Practice Test

Q1) Which one of the following combinations of accounting assumptions are fundamental according to Accounting Standard 1 : Show Answer

Q2) Accounting Standard 1 is Show Answer

Q3) Accounting policies Show Answer

Q4) Purpose of Accounting Standard 1 is to establish a standard as to Show Answer

Q5) Vide Accounting Standard 1 fundamental accounting assumptions Show Answer

Q6) Following is an example of an accounting policy Show Answer

Q7) Following is an example of an accounting policy Show Answer

Q8) Following is an example of an accounting policy Show Answer

Q9) Following is an example of an accounting policy Show Answer

Q10) Following is an example of an accounting policy Show Answer

Q11) Following is an example of an accounting policy Show Answer

Q12) Following is an example of an accounting policy Show Answer

Q13) Following is an example of an accounting policy Show Answer

Q14) A concern should select an accounting policy which enables it to Show Answer

Q15) The following factor should be considered while selecting and applying accounting policies. Show Answer

Q16) The following factor should be considered while selecting and applying accounting policies Show Answer

Q17) The following factor should be considered while selecting and applying accounting policies Show Answer

Q18) According to AS 1, Disclosure should be made of Show Answer

Q19) According to As 1, Disclosure should form part of Show Answer

Q20) According to AS 1, Disclosure should be made Show Answer

Q21) According to AS 1, any changein accounting policy Show Answer

Q22) According to AS 1, the effect of any change in accounting policy on the value of any item in the final accounts should Show Answer

Q23) According to AS,1, if the effect of any chance in accounting policy on the value of any item in the final accounts cannot be ascertained. Show Answer

Q24) According to AS 1, A change likely to have an effect not in current but in later years, should be Show Answer

Q25) A concern has written off capital expenditure as revenue expenses by disclosing in the notes to accounts that it is the accounting policy of the concern to do so. According to AS 1. Show Answer

Q26) Which of the following should be deducted from the share capital to find out paid-up capital ? Show Answer

Q27) Dividends are usually paid on Show Answer

Q28) Which of the following is not shown under the head 'Share Capital' in the balance sheet of a company ? Show Answer

Q29) Which of the following items is not taken in P & L appropriation A/c Show Answer

Q30) Which of the following items cannot be shown as reserves ? Show Answer

Q31) As per schedule III, to the Companies Act, 2013 'unclaimed dividends' are to be shown as Show Answer

Q32) Interim dividend of a company can be declared by Show Answer

Q33) Which of the following is not an example of contingent liability ? Show Answer

Q34) Which of the following items cannot be shown under the heading 'Provision' with respect to balance sheet under the Companies Act, 2013 ? Show Answer

Q35) Which of the following is not an item under Current Assets, Loans and Advances under Part of Schedule III of the Companies Act, 2013 ? Show Answer

Q36) Which of the following is not a secured loan ? Show Answer

Q37) Which of the following will appear in the 'Profit & Loss Appropriation A/c' ? Show Answer

Q38) Advance tax that appears in the trial balance is shown Show Answer

Q39) In terms of Part I, Schedule III of the Companies Act, 2013, which of the following assets is shown under 'Fixed Assets' ? Show Answer

Q40) There was fire in the factory of a company and goods worth Rs.20,000 were lost. However, the insurance company accepted the claim to the extent of Rs.16,000.State which two statements out of 4 given below are true. Show Answer

Q41) A financial year a company may be for a period less or more than ___ year. Show Answer

Q42) Every Balance Sheet must comply with the requirements of Part __ of Schedule __ of the Companies Act, 2013 as far as possible. Show Answer

Q43) Every Profit and Loss Account must comply with the requirements of Part __of Schedule ___of the Companies Act, 2013 as far as possible. Show Answer

Q44) Interest accrued on investments is required to be shown under _____ in the balance Show Answer

Q45) Loose tools are required to be shown under ______ in the balance sheet of a company. Show Answer

Q46) Unutilized Monies from share issues is required to be shown under____ in the balance sheet of a company. Show Answer

Q47) Livestock is required to be shown under ____ in the balance sheet of a company. Show Answer

Q48) Bills Receivable are required to be shown under _______in the balance sheet of a company. Show Answer

Q49) Interest accrued but not due on a Secured Loans is required to be shown under ______ in the balance sheet of a company. Show Answer

Q50) Uncalled amount of partly paid shares is required to be shown under______in the balancesheet of a company. Show Answer

Q51) Option on Unissued Shares is required to be shown under ________ in the balance sheet of a company. Show Answer

Q52) Short Term Loans have been defined vide Schedule III as those which are due for not _____ than 1 year as at the date of the Balance Sheet. Show Answer

Q53) Arrears of Fixed Cumulative Preference Dividends are required to be shown under _________ in the balance sheet of a company. Show Answer

Q54) An item of expenditure of the company is to be shown separately if it exceeds __ % of the total revenue of the company or Rs.________ whichever is higher. Show Answer

Q55) According to Schedule III, in case any addition is made to any asset during the financial year, depreciation should be calculated on a ______basis from the date of such addition. Show Answer

Q56) Interest from Sinking Fund Investments is required under Schedule III to be credited to the____. Show Answer

Q57) Dividend ______ paid on amounts paid by shareholders as calls in advance. Show Answer

Q58) Balance of Unpaid Dividend A/c remaining unclaimed for _____ is to be credited to Investor Protection and Education Fund. Show Answer

