Practice Test

Q1) Accounting Standards in India are issued by Show Answer

Q2) Accounting Standards in India are issued by Show Answer

Q3) Accounting Standards Show Answer

Q4) How many Accounting Standards have been issued by ICAI ? Show Answer

Q5) It is essential to standardize the accounting principles and policies in order to ensure Show Answer

Q6) All of the following are limitations of Accounting Standards except Show Answer

Q7) A change in accounting policy is justified Show Answer

Q8) Accounting policy for inventories of Xeta Enterprises states that inventories are valued at lower of cost determined on Weighted average basis or not realizable value.Which accounting principle is followed in adopting the policy Show Answer

Q9) The areas wherein different accounting policies can be adopted are Show Answer

Q10) Selection of an inappropriate accounting policy decision may Show Answer

Q11) Accounting policies refer to specific accounting Show Answer

Q12) the major consideration governing the selection & application of accounting policies are Show Answer

Q13) which accounting principle is followed in adopting accounting policy of making provision for doubtful depth @5 % on debtor Show Answer

Q14) which accounting principle is followed in adopting accounting policy of treating the cost of calculating as an expenses Show Answer

Q15) which accounting principle is followed in adopting accounting policy of using WDV method of depreciation year after year Show Answer

Q16) if the change in accounting policy has a material effects in current period & the effect of changes is ascertained in part Show Answer

Q17) if the change in accounting policy has no material effects in current period but which is reasonable expected to have a material effect in later period Show Answer

Q18) Measurement discipline deals with Show Answer

Q19) X purchased a machinery amounting Rs.5,00,000 on 1st April,2001.On 31st March, 2007.The similar machinery could be purchased for Rs.10,00,000 but the realizable value of the machinery was estimated at Rs.6,00,000.The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal curse of business was calculated as Rs.7,00,000.The current cost of the machinery is Show Answer

Q20) X purchased a machinery amounting Rs.5,00,000 on 1st April,2001.On 31st March, 2007.The similar machinery could be purchased for Rs.10,00,000 but the realizable value of the machinery was estimated at Rs.6,00,000.The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal curse of business was calculated as Rs.7,00,000.The present value of the machinery is Show Answer

Q21) X purchased a machinery amounting Rs.5,00,000 on 1st April,2001.On 31st March, 2007.The similar machinery could be purchased for Rs.10,00,000 but the realizable value of the machinery was estimated at Rs.6,00,000.The present discounted value of the furniture net cash inflows that the machinery was expected to generate in the normal curse of business was calculated as Rs.7,00,000.The historical cost of the machinery is Show Answer

Q22) X purchased a machinery amounting Rs.5,00,000 on 1st April,2001.On 31st March, 2007.The similar machinery could be purchased for Rs.10,00,000 but the realizable value of the machinery was estimated at Rs.6,00,000.The present discounted value of the furniture net cash inflows that the machinery was expected to generate in the normal curse of business was calculated as Rs.7,00,000.The realizable value of the machinery is Show Answer

Q23) All of the following are valuation principles except Show Answer

Q24) Cost of machinery purchased on 1st April , 2005 10,00,000 , market value as on 31st March , 2006 11,00,000 at Rs. 11,00,000, which of the following valuation principles is being followed Show Answer

Q25) Change in accounting estimate means Show Answer

Q26) Mohan purchased a machinery amounting Rs.10,00,000 on 1st April, 2000. On 31st March,2006 the similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs.15,00,000. the present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business , was calculated as Rs.12,00,000. The current cost of machinery is Show Answer

Q27) Mohan purchased a machinery amounting Rs.10,00,000 on 1st April, 2000. On 31st March,2006 the similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs.15,00,000. the present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business , was calculated as Rs.12,00,000. The present value of machinery is Show Answer

Q28) Mohan purchased a machinery amounting Rs.10,00,000 on 1st April, 2000. On 31st March,2006 the similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs.15,00,000. the present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business , was calculated as Rs.12,00,000. The historical cost of machinery is Show Answer

