Advance Accounting MCQs : This section focuses on the "Advance Accounting". These Multiple Choice Questions (MCQs) should be practiced to improve the Advance Accounting skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.
Question 1
_________ and will share revenue equally between the central and State.
A. CGST & SGST
B. SGST &IGST
C. IGST & CGST
D. GST & IGST
Question 2
______________is an Indirect Tax which has replaced many indirect taxes in India.
A. GST
B. Income Tax
C. IGST
D. Service Tax
Question 3
______________is the source of Government to increase their revenue.
A. Tax
B. Profit
C. memorandum
D. Expenses
Question 4
____________Collected by the Central Maharashtra for Inter state sale.
A. CGST
B. SGST
C. IGST
D. GST
Question 5
____________Collected by the State Government on an Intra state sale.
A. CGST
B. SGST
C. IGST
D. GST
Question 6
____________method of branch accounting is usually adopted when the branch is ofthe small size.
A. Treading.
B. Balance sheet
C. memorandum
D. debtors
Question 7
_________________clause is applicable in case of under insurance
A. average
B. Normal
C. short sales
D. indemnity period
Question 8
_______________ reporting helps uses of financial statements to better assess the riskand t returns of the enterprise.
A. segment
B. Account
C. statement
D. management
Question 9
_______________are not formed for earning profit.
A. co-operative society
B. Public Company
C. HUF
D. Private Company
Question 10
_______________asset is one which has been classified as non-performing asset forperiod not exceeding than____________.years
A. Fixed – 13
B. Fluctuating – 11
C. Intangible – 1
D. Substandard – 2
Question 11
_______________collected by central government on an Intra state sale.
A. CGST
B. SGST
C. IGST
D. GST
Question 12
__________________ ratio indicates the relationship of gross profit to net sales interms of percentage.
A. Gross profit
B. Net profit
C. debtors turnover
D. capital employed
Question 13
_______________fund is for the purpose of construction of building for the business ofthe Society.
A. building fund
B. Reserve fund
C. Education Fund
D. Loans and advances
Question 14
_______________ is mentioned in the balance sheet as foot note.
A. Contingent liability
B. preliminary expenses
C. debtors
D. closing stock
Question 15
_____________________policy cover loss of gross profit sustained as a consequence of business interruption.
A. loss of profit
B. loss of stocks
C. average clause
D. loss of fixed assets
Question 16
_______________is the motive given to the parliament and legislation of every state
A. . one nation one tax
B. Live and let live
C. Health is Wealth
D. learn and earn
Question 17
_______________system of book keeping is the only scientific method to record farmingtransaction.
A. Single entry
B. Double entry
C. Balance sheet
D. Adjustment A/c
Question 18
A _________ policy covers loss of stock, fixed asset, profit, expenses etc.
A. compact
B. comprehensive
C. horizontal
D. operating
Question 19
A __________________is generally a physical part of the business established under thesame roof.
A. Surplus.
B. Depreciation
C. Department
D. Surplus
Question 20
A 25 focuses on change in accounting policies also.
A. TRUE
B. only false
C. may be true
D. may be false
Question 21
A business takes a_______________insurance policy to cover the claims for loss of stocks and loss of profit.
A. Fire
B. Life insurance
C. Car insurance
D. health insurance
Question 22
A co-operative Society may createout of its net profit for payment of bonus toperson who are not its members.
A. bonus equalization fund
B. Reserve fund
C. Education Fund
D. Loans and advances
Question 23
A fire policy covers loss of or damaged to insured property.
A. TRUE
B. FALSE
C. may be true
D. only false
Question 24
A memorandum trading account is to be prepared to ascertained the value ofstock on the date of fire.
A. TRUE
B. FALSE
C. may be true
D. may be false
Question 25
A parent co. should account for the investment in subsidiaries in accordancewith AS -13
A. TRUE
B. FALSE
C. May be true
D. only b
Question 26
A policy of fire insurance is intended to protect the assured against the losscaused by fire.
