ACCOUNTANCY- PAGE 1
1:-Goodwill is an example of
A:-Tangible asset
B:-Intangible asset
C:-Wasting asset
D:-Fictitious asset
Ans: A
2:-L. F. column in the journals is filled at the time of __________
A:-Journalising
B:-Posting
C:-Balancing
D:-Trial balance
Ans: B
3:-The double entry system of book keeping was developed by
A:-Stevenson
B:-Wilson
C:-Luca Paciolo
D:-Churchil
Ans: C
4:-Purchase of machinery on credit is recorded in
A:-Sales day book
B:-Journal proper
C:-Purchase day book
D:-Purchase return book
Ans: B
5:-Goods returned by customers are recorded in
A:-Sales book
B:-Purchase book
C:-Purchases return book
D:-Sales return book
Ans: D
6:-On 1st January 2003, Ravi draws a bill on Somu for 3 months, its due date is
A:-31st March 2003
B:-1st April 2003
C:-4th April 2003
D:-10th April 2003
Ans: C
7:-The balance of cash book indicates
A:-Net income
B:-Cash in hand
C:-Difference between debtors and creditors
D:-None of the above
Ans: B
8:-Goods taken by the proprietor for domestic use should be credited to
A:-Proprietor's drawings account
B:-Sales account
C:-Purchase account
D:-None of the above
Ans: C
9:-Source document for material transfer from one department to another is
A:-Invoice
B:-Credit note
C:-Material transfer note
D:-Debit note
Ans: C
10:-In which year the audit of companies in India was made compulsory ?
A:-1911
B:-1931
C:-1913
D:-1948
Ans: C
11:-Which of the following highlights the correct order of the stages in the accounting cycle ?
A:-Journalizing, final accounts, posting to the ledger and trial balance
B:-Journalizing, posting to the ledger, trial balance and final accounts
C:-Posting to the ledger, trial balance, final accounts and journalizing
D:-Posting to the ledger, journalizing, final accounts and trial balance
Ans: B
12:-Unearned Revenues is what type of account ?
A:-Liability
B:-Owners equity
C:-Asset
D:-None of the above
Ans: C
13:-Accounting entries involve a minimum _________ accounts.
A:-One
B:-Three
C:-Two
D:-Five
Ans: C
14:-Stock in trade are to be recorded at cost or market price whichever is less is based on __________ principle.
A:-Going concern
B:-Money measurement
C:-Cost concept
D:-Conservatism
Ans: D
15:-Accounting is the process of matching.
A:-Revenue and costs
B:-Benefits and cost
C:-Cash inflow and out flow
D:-Potential and real performance
Ans: B
16:-Which of the following event is subject matter of accounting ?
A:-Death of the manager of the company
B:-Strike of employees
C:-Marriage of daughter of MD of the company
D:-Payment of Salary Rs. 5,000
Ans: D
A:-Tangible asset
B:-Intangible asset
C:-Wasting asset
D:-Fictitious asset
Ans: A
2:-L. F. column in the journals is filled at the time of __________
A:-Journalising
B:-Posting
C:-Balancing
D:-Trial balance
Ans: B
3:-The double entry system of book keeping was developed by
A:-Stevenson
B:-Wilson
C:-Luca Paciolo
D:-Churchil
Ans: C
4:-Purchase of machinery on credit is recorded in
A:-Sales day book
B:-Journal proper
C:-Purchase day book
D:-Purchase return book
Ans: B
5:-Goods returned by customers are recorded in
A:-Sales book
B:-Purchase book
C:-Purchases return book
D:-Sales return book
Ans: D
6:-On 1st January 2003, Ravi draws a bill on Somu for 3 months, its due date is
A:-31st March 2003
B:-1st April 2003
C:-4th April 2003
D:-10th April 2003
Ans: C
7:-The balance of cash book indicates
A:-Net income
B:-Cash in hand
C:-Difference between debtors and creditors
D:-None of the above
Ans: B
8:-Goods taken by the proprietor for domestic use should be credited to
A:-Proprietor's drawings account
B:-Sales account
C:-Purchase account
D:-None of the above
Ans: C
9:-Source document for material transfer from one department to another is
A:-Invoice
B:-Credit note
C:-Material transfer note
D:-Debit note
Ans: C
10:-In which year the audit of companies in India was made compulsory ?
A:-1911
B:-1931
C:-1913
D:-1948
Ans: C
11:-Which of the following highlights the correct order of the stages in the accounting cycle ?
A:-Journalizing, final accounts, posting to the ledger and trial balance
B:-Journalizing, posting to the ledger, trial balance and final accounts
C:-Posting to the ledger, trial balance, final accounts and journalizing
D:-Posting to the ledger, journalizing, final accounts and trial balance
Ans: B
12:-Unearned Revenues is what type of account ?
