1.Which of the following is an operating item?

 Interest paid
 salmy paid
 share capital issued

2 . Accounting Standards are issued by which of the following entity, in India?

 ICAI
 SEBI
 RBI
 IFRS

3 . A business has paid the rent for the period Jan-March 2016 in June'2016, in which year financial
statements this rent expenses will be recorded?

 2015
 2016
 2017
 All of the above

4 . Both assets and owner's equity would be increased by __________________

 capital brought in
 Purchase of an asset on credit.
 Payment of creditors.
 Proprietors drawings.

5 . Who approves the financial statements of a company?

 Auditors
 Shareholders
 Management
 Board of Directors

6 . Which of the following can be categorized as discretionary Expense

 Purchase
 Salary
 Repair & Maintenance
 R&D Expense

7 . The Share Capital of a company is Rs 10 Cr divided in 10 Lac number of shares. Calculate the
face value of share
  Rs 100
 Rs 1000
 Rs10
 Rs1

8 . Which of the following statement shows the financial position of a business entity as on date?

 Income Statement
 Balance Sheet
 Trial Balance
 Cash Flow Statement

9 . Which of the following self genearted intangible asset can be recorded in books of account?

 Goodwill
 Technical Know-How
 Software
 All of the Above

10 . If manufacturing expenses are Rs 20000, interest expenses Rs 4000, cash sales is Rs 30000.
Increase in inventory and debtors is Rs 5000 and Rs 7000 respectively. While increase in accounts
payable is 9000. Calculate the cash flow from operations?

 Rs 9000
 Rs 3000
 Rs 7000
 Rs 12000

11 . Proceeds on the sale of fixed assets will be shown in which part of the cash flow statement, if
indirect method is followed?

 Operating Cash Flow

 Financing Cash Flow
 Investing Cash Flow
 None of the above

12 . XYZ Ltd paid Salaries of Rs 200000 in the month of March'2016. Journalize the transaction.

 Cash A'c Debited to Salary

 Salary A/c Debited to Cash
 Employees A/c Debited to Cash
 Employees A/c Debited to Salary

13 . Security Premium Reserve is an example of ________________

 Revenue Reserve
 Capital Reserve
 Reserve Capital
 Revaluation Reserve
14 . Which of the following can be categorised as Revenue?

 Sale of goods
 Sale of Old Furniture
 Dividend Received
 All of the above

15 . In which of the following bo;oks, seprate account is maintained for each item?

 Ledger
 Accounting Equation
 Trial Balance
 Journal

16 . Credit sales for the year is Rs 100000 and closing debtors are Rs10000. Calculate the collection
period of the firms?

 10 days
 36.5 days
 27.39 days
 None of the above

17 . Capital contributed by owners is recorded as liability as per which of the following concept?

 Monetary Unit
 Economic Entity
 Going Concern
 Dual Aspect

18 . ABC Ltd Purchased Machinery on 1st October 2017 at cost price of Rs 5 Lacs. There is no
salvage value and estimated useful life of Machinery is 5 years. How much depreciation should be
charged for Year 2017-18?

 1 Lac
 Zero
 50000
 None of these

19 . A new firm commenced business on 1st January 20016 and purchased goods costing Rs.
90,000 during the year. A sum of Rs. 6,000 was spent on freight inwards. At the end of the year the
cost of goods still unsold was Rs. 12,000. Sales during the year Rs.1,20,000. What is the gross profit
earned by the firm?

 Rs 36000
 Rs 30000
 Rs 42000
 Rs 38000
20 . Loss on the sale of Fixed Assets will be shown in which part of the cash flow statement, if
indirect method is followed?

 Operating Cash Flow

 Financing Cash Flow
 Investing Cash Flow
 None of the above

21 . Which of the following is liquidity ratio

 Debt to Equity Ratio

 Return on Investment
 Total Asset Turnover Ratio
 Current Ratio

22 . In which of the following books, transactions are first time recorded?

 Ledger
 Accounting Equation
 Trial Balance
 Journal

23 . Operating expenses of Moon Ltd are Rs 18000, Interest expenses Rs 5000, Tax paid Rs 4000.
If Sales is Rs 35000 then calculate the Net Profit Margin?

 0.2285
 0.7714
 0.51
 0 0.0657

24 . Purchase of machinery against issue of shares will be shown in which part of the cash flow
statement?

 Operating Cash Flow

 Financing Cash Flow
 Investing Cash Flow
 None of the above

25 . A credit sale of goods to Mohan should be debited to

 Sales account
 Mohan account
 Goods account
 Purchase account

26 . Which of the following is an financing item?

  Interest paid
 Salary paid
 Dividend received
 Share capital issued

27 . While preparing cash flow statements, the repayments of a loan during the year should be
included under the heading of

 Operating Cash Flow

 Financing Cash Flow
 Investing Cash Flow
 None of the above

28 . The balance of cash account indicates______________

 Net income for the period

 Net loss for the period
 Net cash on hand
 Net worth of the business

29 . Which of the following statement shows the Net Profit/Loss earned by a business entity?

