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1. When a person borrows money, he pays in return some extra money to the lender .

This extra money is calledMarks: 2+ 0.5Principal Amount Dividend Interest Bonus None of the above. The Correct Answer is : Interest You did not answer the question. Explanation : 0This is due to the impact of certain tings and ....... hope this will work well Example Explanation Module : Module A Chapter : Chapter1 2. The rate of interest on a sum of money is 4% p.a .for the first 2 years, 6% p.a. for The next 4 years and 8% p.a. for the period beyond 6 years. If the simple interest accrued by the sum for a total period of 9 years is Rs, 1,120, what is the sum? Marks: 2+ 0.5Rs. 1,000 Rs. 1,500 Rs. 2,000 Rs. 2,500 Rs, 3,000 The Correct Answer is : Rs. 2,000 You did not answer the question. Explanation : 1This is due to the impact of certain tings and ....... hope this will work well Example Explanation Module : Module A Chapter : Chapter1 3. 25. A money-lender finds that due to a fail in the rate of interest from 13% to 12.5%, His yearly income from interest falls by Rs. 208. His principal amount isMarks: 2+ 0.5Rs. 42,800 Rs. 41,600 Rs. 44,600 Rs. 48,000 Rs. 50,000 The Correct Answer is : Rs. 41,600 You did not answer the question. Explanation : 2This is due to the impact of certain tings and ....... hope this will work well Example Explanation Module : Module A Chapter : Chapter1 4. A sum of Rs. 25,400 is lent out into two parts, one at 12% p.a. and the other at 12.5% p.a. If the total annual income from interest is Rs. 3,1160. the money lent at 12% isMarks: 2+ 0.5Rs. 10,000 Rs. 11,800 Rs. 12,400 Rs. 13,400 Rs. 13,600 The Correct Answer is : Rs. 11,800 You did not answer the question. Explanation : 3This is due to the impact of certain tings and ....... hope this will work well

Example Explanation Module : Module A Chapter : Chapter1 5. 27. A sum of Rs. 26,000 is lent out in two parts in such a way that the interest on one Part @ 10% for 5 years is equal to the on another part @ 9% for 6 years. The sum lent out at 10% isMarks: 2+ 0.5-

Rs. 10,500 Rs. 11,500 Rs. 12,500 Rs. 13,500 Rs. 14,500 The Correct Answer is : Rs. 13,500 You did not answer the question. Explanation : 4This is due to the impact of certain tings and ....... hope this will work well Example Explanation Module : Module A Chapter : Chapter1 6. 28. At a certain rate of simple interest, a sum doubles itself in 10 years. It will treble Itself inMarks: 2+ 0.512 Years 15 Years 18 Years 20 years 25 Years The Correct Answer is : 20 years You did not answer the question. Explanation : 5This is due to the impact of certain tings and ....... hope this will work well Example Explanation Module : Module A Chapter : Chapter1 7. In how many years will a sum of money double itself at 12% per annum simple Interest?
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6 Years 6 Years 6 months. 7 Years 8 Years 8 Years 6 months The Correct Answer is : 8 Years 6 months You did not answer the question. Explanation : 6This is due to the impact of certain tings and ....... hope this will work well Example Explanation Module : Module A Chapter : Chapter1 8. The simple interest at x % for x years will be Rs. X on a sum ofRs. X Rs. 100 x 100 100 x The Correct Answer is : 100/x You did not answer the question.

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Explanation : undefined Module : Module A Chapter : Chapter1 9. 1. When a person borrows money, he pays in return some extra money to the lender . This extra money is calledMarks: 2+ 0.5Principal Amount Dividend Interest Bonus None of the above The Correct Answer is : Interest You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 10. The money borrowed from bank or any person is calledPrincipal Amount Interest Capital Financial Assistance None of the above. The Correct Answer is : Principal Amount You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 11. The formula for finding simple interest is-

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I * 100 100 RT (iv) Interest = A * R * T P*R*T The Correct Answer is : P*R*T You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 12. The simple interest on Rs. 10,000 at 6% p.a. for 3 years would be-

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2+ 0.5-

Rs. 600 Rs. 1,200 Rs. 1,800 Rs. 2,000 None of the above. The Correct Answer is : Rs. 1,800 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 13. What is the simple interest on Rs.1,200 at 5.5% p.a. for 5 years ? Find the amount also.
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320 + 1,200 = Rs. 1,520 325 + 1,200 = Rs. 1,525

340 + 1,200 = Rs. 1,540 350 + 1,200 = Rs. 1,550 None of the above. The Correct Answer is : None of the above. You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 14. A money lender lent some amount to a trader @ 8% p.a. After 18 months, the trader paid him Rs. 700 in full payment of interest and principal amount. Find out the sum lent by the money-lender. Marks: 2+ 0.5Rs. 600 Rs. 610 Rs. 625 Rs. 650 Rs. 700 The Correct Answer is : Rs. 625 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 15. In how may years will the interest be Rs.150 on Rs. 1,250 @4% per annum?

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2+ 0.5-

1 Year 2 Years 3 Years 4 Years None of the above. The Correct Answer is : 3 Years You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 16. What annual rate of simple interest was paid if Rs. 500 earned Rs. 55 as interest in 2 Years and 9 months? Marks: 2+ 0.52% 3% 3.5% 4% 4.5% The Correct Answer is : 4% You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 17. A sum of money at simple interest amounts to Rs. 2,800 in 2 years and to Rs. 3,250 in 5 years. Find the sum and the rate of interest. Marks: 2+ 0.5Rs. 2,500 ; 4% Rs. 2,500; 5% Rs. 3,000 ; 4% Rs. 3,000 ; 5% Rs. 2,500 ; 6% The Correct Answer is : Rs. 2,500 ; 6% You did not answer the question.

Explanation : undefined Module : Module A Chapter : Chapter1 18. Certain principal amount plus its 5 Year's simple interest makes an amount of Rs.500. If the interest is 1/4th of its principal, find out the rate of interest and the principal amount.
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4% ; Rs. 400 5% ; Rs. 400 5.5% : Rs. 300 6% : Rs. 250 8% ; 200 The Correct Answer is : 5% ; Rs. 400 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 19. A sum of money amount to Rs.2,240 @ 4% simple interest in 3 years. Find the interest on the same sum for 6 months @ 3.5% p.a. Marks: 2+ 0.5Rs. 35 Rs. 40 Rs. 45 Rs.50 None of the above. The Correct Answer is : Rs. 35 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 20. The simple interest on a sum of money is 1/9th of the principal and the number of the years is equal to the rate per cent per annum. The rate percent per annum is Marks: 2+ 0.52% 1 3% 1 1 The Correct Answer is : 3%=3.33% You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 21. What is the amount of Rs. 4,000 @ 4% simple interest p.a from 10th January 2004 to 11th April 2005, on the basis of number of days? Marks: 2+ 0.5Rs. 4,200 Rs. 4,300 Rs. 4,300.17 Rs. 4,200.17 Rs. 4,200.87 The Correct Answer is : Rs. 4,200.17 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1

22. The basis salary of a teacher is Rs. 7,000 p.m. He contributes 10% of his basic salary to his provident fund account. His employer also contributes the similar amount. If the interest credited to the provident fund account is 6% p.a., find the amount of interest after one year.
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Rs. 5,040 Rs. 420 Rs. 840 Rs. 546 Rs. 273. The Correct Answer is : Rs. 546 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 23. A person deposited a sum of money in a bank on 12th January 2005And received back his full principal with interest on 24th September 2005. If he got Rs. 1,570, what was his principal amount while the rate of interest is 5% per annum? Marks: 2+ 0.5Rs. 4,509 approx. Rs. 45,088 approx Rs. 50,000 Rs. 30,000 None of the above The Correct Answer is : Rs. 45,088 approx You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 24. A sum of money doubles itself in 16 years at simple interest with yearly rate of0.5-

Marks:

2+

6.25% 8% 10% 16% 20% The Correct Answer is : 6.25% You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 25. Rs. 800 amounts to Rs. 920 in 3 years at simple interest. If the interest rate is increased by 3%, it would amount toMarks: 2+ 0.5Rs.992 Rs.1,056 Rs.1,112 Rs.1,182 Rs.1,200 The Correct Answer is : Rs.992 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 26. A certain sum of money at simple interest amounts to Rs. 1,260 in 2 years and toYears and to Rs. 1,350 in 5 years. The rate per cent per annum isMarks: 2+ 0.5-

2% 2.5% 3.75% 5% 7.5% The Correct Answer is : 2.5% You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 27. A lent Rs. 6,000to B for 2 years and Rs. 1,500 to C for 4 years and received Altogether from both Rs.900 as simple interest. The rate of interest isMarks: 2+ 0.54% 5% 8% 10% 12% The Correct Answer is : 5% You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 28. The simple interest on a sum will be Rs. 60,000 after 10 years. If the principal is Trebled after 5 years, the total interest at the end of the tenth year will beMarks: 2+ 0.5Rs. 60,000 Rs. 90,000 Rs. 1,20,000 Rs. 1,50,000 None of the above. The Correct Answer is : Rs. 1,20,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 29. A person lends Rs. 10,000 in four parts. If he gets 8% on Rs. 2,000; 705% on Rs. 4,000 and 8.5% on Rs. 1,400; what per cent must he get for the remainder, if the average rate of interest is 8.13%? Marks: 2+ 0.56% 7% 9% 10% 12% The Correct Answer is : 9% You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 30. The simple interest on a sum of money @ 8% per annum for 6 years is half the sum. The sum isMarks: 2+ 0.5Rs. 4,000 Rs. 4,800 Rs. 6,000 Rs. 8,000 Date inadequate

The Correct Answer is : Date inadequate You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 31. 1 23. A certain sum of money at simple interest amount to Rs. 1,012 in 2--- 2 years and to Rs. 1,067.20 in 4 years. The rate of interest per annum isMarks: 2+ 0.52% 2.5% 3% 4% 5% The Correct Answer is : 4% You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 32. The money which amounts to Rs. 9,261 in 3 years @ 5%p.a. compound interest is
Marks: 2+ 0.5-

Rs. 4,000 Rs. 6,000 Rs. 7,000 Rs. 8,000 Rs. 10,000 The Correct Answer is : Rs. 8,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 33. The compound interest for 3 years @ 5% p.a. is Rs. 1,261 on a certain sum The principal is Marks: 2+ 0.5-

Rs. 8,000 Rs. 9,000 Rs. 10,000 Rs. 11,000 Rs. 12.000 The Correct Answer is : Rs. 8,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 34. Simple interest on a sum at 4% p.a. for two years is Rs.800. The compound interest on the same sum for the same period isMarks: 2+ 0.5Rs. 81.60 Rs. 816 Rs. 1,600 Rs. 1,816 Rs. None of the above. The Correct Answer is : Rs. 816 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2

35. A sum amounts to Rs. 2,916 in 2 years and to Rs. 3,149.28 in 3 years at Compound interest. The sum isMarks: 2+ 0.5Rs. 1,000 Rs. 1,500 Rs. 2,000 Rs. 2,500 Rs. 3,000 The Correct Answer is : Rs. 2,500 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 36. A sum of money at compound interest amount to Rs. 10,648 in 3 years and Rs. 9,680 in 2 years. The rate of interest isMarks: 2+ 0.55% 10% 15% 20% 25%. The Correct Answer is : 10% You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 37. Rs. 400 at 5% p.a. compound interest will amount to Rs. 441 in-

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2+ 0.5-

1 year 2 years 3 years 4 years 5 years. The Correct Answer is : 2 years You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 38. 20. What is the principal amount which earns Rs. 264 as compound interest for the second year @ 10% p.a.? Marks: 2+ 0.5Rs. 2,000 Rs. 2,200 Rs. 2,400 Rs. 2,600 Rs. 2,800. The Correct Answer is : Rs. 2,400 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 39. If Rs. 7,500 are borrowed at compound interest at the rate of 4% p.a. then after 2 years the amount to be paid isMarks: 2+ 0.5Rs. 7,800 Rs. 8,082 Rs. 8,100

Rs. 8,112 Rs. 8,200 The Correct Answer is : Rs. 8,112 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 40. If compound interest for 2 Years at the rate of 4% of some money is Rs. 102, find the simple interest at the same rate for 2 years. Marks: 2+ 0.5Rs. 108.16 Rs. 100 Rs. 110 Rs. 120 Rs. 130. The Correct Answer is : Rs. 100 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 41. What is the rate percent per annum if a sum doubles itself in 12 years at Compound rate of interest? Marks: 2+ 0.55.2% 5.4% 5.5% 5.8% 5.9% The Correct Answer is : 5.9% You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 42. If a sum of money trebles itself in 2 years at compound interest, then it will be 27 times of itself inMarks: 2+ 0.55 years 6 years 12 years 15 years 18 years The Correct Answer is : 6 years You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 43. The simple interest and compound interest of first year, are-

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equal unequal. The Correct Answer is : equal You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 44. When compound interest is calculated half yearly, then the period becomes-

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half double one fourth one tenth None to the above. The Correct Answer is : double You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 45. If the true discount on a sum due 2 years hence @ 5% per annum be Rs. 300, then the sum due is Marks: 2+ 0.5Rs. 3,000 Rs. 3,200 Rs. 3,300 Rs. 3,500 Rs. 3,600 The Correct Answer is : Rs. 3,300 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 46. The present worth of Rs. 7,020 due in two equal half-yearly instalments @ 8%p.a. simple interest is Marks: 2+ 0.5Rs 6,500 Rs. 6,625 Rs. 6,750 Rs. 7,000 Rs. 7,100 The Correct Answer is : Rs. 6,625 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 47. The simple interest and the true discount on a certain sum for a given time and at a given rate are Rs. 1000 and Rs. 80, respectively. The sum is Marks: 2+ 0.5Rs. 400 Rs. 800 Rs.1,00 Rs.2,000 None of the above. The Correct Answer is : Rs. 400 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 48. 4. A person buys a watch for Rs. 1,950 in cash and sells it for Rs. 2,200 on credit of 1 year. If the rate of interes Is 10% he Marks: 2+ 0.5loses Rs. 50. Loses Rs.30 Gains Rs.30 Gains Rs.50 Gains Rs.150. The Correct Answer is :

Gains Rs.50

You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 49. A has to pay Rs. 22,000 to B after 1 year. B asks A to pay Rs. 11,000 in cash Immediately and defer the payment of Rs. 11,000 for 2 years. A agrees to it. Counting the rate of interest at 10% p.a. in this new mode of payment Marks: 2+ 0.5there is no gain or loss to any one A gains Rs. 734 A loses Rs. 734 A gain Rs. 1,100 B gains Rs. 1,100. The Correct Answer is : A gains Rs. 734 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 50. A owes B Rs. 1,802 due 1 year hence. However, a wants to settle the account after 3 months. How much cash should he pay, if rate is 8% p.a.? Marks: 2+ 0.5Rs. 1,700 Rs. 1,740 Rs. 1,750 Rs. 1,760 None of the above. The Correct Answer is : Rs. 1,700 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 51. You want to sell your fridge. There are two offers, one at cash payment of Rs. 16,200 and another at a credit of Rs. 16,500 to be paid after 6 months. If money being worth 6.25% per annum simple interest, which offer is better? Marks: 2+ 0.5Both are equally good. Rs. 16,200 in cash. Rs 16,500 due 6 months hence. The Correct Answer is : Rs. 16,200 in cash. You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 52. A person purchased a watch for Rs. 3,000 and sold it the same day for Rs,3,600 allowing the buyer a credit of 9 years. If the rate of interest be 7.5% p.a. he has a gain of Marks: 2+
0.5-

4.5% 5% 5.5% 6% 6.5% The Correct Answer is : 5% You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3

53. Goods were bought for Rs. 2,400 and sold the same day for Rs. 2,601 at credit of 9 months and still there was a gain of 2%. The rate per cent is Marks: 2+ 0.51 1 1 1 1 The Correct Answer is : 1 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 54. The true discount on Rs. 9,300 due after a certain period at 5% p.a. is Rs. 300. The time after which it is due, is Marks: 2+ 0.54 months 6 months 8 months 9 months 10 months The Correct Answer is : 8 months You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 55. The true discount on Rs. 5,150 due 4 months hence is Rs. 150. The rate per cent is Marks: 2+ 0.5-

5% 6% 7% 8% 9% The Correct Answer is : 9% You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 56. 12. The true discount on a bill due 10 months hence @ 6% p.a is Rs. 2,625. TheAmount of the bill is Marks: 2+ 0.5Rs. 50,000 Rs. 55,125 Rs. 65,000 Rs, 65,125 None of the above The Correct Answer is : Rs. 55,125 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 57. 13. Rs. 2,000 is the true discount on Rs. 26,000 due after a certain time. What will be the true discount on the same sum due after half of the former time, the rate of interest being the same? Marks: 2+ 0.5Rs. 1,000 Rs. 1,040

Rs. 1,300 Rs. 1,400 Rs. 1,540 The Correct Answer is : Rs. 1,040 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 58. 14. If Rs. 100 be allowed as true discount on a bill of Rs. 1,100 due at the end of a Certain period, then the discount allowed on the same sum due at the end of double the time is Marks: 2+ 0.5-

Rs. 183.30 Rs. 200.00 Rs. 218.10 Rs. 222.00 Rs. 225.00 The Correct Answer is : Rs. 183.30 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 59. A trader paid Rs. 700 to a lender due after 18 months at the rate of 8% p.a. simple interest. The true discount is Marks: 2+ 0.5Rs.60 Rs.65 Rs.70 Rs. 75 Rs. 80 The Correct Answer is : Rs. 75 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 60. Which expression does not represent true discount? A-P ART PRT ART None of the above. The Correct Answer is : ART You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 61. True discount is equivalent to Interest Principal amount Amount All of the above None of the above. The Correct Answer is : Interest You did not answer the question. Explanation : undefined

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Module : Module A Chapter : Chapter3 62. Present value is equivalent to -

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Interest Principal amount Amount All of the above None of the above. The Correct Answer is : Principal amount You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 63. If the true discount on Rs. 14,500 due after 5 years is Rs. 4,500 then the rate of true discount will be Marks: 2+ 0.55% 6% 7% 8%t 9% The Correct Answer is : 9% You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 64. Write true of false - In case of simple interest, A * R * T True Discount = ----------------- 100 + (R * T) Marks: 2+ 0.5True False The Correct Answer is : True You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 65. 21Banker's discount is calculated on Present value Sum due True discount All of the above The Correct Answer is : Sum due You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 66. Banker's gain is Marks: 2+ 0.5Amount + Banker's Discount Amount - Banker's Discount Amount - Present Value True Discount + Banker's Discount. Banker's Discount - True Discount. The Correct Answer is : Banker's Discount - True Discount. You did not answer the question.

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2+ 0.5-

Explanation : undefined Module : Module A Chapter : Chapter3 67. 23. A bill of Rs. 2,000 id due 10 years hence at simple interest rate 5% p.a. Find Banker's discount. Marks: 2+ 0.5Rs. 200 Rs. 225 Rs. 300 Rs. 333.33 Rs. 1,000 The Correct Answer is : Rs. 1,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 68. The banker's discount on a bill due 6 months hence at 6% p.a. is Rs. 370.80. The true discount is Marks: 2+ 0.5Rs. 61.80 Rs. 123.60 Rs. 220.00 Rs. 360.00 Rs. 480.00 The Correct Answer is : Rs. 360.00 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 69. The difference between banker's discount and true discount of a bill which is due after 6 months, is Rs. 75 at the rate of 5% p.a. Find out the-(a) True discount (b) banker's discount and (c) value of the bill. Marks: 2+ 0.5Rs. 3,075; Rs. 3,000; Rs.1,23,000 Rs. 2,075; Rs. 3,000; Rs. 2,13,000 Rs. 3,000; Rs. 3,075; Rs. 1,23,000 Rs. 2,500; Rs. 3,075; Rs. 3,12,000. None of the above. The Correct Answer is : Rs. 3,000; Rs. 3,075; Rs. 1,23,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 70. The true discount on a bill of Rs. 5,400 is Rs. 900. The banker's discount will

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2+ 0.5-

Rs. 600 Rs. 1,110 Rs. 1,500 Rs. 1,800 Rs. 2,000. The Correct Answer is : Rs. 1,800 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 71. The present worth of a certain bill due sometime hence is Rs. 1,600 and the true discount is Rs. 27. The banker's discount will Marks: 2+ 0.5-

Rs. 68.76 Rs. 74 Rs. 75.24 Rs. 76 Rs. 77. The Correct Answer is : Rs. 75.24 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 72. The banker's gain on a sum due 3 years hence at 5% is Rs. 900. The banker's discount is Marks: 2+ 0.5-

Rs. 1,500 Rs. 6,900 Rs.7,20 Rs. 8,100 Rs. 8,200 The Correct Answer is : Rs. 6,900 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 73. The banker's discount on a certain sum due 2 years hence is 11/10 of the true discount. The rate per cent is Marks: 2+ 0.55% 5.33% 6% 10% 11% The Correct Answer is : 5% You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 74. The present worth of a sum due sometime hence is Rs.5,760 and the banker's gain is Rs. 10. The true discount is Marks: 2+ 0.5Rs. 160 Rs. 180 Rs. 240 Rs. 320 Rs. 400. The Correct Answer is : Rs. 240 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 75. The present worth of a certain sum due sometime hence is Rs. 16,000 and the true discount is 1,600. The banker's gain is Marks: 2+ 0.5Rs. 100 Rs. 160 Rs. 200 Rs. 240 The Correct Answer is :

Rs. 160

You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 76. The banker's gain of a certain sum due 2 years hence at 5% p.a. is Rs. 40. The Present worth is Marks: 2+ 0.5Rs. 4,000 Rs. 4,400 Rs. 6,000 Rs. 8,000 Rs. 10,000 The Correct Answer is : Rs. 4,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 77. A bill is discounted @ 5% p.a. If banker's discount be allowed, at what rate per cent must the proceeds be invested, so that nothing may be lost? Marks: 2+ 0.54% 5% 5 6% 7%. The Correct Answer is : 5 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 78. The banker's discount on a sum of money for 1---- years is Rs. 600 and the true 2 discount on the same sum for 2 years is Rs. 750. The rate per cent is Marks: 2+ 0.53% 1 4% 5% 1 The Correct Answer is : 1 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 79. The banker's gain of a certain sum of money is Rs. 72 and the true discount on the same sum for the same time and at the same rate is Rs. 60. The sum is Marks: 2+ 0.5Rs. 280 Rs. 300 Rs. 320 Rs. 360 Rs. 600. The Correct Answer is : Rs. 360 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3

80. The banker's discount on a bill due 1 years 8 months hence is Rs. 100 and the true discount on the same sum at the same rate per cent is Rs. 90. the rate per cent is Marks: 2+ 0.55% 1 2 6% 2 The Correct Answer is : 2 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 81. The banker's discount on Rs. 800 at 6% is the same as the true discount for the same time and at the same rate. The time is Marks: 2+ 0.52 months 3 months 4 months 5 months 6 months The Correct Answer is : 3 months You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 82. The banker's gain on a bill due 1 year hence at 5% is Re. 1 The true discount is 0.5-

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2+

Rs. 5 Rs. 10 Rs. 15 Rs. 20 Rs. 25. The Correct Answer is : Rs. 20 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 83. A person deposits Rs. 100 per month in a Recurring Deposit account carrying Simple interest @ 6.5% Find the amount at the end of one year. Marks: 2+ 0.5Rs. 1,200 Rs. 1,278 Rs.1,242.25 Rs. 1,300 None of the above. The Correct Answer is : Rs.1,242.25 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 84. Mr. A borrowed Rs. 10,400. He wants to pay this in two annual equal instalmets. The rate of compound interest is 8% per annum. Find the amount of each instalment. Marks: 2+ 0.5Rs. 2,916 Rs. 5,832 Rs. 5,200

Rs. 5,000 None of the above. The Correct Answer is : Rs. 5,832 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 85. A person wants to pay his loan of Rs. 2,522 payable in three equal annual Instalments. If the rate of compound interest is 5% p.a.; find out the amount of each instalment Marks: 2+ 0.5Rs 600 Rs. 650 Rs. 700 Rs. 750 Rs. 800. The Correct Answer is : Rs. 800. You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 86. A lease of Rs.80,000 was taken on 1st January 2005 for 2 years. Calculate the Annuity (Annual Depreciation) if rate of increase is 10% p.a. Marks: 2+ 0.5Rs. 40,000 Rs.44,000 Rs. 46,000 Rs. 46,095.24 None of the above. The Correct Answer is : Rs. 46,095.24 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 87. A lease was taken for 3 years for Rs. 6,620 on 2st January, 2005. Depreciation Fund method is used for depreciation. Calculate Annuity (Annual Depreciation) if annual rate of depreciation is 10% p.a. Marks: 2+ 0.5Rs. 1,900 Rs. 2,000 Rs. 2,100 Rs. 2,200 Rs. 2,300 The Correct Answer is : Rs. 2,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 88. Shradha borrowed some money from a money-lender. She returns this in two Annual equal instalments of Rs. 5,832 each. Find the sum, if the rate of compound interest is 8% p.a.
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Rs. 5,832 Rs. 5,200 Rs. 11,664 Rs. 10,400 None of the above. The Correct Answer is : Rs. 10,400 You did not answer the question.

