Financial & Management

S.No Question
Unit I
Identify the branch of accounting that generates reports for the use
of external parties such as creditors, investors and government
1 agencies is known as

Who is known as the father of accounting?

2

Which of the following is correct about double entry system of

accounting?
3
Recognise tht list of account names used in general ledger of an
4 organization is known as:
5 Identify which one of the following is not a real account?

According to modern approach, the accounts are classified as:

6
Which financial statement displays the revenues and expenses of a
7 company for a period of time?
Which one of the following is not an external user of accounting
8 information?

Recognise which of the following is correct?

9
10 The process of recording financial data upto trial balance is
Rohit carrying on real estate business sold a piece of land for
Rs.4,00,00,000 (cost Rs.3,50,00,000) then the type of receipt is
11 ______ nature and profit on sale is

Interpretation means
12
Small items like, pencils, pens, files, etc. are written off within a
13 year according to _ concept
In the annual report, where would a financial statement reader find
out if the company’s financial statements give a fair depiction of its
14 financial position and operating results?
 Johnny’s Car Repair Shop started the year with total assets of
$60,000 and total liabilities of $40,000. During the year the
business recorded $100,000 in car repair revenues, $55,000 in
expenses, and dividends of $10,000. ____ 3. The net income
15 recommended by Johnny’s Car Repair Shop for the year was
Relate which of the following transactions is not of financial
16 character :
At the end of the financial year after sale of goods worth ` 2,00,000,
17 there was a closing stock of ` 10,000. This is :
18 All of the following are the functions of accounting except :

19 Trade discount is

20 Cash discount is :
21 Interest A/c is

22 Capital Expense

23 Which of the following is not a current asset ?

24 On what basis the financial position of business is ascertained ?

25 State which of the following is not the limitation of accounting ?

State one of the following is an ingredient of the entity convention

26 of accounting?

The following is (are) the type(s) of Journal

27

List two primary qualitative characteristics of financial statements

are
28

Purposes of an accounting system include all the following except

29
Decrease in the amount of trade payables results in
30
 Accounting policies refer to specific accounting
31

Mohan purchased goods for `15,00,000 and sold 4/5th of the goods
amounting 18,00,000 and met expenses amounting 2,50,000 during
the year, 2015. He counted net profit as 3,50,000. Which of the
accounting concept was followed by him?
32
The concept of conservatism when applied to the balance sheet
33 results in

Accounting Standards
34
Accounting policy for inventories of Xeta Enterprises states that
inventories are valued at the lower of cost determined on weighted
average basis or not realizable value. Which accounting principle in
35 followed in adopting the above policy?

Selection of an inappropriate accounting policy decision may

36

A purchased a car for 5,00,000, making a down payment of

1,00,000 and signing a 4,00,000 bill payable due in 60 days. As a
result of this transaction
37

A journal entry that requires more than two accounts is called:

38

Trial balance is designed to check the accuracy of

39

When debit balance is equal to credit balance then the trial balance
means
40
When credit balances = debit balances, the trial balance check and
shows ____________ . It also indicates that there were no errors
41 made during posting and recording and posting.

In trial balance, recognize which accounts with normal balance is

recorded at the credit side?
42
43 A written explanation below each journal entry is known as:

Assertion (A). There is no error, when the totals of the debit

side and the credit side of the Trial Balance are equal.
44
 Reason (R). Trial Balance is a two-column statement showing
names and balances of all the accounts in the order in which
45 they appear in the ledger.

46 Accounting for revenue recognition are related to –

47 Indian Accounting Standard – 28 is related to

48 List the correct order of the accounts in the adjusted trial balance?
Explain who are the following users assesses the attractiveness of
49 investing in a business
Arielle W. bought furniture on credit from Chanel. Which of the
following journal entries will bemade for this transaction in Arielle
50 W. books?.
51 What is the underlying convention that supports the immediate recog
52 Liabilities of a business are Rs. 40, 220 and owner’s equity is Rs. 50,
Accounting has been defined as “The art of recording, classifying,
summarizing, analyzing andinterpreting the business transactions
systematically and communicatingbusiness results to interested
53 users is accounting” by:

Which of these is/are the objectives of accounting?