 Income Statement
 Balance Sheet
 Trial Balance
 Cash Flow Statement

30 . Every accounting transaction must at least affect -_________accounts?

 One
 Two
 Three
 Four

Test-1 (2019) FNC-512

1. A business has paid the rent for the period Jan-March 2016 in Jllle'2016, in which year
financial statements this rent expenses will be recorded?

 2015
 2016
 2017
 All of the above

2. Security Premium Reserve is an example of

 Revenue Reserve
 Capital Reserve
 Reserve Capital
 Revaluation Reserve

3. Inwhich of the following books, separate accowit is maintained for each item?

 Ledger
 Accowiting Equation
 Trial Balance
 Joumal

4. Credit sales for the year is Rs 100000 and closing debtors are RslOOOO. Calculate the
collection period of the firm

 10 days
 36.5 days
 27.39 days
 None of the above

5. Advance from Customers is a example of

 Asset
 Liability
 lncome
 Expense

6. Both assets and owner 's equity would be increased by

 capital brought in
 Purchase of an asset on credit.
 Payment of creditors.
 Proprietors drawings.

7. The balance cash account it indicates

 Net income for the period

 Net loss for the period
 Net cash on hand
 Net worth of the business
8. Capital continued by owners is recorded as liability as per which of the following concept.

 Monetary Unit
 Economic Entity
 Going Concern
 Dual Aspect

9. Which of the following can be categorized as discretionary Expense

 Purchase
 Salary
 Repair & Maintenance
 R&D Expense

10. Which of the following self-generated intangible asset can be recorded in books of account.

 Goodwill
 Technical Know-How
 Software
 All of the Above

11. On 1st April 2017 P Ltd sells 100000 shares of Dabur India Ltd to Q Ltd at Rs 400 per share
(Market price on that day) with an agreement to repurchase the same at Rs 4 12 per share
on 31st Dec 2017. How the transaction should be presented in financial statements of P Ltd

 Sale of Investment
 Sale of Shares
 Borrowings
 Investment

12. A credit sale of goods to Mohan should be credited to

 Sales accowit
 Mohan accowit
 Goods accowit
 Purchase accowit

13. Which of the following statement shows the financial position of a business entity as on
date?

 Income Statement
 Balance Sheet
 Trial Balance
 Cash Flow Statement

14. XYZ Ltd paid Salaries of Rs 200000 inthe month of March'2016. Journalize the transaction.

 Cash Ale Debited to Salary

 Salary Ale Debited to Cash
 Employees Ale Debited to Cash
 Employees Ale Debited to Salary
15 . Proceeds on the sale of fixed assets will be shown in which part of the cash flow statement, if
indirect method is followed?

 Operating Cash Flow

 Financing Cash Flow
 Investing Cash Flow
 None of the above

16. A credit sale of goods to Mohan should be debited to

 Sales accowit
 Mohan accowit
 Goods accowit
 Purchase accowit

17. Which of the following is a financing item?

 Interest paid
 salary paid
 dividend received
 share capital issued

18. Which of the following is basic accounting equation?

 Capital-Liabilities =Assets
 Assets + Liabilities = Capital
 Assets+ Capital = Liabilities
 Liabities+ Capital =Assets

19. Wages paid to workers must be debited to accowit

 Wages
 Machinary
 Factiry Expenses
 Office Expenses

20. Which of the following is an example out Business liability?

 Land
 Building
 Cash
 Creditors

21. In which of the following firm structure liability of owners is wilimited

 Sole Proprietorship
 Ltd Liability Partnership
 Pvt. Ltd Company
 Public Ltd Company
 22. Decline in the value of intangible assets in a given year is known as.

 Depreciation
 Amortization
 Depletion
 Any of the above_

23. If manufacturing expenses are Rs 20000, interest expenses Rs 4000, cash sales is Rs
30000. Increase in inventory and debtors is Rs 5000 and Rs 7000 respectively. While
increase in accowits payable is 9000. Calculate the cash flow from operations?

 Rs 9000
 Rs 3000
 Rs 7000
 Rs 12000

24. Higher Debt-Equity ratio indicates

 High Operating Risk

 Low Operating Risk
 High Financial Risk
 Low Financial Risk

25 . in which of the following firm structure compliance cost is maximum

 Sole Proprietorship
 Ltd Liability Partnership
 Pvt. Ltd Company
 Public Ltd Company

26. Inwhich of the following form of business, income is taxed separately from its owners

 Sole Proprietorship
 Partnership
 Corporation
 All of the above

27. Inwhich of the following statement, final balances of all the accowits are prepared in the form
of a list

 Ledger
 Accowiting Equation
 Trial Balance
 Journal
 28. If total liabilities decreased by Rs20000 and stockholders' equity increased by Rs5,000
during a period of time, then total assets " must change by what amount and direction during
that same time period?