A:-Liability
B:-Owners equity
C:-Asset
D:-None of the above
Ans: C
13:-Accounting entries involve a minimum _________ accounts.
A:-One
B:-Three
C:-Two
D:-Five
Ans: C
14:-Stock in trade are to be recorded at cost or market price whichever is less is based on __________ principle.
A:-Going concern
B:-Money measurement
C:-Cost concept
D:-Conservatism
Ans: D
15:-Accounting is the process of matching.
A:-Revenue and costs
B:-Benefits and cost
C:-Cash inflow and out flow
D:-Potential and real performance
Ans: B
16:-Which of the following event is subject matter of accounting ?
A:-Death of the manager of the company
B:-Strike of employees
C:-Marriage of daughter of MD of the company
D:-Payment of Salary Rs. 5,000
Ans: D
17:-Which of the following cannot be a cause for debiting bank account ?
A:-Cheques deposited for collection
B:-Cheque sent to bank dishonoured
C:-Paid into bank
D:-Cheque given to suppliers dishonoured
Ans: B
18:-The word 'audit' is derived from the Latin word audire which means
A:-To check
B:-Verify
C:-Watch dog
D:-To hear
Ans: D
19:-_____________ audit is conducted by the employees of the business itself.
A:-Independent audit
B:-Statutory audit
C:-Internal audit
D:-Government audit
Ans: C
20:-_____________ is auditors plan of action.
A:-Audit note book
B:-Audit working papers
C:-Audit programme
D:-Audit files
Ans: C
21:-Which of the following is illegal ?
A:-Tax planning
B:-Tax avoidance
C:-Tax evasion
D:-All of them
Ans: C
22:-Some times a person deducts tax at source but does not deposit it in government treasury, such person is called
A:-Ordinary assessee
B:-Deemed assessee
C:-Assessee in default
D:-None of these
Ans: C
23:-What will be the previous year in the case of assesse who closes his accounts on 31-3-2006 ?
A:-2004-2005
B:-2005-2006
C:-2006-2007
D:-2003-2005
Ans: B
24:-An individual is considered as Resident u/s 6(1) if he was India for a period ________ days or more in the previous year.
A:-60 days
B:-180 days
C:-365 days
D:-182 days
Ans: D
A:-Cheques deposited for collection
B:-Cheque sent to bank dishonoured
C:-Paid into bank
D:-Cheque given to suppliers dishonoured
Ans: B
18:-The word 'audit' is derived from the Latin word audire which means
A:-To check
B:-Verify
C:-Watch dog
D:-To hear
Ans: D
19:-_____________ audit is conducted by the employees of the business itself.
A:-Independent audit
B:-Statutory audit
C:-Internal audit
D:-Government audit
Ans: C
20:-_____________ is auditors plan of action.
A:-Audit note book
B:-Audit working papers
C:-Audit programme
D:-Audit files
Ans: C
21:-Which of the following is illegal ?
A:-Tax planning
B:-Tax avoidance
C:-Tax evasion
D:-All of them
Ans: C
22:-Some times a person deducts tax at source but does not deposit it in government treasury, such person is called
A:-Ordinary assessee
B:-Deemed assessee
C:-Assessee in default
D:-None of these
Ans: C
23:-What will be the previous year in the case of assesse who closes his accounts on 31-3-2006 ?
A:-2004-2005
B:-2005-2006
C:-2006-2007
D:-2003-2005
Ans: B
24:-An individual is considered as Resident u/s 6(1) if he was India for a period ________ days or more in the previous year.
A:-60 days
B:-180 days
C:-365 days
D:-182 days
Ans: D
25:-Revenue - Expense =
A:-Asset
B:-Income
C:-Liability
D:-None of the above
Ans: B
26:-_____________ is a brief history of financial transaction of a particular person or item.
A:-Account
B:-Balance Sheet
C:-Journal
D:-Source document
Ans: A
27:-If both the aspects of the same transaction are appearing in one account it is ________.
A:-Contra entry
B:-Compound entry
C:-Simple entry
D:-One sided error
Ans: A
28:-Asset minus liability is ______________
A:-Capital
B:-Drawings
C:-Credit
D:-Debit
Ans: A
29:-Amount spend in order to produce and sell goods and service is called ___________
A:-Expense
B:-Income
C:-Revenue
D:-Asset
Ans: A
30:-Going concern assumption tell us the life of business is __________
A:-Very long
B:-Very short
C:-Less than one year
D:-For one year
Ans: A
31:-Money spent to upgrade machinery is known as
A:-Revenue expense
B:-Capital expense
C:-Deferred revenue expenditure
D:-Administrative expense
Ans: B
32:-Goods of Rs. 1,000 purchased from Mr. "A" were recorded in sales book. The rectification of this error will
A:-Increase the gross profit
B:-Reduce the gross profit
C:-Have no effect on gross profit
D:-None of the given options
Ans: B
33:-An amount of Rs. 5,000 received from Mr. "A" but credited to Mr. "B" would affect
A:-Only B's account
B:-Only cash account
C:-Only A's account
D:-Accounts of A and B
Ans: D
34:-What will be debited, if Anup commenced business with cash ?
