., Kolkata (not registered under GST) are given one
week training in Munnar, by Infosys Ltd. Bangalore, for a sum of Rs. 10 Lakhs.
Payment given at Mumbai. The place of supply of service is
a) Mumbai b) Kolkata
c) Munnar d)Bangalore
142. Gifts (other than emplacement contract) not exceeding --- in a year by an
employer to employee shall not be treated as supply.
a) Rs. 5,000 b) Rs. 10,000
c) Rs. 50,000, d) Rs. 1,00,000
143. Lease, tenancy, easement or licence to occupy land is a supply of
a) Goods b) Services
c) Both goods and services d) None
145. Transfer of right in goods or of undivided share in goods ‘without the transfer
of title’ is
150. Actionable claims, other than lottery, betting and gambling are
a) Section 9 b) Section 10
c) Section 4 d) Section 2
a) Supplier b) Buyer
c) Manufacturer d) None
160. In order to adopt composition scheme by more than one registered persons
having the same Permanent Account Number, turnover of
a) All must be less than Rs. 1.5 crore b) At least one must be below Rs. 1 crore
c) All must be more than Rs. 20 lakh d) At least one must be less Rs. 20 lakh.
162. In respect of the additional payment for value of supply like interest, late fee
etc., the time of supply is
163. If it is not possible to determine the time of supply, the time of supply shall be
a) decided by the supplier b) decided by the recipient
c) date of entry in the books of recipient d) date of entry in the books of
supplier
164. When the supply of goods or services is for a consideration not wholly in
money, the value of the supply shall be
168. Where the goods are received in lots or instalments input tax credit can be
claimed
a) upon receipt of first lot b) upon receipt of the last lot
c) on receipt of invoice d) after full payment of price
169. Where a recipient fails to pay the price within 180 days from the date of issue
of invoice, he shall be liable to pay input tax credit to the Government with --- %
interest
172. Goods or services or both on which tax has been paid under section 10 belong
to
a) Exempt category b) Composite tax category c) Blocked credit category d)
None of these
177. When an exempt supply in the hands of registered person becomes a taxable
supply, such person
a) can take credit of input tax b) is not entitled to take credit of input tax
c) liable to pay tax on stock d) liable to pay reverse charge
178. A registered person, after availing input tax credit, opts for composition levy,
180. Tax credit in respect of goods or inputs sent for job work can be claimed by
a) Job worker b) Principal c) Either by Job worker or Principal d) Not eligible for
input credit
181. A registered person need not issue a tax invoice if the value of supply less
than
a) 100 b) Rs. 200 c) 500 d) 1000
184. After issuing a receipt voucher for advance payment, if no supply is made --
- may be issued against such payment.
1) Taxable value is found to be excess 2) The goods are returned by the recipient;
3) Goods supplied are found to be deficient 4) Tax charged is found to be lesser
188. Mr. P supplied goods of Rs. 1, 00,000, to Mr. Q, who returned goods of
Rs 10,000 due to inferior quality. Mr. P will later issue
a) Credit note b) Debit note c) Tax invoice d) Delivery challan
189. A credit note is issued to the recipient of goods in the following cases
1)When the taxable value of goods found to be less 2)Tax charged found to be less
3) When the recipient refuses to make payment 4) None of these
193. The input tax credit as selfassessed in the return of a registered person
shall be credited to his electronic
194. The balance of IGST credit after set off IGST can be used towards the
payment of
195. The balance of CGST credit after set off of CGST can be used towards the
payment of a) SGST b) UTGST c) either SGST or UTGST d) IGST
198. Every person who fails to pay tax shall be liable to pay interest not exceeding
199. A taxable person who makes an undue or excess claim of input tax credit
shall be liable to pay interest not exceeding
200. TDS provision applicable only when the total value of supply, under a contract,
exceeds
a) Rs. 1,00,000 b) Rs. 1,50,000 c) Rs. 2,00,000 d) Rs. 2,50,000
MCQs of Company Law (HPTI)
Q1 Power Utilities are governed by
a) Compani b) Electricity Act c) Both d) None
es Act
2013
Q2 Private Ltd. Company require minimum ______ members and Public
Limited Company require _________ members for registration with Registrar
of Companies
a) 7, 2 b) 1, 8 c) 2,7 d) 3, 2
Q73 Office of Director stands vacate if he absents himself from all meetings of
Board of Directors held during a period of 12 months with or without
seeking Leave of Absence
a) True b) False c) Partially true d) None
Q74 Quorum for Board Meeting is
a) One third of total b) Chairman, c) 2/3rd of total d) None
strength or two Wholetime strength or 3
Directors, Directors Directors whichever
whichever is is higher
higher
Q75 A person who is undischarged insolvent cannot be appointed as Director
on the Board
a) True b) False c) Partially false d) None
Q76 Participation of Directors by video conference or by other audio visual
shall also be counted for the purpose of quorum
a) True b) False c) Partially true d) None
Q77 Company should hold _____ Board Meetings in a year and not more than
______ days shall intervene between two consecutive meetings of board
a) 3, b) 4, 150 c) 2, 180 d) 4 , 120
100
Q78 Who conducts Supplementary Audit of Government Companies
a) Ministry b) Ministry of c) A.G. of d) Comptroller and
of Power, Govt. of State Auditor General of
Corporate India India
Affairs,
Govt. of
India
Q79 There is urgent proposal which requires approval of Board of Directors.
Advise
a) Take b) Take approval c) Get urgent proposal passed d) None
approval of State in circulation under
from Government Section 175 of Companies
Chairman Act, 2013
Q80 Company formed under Companies Act, 2013 may be either:-
a) Company b) Company c) Unlisted d) All
listed by listed by Company
shares guarantee
Q81 In which of the following Company restricts the Right to transfer its
shares
a) Public b) Charitable c) Private d) Governme
Compa Company Company nt
ny Company
Q82 Private Company can have maximum of ______ members
a) 50 b) 100 c) 20 d) 200
Q83 In which of the following company restricts invitation to public to
subscribe for any securities of the company
a) Governme b) Private Company c) Public d) Charitable
nt Company Company
Company
Q84 In which of the following is not Legal person
a) Public b) Limited c) Partnership firm d) None
Compa liability
ny Partnership
Q85 Subsidiary Company cannot holds shares in its holding company except
as Legal representative or as trustee before becoming its subsidiary
company
a) True b) False c) Partially true d) None
Q86 For which of the following meeting proxy is relevant
a) Committee b) Annual General c) General d) 2 &
Meeting Meeting Meeting 3
Q87 Leave of absence relates to
a) Annual b) Extra Ordinary c) Both d) None
General General Meeting
Meeting
Q88 OPC (One Person Company) has to be ______
a) Limited b) Private c) Public Company d) Charitable
Liability Company Company
Partners
hip
Q89 Statutory Auditor of Company cannot take Internal Audit assignment of
that Company
a) True b) False c) Partially true d) Partia
lly
false
Q90 In which of the following is the feature of Public Company
a) Artificial b) Limited liability c) Continue Existence d) All of
person above
Q91 Anything which requires approval of shareholders first needs to be
approved by _____
a) Chairm b) Managing c) Wholetime d) Board
an Director Directors of
Direct
ors
Q92 Financial Statements are got to be approved form Shareholders within six
months from the end of Financial Year. In case Financial Statements are
not ready what will be your advice.
