Question 1

Which of the following is a long term

liability?
a) Accruals on year end cost
b) House Building Loan
c) Bank Overdraft
d) Dividend Payable
Question 2
Clinic The Cure purchased a machine of Rs 5, 00,000
and incurred Rs 10,000 on freight.
On the way it paid taxes 10% on cost out of which a
reimbursement of 8% would be availed since the clinic
is operating in North-East region.
If the life of the asset is expected to be 20 yrs find out
the depreciation to be charged annually.
Question 3
Which of the following is revenue
expenditure?
a) Spending on computer hardware
b) Spending on building
c) Spending on car
d) Spending on wages & salaries
Question 4
Balance of current assets over
current liabilities is known as
a) Net Assets
b) Working Capital
c) Trading Assets
d) Assets on place
Question 5
Calculate the equity of a firm with the following
balances:
Fixed assets 250000,
Loan 1, 15,000
Inventory- 65000
Deferred revenue 5000
Reserve & Surplus 1, 50,000
Question 6
Patents, Goodwill and Trademarks
are example of
a) Intangible assets
b) Intangible liabilities
c) Current Assets
d) Tangible Assets
Question 7
Suppliers who provide goods and
services to business on credit are
known as
a) Trade debtors
b) Sundry creditors
c) Sundry debtors
d) Financers
Question 8
Which of the followings action would
not improve the profit margin?
a) Change to a supplier of cheaper inventory
b) Increase the selling price of products
c) Reduce the credit limit to customers
d) Reduce the advertisement expenses
Question 9
Which of the followings is a
representative account?
a) Capital Account
b) Building Account
c) Revenue Account
d) SBI Loan
Question 10
Retained Profit is calculated as
a) Profit after Tax less dividend
b) Gross Profit less overheads
c) Operating profit plus dividends
d) Sales less cost of sales
Question 11
Matching concept relates to the
preparationof :
(a) Profit & Loss Account
(b) Balance Sheet
(c) Cash Flow Statement
(d) Funds Flow Statement
Question 12
Which of the followings is true
a) Economic Profit > Accounting Profit
b) Economic Profit = Accounting Profit
c) Economic Profit < Accounting Profit
d) None of the above
Question 13
Profit and Loss Account is prepared for
a period of one year by following :
(a) Cost concept
(b) Periodicity concept
(c) Consistency concept
(d) Conservatism concept
Question 14
Give a transaction that
a) Increase in one asset, decrease in
other asset and increase in capital.
b) Increase in capital and decrease in
liability.
Question 15
Ascertain the equities from the
following :
Capital- Rs.62,000
Income- Rs.38,000
Creditors- Rs.18,000
Bank O.D.- Rs.7,000
Bills payable- Rs.8,000
Expenses- Rs.32,000
Question 16
Both liabilities and owner's equity will
increase by :
(i) Purchase of assets on credit,
(ii) Drawing of goods by the proprietor,
(iii) Further investment by the proprietor,
(iv) None of these.
Question 17
Which of the followings are examples of
Fictitious Assets
a) Preliminary Expenses
b) Goodwill
c) Discount on issue of Shares
d) Court Case against an Insurance company
Question 18
Due to which principle, the capital contributed
by the owners is shown as liability ?
a) Consistency
b) Legal Entity
c) Cost
d) Dual Aspect
Question 19
A Profit of Rs 20000 is
a) A Transaction
b) An Event
c) Both a Transaction & Event
d) Neither Transaction nor Event
Question 20
From following figures Calculate the
commission of a broker for the year 2008
Commission Received Rs 67000
Commission accrued Rs 13000
Commission received in advance Rs 8000
Commission accrued for 2007 Rs 10000
Question 21
The resources of an enterprise is called
a) Liabilities
b) Assets
c) Capital
d) All the above
Question 22
Name the asset that comes first
under the order of liquidity
Question 23
Ascertain the cost of goods sold from the
following figures.
Rs.
Opening Inventory 850
Purchases 30,700
Purchase Returns 2,000
Freight Expenses 4,800
Godown Expenses 5,200
Closing Inventory 9,000
Question 24
What would be the impact of the following
transactions on the financial statements?
a) Surf Excel worth of Rs 5,000 is taken by the
office manager of HUL
b) HUL distributed surf excel pouch of Rs
500000 as free sample
Question 25
MV of share of a company having following balances
is Rs 50. Would you opt for it?
Share Capital
50000 Shares
500000 Intangible
Assets
800000
Reserve 2000000 Fixed Assets 2500000
Bank Loan 1000000 Current Assets 300000
Sundry Crs 300000 Fictitious
Assets
200000
* * Rs 3,00,000 of Intangible Assets have no market Value Rs 3,00,000 of Intangible Assets have no market Value