Quiznetik

Advance Accounting | Set 1

1. The accounting standards Board (India) was formed by the Institute of Chartered Accountants of India in April---------------

Correct : A. 1977

2. Accounting Standards in India are Issued by the …………..

Correct : A. ICAI

3. Accounting Standards are beneficial not only to the business enterprises but also to the………….. as well.

Correct : A. accountants & auditor

4. The important objective of Accounting standards is to the …………..diverse accounting policies and practices at present in use in India.

Correct : A. harmonies

5. AS-7 deals with accounting for construction contracts in financial statements of

Correct : A. contractors

6. AS -26 deals with the treatment of costs of……………in financial statements.

Correct : A. Research & development

7. Investment made by government as equity in the ownership of an enterprise is known as ------------

Correct : A. participation

8. Govt. grants become -----------because of non fulfillment of the conditions attached to that grant.

Correct : A. Refundable

9. AS 15 deals with the accounting for retirement benefits in the financial statements of --------------

Correct : A. employers

10. Revised AS 15 – Employees benefits is applicable in respect of accounting periods commencing on or after 1st April ----------

Correct : A. 2006

11. AS …………….also focuses on profit sharing and bonus plan.

Correct : A. AS- 15

12. AS-17 segment reporting applies to those companies which have an annual turnover of Rs……….crores or more.

Correct : A. 50

13. …………….reporting helps uses of financial statements to better assess the risk and t returns of the enterprise.

Correct : A. segment

14. As per AS-19 …………nlease risk and reward is not transferred to the lessee.

Correct : A. operating

15. In financial lease as per As-19 leased assets is shown in the Balanced sheet of--

Correct : A. lessee

16. AS -20 deals with presentation and Computation of---------------

Correct : A. earnings per share

17. Earning per share is very important financial ratio is computed for assessing the state of --------------price of shares.

Correct : A. Market

18. Right issue generally made at a price lower that…………….value of shares.

Correct : A. Fair

19. Impairment assets is nothing but………………….in the value of assets

Correct : A. decrease

20. Recoverable amount of an asset isof selling price and value of an assets in use.

Correct : A. higher

21. AS 7 does not apply to Contractors

Correct : A. false

22. As per AS architects services are not included in construction contract.

Correct : A. false

23. As per AS 7 Research and Development cost is to be excluded from contract cost .

Correct : A. true

24. AS – 7 deals with accounting for Government grants.

Correct : A. false

25. As per AS 15 accumulated compensated absences can be carried forward if the current period entitlement is not used in full.

Correct : A. true

26. A parent co. should account for the investment in subsidiaries in accordance with AS -13

Correct : A. true

27. A-5 does not indicate the frequency of interim financial report.

Correct : A. true

28. A 25 focuses on change in accounting policies also.

Correct : A. true

29. As per As- 28 impairment of asset means decrease in the value of asset.

Correct : A. true

30. As per AS -30 prepaid expenses are not financial instruments.

Correct : A. true

31. The banking regulation Act --.

Correct : A. 1949

32. Banking companies in India are governed by …………………..

Correct : D. Banking Regulation Act 1949

33. An assets becomes non performing when it to generate income for bank.

Correct : B. ceases

34. Banks are to recognize their income on…………….basis in respect of income on performing asset.

Correct : A. Accrual

35. Banks are to recognize their income on……………… basis in respect of income on non performing asset.

Correct : B. cash

36. Sub standard asset are certain loan asset of a bank which are classified as ………….assets for a period not exceeding two year.

Correct : A. non –performing

37. The main function of………………company are accepts deposits money

Correct : B. Public

38. …………….asset is one which has been classified as non-performing asset for period not exceeding than………….years

Correct : A. Fixed – 13

39. Core banking system…………. system.

Correct : A. Bank end

40. Every banking company should prepare a balance sheet and profit and loss accounts as on……………..each year.

Correct : A. 31st March

41. Banking Companies in India are governed by Banking Regulation act 1952.

Correct : B. false

42. The main function of a banking company are to accept deposits of money from the public and to lend or invest these deposits.

Correct : A. true

43. Non-Banking Assets must be shown in the Balance Sheet in scheduled 8.

Correct : B. may be false

44. Acceptance, Endorsements and other obligations are a contingent liability of bank.

Correct : B. False

45. Rebate of Bills discounted is an income received in advanced which is carried forward as other liability.

Correct : A. true

46. Transfer of money from one place to another i.e. mail transfer is an item to be excluded from bills payable.

Correct : B. False

47. An assets become non-performing when it ceases to generate income for a Bank.

Correct : A. True

48. Banks are to recognize their income on cash basis in respect of income on performing assets.

Correct : B. false

49. Sub-standard assets is one which has been classified as non performing asset for a period not exceeding three years.

Correct : B. false

50. 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.