Explanation : undefined Module : Module A Chapter : Chapter4 89. A sum of money was borrowed the paid back in 2 annual instalments of Rs. 1,864 and Rs1,740, respectively. If the rate of compound interest was 16% p.a. find out the sum borrowed. Marks: 2+ 0.5Rs.3,604 Rs.3,202 Rs. 2,900 Rs.2,700 Rs.2,000 The Correct Answer is : Rs. 2,900 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 90. Calculate the amount of an annuity of Rs. 12,000 fir 15 years. Rate of interest is 1 4 --- p.a. 2 Marks: 2+ 0.5Rs. 2,49,912 Rs. 1,24,956 Rs. 1,00,000 Rs. 1,12,000 Rs. 1,60,000 The Correct Answer is : Rs. 2,49,912 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 91. Calculate the present value of an annuity of Rs. 12,000 for 15 years. The rate 1of compound interest is 4 - p.a. 2 Marks: 2+ 0.5Rs. 1,00,000 Rs. 1,20,000 Rs. 1,28,880 Rs. 2,57,760 Rs. 64,440. The Correct Answer is : Rs. 1,28,880 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 92. A woman retire at the age of 60 years and her employer gives her a pension of Rs. 12,000 a year paid on half-yearly instalments for the rest of her life. Supposing her expectation of life to be 13 years more and that interest is @ 4% p.a. payable half-yearly, what single sum is equivalent to this pension? Marks: 2+ 0.5Rs. 3,00,000 Rs. 2,50,000 Rs. 2,41,500 Rs. 1,20,750 None of the above. The Correct Answer is : Rs. 1,20,750 You did not answer the question. Explanation : undefined

Module : Module A Chapter : Chapter4 93. A man deposits Rs. 500 every six months into a bank which allows him 1 interest payable quarterly at the rate of 2 ---% p.a. Find the sum which will 2 stand to his credit and the end of 10 years from his first payment. Marks: 2+ 0.5Rs. 10,000 approx Rs. 11,000 approx. Rs. 12,000 approx. Rs. 13,000 approx. Rs. 14,000 approx. The Correct Answer is : Rs. 11,000 approx. You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 94. A farmer could not pay annual instalments worth Rs. 800 each for four years. If a simple rate of interest is calculated at the rate of 5% p.a., how much has he to pay now? Marks: 2+ 0.5Rs. 3,200 Rs. 3,440 Rs. 3,640 Rs. 3,840 Rs. 4,040 The Correct Answer is : Rs. 3,440 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 95. A person desires to create a endowment fund to provide for a prize of Rs.3,000 every pear. If the fund can be invested at 10% per annum compound interest, find the amount of the endowment. Marks: 2+ 0.5Rs. 3,000 Rs. 6,000 Rs. 15,000 Rs. 20,000 Rs. 30,000 The Correct Answer is : Rs. 30,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 96. My daughter is 5 years old. In order to provide a sum Rs. 1,00,000 when she Completes 21 years, I have decided to invest a fixed sum of money every year beginning immediately and the last payment will be when she completes 21 years. Find the fixed sum of money assuming the money earns compound interest at the rate of 8%p.a. Marks: 2+ 0.5Rs 1,483 approx. Rs.1,400 approx. Rs.1,500 approx. Rs. 2,966 approx. Rs. 3,500 approx. The Correct Answer is : Rs. 2,966 approx. You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4

97. The rate of interest in a bank is 5% compounded annually. What should I invest per year to get Rs. 6,00,00 at the end of 20 years? Marks: 2+ 0.5Rs. 8,000 approx. Rs. 9,073 approx. Rs. 18,146 approx Rs. 36,292 approx Rs. 40,000 approx. The Correct Answer is : Rs. 18,146 approx You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 98. A firm has leased a leasehold property for 3 years on 1st January, 2005 for Rs.1,00,000 and his decided to replace it by creating a depreciation fund. The rate of compound interest on investments is 55 p.a. Calculate the annual depreciation (i.e. the amount to be invested).
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Between Rs. 30,000 and Rs. 31,000 Between Rs. 31,000 and Rs. 32,000 Between Rs. 32,000 and Rs. 33,000 Between Rs. 33,000 and Rs. 34,000 Between Rs. 34,000 and Rs. 35,000 The Correct Answer is : Between Rs. 31,000 and Rs. 32,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 99. A machine costs Rs. 5,00,000 and its effective life estimated to be 10 years Its scrap value is Rs. 50,000. What amount should be retained out of profits at the and of each year to accumulate at 5% p.a. with compound interest for 10 years to replace the machine by another one costing Rs. 5,00,000? Marks: 2+ 0.5Rs. 33,771 Rs. 34,771 Rs. 35,771 Rs. 36,771 Rs. 37,771 The Correct Answer is : Rs. 35,771 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 100. what annual instalment will discharge a debt of Rs. 92,400 due in years at 5% simple interest? Marks: 2+ 0.5Rs. 20,000 Rs. 21,000 Rs. 22,000 Rs. 23,000 None of the above The Correct Answer is : Rs. 21,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 101. A certain sum @4% simple interest per annum becomes Rs.31,360 in 3 years.What will be the amount of instalment per year to repay the loan in 3 years? Marks: 2+ 0.5-

Rs.10,051 approx. Rs.11,000 approx. Rs.11,120 approx. Rs.11,215 approx. Rs.11,300 approx. The Correct Answer is : Rs.10,051 approx. You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 102. A person borrowed Rs. 6,560 at 5% compound interest to repay in two equal Annual instalments. Find the amount of each instalment. Marks: 2+ 0.5Rs. 2,835 Rs., 3,285 Rs, 3,320 Rs. 3,528 Rs. 5,328. The Correct Answer is : Rs. 3,528 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 103. Neeta, Anita and Sunita are equal partners in a firm. They have agreed that in case of death of anyone of them, an annuity in 10 annual equal instalments will be paid to he husband carrying compound interest @ 10% p.a. Calculate the annuity to be paid to Sunitas husband after her death if her capital is Rs. 6,00,000. Marks: 2+ 0.5Rs. 79,406 approx Rs. 97,640 approx Rs. 64,697 approx Rs. 97,460 approx Rs. 60,497 approx. The Correct Answer is : Rs. 97,640 approx You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 104. Mr. A purchased a machinery from Mr. B on hire-purchase system, the cash price of which is Rs. 1,00,000. Payment is to be made in 3 equal annual instalments including interest on the unpaid balance @10% per annum. Each instalment is to be paid at the end of each year. Calculate the amount of annual instalment. Marks: 2+ 0.5Rs.33,333.33 Rs. 45,000 Rs. 66,666.67 Rs. 40,211.50 None of the above. The Correct Answer is : Rs. 40,211.50 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 105. A Washing machine worth Rs. 10,000 is purchased on instalment payment system under which 10 equal annual instalments including interest at 10% p.a. are payable. Find the amount of annual instalment. Marks: 2+ 0.5-

Rs. 1,627.43 Rs. 1,000.00 Rs. 1,333.00 Rs. 1,225.00 Rs. 1,250.00 The Correct Answer is : Rs. 1,627.43 You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 106. A shopkeeper advertises the case price of a colour. T.V. as Rs. 8,500. The same T.V. can also be purchased by paying Rs. 1,600 immediately and the balance in equal 8 instalments monthly of Rs. 900 each. Find the rate of interest. Marks: 2+ 0.55% p.a. 6%p.a. 8%p.a. 10%p.a. 12%p.a. The Correct Answer is : 12%p.a. You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 107. 25. A company has issued debentures for Rs. 1,000,00 on 1st January 2005 which are redeemable on 31st December, 2008. The company has created Debenture Redemption fund for the redemption of debentures at the end of the year. 10% annual interest will be received on the investment. Calculate the annuity amount. Marks: 2+ 0.5Rs. 17,547 approx. Rs. 18,547 approx. Rs. 21,547 approx. Rs. 25,000 approx. Rs. 25,200 approx. The Correct Answer is : Rs. 21,547 approx. You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 108. The cost price of a Rs. 100 bond at a discount of 5%, when brokerage is --- %, will be Marks: 2+ 0.5-

Rs. 95 Rs. 100 Rs. 95 + --- = Rs. 95.25 Rs. 95 - -- = Rs. 94.75 Rs. None of the above. 1 The Correct Answer is : Rs. 95 + --- = Rs. 95.25 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 109. The income derived from a 6 --- % bond at Rs. 95 is - 2 Rs. 1.50 Rs. 6.30 Rs. 6.50

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Rs. 11.50 None of the above. The Correct Answer is : Rs. 6.50 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 110. 1 1 1 3. The case realized by selling a 5 --- % stock at 106 ---, brokerage being --- % is 2 44 Marks: 2+ 0.5Rs, 105.25 Rs. 105.75 Rs. 106.00 Rs. 106.25 None of the above. The Correct Answer is : Rs. 106.00 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 111. How much stock at Rs. 85 can be purchased for Rs. 1,360?

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Rs. 1,360 stock Rs. 1,400 stock Rs. 1,560 stock Rs. 1,600 stock Rs. 1,660 stock. The Correct Answer is : Rs. 1,600 stock You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 112. The income from a 6% stock of Rs 18,360 is Rs. 720. Find the price stock of Rs. 100
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Rs. 125 Rs. 130 Rs. 135 Rs. 150 Rs. 153. The Correct Answer is : Rs. 153. You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 113. What income will be derived from Rs. 75,000 of 4 --- stock? 2 Rs. 3,357 Rs. 3,537 Rs. 3,573 Rs. 3,750 Rs. 3,375. The Correct Answer is : Rs. 3,375. You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined

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114. What income can be be derived from an investment of Rs. 11,628 in the 6 --- % stock at Rs. 153? Marks: 2+ 0.5Rs. 722 Rs. 756 Rs. 345 Rs. 543 Rs. None of the above. The Correct Answer is : Rs. 722 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 115. By investing in 6% stock at 96, an income of Rs. 100 will be derived by making An investment of Marks: 2+ 0.5Rs. 1,504 Rs. 1,600 Rs. 1,667 Rs. 3,200 Rs. 5,760. The Correct Answer is : Rs. 1,600 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 116. An investment of Rs. 12,000 in a stock quoted at 120 produces an income of Rs. 780. Find 780. Find the rate of interest. Marks: 2+ 0.56.5% 7.8% 8.0% 8.3% 9% The Correct Answer is : 7.8% You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 117. To produce an annual income of Rs. 1,000 in a 4% stock at 90, the amount of stock needed is Marks: 2+ 0.5Rs.22,500 Rs.25,000 Rs.27,500 Rs 36,000 Rs.40,000 The Correct Answer is : Rs.25,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 118. A man invests in a 4.5% stock at 96. The interest obtained by him is 0.5% 1% 4%

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4.5% 4.69% The Correct Answer is : 4.69% You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 119. By investing Rs. 3,300 in a 5.5% stock, a man earns Rs. 231. The stock is then quoted at Marks: 2+ 0.5-

Rs. 78 4 Rs. 93 3 Rs. 99 The Correct Answer is : 4 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 120. A invested some money in 4% stock at 96. B wants to invest in equally good 5% stock. B must buy a stock worth Marks: 2+ 0.5rs. 77 Rs. 80 Rs. 100 Rs. 120 Rs. 125 The Correct Answer is : Rs. 120 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 121. Shradha wants to purchase a 6% stock which must yield 5% on her capita. AtWhat price must she buy the stock? Marks: 2+ 0.5Rs. 100 Rs. 105 Rs. 110 Rs. 115 Rs. 120. The Correct Answer is : Rs. 120. You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 122. Which is better investment - 3% stock at 81 or 4% stock at 135? 3% stock at 81 4% stock at 135 Both ate equally good The Correct Answer is : 4% stock at 135 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined

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123. Which is better stock - 5% at 286 or 3.5% at 186?

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5% at 286 3.5% at 186 Both are equally good. The Correct Answer is : 3.5% at 186 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 124. 17. Which is better investment - 4% stock at par with an income-tax at 5% or 4.5% stock at 110 free from income-tax.? Marks: 2+ 0.54% stock at par 4.5% stock at 110 Both are equally good. The Correct Answer is : 4.5% stock at 110 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 125. By investing in 3.75% stock at 96, Shubhra earns Rs. 1,000. The investment made is.
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Rs. 9,600 Rs. 10,000 Rs. 25,600 Rs. 30,000 Rs. 48,000 The Correct Answer is : Rs. 25,600 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 126. A man purchased 9,500 shares at Rs.12 per share in the open market; the face Value of shares being Rs. 10. The company declared a dividend of 8%. What amount of dividend will he receive? Marks: 2+ 0.5Rs. 7,600 Rs. 9,120 Rs.10,000 Rs. 9,500 None of the above. The Correct Answer is : Rs. 7,600 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 127. A person purchased 40 shares of Rs. 50 each at a discount of 5%, the rate of dividend being 4.75%. The rate of income on invested amount is Marks: 2+ 0.53.25% 4.25% 4.50% 4.75% None of the above. The Correct Answer is : None of the above. You did not answer the question.

Explanation : undefined Module : Module A Chapter : undefined 128. A man wants to buy Rs. 20 shares, the dividend being 9%. He wants to have an income of 12% on his investment. At what market price should he purchase each share. Marks: 2+ 0.5Rs. 12 Rs.15 Rs. 18 Rs. 20 Rs.21. The Correct Answer is : Rs.15 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 129. A man invested Rs. 3,880 in a stock at 97 to obtain an income of Rs. 220. The rate of dividend on stock is Marks: 2+ 0.525% 22.5% 15% 12% 5.5% The Correct Answer is : 5.5% You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 130. Maya invested Rs. 8,910 in Rs. 10 shares quoted at Rs. 8.25. If the rate of Dividend is 6%, her annual income is Marks: 2+ 0.5Rs. 208 Rs. 534 Rs. 648 Rs. 656 Rs. 700. The Correct Answer is : Rs. 648 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 131. A woman invests some money partly in 4% stock at 120 an partly in 3% stock at 96. To get equal dividends from both, she must invest the money in the ratioMarks: 2+ 0.51:2 2:3 3:4 4:5 15:16. The Correct Answer is : 15:16. You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 132. Cash flow each year is equal to -

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Accounting profit only Accounting profit minus tax Accounting profit minus tax plus depreciation All of the above None of the above. The Correct Answer is : Accounting profit minus tax plus depreciation You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 133. Capital budgeting involves Marks: 2+ 0.5Selection of projects for implementation Estimation of cost benefit of projects Generation of investment ideas All of the above None of the above. The Correct Answer is : All of the above You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 134. Capital budgeting involves Marks: 2+ 0.5Selection of projects for implementation Estimation of cost benefit of projects Generation of investment ideas All of the above None of the above. The Correct Answer is : All of the above You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 135. Capital expenditure decisions involve those generating benefits for a period 0.5-

Marks:

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Exceeding one year Exceeding two years Exceeding five years Exceeding ten years None of the above. The Correct Answer is : Exceeding one year You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 136. Payback period is a applicable Marks: 2+ 0.5In evaluating a single project In evaluating mutually exclusive projects In evaluating term loan proposals In evaluating single project or mutually exclusive projects None of the above. The Correct Answer is : In evaluating single project or mutually exclusive projects You did not answer the question. Explanation : undefined

Module : Module A Chapter : undefined 137. While evaluating capital investment proposals, the time value of money is Considered in case of Marks: 2+ 0.5Payback period method Discounted cash flow method Accounting rate of return method All of the above None of the above The Correct Answer is : Discounted cash flow method You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 138. Depreciation is included in costs in case of Marks:

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Payback period method Present value index method Accounting rate of return method All of the above. None of the above. The Correct Answer is : Accounting rate of return method You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 139. The return after the pay-off period is not considered in case of -

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Payback method Internal rate of return method Present value index method All of the above None of the above The Correct Answer is : Payback method You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 140. The cash inflows on account o operations are presumed to have been re-invested at the cut-off rate in case of Marks: 2+ 0.5Payback method Accounting rate of return method Discounted cash flow method All of the above. None of the above. The Correct Answer is : Discounted cash flow method You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 141. Time value of money is considered under Marks: Payback method Accounting rate of return method Internal rate of return method

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All of the above None of the above. The Correct Answer is : Internal rate of return method You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 142. The method of appraisal based on accounting projects rather than cash flows is Marks: 2+ 0.5-

Payback period Average rate of return Discounted payback period Benefit-cost-ratio. None of the above The Correct Answer is : Average rate of return You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 143. Ranking of projects under NPV and IRR may differ if the period of life of the projects is different the timing of the cash flows is different either (i) or (ii) is present both (i) and (ii) are present None of the above. The Correct Answer is : either (i) or (ii) is present You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 144. Internal rate of return is the rate at which Marks:

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the net present value is nil the net present value is positive the discount rate equals the firm's net profit rate the income generated by the project meets the cost of the funds None of the above The Correct Answer is : the net present value is nil You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 145. Which one of the following statement is true? Marks: 2+ 0.5The working capital released on the termination of a project is not cash Depreciation on asset is included in cost in computing discounted cash Increase in working capital due to investment proposal is included in Cost of investment in the new plant is the cost of new plant plus the Between two mutually exclusive projects, that one should be preferred The Correct Answer is : Increase in working capital due to investment proposal is included in You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined

146. Which one of the following statement is true?

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The internal rate of return and net present value are synonymous terms. Cash flows from a project can be estimated accurately. The inflation and deflation factors need not be taken into account while estimating future cash inflows since it is difficult to predict future price changes. Cash flows from a project can be worked out only on the basics of certain probabilities No additional working capital is required in case of an expansion of an existing project. The Correct Answer is : Cash flows from a project can be worked out only on the basics of certain probabilities You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 147. Which one of the following statements is false? Marks: 2+ 0.5Discounted cash flow technique takes into account the time value of money. Depreciation is considered while calculating the return on a project according to the Accounting Rate of Return Method. Internal Rate of Return determines the maximum rate of interest that a firm can afford to pay on the borrowings for the particular project. Tax concessions have no role to play in estimating the cash flows from a project All of the above. The Correct Answer is : Tax concessions have no role to play in estimating the cash flows from a project You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 148. Which one of the following statements is false? Marks: 2+ 0.5NPV and profitability index always yield identical results. Profitability index is also known as benefit-cost ratio. Payback method disregards cash flows after the payback period Mathematical techniques and available for dealing with risk and uncertainty factors involved in determining future cash inflows from a project. Depreciation is not a source of cash inflow. The Correct Answer is : NPV and profitability index always yield identical results. You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 149. Profitability Index is also known asMarks: 2+ 0.5Benefit-cost-ratio Desirability fact or Both (i) and (ii) All of the above None of the above. The Correct Answer is : Both (i) and (ii) You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 150. A machine costs Rs. 5,00,000 and would fetch Rs. 2,50,000 in the first year; Rs.1,50,000 in second year and Rs. 1,00,000 in third year. Payback period would beMarks: 2+ 0.51 year

2 years 1 3 years 1 The Correct Answer is : 3 years You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 151. The economic life of a plant is 8 years and its cost is Rs. 10,00,000. Annual savings (cash inflow) is Rs.2,00,000. Post payback profit would be Marks: 2+ 0.5Rs. 2,00,000 Rs. 3,00,000 Rs.4,00,000 Rs. 6,00,000 Rs. 8,00,000 The Correct Answer is : Rs. 6,00,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 152. The total flows of a plant after tax but before depreciation for 5 years are Rs. 45,800 and total depreciation amounts to Rs.32,000.Initial investment in the plant is Rs. 30,000. The average rate of return would be Marks: 2+ 0.56.3% 9.2% 18.4% 20% 22% The Correct Answer is : 18.4% You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 153. Which one of the following is a 'false' statement?

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Depreciation is a part of the operating cost. Depreciation is provided to know the correct profit Depreciation is a fall in the value of fixed assets. Fall in the market price is the main cause of depreciation. Depreciation is shown in debit side of Profit & Loss a/c. The Correct Answer is : Fall in the market price is the main cause of depreciation. You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 154. Depreciation arises because of Marks: 2+ 0.5Fall in the value of money. Fall in the market value of a fixed asset. Fall in the utility of a fixed asset. Fall in the value of a fixed asset owing to wear and tear None of the above. The Correct Answer is : Fall in the value of a fixed asset owing to wear and tear You did not answer the question.