a) To be b) To be approval c) Take extension for d) None
approval of of Board of holding of Meeting of
Chairman Director Shareholders (AGM) in
which Financial
Statements are to be
approved
Q93 Executive Chairman is one who participates in day to day affairs of the
company & take decisions for the growth & progress of company
a) True b) False c) Partially false d) None
Q94 Non executive Director/Part time Director only attends Board Meeting or
do the work as assigned by Board of Director from time to time
a) True b) False c) Partially true d) Partially
false
Q95 Subsidiary Company is one in which another Company
a) Controls the b) Exercises or control c) Both d) Non
composition more than one-half of e
of the Board the total Share
of Directors Capital
Q96 X Limited holds 50.05% of Share Capital of Y Limited. What is the status
of Y Limited vis a vis X Limited
a) Holding b) Public c) Subsidiary d) None
Company Company and Company and
and Subsidiary Holding company
Subsidiary Company
Company
Q97 While ascertaining the holding Company status in terms of owning the
share capital in another company, any shares held by subsidiary of
holding company shall be added
a) True b) False c) Partially True d) None
Q98 X Limited is Subsidiary of Y Limited and Z Limited is Subsidiary of X
Limited. What is the relation of Z Limited with Y Limited
a) Associate of b) Subsidiary of Y c) Holding Company d) None
Y Limited Limited
Q99 XY Limited at its discretion can appoint or remove all or a majority of
Directors of another Company. XY Limited is
a) Government b) Subsidiary c) Holding Company d) Associate
Company Company Company
Q10 A Limited owns 90,010 Equity Shares and its Subsidiary Company B
0 Limited holds 10,000 Equity Shares out of the total 2,00,000 Equity
Shares Capital of ABC Limited. What is the relation of ABC Limited with
A Limited
a) ABC Limited b) ABC Limited is c) A Limited is d) 1 & 3
is subsidiary subsidiary of B Holding Company
of A Limited Limited of ABC Limited
Answer Key
Q2. A critical assumption of the net operating income (NOI) approach to valuation is:
Q3. Which of the following company can held the AGM on public holiday?
A) Public company
B) Private company
C) Government company
D) Association not for profits
Q4. Management is an organ, organs can be described and defined only through their
functions. This definition was given by ____________.
A) Peter F. Drucker
B) Terry
C) Louis Allan
D) Henry Fayol
A) POSDCORB.
B) POSTCARD.
C) POSDCORB.
D) POSDORBC.
A) Union is strength.
B) Service is our motto.
C) Buyer beware.
D) Product is our strength.
Q8. Where the company has three directors maximum remuneration payable to all
of them is
A)5%
B)10%
C)11%
D)20%
Q9. A person shall not be eligible for appointment as a director of a company , if ______
(A) he is of unsound mind and stands so declared by a competent court;
Q10. The Company must deliver share certificate within______ if the shares
applied for transfer.
A) 3 months
B) 2 months
C) 5 months
D) none of these
A) 10
B) 15
C) 5
D) 12
B)Five
C)Four
D)Three
Q13. There are restrictions on who can act as a director. Which one of
following is not a valid restriction?
A) Appointment letter
B) MOA
C) AOA
D)Prospectus
Q16. As per sec 52 of Companies Act, 2013 the balance in security premium
account shall not be utilized for?
A) Payment of dividend
B) Capital losses
C) Writing off discount on issue
D) Issue of fully paid up bonus share
A) Depreciation charges
B) Dividends
C) Goodwill
D) Patent amortization
Q20. In case of appointment of director, which form is to be filed?
A) Form DIR-11
B) Form DIR-12
C) Form DIR-13
D) Form DIR-03
Q21. In case the Comptroller and Auditor General of India does not appoint
first auditor within the stipulated date who will appoint such auditor within
next 30 days?
(A) Shareholders
Q22. As per Companies Act, 2013, the Board of the Company shall ensure
that the Company spends, in every financial year, at least ________ of the
average net profits of three preceding Financial Year under CSR obligations.
(A) 2 %
(B) 3%
(C) 4 %
(D) 5%
Q23. Memorandum of satisfaction of charge shall be in Form:
A) CHG 5
B) CHG 3
C) CHG 4
D) CHG 2
Q24. In how many days the minutes of proceedings of each meeting shall be
entered in the books maintained for that purpose along with the date of such
entry:
Q25. What is the quorum for annual general meeting for a private limited
company?
(A) Diversification
(B) Acquisition
(C) Merger
(D) Amalgamation
Q29. Debenture holder of a company are company’s ________.
(A) Owner
(B) Creditors
(C) Customer
(D) All of the above
Q30. The financial statements shall be in the form specified in the Companies
Act, 2013 and comply with Accounting Standards or Indian Accounting
Standards as applicable:
A) Schedule III
B) Schedule I
C) Schedule IV
D) Schedule II
Q31. An association not for profit registered under Companies Act, 2013
popularly known as:
Q33. Which of the following contract is signed by the promoters with the
third party on behalf of the proposed company?
A) Preliminary contracts
B) Provisional contract
C) Prospectus
D) Memorandum of association
A) Sole Proprietorship
B) Cooperative Society
C) Joint Hindu family business
D) Partnership
(A) 1
(B) 2
(C) 5
(D) 7
Q36. The leader who excels as a leader because of his superior knowledge
is ___.
A) Autocratic leader
B) Intellectual leader
C) Liberal leader
D) Institutional leader
Q37. An independent director cannot hold office for more than _____
consecutive terms.
(A) Four
(B) Three
(C) Two
(D) One
Q38. Every company should have at least one director who has stayed in
India for a total period of not less than ____ days in the previous calendar
year.
A) 180
B) 90
C) 365
D) 30
A) Functional organization
B) Line organization
C) Matrix organization
D) Committee organization
Q40. Documents that regulates the internal affairs of a company are: -
A) Articles of Association
B) Memorandum of Association
C) Prospectus
D) Certificate of Incorporation
Q41. Rate of return on capital is exceptionally high in
A) Under – capitalization
B) Over – capitalization
C) Working capital
D) Fixed capital
Q42. _____ refers to the structure of total capital funds raised by the
company.
A) Fixed capital
B) Capital structure
C) Capital requirements
D) Under capitalization
A) Trading of equity
B) Profitability
C) Cost of capital
D) All of above
A) Profitability
B) Solvency
C) Transferability
D) Flexibility
B) Rate of interest
Q46. Which of the following is not one of the three fundamental methods of
firm valuation?
D) market share
A) EPS
A) Equity shareholders
B) Stakeholders
C) Employees
D) Either a or b
C) Liquidation method
A) Voluntary association
A) Diffusion of Risk
B) Expansion Potential
C) Perpetual Existence
D) Lack of Secrecy
Q57. A company shall have its Registered Office from the date __________ of
its incorporation.
A) 7th day
B) 15th day
C) 30th day
D) one month
(A) CIN
(B) DIN
(C) PAN
(D) PRAN
A) Top
B) Middle
C) Bottom
A) Organization hierarchy
B) Organization chart
C) Departments
D) Span of Control
Q63. Which form is to be filed with ROC for increase in Authorized share
capital?
A) PAS-3
B) SH-7
C) SH-4
D) MGT-14
Q66. As per Section- ______ of the Companies Act, 2013 a certain class of
companies are required to appoint an internal auditor for conducting the
Internal Audit.
A) 138
B) 228
C) 356
D) 192
A) Unity of Direction
B) Unity of command
C) Either of these
D) None
Q68. Board of Directors shall meet atleast ____ times a year as per
Companies Act, 2013.
A) 4
B) 2
C) 1
D) 3
A) Empirical
B) Management science
C) Contingency
D) Operational
A) Compulsory
B) Optional
A) 25
B) 46
C) 175
D) 105
D) All of above.
Q74. Notice of Adjourned meeting is not required of a meeting, if meeting is
adjourned________.
B) since die
A) Proxy
B) Shareholders
C) Board of Directors
D) Quorum
Q76. What is the period for which books of accounts must be retained by the
Company?