A:-Capital account
B:-Cash account
C:-Proprietors account
D:-Drawings account
Ans: B
35:-Which among the following is not an element of computer system ?
A:-Hardware
B:-Software
C:-People
D:-Malware
Ans: D
36:-Withdrawal by proprietor would
A:-Reduces assets and increases liabilities
B:-Have no effect on the Balance Sheet
C:-Reduces owners equity and increases assets
D:-Reduces both assets and owners equity
Ans: D
37:-Any expense that gives benefit for a period of less than twelve months is called ______
A:-Deferred expense
B:-Revenue expense
C:-Revenue receipt
D:-Capital expense
Ans: C
38:-Prepaid rent given in the Trial Balance will be treated as a
A:-Liability
B:-Asset
C:-Income
D:-Expense
Ans: B
39:-If asset is 1,50,000 and owners equity is 45,000 then liability is
A:-50,000
B:-1,95,000
C:-1,05,000
D:-50,000
Ans: C
40:-Sale of goods to Manoj is wrongly debited to Madhu A/c instead of Manoj A/c. Both are debtors of business, this is an example of
A:-Error of omission
B:-Error of commission
C:-Error of principle
D:-Compensating error
Ans: B
A:-Asset
B:-Income
C:-Liability
D:-None of the above
Ans: B
26:-_____________ is a brief history of financial transaction of a particular person or item.
A:-Account
B:-Balance Sheet
C:-Journal
D:-Source document
Ans: A
27:-If both the aspects of the same transaction are appearing in one account it is ________.
A:-Contra entry
B:-Compound entry
C:-Simple entry
D:-One sided error
Ans: A
28:-Asset minus liability is ______________
A:-Capital
B:-Drawings
C:-Credit
D:-Debit
Ans: A
29:-Amount spend in order to produce and sell goods and service is called ___________
A:-Expense
B:-Income
C:-Revenue
D:-Asset
Ans: A
30:-Going concern assumption tell us the life of business is __________
A:-Very long
B:-Very short
C:-Less than one year
D:-For one year
Ans: A
31:-Money spent to upgrade machinery is known as
A:-Revenue expense
B:-Capital expense
C:-Deferred revenue expenditure
D:-Administrative expense
Ans: B
32:-Goods of Rs. 1,000 purchased from Mr. "A" were recorded in sales book. The rectification of this error will
A:-Increase the gross profit
B:-Reduce the gross profit
C:-Have no effect on gross profit
D:-None of the given options
Ans: B
33:-An amount of Rs. 5,000 received from Mr. "A" but credited to Mr. "B" would affect
A:-Only B's account
B:-Only cash account
C:-Only A's account
D:-Accounts of A and B
Ans: D
34:-What will be debited, if Anup commenced business with cash ?
A:-Capital account
B:-Cash account
C:-Proprietors account
D:-Drawings account
Ans: B
35:-Which among the following is not an element of computer system ?
A:-Hardware
B:-Software
C:-People
D:-Malware
Ans: D
36:-Withdrawal by proprietor would
A:-Reduces assets and increases liabilities
B:-Have no effect on the Balance Sheet
C:-Reduces owners equity and increases assets
D:-Reduces both assets and owners equity
Ans: D
37:-Any expense that gives benefit for a period of less than twelve months is called ______
A:-Deferred expense
B:-Revenue expense
C:-Revenue receipt
D:-Capital expense
Ans: C
38:-Prepaid rent given in the Trial Balance will be treated as a
A:-Liability
B:-Asset
C:-Income
D:-Expense
Ans: B
39:-If asset is 1,50,000 and owners equity is 45,000 then liability is
A:-50,000
B:-1,95,000
C:-1,05,000
D:-50,000
Ans: C
40:-Sale of goods to Manoj is wrongly debited to Madhu A/c instead of Manoj A/c. Both are debtors of business, this is an example of
A:-Error of omission
B:-Error of commission
C:-Error of principle
D:-Compensating error
Ans: B
41:-The total of all direct expenses is known as
A:-Over head
B:-Prime cost
C:-Work cost
D:-Cost of production
Ans: B
42:-__________ is that segment of activity of a business which is responsible for both revenue and expenses.
A:-Cost centre
B:-Profit centre
C:-Work centre
D:-Development centre
Ans: B
43:-Work cost = __________ + factory overhead.