54
Rs. 5000 spent on the repairsof building is debited to Building
55 A/c.The above error will be reflected in the Trial Balance as:

GAAP stands for:

56
57 Any written evidence in support of a business transaction is called
UNIT II
1 The accounting process involves in recording:
2 In accounting an Economic event is referred to as:

3 Identify the correct sequence of accounting process

Bookkeeping mainly concerns with which part of accounting

4
process?
 Financial accounting provides financial information to all of the
5
following external users except:
For which step of accounting process the accountants of business
6
entity prepare financial statements?
Keeping the log of financial information in books of original entries
7
is called
8 Which of the following is the external user of financial statements?
9 Which of the following is the internal user of financial statements?

10 _________ is the first phase of accounting cycle

11 Financial statements differ from management account because

________ is a separate legal entity that Total capital can be divided

12
in many shares

13 An asset posses which of the following?

14 Liabilities are which of the following?
15 ________ is the gross inflow of economic benefits
16 The gross decrease in economic benefits for the business are what?

An asset must be _______ by the business to be shown as an asset

17
in its "balance sheet
Which of the following can be considered as the most important
18 phase of accounting cycle and it is the primarily objective of
financial accounting?
Which is the most important characteristic that all assets of a
19
business have?

20 What is the basic accounting equation?

21 What is equity?

Find out the value of assets if: Liabilities=$5000

22
and Capital=$1000
Calculate the amount of cash if: Total assets=$10,000 Total
23
liabilities=$10,000 Total Capital=$5000
24 Capital increases if ______ increases
25 Capital of a business decreases if there is an increase in
If the total liabilities of a business decrease by $5000 what will
26 be the effect on total asset? (assuming the amount of capital remain
same)
 If the business's owner withdraws cash for his/her personal use
27
what will be the effect on capital?
28 Net income equal to Revenues minus
29 Collection of account receivable will

Which of the following is the practical implementation of the

30
accounting equation?

31 Fresh capital introduction will increase

32 Cash received for services rendered will

Which of following best describes the increase in equity

33
expands_______

If Cash=$1000 inventories=$4000 Debtors=$5000 fixed assets=?

34
Capital+Liabilities=$15000 What is the Amount of total assets?

35 Depreciation decreases
36 An increase in provision for bad debt will
37 _________ will be credited if goods are given as charity
38 Petty cash fund is supposed to be replenished

39 2. Gross Profit is the difference between

40 Total depreciation of an asset cannot exceed its

41 Which of the following statements is/are true ?

42 Closing stock is generally valued at

43 Bad debts recovered account will be transferred to

44 The entry for creating a Provision for bad debts is

When a person purchasing goods on credit he becomes a…………..

45
in the books of the seller
46 Cost of goods sold excludes
47 Tax deducted at source A/c appears in-

Payments received in advance from a customer for a contract can

48
be
49 If a company has contingent liabilities, they appear in the

If actual bad debts are more than the provision for bad debts, then
50
there will be a

A Ltd. has sold a machine for Rs. 1, 20,000. The cost and
accumulated depreciation of the same, at the time of sale were Rs.
51
1, 00,000 and Rs. 80,000 respectively. In computing profit for
managerial remuneration, credit should be taken for:

What should be the treatment for adjusting outstanding and prepaid

52
expenses respectively in the balance sheet?

What should be the treatment for adjusting accrued income and

53 income in advance respectively in the credit side of Profit and Loss
A/C?
What should be the final amount of Bad debts appearing on the
54
debit side of the Profit & Loss A/C?

