ACCOUNTANCY
UPSC Commerce and Accountancy MCQs
1:-DDB stands for _____________.
A:-Debit Discount Bonds
B:-Deep Discount Bonds
C:-Derived Debt Bonds
D:-All of these
Ans: B
2:-In the call money market, the period for which a loan is granted shall not exceed
A:-7 days
B:-15 days
C:-30 days
D:-60 days
Ans: A
3:-Which of the following is not a Money market instrument?
A:-Commercial Bills
B:-Treasury Bills
C:-Collateral loans
D:-Commercial Paper
Ans: C
4:-Equity shares issued by a company to its employees or directors, at a discount, for providing know-how is called ____________.
A:-Right shares
B:-Bonus shares
C:-Preference shares
D:-Sweat equity shares
Ans: D
5:-Security merchants dealing in shares and debentures as independent operators are called
A:-Brokers
B:-Jobbers
C:-Sub-brokers
D:-Consultants
Ans: B
6:-Bombay Stock Exchange was established in the year ___________.
A:-1975
B:-1925
C:-1856
D:-1875
Ans: D
7:-SEBI Act came into force in the year ______________.
A:-1991
B:-2002
C:-1992
D:-1947
Ans: C
8:-The first stock exchange in India was set up in _____________.
A:-Ahmadabad
B:-Bombay (Mumbai)
C:-Calcutta
D:-Delhi
Ans: B
9:-Regulations governing Mutual Funds are being issued by ____________.
A:-SEBI
B:-RBI
C:-CRISIL
D:-AMFI
Ans: A
10:-Mutual funds attracting foreign savings for investment in India is called
A:-Foreign funds
B:-Domestic funds
C:-Off-shore funds
D:-Fund of funds
Ans: C
11:-TCP stands for ____________.
A:-Transmission Control Protocol
B:-Transaction Control Protocol
C:-Trade Control Protocol
D:-All of these
Ans: A
12:-Which of the following is not an electronic fund transfer method?
A:-RTGS
B:-ATMs
C:-NEFT
D:-ETTPOS
Ans: B
13:-Use of computers and communication technology for management of information is called
A:-MIS
B:-Office Automation
C:-Office Management
D:-All of these
Ans: B
14:-Which of the following is not a component of DSS?
A:-Database
B:-Model base
C:-DSS software
D:-None of these
Ans: D
15:-The technique of Group Decision Making in which there is no formal meeting of participants is called __________.
A:-Brainstorming
B:-Nominal Group Technique
C:-Delphi Method
D:-None of these
Ans: C
16:-A group of cells in an Excel workbook is called ___________.
A:-Range
B:-Row
C:-Column
D:-None of these
Ans: A
17:-Which of the following is a Database function in Excel?
A:-SLN
B:-DMAX
C:-NPV
D:-PMT
Ans: B
18:-DDL stands for ______________.
A:-Data Definition Language
B:-Data Decoding Language
C:-Data Describing Language
D:-All of these
Ans: A
19:-Which of the following is not a Data Mining technology?
A:-Artificial Neural Networks
B:-Decision Trees
C:-Genetic Algorithms
D:-None of these
Ans: D
20:-Which of the following is a tool used for arranging and storing information about data maintained in the database?
A:-Database files
B:-Data Dictionary
C:-Report Generator
D:-Interface System
Ans: B
A:-Debit Discount Bonds
B:-Deep Discount Bonds
C:-Derived Debt Bonds
D:-All of these
Ans: B
2:-In the call money market, the period for which a loan is granted shall not exceed
A:-7 days
B:-15 days
C:-30 days
D:-60 days
Ans: A
3:-Which of the following is not a Money market instrument?
A:-Commercial Bills
B:-Treasury Bills
C:-Collateral loans
D:-Commercial Paper
Ans: C
4:-Equity shares issued by a company to its employees or directors, at a discount, for providing know-how is called ____________.
A:-Right shares
B:-Bonus shares
C:-Preference shares
D:-Sweat equity shares
Ans: D
5:-Security merchants dealing in shares and debentures as independent operators are called
A:-Brokers
B:-Jobbers
C:-Sub-brokers
D:-Consultants
Ans: B
6:-Bombay Stock Exchange was established in the year ___________.
A:-1975
B:-1925
C:-1856
D:-1875
Ans: D
7:-SEBI Act came into force in the year ______________.