Q59) Financial year of a company cannot exceed 12 months unless specially permitted by the Registrar where it may extend upto 15 months. Show Answer

Q60) Every Profit and Loss Account of a company must comply with the requirements of Part I of Schedule III of the Companies Act, 2013 as far as possible. Show Answer

Q61) An item of expenditure of the company is to be shown separately if it exceeds one % of the turnover of company or Rs. 1,00,000, whichever is lower. Show Answer

Q62) Any dividend remaining unpaid after 3 years from its due date can be transferred to capital reserve. Show Answer

Q63) If the dividend is not claimed within 7 yearsfrom the date of its transfer to a special bank account, the company retains it. Show Answer

Q64) If the dividend is not claimed within 7 years from the date of its transfer to a special bank account, the amount is distributed to the remaining shareholders. Show Answer

Q65) If the dividend is not claimed within 7 years from the date of its transfer to a special bank account, the amount is transferred to Registrar of Companies under its General Revenue Account. Show Answer

Q66) If the dividend is not claimed within 7 years from the date of its transfer to a special bank account, the amount is transferred to the investor Education and Protection Fund. Show Answer

Q67) Capital profit realized in cash can be used for paying dividend. Show Answer

Q68) Dividend can be paid out of capital, but interest cannot be paid out of capital. Show Answer

Q69) One of the few assets that is usually not depreciated is Goodwill. Show Answer

Q70) Future bad debts are usually estimated as percentage of debtors Show Answer

Q71) Amount paid on Forfeited Shares is added to Paid-up Capital in the Balance Sheet. Show Answer

Q72) Calls unpaid are added back to Authorised Share Capital in the Balance Sheet. Show Answer

Q73) Sundry Creditors are to be classified as(i) Amounts due for more than 6 months; and (ii) others. Show Answer

Q74) Sundry Debtors are to be classified as(i) Small Scale Industries; and (ii) others. Show Answer

Q75) Unclaimed dividends are shown underProvisions in the balance sheet. Show Answer

Q76) Unsecured contract on capital account are shown under Share Capital in the balance sheet. Show Answer

Q77) Under Secured Loans; Short Term Loans and Other Loans are to be shown separately. Show Answer

Q78) Current liabilities are deducted from Current assets so as to show the amount of Net current Assets in the horizontal formal of balance sheet Show Answer

Q79) The titles 'Sources of Funds' and 'Application of Funds' appear in the horizontal format of balance sheet Show Answer

Q80) Horizontal Balance Sheet cannot have separate schedules. Show Answer

Q81) In Fixed Assets Schedule, Opening Net Block = Opening Gross Block - Opening Depreciation. Show Answer

Q82) In Fixed Assets Schedule, Closing Net Block = Closing Gross Block - Depreciation for the year. Show Answer

Q83) In Fixed Assets Schedule, Closing WDV + Depreciation for the year = Opening Gross Block Show Answer

Q84) Provision for bad debts is shown under Provisions in the balance sheet Show Answer

Q85) Capital work-in-progress is shown under Inventory (Current Assets) in the balance sheet. Show Answer

Q86) According to Schedule III, the increase or decrease in the Rupee liability during the year due to a change in the rate of exchange for meeting the cost of the assets should be added to or deducted from the original cost of the assets. Show Answer

Q87) According to Schedule III, the names of scheduled banks are to be given separately, in regard to Bank Balance with them. Show Answer

Q88) The brokerage and discount on sales,including the trade discount, related to turnover is to be disclosed separately in the Profit and Loss Account. Show Answer

Q89) According to Schedule III. Repairs to furniture and fittings are to be disclosed separately in the profit and loss account. Show Answer

Q90) Dividend from subsidiary companies should be shown separately if it exceeds 1% of the total revenue of the company or Rs.1,00,000, whichever is higher. Show Answer

Q91) The value of imports by the company during the financial year calculated on F.O.B. basis is to be disclosed separately Show Answer

Q92) The export of goods calculated on C.I.F. basis are to be disclosed by way of a note to the profit and loss account. Show Answer

Q93) Calls in advance are shown under Current Liabilities in the balance sheet. Show Answer

Q94) The unpaid interest due on loan is ____ Show Answer

Q95) The liabilities of companies are divided____ needs Show Answer

Q96) The assets of the companies are dividend in _____ heads Show Answer

Q97) Which of the following is not an example of fixed assers? Show Answer

Q98) Part 3 of schedule III provides interpretations of_____ Show Answer

Q99) Following is not fixed assets Show Answer

Q100) Which of the following is not a secured loan ? Show Answer

Q101) Following is not a secured loans Show Answer

Q102) In balance sheet securities premium should be shown under___ Show Answer

Q103) Call in advances are shown under_____in the balance sheet. Show Answer

Q104) The requirements for final a/c of companies are specified in schedule____ Show Answer

Q105) Dividend paid on the share capital is to be ____. Show Answer

Q106) Payment to auditor should be shown on debit side of ______ Show Answer

Q107) Forfeited shares is _______ Show Answer

Q108) Payment of dividend is based on ______ Show Answer

Q109) Prepaid insurance is shown under_____ Show Answer

Q110) Live stock is shown under_____ Show Answer

Q111) Short term loan is the loan due for not more than_____ Show Answer

Q112) Net block is ______ Show Answer

Q113) Interest accrued & due on Debentures is Show Answer

Q114) The assets which is intangible is_____ Show Answer

Q115) Unpaid call is______ Show Answer