Q29) which financial statements represents the accounting equations [Assets = Liabilities + Owner's Equity ] Show Answer

Q30) which of the following is correct ? Show Answer

Q31) which of the following is correct ? Show Answer

Q32) which of the following is correct ? Show Answer

Q33) which of the following is correct ? Show Answer

Q34) which of the following is correct ? Show Answer

Q35) which of the following is correct ? Show Answer

Q36) which of the following is correct ? Show Answer

Q37) which of the following is correct ? Show Answer

Q38) which of the following is correct ? Show Answer

Q39) The liabilities of a firm are Rs.6,000 & the capital of the proprietor is Rs.4,000. The total assets are Show Answer

Q40) The assets on 31.12.2011 Rs.60,000 & capital is Rs.45,000.Its liabilities on that date shall be Show Answer

Q41) R has asset of Rs.10,000 and liabilities of Rs.2,000.His capital would be Show Answer

Q42) If the firm borrows a sum of money ,there will be Show Answer

Q43) Goods purchased for cash is an example of Show Answer

Q44) Goods purchased for credit is an example of Show Answer

Q45) Goods returned to supplier is an example of Show Answer

Q46) Goods sold for cash is an example of Show Answer

Q47) Goods sold for credit is an example of Show Answer

Q48) Goods returned by customer is an example of Show Answer

Q49) Cash withdrawn by owner for personal use is an example of Show Answer

Q50) Goods withdrawn by owner for personal use is an example of Show Answer

Q51) Goods destroyed by fire is an example of Show Answer

Q52) Goods distributed as free sample is an example of Show Answer

Q53) Discount allowed is an example of Show Answer

Q54) Discount received is an example of Show Answer

Q55) Depreciation written off is an example of Show Answer

Q56) Bad debts written off is an example of Show Answer

Q57) Bad debts recovered is an example of Show Answer

Q58) Making Provision for Doubtful debts is an example of Show Answer

Q59) Making Provision for Discount on Debtor is an example of Show Answer

Q60) Making Provision for Depreciation is an example of Show Answer

Q61) Creating Reserve for discount on Creditor is an example Show Answer

Q62) Unaccrued Interest is an example of Show Answer

Q63) Prepaid insurance is an example of Show Answer

Q64) Accrued interest is an example of Show Answer

Q65) Outstanding rent is an example of Show Answer

Q66) An example of Increase in asset & increase in owner's capital is Show Answer

Q67) An example of Increase in liabilities & decrease in owner's capital is Show Answer

Q68) An example of decrease in liabilities & increase in owner's capital is Show Answer

Q69) An example of Increase is one liabilities & decrease in another liability is Show Answer

Q70) An example of Increase in asset & increase in owner's capital is Show Answer

Q71) Opening Capital Rs.10,000 .Profit during the year Rs.5,000.Drawing Rs.2,000.,Additional Capital introduced Rs.1,000 , Closing capital will be Show Answer

Q72) Opening Capital Rs.10,000 . Closing Capital Rs.21,000 .Drawing Rs.2,000.,Additional Capital introduced Rs.10,000 ,Profit during the year Show Answer

Q73) Closing capital Rs.20,000 Loss during the year Rs.1,000.Drawing Rs.3,000.,Additional Capital introduced Rs.4,000 , Opening Capital will be Show Answer

Q74) Opening Capital Rs.20,000 .Profit during the year Rs.5,000..,Additional Capital introduced Rs.1,000 , Closing capital Rest. 10,000 Drawing will be Show Answer

Q75) Opening Capital Rs.30,000 .Loss during the year Rs.8,000. Closing capital Rest. 15,000 Drawing Rs.7,000 Additional Capital introduced will be Show Answer

Q76) Mohan purchased a machinery amounting Rs.10,00,000 on 1st April, 2000. On 31st March,2006 the similar machinery could be purchased for Rest. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs.12,00,000.The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business , was calculated as Rs.12,00,000. The realizable value of machinery is Show Answer