Explanation : undefined Module : Module A Chapter : undefined 155. The main objective of providing depreciation isto reduce tax burden To calculate true profits To show true financial position To provide funds of replacement of fixed assets. All of the above. The Correct Answer is : All of the above. You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 156. Depreciation is the process of Marks: 2+ 0.5-

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Valuation of a fixed asset Apportionment of the cost of the fixed asset over its useful life Maintenance of asset in a state of efficiency All of the above None of the above. The Correct Answer is : Apportionment of the cost of the fixed asset over its useful life You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 157. Under the straight line method of depreciation, amount of depreciation Marks: 2+ 0.5increases every year decreases every year is constant every year increases for some years None of the above. The Correct Answer is : is constant every year You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 158. Under the diminishing balance method, depreciation is calculated on the original cost. The written down value The scrap value The market value None of the above. The Correct Answer is : The written down value You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 159. Under the diminishing balance method of depreciation-

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The amount on which depreciation is calculated, is reduced from year to year the rate % declines from year to year the rate % as well as amount reduces every year

All of the above. None of the above The Correct Answer is : The amount on which depreciation is calculated, is reduced from year to year You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 160. The amount of depreciation charged on machinery will be credited to Marks: 2+ 0.5Machinery a/c Depreciation a/c Cash a/c P & L a/c None of the above. The Correct Answer is : Machinery a/c You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 161. Machine Hour Rate Method of providing depreciation is useful when -

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output can be effectively measured utility of the machine can be directly related to its productive use use of the machine can be measured in terms of time All of the above None of the above The Correct Answer is : use of the machine can be measured in terms of time You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 162. In case of Annuity Method of depreciation Marks: 2+ 0.5increases every year decreases every year remains constant every year All of the above None of the above The Correct Answer is : remains constant every year You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 163. For providing depreciation on leasehold property, the appropriate method of depreciation is Marks: 2+ 0.5Fixed Instalment Method Written Down Value Method Revaluation Method Replacement Method None of the above. The Correct Answer is : Fixed Instalment Method You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined

164. Depletion Method of depreciation is used in -

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Machinery, Building, Furniture, etc. Cattle Loose tools, etc. Mines, Quarries, etc. None of the above. The Correct Answer is : Mines, Quarries, etc. You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 165. Depreciation is charged by allocating depreciable cost in proportion of the annual output to the probable life-time output under the Marks: 2+ 0.5Working Hours Method Production Units Method Valuation Method All of the above None of the above The Correct Answer is : Production Units Method You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 166. 14. A machinery worth Rs. One lakh with expected life of 10 years is purchased. The depreciation on it is charged equally every year. The method of depreciation is Marks: 2+ 0.5Straight Line Method Written Down Value Method Sinking Fund Method Annuity Method Insurance Policy Method The Correct Answer is : Straight Line Method You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 167. The interest lost on the acquisition of an asset is taken into account in calculating the amount of depreciation in Marks: 2+ 0.5Straight Line Method Revaluation Method Diminishing Balance Method Depletion Method Annuity Method The Correct Answer is : Diminishing Balance Method You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 168. On a machinery, depreciation @ 10% is Rs. 30,000 for the first year, Rs. 27,000 for the second year. What will be amount of depreciation for the third year? Marks: 2+ 0.5Rs. 30,000 Rs. 24,300 Rs. 20,400

Rs. 22,600 Rs. 27,000. The Correct Answer is : Rs. 24,300 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 169. Mr. A purchased a second hand machinery for Rs. 80,000 on 1st April 2001 and spent Rs. 35,000 on its over-hauling and installation. Depreciation is charged @ 10% on original cost. On 30th June 2004, the machinery was sold off for Rs. 65,000. What is the amount of loss to the written of, presuming the accounting ear ends on 31st March every year? Marks: 2+ 0.5Rs. 15,500 Rs. 12,625 Rs. 13,095 Rs. 13,505 None of the above The Correct Answer is : Rs. 12,625 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 170. Mr. X purchased a machine worth Rs. 2,00,000 on 1st January 2002. The machine is depreciated at 10% p.a.; on original cost. One 1st July 2004, the machinery was sold for Rs. 1,20,000. What is the amount of loss to be written off, assuming that the books are closed on 31st December. Marks: 2+ 0.5Rs. 25,000 Rs. 30,000 Rs. 35,000 Rs. 40,000 Rs. 45,000 The Correct Answer is : Rs. 30,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 171. A company purchased a car for Rs. 2,00,000 on 1st January 2003. Depreciation is charged at 20% p.a. under written down value method. The car was sold on 1st July 2004 for Rs. 1,60,000. calculated the amount Profit/loss on the sale of the car. Marks: 2+ 0.5(-) Rs. 10,000 (-) Rs. 12,000 Rs. 14,000 Rs. 16,000 Rs. 18,000 The Correct Answer is : Rs. 16,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 172. On 1st January 2002, Mr. X purchased a plant costing Rs. 82,000 and spent Rs. 8,000 in its erection. The estimated effective life of the plant is 10 years, its scrap value being Rs. 10,000. What will be the depreciation value at the end of the 3rd year, under straight line method? Accounts are closed on 31st December each year; Marks: 2+ 0.5Rs. 81,000 Rs. 72,000

Rs. 56,000 Rs. 70,000 Rs. 60,000 The Correct Answer is : Rs. 56,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 173. A firm purchased a machine for Rs. 5,00,000 on 1st April 2004, Its estimated effective life is 5 years at the end of which it will have a scrap value of Rs. 1,40,000. What will be the amount of depreciation each year if charged under straight line method/ Marks: 2+ 0.5Rs. 60000 Rs. 72,000 Rs. 80,000 Rs. 1,00,000 Rs. 1,20,000. The Correct Answer is : Rs. 72,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 174. On 1st January 2002, a firm purchased machinery worth Rs., 1 lakh, and on 1st July 2004, it buys additional machinery worth Rs. 20,000 and spends Rs. 2,000 and spends Rs. 2,000 on its erection. Annual depreciation is 10% on straight line method. What will be written down value at the end of 5th year? Marks: 2+ 0.5Rs. 66,000 Rs. 66,500 Rs. 90,000 Rs. 50,000 Rs. 1,00,000 The Correct Answer is : Rs. 66,500 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 175. Mr. X Purchased a machinery for Rs. 1 lakh, its effective life being 5 years and scrap value at the end of 5 years Rs. 10,000. The machinery is sold at the end of 3rd year for Rs. 45,000. If depreciation is charged on straight line method, what is the profit/loss on this sale? Marks: 2+
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Profit Rs. 36,000 Profit Rs. 18,000 Profit Rs. 1,000 Loss Rs. 1,000 Loss Rs. 18,000 The Correct Answer is : Loss Rs. 1,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 176. A firm purchased a machinery worth Rs. 2,05,000 and spent Rs. 20,000 on its installation. Its effective useful life is estimated at 10 years and scrap value Rs. 25,000. What will be the depreciated value at the end of 3rd year under straight line method? Marks: 2+ 0.5Rs. 2,25,000 Rs. 60,000

Rs. 1,65,000 Rs. 45,000 Rs. 55,000 The Correct Answer is : Rs. 1,65,000 You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 177. ............... is maintained for known liabilities. Provision Reserve Reserve Fund Capital Reserve All of the above. The Correct Answer is : Provision You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 178. Provision is also known as Marks:

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Capital Reserve Contingency Reserve Reserve Fund Specific Reserv None of the above. The Correct Answer is : Specific Reserv You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 179. ..................... is created for unknown liability.

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Provision for depreciation Provision for bad and doubtful debts. Provision for taxation General Reserve None of the above The Correct Answer is : General Reserve You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 180. Profit or Loss on Depreciation fund Investment is transferred to Profit & Loss a/c Fixed Asset a/c Depreciation Fund a/c General Reserve Capital Reserve. The Correct Answer is : Depreciation Fund a/c You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined

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181. The profit on depreciation policy is transferred to Profit & Loss a/c Fixed Asset a/c Insurance Policy a/c Depreciation Reserve Capital Reserve. The Correct Answer is : Depreciation Reserve You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 182. Depreciable assets are the assets which -

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Have a limited useful life are held by the enterprise for use in the production or supply of goods an services are expected to be used during more than one accounting period All of the above None of the above. The Correct Answer is : All of the above You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 183. The appropriate method of depreciation in the case of livestock is Marks: 2+ 0.5Straight Line Method Diminishing Balance Method Depletion Method Appraisal Method Retirement Method The Correct Answer is : Appraisal Method You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 184. Which of the following factors has a bearing on the useful life a fixed asset? Physical wear and tear Obsolescence Legal or other limits on the use of the asset (i) & (ii) All of the above. The Correct Answer is : All of the above. You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 185. The economic factors causing depreciation, are depletion wear and tear effluxion of time obsolescence and inadequacy All of the above. The Correct Answer is : obsolescence and inadequacy You did not answer the question.

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Explanation : undefined Module : Module A Chapter : undefined 186. Which one of the following assets does not require provision for depreciation
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Land Leased assets Livestock Loose tools All of the above. The Correct Answer is : Land You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 187. Accountants prefer to use the historic cost rather then any other cost for computing depreciation, because of the accounting convention of Marks: 2+ 0.5Consistency Conservatism Cost Disclosure Matching. The Correct Answer is : Cost You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 188. accelerated methods of depreciation are favoured because of -

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the provisions in the Companies Act considerable, saving in taxes the possibility of raising more resources for replacement of assets the fact that assets are more productive in earlier years rather than in the later years. None of the above The Correct Answer is : the fact that assets are more productive in earlier years rather than in the later years. You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 189. Which one of the following statements is 'true' Marks: 2+ 0.5the term 'depreciation', 'depletion' and 'amortization' refer to one and the same thing. No method of depreciation accurately calculates the charge to be made in respect of the asset. Depreciation base refers to the amount on which the rate of depreciation is applied for computing the amount of depreciation. The total amount of depreciation to be allocated over the useful like of the asset is the difference between the total acquisition cost and the replacement value. The total amount of depreciation to be written off over the life of an asset is equal to the cost of the asset plus its depreciation. The Correct Answer is : No method of depreciation accurately calculates the charge to be made in respect of the asset. You did not answer the question. Explanation : undefined

Module : Module A Chapter : undefined ================= 190. Accounting is the language of Business Statistics Investment Industry None of the above The Correct Answer is : Business You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 191. The word book keeping denotes

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Art of recording business dealings in books Keeping of books of account Maintaining stock of books for sale purchase All of the above None of the above The Correct Answer is : Art of recording business dealings in books You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 192. The objective of book Keeping is Marks: 2+ 0.5To know the profit and loss in the business To know the assets and liabilities in the business To know the deptors and creditors in the business All of the above None of the above The Correct Answer is : All of the above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 193. The prime function of Accounting is to Marks: 2+ 0.5Record business transactions Record qualities of the business man Record and classify business transaction Provide the informational basis for action None of the apve The Correct Answer is : Record and classify business transaction You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 194. Kautilya wrote book on Marks: 2+ 0.5Accounting Economics Statistics Palmistry None of the above

The Correct Answer is : Economics You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 195. The modern concept of book-keeping and accounting was given by

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Bhaskaracharya Luca De Bargo Pacioli Shukla& Grewal Pickle None of the books The Correct Answer is : Luca De Bargo Pacioli You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 196. Management Accounting provides services to the management in performing
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Co _ Ordinating management funtions Controlling funtions All management function Communication functions None of the above The Correct Answer is : All management function You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 197. In India accounting provides services to the management in performing Government of India Board of direct Taxes Accounting Association Accounting standards Board All of the above The Correct Answer is : Accounting standards Board You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 198. Accounting standard 6 deals with Marks: 2+ 0.5Constucture cortract Revenue Recorgnition Fixed Assets Depreication Government grant The Correct Answer is : Depreication You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 199. The Accounting standatd for dislosure of Accounting policeis is No.1

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No.2 No.3 No.4 No.5 The Correct Answer is : No.1 You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 200. Compliance with accounting standards is the duty of the Employees Board of directors Accountant Cashier Auditor The Correct Answer is : Auditor You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 201. The abbroviation GAAB stands for

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Generally Accepted Accountiong Policies Generally Accepted Accountiong practice Generally Accepted Accountiong principles Generally Accected and audio procedures None of the above The Correct Answer is : Generally Accepted Accountiong principles You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 202. Prior Period income should be Marks: 2+ 0.5inclusive determination of current profits excluded for determination of current profits shown in P&Lo a/c ofthe current year (i)of (ii) above (i) ( iiiO above The Correct Answer is : (i) ( iiiO above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 203. Accounting principles are generally based on Subjectivity Practicability Convenience in recording Imagination None of the above The Correct Answer is : Practicability You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1

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204. The sustem of recording business transactuibs based on dual aspect concept is called
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Single entry sustem Double entry system Double accout system All of the abvoe none of the abvoe The Correct Answer is : Double entry system You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 205. The concvention of conservatio is applicatble

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In provioding for depreciation In providing for discount on debtors In providing for discount on deptors In making provision for bad and doubtful depts In provididng for taxation The Correct Answer is : In making provision for bad and doubtful depts You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 206. Under the money measurement concept the following will be recorded in the books of account of the busuiness Marks: 2+ 0.5Vawlue of furniture Quality of companys goods Bad heaslth of managing director All of the above None of the abvoe The Correct Answer is : Vawlue of furniture You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 207. Compliance of accounting standartds is the duty of

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Board of Directors Auditor Company secretary Central Government None of the abvoe The Correct Answer is : Auditor You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 208. the concept of conservations when applied to Balance sheet results in Understatement of assets Overstandment of liabilities Underestatement of liability Overstatement of assets Overstatement of cpital The Correct Answer is : Understatement of assets

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You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 209. The practie of appendintg neptes regarding contingent liabilitaeis in accounting statements is in pursuance to Marks: 2+ 0.5Convention of disclosure Convention of conservatism Concept of money measurement Concept of mone Concern of accouting period The Correct Answer is : Convention of disclosure You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 210. Recoding business transactions on the basis of documents is to opserve the accountion assumption of Marks: 2+ 0.5Accouting cquity Going concern Money ,measurement Verifiable pbjective Accounting period The Correct Answer is : Verifiable pbjective You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 211. Treatment of capital as liability opserves the accounting assumpting of busuness Revenue realisation full disclosure historical cost principle materality The Correct Answer is : busuness You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 212. Accounting period consists oif

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12months 24months 36months 48months 60months The Correct Answer is : 12months You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 213. In construction work revenue is identified on the basis of sales

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cash received balanced due work completed none of the abvoe The Correct Answer is : work completed You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 214. Accounting to the principles of matching cost and revenur income of a business can sbe ascertaineed by Marks: 2+ 0.5Total recreiveed Total. pauments matching total sales and purchases matching revenue dwith the cost of the business all of the books The Correct Answer is : matching revenue dwith the cost of the business You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 215. According to the concept of conservatism the stock in trade is valued at

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cost price market price cost of market price whicheverr is lower cost or markert price whichevert islower cost of market price whicheverr is lower cost or markert price whichevert is higher none of the above The Correct Answer is : cost of market price whicheverr is lower cost or markert price whichevert islower You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 216. The following convention cosiders the qualities and disqualitie s of genetal menager
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conven tion of coservatism convention of feasibility convention of materialit all of the above none of the above The Correct Answer is : conven tion of coservatism You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 217. he concept of conservatism takes into account all future lossed but leaves all future profits all future proits but leaves all future losseS all future profits and all future lossed all of he above none of the above The Correct Answer is : none of the above You did not answer the question.

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Explanation : undefined Module : Module B Chapter : Chapter1 218. The policy of anticipate no profit and provide for the possible lossed arises due to
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convention disclosure convention of materialism convention of consistecy convention of feasibility convention of conservation The Correct Answer is : convention of feasibility You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 219. Non financial information is not recorded in accounts to

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accural concept entity concept dual aspect concept meoney measurement concept none of the above The Correct Answer is : meoney measurement concept You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 220. According to the concept of money meaurement the following will not be recording in the ooks of accounts Marks: 2+ 0.5simplicity of the general management deathe of the general manager (i) and (ii) both gratuaitay paid to hte general managers wife after his dearth pension paid to the general managers wife after his death The Correct Answer is : (i) and (ii) both You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 221. According to the concept of going concern a business is presumed to have a limited life a long life a definite life an indefinite life none of the above The Correct Answer is : a long life You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 222. Realisation concept miplies realisation of revenure at the reciept of the order the delivery of goods

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the reciept of cash from the customert the cancellation of an ofder all of the abvoe The Correct Answer is : the delivery of goods You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 223. The concern concept according to which a fact or happining which canot be expressed in terms of money is not recorded in the accounting books is callled Marks: 2+ 0.5cost concept matching concept realisation concept money measurement concept accounting period concept The Correct Answer is : money measurement concept You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 224. Profit represents excess of receipts over expenditure in

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mercantile system of accounting cash system of accounting hybrid system of accounting all tof the above none of the above The Correct Answer is : cash system of accounting You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 225. income and expenses are recognised as and when they are due irrestective of their actual reciept payment in Marks: 2+ 0.5mercantile system of accounting cash system of accounting hybrid system of accounting all of the above none or the above The Correct Answer is : mercantile system of accounting You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 226. Point out the correct accounting equation Marks: 2+ 0.5capital =Assets+Liabilities Assets =Capital +liabilities Assets= Capital _liabililties Liabilities =Assets +capital Capital =caprtal -Assets The Correct Answer is : Assets =Capital +liabilities You did not answer the question. Explanation : undefined

Module : Module B Chapter : Chapter1 227. Ponit out the incorrect accounting equation

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capital =assets -liabilities assets =capital +liabiliteis liabilities =assets +capital assets = liabilities +capital all of the abvoe The Correct Answer is : liabilities =assets +capital You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 228. Purchase of a T.V set for the propreitor will Marks:

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increase assets and decrease capital increase capital and decrease assets increase assets and increas capital decrease assets and decrease capital none of the above The Correct Answer is : decrease assets and decrease capital You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 229. calculate groes income from the following information sales Rs 2,00,000sales Rs 4,000opening stock Rs 20,000pruchases 1,20,000purchase retures 2,000wages 14,000frieght 6,000salaries 40,000closing stock 24,000 Marks: 2+ 0.5Rs 60,000 Rs 78,000 Rs 1,34,000 Rs 62,000 Rs 1,96,000 The Correct Answer is : Rs 62,000 You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 230. calculate -(a) cost of goods sosd (b) gross profit and (c) bet profit frim the following igures opening Rs 40,000purchases Rs 2,00,000purchases returns Rs 20,000direct expenses Rs 30,000]closing stock Rs 20,000indirect expenses RS 20,000sales Rs 2,50,000sales returns 10,000 Marks: 2+ 0.5Rs 2, 30,000 Rs 10,000 Rs 5,000 Rs 2,30,000 Rs 5,000: Rs 10,000 Rs 2,30,000 Rs 10,000 (-) Rs 10,000 Rs 2,10,000 Rs 10,000 Rs 5,000 Rs 2,10,000 Rs 5,000 Rs 10,000 The Correct Answer is : Rs 2,30,000 Rs 10,000 (-) Rs 10,000 You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 231. sales during the year is Rs 1,00,000 grosss profits is 25% on cost find out the amount of gross profit Marks: 2+ 0.5-

Rs 20,000 Rs 25000 Rs 30,000 Rs 33,000 Rs 40,000 The Correct Answer is : Rs 20,000 You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 232. calculate sales if cost of sales is Rs 1,60,000 and the gross loss is Rs 68,00

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Rs 2,28,000 Rs 92,000 Rs 2,52,00 RS 1,42,000 none of the abvoe The Correct Answer is : Rs 92,000 You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 233. find out net profit from the following figares cash sale = Rs 70,000credit sales =RS 80,000cost of goods =Rs 1,04,000selling expenses =Rs 13,400 Marks: 2+ 0.5(-) ?Rs .34,000 (-) rs 24,000 Rs 32,600 RS 46,000 none of the books The Correct Answer is : Rs 32,600 You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 234. what will be the capital of the propeitor if his her assets are Rs 1,90,00 and liabilities Rs 1,25,000 Marks: 2+ 0.5Rs 0,000 Rs 65,000 RS 75,000 Rs 1,90,000 none of the books The Correct Answer is : Rs 65,000 You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 235. Revenue is said to be realised

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when sales are made when goods are manufacturd when order is recieved when cash is recieved when tenders are invited The Correct Answer is : when sales are made You did not answer the question.

Explanation : undefined Module : Module B Chapter : Chapter1 236. The term Expense;denotes

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cost of services and things used for generating revenue payment or the icurings of a dept for an asset cost which fails to proece revenue all of the above none of theabove The Correct Answer is : cost of services and things used for generating revenue You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 237. in case of traditional approach the expense to be matched with revenue is based on
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original cost cast cost replacement cost all of the abvoe none of the abvoe The Correct Answer is : original cost You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 238. In case of gold and silver revenue is recognised in the accounting period in which it is
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sold deliverred mined all of the above none of the abvoe The Correct Answer is : mined You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 239. in long term contracsts revenur is generall y recognised

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only onm full compleetion of the contract even when a part of the contract has been colmpleted only when full cash is receivced when contract is signed none of the above The Correct Answer is : even when a part of the contract has been colmpleted You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 240. which one of the following statement is true? Marks: 2+ 0.5matching concept requires that revenur should always be equal to the expenditure the mercanntile system of accoucting is acceptable only for trader

hybrid system of accounting is not permitted as per income tax law in india going concern concept assumes that the firm is making the cost of self constructed fixed assets should be treated as revenue expenditure The Correct Answer is : hybrid system of accounting is not permitted as per income tax law in india You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 241. which one of the following statement is false? Marks: 2+ 0.5the accounting principle followed for financiall accounting are not applicaable for manbagement accounting the selection of a specific accounting policy is left to the discretion of the firm, concerned according to AS 4 cintingeney profits should not e recognised in financial stqatement AS 1 is regarding disclosing disclosure of accounting pllicies As 10 is regarding according accounting for fixed asseerts The Correct Answer is : the accounting principle followed for financiall accounting are not applicaable for manbagement accounting You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 242. the accounting period concept states that Marks: 2+ 0.5accounting year should be the same as financial years the accounting period can be only one year the accounting period should be the calender year the accounting period should be different from the calender year none of the above The Correct Answer is : none of the above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 243. In book-keeping , the transactions are recorded under .....types of accounts Two Three Four Five Six The Correct Answer is : Three You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 244. Sales book is maintained to record -

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all sales (cahs and credit) all cash sales of goods only all credit sales of goods only All of the above None of the above The Correct Answer is : all credit sales of goods only You did not answer the question. Explanation : undefined

Module : Module B Chapter : Chapter2 245. The periodic total of the sales book is posted to the Debit of Sales Account Credit of Sales Account Debit of Cash Account Credit of Cash Account None of the above The Correct Answer is : Credit of Sales Account You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 246. Sales Account in ledger recordsMarks: 2+ 0.5-

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Only cash sales of merchandise Only credit sales of merchandise Both cash and credit sales of merchandise Only credit sale of old assets All of the above. The Correct Answer is : Both cash and credit sales of merchandise You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 247. Withdrawals by propritor would Marks: 2+ 0.5reduce liabilities and increase assets reduce assets and increase liabilities reduce both the assets and owner's equity reduce owner's equity and increase laibilities None of the above. The Correct Answer is : reduce both the assets and owner's equity You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 248. Returns Inward Book is maintained to record Marks: 2+ 0.5Return of goods purchased Return of goods sold Return of old assets sold Return of anything purchased Return of anything sold. The Correct Answer is : Return of goods sold You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 249. Returns Outward Book is maintained to record Return of goos pruchases Return of goods sold Return of old assets sold Return of anything purchased Return of anything sold The Correct Answer is : Return of goos pruchases

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You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 250. Returns Outward Book is mainteained to recordReturn of goods purchased Return of goods sold Return of old assets purchased Return of anything purchased Return of anything sold. The Correct Answer is : Return of goods purchased You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 251. Salary Outstanding Account is a personal account

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True False Incomplete statement All of the above None of the above. The Correct Answer is : True You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 252. The amount of Rs. 5,000 paid to a transport company to carry a machine should be debited to Marks: 2+ 0.5Cash a/c Machinery a/c The Transport Caompany's a/c Freight a/c None of the above The Correct Answer is : Freight a/c You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 253. Closing stock of office stationery is written in the -

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credit side on Trading a/c credit side of P & L a/c assets side of Balance Sheet liabilities side of Balance sheet None of the above The Correct Answer is : assets side of Balance Sheet You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 254. Provision for discount on creditors will always show a debit balance. Tru False

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Incomplete statement All of the above None of the above The Correct Answer is : Tru You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 255. Sale of an old aset on credit at a price higher than written down value of the asset, would Marks: 2+ 0.5leave owner's equity unaffected increae owner's equity to the extent of less vlaue decrease owner's equity by the amount of sale increase owner's equity to the extent of profit on sale None of the above. The Correct Answer is : increase owner's equity to the extent of profit on sale You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 256. Which one of the following statements is 'true'? Marks: 2+ 0.5Only a limited number of transactions affect the accounting equation. The basic unit of accounting is a journal entry Transaction analysis analyses the effect of transactions on the variables of the accounting equation. When the balance of an asset is to be reduced, the Asset a/c is to be debited. Decreae in one asset with no change in capital will result in decreae in another asset. The Correct Answer is : Transaction analysis analyses the effect of transactions on the variables of the accounting equation. You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 257. The discount column of a triple-column cash Book recordsMarks: 2+ 0.5cahs discount trade discount bank discount seasonal discount quantity discount. The Correct Answer is : cahs discount You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 258. The appropriate book to record credit purchase of furniture is Journal Purchases Book Cash Book Petty Cash Book Sales Book. The Correct Answer is : Journal You did not answer the question. Explanation : undefined

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Module : Module B Chapter : Chapter2 259. Sales a/c Dr. To Trading a/cisan example of Opening entry Closing entry Transaction entry Adjustment entry Rectification entry The Correct Answer is : Closing entry You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 260. Posting is donw from Marks: 2+ 0.5-

Marks:

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ledger to ledger one subsidiary book to another ledger to subsidiary book subsidiary book to ledger None of the above The Correct Answer is : subsidiary book to ledger You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 261. Ledger is a principle book in which Marks: 2+ 0.5only real accounts are kept only personal accounts are kept only representative personal accounts are kept only nominal accounts are kept All account are kept The Correct Answer is : All account are kept You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 262. Bills Receivable Book and Bills Payable book arePrincipal Books Ledger Subsidiary Books Memorandum Books None of the above The Correct Answer is : Subsidiary Books You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 263. The balance of Cash Account indicates Net loss for the period Net profit for the period Net cash on hand Net worth of the business Net amount due from debtors. The Correct Answer is : Net cash on hand

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You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 264. Transferring the debit and creidt items from journal to their respective accounts in the ledger is called Marks: 2+ 0.5single entry double entry posting balancing invoicing The Correct Answer is : posting You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 265. the amount and goods brought in by the proprietor in the business should be credited to Marks: 2+ 0.5-

Drawings Account Cash account Capital Account Purchases Account None of the above The Correct Answer is : Capital Account You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 266. In case of debt becoming bad, the amount should be credited to Provision of Bad Debts a/c Bad Debts a/c Sales a/c Creditor's a/c Debtor's a/c The Correct Answer is : Debtor's a/c You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 267. The amount of salary paid to Mr. A should be debited to Cash a/c Salaries a/c Mr. A's a/c Outstanding Salaries a/c None of the above The Correct Answer is : Salaries a/c You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 268. Cash discount allowed to a debtor should be credited to Sales a/c

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Discount a/c Cash a/c Customer's a/c None of the above The Correct Answer is : Customer's a/c You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 269. The return of goods by a customer should be debited toGoods a/c Sales Returns a/c Customer's a/c Purchase Returns a/c None of the above The Correct Answer is : Sales Returns a/c You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 270. Sales made of Mr. X for should be debited to Mr. X's a/c Sales a/c Cash a/c Purchases a/c None of the above. The Correct Answer is : Cash a/c You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 271. Prepaid Expenditure a/c is Marks:

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Real Account Natural Personal Account Representative Personal Account Nominal Account None of the above The Correct Answer is : Representative Personal Account You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 272. Loan taken from Khushboo should be credited to Marks: Cash a/c Bank a/c Loan from Khushboo a/c Khushboo's a/c None of the above The Correct Answer is : Loan from Khushboo a/c You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2

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273. Select the true statement from the follwing

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Every transaction is recorded first in the cash Book Bank account is not a personal account Narration is necessary Drawing Accounts is a real acocunt Journal is a book of original entry. The Correct Answer is : Journal is a book of original entry. You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 274. Interest paid on borrowings is an example of Marks: 2+ 0.5Real Account Personal account Nominal Account All of the above. None of the above The Correct Answer is : Nominal Account You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 275. Interest received in advance is an example of Real Account Personal Account Nominal Account All of the above None of the above The Correct Answer is : Personal Account You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 276. Goodwill Account is an example of Marks:

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Real (tangible)account Real (intangible) account Personal account Nominal account None of the above The Correct Answer is : Real (intangible) account You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 277. The debit balance is cash Account indicatesMarks: Total csh received Total cash paid Net income Cash in hand None of the above The Correct Answer is : Cash in hand You did not answer the question.