A. TRUE
B. FALSE
C. neither true nor false
D. may be false
Question 27
A society which as proclaimed as its objective the____________ of economic interestof its member
A. Promotion
B. Demotion
C. Recession
D. none of these
Question 28
A_________________system of departmental account is more convenient where thenumber of department are very small
A. Mutual.
B. Branch.
C. Debtor’s.
D. Profit and loss
Question 29
A-5 does not indicate the frequency of interim financial report.
A. TRUE
B. either true or false
C. both a and b
D. only false
Question 30
Acceptance, Endorsements and other obligations are a contingent liability of bank.
A. TRUE
B. FALSE
C. May be false
D. May be true
Question 31
Accounting is mainly concerned with the future management planning.
A. Personal.
B. Quasi single entry
C. Pure single entry
D. Management
Question 32
Accounting Standards are beneficial not only to the business enterprises butalso to the______________ as well.
A. accountants & auditor
B. Customers
C. Family and Country
D. Traders
Question 33
Accounting Standards in India are Issued by the ______________
A. ICAI
B. BMCC
C. IT
D. IMA
Question 34
Actual petty expenses paid by branch from petty cash are to br shownseparately in Branch Account.
A. TRUE
B. FALSE
C. both a and b
D. none of the above
Question 35
All items of stock in Trading and Profit and loss Account are to be convertedinto cost price if these are given at an _
A. Profit ratio.
B. market price
C. Balance.
D. Invoice price
Question 36
All sums of_______________ received and expended by the Society and the matters inrespect of which receipts and expenditure take place.
A. Money
B. Profit
C. Interest
D. Income
Question 37
A marine insurance policy is taken to cover the claims for loss of stock.
A. TRUE
B. FALSE
C. may be true
D. both a and b
Question 38
An assets become non-performing when it ceases to generate income for a Bank.
A. TRUE
B. FALSE
C. May be false
D. May be true
Question 39
An assets becomes non performing when it to generate income for bank.
A. lease
B. ceases
C. computerized
D. easy.
Question 40
An ideal current ratio is considered as 1:2
A. FALSE
B. TRUE
C. may be true
D. both a and b
Question 41
An ideal Liquid ratio is considered as 1:1
A. TRUE
B. FALSE
C. a and b both
D. none of the above
Question 42
AS – 7 deals with accounting for Government grants.
A. FALSE
B. TRUE
C. may be true
D. neither true nor false
Question 43
AS _______________ also focuses on profit sharing and bonus plan.
A. AS- 15
B. AS-21
C. AS- 28
D. AS- 7
Question 44
AS 15 deals with the accounting for retirement benefits in the financialstatements of ______________
A. employers
B. employees
C. top manager
D. none of these
Question 45
AS -20 deals with presentation and Computation of_______________
A. earnings per share
B. profit sharing ratio
C. rate of interest
D. solvency
Question 46
AS -26 deals with the treatment of costs of_______________in financial statements.
A. Research & development
B. Construction contract
C. Assets
D. Risk & Rewards
Question 47
AS 7 does not apply to Contractors
A. FALSE
B. TRUE
C. none of the above
D. may be false
Question 48
As per AS 15 accumulated compensated absences can be carried forward ifthe current period entitlement is not used in full.
A. TRUE
B. FALSE
C. may be false
D. may be true
Question 49
As per As- 28 impairment of asset means decrease in the value of asset.
A. TRUE
B. FALSE
C. only true
D. May be true
Question 50
As per AS -30 prepaid expenses are not financial instruments.
A. TRUE
B. FALSE
C. neither true nor false
D. may be false.
Question 51
As per AS 7 Research and Development cost is to be excluded from contractcost .
A. TRUE
B. FALSE
C. may be false
D. neither a nor b
Question 52
As per AS architects services are not included in construction contract.
A. FALSE
B. TRUE
C. may be true
D. both a and b
Question 53
As per AS-19 ____________nlease risk and reward is not transferred to the lessee.
A. operating
B. non operating
C. manageable
D. refundable
Question 54
AS-17 segment reporting applies to those companies which have an annualturnover of Rs_________ crores or more.