55 Closing stock given in the trial balance is treated in the:

56 Prepaid insurance account is
57 Current liabilities do not include
The decrease in the value of fixed assets such as Plant &
58 Machinery, Furniture & Fixtures, Land & Building, Motor Vehicles
etc. due to wear and tear is called as:
59 What kind of expenses are paid from Gross Profit?
Which option gives a review report on the firm’s financial status at
60
a specified date?
61 Which of the options is an example of business liability?
UNIT III
1 . Which of the following is not included in current assets?
Q2. Higher the ratio, the more favorable it is, doesn’t stand
2 true for
3 Q3 Liquid ratio is also known as.
Q4. Determine Operating ratio, if operating expenses is Rs
60,000, Sales is Rs 9,40,000, Sales Return is Rs 40,000 and Cost
4 of net goods sold is Rs 6,60,000
Q5. Determine stock turnover ratio if, Opening stock is Rs
31,000, Closing stock is Rs 29,000, Sales is Rs 3,20,000 and
5 Gross profit ratio is 25% on sales.
Q6. If total cost of 100 units is Rs 5000 and those of 101 units is
6 Rs 5030 then increase of Rs 30 in total cost is
Q7. What will be the amount of profit if Fixed cost is Rs 20,000
7 Sales is Rs 1,60,000 and P/V ratio is 25%?
 Q8. Determine amount of profit if Variable costs is Rs 1,20,000
8 Fixed costs is Rs 40,000 and sales is Rs 2,00,000
9 10. Which one of the followings is not a liquidity ratio?

11. For calculating the super quick or cash ratio which current
assets are considered?
10

Which one of the following equations is used to calculate creditors'

11 payment period?
Which of the followings is a solvency ratio?
12

What is indicated by the Solvency ratios?

13
What is measured by Net Assets Value (NAV) ratio?
14

What is indicated by Interest coverage ratio?

15

Which of the followings is the best measure of the debt equity

ratio?
16
Q.1. Current Assets indicates the amount of assets available for
17 repayment of:
Q.2. Which of the following ratios is a measure of the extent to
which liquid resources are immediately available to meet current
18 obligations.

In computing Debt/Equity ratio, equity includes

19

Super quick or cash assets include

20
Calculate operating profit ratio from the following data :
Sales 3,00,000
Gross profit 1,20,000
21 Administration expenses 35,000
Selling and distribution expenses 25,000
Income on investment 15,000
Loss by fire 9,000
From the following information, calculate the debt-equity ratio

22
 Equity Shares Capital 1,00,000
General Reserve 45,000
22 Accumulated Profits 30,000
Debentures 75,000
Sundry trade creditors 40,000
Outstanding expenses 10,000
23 . Writing off a debtor as a bad debt will cause the quick ratio to:
24 Ratio of Net Income to Number of Equity Shares known as:
25 Net Profit Ratio Signifies:
Gross Profit Ratio for a firm remains same but the Net Profit Ratio
26 is decreasing. The reason for such behavior could be:
27 From the following compute Gross Profit Ratio:
Credit Sales = Rs. 300000
Cash Sales (Being 25% of Total Sales)
Purchases = Rs. 320000
Excess of Closing Stock over Opening Stock = Rs. 40000
The __________ ratios are primarily measures of surplus of sales
28 to cost
__________ indicates the percentage of each sales rupee
29 remaining after the firm has paid for its goods
UNIT IV
The cost of material at 50% capacity is Rs 8,000 and budget is to be
1 prepared at 60%, 90% and 100% of normal capacity. The cost of
material at 60% and 90% capacity will be
At 50% capacity expenses are Rs 10,000, which increase by 10%
2 between 60% and 80% level of activity and 20% thereafter. These
are

3.Semi-variable expenses increases with the increase in the level of

3
activity,

4.If semi-variable cost at 60% level of production is Rs 40,000 and

4 at 80% level is Rs 44,000. What will it be at 100% level of
production?
If indirect material at 80% capacity (800 units) is Rs 248, of which
5 variable component is Rs 0.06 per unit, then the amount of indirect
material at 100% capacity would be
If variable and fixed costs at 60% capacity are Rs 12,000 and Rs
6
9,000 respectively, total cost at 80% capacity will be
7 Variable cost is also known as
In order to prepare a flexible budget, items of anticipated
8
expenditures are classified into _______ classes.
9 Flexible budget is used when