 Rsl5000 increase
 Rsl5000 decrease
 Rs 25000 increase
 Rs 25000 decrease

29. ABC Ltd Purchased Machinery on 1st October 2017 at cost price of Rs 5 Lacs. There is no
salvage value and estimated useful " life of Machinery is 5 years. How much
depreciation should be charged for Year 2017- 18?

 1 Lac
 Zero
 50000
 None of the above

30. While preparing cash flow statements, the repayments of a loan during the year should be
included wider the heading of.

 Operating Cash Flow

 Financing Cash Flow
 Investing Cash Flow
 None of the above

Assignment -2 ( 2019 ) FNC -512

1. Wages paid to workers must be debited to accowit

 Wages
 Machinary
 Factiry Expenses
 Office Expenses

2. When a Liability is increased, it is recorded on the

 Credit Side
 Debit Side
 Left Hand Side
 Any of the above

4. Capital continued by owners is recorded as liability as per which of the following concept?

 Monetary Unit
  Economic Entity
 Going Concern
 Dual Aspect

3. Operating expenses of Moon Ltd are Rs 18000, Interest expenses Rs 5000, Tax paid Rs
4000. If Sales is Rs 35000 then calculate the Net Profit Margin?

 00.2285
 00.77 14
 00.51
 00.0657

5. Credit sales for the year is Rs I 00000 and closing debtors are Rs I 0000. Calculate the
collection period of the firm?

 10 days
 036.5 days
 027.39 days
 0None of the above

6. On !st April 2017 P Ltd sells 100000 shares of Dabur India Ltd to Q Ltd at Rs 400 per share
(Market price on that day) with an agreement to repurchase the same at Rs 412 per share on
31st Dec 2017 . How the transaction should be presented in

financial staternenbts of P Ltd.

 Sale of Investment
 Sale of Shares
 Borrowings
 Investment

7. In order to reflect the efficiency in debtor's management, Debtor turnover ratio should be.
?

 lncreased
 Decreased
 Kept Constant
 •None of the above

8 Ram's acco1U1t in the acco1U1ts payable ledger has a Rs.2000 beginning balance. After
a transaction for Rs.500 is posted from the plD'chasesjolD'nal, the balance in Ram's acco1U1t is
__

 1500 Credit
 1500 Debit
 2500 Credit
 2500 Debit
 9. A credit sale of goods to Mohan should be credited to

 Sales account
 Mohan account
 Goods account
 Purchase account

10. Every acco1U1ting transaction must at least affect accounts?

two

11. loss on the sale of fixed assets will shown in which part of the cash flow statement . if indirect
method is followed.

. operating cash flow

financing cash flow
investing cash
none of the above

12. Advance from Customers is a example of ?

assets

13. Both assets and owner 's equity would be increased by _

 capital brought in
 Purchase of an asset on credit.
 Payment of creditors.
 Proprietors drawings

14. 15000 dec.

15. Security Premiwn Reserve is an example of.

 Revenue Reserve
 Capital Reserve
 Reserve Capital
 Revaluation Reserve

16. A credit sale of goods to Mohan should be debited to __

sales ac

17. Which of the following is an financing item

 Interest paid
 salary paid
 dividend received
  share capital issued

18. which of the following is an example ot business liability?

 land
 Building
 Cash
 Creditors

19. XYZ Ltd paid Salaries of Rs 200000 in the month of March'2016. Journalize the transaction

 Cash Ale Debited to Salary

 Salary Ale Debited to Cash
 Employees Ale Debited to Cash
 Employees Ale Debited to Salary

20. Inwhich of the following firm structure liability of owners is unlimited

 Sole Proprietorship
 Ltd Liability Partnership
 Pvt. Ltd Company
 Public Ltd Company

21. which of the following is an operating item?

 Interest paid
 salary paid
 dividend received
 share capital issued

22.There was a fire in M Ltd Godown. It resulted into loss of Rs 5 Cr goods. However the insurance
company accepted the claim of Rs 4 .5 Cr only. This willresult in in equity by Rs _

 Increase, 4.5 Cr
 Decrease, 0.5 Cr
 Increase, 0.5 Cr
 Decrease, 5 Cr

23. Who approves the financial statements of a company

 Auditors
 Shareholders
 Management
 Board of Directors
 24. higher Debt-Equity ratio indicates

higf financial risk

25. accoWlting Standards are issued by which of the following entity, in India?

 ICAI
 SEBI
 RBi
 IFRS

26. If Net Profit is Rs 10000, Preference Dividend is Rs 2000 and Number of Shares are 600,
calculate the EPS?

 16.66
 20
 13.33
 None of the above

27. which of the following can be categorized as discretionary Expense

R & D expenses

28. Inwhich of the following statement, final balances of all the acco1tt1ts are prepared in the
form of a list?

 Ledger
 Acco1tt1ting Equation
 Trial Balance
 Journal

29. Which of the following statement shows the financial position of a business entity as on date

 Income Statement
 Balance Sheet
 Trial Balance
 Cash Flow Statement