A:-1991
B:-2002
C:-1992
D:-1947
Ans: C
8:-The first stock exchange in India was set up in _____________.
A:-Ahmadabad
B:-Bombay (Mumbai)
C:-Calcutta
D:-Delhi
Ans: B
9:-Regulations governing Mutual Funds are being issued by ____________.
A:-SEBI
B:-RBI
C:-CRISIL
D:-AMFI
Ans: A
10:-Mutual funds attracting foreign savings for investment in India is called
A:-Foreign funds
B:-Domestic funds
C:-Off-shore funds
D:-Fund of funds
Ans: C
11:-TCP stands for ____________.
A:-Transmission Control Protocol
B:-Transaction Control Protocol
C:-Trade Control Protocol
D:-All of these
Ans: A
12:-Which of the following is not an electronic fund transfer method?
A:-RTGS
B:-ATMs
C:-NEFT
D:-ETTPOS
Ans: B
13:-Use of computers and communication technology for management of information is called
A:-MIS
B:-Office Automation
C:-Office Management
D:-All of these
Ans: B
14:-Which of the following is not a component of DSS?
A:-Database
B:-Model base
C:-DSS software
D:-None of these
Ans: D
15:-The technique of Group Decision Making in which there is no formal meeting of participants is called __________.
A:-Brainstorming
B:-Nominal Group Technique
C:-Delphi Method
D:-None of these
Ans: C
16:-A group of cells in an Excel workbook is called ___________.
A:-Range
B:-Row
C:-Column
D:-None of these
Ans: A
17:-Which of the following is a Database function in Excel?
A:-SLN
B:-DMAX
C:-NPV
D:-PMT
Ans: B
18:-DDL stands for ______________.
A:-Data Definition Language
B:-Data Decoding Language
C:-Data Describing Language
D:-All of these
Ans: A
19:-Which of the following is not a Data Mining technology?
A:-Artificial Neural Networks
B:-Decision Trees
C:-Genetic Algorithms
D:-None of these
Ans: D
20:-Which of the following is a tool used for arranging and storing information about data maintained in the database?
A:-Database files
B:-Data Dictionary
C:-Report Generator
D:-Interface System
Ans: B
21:-___________ are the cost of either a single process or a series of processes that simultaneously produce two or more products of significant relative sales value.
A:-Common costs
B:-Joint costs
C:-Product cost
D:-Period cost
Ans: B
22:-____________ costs are not traceable to any plant, department, and operation or to any individual final product.
A:-Common costs
B:-Indirect costs
C:-Both (1) and (2)
D:-None of these
Ans: C
23:-___________ is the production that fails to meet quality or dimensional requirements and hence has to be disposed of without further processing.
A:-Spoilage
B:-Waste
C:-Scrap
D:-All are correct
Ans: A
24:-If normal usage of raw material is 110 per day, minimum usage is 50 per day, maximum usage is 140 per day, and lead time is 25 to 35 days, the minimum stock level is ________.
A:-4200
B:-1175
C:-7950
D:-None of these
Ans: B
25:-____________ is a form of specific order costing which applies where work is undertaken to customer's special requirements and each order is of short term duration.
A:-Batch costing
B:-Job costing
C:-Both (1) and (2)
D:-None of the above
Ans: B
26:-In contract costing retention money is the difference between work certified and _________.
A:-Contract prices
B:-Cash received
C:-Work uncertified
D:-None of these
Ans: B
27:-Process account is credited with the scrap value of __________.
A:-Abnormal gain
B:-Abnormal loss
C:-Normal loss
D:-Normal gain
Ans: C
28:-Under marginal costing, contribution is
A:-Sales - Variable cost
B:-Fixed cost + Profit
C:-Both (1) and (2)
D:-None of these
Ans: C
29:-Material usage variance is a combination of ____________.
A:-Mix variance and Yield variance
B:-Mix variance and Price variance
C:-Material cost variance and Yield variance
D:-None of these
Ans: A
30:-_____________ is a method of budgeting where no reference is made to previous level of expenditure.
A:-PPBS
B:-Flexible Budget
C:-ZBB
D:-Fixed Budget
Ans: C
31:-____________ is a subsidiary objective of Auditing.
A:-Assess the system of internal control
B:-Detection and prevention of fraud
C:-Confirm existence of assets and liabilities
D:-Ascertain whether distinction has been made between capital and revenue items
Ans: B
32:-Goods purchased for Rs. 10,000 is recorded in purchases day book as Rs. 1,000 is a ___________ type of error.