A) 8 years
B) 10 years
C) 5 years
1) To remit, or give time for the repayment of, any debt due from a director
Q78. …………..is highly suitable for large organizations having large number
of managerial personnel at different levels.
A) Centralization
B) Decentralization
C) Departmentalization
D) All of these
Q79. The time period for holding AGM can be extended by ROC for how many
months?
A) 2
B) 3
C) 4
D) 6
Q80. Management is not ______.
A) A pure science
B) An art
C) Art and science both
D) An applied science
Q83. ABC, as a Project Manager, is able to assess the true potential of his
subordinates and constantly motivates them to realise their full potential.
Identify the element of directing being described in the above lines.
(A) Leadership
(B) Communication
(C) Supervision
(D) Control
A) Atleast once
B) Atleast twice
C) Atleast four times
D) Once in six months
Q85. The time gap between consecutive AGMs shall not exceed:
A) 15 months
B) 18 months
C) 24 months
D) 12 months
A) Equity Shares
B) Debentures
C) Short-term borrowings
D) Bonds
Q89. Every listed public company shall have at least _____ of the total
number of directors as independent directors.
A) one third
B) half
C) two third
D) one fourth
A) CAG
B) PAG
C) Chief Minister
D) Shareholders
A) Section -12
B) Section -15
C) Section -6
D) Section-4
A) Bank Overdraft
B) Trade Credit
C) Equity Finance
D) All of the above
A) Negotiable, Liquid
B) Liquid, Marketable
C) liquid, Personal
D) None of these
B) Registered Companies
C) Private Companies
A) Management by Organisation
B) Management by Operation
C) Management by Objectives
D) None of these
(A) Supervision
(B) Motivation
(C) Leadership
(D) All of the above
a) Principle of consultation
b) Principle of integration
c) Principle of flexibility
d) Principle of economy
Ans B
QNo.2 Which principle of the effective communication stipulates that Communication system
should be able to absorb the changes in the organization?
a) Principle of consultation
b) Principle of integration
c) Principle of flexibility
d) Principle of economy
Ans C
QNo.3 Which principle of the effective communication stipulates that the information sent to the
receiver should be sufficient and complete in every respect?
a) Principle of consultation
b) Principle of integration
c) Principle of flexibility
d) Principle of Adequecy
Ans D
QNo.4 Which principle of the effective communication stipulates that the purpose of
communication is that the receiver of information should clearly understand its meaning?
a) Principle of attention
b) Principle of integration
c) Principle of flexibility
d) Principle of Adequecy
Ans A
QNo.5 Which principle of the effective communication stipulates that the communication system
should be maintained in according to the objectives of the enterprises, its procedure and processes?
a) Principle of attention
b) Principle of integration
c) Principle of consistency
d) Principle of Adequecy
Ans C
a) Semantic Barriers
b) Emotional Barriers
c) Personal Barriers
d) Formal Barriers
Ans D
QNo.7 __________________ Barriers stipulates that there is always a possibility of
misunderstanding the feeling of the sender of the message or getting a wrong meaning of it.
a) Semantic Barriers
b) Emotional Barriers
c) Personal Barriers
d) Formal Barriers
Ans A
a) Semantic Barriers
b) Emotional Barriers
c) Personal Barriers
d) Formal Barriers
Ans B
a) Semantic Barriers
b) Emotional Barriers
c) Personal Barriers
d) Formal Barriers
Ans B
a) Semantic Barriers
b) Emotional Barriers
c) Personal Barriers
d) Formal Barriers
Ans A
a) Semantic Barriers
b) Emotional Barriers
c) Personal Barriers
d) Formal Barriers
Ans C
QNO.11 In which form of communication, a person says something to a person of his confidence
who in turn passes on the information to a person of his confidence and in this way a chain starts
moving?
a) Gossip chain
b) Probability
c) Cluster
d) Single standard
Ans D
QNo.12 In which form of communication, a person remains indifferent about the fact as to whom
he should pass on the information?
a) Gossip chain
b) Probability
c) Cluster
d) Single standard
Ans B
QNo.13 In which form of communication, a person tells something to selected individuals. Those
who receive the information further pass it on to another set of selected individuals.
a) Gossip chain
b) Probability
c) Cluster
d) Single standard
Ans C
a) Gossip chain
b) Probability
c) Cluster
d) Single standard
Ans A
a) Formal communication
b) Informal communication
c) Vertical communication
d) Horizontal communication
Ans A
a) Chain communication
b) Inverted ‘V’ Communication
c) Wheel communication
d) Circular communication
Ans B
QNO.17 Which form of communication refers to the communication between a superior and a
subordinate.?
a) Chain communication
b) Inverted ‘V’ Communication
c) Wheel communication
d) Circular communication
Ans A
QNO.18 In which form of communication, all the subordinates of a superior talk to one another
through his medium?
a) Chain communication
b) Inverted ‘V’ Communication
c) Wheel communication
d) Circular communication
Ans C
QNO.19 _______________________ communication takes place when two individuals of the same
level exchange information.
a) Horizontal communication
b) Vertical communication
c) Downward communication
d) Upward communication
Ans A
QNO.20 The sender can send his ideas briefly in the form of symbols or diagrams. Understanding it
correctly is called ______________.
a) Encoding
b) Decoding
c) Feedback
d) Media transmission
Ans B
QNO.21 Anything thought about by the sender is a mental state, which means that something to
be communicated has been thought of. Communicating this idea or thinking with help of symbols,
words or diagrams has been called____________.
a) Encoding
b) Decoding
c) Feedback
d) Media transmission
Ans A
QNo.22 The word communication has been derived from the Latin word__________________.
a) Communit
b) Communix
c) Communic
d) Communis
Ans D
a) Formal communication
b) Informal communication
c) Vertical communication
d) Horizontal communication
Ans B
a) Oral communication
b) Written communication
c) Gestural communication
d) None of the above
Ans C
a) Decoding
b) Encoding
c) Noise
d) Feedback
Ans C
a) Organization
b) Communication
c) Motivation
d) Leadership
Ans C
QNo.27 ______________________ means that when a person gives a good work performance,
there is some need lurking in the background which is continuously exerting pressure on him.
a) Organization process
b) Motivation process
c) Communication process
d) Leadership process
Ans B
a) Traditional theories
b) Modern theories
c) Big theories
d) None of the above
Ans A
a) Traditional theories
b) Modern theories
c) Big theories
d) None of the above
Ans A
a) Traditional theories
b) Modern theories
c) Big theories
d) None of the above
Ans B
a) Traditional theories
b) Modern theories
c) Big theories
d) None of the above
Ans A
Ans C
QNo.33 which theory of Motivation explains that Man wants to work provided the conditions are
favourable?
a) Traditonal theory X
b) Modern Theory Y
c) Quchi Z theory
d) Maslow theory
Ans B
QNo.34 which theory of Motivation explains that Man by nature is sluggish and shirker?
a) Traditonal theory X
b) Modern Theory Y
c) Quchi Z theory
d) Maslow theory
Ans A
a) Traditonal theory X
b) Modern Theory Y
c) Quchi Z theory
d) Maslow theory
Ans C
QNo.36 __________________ Motivators are those motivators which impress the employees while
working but they get them only afterwards
a) Extrinsic Motivators
b) Intrinsic Motivators
c) Non-Monetary Motivators
d) Group Motivators
Ans A
QNo.37 ________________________ Motivators are those motivators in whose case the time of
their receipt by the employees and effect on their efficiency happens to be the same.
a) Extrinsic Motivators
b) Intrinsic Motivators
c) Non-Monetary Motivators
d) Group Motivators
Ans B
QNO.38 which does not come under the first three steps of the motivation process?