A:-Prime cost
B:-Administration overheads
C:-Selling overhead
D:-Distribution overhead
Ans: A
44:-__________ type of costing is used to ascertain the effect of changes in volume or type of out put on profit.
A:-Marginal costing
B:-Uniform costing
C:-Direct costing
D:-Standard costing
Ans: A
45:-_______ is an irrecoverable cost and is caused by complete abandonment of a plant.
A:-Sunk cost
B:-Imputed cost
C:-Differential cost
D:-Marginal cost
Ans: A
A:-Over head
B:-Prime cost
C:-Work cost
D:-Cost of production
Ans: B
42:-__________ is that segment of activity of a business which is responsible for both revenue and expenses.
A:-Cost centre
B:-Profit centre
C:-Work centre
D:-Development centre
Ans: B
43:-Work cost = __________ + factory overhead.
A:-Prime cost
B:-Administration overheads
C:-Selling overhead
D:-Distribution overhead
Ans: A
44:-__________ type of costing is used to ascertain the effect of changes in volume or type of out put on profit.
A:-Marginal costing
B:-Uniform costing
C:-Direct costing
D:-Standard costing
Ans: A
45:-_______ is an irrecoverable cost and is caused by complete abandonment of a plant.
A:-Sunk cost
B:-Imputed cost
C:-Differential cost
D:-Marginal cost
Ans: A
46:-The financial statement that reports the assets, liabilities and stockholder's (owner's) equity at a specific date is the
A:-Balance Sheet
B:-Income Statement
C:-Statement of Cash Flows
D:-Trading Account
Ans: A
47:-Under the accrual basis of accounting, revenues are reported in the accounting period when the
A:-Cash is received
B:-Service or goods have been delivered
C:-Cash paid
D:-Stock is reduced
Ans: B
48:-Accounting begins where ________________ ends.
A:-Book keeping
B:-Balance sheet
C:-Journal
D:-Trial balance
Ans: A
49:-Creditors are shown on the ____________ side of balance sheet.
A:-Asset
B:-Liability
C:-Debit
D:-Credit
Ans: B
50:-Which type of audit is conducted throughout the year ?
A:-Annual audit
B:-Interim audit
C:-Complete audit
D:-Continuous audit
Ans: D
51:-__________ is the examination by the auditor documentary evidences relating to the recording of transactions in support and thus cheeks the authenticity of such records.
A:-Vouching
B:-Confirming
C:-Footing
D:-Physical examination
Ans: A
52:-The method of costing used in a refinery is
A:-Process costing
B:-Job costing
C:-Service costing
D:-Batch costing
Ans: A
53:-In automobile industry, cost unit is
A:-Batch
B:-Tonne
C:-Number
D:-None of these
Ans: C
54:-Under ____________ costing it is the practice of charging all costs, both variable and fixed to operations, process or products.
A:-Absorption costing
B:-Direct costing
C:-Standard costing
D:-Marginal costing
Ans: A
55:-________ is the advantage, in measurable terms, which has been forgone due to not using the facility in the manner originally planned.
A:-Notional cost
B:-Differential cost
C:-Opportunity cost
D:-Replacement cost
Ans: C
56:-Under cost accounting stocks are valued at
A:-Cost price or market price whichever is less
B:-Market price
C:-Replacement price
D:-Cost price
Ans: D
57:-A set of programmes designed in such a way that they perform certain supporting operations in computer like format a disk, duplicate a disk, physically recognise stored data and programmes is called
A:-Application software
B:-System software
C:-Connecting software
D:-Utility software
Ans: D
58:-Contingent liabilities are shown as foot note in the balance sheet as per ______ accounting principle.
A:-Full disclosure
B:-Objectivity
C:-Materiality
D:-Consistency
Ans: A
59:-Depreciation accounting is __________ as per accounting standard issued by ICAI.
A:-Accounting standard 1
B:-Accounting standard 10
C:-Accounting standard 20
D:-Accounting standard 6
Ans: D
60:-__________ is a fictitious asset.
A:-Under writing commission
B:-Oil field
C:-Plant and machinery
D:-Patent
Ans: A
A:-Balance Sheet
B:-Income Statement
C:-Statement of Cash Flows
D:-Trading Account
Ans: A
47:-Under the accrual basis of accounting, revenues are reported in the accounting period when the
A:-Cash is received
B:-Service or goods have been delivered
C:-Cash paid
D:-Stock is reduced
Ans: B
48:-Accounting begins where ________________ ends.
A:-Book keeping
B:-Balance sheet
C:-Journal
D:-Trial balance
Ans: A
49:-Creditors are shown on the ____________ side of balance sheet.
A:-Asset
B:-Liability
C:-Debit
D:-Credit
Ans: B
50:-Which type of audit is conducted throughout the year ?