A:-Omission
B:-Commission
C:-Principle
D:-Compensating
Ans: B
33:-Scheduling dates for interim and year end audit procedures is a goal of ____________.
A:-Audit Programme
B:-Audit Procedure
C:-Audit Planning
D:-All of these
Ans: C
34:-Mistakes and Errors detected are recorded in ____________.
A:-Audit Note Book
B:-Audit Working Papers
C:-Audit evidence papers
D:-None of these
Ans: A
35:-____________ is an arrangement of duties allocated in such a way that the work of one person is automatically checked by another.
A:-Internal audit
B:-Internal control
C:-Internal check
D:-Both (1) and (3)
Ans: C
36:-____________ is an investigation of business from the highest level downward in order to ascertain whether sound management prevails throughout the company.
A:-Statutory audit
B:-Performance audit
C:-Propriety audit
D:-Management audit
Ans: D
37:-When the auditor is satisfied with the fairness of the balance sheet and profit and loss account, he will give a______________ report.
A:-Qualified report
B:-Unqualified report
C:-Adverse report
D:-None of these
Ans: B
38:-On completion of Annual Audit the auditor's report is issued on ___________.
A:-31st March
B:-31st December
C:-Any date later than the end of the period
D:-All of these correct
Ans: C
39:-_____________ is the owner of Working Papers in a company audit.
A:-Company
B:-Board of Directors
C:-Auditor
D:-None of these
Ans: C
40:-___________ audits the books of accounts of government companies as per the Companies Act.
A:-CAG
B:-Auditor appointed by the BOD
C:-Chartered Accountant
D:-Government
Ans: A
41:-The job of figuring out the ways and means of financing investment projects is __________ decision.
A:-Capital Budgeting
B:-Capital Structure
C:-Working Capital Management
D:-All of these
Ans: B
42:-The process of ____________ is used for calculating the Present Value of a cash flow.
A:-Compounding
B:-Annuity
C:-Reducing
D:-Discounting
Ans: D
43:-____________ investors have a claim on residual cash flows of the firm.
A:-Debt
B:-Equity
C:-Preference
D:-All of these
Ans: B
44:-____________ leverage arises from the firm's fixed costs such as salaries, depreciation, insurance etc.
A:-Operating
B:-Financial
C:-Both (1) and (2)
D:-None of these
Ans: A
45:-When inventories and receivables are supported by credit provided by suppliers and the customers pay in advance then a firm cash have a ____________ Working Capital.
A:-Zero
B:-Negative
C:-Positive
D:-Either (1) or (2)
Ans: D
46:-______________ is a non-discounting criteria to judge the worthwhileness of investment projects.
A:-IRR
B:-NPV
C:-ARR
D:-None of these
Ans: C
47:-When 'Profit after tax' is divided by 'book value of assets', we get ____________.
A:-ARR
B:-IRR
C:-Pay back period
D:-None of these
Ans: A
48:-A rights issue of capital to the existing shareholders through a Letter of Offer is made in the first instance to the existing shareholders on a _____________ basis.
A:-Equal
B:-Allotment
C:-Pro rata
D:-All of these
Ans: C
49:-The reason for Equity Buy Back can be ____________.
A:-To boost stock price
B:-To substitute for cash dividends
C:-To rationalize company's capital structure
D:-All of the above
Ans: D
50:-Bonds that have a credit rating of BB or lower by Standard and Poor's and Ba or lower by Moody's are referred to as _____________ Bonds.
A:-Inverse
B:-Junk
C:-Discount
D:-Both (2) and (3)
Ans: B
A:-Common costs
B:-Joint costs
C:-Product cost
D:-Period cost
Ans: B
22:-____________ costs are not traceable to any plant, department, and operation or to any individual final product.
A:-Common costs
B:-Indirect costs
C:-Both (1) and (2)
D:-None of these
Ans: C
23:-___________ is the production that fails to meet quality or dimensional requirements and hence has to be disposed of without further processing.
A:-Spoilage
B:-Waste
C:-Scrap
D:-All are correct
Ans: A
24:-If normal usage of raw material is 110 per day, minimum usage is 50 per day, maximum usage is 140 per day, and lead time is 25 to 35 days, the minimum stock level is ________.