a) Unsatisfied need
b) Search behaviour
c) Tension
d) Drives
Ans B
a) Unsatisfied need
b) Search behaviour
c) Reduction of Tension
d) Drives
Ans C
QNo.40 which theory says that people move to next higher need only when the lower level needs
are satisfied?
a) Herzberg’s theory
b) X and Y theory
c) Maslow’s Hierarchy theory
d) Quchi’s Z theory
Ans C
QNo.41 which theory divides the motivating factors into two parts?
a) Herzberg’s theory
b) X and Y theory
c) Maslow’s Hierarchy theory
d) Quchi’s Z theory
Ans A
QNo.42 _____________________ means those factors whose presence does not motivate the
employees to work with greater enthusiasm but their absence does discourage them.
a) Maintenance factors
b) Motivators factors
c) Quchi Z theory
d) Satisfiers factors
Ans A
QNo.43 ____________________ means those factors which directly inspire the employees to work.
a) Maintenance factors
b) Motivators factors
c) Quchi Z theory
d) Hygience factors
Ans B
a) Salary
b) Environment
c) Personal life
d) Achievement
Ans D
a) Technical inspection
b) Recognition
c) Working conditions
d) Environment
Ans B
a) Herzberg’s theory
b) X and Y theory
c) Maslow’s Hierarchy theory
d) Quchi’s Z theory
Ans D
a) Job enrichment
b) Job security
c) Perquisites
d) Employee participation
Ans C
Ans D
QNo.50 ________________ theory of motivation is derived from the old story of a donkey.
a) Herzberg’s theory
b) Carrot and stick theory
c) Maslow’s Hierarchy theory
d) Quchi’s Z theory
Ans B
QNo.51 which theory believes that leadership ability is inborn and it cannot be achieved by making
any efforts?
Ans D
QNo.52 which do not cover under the physical traits as per the leadership theory?
a) Appearance
b) Energy
c) Height
d) Self confidence
Ans D
QNo.53 which do not cover under ability traits as per the leadership theory?
a) Adaptability
b) Preparedness
c) Height
d) Enthusiasm
Ans C
QNo.54 Churchill proved to be a successful leader during the war but after the war when peace
returned people did not accept him as their leader. This is the example of which leadership?
Ans A
QNo.55 Anybody who can make a maximum contribution to the fulfillment of their needs, is
accepted as their leader. This is example of which leadership?
Ans B
QNo.56 Leader should be studied as a group rather than as an individual because a leader is
connected not with one individual but a human group. This is example of which leadership?
a) X and Y theory
b) Group Approach theory
c) Path Goal theory
d) The situation theory
Ans B
QNo.57 According to the ________________ , an individual does not utilize his full capabilities
willingly.
Ans B
Ans C
QNo.59 which theory stipulates that in order to find out the presence of the leadership ability in an
individual, it has to be found out as to what amount of strength and expectancy be generates among
his employees.?
Ans C
QNO.60 when a leader satisfies his followers by economic and non-economic incentives to get their
cooperation for the attainment of the objectives of the organization is called__________________.
Ans B
Ans A
QNo.62 Under_____________________________, the leader keeps all the authority centred in his
hands and the employees have to perform the work without changing any of his orders.
Ans C
QNo.63 Under __________________________, decisions regarding different works are not taken
by the manager alone but they are taken in consultation with the employees.
Ans D
Ans D
QNo.65 Under _____________________, the leader takes little interest in managerial functions and
the subordinates are left on their own.
Ans D
a) Employee oriented
b) Production oriented
c) Autocratic oriented
d) Positive oriented
Ans A
a) Employee oriented
b) Production oriented
c) Autocratic oriented
d) Positive oriented
Ans B
QNo.68 _______________________ have propounded the trait theory.
a) Mcfarland
b) Bernard and Ordway Teed
c) Ray A Killian
d) Mc Gregor
Ans B
a) Planning
b) Organization
c) Staffing
d) Controlling
Ans A
a) Planning
b) Organization
c) Staffing
d) Controlling
Ans B
QNo.71 __________________ refer to bring the actual results closer to the desired results.
a) Planning
b) Organization
c) Staffing
d) Controlling
Ans D
QNo.72 __________________ Management is concerned with the employees engaged at all levels
of an organization.
a) Organization
b) Scientific
c) Personnel
d) Financial
Ans C
a) Traditional
b) Scientific
c) Personnel
d) Financial
Ans B
a) Seven
b) Ten
c) Five
d) Fourteen
Ans C
Ans C
a) Informal organization
b) Formal organization
c) Formal Controlling
d) Formal planning.
Ans B
a) Informal organization
b) Formal organization
c) Formal Controlling
d) Formal planning.
Ans A
a) Line organization
b) Line and staff organization
c) Functional organization
d) Committee organization
Ans A
a) Line organization
b) Line and staff organization
c) Functional organization
d) Committee organization
Ans A
Ans C
QNo.81 ___________________ is called military organization simply because of the fact that
organizational structure in the army is done on this basis because an order given by the General
reaches the soldiers through their superiors like Colonel, Major, Captain etc.
Ans D
QNO.82 Under this _________________________, the work of thinking and execution is done by
different persons and it can be adopted in case of large business enterprises.
Ans A
QNo.83 ____________________ refers to those elements of the organization which provide advice
and service to the line.
a) Line executive
b) Staff executive
c) Self-executive
d) None of the above.
Ans B
QNo.84 __________________ are those incharge of function that contribute directly to the main
objective of the business.
a) Line executive
b) Staff executive
c) Self-executive
d) None of the above.
Ans A
Ans B
Ans B
a) Span of control
b) Span of planning
c) Span of organization
d) Span of staffing
Ans A
a) Organziation
b) Staffing
c) Controlling
d) Planning
Ans D
QNo.89 According to _____________________, an employee should get orders only from one
superior at a time.
a) Principle of Efficiency
b) Principle of flexibility
c) Principle of Unity of command
d) Principle of simplicity
Ans C
a) Principle of Efficiency
b) Principle of scalar
c) Principle of unity of command
d) Principle of simplicity
Ans B
a) Organization
b) Planning
c) Delegation
d) Department
Ans C
a) Organization
b) Planning
c) Delegation
d) Decentralization
Ans D
a) Ideal
b) Average
c) Change
d) Pessimum
Ans A
a) Ideal
b) Average
c) Change
d) Pessimum
Ans B
QNo.95 An equilibrium is a stage from which an entrepreneur does not want to ___________.
a) Ideal
b) Average
c) Change
d) Pessimum
Ans C
QNo.96 The transitional period in the life of an expanding firm is called ______________ firm.
a) Ideal
b) Average
c) Change
d) Pessimum
Ans D
QNo.97 ____________ refer to instructing, guiding communicating and inspiring peoples in the
organization.
a) Planning
b) Staffing
c) Directing
d) Supervision
Ans C
QNo.98 _______________refers to bringing the actual results closer to the desired results.
a) Planning
b) Directing
c) Supervision
d) Controlling
Ans D
a) Planning
b) Coordination
c) Controlling
d) Directing
Ans B
QNo.100 Henry Fayol has defined the ________________ No .principles of the Management.
a) Five
b) Ten
c) Twelve
d) Fourteen
Ans D
(PAPER-VIII)
Auditing
Commercial Auditing
a) Continuous audit
b) Periodical / Annual / Final / Completed audit
c) Balance Sheet audit
d) All of the above
Ans. d
Q no. 5 Which of the following term define “Where audit in the case of an
enterprise is not compulsory by law, though it is opted for by the enterprise in
view of the several benefits resulting from it”?
a) Management audit
b) Private audit
c) Statutory audit
d) None of the above
Ans. b
Q no. 6 In the case of a private audit, the nature and scope of the audit is
determined by the______________?