In _________ actual performance can easily be compared due to

10
availability of budgets at different levels of activity.
Flexible budget is that budget which presents __________ at
11
various levels of business activity.
___________ is based on assumption that the firm will carry out
12 its activity only at a specific level and the targets of production
determined in budget will be achieved.
The cost of material at 50% capacity is Rs 8,000 and budget is to be
13 prepared at 60%, 90% and 100% of normal capacity. The cost of
material at 60% and 90% capacity will be

14 While preparing a flexible budget, direct material, direct labour and

direct expenses all are placed under the head of variable cost.
15 Semi-variable cost will not be zero, even if production is nil.
16 Variable cost is also known as
17 In order to prepare a flexible budget, items of anticipated
expenditures are classified into _______ classes.

18 Flexible budget is used when

Demand remains static even when there is change in taste and

19
fashion of

20 Cash budget is a __________ budget.

21 The payment of income tax, dividend, interest, and donation are
examples of
22 The receipts from issue of shares, issue of debentures and sale of
fixed investments are
23 Cash budget is more helpful in those business concerns where there
are
24 R&D budget and Capital expenditure budget are examples of*
__________ contains the picture of total plans during the budget
25 period and it comprises information relating to sales, profit, cost,
production etc.*
Budgetary control does not depend on changing business situations
26
like inflation and economic recession.*
 Which of the following statements are not true about budget,
27
budgeting & budgetary control?*

According to George R. Terry, _________ may be described as a

process of finding out what is being done and comparing actual
28
results with the corresponding budget data in order to approve
accomplishment.*

29 Which of the following statements are true?*

30 Which is the mostly likely purpose of budgeting?*

Budgetary control __________ replace management in decision‐

31
making.*
_________ , co-ordination and control are three basis aspects
32
concerned with budgetary control.*

33 Budgetary control system helps the management to eliminate*

 Financial & Management Accounting
A B C
Unit I

Financial accounting Managerial accounting Tax accounting

Leonardo da Vinci Fra Luca Pacioli Al Khawarizmy

Financial changes are

Every business transaction Every debit entry has a
recorded as debits or
brings at least two financial corresponding credit
credits in two or more
changes in business. entry.
accounts.

balance sheet Income statement Account list

machinery account sales account goodwill account

personal accounts, asset accounts,

personal accounts, nominal
nominal accounts, liability accounts, sales
accounts, real accounts and
revenue accounts, and accounts, profit
valuation accounts
expense accounts accounts

Income Statement Balance Sheet Cash Flow Statement

Investor Creditor Manager

Owner’s Equity = Liabilities Liabilities = Assets + Assets = Liabilities +

+ Assets Owner’s Equity Owner’s Equity
Book keeping Classifying Analyzing

Capital & transferred to Revenue & transferred Capital & transferred

capital reserve to P & L a/c to P & L a/c

(b) Concerned with

(a) Explanation of meaning
preparation and (c) Systematic analysis
and significance of the data
presentation of classified of recorded data
in Financial Statements.
data

Materiality consistency Conservatism

Notes to the financial Management discussion

statements and analysis section Balance sheet
 35,000.00 45,000 20,000.00

Purchase of goods on credit Purchase of a building Payment of salaries

C) Both event as well as
An event (B) A transaction transaction
(A) Decision-making B) Measurement C) Forecasting
A) Allowed at the time of B) Allowed at the time
receiving payment of sale of goods C) Both ‘A’ and ‘B’

Allowed at the time of sale of (B) Received at the time C) Received at the time
goods of making payment of purchase of goods
Nominal A/c (B) Real A/c C) Personal A/c

Decrease Asset (B) Decrease Liabilities (C) Increase Asset

(A) Prepaid Expenses B) Debtors (C) Furniture

(A) Records prepared under

the process of Book-keeping (B) Trial Balance (C) Accounting Report

C) Based on accounting
A) Evidence in legal matters ((B) Incomplete informatioconventions

The owner of a unit and the The owner and the unit No separate accounts for
unit itself is one and the same are treated separately the unit is required

(A) Purchase journal (B) Sales journal (C) Cash journal

Understandability and Relevance and Neutrality and

materiality reliability understandability

Summarize and
Interpret and record the Classify the effects of
communicate
effects of business transactions to facilitate
information to decision
transaction. the preparation of reports
makers.