A:-4200
B:-1175
C:-7950
D:-None of these
Ans: B
25:-____________ is a form of specific order costing which applies where work is undertaken to customer's special requirements and each order is of short term duration.
A:-Batch costing
B:-Job costing
C:-Both (1) and (2)
D:-None of the above
Ans: B
26:-In contract costing retention money is the difference between work certified and _________.
A:-Contract prices
B:-Cash received
C:-Work uncertified
D:-None of these
Ans: B
27:-Process account is credited with the scrap value of __________.
A:-Abnormal gain
B:-Abnormal loss
C:-Normal loss
D:-Normal gain
Ans: C
28:-Under marginal costing, contribution is
A:-Sales - Variable cost
B:-Fixed cost + Profit
C:-Both (1) and (2)
D:-None of these
Ans: C
29:-Material usage variance is a combination of ____________.
A:-Mix variance and Yield variance
B:-Mix variance and Price variance
C:-Material cost variance and Yield variance
D:-None of these
Ans: A
30:-_____________ is a method of budgeting where no reference is made to previous level of expenditure.
A:-PPBS
B:-Flexible Budget
C:-ZBB
D:-Fixed Budget
Ans: C
31:-____________ is a subsidiary objective of Auditing.
A:-Assess the system of internal control
B:-Detection and prevention of fraud
C:-Confirm existence of assets and liabilities
D:-Ascertain whether distinction has been made between capital and revenue items
Ans: B
32:-Goods purchased for Rs. 10,000 is recorded in purchases day book as Rs. 1,000 is a ___________ type of error.
A:-Omission
B:-Commission
C:-Principle
D:-Compensating
Ans: B
33:-Scheduling dates for interim and year end audit procedures is a goal of ____________.
A:-Audit Programme
B:-Audit Procedure
C:-Audit Planning
D:-All of these
Ans: C
34:-Mistakes and Errors detected are recorded in ____________.
A:-Audit Note Book
B:-Audit Working Papers
C:-Audit evidence papers
D:-None of these
Ans: A
35:-____________ is an arrangement of duties allocated in such a way that the work of one person is automatically checked by another.
A:-Internal audit
B:-Internal control
C:-Internal check
D:-Both (1) and (3)
Ans: C
36:-____________ is an investigation of business from the highest level downward in order to ascertain whether sound management prevails throughout the company.
A:-Statutory audit
B:-Performance audit
C:-Propriety audit
D:-Management audit
Ans: D
37:-When the auditor is satisfied with the fairness of the balance sheet and profit and loss account, he will give a______________ report.
A:-Qualified report
B:-Unqualified report
C:-Adverse report
D:-None of these
Ans: B
38:-On completion of Annual Audit the auditor's report is issued on ___________.
A:-31st March
B:-31st December
C:-Any date later than the end of the period
D:-All of these correct
Ans: C
39:-_____________ is the owner of Working Papers in a company audit.
A:-Company
B:-Board of Directors
C:-Auditor
D:-None of these
Ans: C
40:-___________ audits the books of accounts of government companies as per the Companies Act.
A:-CAG
B:-Auditor appointed by the BOD
C:-Chartered Accountant
D:-Government
Ans: A
41:-The job of figuring out the ways and means of financing investment projects is __________ decision.
A:-Capital Budgeting
B:-Capital Structure
C:-Working Capital Management
D:-All of these
Ans: B
42:-The process of ____________ is used for calculating the Present Value of a cash flow.
A:-Compounding
B:-Annuity
C:-Reducing
D:-Discounting
Ans: D
43:-____________ investors have a claim on residual cash flows of the firm.
A:-Debt
B:-Equity
C:-Preference
D:-All of these
Ans: B
44:-____________ leverage arises from the firm's fixed costs such as salaries, depreciation, insurance etc.
A:-Operating
B:-Financial
C:-Both (1) and (2)
D:-None of these
Ans: A
45:-When inventories and receivables are supported by credit provided by suppliers and the customers pay in advance then a firm cash have a ____________ Working Capital.
A:-Zero
B:-Negative
C:-Positive
D:-Either (1) or (2)
Ans: D
46:-______________ is a non-discounting criteria to judge the worthwhileness of investment projects.
A:-IRR
B:-NPV
C:-ARR
D:-None of these
Ans: C
47:-When 'Profit after tax' is divided by 'book value of assets', we get ____________.