A:-Annual audit
B:-Interim audit
C:-Complete audit
D:-Continuous audit
Ans: D
51:-__________ is the examination by the auditor documentary evidences relating to the recording of transactions in support and thus cheeks the authenticity of such records.
A:-Vouching
B:-Confirming
C:-Footing
D:-Physical examination
Ans: A
52:-The method of costing used in a refinery is
A:-Process costing
B:-Job costing
C:-Service costing
D:-Batch costing
Ans: A
53:-In automobile industry, cost unit is
A:-Batch
B:-Tonne
C:-Number
D:-None of these
Ans: C
54:-Under ____________ costing it is the practice of charging all costs, both variable and fixed to operations, process or products.
A:-Absorption costing
B:-Direct costing
C:-Standard costing
D:-Marginal costing
Ans: A
55:-________ is the advantage, in measurable terms, which has been forgone due to not using the facility in the manner originally planned.
A:-Notional cost
B:-Differential cost
C:-Opportunity cost
D:-Replacement cost
Ans: C
56:-Under cost accounting stocks are valued at
A:-Cost price or market price whichever is less
B:-Market price
C:-Replacement price
D:-Cost price
Ans: D
57:-A set of programmes designed in such a way that they perform certain supporting operations in computer like format a disk, duplicate a disk, physically recognise stored data and programmes is called
A:-Application software
B:-System software
C:-Connecting software
D:-Utility software
Ans: D
58:-Contingent liabilities are shown as foot note in the balance sheet as per ______ accounting principle.
A:-Full disclosure
B:-Objectivity
C:-Materiality
D:-Consistency
Ans: A
59:-Depreciation accounting is __________ as per accounting standard issued by ICAI.
A:-Accounting standard 1
B:-Accounting standard 10
C:-Accounting standard 20
D:-Accounting standard 6
Ans: D
60:-__________ is a fictitious asset.
A:-Under writing commission
B:-Oil field
C:-Plant and machinery
D:-Patent
Ans: A
61:-The first stock exchange in India to have a screen based automated ring less trading screen
A:-IDBI B:-UTI
C:-OTCEI D:-IFCI
Ans: C
62:-The market for a very short period loan is called
A:-Money market B:-Collateral loan market
C:-Call money market D:-Bill market
Ans: C
63:-The panel at the top of MS-Word document is called
A:-Menu B:-Ribbon C:-Programme D:-Taskbar
Ans: A
64:-The combination of a column coordinate and a row co-ordinate make up a
A:-column address B:-cell address C:-row address D:-none of these
Ans: B
65:-DBMS means
A:-Data Base Maintenance System B:-Data Base Module System
C:-Data Base Monitoring System D:-None of these
Ans: D
66:-What is used to retrieve specific data from a database and to answer s about the date in MS ACCESS?
A:-Tables B:-Forms C:-Queries D:-Reports
Ans: C
67:-Which one is used to transfer a webpage to user's computer?
A:-HTTP B:-FTP
C:-XML D:-HLL
Ans: B
68:-The altering of data so that it is not usable unless the changes are undone is
A:-Bio-metrics B:-Encryption C:-Ergonomics D:-Compression
Ans: B
69:-VIRUS stands for
A:-Very Intelligent Result Until Source B:-Vital Information Resources Under Seize
C:-Viral Important Record User Searched D:-Very Interchanged Resource Under Search
Ans: B
70:-Which short cut key is used for calculator in Tally?
A:-CTRL + P B:-CTRL + C C:-CTRL + N D:-CTRL + A
Ans: C
71:-__________ is that which meets the tests of public interest, commonly accepted customs and standards of conduct.
A:-Propriety audit B:-Operational audit C:-Efficiency audit D:-Special audit
Ans: A
72:-Wages tribunals may order cost audit for a certain industrial unit to settle industrial disputes relating to higher wages, bonus etc. this is a type of External Audit of the form ________.
A:-Cost audit on behalf of the government B:-Cost audit on behalf of the customers or consumers
C:-Cost audit on behalf of the trade associations D:-None of the above
Ans: D
73:-The auditor _____
A:-Should distribute the audit work among his subordinates
B:-Should assign difficult and technical works to senior clerks and easy and simple jobs to junior clerks
C:-Should not distribute his work among his subordinates as it is confidential
D:-Both (1) and (2) is true
Ans: D
74:-A firm can reduce the needed cash balance if it can move the cash disbursement and cash collections into the same cash flow cycle. This is known as __________.
A:-Accelerating Cash Receipts B:-Synchronizing Cash Flows
C:-Delaying Disbursements D:-All of the above
Ans: B
75:-_________ contains a copy of the audit program, audit tests, performed, a copy of trial balance, a copy of the annual final accounts. A:-Permanent file B:-Current file C:-None of the above D:-Both (1) and (2)
Ans: B
76:-____________ is a built-in part of the accounting system under which the work of one employee is automatically checked by another employee.