a) Auditor
b) Owner
c) Client
d) Investor
Ans. c
Q no. 11 Which of the following term define “An occasional audit is meant for
special event, time or purpose, etc. It is not conducted on a regular basis:?
a) Statutory audit
b) Governmental audit
c) Occasional audit
d) Interim audit
Ans. c
Q no. 12 Which of the following term define “a complete check and analysis of
certain items and, contingent upon effective, check, an appropriate test check on
remaining items, the whole of the unqualified opinion.”?
a) Statutory audit
b) Standard audit
c) Occasional audit
d) Interim audit
Ans. b
Q no. 14 In a Balance Sheet audit, the audit is concerned only with the items
appearing in the
Balance Sheet, such as,
a) capital reserves,
b) other outstanding liabilities
c) Assets of the business.
d) All of the above
Ans. d
Q no. 16 Which error occurs when a transaction is not recorded in the books of
account, either wholly or partially?
a) Errors of omission,
b) Errors of commission
c) Error of principal
d) Compensating error
Ans. a
Q no.18 Which error occurs when the same transaction is recorded twice in the
books of original entry, and hence also posted twice in the ledger accounts?
a) Errors of omission,
b) Errors of commission
c) Error of duplication
d) Compensating error
Ans. c
a) Interim audit
b) Occasional audit
c) Partial audit
d) Internal audit
Ans. d
Q no. 23 Which is not used to determine the adequacy of the internal control?
a) Narrative record,
b) Questionnaire
c) Flow chart
d) Evaluation
Ans. d
Q no. 37 Each voucher should be examined with great care and caution and
while doing so the following points must be given particular attention?
a) Each voucher should be consecutively numbered and carefully preserved.
b) It should be properly dated and correspond to the date of the transaction
to which it relates and the period under audit.
c) It should be authorised by an official properly empowered in this behalf.
d) All of the above
Ans. d
Q no. 41 The first step in process of verification is to see that the assets as
disclosed in the Balance Sheet is to check?
a) Existence of assets as at the date of the balance sheet
b) Ownership of assets
c) Proper valuation of assets
d) Proper presentation
Ans. a
Q no. 46 The rates of depreciation should take into account on the basis of -
a) expected physical wear and tear;
b) obsolescence;
c) legal and other limits on the use of the asset
d) All of the above
Ans. d
Q no. 48 Which is refer to that group of assets which are in the form of cash and
bank balances, including such other assets or reserves as are expected to be
realized in cash, or sold or consumed within a period of not more than twelve
months in the ordinary course of business?
a) Floating assets
b) Current assets
c) Both a & b
d) Fixed assets
Ans. c
Q no. 49 As asset that diminishes in value by reason of, and in proportion to, the
extraction or removal of a natural product such as ores, oil, and timber, which it
contains, is a _________ .
a) Current assets
b) Fixed assets
c) Wasting assets
d) None of these
Ans. c
Q no. 50 An asset which does not have a concrete from and is not capable of
being perceived especially by the sense of tough, is an__________.
a) Tangible assets
b) Intangible assets
c) Wasting assets
d) Fictitious assets
Ans. b
Q no. 51 An asset which, like an intangible asset, does not have concrete from
but which, unlike it, is not realizable in cash, is a
a) Tangible assets
b) Intangible assets
c) Wasting assets
d) Fictitious assets
Ans. d
a) 1,2,3,4
b) 1,3,4,5
c) 1,2,3,4,5
d) 1,2,3,5
Ans. c
Q no. 58 ____________ a fund which is created and maintained for the purpose of
being drawn upon in future.
a) Reserve
b) Provision
c) Surplus
d) All of the above
Ans. a
Q no. 68 When the affairs of the company may be investigated by the Central
Government (Statutory investigation)?
a) On an application by the members;
b) On a report by the Registrar of Companies;
c) On an order by the competent court.
d) All of the above
Ans. d
Q no. 70 ________ usually covers one accounting year _________ cover more than
one accounting year.
a) Auditing, Investigation
b) Investigation, auditing
c) Internal control, Internal check
d) Internal check, internal control
Ans. a
Q no. 75 Which term define “is the examination of the books of accounts of the
business by an external auditor and to report that the profit and loss account
and balance sheet are drawn according to provisions of law and the financial
statements reveal the true and fair view of the results of operations and financial
state of affairs of the business.
a) Internal audit
b) Investigation
c) Internal check
d) Statutory audit
Ans. d
a) 1,2,3
b) 1,3,4,5
c) 1,2,3,4,5
d) 2,3,4
Ans. c
Q no. 80 Which of the following means determining the fair value of the assets
shown in the Balance Sheet on the basis of generally accepted accounting
principles?
a) Valuation of assets
b) Verification of assets
c) Checking of assets
d) None of the above
Ans. a
Q no. 82 _________are those liabilities which may or may not arise in the future
for payment.
a) Current liabilities
b) Non-current liabilities
c) Contingent liabilities
d) None of the above
Ans. c
Q no. 84 Tax audits are required if a taxpayer's sales, turnover, or gross earnings
are more than ₹ _______in a given financial year.
a) 1 Crore
b) 2 Crore
c) 5 Crore
d) 10 Crore
Ans. a
a) 1 Crore
b) 2 Crore
c) 5 Crore
d) 10 Crore
Ans. c
Q no. 86 What is the due date of filing a tax audit report for domestic
companies?
a) 30th September
b) 31st October
c) 30th November
d) 31st December
Ans. a
Q no. 87 What penalty is imposed If a taxpayer who fails to comply with tax audit
provisions?
a) Rs 1,50,000
b) 5% of the total sales, turnover, or gross receipts
c) Rs 1,50,000 & 5% of the total sales, turnover, or gross receipts whichever
is least
d) Both a & b
Ans. c
Balance Sheet
1.On balance sheet, accruals, notes payable, and account payable are listed
under which category?