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Explanation : undefined Module : Module B Chapter : Chapter2 278. Cash Account is a -

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Nominal Account Real Account Personal account All of the above None of the above The Correct Answer is : Real Account You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 279. Debit entries will increaes the balance of Purchaes Accounts Plant & Machinery Accounts (i) and (ii) both Sales Accounts Purchase Returns Accounts The Correct Answer is : (i) and (ii) both You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 280. Debit entries will decrease the balance of Salaries Accounts Furniture Account Bank Account Cash Account Capital Account The Correct Answer is : Cash Account You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 281. Debit entires will decrease the balance of Salaries Account Furniture Account Bank Account Cash Account Capital Account The Correct Answer is : Capital Account You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 282. Debit entries will decrease the balance of Salaries Account Furniture Account Bank Account

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Cash Account Capital Account The Correct Answer is : Capital Account You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 283. Credit entries will increase the balance of Goodwill Account Purchases Account Sales Returns Account Bank Overdraft None of the above. The Correct Answer is : Bank Overdraft You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 284. Credit entries will decrease the balance ofCapital Account Cash Account Purchases Return Account (i) and (ii) both (i) and (iii) both. The Correct Answer is : Cash Account You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 285. Cash discount is allowed on Marks: Purchases sales as a commission for sales prompt payment All of the above The Correct Answer is : prompt payment You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 286. Cash Books is a Marks: 2+ 0.5subsidiary journal subsidiary journal and ledger account ledger account All of the above None of the above. The Correct Answer is : ledger account You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 287. Purchase Book is maintained to record -

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all cahs purchases all credit purchases all purchases of goods all credit purchases of goods All of the above. The Correct Answer is : all credit purchases of goods You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 288. The periodic totoal of purchases of goods is posted to debit of Cash Acocunt debit of Purchase Account credit of Cash Account credit of Purchase Account None of the above. The Correct Answer is : debit of Purchase Account You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 289. The debit balance of Petty Cash Book isMarks: an expense an asset a liability a gain an income The Correct Answer is : an asset You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 290. The term 'Imprest System' is used in relation to -

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Purchases Book Sales Book Cash Book Petty Cash Book All of the above. The Correct Answer is : Petty Cash Book You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 291. Mr. A sold some old machinery not in use having book value as zero, for Rs. 10,000. It will be credited to Marks: 2+ 0.5Sales Account Trading Account Profit on sale of fixed assets All of the above None of the above. The Correct Answer is : Profit on sale of fixed assets You did not answer the question. Explanation : undefined

Module : Module B Chapter : Chapter2 292. Mr. A purchased fixed assets with the available cash. This transaction would 0.5-

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reduce current assets and current liabilities reduce current assets and increase fixed assets reduce current assets and reduce fixed assets reduce current assets and increase current liabilities keep current assets and fixed assets unchanged. The Correct Answer is : reduce current assets and increase fixed assets You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 293. The system of double entry is based on the principle thateMarks: 2+ 0.5Double voucher is prepared to record the transaction Head of one account is debited or credited twice Every transaction has two-fold effect and it affects two accounts in opposite direction All of the above None of the above The Correct Answer is : Every transaction has two-fold effect and it affects two accounts in opposite direction You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 294. Double entry system of book-keeping refers to a system where Marks: 2+ 0.5Each trasaction is recorded in two sets of account books. The number of accounts with a debit balance must agree with the number of accounts with credit balance. Each transaction is recorded twice-once in journal and then in ledger Each debit and credit entries are passed for each transaction . All of the above. The Correct Answer is : Each debit and credit entries are passed for each transaction . You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 295. Debit signifies Marks: 2+ 0.5Increase in assets accounts Decrease in capital account Decrease in liabilities accounts All of the above None of the above The Correct Answer is : All of the above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 296. Credit signifies Marks: 2+ 0.5Increase in assets accounts Decrease in capital account Increase in liabilities accounts

All of the above None of the above The Correct Answer is : Increase in liabilities accounts You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 297. In double entry sytstem of book-keeping, every business transaction affects 0.5-

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One account Two accout Debit and credit side of the same account All of the above None of the above. The Correct Answer is : Two accout You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 298. In book-keeping, posting means Marks:

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To record the transactionw with the help of a voucher To record the transactionw with the help of other records To record the transactionw in the books of original entry To record the transactionw from the books of original entry to the ledger All of the above The Correct Answer is : To record the transactionw from the books of original entry to the ledger You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 299. Real account srelate to Marks: 2+ 0.5Expenses Incomes Assets Liabilities Debtors and Creditors. The Correct Answer is : Assets You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 300. Personal accounts relate to -

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Expenses and Incomes Assets and Liabilities Debtors and creditors All of the above None of the above The Correct Answer is : Debtors and creditors You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2

301. The basic rule of Book-keeping-debit and expenses/Losses and credit the income/gains is applicable to Marks: 2+ 0.5Real Accounts Personal Accounts Nominal Accounts All of the above None of the above. The Correct Answer is : Nominal Accounts You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 302. Which of the following events is not a business transaction? Withdrawas of goods by the proprietor for domestic use Purchase of goods on credit Making promise to supply goods Loss of goods by theft Sale of goods for cash The Correct Answer is : Making promise to supply goods You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 303. Wages owing is Marks: 2+ 0.5Real Account Personal Account Nominal Account All of the above None of the above The Correct Answer is : Personal Account You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 304. goods drawn by the proprietor from the business fro personal use Increase assets andecreases expenses Increases assets and decreases liabilities Increases capital and decreases assets Increases liabilities and decreases assets None of the above. The Correct Answer is : None of the above. You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 305. Interest on drawings Marks: 2+ 0.5Increases expenses and decreases liabilit Increases liability and decreaes capital Increases assets and decreases capital Increases revenues and decreases capital All of the above The Correct Answer is : Increases revenues and decreases capital You did not answer the question.

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Explanation : undefined Module : Module B Chapter : Chapter2 306. Recovery of bad debts previously written off

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Increases revenue and assets Increases expenses and assets Increaes assets and capital Decreaes assets and excpenses Decreases revenue and assets The Correct Answer is : Increases revenue and assets You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 307. Rs. 5,000 received from Ramesh, whose account was previously written off as bad debts, should be credited to Marks: 2+ 0.5Bad Debts a/c Bad Debts Recovered a/c Bad Debts Provision a/c Ramesh a/c None of the above The Correct Answer is : Bad Debts Recovered a/c You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 308. A balance sheet discloses Marks: 2+ 0.5Cash position of the business Financial position of the business Profit earning capacity of the busiess Risk taking capacity of the business All of the above The Correct Answer is : Financial position of the business You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 309. Cost of sales is Rs. 40,000 net sales amount to Rs. 60,000 and Closing stock is valued at Rs. 10,000. The gross profit will be Marks: 2+ 0.5Rs. 10,000 Rs. 20,000 Rs. 30,000 Rs. 40,000 Rs. 40,000 The Correct Answer is : Rs. 20,000 You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 310. If a receipt of rs. 20,000 from Manan (our debtor) has not been recorded in the books, the profit will show Marks: 2+ 0.5An increase of Rs. 20,000

A decrease of rs. 20,000 Neither an increae nor a decrese An increae of Rs. 10,000 A decreae of Rs. 10,000 The Correct Answer is : Neither an increae nor a decrese You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 311. Cash Book recordsMarks: 2+ 0.5all transactions all cash transactions all credit transactions all non-cash transactions None of the above The Correct Answer is : all cash transactions You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 312. Discount column of Cash Book is Marks: balanced totalled either balanced or totalled neither balanced nor totalled sometimes balanced, sometimes totalled The Correct Answer is : totalled You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 313. Cash Book does not recordMarks: 2+ 0.5credit purchased credit sales outstanding expenses accrued income All of the above. The Correct Answer is : All of the above. You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 314. Cash column of the Cash Book always has a debit balance credit balance either debit or credit balance neither debit nor credit balance None of the above. The Correct Answer is : debit balance You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2

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315. Bank column of the Cahs Book has -

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debit balance credit balance either debit or credit balance neither debit or credit balance None of the above. The Correct Answer is : either debit or credit balance You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 316. All credit transactions are recorded at ....side of the cash Book. debit credit either debit or credit neither debit nor credit Noen of the above. The Correct Answer is : neither debit nor credit You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 317. Which of the following is a contra entry? Marks:

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Selling goods for cash Receiving cash from Suresh and allowing him discount Depositing cheque into the bank which was received the same day Depositing cheque into the bank which was received the proviious day All of the above. The Correct Answer is : Depositing cheque into the bank which was received the proviious day You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 318. Petty Cash Book recordsMarks: 2+ 0.5Petty expenses Petty expenses paid in cash all expenses outstanding expenses All of the above. The Correct Answer is : Petty expenses paid in cash You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 319. Which of the following accounts will invariably have a debit balance? Bank Account Current Account of a Partner Accounts Receivables Accounts Payable None of the above. The Correct Answer is : Accounts Receivables You did not answer the question.

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Explanation : undefined Module : Module B Chapter : Chapter2 320. Errors detected before the preparation of trial balance will be rectifiedby opening suspense a/c without opening Suspense a/c by tranferring to Trading a/c by transferring to p&L a/c None of the above The Correct Answer is : without opening Suspense a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 321. Suspense a/c in the trial balance will be entered in theTrading a/c P & L a/c Manufacturing a/c Balance sheet None of the above The Correct Answer is : Balance sheet You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 322. Which one of the following is a true statement ?

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Errors of principle affect the agreement of the trial balance If the two sides of trial balance tally, the books of accounts can be taken as absolutely accurate Errors of commission are commited in those case where proper distinction between revenue and capital items is not made All errors affect the agreement of the trial balance Errors of omission do not affect the agreement of the trial balance The Correct Answer is : Errors of omission do not affect the agreement of the trial balance You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 323. Which one of the following is a false statement ? Marks: 2+ 0.5In case of compensating error, one error neutralises the effect of the other error. Undercasting the purchases book is the error of commission Errors of principle cannot be detected by trial balance Errors of complete omission cannot be detected by trial balance All errors affect the agreement of the trial balance The Correct Answer is : All errors affect the agreement of the trial balance You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 324. A trial balance is aMarks: 2+ 0.5real account personal account

nominal account list of balance of all account list of assets and liablities The Correct Answer is : list of balance of all account You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 325. A trial balance checksMarks: 2+ 0.5honesty of the accountant honesty of the owners arithmethic accuracy of books All of the above None of the above The Correct Answer is : arithmethic accuracy of books You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 326. The following can be detected by preparing a trial balance-

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errors of principle errors of omission errors of commision errors of compensation None of the above The Correct Answer is : None of the above You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 327. In trial balance, an outstanding expenditure account will show adebit balance credit balance sometimes debit and sometimes credit balance only nil balance None of the above The Correct Answer is : credit balance You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 328. Wrong balancing of account isMarks: 2+ 0.5error of principle error of omission error of commission error of compensation None of the above The Correct Answer is : error of commission You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1

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329. Bills Receviable a/c and Bills Payable a/c are a part ofJournal Ledger Trading a/c P&L Balance sheet The Correct Answer is : Ledger You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 330. Bills Receivable Book and bills payable Book are-

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principle Books Subsidiary Books Books containing names and addresses of debtors and creditors Books containing blank forms of bills of exchang None of the above The Correct Answer is : Subsidiary Books You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 331. Retiring a bill under a rebate meansMarks: 2+ 0.5paying the bill on due date paying the bill before due date paying the bill after due date dishonouring the bill accepting a new bill The Correct Answer is : paying the bill before due date You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 332. Rent paid to landlord amounting to Rs.700 was credited to Rent a/c with Rs.7000. In the rectification entry, Rent a/c will be debited withMarks: 2+ 0.5Rs.700 Rs.7000 Rs.6300 Rs.7700 None of the above The Correct Answer is : Rs.7700 You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 333. A watch purchased for Rs.3,000 for the son of a partner, was debited to trade expenses account with Rs.300. The partners drawing account should be debited in the rectifying entry withMarks: 2+ 0.5Rs.300 Rs.2700 Rs.3300 Rs.5700 Rs. 3000

The Correct Answer is : Rs. 3000 You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 334. wages paid for repairs to plant should be debited to-

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wages a/c Repairs a/c plant a/C Cash a/c None of the above The Correct Answer is : Repairs a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 335. Asha's a/c, instead of being debited with Rs. 5,000 has wrongly been credited with Rs.5,000. it should be debited in the rectifying entry withMarks: 2+ 0.5half amount same amount double amount triple amount None of the above The Correct Answer is : double amount You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 336. A firm dealing in furniture debits Furniture a/c on purchasing furniture for cash or on credit. It is an error ofMarks: 2+ 0.5principle omission commission compensation None of the above The Correct Answer is : principle You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 337. Sales to Mohan Rs. 445 posted to his account as Rs.544, would affectCash a/c Sales a/c Mohan a/c All of the above None of the above The Correct Answer is : Mohan a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 338. sales to sohan Rs. 5000 not recorded in the books would affect-

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cash a/c sales a/c sohan a/c Both Cash a/c and Sales a/c Both sales a/c and Sohan's a/c The Correct Answer is : Both sales a/c and Sohan's a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 339. Goods purchased from Mr.X for Rs.10,000 was passed through the sales Books . The rectification of error will Marks: 2+ 0.5increase in gross profit decrease in gross profit no effect on gross profit decrease in balance of Purchases a/c None of the above The Correct Answer is : decrease in gross profit You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 340. A sumof Rs.3,000 written off as bad debts now received, cedited to the debtor oul;d result inMarks: 2+ 0.5increase the net profit by Rs. 3000 decrease the net profit by Rs. 3000 no effect on net profit increase in the balance of debtor's account None of the above The Correct Answer is : decrease the net profit by Rs. 3000 You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 341. Carriage charges paid for a new plant purchased, if debited to carriage a/c would affectMarks: 2+ 0.5-

cash a/c carriage a/c Plant a/c cash a/c and Carriage a/c carriage a/c and plant a/c The Correct Answer is : carriage a/c and plant a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 342. An amount of Rs. 1000 receivedfrom Mr. Sanjay credited to sanjeev's a/c would affectMarks: 2+ 0.5-

sanjay's a/c sanjeev's a/c Cash a/c Both sanjay's a/c and sanjeev's a/c None of the above The Correct Answer is : Both sanjay's a/c and sanjeev's a/c

You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 343. A sale of Rs. 2000 to Mr. X recorded in the Purchases Book would affectPurchases a/c sales a/c Purchases a/c and Cash a/c sales a/c and Cash a/c Purchases a/c, Sales a/c and Mr.X's a/c The Correct Answer is : Purchases a/c, Sales a/c and Mr.X's a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 344. Thye different in the debit and credit side of trial balance is transferred toDifference a/c suspense a/c Capital a/c Profit & loss a/c None of the above The Correct Answer is : suspense a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 345. Bank Reconciliation Statement is -

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A ledger account A Part of cash book with bank column A statement showing the causes of difference between the cash book and the Pass book balances All of the above None of the above. The Correct Answer is : A statement showing the causes of difference between the cash book and the Pass book balances You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 346. Bank Reconciliation Statement may be Prepared with the balance of Marks: 2+ 0.5Cash Book Pass Book Either Cash Book or Pass Book Neither Cash Book nor Pass Book None of the above. The Correct Answer is : Either Cash Book or Pass Book You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 347. The debit balance of Pass Book showsMarks: 2+ 0.5deposit (Plus) balance

overdraft (minus) balance either deposit or overdraft balance neither deposit nor overdraft balance None of the above. The Correct Answer is : overdraft (minus) balance You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 348. Pass Book is Marks: 2+ 0.5a copy of receipts and Payments of the firm a copy of the firm's ledger account maintained by the bank a copy of the banking transactions entered in the Cash Book a record of all transactions a record of withdrawals from the bank. The Correct Answer is : a copy of the firm's ledger account maintained by the bank You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 349. Overdraft facility is available only inMarks: 2+ 0.5Savings Bank Account Current Account Recurring Deposit Account Fixed Deposit Account All of the above. The Correct Answer is : Current Account You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 350. The bank balance is treated as plus (dposit) balance if it is a-

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debit balance of Cash Boook credit balance of Pass Book both (i) and (ii) credit balance of Cash Book debit balance of pass Book. The Correct Answer is : both (i) and (ii) You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 351. Bank column in Cash Book shows a credit balance, What does it mean? there must be un-deposited cash There is overdraft balance There must be some crror in recording Cashier has embezzled cash None of the above. The Correct Answer is : There is overdraft balance You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1

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352. Which one of the following statements is 'true'?

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The balance as shown by the Bank Pass Book and the balance as shown by the bank column of Cash Book are always equal. Cheques issued but no presented will reduce the balance as per Pass Bank. Pass Book is the statement of account maintained by the customer of the bank Favourable balance as per Cash Book means credit balance in the bank column of Cash Book When money is withdrawn from the bank, the Bank debits the Customer's Account. The Correct Answer is : When money is withdrawn from the bank, the Bank debits the Customer's Account. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 353. Which one of the following statements is 'false' Marks: 2+ 0.5Pass Book is the statement of Account of the customer maintained by the bank Cheques sent for collection but not yet collected will result in increasing the balance of the Cash Book The Bank Reconciliation Statement is Prepared to reconcile the balance as shown by Cash Book and the balance as shown by Pass Book Direct collections received by the bank on half of its customer will decrease the balance as per the Cash Book Cheques issued but not presented for payment will increase the balance as Per Pass Book The Correct Answer is : Direct collections received by the bank on half of its customer will decrease the balance as per the Cash Book You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 354. A bank reconciliation statement is prepared to know the causes for the difference betweenMarks: 2+ 0.5the balance as per cash column of the Cash Book and Pass Book the balance as per bank column of the Cash Book and Pass Book both (i) and (ii) neither (i) nor (ii) None of the above. The Correct Answer is : the balance as per bank column of the Cash Book and Pass Book You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 355. A bank reconcilitation statement is Marks: 2+ 0.5Part of Cash Book Part of Bank Book Account A separate statement a separate statement attached to Cash Book None of the above. The Correct Answer is : A separate statement You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 356. A bank reconciliation statement is prepared bybank

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customer of the bank creditors government All of the above. The Correct Answer is : customer of the bank You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 357. A bank reconciliation statement is prepared with the help of-

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bank pass book and bank column of cash book bank pass book cash coumn of cash book bank pass book and petty cash book All of the above None of the above. The Correct Answer is : bank pass book and bank column of cash book You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 358. If you start with the cash book deposit balance in a bank reconciliation statement, which items will you add ? Marks: 2+ 0.5Cheques issued but not yet Presented for Payment Accounts directly deposited by a customer into bank Interest allowed by the bank Inerest charged by the bank (i), (ii), and (iii). The Correct Answer is : (i), (ii), and (iii). You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 359. If you start with cash book deposit balance in a bank reconciliation statement, which item/items will you deduct? Marks: 2+ 0.5Dishonoured cheques Discounted bills dishonoured Dividend on shares collected by bank (i) and (ii) (i) and (ii) The Correct Answer is : (i) and (ii) You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 360. Which one of the following statement is true?

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Normally if Cash Book shows a debit balance, Pass Book also shows a debit balance A credit entry in Pass Book means a credit entry in Cash Book For a dishonoured cheque, bank account is debited. When a customer directly pays into bank, bank Account is debilted. None of the above The Correct Answer is : When a customer directly pays into bank, bank Account is debilted. You did not answer the question. Explanation : undefined

Module : Module C Chapter : Chapter1 361. Which one of the following statements is false?

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Debit balance in Pass Book means overdraft. bank Pass Book is a copy of customer's account in the books of bank For a dishonoured cheque, bank account is debited. A debit entry in Pass Book means a credit entry in Cash Book A bank reconciliation statement is prepared to find out the causes of difference between the balance of Cash Book and Pass Book The Correct Answer is : For a dishonoured cheque, bank account is debited. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 362. The main purpose of preparing a Bank Reconciliation on Statement isMarks: 2+ 0.5to know the Cash Book Balance to know the Pass Book Balance to compare the transactions in the Cash Book and Pass Book to correct the Cash Book to reconcile Balance as Per Cash Book with the Pass Book Balance The Correct Answer is : to reconcile Balance as Per Cash Book with the Pass Book Balance You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 363. Bank Reconciliation Statement is aMarks: 2+ 0.5separate statement ledger account sub-division of journal Part of Cash Book compulsory statement under law The Correct Answer is : separate statement You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 364. Unfavourable bank balance meansMarks:

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debit balance in Cash Book debit balance in Pass Book credit balance in Cash Book credit balance in Pass Book both (ii) and (iii) The Correct Answer is : both (ii) and (iii) You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 365. A cheque received and deposited in the book on the same day is recorded in the
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bank column of Cash Book cash column of Cash Book both (i) and (II)

discount column of Cash Book all the three column of Cash Book The Correct Answer is : bank column of Cash Book You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 366. An amount of Rs. 5,000 is debited twice in the Pass Book. When overdraft balance as Per the Cash Book is the starting PointMarks: 2+ 0.5Rs. 5,000 will be added Rs. 5,000 will be added Rs. 10,000 will be added Rs. 10,000 will be added Rs. 15,000 will be added The Correct Answer is : Rs. 5,000 will be added You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 367. Which one of the following statement is 'true'?