Decrease in bank over

Increase in cash. Decrease in assets.
draft account
 Methods of applying
Principles. Both (a) and (b).
those principles

Entity Periodicity Matching

Understatement of assets. Overstatement of assets. Overstatement of capital

Eliminate the non-

Harmonise accounting Improve the reliability
comparability of financial
policies. of financial statements.
statements.

Materiality Prudence Substance over form

Understate/overstate
Overstate the performance Overstate the
the performance and
and financial position of a performance a business
financial position of a
business entity entity.
business entity

Total assets increased by Total liabilities increased Total assets increased

5,00,000 by 4,00,000. by 4,00,000.

(A) Double entry (B) Compound entry (C) Combined entry

B) Ledger accounts C) Cash flow statement

A) Balance sheet balances
balances balances
B) Mathematically
A) Account balances are C) No mistake in
Capital+Liabilities=Asse
correct recording transactions
ts

A) Understatements of C) Arithmetic
B) Errors of Commission
Balances Accuracy

A) Bank account B) Equipment account C) Cash account

Details Entry Narration

Both A and R are true and R Both A and R are true but
is the correct explanation of R is not a correct A is true but R is false
A. explanation of A.
(a) AS-8 (b) AS-9 (c) AS-23
(b) Financial Reporting
(a) Accounting for taxes on of Interests in Joint
income Venture (c) Impairment of Assets
a. Revenues, expenses, b. Liabilities, assets, c. Assets, liabilities,
assets, liabilities, owner’s revenues, owner’s equity, owner’s equity,
equity expenses revenues, expenses

(A) Tax authorities (B) Financial analysts C) Bank

(B) Dr. Purchases Cr. (C)Dr. Arielle W.Cr.

(A) Dr. Furniture Cr. Cash Arielle W Purchases
a) Disclosure b) Consistency c) Materiality
a) Rs. 61,220 b) Rs. 73,780 c) Rs. 85, 000

a) AICPA b) ICAI c) ICAEW

b) Providing relevant
a) Communicating
data to make appropriate
information to all interested c) Facilitating social functions and control
decisions concerning use
users
of limited resources

a) Error of omission b) Error of commission c) Error of principle

b) Genarally c) Genarally
a) Gross Accepted
Accepted Accounting Accepted Accounting
Accounting Principles
Principles Policies
(A) Journal (B) Ledger (C) Ledger posting
UNIT II
Non quantifiable
Quantifiable economic event All of them
economic event
Cash Bank statement Transaction
Communicating→Recording
Recording→Communicati Identifying→communica
→Identifying
ng→Identifying ting→recording

Preparing financial Recording financial

Analysing
statements information
Government agencies investors Creditors

Identification of economic Communication of Recording financial

event financial information information

Recording summarizing Grouping

Manager of the business CEO of the business Creditor of the business
Shareholder of the
Creditor of the business Government agency
business
Identifying an economic Posting entries to ledger
Preparing journals
event or transaction accounts
They are mainly prepared for
They are more complex The are the summary of
external users of financial
and hard to prepare accounting data
information

Partnership Sole proprietorship Company

Future economic benefits for All kind of benefits for Expenses for the
the business the business business
Resources Obligations Future benefits
Assets Liabilities Income
Expenses Obligations Creditors

Possessed Owned Controlled

Preparing financial
Identifying transactions Preparing "T Accounts"
statements

Intangible nature of
Long life of assets Value of assets
assets
Assets+ liabilities
Capital+Liabilities=Assets Capital+assets=liabilities
=Capital
Owner's claim on total
Cash from the business liability of a business
assets