A) Current Liabilities
B) Accumulated Liabilities
C) Noncurrent Liabilities
D) Accrued Liabilities
6. In a balance sheet, the total of common stock and retained earnings are
denoted as______
A) Common Equity
B) Due Equity
C) Preferred Equity
D) Common Perpetuity
7. The process of recording inventory that gives a lower cost of a commodity sold
in an income statement is denoted as________
A) First Out Receivable
B) Last in First Out
C) Last Out Receivable
D) First in First Out
8. Financial securities which can be changed into cash to their book value price
are categorised as___________
A) Short-term Investments
B) Inventories
C) Long-term Investments
D) Cash Equivalents
9. Earnings that have a cumulative amount and are not paid to the stockholder
as a dividend is known as_______
A) Common Earnings
B) Preferred Earnings
C) Non-paid Earnings
D) Retained Earnings
13, “The verification of Assets implies an enquiry into the value, ownership
and title, existence and possession and the presence of any charge on the
assets”. This is defined by __________
(a) Spicer and Pegler
(b) J.R. Batliboi
(c) Luncaster
(d) None of these
22. Valuation is –
(a) An element of verification
(b) Essential part and element of verification
(c) Alternate of verification
(d) Verification is a part of valuation
23. When auditor has any doubt about the valuation of assets, he must
disclose this fact____
(a) To secretary
(b) To manager
(c) In his report
(d) None of the above
25.Valuation is a part of –
(a) Vouching
(b) Verification
(c) Internal control
(d) None of these
27. Case of London Oil Storage Co. Ltd. vs. Sear Hasluck Co. (1904) is
related to –
(a) Verification of Assets
(b) Valuation of Assets
(c) Verification of Liabilities
(d) None of these
45.Verification refers to –
(a) Examination of journal and ledger
(b) Examination of vouchers related to
(c) Examination of physical existence and valuation of assets
(d) Computation of value of assets
66. Main cause of over and under valuation of assets and liabilities iss –
(a) Errors of principles
(b) Clerical errors
(c) Fraudulent manipulation of accounts
(d) None of the above
71. When profit is inflated by making wrong valuation of stock, then profit
of succeeding year will –
(a) Decrease
(b) Increase
(c) No effect
(d) None of above
72. Material includes –
(a) Raw material
(b) Loose Tools
(e) By-product
(d) All above
83.Depreciation is charged on –
(a) Fixed assets only
(b) Current assets only
(c) Both fixed and current assets
(d) None of these
94. If cost price of a machine is Rs. 15,000; Scarp value is of Rs 3,000 and
expected life is 4 years, then amount of depreciation will be –
(a) Rs. 3750
(b) Rs. 3,000
(c) Rs. 8,000
(d) None of these
95. Which of the following fund is created for equalisation of dividend rate?
(a) Revenue Reserve
(b) Capital Reserve
(c) Sinking Fund
(d) None of these
96. Which of the following is the object of creating reserve the company –
(a) To make financial position strong of the company
(b) Increase in working capital
(c) Replacement of assets
(d) Both (a) and (b)
100. A reserve which is not apparent on the face of the balance sheet is –
(a) Secret reserve
(b) Capital reserve
(c) Revenue reserve
(d) Provision
107. “Secret reserves are also referred as hidden reserve or inner reserve”.
This is defined by –
(a) R.G. Williams
(b) De Paula
(c) Spicer and Peglar list
(d) None of these
108. A secret reserve is a reserve that is not disclosed in the Balance Sheet
so that the Financial position is, in fac better than appears from the
balance sheet.” This is defined by –
(a) R.G. Williams
(b) De Paula
(c) Spicer and Peglar
(d) None of these
ANSWERS :
1 A) Current Liabilities
3 B) Land
4 A) Preferred Stock
5 B) Account Payable
6 A) Common Equity
8 D) Cash Equivalents
9 D) Retained Earnings
10 A) Annual report
11 D) Financial audit
15 C Fulfilling statute
17 C) Goodwill
19 A) Lancaster
20 D) 5
23 C) In his report
25 B) Verification
27 A)Verification of assets
29 D)Stock
30 B)Secret reserve
32 A)Furniture
33 B)Temporarily
34 D)All the above
35 A)Purchase agreement
36 B) Trademark
40 A)Patents
41 C)Preliminary expenses
42 C) Inspection of securities
50 A)Cost price
51 A)Trade mark
52 C)Manager
53 D)Goodwill
54 A)D.paul
55 A)Cost price
56 A)Asset side
57 A)Coal mines
58 B)shares
60 B) specialists
61 B)Revaluation method
62 A)Revaluation
67 C)Both a & b
68 A)Mackson and Robbins
70 B)Stock
71 A)Decrease
74 C)Shares
76 B)Rs. 3,00,000
77 C)Both a & b
78 A)Carter
79 B)Depreciation fund
80 A)Use of asset
81 A)Life of asset
84 B)Compulsory
85 A)Statutory requirement
91 B)Revaluation method
92 A)General object
93 B)Specific object
94 B)Rs. 3,000
95 A)Revenue reserve
96 D)Both a & b
98 A)Reserve
99 B)Revenue reserve
104 C)prohibited
3) An internal auditor is :
(A) Verification.
(B) Marketing.
(D) Vouching.
working is known as :
8) Voucher relates to :
(A) Selling.
(C) Accounting.
(D) Purchases.
12) A good audit report must at least meet one of the following qualifications:
management.
13) The work of one clerk is automatically check by another clerk is called :
(B) Debtors.
(C) Shareholders.
15) Verification is :
(C) The act of establishing the accuracy of entries in the books of accounts.
Ans. : (C) The act of establishing the accuracy of entries in the books of
accounts.
(B) Different.
(A) Assets.
(B) Liabilities.
28) Which of the following statements is not true about continuous audit?
(C) It is needed when the organization has a good internal control system.
(D) It is expensive.
Ans. : (C) It is needed when the organization has a good internal control system.
(B) Vouching of income & expense accounts related to assets and liabilities.
31) When issuing unqualified opinion the auditor who evaluates the audit
findings
(B) Estimates of the total likely misstatement are less than materiality level.
(C) Estimated of the total likely misstatement is more than materiality level.
Ans. : (B) Estimates of the total likely misstatement are less than materiality
level.
(D) Accountancy
33) This kind of audit is generally conducted between two annual audits.
34) Before the work of audit is commenced, the auditor plans out the whole of
36) The audit that is made compulsory under the statute is called –
37) Who among the following can be appointed as the auditor of company?
38) ___ is documentary evidence by which the accuracy in the books of accounts
may be proved.
(A) Cheque
(B) Receipt
(C) Voucher
(D) Statement
39) Sale of Rs.50,000 to ‘A’ was entered as a sale to ‘B’. This is an example of –
be concerned with –
(C) Audit work to find out & check interim profits of a company
Ans. : (C) Audit work to find out & check interim profits of a company .
(A)Kingston Cotton Mill Case (B) London & General Bank Case
(C) Lee VS Neuchatel Co. LTD Case (D) London Oil Storage Co.LTDCase
(A) Cost
(A) Cashbook
(D)None of above.
(A) Shareholders
(A) Shareholders
(D) CAG
(A) Shareholders
(A) Shareholders
(B) Government
58) Shares issued for consideration other than cash should be vouched with help
of –
(A) Auditing techniques adopted by auditor for collecting & vouching evidences
Ans. : (A) Auditing techniques adopted by auditor for collecting & vouching
evidences.
(C) Registrar
(D) Shareholders
(A) 1912
(B) 1949
(C) 1956
(D) 1955.
63) Which of the following statements is not correct regarding removal of first
(D) The provision for such removal is contained in Section 224 (7)
Ans. : (C) The approval of central government is required for such removal
65) According to Section ___ Special Audit is conducted at the central government
67) Auditor of a _____ company does not have right to visit foreign branches of
company.
68) Cost Audit under Section 233(B) of The Company Act is _____
(A) Voluntary
(B) Compulsory
(C) Advisable.
(D) Avoidable
(A) Verification.
(B) Marketing.
(D) Vouching.
(D) Shareholders.
(A) Selling.
(C) Accounting.
(D) Purchases.
77) The work of one clerk is automatically check by another clerk is called :
(B) Debtors.
(C) Shareholders.
(A) Watchman.
81) This kind of audit is generally conducted between two annual audits.
(A) Internal audit
82) Before the work of audit is commenced, the auditor plans out the whole of
84) The audit that is made compulsory under the statute is called –
85) Who among the following can be appointed as the auditor of company?
86) ___ is documentary evidence by which the accuracy in the books of accounts
may be proved.
(A) Cheque
(B) Receipt
(C) Voucher
(D) Statement Ans. : (C) Voucher.
87) Sale of Rs.50,000 to ‘A’ was entered as a sale to ‘B’. This is an example of –
C) Compensating error
be concerned with –
D) Accounting system
(A) The auditor (B) The client (C) The audit assistants (D) Auditor & his assistants
(C) Audit work to find out & check interim profits of a company
Ans. : (C) Audit work to find out & check interim profits of a company .
(A) Cost
(A) Cashbook
(A) Shareholders
(A) Shareholders
(D) CAG
(A) Shareholders
(A) Shareholders
(B) Government
106) Shares issued for consideration other than cash should be vouched with
help
of –
(A) Auditing techniques adopted by auditor for collecting & vouching evidences
Ans. : (A) Auditing techniques adopted by auditor for collecting & vouching
evidences.