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Pass Book overdraft will be less than Cash Book overdraft if there are cheques deposited but not collected by the bank If the Payment side of the Cash Book is undercast, Cash Book overdraft will be more than the Pass Book overdraft When there are cheques unpresented, favourable balances Per Cash Book will be less than that of the Pass Book When a banker collectes bills and credits the account, Pass Book overdraft shows higher balance than the Cash Book overdrft balance Pass Book is a copy of Cash Book as Prepared by the customer of the bank The Correct Answer is : When there are cheques unpresented, favourable balances Per Cash Book will be less than that of the Pass Book You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 368. Which one of the following statements is 'false'? Marks: 2+ 0.5pass book is a copy of customer's account in the ledger of the bank Normally, if the Pass Book shows credit balance, the Cash Book shows debit balance Unfavourable bank balacne means debit balance in Pass Book and credit balance in Cash Book Unfavouable bank balance means credit balane in Pass Book and debit balance in Cash Book Favourable bank balance means credit balance in Pass Book and debit balance in Cash Book The Correct Answer is : Unfavouable bank balance means credit balane in Pass Book and debit balance in Cash Book You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 369. Goods of Rs. 2,000 returned to Mr. Y, entered in the Sales Book would affect Marks: 2+
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Y's a/c Purchases a/c (Purchase Returns a/c

Sales a/c Purchase Returns a/c and Sales a/c The Correct Answer is : Purchase Returns a/c and Sales a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 370. Debiting Wages a/c for wages paid for the construction of building is -

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error of principle error of omission error of commission compensation error None of the above. The Correct Answer is : error of principle You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 371. a fixed asset purchased on credit has been wrongly recorded in the purchases book. The following rectification entry will be passed Marks: 2+ 0.5debit Purchases a/c / credit Fixed Asset a/c debit Fixed Asset a/c / credit Purchases a/c debit Fixed Asset a/c / credit Supplier's a/c debit Supplier's a/c / credit Fixed Asset a/c debit Purchase a/c / credit Supplier's a/c. The Correct Answer is : debit Fixed Asset a/c / credit Purchases a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 372. An amount spent on the repairs of the building has been debited to building a/c. The following rectification entry will be passedMarks: 2+ 0.5debit building a/c credit Cash a/c debit Building a/c credit Repairs a/c debit Repairs a/c / credit Building a/c debit Repairs a/c / credit Cash a/c debit Cash a/c / credit Repairs a/c The Correct Answer is : debit Repairs a/c / credit Building a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 373. Rs. 5,000 paid as salary to Mr. X- a clerk has been debited to his personal account. The rectification entry will be Marks: 2+ 0.5debit Cash a/c / credit Salary a/c debit Salary a/c / credit Cash a/c debit Mr. X's a/c / credit Cash a/c debit Salary a/c / credit Mr. X's a/c None of the above. The Correct Answer is : debit Salary a/c / credit Mr. X's a/c You did not answer the question. Explanation : undefined

Module : Module C Chapter : Chapter2 374. A sales of old car amounting to Rs. 20,000 has been credited to Sales a/c Pass the rectification entryMarks: 2+ 0.5debit cash and credit car debit car and credit cash debit car and credit sales debit sales and credit car debit slaes and credit cash. The Correct Answer is : debit sales and credit car You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 375. Rs. 5,000 received from A but wrongly credited to B's account. The entry can be corrected as Marks: 2+ 0.5debit cash and credit A debit cash and credit B debit A and credit B debit B and credit A None of the above. The Correct Answer is : debit B and credit A You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 376. Rs. 1,000 was posted to Depreciation a/c as depreciation on furniture but was not posted to Furniture a/c. If total of debit side of the trial balance is Rs. 13,000, what should it be after rectification of error? Marks: 2+ 0.5Rs. 12,000 Rs. 13,000 Rs. 14,000 Rs. 15,000 None of the above. The Correct Answer is : None of the above. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 377. Purchases boo is overcast by Rs. 10,000. The present gross profit is Rs. 90,000. What would be the correct amount of gross profit after rectification of the error? Marks: 2+ 0.5Rs. 80,000 Rs. 90,000 Rs. 1,00,000 Rs. 1,10,000 None of the above. The Correct Answer is : Rs. 1,00,000 You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 378. A sales of Rs. 3,000 to Mr. X has been omitted from recording in the Sales Book. The existing total of debit side of the trial balance is Rs. 2,00,00. What will be the total of credit side, presently? Marks: 2+ 0.5-

Rs 2,03,000 Rs. 1,97,000 Rs. 2,06,000 Rs. 1,94,000 None of the above. The Correct Answer is : Rs. 1,97,000 You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 379. No adjustment entry was passed for an amount of Rs. 500 relating to outstanding salary. The gross profit which is presently Rs. 18,500 will now beMarks: 2+ 0.5Rs. 19,000 Rs. 17,500 Rs. 19,500 Rs. 18,000 No change. The Correct Answer is : No change. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 380. Discount amounting to Rs. 100 allowed by the creditors has been posted to the debit to Discount a/c. By how much amount will the total of credit side of trial balance increase after rectification? Marks: 1+ 0.25Nil Rs. 100 Rs. 200 - Rs. 100 _ Rs. 200. The Correct Answer is : Rs. 200 You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 381. Rs. 140 discount allowed to a customer wrongly credited to Discount a/c, Total of debit side of the trial balance is Rs. 39,280. What should it be after rectification? Marks: 2+ 0.5Rs. 39,340 Rs. 39,420 Rs. 39,560 Rs. 39,400 None of the above. The Correct Answer is : Rs. 39,560 You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 382. Which account is generally prepared for rectification of errors? Adjustment a/c Memorandum a/c Profit & Loss a/c Rectification a/c Suspense a/c

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The Correct Answer is : Suspense a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 383. Errors of principle arise whenMarks:

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there is an omission of transaction there is a commission of transaction wrong amounts are entered in the books transactions are entered in wrong subsidiary books. Proper distinction is not made between capital and revenue items. The Correct Answer is : Proper distinction is not made between capital and revenue items. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 384. Preparation of trial balance helps in detecting the Marks: 2+ 0.5errors of principle errors of omission errors of commission compensation errors clerical errors. The Correct Answer is : clerical errors. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 385. Which one of the following errors will affect the agreement of the trial balance?
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Cash sale of furniture credited to Sales a/c. A sale of Rs. 500 to Mr. Entered in sale Book as Rs. 5,000. Purchase of Rs. 5,000 credited to Charat instead of Bharat. A sales return of Rs. 2,000 correctly entered in the sales Returns Book but posted to the debit side of Seema. None of the above. The Correct Answer is : A sales return of Rs. 2,000 correctly entered in the sales Returns Book but posted to the debit side of Seema. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 386. Goods worth Rs. 1,000 returned by Bhanu were taken into stock, but on entry was passed. This is an error ofMarks: 2+ 0.5calculation compensation commission omission principle The Correct Answer is : omission You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2

387. Which one of the following is an error of principle?

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cash sale of Rs. 200 wrongly entered in Sales Book. Sales of Rs. 200 entered in the books as Rs. 2,000 Purchase of Rs. 2,000 entered in the books as Rs. 200 Purchase transaction entered in Purchases Return Book. Debiting Repairs a/c instead of Furniture a/c The Correct Answer is : Debiting Repairs a/c instead of Furniture a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 388. Which one of the following statements is 'true' ? Marks: 2+ 0.5Revenue expenditure treated as capital expenditure or vice-versa, is an example of error of commission. In Book-Keeping, error are rectified by striking off the wrong figure and replacing it with the correct figure. Entering the wrong amount in the subsidiary books affects the agreement of the trial balance. Every type of error affects the agreement of the trial balance Over-casting and Under-casting of a subsidiary books are the examples of errors of commission. The Correct Answer is : Over-casting and Under-casting of a subsidiary books are the examples of errors of commission. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 389. Which one of the following statements is 'false'? Marks: 2+ 0.5Short debit to an account increases the credit side of the trial balance. Excess debit to an account is rectified by debiting by debiting the amount to the account. Some errors affect the agreement of trial balance while other do not. An error of omission arises due to not writing the transaction in the books. A transaction relating to sale of an asset being entered in Sales Book is an The Correct Answer is : Excess debit to an account is rectified by debiting by debiting the amount to the account. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 390. Select the capital expenditureMarks: 2+ 0.5Carriage paid on goods purchased Legal expenses incurred for abuse of trade mark Payment of compensation to a discharged employee Repairs to motor-car Expenditure incurred on issue of equity shares. The Correct Answer is : Expenditure incurred on issue of equity shares. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 391. An expenditure is a capital expenditure becauseMarks: 2+ 0.5the amount is very large the amount is paid in lump-sum

it is intended to benefit in the current period it is intended to benefit in the future period None of the above. The Correct Answer is : it is intended to benefit in the future period You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 392. An expenditure is a revenue expenditure becauseMarks: 2+ 0.5the amount is very small the amount is paid in instalments it is intended to benefit in the current period it is intended to benefit in the current period None of the above. The Correct Answer is : it is intended to benefit in the current period You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 393. A loss is treated as a capital loss becauseMarks: 2+ 0.5it relates to current assets it relates to fixed assets it arises due to abnormal reasons it reduces profit None of the above. The Correct Answer is : it arises due to abnormal reasons You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 394. Acquisition of fixed assets is an example ofMarks: 2+ 0.5revenue expenditure capital expenditure deferred revenue expenditure All of the above None of the above. The Correct Answer is : capital expenditure You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 395. Maintenance of fixed assets is an example ofrevenue expenditure capital expenditure deferred revenue expenditure All of the above None of the above. The Correct Answer is : revenue expenditure You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3

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396. An expenditure charged to P & L a/c over a period of 3 to 5 years is an example of


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revenue expenditure capital expenditure deferred revenue expenditure all of the above None of the above. The Correct Answer is : deferred revenue expenditure You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 397. An expenditure which helps in increasing the earning capacity of the firm isrevenue expenditure capital expenditure deferred revenue expenditure All of the above None of the above. The Correct Answer is : revenue expenditure You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 398. Construction of building is an example ofrevenue expenditure capital expenditure deferred revenue expenditure All of the above None of the above. The Correct Answer is : capital expenditure You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 399. A loss is treated as capital loss because-

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it arises due to normal reasons it arises due to abnormal reasons it relates to fixed assets it relates to current assets it relates to liabilities. The Correct Answer is : it arises due to abnormal reasons You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 400. Cost of goods purchase for resale is an example ofMarks: Capital expenditure revenue expenditure deferred revenue expenditure All of the above None of the above. The Correct Answer is : revenue expenditure You did not answer the question.

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Explanation : undefined Module : Module C Chapter : Chapter3 401. Which one of the following is a capital item?

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Depreciation on fixed assets Painting of building Advertisement expenses Legal expenses incurred in defending a suit for breach of contract to supply goods. Acquisition of new asset. The Correct Answer is : Acquisition of new asset. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 402. Which one of the following is a revenue item? Marks: 2+ 0.5Expenditure incurred on issue of equity shares Cost of formation of a new company Money raised by issue of preference shares Expenditure incurred for replacing an asset. Depreciation on fixed assets. The Correct Answer is : Depreciation on fixed assets. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 403. An expenditure incurred on shifting the stock to a new site is an example of-

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revenue expenditure capital expenditure deferred revenue expenditure All of the above None of the above. The Correct Answer is : revenue expenditure You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 404. An expenditure on advertisement for furtherance of market for products is an example ofMarks: 2+ 0.5-

revenue expenditure capital expenditure deferred revenue expenditure All of the above None of the above. The Correct Answer is : deferred revenue expenditure You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 405. Expenditure incurred on research and development is an example ofrevenue expenditure capital expenditure deferred revenue expenditure

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All of the above None of the above. The Correct Answer is : deferred revenue expenditure You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 406. Outstanding expenditure on wages and salaries is an example ofrevenue expenditure capital expenditure deferred revenue expenditure All of the above None of the above. The Correct Answer is : revenue expenditure You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 407. A Loss is a revenue loss becauseMarks: 2+ 0.5-

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it arises due to normal operations of business it decreases tax liability It is related to current assets It is related to fixed assets None of the above. The Correct Answer is : it arises due to normal operations of business You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 408. Expenditure incurred as cost of raw-material purchased and meant for processing and resale is an example ofMarks: 2+ 0.5revenue expenditure capital expenditure deferred revenue expenditure All of the above None of the above. The Correct Answer is : revenue expenditure You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 409. Amount paid for acquiring good will is an example ofrevenue expenditure capital expenditure deferred revenue expenditure All of the above None of the above. The Correct Answer is : capital expenditure You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3

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410. A receipt is revenue receipt because-

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it is received in the accounting year the amount is small it relates to routine activity of the business it is received from debtors None of the above. The Correct Answer is : it relates to routine activity of the business You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 411. A receipt is a capital receipt becauseMarks: 2+ 0.5It is received in the accounting year The amount is heavy It is not credited to Capital a/c It relates to availability of long period None of the above The Correct Answer is : It relates to availability of long period You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 412. Incorrect treatment of capital expenditure as revenue expenditure would result in Marks: 2+ 0.5-

Increase in capital and reserves Decrease in capital and reserves Decrease in loss Increase in profits Decrease in profit or increase in losses. The Correct Answer is : Decrease in profit or increase in losses. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 413. Incorrect treatment of revenue expenditure as capital expenditure would result inMarks: 2+ 0.5-

increase in liability increase in losses decrease in profit or increase in losses increase in profit or decrease in losses None of the above. The Correct Answer is : increase in profit or decrease in losses You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 414. a revenue expenditure is intended to benefitMarks: 2+ 0.5past period current period future period both (i) and (ii) both (ii) and (iii) The Correct Answer is :

current period

You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 415. The distinction between capital and revenue is necessary for the preparation ofMarks: 2+ 0.5-

Receipts & Payment a/ only Profit & Loss a/c only Final Account. Cash Flow Statement Funds Flow Statement The Correct Answer is : Final Account. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 416. Premium received on issue of shares is a-

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revenue receipt capital receipt deferred revenue receipt deferred capital receipt None of the above. The Correct Answer is : capital receipt You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 417. Wages paid for erection of machinery must be debited to-

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Wages a/c Machinery a/c Deferred wages a/c Repairs a/c Profit & Loss a/c. The Correct Answer is : Machinery a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 418. An expenses incurred in order to reduce the operating costs, is -

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revenue expenditure Capital expenditure Promotional expenditure Deferred revenue expenditure None of the above. The Correct Answer is : Capital expenditure You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 419. Amount spent on advertisement campaign, the benefit of which is likely to last for 5 years, isMarks: 2+ 0.5revenue expenditure

Capital expenditure Deferred revenue expenditure Deferred capital expenditure None of the above. The Correct Answer is : Deferred revenue expenditure You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 420. Which one of the following statements is 'true'? Marks:

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Loss on sale of fixed assets being capital in nature, should not be debited to P &L a/c An expenditure intended to benefit the current period is capital expenditure. The distinction between capital and revenue items is necessary for the preparation of final accounts. An amount obtained on sale of fixed assets is an example of revenue receipt. An amount spent on re-conditioning of an old vehicle should be debited to repairs a/c. The Correct Answer is : The distinction between capital and revenue items is necessary for the preparation of final accounts. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 421. Which one of the following statements is 'false'? Marks: 2+ 0.5Any expenditure incurred to maintain the assets in the same state of efficiency is revenue expenditure. Heavy expenditure of revenue nature the impact of which is expected to last for more than a year is termed as 'Deferred revenue Expenditure'. Any expenditure which is unreasonably large, is capital expenditure. An amount obtained on sale of fixed assets is an example of revenue receipt. An amount spent on re-conditioning of an old vehicle should be debited to repairs a/c. The Correct Answer is : Any expenditure which is unreasonably large, is capital expenditure. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 422. Which one of the following statements is 'false'? Marks: 2+ 0.5Any expenditure incurred to maintain the assets in the same state of efficiency is revenue expenditure. Heavy expenditure of revenue nature the impact of which is expected to last for more than a year is termed as 'Deferred revenue Expenditure'. Any expenditure which is unreasonably large, is capital expenditure. Loss on sale of fixed assets being capital in nature, should be debited to P & L a/c. Carriage paid on purchase of machinery is an example of capital expenditure. The Correct Answer is : Any expenditure which is unreasonably large, is capital expenditure. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 423. The ascertainment of value of stocks from accounting records is known asMarks: 2+ 0.5Periodic inventory Scientific inventory Perpetual inventory Continuous stock None of the above.

The Correct Answer is : Perpetual inventory You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 424. The system which gives a continues information regarding quantity and value of Inventory, is known asMarks: 2+ 0.5periodic inventory perpetual inventory continuous stock taking FIFO system None of the above. The Correct Answer is : perpetual inventory You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 425. Inventory is valued at cost or net realizable value on account of the accounting principle of Marks: 2+ 0.5Consistency Conservatism Realisation Going concern Accounting period The Correct Answer is : Conservatism You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 426. The test of 'Objectivity' and 'Verifiability' is satisfied by valuing inventory athistorical cost net realizable value current replacement price price adjustment of completion All of the above. The Correct Answer is : historical cost You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 427. Selling expenses are included in inventory valuation bytrading concerns. Process industries Job order industries Public utilities Manufacturing industries. The Correct Answer is : Job order industries You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 428. The value of inventory will be the least in case of-

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Item by item method Aggregate or total inventory method Group or category method All of the above. None of the above. The Correct Answer is : Item by item method You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 429. Historical inventory costs are reduced to net realizable value because of the a accounting principle ofMarks: 2+ 0.5consistency conservatism going concern matching realization. The Correct Answer is : conservatism You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 430. AS-2 recommends the application of lower of cost or net realizable value by taking Marks: 2+ 0.5-

each item group of several items aggregate of all items either (i) or (ii) either (ii) or (iii) The Correct Answer is : either (i) or (ii) You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 431. The cost formula recommended by IAS-2 for valuation of inventories is -

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FIFO or Weighted Average LIFO NIFO or Latest purchase price Standard cost (i) and (ii) The Correct Answer is : FIFO or Weighted Average You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 432. Plantation and farm production is valued at net realizable value because of administrative price the government regulation the absence of cost particulars the difficulty in ascertaining the cost All of the above. The Correct Answer is : the difficulty in ascertaining the cost You did not answer the question.

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Explanation : undefined Module : Module C Chapter : Chapter4 433. Which one of the following statement id 'true'?

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Perpetual inventory and continuons stock taking mean one and the same. Inventory valuation affects only the income statement. Inventories should be valued at the lower of historical cost and current replacement cost. The reduction of historical cost to net realizable value is due to the application of the accounting convention of conservatism. An enterprise is at full liberty to change its policy of stock valuation from time to time to suit its convenience. The Correct Answer is : The reduction of historical cost to net realizable value is due to the application of the accounting convention of conservatism. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 434. Which one of the following statements is 'false'? Marks: 2+ 0.5LIFO method is suitable fro items which are of non-perishable and bulky type. Periodic inventory gives a continuous balance of stock in hand. FIFO method does not correlate the ascertained from accounting records is known as perpetual inventory. The system whereby stock valuation can be ascertained from accounting records is known as perpetual inventory. A major objective of accounting for inventories is the proper determination of inventories of the purpose of financial statements. The Correct Answer is : Periodic inventory gives a continuous balance of stock in hand. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 435. A bill of exchange has Marks: 2+ 0.52 parties 3 parties 4 parties 5 parties any number of parties. The Correct Answer is : 3 parties You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 436. A bill of exchange is drawn bydebtor creditor bank (i) or (ii) None of the above. The Correct Answer is : creditor You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5

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437. Bills Receivable Book and Bills Payable Book are a part ofJournal Ledger Profit & Loss Account Balance Sheet None of the above. The Correct Answer is : Journal You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 438. Bills Receivable Book and Bills Payable Book are-

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Principal books Subsidiary books Books containing blank forms for writing bills of exchange All of the above None of the above. The Correct Answer is : Principal books You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 439. A bill drawn on 1st January 2005 for 4 months, will mature for payment on30th April 2005 1st May 2005 4th May 2005 3rd May 2005 5th May 2005. The Correct Answer is : 4th May 2005 You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 440. A bill of exchange containsMarks:

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a promise to deliver goods a promise to pay money a request to deliver goods a request to make payment an unconditional order. The Correct Answer is : an unconditional order. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 441. Bills Receivable Account and Bills Payable Account arereal accounts Personal accounts Nominal accounts Representative personal accounts Both (ii) and (iii) The Correct Answer is : real accounts You did not answer the question.

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Explanation : undefined Module : Module C Chapter : Chapter5 442. a promissory note is prepared by-

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Buyer Seller Commission Agent Bank Endorsee. The Correct Answer is : Buyer You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 443. On the acceptance of a bill, the acceptor debits-

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Payee's a/c Creditor's a/c Bills payable a/c Bills receivable a/c Bank's a/c The Correct Answer is : Creditor's a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 444. When a bill discounted is dishonoured, the drawer creditsBank a/c Discount a/c Acceptor's a/c Bills Receivable a/c None of the above. The Correct Answer is : Bank a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 445. Noting Charges a/c is debited by-

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the acceptor the drawer the endorser the presenter the discounting banker. The Correct Answer is : the acceptor You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 446. When a bill is endorsed, credit is given toBank's Acceptor's a/c Endorser's a/c

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Bills Receivable a/c None of the above. The Correct Answer is : Bills Receivable a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 447. When a bill endorsed is dishonoured, the drawer credits-

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Bills Receivable a/c Bank a/c Endorser's (Creditor's)a/c Acceptors' a/c Bills Payable a/c. The Correct Answer is : Endorser's (Creditor's)a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 448. On the dishonour of the bill received through endorsement, debit is given toPayee's a/c Acceptor's a/c Endorser's a/c Bills Receivable a/c Bank a/c The Correct Answer is : Endorser's a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 449. Retiring a bill under rebate means-

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dishonouring the bill making payment of the bill after the due date making payment of the bill before the due date making payment of the bill on the due date discounting the bill. The Correct Answer is : making payment of the bill before the due date You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 450. In case of renewal of the bill, interest is calculated for the period oforiginal fresh bill original + fresh bill 3 months 4 months. The Correct Answer is : fresh bill You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 451. In case of renewal of the bill, interest is calculated for the period of-

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Drawing and discounting the bill Discounting and due date Drawing and due date 3 months All of the above. The Correct Answer is : Discounting and due date You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 452. The entry regarding payment of the bill will be passed in the books of the drawer if the bill isMarks: 2+ 0.5retained endorsed discounted retained or sent to bank for collection retained or endorsed. The Correct Answer is : retained or sent to bank for collection You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 453. Nothing charges are paid to the notary public byMarks: 2+ 0.5drawer of the bill endorsee bank either of the above three parties acceptor of the bill The Correct Answer is : either of the above three parties You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 454. For payment of noting charges to the notary publicNoting charges a/c is debited Bank a/c is debited Noting charges a/c is credited Acceptors a/c is credited Cash a/c is credited. The Correct Answer is : Cash a/c is credited. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 455. The payment of Promissory Note is made by itsmaker payee bank Any of above None of above The Correct Answer is : maker You did not answer the question. Explanation : undefined

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Module : Module C Chapter : Chapter5 456. A bill was drawn on 1st January 2005 for six months. The drawee cleared the bill on 4th March 2005. The drawee should be allowed a rebate forMarks: 2+ 0.52 months 3 months 4 months 5 months 6 months. The Correct Answer is : 4 months You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 457. 23. A bill for Rs. 10,000 was dishonoured with Rs. 150 as noting charges. It was renewed with interest of Rs. 250. The amount of the new bill will be Marks: 2+ 0.5Rs. 10,000 Rs. 10,150 Rs. 10,250 Rs. 10,400 Rs. 10,100. The Correct Answer is : Rs. 10,400 You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 458. 24. A is drawer and B is acceptor of the bill. A endorses the bill to C. The bill is dishonoured on due date. A will debitMarks: 2+ 0.5B's a/c C's a/c Bills Receivable a/c Cash a/c None of the above. The Correct Answer is : B's a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 459. A pays Rs. 10,000 to B on maturity of the bill he bad accepted. A will debitB's a/c Cash a/c Bills Receivable a/c Bills Payable a/c None of the above. The Correct Answer is : Bills Payable a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 460. Which one of the following statements is 'true'?

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Bills Receivable a/c is a personal account. Noting charge is an item of expense for the party paying it. An accommodation bill is one which is drawn and accepted without any consideration.