A:-ARR
B:-IRR
C:-Pay back period
D:-None of these
Ans: A
48:-A rights issue of capital to the existing shareholders through a Letter of Offer is made in the first instance to the existing shareholders on a _____________ basis.
A:-Equal
B:-Allotment
C:-Pro rata
D:-All of these
Ans: C
49:-The reason for Equity Buy Back can be ____________.
A:-To boost stock price
B:-To substitute for cash dividends
C:-To rationalize company's capital structure
D:-All of the above
Ans: D
50:-Bonds that have a credit rating of BB or lower by Standard and Poor's and Ba or lower by Moody's are referred to as _____________ Bonds.
A:-Inverse
B:-Junk
C:-Discount
D:-Both (2) and (3)
Ans: B
51:-As per Section 5, incidence of tax on a taxpayer depends on :
I. His residential status.
II. The place and time of accrual or receipt of income.
A:-Both I and II
B:-Either I or II
C:-Only I
D:-Only II
Ans: A
52:-For an NRI, Foreign Income is
A:-Taxable in India
B:-Not taxable in India
C:-Partially taxable in India
D:-Taxable in India on stipulations
Ans: B
53:-Loss under the head of "Capital Gains"
A:-Can be set off against any other income
B:-Cannot be set off against any other income and shall be carried forward
C:-Cannot be set off against any other income and shall not be carried forward
D:-Either (1) or (2)
Ans: B
54:-GST stands for
A:-General Sales Tax
B:-Goods and Services Tax
C:-Grouped Sales Tax
D:-None of these
Ans: B
55:-The remuneration received by people like doctors, architects, lawyers etc from their clients is treated under the head
A:-Salaries
B:-Income from business or profession
C:-Income from other sources
D:-Any of the above
Ans: B
56:-______________ is any casual emolument fee or profit attached to an office or position in addition to salary or
wages.
A:-Annuity
B:-Tax free benefits
C:-Gift
D:-Perquisites
Ans: D
57:-If an asset transferred without consideration is again transferred by the transferee, the resultant gain or loss is clubbed with the income of
A:-Former transferee
B:-Later transferee
C:-Former transferor
D:-Any of the above
Ans: C
58:-Business losses cannot be set off against any income except
A:-Income from house property
B:-Capital gains
C:-Income from salary
D:-None of the above
Ans: C
59:-Voluntary return is filled under section
A:-139(1)
B:-142(1)
C:-145(1)
D:-None of these
Ans: A
60:-Ex-parte assessment is also called
A:-Precautionary assessment
B:-Best Judgement assessment
C:-Income escaping assessment
D:-None of these
Ans: B
61:-The balance in the Shares Forfeited Account is transferred to ____________.
A:-Capital reserve
B:-General reserve
C:-Securities premium
D:-Free reserves
Ans: A
62:-The Sinking Fund Account is finally closed by transferring the balance to ____________.
A:-Capital Reserve
B:-Debentures
C:-Sinking Fund Investment Account
D:-General Reserve Account
Ans: D
63:-Which of the following do not amount to appropriation of profit?
A:-Proposed Dividend
B:-General Reserve
C:-Interim Dividend
D:-Provision for taxation
Ans: D
64:-Any profit on realization of assets at the time of amalgamation is transferred to _________.
A:-Transferee Company
B:-Creditors
C:-Debenture holders
D:-Equity shareholders
Ans: D
65:-Depreciation account is given in ____________.
A:-AS 10
B:-AS 14
C:-AS 6
D:-AS 5
Ans: C
66:-The amount set aside for unrealized profit on stock is called ____________.
A:-Stock Reserve
B:-General Reserve
C:-Capital Reserve
D:-None of these
Ans: A
67:-If the goods are invoiced at 25% on cost price, it means ____________ on selling price.
A:-20%
B:-25%
C:-33 and 1/3%
D:-50%
Ans: A
68:-The creditors turnover ratio is obtained by dividing the Net Credit Annual Purchases by
A:-Average Trade Debtors
B:-Total Creditors
C:-Average Trade Creditors
D:-None of these
Ans: C
69:-An increase in current liabilities _____________ the working capital.
A:-Decreases
B:-Increases
C:-Equates
D:-None of these
Ans: A
70:-The Accounting Standards Board (ASB) came to existence in the year
A:-1967
B:-1977
C:-1961
D:-1957
Ans: B
71:-RTGS stands for _____________.