$4000 ) $6000 $7000

$6000 B) $10,000 C) $5000

Expenses Drawings Interest on capital
Drawings Income Gains

Remain constant Decrease by $5000 Increase by $5000

Increase in capital Remain the same Decrease in capital
Gains Depreciation Expenses
Increase assets and decrease Increase assets and Increase assets and
assets decrease liabilities decrease liabilities
Statement of changes in
Cash flow statement Income statement
equity
Liabilities and equity
Assets and liabilities Assets and equity
and bank balance
Increase equity and Increase fixed assets and
Increase cash and liability
liability cash

A) Business operations B) cash outflows Inflows of cash

$5000 $10,000 $15,000

Liabilities Cash Bank

Decrease net income Decrease liabilities Increase net income
Cash Charity Purchases
Every day Every half year Every year

Net Sales and Cost of

Net Sales and Cost of goods sPAT and Dividends
production
Scrap value Residual value Market value
Total of Return Outward
A sale of an asset is recorded The balance of Petty
Book is debited to Return
in the Sales Book Cash Book is a liability
Outward Account

Cost price or Market

Cost Price Market Price
price whichever is higher

Debit Provision for Bad

Provision for Doubtful
Debtor‘s Account Debts A/c and credit
Debt Account
Profit & Loss A/c
Debit Provision for Bad
Debts A/c and credit Debtors Defaulter
A/c

Debtor Creditor
Opening Stock Carriage inward Wages & Salary
Assets side Liability side Profit & Loss A/c
Shown as a deduction from
contract work-in-progress on Shown as a liability Credited to P&L A/c
asset side
 Notes on account to
Balance Sheet Directors‘ report
Balance Sheet
Debit balance of
Credit balance of Provision Debit balance of Bad
Provision for Bad Debts
for Bad Debts Account Debts Account
Account

c) Shown on the
a) Both shown on the b) Both shown on the
liabilities and assets
liabilities side. assets side.
side respectively

c) Deducted /
a) Added / Deducted b) Added / Added
Deducted

a) 2,500 b) 1,200 c) 2,000

a) Trading account & b) Profit & loss c) Trading account

Balance sheet both account only
(a) An expense (b) Revenue (c) An asset
a) Unpaid dividends b) Sundry Creditors c) Prepaid insurance

a) Amortization b) Depreciation c) Obsolescence

a) Selling Expenses b) Financial Expensesc) General Expenses

a) Income & Expenditure Account
b) Balance Sheet c) Cash Flow Statement
a) Creditors b) Cash c) Building
UNIT III
a) Long term loans b) Cash at bank c) Cash in hand
a) Operating ratio b) Liquidity ratio c) Net profit ratio
a) Net profit ratio b) Acid test ratio c) Working capital ratio

a) 80% b) 15% c) 25%

a) 31 times b) 11 times c) 8 times

a) Marginal cost b) Prime cost c) All variable overheads

a) Rs 40,000 b) Rs 20,000 c) Rs 10,000

 a) Rs 12,500 b) Rs 20000 c) Rs 40000
a) Current ratio b) Super quick ratio c) Debt collection period
c) All current assets -
b) All current assets -
All current assets Inventory - Sundry
Inventory
debtors

a) Payables/Credit purchases b) Receivables/Credit c) Credit

X 365 purchases X 365 purchases/Payables
c) Fixed assets turnover
a) Return on net worth b) Net Assets Value ratio
a) Financial strengths and
possibility of long term b) Operational strengths c) Liquidity position of
survival of the company of the company the company
b) Net assets value per c) Capital market price
a) Net worth per equity share equity share per share

a) Capacity of the firm to pay b) Capacity of the firm to c) Capacity of the firm to
its interest liability on its long pay its interest liability on pay its long term
term borrowings out of its its long term borrowings borrowings out of cash
total profits out of its cash profits profits
b) Long-term debt/Total c) Total debt/Total net
a) Long-term debt/Total net
net worth + Preference worth + Preference
worth
capital capital
c) Non-current
a) Current liabilities b) Quick liabilities
liabilities

c) Stock turnover
a) Current Ratio b) Quick Ratio
ratio

c) Equity and
b) Equity and
a) Only equity capital preference capital plus
preference capital
all reserves

c) Cash and debtors

a) Only cash b) Cash and debtors
(except bad debts)

a) 20% b) 25% c) 30%

a) 7:3 b) 3:5 c) 3:7

 a) 7:3 b) 3:5 c) 3:7

a) Increase b) Decrease c) Have no effect

(A) Price Earnings Ratio (B) Net Profit Ratio (C) Earnings per Share
(A) Operational Profitability (B) Liquidity Position (C) Long-term Solvency
(A) Increase in Costs of Goods(B)
Sold
Due to Increase in Expense
(C) Increase in Dividend