A. 50
B. 80
C. 21
D. 20
Question 55
AS-7 deals with accounting for construction contracts in financial statements of
A. contractors
B. Accountants
C. Agents
D. Dealers
Question 56
Average clause is applicable in case of under insurance.
A. TRUE
B. FALSE
C. only true
D. may be false
Question 57
Banking companies in India are governed by _______________________
A. As per act 1932
B. Income Tax act
C. AS-23
D. Banking Regulation Act 1949
Question 58
Banking Companies in India are governed by Banking Regulation act 1952.
A. TRUE
B. FALSE
C. may be true
D. ma be false
Question 59
Banks are to recognize their income on cash basis in respect of income on performing assets.
A. TRUE
B. FALSE
C. may be true
D. may be false
Question 60
Banks are to recognize their income on_______________.basis in respect ofincome on performing asset.
A. Accrual
B. cash
C. credit
D. none.
Question 61
Banks are to recognize their income on__________________ basis in respect ofincome on non performing asset.
A. Accrual
B. cash
C. credit
D. none.
Question 62
Creditors turnover ratio is also called .
A. stock turnover ratio.
B. debtors velocity ratio.
C. accounts payables ratio.
D. working capital turnover ratio.
Question 63
Current ratio indicates the solvency position of the business.
A. TRUE
B. FALSE
C. may be false
D. a and b
Question 64
Current ratio is a
A. short-term solvency ratio.
B. long-term solvency ratio.
C. profitability ratio.
D. turnover ratio.
Question 65
Debtors turnover ratio is also called .
A. stock turnover ratio.
B. debtors velocity ratio.
C. creditors velocity ratio.
D. working capital turnover ratio
Question 66
Dependent branch doesn’t keep any book of account as their entireAccounting work is performed by the head office.
A. TRUE
B. may be false
C. neither true nor false
D. may be true
Question 67
Deposits from Society and individuals should be shown separately to the ________side of balance sheet.
A. Liabilities
B. Current Assets
C. Education Fund
D. Fixed Assets
Question 68
Determine Working capital turnover ratio if, Current asset is Rs 1,50,000, current liability is Rs 1,00,000 & cost of goods sold is Rs 3,00,000.
A. 5 times
B. 6 times
C. 3 times
D. 1.5 times
Question 69
Dividend received on shares is comes to the_______________side of profit and lossaccount.
A. Income
B. Profit
C. Interest
D. loss
Question 70
Due to the inclusion of average clause in the fire insurance policy , an insuredbecomes a__________________ in the event of under insurance.
A. co-insurer
B. provision
C. profit
D. loss
Question 71
Earning per share is very important financial ratio is computed for assessingthe state of ______________price of shares.
A. Market
B. area
C. shops
D. none of these
Question 72
Every banking company incorporated in India must transfer to the Reserve fund a sum equivalent to not less than 25% of profit of each year before declaration of dividend.
A. TRUE
B. FALSE
C. only a
D. a or b
Question 73
Every banking company should prepare a balance sheet and profit and lossaccounts as on_________________each year.
A. 31st March
B. 31st July
C. 31st December
D. None
Question 74
Financial Statement Analysis can be used for assessment of past performanceonly.
A. FALSE
B. TRUE
C. either true or false
D. only true
Question 75
Fixed assets ratio is a
A. short-term solvency ratio.
B. long-term solvency ratio.
C. profitability ratio.
D. turnover ratio.
Question 76
Fixed assets turnover ratio is a
A. short-term solvency ratio.
B. long-term solvency ratio.
C. profitability ratio.
D. turnover ratio.
Question 77
Foreign Branch almost invariably trade independently and records theirtransaction in
A. cost price
B. Market value
C. Foreign currency
D. invoice price
Question 78
General insurance business in India is transacted by Life Insurance Corporationof India.