A:-Real Time Gross Services
B:-Rational Time Gross Settlement
C:-Real Time Group Settlement
D:-Real Time Gross Settlement
Ans: D
72:-The right of the banker to retain all the properties of the debtor is called ___________.
A:-Particular Lien
B:-General Lien
C:-Gross Lien
D:-All of these
Ans: B
73:-Which of the following is not a Nationalised bank?
A:-Bank of Baroda
B:-Canara Bank
C:-Federal Bank
D:-Syndicate Bank
Ans: C
74:-CRR stands for ____________.
A:-Credit Reserve Ratio
B:-Cash Reserve Ratio
C:-Credit Reversal Ratio
D:-None of these
Ans: B
75:-RBI Act came into force in
A:-1930
B:-1936
C:-1934
D:-1956
Ans: C
76:-SPNS stands for ______________.
A:-Systematic Payment Network System
B:-Small Payment Network System
C:-Shared Payment Network System
D:-Secured Payment Network System
Ans: C
77:-Which of the following is not a property insurance?
A:-Fire Insurance
B:-Agricultural Insurance
C:-Health Insurance
D:-Livestock Insurance
Ans: C
78:-The principle of 'Causa Proxima' in insurance business means
A:-The nearest cause
B:-The proximate cause
C:-The immediate cause
D:-All of these
Ans: D
79:-The Life Insurance Corporation Act came into effect in the year
A:-1956
B:-1972
C:-1934
D:-1961
Ans: A
80:-Which of the following is not a fundamental principle of insurance contract?
A:-Utmost good faith
B:-Insurable interest
C:-Indemnity
D:-Assignment
Ans: D
I. His residential status.
II. The place and time of accrual or receipt of income.
A:-Both I and II
B:-Either I or II
C:-Only I
D:-Only II
Ans: A
52:-For an NRI, Foreign Income is
A:-Taxable in India
B:-Not taxable in India
C:-Partially taxable in India
D:-Taxable in India on stipulations
Ans: B
53:-Loss under the head of "Capital Gains"
A:-Can be set off against any other income
B:-Cannot be set off against any other income and shall be carried forward
C:-Cannot be set off against any other income and shall not be carried forward
D:-Either (1) or (2)
Ans: B
54:-GST stands for
A:-General Sales Tax
B:-Goods and Services Tax
C:-Grouped Sales Tax
D:-None of these
Ans: B
55:-The remuneration received by people like doctors, architects, lawyers etc from their clients is treated under the head
A:-Salaries
B:-Income from business or profession
C:-Income from other sources
D:-Any of the above
Ans: B
56:-______________ is any casual emolument fee or profit attached to an office or position in addition to salary or
wages.
A:-Annuity
B:-Tax free benefits
C:-Gift
D:-Perquisites
Ans: D
57:-If an asset transferred without consideration is again transferred by the transferee, the resultant gain or loss is clubbed with the income of
A:-Former transferee
B:-Later transferee
C:-Former transferor
D:-Any of the above
Ans: C
58:-Business losses cannot be set off against any income except
A:-Income from house property
B:-Capital gains
C:-Income from salary
D:-None of the above
Ans: C
59:-Voluntary return is filled under section
A:-139(1)
B:-142(1)
C:-145(1)
D:-None of these
Ans: A
60:-Ex-parte assessment is also called
A:-Precautionary assessment
B:-Best Judgement assessment
C:-Income escaping assessment
D:-None of these
Ans: B
61:-The balance in the Shares Forfeited Account is transferred to ____________.
A:-Capital reserve
B:-General reserve
C:-Securities premium
D:-Free reserves
Ans: A
62:-The Sinking Fund Account is finally closed by transferring the balance to ____________.
A:-Capital Reserve
B:-Debentures
C:-Sinking Fund Investment Account
D:-General Reserve Account
Ans: D
63:-Which of the following do not amount to appropriation of profit?
A:-Proposed Dividend
B:-General Reserve
C:-Interim Dividend
D:-Provision for taxation
Ans: D
64:-Any profit on realization of assets at the time of amalgamation is transferred to _________.
A:-Transferee Company
B:-Creditors
C:-Debenture holders
D:-Equity shareholders
Ans: D
65:-Depreciation account is given in ____________.
A:-AS 10
B:-AS 14
C:-AS 6
D:-AS 5
Ans: C
66:-The amount set aside for unrealized profit on stock is called ____________.