A:-Internal Audit B:-Internal Check
C:-Internal Control D:-External Audit
Ans: B
77:-__________ is a technical term which refers to the inspection by the auditor of documentary evidence supporting and substantiating a transaction.
A:-Vouching B:-Checking C:-Auditing D:-None of the above
Ans: A
78:-Misfeasance is a ___________ of a Company Auditor.
A:-Civil Liability B:-Criminal Liability C:-Statutory Duty D:-Contractual Duty
Ans: A
79:-Among the following statements with regard to redeemable preference shares __________ is not true.
A:-The articles of association of the company should provide for the redemption of these shares
B:-They can be redeemed only out of profits of the company which would be otherwise available for dividend
C:-Fully and partly paid shares can be redeemed
D:-Any premium paid on the redemption must be paid either out of the company's share premium account or out of the profits of the company
Ans: C
80:-When an auditor is satisfied with the affairs of the company and the fairness of the balance sheet and profit and loss account of the concern, he gives a _________ report.
A:-Unqualified Report B:-Clean Report C:-Qualified report D:-Both (1) or (2)
Ans: D
81:-Municipal taxes in the following cases are deductible from the gross annual value of a property under sec. 23
A:-Municipal taxes paid during the year for the current year B:-Municipal taxes paid during the year for the previous year C:-Municipal taxes paid during the year for the future period D:-All of the above
Ans: D
82:-When an assessee uses an asset which was earlier used for scientific research related to business, the cost of asset will be equal to A:-The amount left after reducing the cost of research
B:-The amount left after reducing the amount allowed as deduction for depreciation earlier
C:-The amount of cost including the installation cost
D:-None of the above
Ans: B
83:-The transfer of one or more undertakings or assets for a lump-sum consideration without valuing the assets and liabilities individually is known as __________.
A:-Slump Sale B:-Pooling Purchase C:-Bulk Sale D:-Both (1) and (3)
Ans: A
84:-Interest on income by way of winnings from horse race is tax deducted at source @ 30% in the following case.
A:-The person is a resident in India B:-The person is not a resident in India
C:-Any other person D:-All of the above
Ans: D
85:-By virtue of sections 60 to 65 of the income tax act, clubbing of income is not done under the following situation.
A:-Income from assets transferred with a condition of revocation
B:-Income of spouse
C:-Income of daughter in law from an asset transferred to her without consideration
D:-Income of physically handicapped minor
Ans: D
86:-Short term capital loss can be set off against __________.
A:-Short term Capital gains
B:-Long term Capital gains
C:-Short term and Long term Capital gains
D:-None of the above
Ans: C
87:-The following deductions are made to calculate the Gross Total Income of an assessee
A:-Sum paid to LIC under annuity plan
B:-Subscription to equity shares of a public company which is an eligible issue of capital approved by the Board
C:-Brought forward losses
D:-Both (1) and (2)
Ans: C
88:-Donations to the following cases are not fully deductible
A:-National Defence Fund B:-ZilaSakshartaSamiti
C:-Swatch Bharat Kosh D:-Prime Minister's Drought Relief Fund
Ans: D
89:-The following income is fully considered as agricultural income _________.
A:-Growing and manufacturing of tea B:-Growing and manufacturing or rubber
C:-Sale of green tea leaves D:-Sale of rubber processed from own rubber plants
Ans: C
90:-The following statement is false
A:-Employer's contribution to the Recognized Provident Fund up to 12% of salary is not taxable
B:-Education Allowance is exempt up to Rs. 100 per child, maximum of two children
C:-Income on units of Mutual Fund is exempt up to 50%
D:-Donation to National Foundation for Communal Harmony is eligible for 100% deduction without limit
Ans: C
91:-Imputed costs are _______.
A:-Cost of replacing an old asset B:-Cost which can be eliminated
C:-Cost which is a past cost D:-Cost which is hypothetical
Ans: D
92:-The following are tools for implementing Kaizen Costing I. Stratification II. Pareto chart III. Cost Driver IV. All of the above
A:-I and III B:-II and III C:-I and II D:-IV
Ans: C
93:-Out of the following support activities of a company, the following can be associated with specific primary activities __________. I. Procurement II. Human Resource Management III. Firm Infrastructure IV. Technology development
A:-I, II and III B:-I, II and IV C:-II, III and IV D:-I, II, III and IV
Ans: B
94:-__________ is not a characteristic of Process costing.
A:-Production is continuous B:-Products are not distinguishable in processing stage
C:-Production is not for stock D:-Cost is ascertained at the end of cost period
Ans: C
95:-In the coke industry, the Benzol produced is a
A:-By product B:-Main product C:-Joint product D:-None of the above
Ans: A
96:-__________ can be attained under the most favourable conditions.