(A) 20% (B) 30% (C) 35%

(A) Liquidity (B) Turnover (C) Solvency

(A) Operating Profit Margin (B) Net Profit Margin (C) Gross Profit Margin
UNIT IV

b) Rs 14,400 and Rs c) Rs 9600 and Rs

a) Rs 9600 and Rs 14,400
16,000 16,000

a. Variable expenses b. Semi-variable expenses c. Both a and b

b. Not in the same

a. In the same proportion as c. In inverse proportion
proportion as the activity
the activity increases of activity increase
increases

a. Rs 40,000 b. Rs 42,000 c. Rs 44,000

a. Rs 260 b. Rs 600 c. Rs 310

a. Rs 25,000 b. Rs 28,000 c. Rs 24,000

a. Direct cost b. Proportionate cost c. Both a and b
a. Five b. Three c. Two
a. Demand remains static c. Whenever there is
even when there is change in b. When the business unit change of activity due to
taste and fashion of is new change in government
customers policies

a. Fixed budget b. Flexible budget c. Both a and b

a. Costs b. Revenues c. Profits

a. Fixed budget b. Flexible budget c. Both a and b

Rs 9600 and Rs 14,400 Rs 14,400 and Rs 16,000 Rs 9600 and Rs 16,000

1 FALSE

1 FALSE
Direct cost Proportionate cost Both a and b
Five Three Two

Whenever there is
Demand remains static even When the business unit is change of activity due to
when there is change in taste new change in government
and fashion of customers policies
Whenever there is
When the business unit is change of activity due to
customers
new change in government
policies
Short-term Long-term Both a and b
Cash payment for capital Cash payment for non- Cash payment for
transaction operating expenses business operations
Receipts from Non-business Receipts from business Receipts from capital
operations operations transactions
No seasonal fluctuations Wide seasonal Rare seasonal
fluctuations fluctuations
Short-term budget Current budget Long-term budget

Master budget Functional budget Cost budget

1 FALSE
 Budget is one of the Budgeting develops the
Budgetary control works on
important mediums of quality of objectivity in
the basis of best option
communication planning

Budgetary control Budget Budgeting

It is no way related with

Budget is prepared for an Budget can be expressed the management plans
indefinite period in form of physical units and policies to be
pursued in future
Planning and control of an
Preparation of a five-year
organization's income and Company valuation
business plan
expenditure

Can Cannot Sometimes

Centralizing De-centralizing Planning

Undercapitalization Overcapitalization Both (a) and (b)

 D Answer

Forensic accounting A

Al Mazendarany B

All of the above D

chart of accounts D
equipment account B
asset accounts, liability
accounts, capital
accounts, withdrawal
D
accounts, revenue
accounts, and expense
accounts

Share Holders Equity A

Customer A

Assets = Owner’s Equity C

Summarizing D

Revenue & transferred

D
to general reserve

Methodical
classification of data
D
given in Financial
Statements.