A:-Stock Reserve
B:-General Reserve
C:-Capital Reserve
D:-None of these
Ans: A
67:-If the goods are invoiced at 25% on cost price, it means ____________ on selling price.
A:-20%
B:-25%
C:-33 and 1/3%
D:-50%
Ans: A
68:-The creditors turnover ratio is obtained by dividing the Net Credit Annual Purchases by
A:-Average Trade Debtors
B:-Total Creditors
C:-Average Trade Creditors
D:-None of these
Ans: C
69:-An increase in current liabilities _____________ the working capital.
A:-Decreases
B:-Increases
C:-Equates
D:-None of these
Ans: A
70:-The Accounting Standards Board (ASB) came to existence in the year
A:-1967
B:-1977
C:-1961
D:-1957
Ans: B
71:-RTGS stands for _____________.
A:-Real Time Gross Services
B:-Rational Time Gross Settlement
C:-Real Time Group Settlement
D:-Real Time Gross Settlement
Ans: D
72:-The right of the banker to retain all the properties of the debtor is called ___________.
A:-Particular Lien
B:-General Lien
C:-Gross Lien
D:-All of these
Ans: B
73:-Which of the following is not a Nationalised bank?
A:-Bank of Baroda
B:-Canara Bank
C:-Federal Bank
D:-Syndicate Bank
Ans: C
74:-CRR stands for ____________.
A:-Credit Reserve Ratio
B:-Cash Reserve Ratio
C:-Credit Reversal Ratio
D:-None of these
Ans: B
75:-RBI Act came into force in
A:-1930
B:-1936
C:-1934
D:-1956
Ans: C
76:-SPNS stands for ______________.
A:-Systematic Payment Network System
B:-Small Payment Network System
C:-Shared Payment Network System
D:-Secured Payment Network System
Ans: C
77:-Which of the following is not a property insurance?
A:-Fire Insurance
B:-Agricultural Insurance
C:-Health Insurance
D:-Livestock Insurance
Ans: C
78:-The principle of 'Causa Proxima' in insurance business means
A:-The nearest cause
B:-The proximate cause
C:-The immediate cause
D:-All of these
Ans: D
79:-The Life Insurance Corporation Act came into effect in the year
A:-1956
B:-1972
C:-1934
D:-1961
Ans: A
80:-Which of the following is not a fundamental principle of insurance contract?
A:-Utmost good faith
B:-Insurable interest
C:-Indemnity
D:-Assignment
Ans: D
81:-__________ is the feature of Value Added tax which prevents cascading effect of tax.
A:-Input tax credit
B:-Different tax slabs
C:-Cash credit
D:-None of these
Ans: A
82:-A ____________ report is prepared by the auditory when he finds the accounts exhibiting a true and fair view of the state of company's financial affairs.
A:-Unqualified report
B:-Qualified report
C:-Specific report
D:-None of these
Ans: A
83:-In India Value Added tax is first introduced in __________ state.
A:-Haryana
B:-Bihar
C:-Rajasthan
D:-Delhi
Ans: A
84:-The following error affects trial balance is
A:-Compensating error
B:-Error of principle
C:-Error of complete omission
D:-Error of commission
Ans: D
85:-_______________ is a technique with an auditor to contact responsible officials through interview and open communication with the outside parties for ensuring that the transactions are authentic, valid and accurate.
A:-Confirming
B:-Vouching
C:-Reconciling
D:-Testing
Ans: A
86:-Company audit is an example of __________ audit.
A:-Government audit
B:-Internal audit
C:-Statutory audit
D:-Private audit
Ans: C
87:-Any person who is responsible to pay tax on behalf of a minor, lunatic or a non-resident is known as
A:-Assessee in default
B:-Ordinary assessee
C:-Deemed assessee
D:-None of these
Ans: C
88:-Assessee includes
A:-Individual
B:-HUF
C:-Company
D:-All of the above
Ans: D
89:-Income tax department works under
A:-State govt.