A:-Basic standards B:-Current standards C:-Expected standards D:-Ideal Standards
Ans: D
97:-Find labour efficiency variance. Std. hours - 3000 Std. rate of wages Rs. 200 Actual rate of wages Rs. 250 Actual hours - 2000 A:-2,00,000 B:-1,00,000 C:-(-) 1,00,000 D:-3,00,000
Ans: A
98:-Under the following plan, the worker gets wages for actual hours worked and a bonus for the time saved.
A:-Emerson's efficiency plan B:-Halsey-Weir plan
C:-Rowan premium plan D:-Taylor's differential piece rate system
Ans: C
99:-__________ determines the ratio in which the total long term capital is contributed by different sources.
A:-Capitalisation B:-Capital structure C:-Financial Structure D:-All of the above
Ans: B
100:-__________ explains business risk.
A:-Operating Leverage B:-Financial Leverage
C:-Combined Leverage D:-All of the above
Ans: A
A:-IDBI B:-UTI
C:-OTCEI D:-IFCI
Ans: C
62:-The market for a very short period loan is called
A:-Money market B:-Collateral loan market
C:-Call money market D:-Bill market
Ans: C
63:-The panel at the top of MS-Word document is called
A:-Menu B:-Ribbon C:-Programme D:-Taskbar
Ans: A
64:-The combination of a column coordinate and a row co-ordinate make up a
A:-column address B:-cell address C:-row address D:-none of these
Ans: B
65:-DBMS means
A:-Data Base Maintenance System B:-Data Base Module System
C:-Data Base Monitoring System D:-None of these
Ans: D
66:-What is used to retrieve specific data from a database and to answer s about the date in MS ACCESS?
A:-Tables B:-Forms C:-Queries D:-Reports
Ans: C
67:-Which one is used to transfer a webpage to user's computer?
A:-HTTP B:-FTP
C:-XML D:-HLL
Ans: B
68:-The altering of data so that it is not usable unless the changes are undone is
A:-Bio-metrics B:-Encryption C:-Ergonomics D:-Compression
Ans: B
69:-VIRUS stands for
A:-Very Intelligent Result Until Source B:-Vital Information Resources Under Seize
C:-Viral Important Record User Searched D:-Very Interchanged Resource Under Search
Ans: B
70:-Which short cut key is used for calculator in Tally?
A:-CTRL + P B:-CTRL + C C:-CTRL + N D:-CTRL + A
Ans: C
71:-__________ is that which meets the tests of public interest, commonly accepted customs and standards of conduct.
A:-Propriety audit B:-Operational audit C:-Efficiency audit D:-Special audit
Ans: A
72:-Wages tribunals may order cost audit for a certain industrial unit to settle industrial disputes relating to higher wages, bonus etc. this is a type of External Audit of the form ________.
A:-Cost audit on behalf of the government B:-Cost audit on behalf of the customers or consumers
C:-Cost audit on behalf of the trade associations D:-None of the above
Ans: D
73:-The auditor _____
A:-Should distribute the audit work among his subordinates
B:-Should assign difficult and technical works to senior clerks and easy and simple jobs to junior clerks
C:-Should not distribute his work among his subordinates as it is confidential
D:-Both (1) and (2) is true
Ans: D
74:-A firm can reduce the needed cash balance if it can move the cash disbursement and cash collections into the same cash flow cycle. This is known as __________.
A:-Accelerating Cash Receipts B:-Synchronizing Cash Flows
C:-Delaying Disbursements D:-All of the above
Ans: B
75:-_________ contains a copy of the audit program, audit tests, performed, a copy of trial balance, a copy of the annual final accounts. A:-Permanent file B:-Current file C:-None of the above D:-Both (1) and (2)
Ans: B
76:-____________ is a built-in part of the accounting system under which the work of one employee is automatically checked by another employee.
A:-Internal Audit B:-Internal Check
C:-Internal Control D:-External Audit
Ans: B
77:-__________ is a technical term which refers to the inspection by the auditor of documentary evidence supporting and substantiating a transaction.
A:-Vouching B:-Checking C:-Auditing D:-None of the above
Ans: A
78:-Misfeasance is a ___________ of a Company Auditor.
A:-Civil Liability B:-Criminal Liability C:-Statutory Duty D:-Contractual Duty
Ans: A
79:-Among the following statements with regard to redeemable preference shares __________ is not true.
A:-The articles of association of the company should provide for the redemption of these shares
B:-They can be redeemed only out of profits of the company which would be otherwise available for dividend
C:-Fully and partly paid shares can be redeemed
D:-Any premium paid on the redemption must be paid either out of the company's share premium account or out of the profits of the company
Ans: C
80:-When an auditor is satisfied with the affairs of the company and the fairness of the balance sheet and profit and loss account of the concern, he gives a _________ report.
