Practice Accounts Questions and Answers

• As per the Companies Act, 2013, the audit committee shall have powers: (i) to investigate any activity within its terms of reference (ii) to seek informati...
• Find the gross profit based on the following information. Opening stock ₹10,000 Credit purchase ₹50,000 Cash purchase ₹60,000 Return inward ₹10,000...
• Section 2(88) of the Companies Act, 2013, defines the expression ‘________________’ as such equity shares as are issued by a company to its directors o...
• Virat Ltd. issues 5,000 10% preference shares of ₹100 each at ₹96 each. The company proposes to redeem the preference shares at the end of the 10th yea...
• Which of the following statements is INCORRECT?
• What are the major challenges an organisation may encounter when implementing budgetary control? 
• A company issues 20,000 debentures where only 15,000 debentures are underwritten by Mr. X. After completion of the application process, the company found t...
• What is the maximum time allowed to complete a buyback offer from the date of passing a special resolution? 
• ABC Ltd. wants to conduct a vertical analysis of its income statement. To standardise its financial data, each line item should be presented as a proportio...
• What is the key difference between internal and external reconstruction?
• What is the primary role of the Special Purpose Vehicle (SPV) in debt securitization?
• Which of the following will be considered as the long-term objective of financial management?
• According to RULE 18(7)(C) of the Companies (Share Capital and Debentures) Rules, 2014, every company required to create/maintain debenture redemption rese...
• In relation to Financial Management, which of the following statements are correct? (i) Financial Management as the name suggests is the management of fina...
• A company has a net profit of ₹5,00,000 and 1,00,000 equity shares outstanding at the beginning of the year. During the year, it issued 50,000 additional...
• According to the Banking Regulation Act, 1949, non-banking assets must be disposed off within _____ years from the date of acquisition or period extended b...
• As per the Companies Act, 2013, Sections _____ provide for the qualifications, disqualifications, appointment, removal, rights, duties and liabilities of c...
• Which of the following is NOT regarded as a financing decision under financial management?
• Which of the following incomes is taxable under the head income from other sources?
• In relation to trend analysis, which of the following statements is/are correct? Statement-1: The trend analysis of ratios indicates whether the financial ...
• Which of the following statements is correct?
• In relation to Bills of Exchange, which of the following statements is INCORRECT? 
• Which of the following is/are involved in Financial Management? 1. The process of acquiring and efficiently utilising financial resources 2. Actions aimed ...
• Which of the following is true regarding e-invoicing under GST?
• In which of the following situations is a Special Audit required? a) When there is suspicion of financial mismanagement b) When a company requests for a Sp...
• Which of the following is an example of how departmentalisation allows for suitable costing methods?
• Which of the following is an example of an adjusting event as per AS 4? 
• Which of the following is NOT a correct feature of a negotiable instrument according to the Negotiable Instruments Act, 1881?
• A not-for-profit organisation receives a donation of ₹1,00,000 for constructing a new building. How should this be treated in the financial statements?
• Which of the following is a condition that makes a fixed budget suitable?
• In relation to auditing concepts, which of the following statements is INCORRECT? 
• Which of the following statements is true for the Payback Period method?
• Which of the following is NOT an example of an intangible asset under AS 26?
• What is the maximum limit of gratuity payable, under the Payment of Gratuity Act, 1972?
• In relation to the Time Value of Money, the value of money received today is more than the value of money received after some time in the future due to whi...
• As per the provision of Section 40 of the Companies Act, 2013, the commission paid or agreed to be paid does NOT exceed in the case of debentures _____of t...
• In relation to appointment of auditors under the Companies Act, 2013, which of the following statements are correct? (i) Section 129 of the Companies Act, ...
• As per Section 127 of the Companies Act, 2013, in relation to punishment for failure to distribute dividends, where a dividend has been declared by a compa...
• Which of the following statements is FALSE regarding computerised accounting?
• If a long-term investment suffers a permanent decline in value, how should it be accounted for under AS 13?