Correct : A. true

51. A business takes a……………insurance policy to cover the claims for loss of stocks and loss of profit.

Correct : A. Fire

52. The computation of loss by fire is very simple taken when a -------------- asset is destroyed

Correct : A. current

53. The value of stock on the date of fire can be ascertained more precisely by preparation of a…………… Account

Correct : B. memorandum transaction A/c

54. ……………..clause is applicable in case of under insurance

Correct : A. average

55. …………………policy cover loss of gross profit sustained as a consequence of business interruption.

Correct : A. loss of profit

56. The period for which a policy is taken known ……………….as period

Correct : A. indemnity

57. A ---------- policy covers loss of stock, fixed asset, profit, expenses etc.

Correct : B. comprehensive

58. Insured standing charges are the --------------

Correct : A. fixed charges

59. ……………… ratio indicates the relationship of gross profit to net sales in terms of percentage.

Correct : A. Gross profit

60. Due to the inclusion of average clause in the fire insurance policy , an insured becomes a……………….in the event of under insurance.

Correct : A. co-insurer

61. The Insurance Company cannot prevent the happening of risk but provide for losses at the happening of risk.

Correct : A. true

62. Insurance is a financial service for collecting the saving of the public and providing them with a risk of a coverage.

Correct : A. true

63. A marine insurance policy is taken to cover the claims for loss of stock.

Correct : B. false

64. The amount paid by insured to insurer as a consideration is known as premium.

Correct : A. true

65. General insurance business in India is transacted by Life Insurance Corporation of India.

Correct : B. false

66. A memorandum trading account is to be prepared to ascertained the value of stock on the date of fire.

Correct : A. true

67. A policy of fire insurance is intended to protect the assured against the loss caused by fire.

Correct : A. true

68. Gross profit must always be calculated as a percentage on purchase .

Correct : B. false

69. Average clause is applicable in case of under insurance.

Correct : A. true

70. A fire policy covers loss of or damaged to insured property.

Correct : A. true

71. If value of stock on date of fire is 429000, salvage is 1570000 then stock destroyed by fire will ………………

Correct : A. 271500

72. If value of stock on date of fire is 420000, salvage is 1500000 then stock destroyed by fire will ………………

Correct : A. 250000

73. If value of stock on date of fire is 420000, salvage is 10000 then stock destroyed by fire will ………………

Correct : A. 410000

74. If Gross profit is 600000, sales is Rs. 15,00,000 then gross profit ratio will be …………..

Correct : A. 40%

75. If Gross profit is 54000 and sales is Rs. 180000 then gross profit ratio will be ….

Correct : A. 30%

76. If Gross profit is Rs. 27000 and Sales Rs. 90000 then gross profit will be ……..

Correct : A. 30%

77. If Stock is 13500 for 90% then for 100% how much……….

Correct : A. 15000

78. If stock is for 90----------15300 100 -------------?

Correct : A. . 17000

79. If stock is for 110----------------- 44000 100-------------------?

Correct : A. . 40000

80. 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 ……………

Correct : A. . 17500

81. 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 ……………

Correct : A. .23625

82. 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 ……………

Correct : A. 47250

83. If Sales of last year is Rs. 600000 and sales of corresponding current year is Rs.200000 then Short sales will be ……………

Correct : A. 400000

84. 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…………

Correct : A. . 20%

85. 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…………

Correct : A. . 20%

86. IF Gross profit rate is 20% and Short Sales is Rs. 400000, then Loss of Profit on Sales will be ………..

Correct : A. Rs. 80000

87. IF Gross profit rate is 40% and Short Sales is Rs. 250000, then Loss of Profit on Sales will be ………..

Correct : A. Rs. 100000

88. If Sales of last year is Rs. 450000 and sales of corresponding current year is Rs.200000 then Short sales will be ……………

Correct : A. 250000

89. A society which as proclaimed as its objective the………….of economic interest of its member

Correct : A. Promotion

90. Maharashtra co-operative Society Act……..

Correct : A. 1960

91. The word………..Is working together for common purpose.

Correct : A. Co-operation

92. The Maharashtra co-operative Society Rules Act ……….

Correct : B. 1961

93. All sums of…………….received and expended by the Society and the matters in respect of which receipts and expenditure take place.

Correct : A. Money

94. Managing committee of every Society shall prepare annual statement of accounts within…………… days.

Correct : A. 42

95. Transactions involving receipt in……………..are recorded on receipt side of cash book.

Correct : A. Cash

96. Rule number 61 of the Maharashtra Co-operative Society Rule 1961- the society has to prepare final statement within……….days.

Correct : A. 45

97. Interest paid and payable comes to the……………side of the profit and loss account.

Correct : A. Expenditure

98. Dividend received on shares is comes to the……………. side of profit and loss account.

Correct : A. Income

99. The investment on hand at the end of the period are valued at cost price or market whichever is …………

Correct : A. Less

100. …………….is mentioned in the balance sheet as foot note.

Correct : A. Contingent liability