A. TRUE
B. FALSE
C. may be true
D. may be false
Question 79
General profitability ratios are based on
A. Investment
B. Sales
C. A & B
D. None of the above
Question 80
Goods sent by the head office at the end of the year but not received by Branchbefore the year ended is known as
A. goods in transit
B. loss by fire
C. shortage.
D. loss
Question 81
Govt. grants become ___________because of non fulfillment of the conditionsattached to that grant.
A. Refundable
B. non refundable
C. overdraft
D. income
Question 82
Gross profit must always be calculated as a percentage on purchase .
A. TRUE
B. FALSE
C. either true or false
D. may be false
Question 83
GST stands for____________.
A. Goods and service tax.
B. Government Service tax
C. God down Surcharge
D. B and C
Question 84
If Gross profit is 54000 and sales is Rs. 180000 then gross profit ratio will be ___.
A. 30%
B. 45%
C. 15%
D. 25%
Question 85
If Gross profit is 600000, sales is Rs. 15,00,000 then gross profit ratio will be______________
A. 40%
B. 50%
C. -40%
D. -50%
Question 86
If Gross profit is Rs. 27000 and Sales Rs. 90000 then gross profit will be ________
A. 30%
B. 25%
C. 30%
D. 30%
Question 87
IF Gross profit rate is 20% and Short Sales is Rs. 400000, then Loss of Profit onSales will be ___________
A. Rs. 80000
B. Rs. 50000
C. Rs. 85000
D. None of the above
Question 88
IF Gross profit rate is 40% and Short Sales is Rs. 250000, then Loss of Profit onSales will be ___________
A. Rs. 100000
B. Rs. 50000
C. Rs. 85000
D. None of the above
Question 89
If Net Profit is Rs. 200000 Insured Standing Charges is Rs. 160000 Sales of The Previous year is Rs. 1800000 Then Gross Profit Rate will be____________
A. . 20%
B. 30%
C. 40%
D. 45%
Question 90
If Net Profit is Rs. 400000 Insured Standing Charges is Rs. 320000 Sales of The Previous year is Rs. 3600000 Then Gross Profit Rate will be____________
A. . 20%
B. 30%
C. 50%
D. 65%
Question 91
If sales is Rs 5,00,000 & net profit is Rs 1,20,000 Net profit ratio is
A. 24%
B. 416%
C. 60%
D. None of the above
Question 92
If Sales of last year is Rs. 450000 and sales of corresponding current year isRs.200000 then Short sales will be _______________
A. 250000
B. 500000
C. 250000
D. 256000
Question 93
If Sales of last year is Rs. 600000 and sales of corresponding current year isRs.200000 then Short sales will be _______________
A. 400000
B. 500000
C. 250000
D. 256000
Question 94
If Stock is 13500 for 90% then for 100% how much_________.
A. 15000
B. 14000
C. 13500
D. 15500
Question 95
If stock is for 110_________________ 44000 100__________________?
A. . 40000
B. 50000
C. 55000
D. 45000
Question 96
If stock is for 90_________15300 100 ____________?
A. . 17000
B. 18000
C. 29000
D. 15500
Question 97
If the closing capital is more than the opening capital it’s shows an increase in capital which means a _______________
A. Profit.
B. Shares.
C. Account.
D. Operating capital
Question 98
If value of Insurance Policy is 21000, Stock on date of Fire is 24000 and Loss of stock is 20000 then Amount of Claim for stock will be _______________
A. . 17500
B. 18000
C. 19000
D. 25000
Question 99
If value of Insurance Policy is 31500, Stock on date of Fire is 36000 and Loss of stock is 27000 then Amount of Claim for stock will be _______________
A. 0.23625
B. 24625
C. 25625
D. 23525
Question 100
If value of Insurance Policy is 63000, Stock on date of Fire is 72000 and Loss of stock is 54000 then Amount of Claim for stock will be _______________
A. 47250
B. 48250
C. 26000
D. 25000
Question 101
If value of stock on date of fire is 420000, salvage is 10000 then stockdestroyed by fire will __________________
A. 410000
B. 400000
C. 450000
D. 430000
Question 102
If value of stock on date of fire is 420000, salvage is 1500000 then stockdestroyed by fire will __________________
A. 250000
B. 255000
C. 253000
D. 251000
Question 103
If value of stock on date of fire is 429000, salvage is 1570000 then stockdestroyed by fire will __________________
A. 271500
B. 270000
C. 275000
D. none of the above
Question 104
Impairment assets is nothing but_____________________ in the value of assets
A. decrease
B. increase
C. fixed
D. none of these
Question 105
In Branch Accounting the balance on stock reserved Account at the end of theperiod is shown in the balance sheet by the way of deduction from
