01/03/2021 2nd Module Assessment


Dashboard My courses 2_Sem 1_ACCT602 Module II: Preparation of Financial Statements

2nd Module Assessment



Question 1 Depreciation is a -
 Not yet
answered
Select one:
 Marked out of
a. Liability
1.00
b. Reserve

c. Provision
 d. Loss

 Clear my choice

Question 2 The purpose of preparing final accounts is to ascertain

Not yet ___________
answered

Marked out of Select one:

1.00
a. Profit or loss

b. Profit or loss and financial position

c. The value of assets

d. Capital

Clear my choice

Question 3 The financial statements of an organisation are drafted using

Not yet the ___________.
answered

Marked out of Select one:

1.00
a. Ledger balances

b. Events

c. None of the above.

d. Transactions

Clear my choice

Question 4 Gross profit is the difference between

Not yet
answered
Select one:
Marked out of
a. None of the above
1.00
b. Sales and non-operating expenses

c. Sales and operating expenses

d. Sales and cost of goods sold

Clear my choice

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01/03/2021 2nd Module Assessment

Question 5 An increase in the provision for doubtful debt will

Not yet
 answered
Select one:
Marked out of
a. Increase in net profit
 1.00
b. Decrease in net profit
 c. Non of the above

d. Increase in liability

Clear my choice


 Question 6 Bank overdraft is a

Not yet
answered
 Select one:
Marked out of
a. Revenue
1.00

b. A liability

 c. An asset

d. Expenses

Clear my choice

Question 7 Balance sheet is prepared

Not yet
answered
Select one:
Marked out of
a. For the close of a period
1.00
b. None of the above

c. At the close of a day

d. At a particular date

Clear my choice

Question 8 Inventory is
Not yet
answered
Select one:
Marked out of
a. Included in the category of fixed assets
1.00
b. An intangible fixed asset

c. A part of current assets

d. An investment

Clear my choice

Question 9 Among the financial statements, ___________ is/ are

Not yet referred to as ‘period statement’.
answered

Marked out of Select one:

1.00
a. Trading Account

b. Both (a) and (b)

c. Balance Sheet

d. Profit & Loss Account

Clear my choice

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01/03/2021 2nd Module Assessment

Question 10 Change in the method of depreciation is change in _______.

Not yet
 answered
Select one:
Marked out of
a. None of the above
 1.00
b. Measurement discipline
 c. Accounting estimate

d. Accounting policy

Clear my choice


 Question 11 If a concern proposes to discontinue its business from March

Not yet 2015 and decides to dispose of all its plants within a period of 4
answered
 months, the Balance Sheet as on March 31, 2015 should indicate
Marked out of the plants at their
2.00

Select one:
 a. Cost less depreciation

b. All

c. Historical cost

d. Net realizable value

Clear my choice

Question 12 All of the following support the objectives of financial reporting

Not yet except providing information that
answered

Marked out of Select one:

2.00
a. helps investors and creditors predict future cash flows

b. is useful for making investment and credit decisions

c. concerns enterprise resources and claims to those

resources

d. helps management evaluate alternative projects

Clear my choice

Question 13 Assets are listed on the balance sheet in the order of their
Not yet
answered
Select one:
Marked out of
a. balance
2.00
b. adjustments

c. purchase date

d. liquidity

Clear my choice

Question 14 If a company wants to earn a 25% profit on sales, what will be

Not yet the profit mark up on the cost.
answered

Marked out of Select one:

2.00
a. 20%

b. 30%

c. 33.33%

d. 25%

Clear my choice
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01/03/2021 2nd Module Assessment
Clear my choice

Question 15 Which of the following items may appear as current liabilities in

Not yet a company's statement of financial position? 1 Revaluation
 answered surplus, 2 Loan due for repayment within one year, 3 Taxation, 4
Marked out of Preference dividend payable on redeemable preference shares
 4.00

Select one:
 a. 1, 2 and 3

b. 1, 2 and 4

c. 1, 3 and 4
 d. 2, 3 and 4

Clear my choice



Question 16 Which of the following might appear as an item in a company's
 Not yet statement of changes in equity? 1 Profit on disposal of
answered properties 2 Surplus on revaluation of properties 3 Equity
 Marked out of dividends proposed after the reporting date 4 Issue of share
4.00 capital

Select one:
a. 1, 3 and 4 only

b. 2 and 4 only

c. 1 and 2 only

d. 3 and 4 only

Clear my choice

Question 17 Original cost = INR. 12,60,000; Salvage value = Nil; Useful life = 6
Not yet years. Depreciation for the first year under sum of years digits
answered method will be
Marked out of
4.00
Select one:
a. 1,20,000

b. 1,80,000

c. 1,55,000

d. 3,60,000

Clear my choice

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