Realisation A

Auditor’s report D
 $90,000 B

Strike by employees D

None of these A
Posting D

Allowed in all the cases) B

D) All the above B

D) None of these A

(D) None of these C

(D) Bills Receivable C

(D) None of the above C

D) Lack of qualitative
information A
The unit is a private affair
of the owner, hence no
accounting is required B

(D) All of the above D

Materiality and reliability B

Dictate the specific

types of business
enterprise transactions D
that the enterprises may
engage in

No change in assets. C
None of the above C

Conservatism C

None of the above A

All of the above. D

All of the above B

Understate financial
B
position a business entity

Total assets increased by

4,00,000 with
corresponding increase in
liabilities by 4,00,000

(D) Single entry B

D) Income statement
B
balances

D) No mistake in posting
B
entries to ledger accounts

D) Omissions of
C
Economic Events

D) Accrued expenses
D
account

Additional data C

A is false but R is true. D

(d) AS-10 B
(d) Provisions, Contingent
Liabilities and
Continengent Assets C
d. Expenses, liabilities,
revenues, assets, owner’s
equity C

D) Employees B

(D)Dr. FurnitureCr.
Arielle W. D
d) Prudence C
d) Rs. 90,220 D

d) AAA A

d) All of the above. D

d) None of the above

C

d) Genarally Accepted
Advanced Principles
B
(D) Voucher D

None of them A
Exchange of money C

Identifying→recording→c
D
ommunicating

Auditing the books of

C
accounts
Managers D

Making decisions about

B
business

Processing A
Controller of the business C
Manager of the business D

Making decisions about

A
business

The are prepared on basis

A
of actual concept

Non-profit organization C

Merits and Demerits for

C
the business
Expenses A
Expenses B
Income or gain A

Used C

Preparing trial balances C

Future economic benefits D

Liabilities+Capital A

Owner's claim on total

C
liabilities

$3000 B

$1000 C
Revenue D
Fresh capital A

Increase by $10,000 B
 No effect on capital C
Capital expenditures C
Increase assets and
A
increase cash
Statement of financial
D
position

Capital and liabilities B

Increase cash and equity D

Appropriation expenses A

$20,000 A

Capital D
Increase liabilities A
Sales C
At the end of every
D
accounting period

(d) Net Sales and Direct costs of A

productions
Depreciable value A

Cash Book is a subsidiary

D
book as well as a ledger

Cost price or Market price

D
whichever is lower

Either (b )or (c) above D

Debit Profit and Loss A/c

and credit Provision for D
Bad Debts A/c.

Offender A
Postage & Stamps
Debited to Capital A/c D

Either (a) or (b) above D

Chairman‘s report C

Debit balance of Discount

B
on Debtors Account

d) Shown on the assets

and liabilities side C
respectively.

d) Deducted / Added A

d) 1,500 D

d) Balance sheet D
(d) A liability C
d) Bank overdraft C

d) Any of the above. B

d) All of the above D

d) Profit & Loss Account D
d) Land A

d) Debtors A
d) Stock turnover ratio
C
d) Stock turnover ratio B

d) 11%
A

d) 32 times
C
d) None of the above
A
d) None of the above
B
 d) None of the above
C
d) Interest coverage ratio D

d) Only Cash and short

term investments
D
d) Receivables +
Payables/Credit purchases
X 365. A

d) Debtors' turnover ratio B

d) Capital market position

of the company A

d) Both a & b. D

d) Capacity of the firm to

pay its interest liability
and long term borrowings
out of cash profits. B

d) Long-term debt/
Preference capital.
B
d) Long term liabilities
A

d) None of the above

B

d) Equity and fixed

assets
C

Cash and marketable

securities D

d) 15% A

d) 5:3 C
 d) 5:3 C

d) Can't be calculated B
(D) Dividend per Share C
(D) Profit for Lenders A
(D) Decrease in Sales
B

(D) 15%

B
(D) Profitability
D
Earnings available to
common shareholders C

d) None of the above A

d. None of the above B

d. None of the above A

d. Rs 48,000 D

d. None of the above A

d. None of the above A

d. None of the above

d. None of the above B

d. All of the above D

d. None of the above B

d. All of the above

D

d. None of the abo A

None of the above A

A
None of the above C
None of the above B

All of the above D

All of the above D

None of the above A

None of the above C

None of the above B

All of the above B

None of the above C

None of the above A

B
None of the above D

None of the above A

It provides a base for

measuring the success of B
expected results

Assess the non-financial

performance of an A
organization

Inadequate data B

Staffing B

None C