A. opening stock.
B. reserved stock.
C. closing stock.
D. profit or loss
Question 106
Core banking system____________system.
A. Bank end
B. work flow
C. open end
D. internal
Question 107
In single entry system it’s difficult to detect
A. Account
B. Fraud.
C. Profit.
D. Gross profit
Question 108
In single entry system it’s difficult to exercise control over .
A. Asset
B. Management
C. Single entry
D. Pure single entry
Question 109
In single entry system it’s difficult to operate _______________.system
A. Pure single
B. Single entry
C. Internal control
D. Quasi single
Question 110
In_____________________entry system no records are kept for real or nominal Account.
A. Quasi single
B. pure single
C. Simple single
D. Double entry
Question 111
Insurance is a financial service for collecting the saving of the public andproviding them with a risk of a coverage.
A. TRUE
B. FALSE
C. may be true
D. a and b
Question 112
Insured standing charges are the ______________
A. fixed charges
B. horizontal charges
C. fluctuating
D. current charges
Question 113
Interest paid and payable comes to the_______________side of the profit and lossaccount.
A. Expenditure
B. Receipt
C. Interest
D. income
Question 114
Inventory or stock turnover ratio is also called .
A. stock velocity ratio.
B. debtors velocity ratio.
C. creditors velocity ratio.
D. working capital turnover ratio.
Question 115
Investment made by government as equity in the ownership of an enterprise isknown as ____________
A. participation
B. interested
C. refundable
D. not interested
Question 116
Loading on surplus in stock is____________.to Branch Adjustment Account.
A. debit.
B. credit.
C. liability.
D. treading
Question 117
Liquid asset is determined by
A. Current asset - stock - prepaid expense
B. Current asset + Stock +prepaid expense
C. Current asset + prepaid expense
D. None of the above
Question 118
Liquid Ratio is also known as 2:1 ratio.
A. FALSE
B. TRUE
C. either true or false
D. none of the above
Question 119
Maharashtra co-operative Society Act________
A. 1960
B. 1949
C. 1986
D. 1932
Question 120
Managing committee of every Society shall prepare annual statement ofaccounts within_______________ days.
A. 42
B. 45
C. 2 yrs.
D. 48
Question 121
Most of the farming transactions are transacted on _________________basis.
A. Double entry
B. Creditors.
C. Surplus.
D. Cash
Question 122
Net profit ratio is a .
A. turnover ratio.
B. long term solvency ratio.
C. short term solvency ratio
D. profitability ratio.
Question 123
Non-Banking Assets must be shown in the Balance Sheet in scheduled 8.
A. TRUE
B. may be false
C. may be true
D. FALSE
Question 124
on_______________________the GST law came into the force.
A. 1st July 2017
B. 2nd June 2018
C. 1st June 2017
D. 18th July 2019
Question 125
Opening stock + purchases + direct expenses – closing stock =
A. net profit.
B. cost of production
C. administrative expenses.
D. cost of goods sold
Question 126
Preliminary expenses is an example of
A. fixed assets.
B. current assets.
C. fictitious assets.
D. current liabilities.
Question 127
Prepaid expenses is an example of .
A. fixed assets.
B. current assets.
C. fictitious assets.
D. current liabilities.
Question 128
Profit and losses can’t be ascertained because Trading and Profit and loss account can’t be prepared.