A:-Unqualified Report B:-Clean Report C:-Qualified report D:-Both (1) or (2)
Ans: D
81:-Municipal taxes in the following cases are deductible from the gross annual value of a property under sec. 23
A:-Municipal taxes paid during the year for the current year B:-Municipal taxes paid during the year for the previous year C:-Municipal taxes paid during the year for the future period D:-All of the above
Ans: D
82:-When an assessee uses an asset which was earlier used for scientific research related to business, the cost of asset will be equal to A:-The amount left after reducing the cost of research
B:-The amount left after reducing the amount allowed as deduction for depreciation earlier
C:-The amount of cost including the installation cost
D:-None of the above
Ans: B
83:-The transfer of one or more undertakings or assets for a lump-sum consideration without valuing the assets and liabilities individually is known as __________.
A:-Slump Sale B:-Pooling Purchase C:-Bulk Sale D:-Both (1) and (3)
Ans: A
84:-Interest on income by way of winnings from horse race is tax deducted at source @ 30% in the following case.
A:-The person is a resident in India B:-The person is not a resident in India
C:-Any other person D:-All of the above
Ans: D
85:-By virtue of sections 60 to 65 of the income tax act, clubbing of income is not done under the following situation.
A:-Income from assets transferred with a condition of revocation
B:-Income of spouse
C:-Income of daughter in law from an asset transferred to her without consideration
D:-Income of physically handicapped minor
Ans: D
86:-Short term capital loss can be set off against __________.
A:-Short term Capital gains
B:-Long term Capital gains
C:-Short term and Long term Capital gains
D:-None of the above
Ans: C
87:-The following deductions are made to calculate the Gross Total Income of an assessee
A:-Sum paid to LIC under annuity plan
B:-Subscription to equity shares of a public company which is an eligible issue of capital approved by the Board
C:-Brought forward losses
D:-Both (1) and (2)
Ans: C
88:-Donations to the following cases are not fully deductible
A:-National Defence Fund B:-ZilaSakshartaSamiti
C:-Swatch Bharat Kosh D:-Prime Minister's Drought Relief Fund
Ans: D
89:-The following income is fully considered as agricultural income _________.
A:-Growing and manufacturing of tea B:-Growing and manufacturing or rubber
C:-Sale of green tea leaves D:-Sale of rubber processed from own rubber plants
Ans: C
90:-The following statement is false
A:-Employer's contribution to the Recognized Provident Fund up to 12% of salary is not taxable
B:-Education Allowance is exempt up to Rs. 100 per child, maximum of two children
C:-Income on units of Mutual Fund is exempt up to 50%
D:-Donation to National Foundation for Communal Harmony is eligible for 100% deduction without limit
Ans: C
91:-Imputed costs are _______.
A:-Cost of replacing an old asset B:-Cost which can be eliminated
C:-Cost which is a past cost D:-Cost which is hypothetical
Ans: D
92:-The following are tools for implementing Kaizen Costing I. Stratification II. Pareto chart III. Cost Driver IV. All of the above
A:-I and III B:-II and III C:-I and II D:-IV
Ans: C
93:-Out of the following support activities of a company, the following can be associated with specific primary activities __________. I. Procurement II. Human Resource Management III. Firm Infrastructure IV. Technology development
A:-I, II and III B:-I, II and IV C:-II, III and IV D:-I, II, III and IV
Ans: B
94:-__________ is not a characteristic of Process costing.
A:-Production is continuous B:-Products are not distinguishable in processing stage
C:-Production is not for stock D:-Cost is ascertained at the end of cost period
Ans: C
95:-In the coke industry, the Benzol produced is a
A:-By product B:-Main product C:-Joint product D:-None of the above
Ans: A
96:-__________ can be attained under the most favourable conditions.
A:-Basic standards B:-Current standards C:-Expected standards D:-Ideal Standards
Ans: D
97:-Find labour efficiency variance. Std. hours - 3000 Std. rate of wages Rs. 200 Actual rate of wages Rs. 250 Actual hours - 2000 A:-2,00,000 B:-1,00,000 C:-(-) 1,00,000 D:-3,00,000
Ans: A
98:-Under the following plan, the worker gets wages for actual hours worked and a bonus for the time saved.
A:-Emerson's efficiency plan B:-Halsey-Weir plan
C:-Rowan premium plan D:-Taylor's differential piece rate system
Ans: C
99:-__________ determines the ratio in which the total long term capital is contributed by different sources.
A:-Capitalisation B:-Capital structure C:-Financial Structure D:-All of the above
Ans: B
100:-__________ explains business risk.
A:-Operating Leverage B:-Financial Leverage
C:-Combined Leverage D:-All of the above
Ans: A