In the case of an accommodation bill, discount is to be borne by the drawer as he discounts the bill. No entry is needed in the case of a bill which is endorsed in favour of a creditor. The Correct Answer is : An accommodation bill is one which is drawn and accepted without any consideration. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 461. Which one of the following statements is 'false' Marks: 2+ 0.5Retiring of a bill is different from dishonour of a bill The journal entries in respect of bills receivable discounted form a bank and of bills receivable sent to the bank for collection, are the same. An accommodation bill is one which is drawn and accepted without any consideration. In the case of an accommodation bill, discount is to be borne by the drawer as he discounts the bill. No entry is needed in the case of a bill which is endorsed in favour of a creditor. The Correct Answer is : The journal entries in respect of bills receivable discounted form a bank and of bills receivable sent to the bank for collection, are the same. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 462. Which one of the following statements is 'false'? Marks: 2+ 0.5Retiring of a bill is different from dishonour of a bill The journal entries in respect of bills receivable discounted form a bank and of bills receivable sent to the bank for collection, are the same. A bill of exchange contains an unconditional order to a certain person to pay a certain sum of money. A bill of exchange payable otherwise than on demand can be made payable to the bearer. No accounting entry is passed in the books of the drawee when a bill receivable is either discounted from the bank or endorsed to some oth The Correct Answer is : The journal entries in respect of bills receivable discounted form a bank and of bills receivable sent to the bank for collection, are the same. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 463. Which one of the following statements is 'true'? Marks: 2+ 0.5A bill received from a debtors is called Bills Receivable. No cancellation entry is required when a bill is renewed. An accommodation bill can be drawn for the benefit of drawer only. Rebate at the time of retirement of a bill is a gain for the drawee. A promissory note can be made payable to the bearer. The Correct Answer is : Rebate at the time of retirement of a bill is a gain for the drawee. You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 464. The relationship between the Consignor and Consignee is that ofMarks: 2+ 0.5Principal and agent Seller and buyer Bailor and bailee

Creditor and debtor None of the above. The Correct Answer is : Principal and agent You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 465. Consignment Account is of the nature of aReal Account Personal Account Representative Personal Account Nominal Account None of the above The Correct Answer is : Nominal Account You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 466. Goods sent on Consignment Account is aReal Account Personal Account Representative Personal Account Nominal Account None of the above. The Correct Answer is : Real Account You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 467. Consignee's Account is a Marks: 2+ 0.5-

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Real Account Personal Account Representative Personal Account Nominal Account None of the above. The Correct Answer is : Personal Account You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 468. When goods are sent on consignment, credit is given to-

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Purchase a/c Consignment a/c (Consignee's a/c Sales a/c Goods sent on Consignment a/c The Correct Answer is : Goods sent on Consignment a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 469. Del Credere Commission is allowed to the consignee to bear-

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normal loss abnormal loss (loss on account of bad debts Loss on account of discount allowed to buyers All of the above. The Correct Answer is : (loss on account of bad debts You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 470. Del credere Commission is calculated on Marks: 2+ 0.5cash sales credit sales total sales credit sales minus cash sales cash sales minus credit sales. The Correct Answer is : total sales You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 471. The normal loss on consignment is credited to-

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Consignor's a/c Consignee's a/c Consignment a/c Profit & Loss a/c None of the above. The Correct Answer is : Consignment a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 472. Abnormal loss of stock after adjusting for recovery from insurance claim, is debited to Marks: 2+ 0.5-

Trading a/c P & L a/c Capital a/c Consignment a/c Consignee's a/c. The Correct Answer is : P & L a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 473. Over-riding commission is calculated oncash sales credit sales total sales credit sales minus cash sales cash sales minus credit sales. The Correct Answer is : total sales You did not answer the question. Explanation : undefined

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Module : Module C Chapter : undefined 474. Account Sales' indicates -

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the net sales effected by the consignee the net amount due by consignee to consignor the net commission due by consignor to consignee All of the above None of the above. The Correct Answer is : the net amount due by consignee to consignor You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 475. On sales being made by the consignee of the goods received by him on consignment, the amount is credited by him toMarks: 2+ 0.5Goods Received on Consignment a/c Purchased a/c Sales a/c Trading a/c Consignor's a/c. The Correct Answer is : Consignor's a/c. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 476. Shradha sends 100 watches to Shubhra at an invoice price of Rs. 1,200 which is cost + 20%. 10 watches are lost in transit and an amount of Rs. 8,000 is received from the insurance company in full settlement. The amount to be credited to Consignment a/c being abnormal loss, is Marks: 2+ 0.5Rs. 2,000 Rs. 8,000 Rs. 10,000 Rs. 12,000 None of the above. The Correct Answer is : Rs. 10,000 You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 477. Which one of the following statements is 'true'?

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'Sales Account' and 'Account Sales' are synonymous terms. Despatch of goods on consignment amounts to sale of goods by the consignor. Abnormal loss of stock arises on account of natural and inherent characteristics of goods. A consignee is paid over-riding commission or bearing the risk of bad debts on amount of credit sales made by him. The consignee passes no entry in his books for unsold stock of the consignor, lying with him. The Correct Answer is : The consignee passes no entry in his books for unsold stock of the consignor, lying with him. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 478. Which one of the following statement is 'false'? Marks: 2+ 0.5-

The relationship between the consignor and consignee is similar to the one between the seller and the buyer. Over-riding commissions is usually paid to the consignee by the consignor for pushing a new product in the market Del Credere Commission is paid to the consignee by the consignor to bear the risk of bad debts. The Consignment Account is in the nature of a nominal account. The cost price of the closing stock is arrived at after including proportionate non-recurring expenses incurred by the consignor and the consignee. The Correct Answer is : The relationship between the consignor and consignee is similar to the one between the seller and the buyer. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 479. Which one of the following statements is 'true'? Marks: 2+ 0.5for calculating the value of abnormal loss of stock, proportionate non-recurring expenses are not considered. Account Sales is the Sales Account in the books of the consignor. Account Sales is a periodical statement rendered by the consignee to the consignor. When goods are sent on consignment, the Consignee's a/c is debited. Abnormal loss arises due to natural causes such as evaporation, drying breaking in bulk, etc. The Correct Answer is : Account Sales is a periodical statement rendered by the consignee to the consignor. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 480. Joint Venture Account is an example ofMarks: 2+ 0.5Real Account Personal Account Representative Personal Account Nominal Account None of the above. The Correct Answer is : Nominal Account You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 481. When goods are purchased for the joint venture, the amount is debited to Purchases a/c Trading a/c Joint venture a/c Joint Venture's Capital a/c None of the above The Correct Answer is : Joint venture a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 482. Joint Venture Account with B' is an example ofReal Account Personal Account Representative Personal Account

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Nominal Account None of the above. The Correct Answer is : Personal Account You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 483. When A advances money to B in the course of joint venture, then A debits such money toMarks: 2+ 0.5-

Joint Venture a/c (Joint Bank a/c B's Personal a/c Expenses a/c Cash a/c. The Correct Answer is : Joint Venture a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 484. Joint Bank a/c is openedMarks: 2+ 0.5When no separate books for the joint venture are maintained When separate books for the joint venture are maintained. When only one joint venturer maintains the account. When all joint venturers maintain the accounts None of the above. The Correct Answer is : When separate books for the joint venture are maintained. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 485. In case of Memorandum Method, when there are three co-venturer, each co-venturer w will open in his books for the venutureMarks: 2+ 0.5one account two account three accounts four accounts five accounts. The Correct Answer is : one account You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 486. Which one of the following statements is true?

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A joint venture business has an indefinite life. Joint venture and partnership are synonymous terms. Principle of 'mutual agency' is applicable in a joint venture. A co-venturer works on commission basis. A joint venture is an example of 'profit seeking terminable venuture'. The Correct Answer is : Principle of 'mutual agency' is applicable in a joint venture. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined

487. Which one of the following statements is 'false'?

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Joint Venture a/c is a nominal account. The opening of a Joint Bank a/c is an indication that separate books are kept for the joint There is no difference between the legal character of partnership and that of joint No accounting entry is passed when the goods are transferred from one venturer to the Persons agreeing to participate in joint venture business are termed as co-venturers. The Correct Answer is : There is no difference between the legal character of partnership and that of joint You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 488. In a lease agreement, there are .. parties.Persons agreeing to participate in joint venture business are termed as co-venturers.Persons agreeing to participate in joint venture business are termed as co-venturers.Persons agreeing to participate in joint venture business are termed as co-venturers.Persons agreeing to participate in joint venture business are termed as co-venturers.Persons agreeing to participate in joint venture business are termed as co-venturers.Persons agreeing to participate in joint venture business are termed as coventurers.Persons agreeing to participate in joint venture business are termed as co-venturers.
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two three four five ten The Correct Answer is : two You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 489. Which one of the following statements is 'true'?

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Under leasing agreement, risk of obsolescence is borne by the lessee Lease rent paid by the lessee is not an expense. In an operating lease, period of lease is much less as compared to the economic life of the asset. Lessor connot claim depreciation on leased asset. Leasing is not a tool of tax planning. The Correct Answer is : In an operating lease, period of lease is much less as compared to the economic life of the asset. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 490. Which one of the following statement is 'false'? Marks: 2+ 0.5Depreciation on asset acquired under hire-purchase system is calculated on the cash price If the hire-buyer fails to pay any instalment, the vendor has a right to seize the goods. 'Here-purchase /stock' and 'Instalments Not Yet Due' are synonymous terms. 'Hire-purchase Trading Account' is prepared in case the goods of small value are the On seizure of the goods by hire-vendor, the hire-buyer transfers the balance of the The Correct Answer is : On seizure of the goods by hire-vendor, the hire-buyer transfers the balance of the You did not answer the question. Explanation : undefined

Module : Module C Chapter : undefined 491. Which one of the following statements is 'true'?

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The ownership of property in goods passes to the hire-buyer as soon as the hire-vendor Interest is calculated on the hire-purchases price at given rate of interest. In hire-purchase system, if rate of interest is not give, the amount of interest is divided equally over all the hire-purchase instalments. Depreciation on asset acquired under hire-Purchase system is calculated on the cash price of the asset. The buyer cannot dispose off goods purchased under Instalment The Correct Answer is : Depreciation on asset acquired under hire-Purchase system is calculated on the cash price of the asset. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 492. Which one of the following statements is 'true'? Marks: 2+ 0.5The buyer can dispose off goods purchased on instalment basis. On default of payment of a an instalment, the seller cannon take back the possession of g good s in hire-purchase system. The buyer has right to terminate the contract in instalment system. Ownership does not pass to the buyer immediately in instalment sale. Hire-Purchase System' and 'Instalment Payment System' are synonymous terms. The Correct Answer is : The buyer can dispose off goods purchased on instalment basis. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 493. In case of hire-purchase, Asset Account is debited withMarks: 1+ 0.25Hire-Purchase price Cost price to the seller Cash price Cost price + interest Cash price - interest. The Correct Answer is : Cash price You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 494. The hire-buyer charges depreciation an-

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Cash price of the asset Hire-Purchase price of the asset Higher of the two. Lower of the tow. Non of the above. The Correct Answer is : Cash price of the asset You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 495. The amount of interest is credited by the hire-buyer toAssets a/c Interest a/c

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Vendor's a/c P & L a/c None of the above. The Correct Answer is : Vendor's a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 496. One seizure of the goods by the hire-vendor, the hire-buyer transfers the balance of the asset account to Marks: 2+ 0.5Goods Returned a/c Profit & Loss a/c Hire Vendor's a/c Trading a/c None of the above. The Correct Answer is : Hire Vendor's a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 497. The cost of goods sold is transferred by the hire-vendor to-

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Purchases a/c Sales a/c Hire-Purchases trading a/c P & L a/c None of the above. The Correct Answer is : Purchases a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 498. In case of sale under the Instalment Payment System, total interest receivable by the s seller is credited to Marks: 1+ 0.25Interest a/c Interest Suspense a/c Sales a/c Trading a/c None of the above. The Correct Answer is : Interest Suspense a/c You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 499. Maintenance Suspense Account for free repairs of asset is opened byBuyer Seller Both of them As agreed between the two None of the above. The Correct Answer is : Seller You did not answer the question. Explanation : undefined

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Module : Module C Chapter : undefined 500. Under hire-purchase system, the asset can be got insured by -

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Buyer Seller Both of them As agreed between the two. None of the above. The Correct Answer is : Seller You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 501. In hire-purchase system, hire-buyer can maintain his accounts under-

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Asset Accrued Method Total Cash Price Method Any of the two methods As required by the seller None of the above. The Correct Answer is : Any of the two methods You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 502. If rate of the interest is not given, but amount of instalments are equal and periods of instalments are also equal, the amount of interest included in the instalments is calculated byMarks: 2+ 0.5-

Inverse Reatio Method Products Method Annuity Method All of the above None of the above The Correct Answer is : Inverse Reatio Method You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 503. Under the Hire-Purchase System, the buyer becomes the owner of goods-

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immediately after the delivery of goods. Immediately after the down payment Immediately after the signing of the agreement Immediately after the payment of the first instalment Immediately after the payment of the last instalment. The Correct Answer is : Immediately after the payment of the last instalment. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 504. 17. Under the Instalment Payment System of Purchase, Interest Suspense a/c in the books of the buyer is Marks: 2+ 0.5debited with the interest payable in respect of instalments due. Debited with the interest payable in respect of instalments not due. Debited with the difference between total instalment price and cash price.

Credited with the difference between the total instlament price and cash price. None of the above. The Correct Answer is : Debited with the difference between total instalment price and cash price. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 505. Stock out on the hire at cost price is ascertained byMarks: 2+ 0.5taking the cost in the proportion of paid instalments to total intalments taking the cost in the proportion of value of unpaid instalments to hire-purchase price deducting the gross profit margin from instalment not due the unpaid. All of the above None of the above. The Correct Answer is : deducting the gross profit margin from instalment not due the unpaid. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 506. Which one of the following statements is 'true'? Marks: 2+ 0.5The Income & Expenditure Account does not make a difference between capital and r A heavy cash balance in the Receipts and Payments Account at the end of the Income & Expenditure Account records all incomes and expenses received or paid during Receipts & Payment account is a nominal account. Income & Expenditure Account is a real account. The Correct Answer is : A heavy cash balance in the Receipts and Payments Account at the end of the You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 507. Which one of the following statements is 'false'? Marks: 2+ 0.5Receipts & Payments Account starts with an opening balance. Receipts & Payment Account is a real Account. Income & Expenditure Account is a nominal account Receipts & Payment Account is a personal account. A non-trading institution also prepares its final accounts. The Correct Answer is : Receipts & Payment Account is a personal account. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 508. Amount received from the sale of scrap by a club is treated asMarks: 2+ 0.5an income an expense an asset a liability None of the above. The Correct Answer is : an income You did not answer the question. Explanation : undefined

Module : Module C Chapter : undefined 509. Subscription received in advance during the current year isan expense an income an outstanding expenditure an accrued income a liability. The Correct Answer is : a liability. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 510. Life membership fee received by a non-trading institution isan expense an income an asset an accrued income a liability. The Correct Answer is : a liability. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 511. Tournament expenses of the sports club are-

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recorded as assets recorded as deferred revenue expenditure posted as expenditure recorded as liability deducted from tournament fund at the liabilities side a balance sheet. The Correct Answer is : deducted from tournament fund at the liabilities side a balance sheet. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 512. Receipts & Payment Accounts is aMarks: 2+ 0.5Personal account Real account Nominal account Either Real Account or Personal Account Either Real Account or Nominal Account The Correct Answer is : Real account You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 513. Income & Expenditure account is a Real account Personal account Nominal account Either Real Account or Personal Account Either Real Account or Nominal Account.

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The Correct Answer is : Nominal account You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 514. Income & Expenditure Account is prepared by-

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trading institutions manufacturing industry banks non-trading institution all institutions. The Correct Answer is : non-trading institution You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 515. Subscription outstanding of a club during the previous year was Rs. 20,000 and received During the current year Rs. 2,40,000. Subscription shown in the credit side of income & Expenditure a/c will beMarks: 2+ 0.5Rs. 20,000 Rs. 2,20,000 Rs. 1,80,000 Rs. 2,40,000 Rs. 2,60,000 The Correct Answer is : Rs. 2,20,000 You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 516. The Credit balance in an income & Expenditure a/c indicates -

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the excess of expenditure over income the excess of income over expenditure the excess of cash receipts over cash payments the excess of cash payments over cash receipts None of the above. The Correct Answer is : the excess of income over expenditure You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 517. Which one of the following items should not be entered in Receipts and Payment a/c of a Non-trading organization? Marks: 2+ 0.5Sales of old newspapers and magazines Expenses paid for the previous year Loss on sale of old furniture. Subscriptions received in advance Donation received for the current year. The Correct Answer is : Loss on sale of old furniture. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined

518. Which one of the following items will not appear in the Balance Sheet of non-trading Organization. Marks: 2+ 0.5Donations received during the year Subscription received in advance Entrance fee paid by the new members Subscriptions relating to previous years received during the year All of the above. The Correct Answer is : Entrance fee paid by the new members You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 519. An income arising from special fund of a club will be shown in the-

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Special fund in the Balance Sheet Credit side of Income & Expenditure a/c Special fund in the Balance Sheet (i) and (iii) (i) and (iii) The Correct Answer is : Special fund in the Balance Sheet You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 520. The Income & Expenditure a/c of a club shows subscriptions of Rs. 50,000. Subscriptions Accrued at the beginning of the year are Rs. 5,000 and subscriptions accrued at the end of the year are Rs. 7,500. The amount that figures in Receipts & Payment a/c under the head 'Subscriptions' will beMarks: 2+ 0.5Rs. 42,500 Rs. 47,500. Rs. 50,000. Rs. 55,000. Rs. 57,500. The Correct Answer is : Rs. 47,500. You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 521. In a club, amount received fro special fund is Rs. 17,000 and expenditure incurred from The fund is Rs. 9,000. the amount to be credited to Income & Expenditure a/c would be
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Nil Rs. 8,000 Rs. 9,000 Rs. 17,000 Rs. 26,000. The Correct Answer is : Nil You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 522. The Receipts & Payment a/c of a cricket club shows the following details -Subscriptions : Current received Rs. 21,000 Arrears received Rs. 1,000 Advance received Rs. 1,600There are 12,000 members each of them paying an annual subscription of Rs. 20. The amount to be credited to Income & Expenditure a/c will beMarks: 2+ 0.5-

Rs. 21,600 Rs. 22,600 Rs. 23,600 Rs. 24,000 Rs. 25,000 The Correct Answer is : Rs. 24,000 You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 523. Stock of stationery of a club on 1st January 2005 Rs. 3,000; Creditors for stationery on 31st December 2005 Rs. 2,000; Opening balance of creditors for stationery Rs. 3,000; Payment for stationery during the year 2005 Rs.14,000; Stock of stationery on 31st December 2005 Rs. 2,000. The amount to be charged for stationery to the income & Expen Marks: 2+ 0.5Rs. 13,000 Rs. 14,000 Rs. 15,000 Rs. 16,000 Rs. 17,000. The Correct Answer is : Rs. 14,000 You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 524. Discount on issue of shares is a-

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revenue loss capital loss deferred revenue expenditure. revenue and capital loss both. Non of the above. The Correct Answer is : capital loss You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 525. call paid in Advance Account is shown separately in-

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assets side of Balance sheet liabilities side of balance sheet debit side of P&L a/c credit side p&L a/c debit side of Trading a/c The Correct Answer is : liabilities side of balance sheet You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 526. Interest @ ... is charged on calls in arrear according to Table 'a' of the Companies Act.
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3% 5% 6% 9% 12%

The Correct Answer is : 6% You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 527. The rate of discount on share cannot execeed3% 5% 6% 10% 12% The Correct Answer is : 10% You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 528. Capital Reserve is formed if shares areP & L a/c Share Capital a/c Capital Reserve. Goodwill a/c General Reserve The Correct Answer is : Capital Reserve. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 529. Capital Resrve is formed ifshares are-

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issued forfeited forfeited and re-issued All of the above None of the above The Correct Answer is : forfeited and re-issued You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 530. Discount on re-issue of forfeited shares should not exceed-

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6% of the subscribed capital 12% of the re-issued capital. 10% of the authorised capital 9% of the paid up capital the amount received so far on forfeited shares. The Correct Answer is : the amount received so far on forfeited shares. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 531. Preference Shareholders have a prefrence as regardsMarks: 2+ 0.5dividend intrest

commision refund of capital divident and refund of capital . The Correct Answer is : divident and refund of capital . You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 532. Calls money on shares should not exceed .....of the face value of the share.

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1/2 1/3 1/4 1/5 1/6 The Correct Answer is : 1/4 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 533. A company had issued and received share capital of shares (face value RS.10) and called application@ Rs5/- and allotment money Rs 5-/ Holders of 200 shares failed to pay the allotment money.What amont will the company forfeit? Marks: 2+ 0.5Rs.500 Rs1,000 Rs2,000 Rs 10.000 Rs20,000 The Correct Answer is : Rs1,000 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 534. A company issues 3,00,000 share of Rs10 each at discount of Rs1 per share.what will be the amount of paid up capital? Marks: 2+ 0.5Rs3,00,000 Rs.2,70,000 Rs.30,00,000 Rs. 27,00,000 None of the above. The Correct Answer is : Rs.30,00,000 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 535. A company issues3,00,000 share of Rs. 10 each at a prmium of Rs. 2 per share. What will be the amount of paid up capital? Marks: 2+ 0.5Rs. 30,00,000 Rs. 6,00,000 Rs. 36,00,000 Rs. 24,00,000 None of the above The Correct Answer is : Rs. 30,00,000 You did not answer the question.

Explanation : undefined Module : Module D Chapter : Chapter1 536. A company came out with a public issue of 1,00,00 shares of Rs. 10 each and called Rs. 4 on allotment . What will be the balance in shares Forfeited a/c? Marks: 2+ 0.5Rs.10,000 Rs.15,000 Rs.20,000 Rs.25,000 Non of the above The Correct Answer is : Rs.10,000 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 537. Which one of the following statements is true?

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Share Premium amount can distributes as dividend amongst the shareholders. In the very first year of working of the company shares can be issued at a discount. Capital Redemption Reserve can be utilise for payment of dividend. Court permission is not required for isssur of shares at a discount. If calls on shares are not received, company can forfeit these shares. The Correct Answer is : If calls on shares are not received, company can forfeit these shares. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 538. Which one of the following statements is false? Marks: 2+ 0.5Shares of a limited company can be classified into preference and equity shares. prefrence shares enjoy prefrence as to divided and repayment of capital over equity shares. Paid up capital is the amount with which the company is formed . Capital subscribeed by the public is called subscriberd capital. Issue of non-voting shares must be authorised by Articales of Association of the company. The Correct Answer is : Paid up capital is the amount with which the company is formed . You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 539. The main object of permitting the company to issue non-voting equity shares is-Marks: 2+ 0.5-

to give higher dividend to give perference on re-payment to raise resources without losing management control All of the above Non of the above. The Correct Answer is : to raise resources without losing management control You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 540. Which one of the following conditions is 'fase' reference to issue of non-voting equity share? Marks: 2+ 0.5For issue of non- voting shares, a special resolution must be passed at the general body

meeting . Holders of non-voting equity share are entitled to all right including bonus shares but do not enjoy voting rights. Only public company limited by share can issues non-voting equity shares Only public company limited by shares can issue non-voting equity shares. No company will be permitted to convert shares with voting rights into the shares withought voting right.. The Correct Answer is : Only public company limited by share can issues non-voting equity shares You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 541. If a share of Rs 100 ,on which Rs 60 have been paid ,is forefeited , it can be re-issued at the minimum price ofMarks: 2+ 0.5Rs 40 Rs.60 Rs.100 Rs.140 Rs.160 The Correct Answer is : Rs 40 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 542. If the preference share capital of Rs1,00,000 is to be redeemed, and for this 5.000 equity share of Rs . 10 each have been issued at discount of10%,the amount to be transferred to capital redemtion /Reserve will beIf the preference share capital of Rs1,00,000 is to be redeemed, and for this 5,000 equity shares of rs. 10 each have been issued at a discount of 10% , the amount to be transferred to Capital Redemption Reserve will be.Marks: 2+ 0.5Rs.45,000. Rs.50,000. Rs.55,000 Rs.60,000 Rs.5,000 The Correct Answer is : Rs.55,000 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 543. Which one of the following is a 'false ' circumstance with reference to issue of bonuse shares? Marks: 2+ 0.5A company can issue shares if its articals of association so provide Sanction of Controller of Capital Issues is Not required for issue of bonus shares. Bonus shares can be isued when the company has good profits but does not have sufficient cash resources to pay. Bonus shares can be issuied when the company wishes to builed up reserves for expantion or for repayment of long -term liabilities. Bonus shares can be issued when the company whishes to utilise certain reserves ,like share premium,Capital Reserve, etc. The Correct Answer is : Sanction of Controller of Capital Issues is Not required for issue of bonus shares. You did not answer the question. Explanation : undefined

Module : Module D Chapter : Chapter1 544. The difference between subscribed capital and called -up capital is called.paid up capital uncalled capital. calls in advance calls in arrear authorised capital. The Correct Answer is : uncalled capital. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 545. When shares are forfeited, the Share Capital a/c is debited bycalled up amount paid up amount call in arrear calls received in advance nominal value of such shares The Correct Answer is : called up amount You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 546. Premium received on issue of shares can be used for-

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Redemption of debentures paying fees for auditors paying fees for directors writing off preliminary expenses All ofthe above. The Correct Answer is : writing off preliminary expenses You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 547. The profit on re-issue of forfeited shares is transferred to Capital Redemption Reserve Devlopment Fund Profit & Loss a/c Capital Reserve General Reserve The Correct Answer is : Capital Reserve You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 548. Rights shares mean the shares which are -

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issued to directors of the company issuied for a consideration other than cash offered to the exiting shareholders issuied to holders of convertible debentures issuied to promoters of the company for thier services. The Correct Answer is : offered to the exiting shareholders

You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 549. Unless otherwise stand,a preference shre is alway deemed to be-

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Cumulative, participating and non-convertible Non-cumulative, participating and non-convertible cumulative, non-participating and non-convertible Non-cumulative, non participating and non-nonconvertible cumulative, participating and convertible. The Correct Answer is : cumulative, non-participating and non-convertible You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 550. A company issuied shares of Rs 100 each on which Rs 80 per share is called up.Ashareholder has not paid the call Rs . 20 per share on 100 shares .The amount credited to share capital in respect of him will be.Marks: 2+ 0.5Rs,2,000 Rs.6,000 Rs.8,000 Rs.10,000 Rs.12,000 The Correct Answer is : Rs.8,000 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 551. An equity share of Rs 100 on Which Rs. 100 on which Rs. 80 is called up, is forfeited for non-payment of the first call of Rs,20 per share . If the share is to be re-issuied as fully paid up , the minimum amount to be collected will be Marks: 2+ 0.5Rs.20 Rs.40 Rs.60 Rs.80 Rs.100 The Correct Answer is : Rs.40 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 552. 100 shares of Rs10 each of which Rs 8 per share is called up, are forfeited for non payment of first call of Rs2 per Share. Of these shares, 60 were re- issued at Rs. per share. The amount to be transferred to Capital Reserve, will be.Marks: 2+ 0.5Rs.120 Rs.240 Rs.360 Rs.480` Rs.600 The Correct Answer is : Rs.240 You did not answer the question. Explanation : undefined

Module : Module D Chapter : Chapter1 553. ...Is called the Charter of the company.