A. TRUE
B. FALSE
C. may be true
D. may be false
Question 129
Profit for the objective of calculating a ratio may be taken as
A. Profit before tax but after interest
B. Profit before interest &tax
C. Profit after interest & tax
D. All the above
Question 130
Proprietary ratio is a .
A. short-term solvency ratio.
B. long-term solvency ratio.
C. profitability ratio.
D. turnover ratio.
Question 131
Ratio analysis ensures effective cost control.
A. TRUE
B. FALSE
C. none of the above
D. may be both
Question 132
Ratio analysis helps in investment decision.
A. TRUE
B. FALSE
C. may be true
D. a & b both
Question 133
Ratio analysis is an important means of expressing the relationship between two numbers.
A. TRUE
B. FALSE
C. may be false
D. a and b both
Question 134
Rebate of Bills discounted is an income received in advanced which is carried forward as other liability.
A. TRUE
B. FALSE
C. may be true
D. only true
Question 135
Recoverable amount of an asset isof selling price and value of an assets in use.
A. higher
B. lower
C. a and d only
D. fixed
Question 136
Reserve for doubtful debts is stands for ____________
A. RDD
B. Reserve fund
C. Bad debts
D. Loans and advances
Question 137
Reliability of ratios depend upon the reliability of financial data.
A. TRUE
B. FALSE
C. only a
D. both a and b.
Question 138
Return on equity is also called
A. return on investment.
B. gross profit ratio.
C. return on shareholders funds.
D. return on net worth.
Question 139
Return on investment is a .
A. turnover ratios.
B. short term solvency ratio.
C. profitability ratios.
D. long term solvency ratio.
Question 140
Revised AS 15 – Employees benefits is applicable in respect of accountingperiods commencing on or after 1st April _________
A. 2006
B. 1978
C. 2001
D. 2009
Question 141
Right issue generally made at a price lower that_______________ value of shares.
A. Fair
B. fixed
C. computing
D. fluctuating
Question 142
Sales – Gross Profit = .
A. net profit.
B. administrative expenses.
C. cost of production.
D. cost of goods sold.
Question 143
Rule number 61 of the Maharashtra Co-operative Society Rule 1961- thesociety has to prepare final statement within_________.days.
A. 45
B. 48
C. 21
D. 2 yrs
Question 144
Single entry constitutes incomplete records rather than single entry
A. credit.
B. Profit.
C. Accounting.
D. Net profit
Question 145
Single entry system is mixture of single entry, double entry and no entry.
A. TRUE
B. may be false
C. only true
D. none of the above
Question 146
Stock and Debtors method of branch accounting is generally used wherebranch turnover is substantially
A. loss
B. lower
C. High.
D. Profit
Question 147
Sub standard asset are certain loan asset of a bank which are classified as____________ assets for a period not exceeding two year.
A. non –performing
B. performing
C. Current
D. Fluctuating.
Question 148
Stock is considered as a liquid asset as anytime it can be converted into cash immediately.
A. Yes
B. No
C. Only YES
D. None of the above
Question 149
Stock turnover ratio is a .
A. turnover ratio.
B. profitability ratio.
C. short term solvency ratio.
D. long term solvency ratio.
Question 150
Sub-standard assets is one which has been classified as non performing asset for a period not exceeding three years.
A. TRUE
B. FALSE
C. may be true
D. only true
Question 151
The accounting standards Board (India) was formed by the Institute ofChartered Accountants of India in April_______________
A. 1977
B. 1978
C. 2001
D. 2009
Question 152
The amount paid by insured to insurer as a consideration is known aspremium.
A. TRUE
B. FALSE
C. may be true
D. may be false
Question 153
The banking regulation Act __.
A. 1949
B. 1947
C. 1932
D. 1956
Question 154
The branches which are totally dependent on head office are also termed asAgency Branches.
A. TRUE
B. FALSE
C. may be false
D. may be a
Question 155
The closing balance of book debts account is ascertained by preparing branch__________________Account.
A. stock
B. trading.
C. Debtors
D. adjustment
Question 156
The computation of loss by fire is very simple taken when a ______________asset is destroyed
A. current
B. long-term
C. fire
D. intangible
Question 157
The dividend is related to the market value of shares in .
