Q#1: Closing written down value (WDV) of machines will be:
(A) Rs. 4,14,000
(B) Rs. 4,25,000
(C) Rs. 3,86,000
(D) Rs. 61,000
Answer: (A) Rs. 4,14,000
Q#2: Closing written down value (WDV) will be:
(A) Rs. 1,29,000
(B) Rs. 1,50,000
(C) Rs. 1,21,000
(D) Rs. 71,000
Answer: (A) Rs. 1,29,000
Q#3: Firms charge depreciation each year
(A) To ensure there is enough money to replace the asset
(B) To spread the cost of the asset over its working life
(C) To reduce the profit and dividends
(D) Because law requires it
Answer: (B) To spread the cost of the asset over its working life
Q#4: Depreciation arises because of:
(A) Fall in the market value of an asset
(B) Fall in the value of money
(C) Physical wear and tear
(D) All of the given options
Answer: (D) All of the given options
Q#5: Assets which have limited useful life are called:
(A) Limited assets
(B) Depreciable assets
(C) Unlimited assets
(D) None of the given options
Answer: (B) Depreciable assets
Q#6: Accountancy covers which areas:
(A) Book-keeping
(B) Accounting
(C) Auditing
(D) All of the given options
Answer: (D) All of the given options
Q#7: Bank Reconciliation Statement is prepared by:
(A) Bankers
(B) Accountant of the business
(C) Statutory auditor
(D) Manager
Answer: (B) Accountant of the business
Q#8: _________ is the detail of transaction in one’s account provided by the bank.
(A) Bank statement
(B) Bank reconciliation statement
(C) Income statement
(D) Financial statement
Answer: (A) Bank statement
Q#9: If you start with cash book favorable balance in BRS, which item will be added?
(A) Cheque deposited but not credited by bank
(B) Cheques omitted to be deposited
(C) Amount directly collected by bank but not recorded in cash book
(D) Debit side of cash book was overcast
Answer: (A) Cheque deposited but not credited by bank
Q#10: ______ is the amount for which an asset could be exchanged between willing parties.
(A) Present value
(B) Fair value
(C) Book value
(D) Residual value
Answer: (B) Fair value
Q#11: Value of ending inventory using FIFO method will be:
(A) Rs.260
(B) Rs.232
(C) Rs.284
(D) Rs.268
Answer: (C) Rs.284
Q#12: Book value of machine after one year (diminishing balance method) will be:
(A) Rs. 86,400
(B) Rs. 1,44,000
(C) Rs. 2,40,000
(D) Rs. 51,840
Answer: (C) Rs. 2,40,000
Q#13: Profit or loss on disposal of fixed asset will be:
(A) Rs.25,000 profit
(B) Rs.75,000 loss
(C) Rs.15,000 profit
(D) Rs.1,00,000 profit
Answer: (A) Rs.25,000 profit
Q#14: Value of conversion cost will be:
(A) Rs. 3,000
(B) Rs. 8,000
(C) Rs. 7,000
(D) Rs. 5,000
Answer: (A) Rs. 3,000
Q#15: Which statement is correct about closing stock?
(A) Appears in assets side of balance sheet
(B) Decreases cost of goods sold
(C) Becomes opening stock of next year
(D) All of the given options
Answer: (D) All of the given options
Q#16: Particulars included in specimen of bank receipt voucher:
(A) (1) & (2) only
(B) (1) & (3) only
(C) (2) & (3) only
(D) (1), (2) & (3)
Answer: (D) (1), (2) & (3)
Q#17: Alternate term used for “Capital” is
(A) Liability
(B) Owner’s net worth
(C) Working capital
(D) Asset
Answer: (B) Owner’s net worth
Q#18: Positive working capital of a company means:
(A) Sound position of company
(B) Sufficient current assets to meet liabilities
(C) Current assets > current liabilities
(D) All of the given options
Answer: (D) All of the given options
Q#19: Company will have positive working capital when:
(A) Current assets > current liabilities
(B) Current assets < current liabilities
(C) Current assets = current liabilities
(D) Current assets < current liabilities
Answer: (A) Current assets > current liabilities
Q#20: Which is NOT a current asset?
(A) Bank Overdraft
(B) Accounts Receivable
(C) Notes Receivable
(D) Prepaid Expenses
Answer: (A) Bank Overdraft