(C) Registrar
(D) Shareholders
a) All Public Companies with a paid up capital of eight crores rupees or more
b) All Public Companies with a paid up capital of seven crores rupees or
more
c) All Public Companies with a paid up capital of ten crores rupees or more
d) All Public Companies with a paid up capital of nine crores rupees or more
Ans C
QNo.3 The auditor appointed in the AGM meeting shall hold the office from the
conclusion of that meeting till the conclusion of the ___________Annual General
Meeting
a) Third
b) Fourth
c) Fifth
d) Sixth
QNo.4 In how many days, first Auditor of the Company other than Government
Company shall be appointed by the Board of the Directors from the date of its
registration?
QNo.5 In how many days, first Auditor of the Government Company shall be
appointed by the Comptroller and Auditor General from the date of its
incorporation?
QNo.6 In how many days, the subsequent auditor for existing government
companies shall be appointed by the Comptroller and Auditor General
a) Within 60 days
b) Within 120 days
c) Within 90 days
d) Within 180 days
Ans D
QNo.7 which section deals with eligibility and qualification of the Auditor?
a) Section 139
b) Section 141
c) Section 142
d) None of the above
Ans A
QNo.13 Which authority is empowered to fill up the casual vacancy of the Auditor
of the company whose accounts are subject to audit by an auditor appointed by
the Comptroller and Auditor General of India?
a) By Auditor-General of India
b) By the Board of the Directors
c) By the Whole Time Directors
d) By the Centre Government
Ans A
QNo.14 In which form, Auditor who has resigned from the company is required to
file a statement indicating the reasons and other facts as may be relevant with
regard to his resignation.
a) ADT-1
b) ADT-2
c) ADT-3
d) ADT-4
Ans C
QNo.15 what penalties shall be imposed upon the Auditor in case of failing to file
the statement in the form ADT-3 in cash of the resignation?
a) Monetary fine not less than Rs.50000/- and not more than Rs.500000/-
b) Monetary fine not less than Rs.40000/- and not more than Rs.400000/-
c) Monetary fine not less than Rs.30000/- and not more than Rs.300000/-
d) Monetary fine not less than Rs.20000/- and not more than Rs.200000/-
Ans A
QNo.17 the CAG shall have a right to the conduct a supplementary audit of
the financial statement of the company and comment upon or supplement such
audit report. In how many days audit report should be submitted by by the CAG?
QNo.19 If the auditor of a company, in the course of the performance of his duties
as Auditor has reason to believe that an offence involving fraud is being or has
been committed against the company by the officers or employees of the company.
In how many days, he shall report the matter to the Central Government
immediately.
a) Within 30 days
b) Within 45 days
c) Within 60 days
d) Within 90 days
Ans C
QNo.20 In which form, report of the fraud committed by the officers or employees
of the company shall be filed by the Auditor?
a) ADT-1
b) ADT-2
c) ADT-3
d) ADT-4
Ans D
QNo.21 Which section deals with Auditor not to render certain services (prohibited
services)?
a) Section 139
b) Section 142
c) Section 144
d) Section 146
Ans C
QNo.22 which section deal with signing of the Audit Report by the Auditor?
a) Section 145
b) Section 144
c) Section 139
d) Section 140
Ans A
QNo.23 Which section deal with cost Record and their Audit?
a) Section 144
b) Section 145
c) Section 146
d) Section 148
Ans D
QNo.24 In how many days, Every cost Auditor who conducts an audit of the cost
records of the company is required to submit the cost audit report along with his
or its reservations or qualifications to the Board of the Directors from the close of
the company’s financial year to which the report relates?
a) 60 days
b) 120 days
c) 180 days
d) 240 days
Ans C
QNo.25 In how many days, a company is required to furnish the cost audit report
to Central Government alongwith full information and explanation on every
reservation or qualification from the date of receipt of a cop of the cost audit report?
a) 30 days
b) 45 days
c) 60 days
d) 90 days
Ans A
QNo.26 how many new clauses have been added in the CARO 2020?
a) Two
b) Three
c) Four
d) Five
Ans D
a) Cash losses
b) Resignation of Auditor
c) CSR compliance
d) Company ability to meet its current liabilities in Auditor opinion based on
ratios, realizations and ageing
Ans C
a) Cash losses
b) Resignation of Auditor
c) CSR compliance
d) Company ability to meet its current liabilities in Auditor opinion based on
ratios, realizations and ageing
Ans A
a) Cash losses
b) Resignation of Auditor
c) CSR compliance
d) Company ability to meet its current liabilities in Auditor opinion based on
ratios, realizations and ageing
Ans B
a) Cash losses
b) Resignation of Auditor
c) CSR compliance
d) Company ability to meet its current liabilities in Auditor opinion based on
ratios, realizations and ageing
Ans D
a) 16
b) 18
c) 20
d) 21
Ans D
Cost Audit
1. Part C of the Annexure to the Cost Audit Report in CRA 3 deals with .
(A) Manufacturing Sector
(B) Service Sector
(C) Regulated Sector
(D) Unregulated Sector
6. As per the Central Excise Valuation Rule s 2000, the assessable value
of goods used for captive consumption is .
(A) at actual cost of production of such goods
(B) at marginal cost of production of such goods
(C) at 110% of cost of production of such goods
(D) at market price of such goods
14. Operational Audit can lead to better management with the focus on .
(A) Transaction-based analysis for Fraud Prevention
(B) Compliance of Rules
(C) Risk Identification, Process Improvement
(D) Budget Monitoring
19. In which CRA Form, is the Cost Audit Report of a company filed
with the Central Government?
(A) CRA-4
(B) CRA-3
(C) CRA-1
(D) CRA-2
21. As per the Cost Auditing Standard 101, the risk of Material
Misstatements has two components, viz______.
A) Inherent Risk and Control Risk
B) Detection Risk and Audit Risk
C) Material Risk and Implicit Risk
D) Financial Risk and Explicit Risk
22. As per Part D, Para 4 of the Companies (Cost Records and Audit) Rules,
2014, Value Addition and Distribution of Earnings are to be
computed based on
A) Audited Financial Data
B) Cost Record Data
C) Unaudited Financial Data
D) Both (A) and (B)
24. Which of the following is not a Professional Misconduct as per the First
Schedule of The CWA Act, 1959, in relation to the Cost Accountants
in Practice?
A) Pays or allows or agrees to pay or allow, directly or indirectly,
any share, commission or brokerage in the fees or profits of his/her
professional work, to any person other than a member of the
Institute or a partner or a retired partner or the legal
representative of a deceased partner
B) Enters into a partnership, in or outside India, with any person
other than a Cost Accountant in Practice or such other person
who is a member of any other professional body having such
qualifications as may be prescribed
C) Advertises his/her professional attainments or services or uses any
designation or expression other than Cost Accountant on
professional documents, visiting cards, letter heads or sign boards,
unless it is a degree of a University established by law in India or
recognised by the Central Government or a title indicating
membership of The ICAI or any other institution that has been
recognised by the Central Government or may be recognised by
the Council
D) Expresses his/ her opinion on cost or pricing statements of any
business or enterprise in which, he / she, his/her firm or a partner
in his / her firm has substantial interest
26. As per the CAS 23, the activity of Overburden Removal that benefits
the identified component of an ore to be mined by the entity is
called as______.
A) Mining Activity
B) Overburden Removal
C) Stripping Activity
D) Advance Stripping
A) Enables
B) Disables
C) Useful
D) None of these
33. The Cost Auditor appointed has to render the cost audit report
to the board of directors of the Company, as per the specified time
limit, in Form .
A) CRA-3
B) CRA – 1
C) XBRL
D) CRA – 2
37. The Central Govt. released the CCRA – Rules, 2014 in pursuance to
the powers vested with it U/ s_________ of the Companies Act,
2013
A) Section 469
B) Section 148
C) Section 465
D) Section 469 and 148
38. The CCRA – Rules, 2014 supersedes
A) Companies (Cost Accounting Records) Rules, 2011
B) Companies (Cost Audit Report) Rules, 2011
C) Cost Accounting Records (Telecommunication Industry) Rules, 2011
D) All the above
39. The provisions related to maintenance of cost records were introduced
in the year _________by amendment to the companies act, 1956.