A. interest cover ratio.
B. fixed dividend cover ratio.
C. debt service coverage ratio.
D. dividend yield ratio.
Question 158
The gross profit represents the net margin.
A. FALSE
B. TRUE
C. both a and b
D. may be false
Question 159
The independent branches are autonomous as they are allowed to make their own purchases from open markers and pay for their expenses.
A. TRUE
B. FALSE
C. may be false
D. both a and b
Question 160
The Insurance Company cannot prevent the happening of risk but provide forlosses at the happening of risk.
A. TRUE
B. FALSE
C. only a
D. a and b
Question 161
The important objective of Accounting standards is to the ______________diverseaccounting policies and practices at present in use in India.
A. harmonies
B. incomplete
C. complex
D. compact
Question 162
The investment on hand at the end of the period are valued at cost price ormarket whichever is ____________
A. Less
B. included
C. Addd
D. excluded
Question 163
The Maharashtra co-operative Society Rules Act _________.
A. 1960
B. 1961
C. 1932
D. 1962
Question 164
The main function of a banking company are to accept deposits of moneyfrom the public and to lend or invest these deposits.
A. TRUE
B. FALSE
C. only true
D. ma be false
Question 165
The main function of__________________company are accepts deposits money
A. Private
B. Public
C. Banking
D. Capital marketing
Question 166
The method of Branch Accounting varies with the nature and the status ofbranch.
A. TRUE
B. FALSE
C. neither true nor false
D. none of the above
Question 167
The normal and abnormal stock of goods doesn’t appear in branch account asthe closing stock is at the_______________ figure.
A. Adjusted
B. profit.
C. balance.
D. loss
Question 168
The online version of collecting tax was introduced in the year____________
A. 2004
B. 2006
C. 2005
D. 2015
Question 169
The period for which a policy is taken known __________________ as period
A. indemnity
B. short sales
C. long
D. fixed
Question 170
In financial lease as per As-19 leased assets is shown in the Balanced sheet of__
A. lessee
B. income
C. loss
D. refund
Question 171
The ratio analysis is helpful to management in taking several decisions, but asa mechanical substitute for judgement and thinking, it is worse than useless.
A. TRUE
B. FALSE
C. may be false
D. both a and b
Question 172
The ratio establishes the relationship between profit before interest and taxand fixed interest charges is .
A. interest cover ratio.
B. fixed dividend cover ratio.
C. debt service coverage ratio.
D. dividend yield ratio.
Question 173
The ratio shows the preference dividend as a proportion of profit available forshareholders is
A. interest cover ratio.
B. fixed dividend cover ratio.
C. debt service coverage ratio.
D. dividend yield ratio.
Question 174
The ratio which determines the profitability from the shareholder’s point ofview is .
A. return on investment.
B. gross profit ratio.
C. return on shareholders funds.
D. operating profit ratio.
Question 175
The ratio which indicates earnings per share reflected by the market price is .
A. retained earnings ratio.
B. pay out ratio.
C. earnings per share.
D. price earnings ratio.
Question 176
The ratio which is calculated to measure the productivity of total assets is
A. return on equity.
B. return on share holders funds.
C. return on total assets.
D. return on equity share holders’ funds.
Question 177
The ratio which measures the profit in relation to capital employed is known as
A. return on investment.
B. gross profit ratio.
C. operating ratio.
D. operating profit ratio.
Question 178
The ratio which measures the relationship between the cost of goods sold andthe amount of average inventory is
A. stock turnover ratio.
B. debtors velocity ratio.
C. creditors velocity ratio.
D. working capital turnover ratio.
Question 179
The ratio which shows the proportion of profits retained in the business out ofthe current year’s profits is
A. retained earnings ratio.
B. pay out ratio
C. earnings per share.
D. price earnings ratio.
Question 180
The ratios which reveal the final result of the managerial policies and performance is______________
A. turnover ratios.
B. profitability ratios.
C. short term solvency ratio.
D. long term solvency ratio.
Question 181
The relationship between two financial variables can be expressed in:
A. Pure ratio
B. Percentage
C. Rate or time
D. all the above
Question 182
The removal of loading from the items of branch stock is adjusted throughbranch_________________Account
A. adjustment
B. debtor.
C. Stock
D. profit and loss
Question 183
The value of stock on the date of fire can be ascertained more precisely bypreparation of a_______________ Account
A. Trading A/c
B. memorandum transaction A/c
C. Balance sheet
D. P & L A/c
Question 184
The word___________Is working together for common purpose.