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Memoradum of Association Articles of Association prospectus List of members All of the above. The Correct Answer is : Memoradum of Association You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 554. A. private company has to provide in its Articals ofassociationfor permitting free transfer of its shares for prohibiting transfer of its shares for restring transfer of its shares for all of the above. for non of the above The Correct Answer is : for restring transfer of its shares You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 555. Rgisterred Company are formed underMarks: 2+ 0.5for Partenership Act the Companies Act an act passed by the parliament international law Non of the above. The Correct Answer is : the Companies Act You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 556. A company comes into existence when it gets the certificate of

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incorporation commencomg the business Pollution department income-tax department non of the above The Correct Answer is : incorporation You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 557. A document inviting deposit from the or inviting offers from the public to subscribe for the shares and debentures of a company is termed asMarks: 2+ 0.5Memorandum of Association Articles of Association Minutes Book Register of charges prespectus

The Correct Answer is : prespectus You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 558. Which one of the following statements is false

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A private company restricts the right of its members to tranfers shares A private company limits the number of members to fifty A private company prohibits any invitation to the public to subscribe for its share or debentures A private company may be registered with only two members A private company is required to write only Ltd at the end of its name The Correct Answer is : A private company is required to write only Ltd at the end of its name You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 559. A government company is one whose ....of the paid up share capital is held by the Central Govt. or by ttwo or more of them together. Marks: 2+ 0.550% 51% not less than 51% 75% 100% The Correct Answer is : not less than 51% You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 560. A company which is incorporated out side India but which has a place of business in india , is termed as/anMarks: 2+ 0.5Statutory Company Indian Company Foreign Company Holding Company Subsidiary Company The Correct Answer is : Foreign Company You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 561. Which one of the following statments is true

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Partnership is are relationship between two persons only Liability of partners is always limited . A company does not have a perpectual succe sion. The common scal is affixed on all important documents and contracts of the company The maximum number of members of is 50 in case ofa public company . The Correct Answer is : The common scal is affixed on all important documents and contracts of the company You did not answer the question. Explanation : undefined

Module : Module D Chapter : Chapter1 562. which oneof the following statements is false?

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shareholders liability is limited in case of a public company . shares are not freely transferable in a private limited company . The minimum number of members is 7 and maximum unlimited in caseof a public company . A company incorporated by a special Act of Parliament is called a statutory company. Minimum number of directors in private company is three. The Correct Answer is : Minimum number of directors in private company is three. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 563. Shareholders getMarks: 2+ 0.5fees commission interest dividend royalty The Correct Answer is : dividend You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 564. share Allotment Account is -

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Real Account Personal Account Nominal Account Asset Account None of the above. The Correct Answer is : Personal Account You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 565. Premium received on issue of shares is shown inassets side of Balance Sheet liabilities side of balance sheet debit side of P & L a/c credit side of P & L a/c credit side of cash Account The Correct Answer is : liabilities side of balance sheet You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 566. Disccount allowed on issue of shares is shown in assects side of Balance sheet liabilities side of Balance sheet credit side of P & L a/c credit side of p&L a/c. debit side of share capital a/c. The Correct Answer is : assects side of Balance sheet

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You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 567. Overdraft facility is given by the bank only to such customer who already has------Marks: 2+ 0.5-

Saving bank a/c Fixed Deposit a/c Recurring a/c Current a/c Any of the above The Correct Answer is : Current a/c You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 568. In the new formats of final accounts of a bank, Balance Sheet consist of Schedule No1 to------- and profit &loss a/c from Schedule No. 13 to---------Marks: 2+ 0.55:16 7:16 12:16 10;14 6:12 The Correct Answer is : 12:16 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 569. Claims against the bank not acknowledged debt is a contingent liability and is shown in Schedule No-------- of the balance sheet. Marks: 2+ 0.55 7 12 15 16 The Correct Answer is : 12 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 570. Non -banking asset acquired in satisfaction of claims are shown under Schedule No 11 bearing the heading-----Marks: 2+ 0.5Other Asset Non banking Asset Advances Investments Money at Call and Short Notice. The Correct Answer is : Other Asset You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1

571. When the report of bad financial position of a customer is recived , the bank for the interest due, debits Customer's a/c and credits Marks: 2+ 0.5Interest a/c Interest Suspense a/c Oustanding Interest a/c Accrued Interest a/c None of the above The Correct Answer is : Interest Suspense a/c You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 572. Which one of the following statements is ' true'

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State Bank of India is not a nationalised bank Schedule No.9 10 11 and 12 are shown in profit & loss Account of a bank. Rebate on bills discounted is the discount recived by bank in the previous year. Two or more persons cannot take a joint loan from a bank. Bank's advanced include loans,cash credits, overdrafts,and discounting and purchase of bills. The Correct Answer is : Bank's advanced include loans,cash credits, overdrafts,and discounting and purchase of bills. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 573. Which one of the following statements is 'false' Marks: 2+ 0.5A bank must at least 20% of net profits of the year prior to declaration of dividend to statutory reserve , unless the central government condones this binding. slip system in a bank is not a diffrent accounting system but a method of rapid posting it. the books of account. Schedule 6 deals with ' Other liabilities and Provision' of a bank . State Bank of india is a nationalised bank. Non -banking assets are the tangible assetes which a bank recovers as a claim against nonpayment of its advances. The Correct Answer is : Schedule 6 deals with ' Other liabilities and Provision' of a bank . You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 574. Banks prepare their accounts for the Marks: 2+ 0.5Calender Year Financial Year Assessment Year Diwali Year Co-operative Year. The Correct Answer is : Financial Year You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 575. For a bank, Rebate on bills discounted is an item of---an income an expenditure an accrued income

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an income recived in Advance an asset The Correct Answer is : an income recived in Advance You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 576. The heading 'Other Assets'does not include. Marks: Gold Silver Interest accured inter- branch adjustments (Dr) All of the above The Correct Answer is : Gold You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 577. A non - banking asset is Marks:

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Furniture, Fixture and Fittings Office equipment money at call and short notice an asset acquired from the debtors in satisfaction of claims against them None of the above The Correct Answer is : an asset acquired from the debtors in satisfaction of claims against them You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 578. When income of a bank is to be recognised on cash basis, a distinction must be made between. Marks: 2+ 0.5Current and non -current assets Banking and non banking assets Monetary and non monetary assets Performing and non- performing assets Tangible and intengible assets The Correct Answer is : Performing and non- performing assets You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 579. A non - performing asset of a bank is Marks: 2+ 0.5cash balance cash balance with RBI Monetary at call and short notice An asset which cases to generate income none of the above The Correct Answer is : An asset which cases to generate income You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1

580. Banks show the provision for Income tax under the head deposit Borrowings Contigent liability Contigency Accounts Other Liabilities and provision The Correct Answer is : Other Liabilities and provision You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 581. ......... is Peculiar of banking company accounts. Marks:

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A.T.M. Bank Draft. Cheque Book. Fixed Deposit. The Correct Answer is : Cheque Book. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 582. The various item of assets in the Balance Sheet of banking company are arranged in order of---------Marks: 2+ 0.5liquidity permanency tangibility floating any order, The Correct Answer is : liquidity You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 583. bills Recivables being Bills for collection appear on -------- side of Balance sheet of banking company. Marks: 2+ 0.5only asset side only liabilities side both sides sometimes on asset side and sometimes on liability side. in one year on asset side and next year liabilities side. The Correct Answer is : both sides You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 584. Rebate on bills discounted for a banking company is---an expense an income a banking asset a liability a non -banking asset. The Correct Answer is : a liability You did not answer the question.

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Explanation : undefined Module : Module D Chapter : Chapter1 585. A non -banking asset must be disposed of by the banking company within -------Marks: 2+ 0.5-

two years five years seven years one years ten years The Correct Answer is : seven years You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 586. The formats of the profit & loss Account and balance sheet in the case of a banking company have been revised w.e.f. Marks: 2+ 0.51st April 1949 1st April 1991 1st April 1992 1st April 2000 1st April 2004 The Correct Answer is : 1st April 1991 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 587. This item is not included in schedule 13 of profit & loss Account of a bank. income on investment interest on advances intrest on borrowings from R.B.I all of the above None of the above The Correct Answer is : interest on advances You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 588. The regulation of banks in india before 1936 was done

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under indian Banking Companies Act Under Banking Regulation Act Under Companies act All of the above None of the Above. The Correct Answer is : Under Companies act You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 589. Fourteen major banks were nationalised in the year -------1969 1971

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1973 1993 2000 The Correct Answer is : 1969 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 590. in the amended formats of final accounts of a bank, the number of total schedules prescribed are----------Marks: 2+ 0.58 10 12 16 20 The Correct Answer is : 16 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 591. Indian Banking companies Act 1949 was changed in 1966 with the new name of -------------Marks: 2+ 0.5Indian banking Regulation Act, 1949 Indian banking Regulation Act, 1966 Indian banking companies Act, 1966 Indian Banking Act , 1966 Banking in india Act , 1966 The Correct Answer is : Indian banking Regulation Act, 1949 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 592. The rate as percentage of net profits of Statutory Reserve to be maintained by a bank under Sec.17 of Indian Banking Regulation Act , 1949, is--------Marks: 2+ 0.510% 15% 20% 25% 30% The Correct Answer is : 20% You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 593. In a banking company, intrest on doubtful debts is credited to--------customer's a/c Interest Suspense a/c. Interest a/c. Accrued Interest a/c Oustanding Interest a/c. The Correct Answer is : Interest Suspense a/c. You did not answer the question. Explanation : undefined

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Module : Module D Chapter : Chapter1 594. When Customer get a bill discounted, the bank debits Bills Discounted a/c and credits------Marks: 2+ 0.5customer a/c Interest Suspense a/c Interest a/c accrued Interest a/c Oustanding Interest a/c. The Correct Answer is : customer a/c You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 595. A and B are partners in the ratio of 5 : 3. They admit C for 1/4th share which he acquires 3/4th from A and 1/4th from B. C pays Rs. 20,000 for his share of goodwill. A and B will be credited by Rs...... and Rs...... , respectivelyMarks: 2+ 0.5Rs. 5,000: Rs; 15,000 Rs. 10,000; Rs. 10,000 Rs. 15,000; Rs. 5,000 Rs. 12,000; Rs. 8,000 Rs. 8,000; Rs. 12,000 The Correct Answer is : Rs. 15,000; Rs. 5,000 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 596. A and B are partners sharing profits in 6 : 3. C is admitted for 1/4th and ratio of A and I will be .... and the new ratio of all the partners will be.... Marks: 2+ 0.52 : 3; 15 : 8 : 9 3 : 5; 15 : 8 : 9 5 : 3; 9 : 8 : 15 5 : 3; 15 : 9 : 8 3: 5; 15 : 9 : 8 The Correct Answer is : 5 : 3; 15 : 9 : 8 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 597. On the incoming of new partner, assetsand liabilities of the firm are revalued for theMarks: 2+ 0.5-

benefit of the new partner benefit of the old patners benefit of the old partners who are sacrificing benefit of the of new and the old partners All of the above The Correct Answer is : benefit of the of new and the old partners You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 598. Revaluation of goodwill must be effected throughMarks: 2+ 0.5Revaluation a/c

Realisation a/c Partners' Capital a/cs P & L a/c P & L Appropriation a/c. The Correct Answer is : Partners' Capital a/cs You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 599. On the admission of a new partner, the balances of reserves abd accumulated profits transferred toMarks: 2+ 0.5old partners in th old ratio old partnersin the new ratio old partners in the sacrificing ratio old partners in the capital ratio old and new partners in the new ratio The Correct Answer is : old partners in th old ratio You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 600. A is admitted as a new partner and agress to pay Rs. 12,000 as premium/goodwill, but brings only Rs. 10,000 in cash. The balance of Rs. 2,000 must be debited toMarks: 2+ 0.5A's Capital a/c A's Current a/c A's Loan a/c Revaluation a/c Goodwill a/c. The Correct Answer is : A's Current a/c You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 601. The sum of the shares sacrificed by old partners in favour of the new partner, is equal toMarks: 2+ 0.5-

the total share of the firm the share given to the new partner the share retained by the old partners the share given to new partner less the share gained by the old partners None of the above. The Correct Answer is : the share given to the new partner You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 602. A and B are partners sharing profits and losses in the ratio of 2 : 3. They admit C into the firm giving him 25% share. If C brings in Rs 30,000 as his share of capital and capitals are to be kept in the profit sharing ratio, B's capital should beMarks: 2+ 0.5Rs. 36,000 Rs. 45,000 Rs. 48,000 Rs. 54,000 Rs. 60,000 The Correct Answer is :

Rs. 54,000

You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 603. A and B are partners in th ratio of 4 : 3. They admit C who brings in Rs. 35,000 towards goodwil . The new profit sharing ratio is 3 : 3 : 2. A will getMarks: 2+ 0.5Rs. 15,000 Rs. 20,000 Rs. 27,000 Rs. 30,000 Rs. 35,000 The Correct Answer is : Rs. 27,000 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 604. A and B are partners in the ratio of 4 : 1. They admit C into partnership and decid to share the profit equally in the new firm. C pays for premium/goodwill Rs. 30,000. In the connectionMarks: 2+ 0.5-

A and B will receive Rs. 15,000 eacg. A will receive Rs. 24,000 and B RS. 6,000. A will receive the entire Rs. 30,000. B will receive the entire Rs. 30,000 A will receive Rs. 42,000 and B will pay Rs. 1: 000. Hint. Sacrifice Ratio = Old Ratio-New Ratio Gaining Ratio = New Ratio -Old Ratio A's scrifice =4/5-1/3=7/15 P's gain =1/3 /5=2/15 C pay for goodwill for 1/3 ratio = Rs. 30,000 Therefore, for 1 it will be 30,000 X 3/1 therefor, for/15th gain, it will be 30,000 X 3/1X2/15= Rs. 12,000 Thus, B wil pay Rs. 12,000, C will pay Rs. 30,000 and A will receive 12,00+30,000=Rs. 42,000 The Correct Answer is : A will receive Rs. 42,000 and B will pay Rs. 1: 000. Hint. Sacrifice Ratio = Old Ratio-New Ratio Gaining Ratio = New Ratio -Old Ratio A's scrifice =4/5-1/3=7/15 P's gain =1/3 /5=2/15 C pay for goodwill for 1/3 ratio = Rs. 30,000 Therefore, for 1 it will be 30,000 X 3/1 therefor, for/15th gain, it will be 30,000 X 3/1X2/15= Rs. 12,000 Thus, B wil pay Rs. 12,000, C will pay Rs. 30,000 and A will receive 12,00+30,000=Rs. 42,000 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 605. A and B are partners sharing profits in the ratio 2 : 1. They adnut C as a partner for onethird share which he receives equally from A and B. The newprofit sharing ratio will beMarks: 2+ 0.5-

2:3:4 3:2:4 4:2:3 4:3:2 2 : 4 : 3. The Correct Answer is : 4:2:3 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 606. Which one of the following statements is true ?

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When a new partner is admitted, he gets a part of the acumulated profits of the firm according to his profit sharing ratio. On admission of a new partner, profit or loss on revaluation is transferred to the old

partner's capital accounts in their new ratio. Recaluation a/c' is also known as 'P & L Adjustment a/c'. When, on incoming of a new partner goodwill is inreased under revaluation method, the goodwill is distrubuted among old partners in their new ratio. New and sacfifice ratios are the same. The Correct Answer is : Recaluation a/c' is also known as 'P & L Adjustment a/c'. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 607. Which one of the following statements is false ? Marks: 2+ 0.5The amount of goodwill brought in by the new partner is distrubuted amongst the old partners in their sacrifice ratio. When Goodwill a/c appears in the books at proper value, the new partner has to pay proportionate amount by way of goodwill, to the old partners. In case Memorandum Revaluation Account is opened, the assest and liabilities appear the new Balance Sheet at their old values. The amount of goodwill credited to the old partner on admission of a new partner, may be withdrawn by them in any proportion. On admission of a new partner, profit or loss on revaluation is transferred to th old partners' capital accounts in their old ratio. The Correct Answer is : When Goodwill a/c appears in the books at proper value, the new partner has to pay proportionate amount by way of goodwill, to the old partners. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 608. A, B and C are partners sharing profits and lossed in the ratio of 4: 3: 2. D is admitted for 1/10 share. The new ratio will beMarks: 2+ 0.54:4:3:2 4:3:2:1 5:4:3:2 1:2:3:4 None of the above. The Correct Answer is : 4:3:2:1 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 609. Profit or loss on revaluation is transferred to Capital Account of old partners new partners all partners None of the above The Correct Answer is : old partners You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 610. The sacrifies of an old partners is equal tonew share-old share old share-new share None of the above. The Correct Answer is :

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old share-new share

You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 611. If new partners brings the amount of goodwill in capital, goodwill is transffered to the old partners inMarks: 2+ 0.5old ratio new ratio sacrifice ratio gaining ratio None of the above The Correct Answer is : sacrifice ratio You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 612. If Goodwill a/c is raised after the admission of a new partner, it will be credited toMarks: 2+ 0.5-

New Partner's Capital a/c Old Partner's Capital a/cs All Partner's Capital a/cs New Partner's Drawings a/cs All Partner's Drawings a/cs. The Correct Answer is : All Partner's Capital a/cs You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 613. Goodwill brought in cash by new partner is called-

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Capital Loan Premium Drawing None of the above. The Correct Answer is : Premium You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 614. If nothing otherwise metioned, on admission of a new patner, th e old ratio is itselfMarks: 2+ 0.5-

new ratio sacrifies ratio gaining ratio All of the above None of the above. The Correct Answer is : sacrifies ratio You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 615. On the admission ofa new partner, an increase on the value of an asset is debited to Marks: 2+ 0.5-

Revaluation a/c Old Partner's Capital a/cs Asset a/c New Partner'a Capital a/c None of the above. The Correct Answer is : Asset a/c You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 616. A and B shared profit in the ratio of 3 : 2. C was admitted asa partner for1/5th share. He acquirs 3/20th from B. The new profit sharing ratio would beMarks: 2+ 0.510 : 6 : 4 6 : 10 : 4 8:8:4 9:7:4 12 : 4 : 4 The Correct Answer is : 9:7:4 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 617. Goodwill of a firm of A and B is valued at Rs. 60,000. Goodwill appears in th books at Rs. 24,000. C is admitted for 1/4th share. He will be required to bring for goodwillMarks: 2+ 0.5Rs. 21,000 Rs. 9,000 Rs. 15,000 Rs. 6,000 Rs. 36,000. The Correct Answer is : Rs. 9,000 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 618. A and B are partners sharing profits in the ratio of 3 : 1. C is admitted for 1/4th share. The profit sharing ratio will beMarks: 2+ 0.59:3:4 3:4:9 4:9:3 3:9:4 9:4:3 The Correct Answer is : 9:3:4 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 619. A and B share profits in the ratio of 4/5th and 1/5th. C is admitted for 1/2 share. The profit sharing ratio will beMarks: 2+ 0.51 4 5 5 1 : : : : : 5 1 1 4 4 : : : : : 4 5 4 1 5

The Correct Answer is : 4:1:5 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 620. Computerised Accounting means accounting performed byclerk accountant director computer top management The Correct Answer is : computer You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 621. regular back-up of data is required to guard againstTheft of the computer Theft of the software Loss of data loss of printer None of the above The Correct Answer is : Loss of data You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 622. Computerised accounting software may be-

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single user type software double user type software triple user type software multiple user type software all of the above The Correct Answer is : all of the above You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 623. The set of instructions written by programmer for a computer is calledsoftware hardware Computer program software program Computer program- software program The Correct Answer is : Computer program- software program You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 624. The central processing unit in a computer coprises the followingControl unit and logical unit Storage unit, control unit and output unit

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Input unit, output unit and control unit input unit, logical unit and output unit Control unit, logical unit and storage unit The Correct Answer is : Control unit and logical unit You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 625. A small enterprise generally usesMarks: 2+ 0.5Bespoken system Customised software system software off the shelf software None of the above The Correct Answer is : off the shelf software You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 626. Internet storage in a computer is known as-

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Back storage Primary storage secondary storage Tertiary storage none of the above The Correct Answer is : Primary storage You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 627. In a computer system, the formula that is worked in different ways to ensure that the same results will follow, is calledMarks: 2+ 0.5Layout cheek Limit ckeck Redundant check Cross check Comparability check The Correct Answer is : Cross check You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 628. Application software is concerned with-

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the programming used to control input unit the programming used to control output unit the programming to execute specific functions the programming used to control the operations of the control unit None of the above The Correct Answer is : the programming to execute specific functions You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1

629. Debugging is done by-

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programme coding programme design programme maintenance programme varification None of the above The Correct Answer is : programme varification You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 630. Which one of the following statement is 'true' ?

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primary storage is a part of CPU a set of programmes intended to control the computer is called application software A spread sheet6 is an electronic Worksheet with columns and rows for manipulation of accounting and statistical data MICR is device that helps to position the cursor Input is not the bridge between data and the processing The Correct Answer is : A spread sheet6 is an electronic Worksheet with columns and rows for manipulation of accounting and statistical data You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 631. Which one of the following statement is 'false'? Marks: 2+ 0.5Personal computer is a micro-computer which is intended to process the individual needs of an individual Software which is tailor-made to meet the requirements of a big enterprise is called 'Bespoken' speed and accuracy distinguish the manual accounting and computerised accounting Primary storage is a part of CPU parity cheek ensures that information is not lost5 or garbled The Correct Answer is : Primary storage is a part of CPU You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 632. Wthich one of the following statement is ture? Marks: 2+ 0.5If premium on joint life policy of partners is treated as a business expenditure, it is shown in the assets side of the balance sheet of the firm. the Premium on joint life policy of the partners is always treated as an investment. If Goodwill a/c is raised at full value and written off, the capital a/cs of the continuing partners will be debited in gaining ratio while writing off goodwill. the executors of a deceased partner are cntitled to receive a share in the Profit for the period between the last financial statements to the date of the death. New and gaining ratios among the continuing parthers are always the same. The Correct Answer is : the executors of a deceased partner are cntitled to receive a share in the Profit for the period between the last financial statements to the date of the death. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 633. which one of the following statements is false? Marks: 2+ 0.5-

Retirement of a partner means that a partner breaks off all his relations as partner with all ofther partners and withdraws himself from the firm. The entire share of the retiring partner may sometimes be acquired or purchased by one or some partners. Profit or loss on revaluation is transferred only to continuing partners' capital accounts. New and gaining ratios among continuing partners may be the same or different. A dormant or sleeping partner need not give a public notice of his retirement. The Correct Answer is : Profit or loss on revaluation is transferred only to continuing partners' capital accounts. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 634. In the event of death of a partner, the accumulated profits and losses are shared by the partner in Marks: 2+ 0.5capital ratio new ratio old ratio sacrifice ratio gaining ratio The Correct Answer is : old ratio You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 635. On the death of a Partner, the amount received from join life policy should be credited to the capital accoundts of Marks: 2+ 0.5all Partners including the deceased Partner` only continuing Partners only the deceased Partner All of the above. None of the above. The Correct Answer is : all Partners including the deceased Partner` You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 636. A, B and C are Parnters sharing the Profit in the ratio of 2 : 2 : 1. C retired. The new profit sharing ratio between A and B will beMarks: 2+ 0.51:1 2:1 3:1 1:1 1:2 The Correct Answer is : 1:1 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 637. X, Y, Z are partners sharing profits equally. Y retires, Goodwill appearing in the books is Rs. 60,000. It is valued ar Rs. 1,20,000 Y will be credited withMarks: 2+ 0.5Rs. 60,000 Rs. 40,000 Rs. 20,000

Rs. 1,20,000 None of the above. The Correct Answer is : Rs. 20,000 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 638. A, B and C are partners sharing profits and losses in the ratio of 5 : 3 : 2. B retires. His share was taken up by A and C in the ratio of 2 : 1. The new share between A and C will beMarks: 2+ 0.5-

3:7 5:2 7:3 2:5 5 : 7. The Correct Answer is : 7:3 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 639. Old profit sharing ratio minus new profit sharing ratio is equal to-

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sacrificing ratio gaining ratio capital ratio old ratio None of the above. The Correct Answer is : sacrificing ratio You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 640. A retiring Partner continues to be liable for obligation incurred after his retirement, ifMarks: 2+ 0.5-

he does not give Public notice he starts a similar business unpaid amount is transferred to his loan a/c he gives a public notice None of the above. The Correct Answer is : he does not give Public notice You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 641. Premium paid on Joint Life Policy of Partners isMarks: debited to P & L a/c credited to P & L a/c debited to Partners' Capital a/cs credited to Partners' Capital a/cs None of the above. The Correct Answer is : debited to P & L a/c You did not answer the question. Explanation : undefined

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Module : Module D Chapter : Chapter1 642. On the retirement or death of a partner, Profit or loss on revaluation is transferred to Partners' Capital a/cs/ Current a/cs inMarks: 2+ 0.5old Profit sharing ratio sacrificing ratio gaining ratio capital ratio new ratio of the remaining partners. The Correct Answer is : old Profit sharing ratio You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 643. If goodwill is raised at full value in the books of the firm on retirement of a partner, and is to be written off completely, then the capital accounts of the remaining partners will be debited inMarks: 2+ 0.5old Profit sharing ratio new profit sharing ratio sacrificing ratio gaining ratio capital ratio The Correct Answer is : new profit sharing ratio You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 644. Joint Life Policy Reserve a/c is transfered to-

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the Capital a/c of the retiring Partner all Partners in the old Profit sharing ratio remaining Partners in their new ratio retiring Partner and remaining Partner who sacrifices his ratio None of the above. The Correct Answer is : all Partners in the old Profit sharing ratio You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 645. Sec. 37 of the Indian Partnership Act.,1932 Provides interest on the amount left by the retiring or deceased Partner at Marks: 2+ 0.54% 5% 6% Bank rate Prime lending rate. The Correct Answer is : 6% You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 646. Which one of the following statement is ' false '?