(A) 1960
(B) 1965
(C) 1966
(D) 1970
41. The cost audit report under CCRA – Rules, 2014 is to be submitted in
---------------
A) Form – 3
B) Form – 4
C) Form – 1
D) Form – 2
42. The cost audit report under CCRA – Rules, 2014 is to be filed as an
attachment to ------
A) Form – 3
B) Form – 4
C) Form – 2
D) None of the above
51. Variances due to abnormal reasons form part of cost as per GACAP.
A) Will Not
B) Is
C) Are
D) Will
55. The procedures followed by the cost auditor to reduce the audit risk
to an acceptable level will not detect a misstatement that exists
and that could be material is .
A) Inherent risk
B) Detection risk
C) Control risk
D) None o f t hese
62. The cost auditing standards deal with the of the cost auditor.
A) Efficiency
B) Effectiveness
C) Qualifications
D) Responsibility
63. The cost auditor is E) for forming and expressing an opinion on
the cost statements.
A) Responsible
B) Reasonable
C) Irresponsible
D) Assessing
64. Which one of the following KPI is used to measure productivity &
efficiency a machinery
A) % of Idle time to total available time
B) Machine downtime ratio
C) Cost per of Break-Down Hour
D) Contribution per unit of material used
66. Which one of the following is covered under performance analysis report
A) Cost per unit of material used
B) Cost of utilities
C) Impact of IFRS on the Cost Structure
D) Impact of CAS and GACAP
A) Appraising
B) Calculating
C) Auditing
D) Planning
A) T. G. Rose
B) T. G. Tailors
C) M. C. Shukla
D) None of them
85. Who can be appointed as Internal Auditor as per the Companies Act,
2013
A) A Chartered Accountant
B) A Cost Accountant
C) Such other professional
D) All of the above
93. Aspects may be taken into consideration for proper inventory control
A) Maximum, minimum and reorder level fixation
B) Fixed order quantity system and different replenishment systems
C) Fast moving, slow moving and non-moving analysis etc
D) All of the above
97. Field Balance Sheet Approach to audit can be applied in case of audit
of the__
A) Co-Operative societies
B) Local Body Corporate
C) Self-Help Group
D) Club
98. Under ‘propriety audit’, the auditors try to bring out what type of
expenditure:
A) Improper
B) Avoidable
C) In fructuous
D) All of the above
102. C&AG has right to direct the manner in which the company’s
accounts shall be audited by the auditor and to give such auditor
instructions in regard to any matter relating to the performance of his
functions as per section
A) 44AB of income Tax
B) 143 of the Companies Act, 2013
C) 173 of the Companies Act, 2013
D) 134 of the Companies Act, 2013
105. The government also engages in commercial activities and for the
purpose it may incorporate type of entities.
A) Five
B) Three
C) Many
D) Various
110. Which one of the following costs appeared only in Cost Accounts?
A) Interest on mortgage and loans
B) Notional Interest on Capital
C) Dividend equalization fund, sinking, fund etc.
D) Loss due to scrapping of plan and machinery
(B)₹89000
(C)₹99000
(D) ₹98000
112. The Balance Sheet of X Ltd As on 31st Marc h 2017 showed the following
information:
Capital - ₹1500 lacs, Reserves - ₹696 lacs, Loans - ₹600 lacs, Sundry
Creditors ₹774 lacs, Total assets - ₹3570 lacs. For the year 16-17, PBT
- ₹900 lacs, Provision for tax is ₹ 360 lacs and proposed dividend is
₹300 lacs. Return on Networth is:
(A) 30.41 %
(B) 29.41 %
(C) 28.41 %
(D) 27.41%
115. Gross Sales ₹16500 lacs, Excise Duty ₹1240 lacs, Increase in stock ₹42
lacs,Cost of raw materials ₹6250 lacs, Power ₹2220 lacs, other overhe
ads ₹215 lacs, Value Added is:
(A) ₹15260 Lac
(B) ₹6617 Lac
(C) ₹6533 Lac
(D) ₹15302 lac
116. Rule 4 of the Companies (Cost Records and Audit) Rules, 2014 deals
with:
A) Application of Cost Records
B) Application of Cost Audit
(C)Appointment of Cost Auditor
(D) Cost Audit Report
123. Rule 6 of the Companies (Cost Records and Audit) Rules, 2014 deals
with:
A) Application of Cost Records
B) Application of Cost Audit
C) Appointment of Cost Auditor
D) Cost Audit Report
125. Any casual vacancy in the office of a cost auditor, shall be filled
by the Board of Directors within days of occurrence of such
vacancy.
(A) 180
(B) 90
(C) 30
(D) 60
132. Before submission to the Auditor for Report, the Form CRA 3 should
be signed by________ .
A) The Secretary and the Chief Finance Officer of the company
B) The Secretary and the Cost Accounts Officer of the company
C) The Secretary and one Director of the company
D) The Chief Finance Officer and the Managing Director of the company
134. The useful life of an intangible asset, like amount paid on technic
al knowhow, shall not exceed from the date it is available for use.
A) 5 years
B) 8 years
C) 10 years
D) 12 years
138. Which of the following ratios appears as Profit ability Ratio in Part D
of Annexure to the Cost Audit Report ?
A) Net Profit to Net Sale
B) Value added to Net Sales
C) Profit before Tax to Value Added
D) Net Profit to Share Capital
142. The figures below are available for Reliable Ltd Budgeted
production - 800 units, Standard hours per unit 25, Actual
production 576 units and actual working— 12000 hours. What is the
Efficiency Ratio?
(A) 110%
(B) 120%
(C) 100%
(D) 125%
143. Machinery used in defense, space and atomic energy sector and
fulfilling turnover criteria is under
A) regulated sector
B) unregulated sector
C) exempted by different statute
D) not applicable category
145. The abridged cost statement (CRA 3) need not be separate for
A) each product with separate (CTA) CETA heading
B) each product having separate industry specific expenses
C) each product having different unit of measure
D) self/captive consumption of each product
148. SHYAN LTD. has a machine of productive capacity of 1500 unit per
hour. It runs 3 shifts with 1 weekly off and 12 holidays per year, each
shift has one hour stoppage due to lunch, change shift etc
Maintenance is done in running time. The Normal Capacity of the
plant as per CAS-2 will be
A) 131.40 lakh units
B) 94.815 lakh units
C) 108.36 lakh units
D) None of the above
149. BORS & Co., a firm of Cost Accountants was appointed as Cost Auditor
of PANTEX LTD on 31.07.2018 for auditing the cost records for the
FY 2018-19. The Auditor appointed as such shall continue in such
capacity upto______
A) 31.07.2019, on expiry of one year of appointment
B) 30.09.2019, on expiry of six months from close of accounts
C) 30.08.2019, date of submission date of Cost Audit Report
D) 15.09.2019, date of holding of Annual General Meeting of PANTEX
LTD
153. Once the instance document is successfully validated from the tool, the
next step is to_____
A) download XBRL validation tool
B) pre-scrutinize the validated instance document
C) convert to human readable format and verify correctness of the
instance document
D) attach instance document to the Form CRA-4
(4) (C) All listed companies and those prescribed under the Companies (Meetings of
Board and its Powers) Rules only
(18) (D) In the opinion of the Council, he / she brings disrepute to the
Profession or the
(54) (C) Guide the members to make planning for the audit of cost statement
62 (D) Responsibility
(125) (C) 30