A. Co-operation
B. co-education
C. Interest
D. enactment
Question 185
The__________________Fund cannot be utilized for payment of dividend as bonus.
A. building fund
B. Reserve fund
C. Education Fund
D. Loans and advances
Question 186
They record a few translation completely just like the double entry system but a majority of the transactions are recorded only partially is known as incomplete records.
A. TRUE
B. FALSE
C. both a and b
D. none of the above
Question 187
To fulfill the audit requirements under section of the company act 1956
A. (B) 156
B. 228
C. (a) i 30.
D. 200
Question 188
Transactions involving receipt in_________________are recorded on receipt side of cashbook.
A. Cash
B. Profit
C. Interest
D. loss
Question 189
Transfer of money from one place to another i.e. mail transfer is an item to be excluded from bills payable.
A. TRUE
B. FALSE
C. May be false
D. May be true
Question 190
Turnover ratio is also known as .
A. activity ratios.
B. solvency ratios.
C. liquidity ratios.
D. profitability ratios.
Question 191
Under pure single entry system only_________________Account are kept.
A. Personal
B. double entry
C. Assets
D. None of these
Question 192
Under single entry system arithmetical accuracy of the Accounting records can be checked.
A. TRUE
B. FALSE
C. may be false
D. both a and b
Question 193
Under single entry system the profit and loss can be found out and also it’s comparison will be available.
A. TRUE
B. FALSE
C. both and b
D. only false
Question 194
Under statement of affairs method which is also termed as .
A. Single entry system
B. Quasi single entry system
C. Capital comparison method
D. Double entry system
Question 195
Under Stock and Debtors System general income is credited to ___________account
A. balance sheet
B. branch stock account
C. stock and Debtor System
D. branch profit and loss
Question 196
Under the_____________________ entry system personal accounts, cashbook and othersubsidiary books are kept separately.
A. Pure single
B. Quasi single
C. Simple single
D. Double entry
Question 197
Under_______________ entry system, Personal Accounts and Cash Book are kept separately.
A. Simple single
B. Pure s ingle.
C. Quasi single.
D. Double entry
Question 198
What will be the Gross Profit if , total sales is Rs 2,60,000,cost of net goods soldis Rs 2,00,000 & sales return is Rs10,000 ?
A. 13%
B. 28%
C. 26%
D. 20%
Question 199
When the concept of ratio is defined in respect to the item shown in thefinancial statements, it is termed as
A. Accounting ratio
B. Financial ratio
C. costing ratio
D. none of the above
Question 200
Which of the following is not included in current assets.
A. Debtors
B. Stock
C. Cash at bank
D. Cash in hand
Question 201
Which ratio is calculated to ascertain the efficiency of inventory managementin terms of capital investment?
A. stock velocity ratio.
B. debtors velocity ratio.
C. creditors velocity ratio.
D. working capital turnover ratio.
Question 202
Which ratio measures the number of times the receivables are rotated in ayear in terms of sales?
A. stock turnover ratio.
B. debtors turnover ratio.
C. creditors velocity ratio.
D. working capital turnover ratio.
Question 203
Working capital turnover ratio can be determined by :
A. ( Gross profit / Working capital )
B. ( Cost of goods sold / Net sales )
C. ( Cost of goods sold / Working capital)
D. None of the above
Question 204
The primary objective in the formation of Co-operative credit Society is _________
A. promoting of saving
B. To Maintain Stock Register
C. A and C only
D. to get maximum profit