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Creating a reserve for discount on creditors is not srictly according to the principal of conservatism .

' Salary paid in advance ' is not an expence because neither decreases assets nor increases liailities . Stock at the end appearing in trial balance is taken only to Balance sheet . The terms 'Accured Income 'and ' Income received in advance 'are the same thing Trading a/c shows gross profit / gross loss while P & L a/c shows net profit / net loss . The Correct Answer is : The terms 'Accured Income 'and ' Income received in advance 'are the same thing You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 647. Stock appearing outside the Trial balance will be shown in Marks: 2+ 0.5Trading a/c P & L a/c Balance sheet Trading a/c and Balance sheet P & L a/c and Balance sheet The Correct Answer is : Trading a/c and Balance sheet You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 648. The balance of petty cash is Marks: 2+ 0.5an expence an income an asset a liability None of the above The Correct Answer is : an asset You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 649. An asset has Marks: 2+ 0.5debit balance credit balance somatimes debit and sometimes credit balance debit balance in the beginning and credit balance at the end None of the balance The Correct Answer is : debit balance You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 650. A liabilities has Marks: 2+ 0.5debit balance credit balance sometimes debit and sometimes credit balance credit balance in the beggining debit balanceat the end None of the above The Correct Answer is : credit balance You did not answer the question. Explanation : undefined

Module : Module D Chapter : Chapter1 651. Net profit is........ of the firm.

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an asset a liability an expenditure an extra ordinary income None of the above The Correct Answer is : a liability You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 652. Net loss is ............. 0f the firm .

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an asset a liability an income an extra ordinary expenditure None of the above The Correct Answer is : an asset You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 653. Which of the following is a contigent liability ?

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Bank overdraft Short-term loans Long- terms loans Outstanding salaries Liabilities on bills discounted. The Correct Answer is : Liabilities on bills discounted. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 654. Goods costing Rs. 8,000 were damaged by fire . insurance company admitted a claim of Rs. 6,500. Profit & Loss a/c will be debited with Marks: 2+ 0.5Rs. 8,000 Rs. 6,500 Rs. 4,500 Rs. 1,500 None of the above The Correct Answer is : Rs. 1,500 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 655. A manager is entitled to receive a commission @ 5 % on net profit after charging such commission . Gross profit of the firm is Rs. 2,00,000 and selling and administrative expence amount to Rs .1,47,000. His commission will be Marks: 2+ 0.5Rs.5,250 Rs.2,625 Rs.2,500

Rs.10,000 Rs. 52,500 The Correct Answer is : Rs.2,500 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 656. The output of financial accounting is -

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the measurment of accounting income the measurment of taxable income the preparation of financial statements the preparation of financial position All the above The Correct Answer is : the preparation of financial statements You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 657. Income of a business concern Marks: 2+ 0.5is measured as per the requirment of tax authorities. is measured as per the articles of association . is subjectives and influenced by the wishes of the accountant . can never be measured objectivly to give an accurate figure . None of these . The Correct Answer is : is subjectives and influenced by the wishes of the accountant . You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 658. The basic objective of accounting is to Marks: 2+ 0.5satisfy the legle requirments. satisfy the listing requirments of stock exchange. report to the shareholder. provide quantitative information to the users of financial statement. None of the above The Correct Answer is : provide quantitative information to the users of financial statement. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 659. Information about the performance of a business enterprise is disclosed by Marks: 2+ 0.5Trading a/c Trading and P&L a/c Balance sheet Cash Flow Statement Both ( 3) and ( 4 ). The Correct Answer is : Trading and P&L a/c You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 660. External reporting is the result of Marks:

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Financial Accounting Management Accounting Cost Accounting Human Resource Accounting Inflation Accounting The Correct Answer is : Financial Accounting You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 661. Special purpose financial statement are prepared by Financial Accountant Management Accountant Cost Accountant Both (1) and (2) Both (3) and (4) The Correct Answer is : Management Accountant You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 662. Assets are usually shown in the balance sheet at revalud cost replacement cost net realisable cost unexpired cost None of the above The Correct Answer is : unexpired cost You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 663. The most acceptable way of measuring income is -

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to match the costs with revenue to apply normal rate of return on capital invested to apply the average rate of return in industry on capital employed to find out the difference in net worth as on two dates None of the above . The Correct Answer is : to match the costs with revenue You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 664. During a period of rising prices , higher profits can be shown by valuing stick at Marks: 2+ 0.5-

FIFOP Method LIFO Method NIFO Method Simple Average Price Method Weight Average Price Method The Correct Answer is : FIFOP Method You did not answer the question. Explanation : undefined

Module : Module D Chapter : Chapter1 665. Balance Sheet is prepared primarily with the following group in view owners debtors creditors management government. The Correct Answer is : owners You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 666. Goodwill is an example of Marks:

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fixed asset fictitious asset current asset tangible asset intangible asset. The Correct Answer is : intangible asset. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 667. Which one of the following is an example of an intangible asset ? Building Investment Discount on issue of shares and debentures Copyright Preliminary expences. The Correct Answer is : Copyright You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 668. Which one of the following is an example of current asset ? Machinery Vehicles Patents Prepaid expences Goodwill. The Correct Answer is : Prepaid expences You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 669. Which one of the following is an example of current liability ? Share Premium Workmen's composation Fund 10% Debenture Bank Overdraft Bank Loan taken for two years . The Correct Answer is : Bank Overdraft

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You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 670. Balance sheet is Marks: 2+ 0.5a statement showing flows of fund a statement is of position a statement showing income a statement showing only current assets a statement showing only fixed asset The Correct Answer is : a statement is of position You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 671. The excess of current assets over current liabilities is called -

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Gross Working Capital Net Working Capital Gross tangible worth Net tangible worth Net worth. The Correct Answer is : Net Working Capital You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 672. Unexpired income as on the date of Balance Sheet, is shown as an expenditure a revenue an asset a liability None of the above . The Correct Answer is : a liability You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 673. Both assets and owners' eqity would be increased by -

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Proprietor' drawing Payment from debtors Payment to creditors Purchase of fixed asset on credit Capital brought in by the proprietors. The Correct Answer is : Capital brought in by the proprietors. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 674. The net worth of a limited company ia equal to Marks: 2+ 0.5Fixed asset - fixed liabilities Current asset - Current liabilities Fixed Asset - Current Liabilities

Fixed Liabilities - Current Liabilities The total of shareholder' funds. The Correct Answer is : The total of shareholder' funds. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 675. An outstanding expence can best be described as an amount -

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not paid and not currently matched with revenue not paid and currently matched with revenue paid and not currently matched with revenue paid and currently matched with revenue All of the above The Correct Answer is : not paid and currently matched with revenue You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 676. The terms ' Reserve ' in financial statement signifiesMarks: 2+ 0.5the amount of provision for bad debts the amount of provision taxation the amount set apart for contigent liabilities the amount of provision for depreciation the amount of profits set a part for general or specific purpose . The Correct Answer is : the amount of profits set a part for general or specific purpose . You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 677. In the total assets increased by Rs.1,50,000 and the total liabilities increased by Rs. 60,000 in the same accounting period , the capital is that period would Marks: 2+ 0.5decreased by Rs. 60,000 decreased by Rs. 90,000 increased by Rs. 60,000 increased by Rs 90,000 increased by Rs 2,10,000. The Correct Answer is : increased by Rs 90,000 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 678. Outstanding expences appering in the trial balance are shown in Debit side of P& L a/c only Credit side of P&L a/c only Assets side of Balance Sheet only Liabilities side of Balance Sheet only Debit side of P& L a/c and asset side of Balance Sheet The Correct Answer is : Liabilities side of Balance Sheet only You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1

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679. Which one of the following statement is 'true ' ?

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The accounting policies do not differ from enterprise to enterprise Reserve of a business enterprise alway represent the amount which can spend readily The figures as shown in the balance sheet , are the future estimated values of assets and liabilities . Balance Sheet is a statement of assets and liabilities as on a given date . Total capital employed by a company is the sum of shareholder' funds plus current liabilities . The Correct Answer is : Balance Sheet is a statement of assets and liabilities as on a given date . You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 680. Which one of the following statement is ' false '? Marks: 2+ 0.5A Balance Sheet can only indicate the items that can be expressed in terms of money. Security , capable of being realised and not held with the intention of retaini9ng it for more than one year , is a current asset . An iron safe is a fixed asset for a medical shop and current asset for a shop dealing in iron safes. Liquidity is the ability of an organisationto meet current liabilities out of its current assets . The closing stock of office stationary is credited to Trading a/c The Correct Answer is : The closing stock of office stationary is credited to Trading a/c You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 681. The purpose of finacial statement / final accounts is to as certain Marks: 2+ 0.5profit profit or loss value of assets value of liabilities profit or loss and financial position The Correct Answer is : profit or loss and financial position You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 682. Financial statement are prepared Marks: 2+ 0.5at the end of calender year at end of accounting year at the end of assessment year on every diwali on every christmas The Correct Answer is : at end of accounting year You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 683. Gross profit is ascertained by preparing Marks: Trial balance trading a/c profit & loss a/c

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balance sheet all of the above The Correct Answer is : trading a/c You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 684. Suspence a/c appering in the trial balance is shown in the Ledger Trading a/c P & L A/C Balance sheet All of the above The Correct Answer is : Balance sheet You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 685. Balance sheet is prepared to know -

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Gross profit Net profit Balance of accounts Errors Financial position The Correct Answer is : Financial position You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 686. The statement showing assets and liabilities is Trial balance Trading a/c P & l a/c Balace sheet None of these The Correct Answer is : Balace sheet You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 687. Working capital is Marks: 2+ 0.5-

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Proprietor own capital Borrowed capital Amount of of sale all assets - all libilities Current assets - current libilities The Correct Answer is : Current assets - current libilities You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 688. Which one of the following statement is ' false '? Marks:

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Capital = Assests - Liabilities Balance sheet is an account Balance sheet may be prepared by half- yearly or annually Cash will be the first item is assets side of balance sheet if assets are arranged in the order of liqidity Capital will be the last item in the liabilities side if liabilities are arranged in the order of liqidity. The Correct Answer is : Balance sheet is an account You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 689. Sales are equals Marks: 2+ 0.5Gross profit - Cost of goods sold Gross profit + Cost of goods sold Cost of goods sold - Gross profit Gross profit - Net profit Gross profit + Net profit The Correct Answer is : Gross profit + Cost of goods sold You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 690. Goods distributed as samples should be credited to Purchase a/c Sales a/c Advertisement a/c P & L a/c None of these above The Correct Answer is : Purchase a/c You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 691. Intrest on Drawing is Marks: 2+ 0.5Expenditure for the business Income for the business Asset for the business Liabilities for the business None of the above The Correct Answer is : Income for the business You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 692. Outstanding salaries are shown as Marks: 2+ 0.5Expenditure Income Asset Liabilities None of the above The Correct Answer is : Liabilities You did not answer the question.

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Explanation : undefined Module : Module D Chapter : Chapter1 693. Which one of the following statement is 'true' ?

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Stock at the end appering in the trial balance is taken only to the Balance sheet All intangible assets are fictitious assets Goods taken out by the proprietor from the business for personal use are credited to sales a/c . The current liabilities mean the liabilities which are payable after a year . Premium paid on the life policy of the proprietor is debited to P & L a/c . The Correct Answer is : Stock at the end appering in the trial balance is taken only to the Balance sheet You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 694. Dividened can be paid out ofMarks: 2+ 0.5General Reserve Capital Reserve Share Premium Pre-incorporation Profits All of the above The Correct Answer is : General Reserve You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 695. Share Premium Account is shown in the liabilities side of the Balance Sheet under the heading Marks: 2+ 0.5Share Capital Reserves and Surplus Current Liabiliities and Provisions Contigent Liabilities Secured Loans The Correct Answer is : Reserves and Surplus You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 696. Claims against the company nnot acknowledged as debts is acurrent liability secured loan unsecured loan provision Contingent The Correct Answer is : Contingent You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 697. Indicate the item that figures in P&L a/c below the lineProvision for doubtful debts

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provision for taxation Provision for gratuity payable to employees Contribution to Provident Fund Transfer to Sinking Fund The Correct Answer is : Transfer to Sinking Fund You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 698. Advance payment of tax is in the nature of -

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Prepaid Expenditure, Revenue Expenditure Asset Liability Contingent Liability The Correct Answer is : Prepaid Expenditure, You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 699. Provision for taxation on current profits iis shown-

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above the line in P&L a/c below the linne in P & L a/c above the line in P & L a/c and on the liabilities side of Balance Sheet below the line in P & L a/c and on the liabilities side of Balance Sheet below the line in P & L a/c and on assets side of Balance Sheet The Correct Answer is : above the line in P & L a/c and on the liabilities side of Balance Sheet You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 700. Divisible profits do not includeMarks: 2+ 0.5Revalution Reserve General Reserve Revenue Reserve Balance of Profit & Loss a/c Subsidies provided by government in pursurance of guarantee for dividend The Correct Answer is : Revalution Reserve You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 701. Amount set aside to meet losses due to bed debts isMarks: 2+ 0.5an asset a liability a contingent liability a provision a reserve The Correct Answer is : a provision You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1

702. Tax assessed in pprevious year was Rs.30,000 while the provision for taxation in that year was Rs,40,000. The adjustment for this in the current year would beMarks: 2+ 0.5a debit of Rs,10,000 above the line P & L a/c a debit of Rs. 10,000 below the line in P & L a/c a credit of Rs. 10,000 above the line in P&L a/c a credit of Rs. 10,000 below the line in P&L a/c a credit of Rs. 30,000 above the line in P&L a/c The Correct Answer is : a credit of Rs. 10,000 below the line in P&L a/c You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 703. Preliminary expense is an example ofMarks: 2+ 0.5Current assets Fixed assets Fictitious assets Tangible assets Prepaid expenditure The Correct Answer is : Fictitious assets You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 704. which one of the following statements is ;true;?

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Provision is maintained for unknown liabilities Livestock is a current asset. Preliminary expenses are current liabilities. Contingent liabilities are shown as a footnote. Public deposits with the company are shown in the assets side of the Balance Sheet. The Correct Answer is : Contingent liabilities are shown as a footnote. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 705. Which one of the following statements is :false ? Marks: 2+ 0.5Discount on issue of shares and debentures is misccellancous expendiure Bills receivables are shown under the heaing loans and advances. Unclaimed dividend is currrent liabilities Proposed dividend is shown under the heading R serves and Surplus Goodwill of the company is shown under the heading :Fixed Assets. The Correct Answer is : Proposed dividend is shown under the heading R serves and Surplus You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 706. which one of the following statements is true? Marks: 2+ 0.5final dividend ccan be declared by directors. arrers of cumulative preference dividend is a current liability loose tools: appears as a fixed asset in the Balance Sheet of a company. a dividend can be paid on callls in advance. Managerial remuncratiojn is calculated before providing for taxation The Correct Answer is : Managerial remuncratiojn is calculated before providing for taxation You did not answer the question.

Explanation : undefined Module : Module D Chapter : Chapter1 707. The prescribed form of Balance Sheet for the Companies has been given in the Schedule.
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VI Part I VI Part II VI Part III VI Part IV VI Part V The Correct Answer is : VI Part IV You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 708. .....is shown under the heading :Fised Assetrs? Patents and Trademarks Livestock Goodwill All of the above None of the above. The Correct Answer is : All of the above You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 709. Share Capital is shown in the Balance Sheet as -

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Autnorised Issued Subscribed and Paid up All of the above None of the above. The Correct Answer is : All of the above You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 710. Current liabilities are the liabilities which are to be paid at the most within.....months.
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3 6 9 12 24 The Correct Answer is : 12 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 711. Lons as per the Schedule VI are classified as _ Secured and unsecured Cumulative and non-cumulative

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Redeemable and irredeemable Fixed and current All of the aboive, The Correct Answer is : Secured and unsecured You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 712. According to the prescribed order of assets under Schedule VI Part I ...... assets should be shown first of all. Marks: 2+ 0.5loans and advances currents fixed investments investments None of the above. The Correct Answer is : fixed investments You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 713. Workmen's Compensation Fund is a -

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provision reserve surplus current liability loan. The Correct Answer is : provision You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 714. Preparation of final accounts of a company is governed by the Section of the Companies Act. Marks: 2+ 0.5203 209 210 211 212 The Correct Answer is : 210 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 715. Section..... of the Companies Act requires the Balance Sheet to be prepared in the precribed form. Marks: 2+ 0.5208 209 210 211 212 The Correct Answer is : 211 You did not answer the question. Explanation : undefined

Module : Module D Chapter : Chapter1 716. Section..... of the Companies Act makes compulsory for every company to keep certain books of accounts. Marks: 2+ 0.5208 209 210 211 212 The Correct Answer is : 209 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 717. Dividends are usually paid on -

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Authorised Share Capital Issued Share Capital Subscribed Share Capital Paid up Share Capital Called up Share Capital. The Correct Answer is : Paid up Share Capital You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 718. Interest on capital allowed to partners should be treated as

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an appropriation of profits a charge against profits a charge when profits are not available an appropriation when profits are not available an appropriation when profits are available The Correct Answer is : an appropriation of profits You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 719. A partner's capital balance at the end of the year is Rs. 1,00,000 after adjusting for drawings Rs. 20,000 and his share in the profits Rs. 10.000. Interest payable to him at 5% p.a. on the opening capital balance, would be Marks: 2+ 0.5Rs. 3,500 Rs. 4,000 RS. 4,500 RS. 5,000 Rs. 5,500 The Correct Answer is : Rs. 5,500 You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 720. Which one of the following statements is true?

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A partner who sleeps for 12 hours a day, is called 'sleeping partner'. A Quasi partnership protects the third parties who may make a nonpartner liable. Law makes a difference to liabilities towards third parties

Under the Indian Partnership Act, 1932, all the partners jointly and severally have limited liabilities towards third parties Under the Indian Partnership Act, 1932, limited partnership is permitted The Correct Answer is : A Quasi partnership protects the third parties who may make a nonpartner liable. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 721. Which one of the followiing statements is false? Marks: 2+ 0.5A sleeping or dormant partner is normally not interested in the day-to-day working of the partnership Law makes no difference between a working partner and sleeping partner in reference to liabilities towards third parities Under the Indian Partnership Act, 1932, all the partners, working or sleeping, jointly and severally have unlimited liabilities towards third parties Limited partnership means partnership for a limited period of time. A quasi or nominal partner is in fact not a partner in the firm, but it estops him from disclaiming his status as a partner vis-a-vis third parties if he keeps quiet The Correct Answer is : Limited partnership means partnership for a limited period of time. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 722. Which one of the following is true? Marks: 2+ 0.5There can be minimum three and maximum thirty partners in a partnership firm. A partnership firm enjoys a separate legal entity apart from its partners. Partnership deed is not in writing. Partners' Current Accounts are maintained in case of Fluctuating Capital System. No limit regarding maximum number of partners in a firm has been prescribed by the Indian Partnership Act, 1932. The Correct Answer is : No limit regarding maximum number of partners in a firm has been prescribed by the Indian Partnership Act, 1932. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 723. Which one of the following statements is false? Marks: 2+ 0.5In the absence of any contract of the contrary, partners are required to share profits and losses equally. If it is proved that there has been definite loss to the firm owing to negligence of a partner, that partner will make good such loss. If the partnership deed is silent on certain points, the relevant provisions of the Partnership Act, 1932 will apply Partners are mutual agents for each other. Partners are not mutual agents for each other. The Correct Answer is : Partners are not mutual agents for each other. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 724. An ordinary partnership firm can have maximum Marks: 2+ 0.510 partners 20 partners

50 partners 100 partners any number of partners. The Correct Answer is : 20 partners You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 725. A partnership firm engaged in banking business can have maximum

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5 partners 10 partners 20 partners 50 partners any number of partners The Correct Answer is : 10 partners You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 726. Partners' Current Accounts are opened when their captial accounts are fixed fluctuating in both of the above having zero balances None of the above The Correct Answer is : fixed You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 727. In absence of an agreement to the contrary, the partners shall

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be paid salaries not be paid salaries be paid salaries upto Rs 1,000 p.m. be paid salaries if they are working partner. be paid salaries if they are sleeping partners The Correct Answer is : not be paid salaries You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 728. Suppose, the partnership deed provides for a salary of Rs. 5,000 p.m. to partner X. If X withdraws only Rs. 3,000 in a month, the remaining Rs. 2,000 will be Marks: 2+ 0.5debited to his Capital a/c credited to his Drawing a/c credited to his Current a/c credited to P & L Adjustment a/c None of the above The Correct Answer is : credited to his Current a/c You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1

729. In the absence of an agreement to the contrary, If partners sleeping or working share profits and losses Marks: 2+ 0.5in the ratio of their orginal captial in the ratio of their latest captial in the ratio of average captial in equal ratio None of the above The Correct Answer is : in equal ratio You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 730. In abscence of any provisions in the partnership agreement, partners can charge on the loans given by them to the firm Marks: 2+ 0.5interest at 6% p.a. interest at 12% p.a. interest at 15% p..a. interest at 10% p.a. no interest The Correct Answer is : interest at 6% p.a. You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 731. The current account of a partner Marks:

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will always have a debit balance will always have a credit balance will never have a balance may have a debit or a credit balance None of the above The Correct Answer is : may have a debit or a credit balance You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 732. Goodwill in a partnership firm can be valued or revalued on the occasion of only on incoming of a partner only on outgoing of a partner only on dissolution of a firm on all the above None of the above The Correct Answer is : on all the above You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 733. The balance of a partner's captial account will get reduced wish this amount Partner's salary Interest on partner's capital Interest on partner's drawings Interest on partner's loan All of the above The Correct Answer is : Interest on partner's drawings

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You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 734. In the absence of any provision in the partnership deed, the partnership Act provides for
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Interest on drawings Interest on captials Interest on advances given by partners Interest on loans given by creditors Interest on loans given by banks The Correct Answer is : Interest on advances given by partners You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1