B:-President
C:-Income tax commission
D:-CBDT
Ans: D
90:-Exempted income is
A:-Not taxable under income tax
B:-Not included in total income
C:-Agricultural income
D:-All of the above
Ans: D
91:-Types of assesses in income tax from residential point of view
A:-2
B:-3
C:-4
D:-Many
Ans: B
92:-Company may be
A:-Resident
B:-Non-resident
C:-Not ordinarily resident
D:-Resident or non-resident
Ans: D
93:-Previous year is
A:-Preceding year
B:-Income earning year
C:-Tax calculating year
D:-Income computation year
Ans: B
94:-The value added tax is an expense to be suffered by
A:-Suppliers
B:-Traders
C:-Companies
D:-Final consumer
Ans: D
95:-The responsibility for the preparation of the financial statements and the accompanying foot notes belongs to
A:-Both management and the auditor equally
B:-Management for the statements and the auditor for the notes
C:-The auditor
D:-Management
Ans: D
96:-Debit note is associated with
A:-Sales return
B:-Purchase return
C:-Purchase
D:-Sales
Ans: B
97:-Cash book is
A:-Journal
B:-Ledger
C:-Both journal and ledger
D:-None of these
Ans: C
98:-Bank reconciliation statement is prepared by
A:-Bank
B:-Auditor
C:-Account holder
D:-Government
Ans: C
99:-Identify one sided error from the following.
A:-Machinery purchase treated as purchase
B:-Cash received from Rajan credited to Rajesh
C:-Withdrawal by proprietor debited to establishment charge
D:-Purchase book is under cast
Ans: D
100:-____________ is a temporary account opened to make trial balacne agree.
A:-P and L account
B:-Discount account
C:-Suspense account
D:-None of these
Ans: C
A:-Input tax credit
B:-Different tax slabs
C:-Cash credit
D:-None of these
Ans: A
82:-A ____________ report is prepared by the auditory when he finds the accounts exhibiting a true and fair view of the state of company's financial affairs.
A:-Unqualified report
B:-Qualified report
C:-Specific report
D:-None of these
Ans: A
83:-In India Value Added tax is first introduced in __________ state.
A:-Haryana
B:-Bihar
C:-Rajasthan
D:-Delhi
Ans: A
84:-The following error affects trial balance is
A:-Compensating error
B:-Error of principle
C:-Error of complete omission
D:-Error of commission
Ans: D
85:-_______________ is a technique with an auditor to contact responsible officials through interview and open communication with the outside parties for ensuring that the transactions are authentic, valid and accurate.
A:-Confirming
B:-Vouching
C:-Reconciling
D:-Testing
Ans: A
86:-Company audit is an example of __________ audit.
A:-Government audit
B:-Internal audit
C:-Statutory audit
D:-Private audit
Ans: C
87:-Any person who is responsible to pay tax on behalf of a minor, lunatic or a non-resident is known as
A:-Assessee in default
B:-Ordinary assessee
C:-Deemed assessee
D:-None of these
Ans: C
88:-Assessee includes
A:-Individual
B:-HUF
C:-Company
D:-All of the above
Ans: D
89:-Income tax department works under
A:-State govt.
B:-President
C:-Income tax commission
D:-CBDT
Ans: D
90:-Exempted income is
A:-Not taxable under income tax
B:-Not included in total income
C:-Agricultural income
D:-All of the above
Ans: D
91:-Types of assesses in income tax from residential point of view
A:-2
B:-3
C:-4
D:-Many
Ans: B
92:-Company may be
A:-Resident
B:-Non-resident
C:-Not ordinarily resident
D:-Resident or non-resident
Ans: D
93:-Previous year is
A:-Preceding year
B:-Income earning year
C:-Tax calculating year
D:-Income computation year
Ans: B
94:-The value added tax is an expense to be suffered by
A:-Suppliers
B:-Traders
C:-Companies
D:-Final consumer
Ans: D
95:-The responsibility for the preparation of the financial statements and the accompanying foot notes belongs to
A:-Both management and the auditor equally
B:-Management for the statements and the auditor for the notes
C:-The auditor
D:-Management
Ans: D
96:-Debit note is associated with
A:-Sales return
B:-Purchase return
C:-Purchase
D:-Sales
Ans: B
97:-Cash book is
A:-Journal
B:-Ledger
C:-Both journal and ledger
D:-None of these
Ans: C
98:-Bank reconciliation statement is prepared by
A:-Bank
B:-Auditor
C:-Account holder
D:-Government
Ans: C
99:-Identify one sided error from the following.
A:-Machinery purchase treated as purchase
B:-Cash received from Rajan credited to Rajesh
C:-Withdrawal by proprietor debited to establishment charge
D:-Purchase book is under cast
Ans: D
100:-____________ is a temporary account opened to make trial balacne agree.
A:-P and L account
B:-Discount account
C:-Suspense account
D:-None of these
Ans: C