Practice Accounts Questions and Answers

• 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?
• XYZ & co is a partnership firm that has been operating for five years. The firm has consistently achieved average annual profits of ₹1,00,000. The capita...
• In relation to internal control, which of the following statements is/are correct? (i) It is a continuous critical review of financial and operating activi...
• If a company has a foreign branch, how are its financial statements translated as per AS 11?
• A company purchased land for ₹5,00,000 by issuing shares instead of paying cash. How should this transaction be treated in the cash flow statement?
• Which form is used to claim ITC in GST returns?
• A branch receives goods from the Head Office at an invoice price that includes a 25% markup on cost. If the invoice price of goods sent to the branch is �...
• The amount, set aside each year to redeem debentures under the Sinking Fund Method, is invested in:
• A company purchases a fixed-income security that provides interest on a half-yearly basis. The interest is accrued but not yet received at the balance shee...
• The concept of average due date is used for which of the following? (i) For calculating interest on drawings of partners (ii) For settling accounts between...
• Which of the following statements is INCORRECT?
• A company purchased machinery for ₹10,00,000 on 1 April 2021. The machine has a useful life of 5 years, and depreciation is charged using the straight-li...
• Which of the following allowances is NOT taxable under Income under head Salaries?
• In relation to the Accounts of Electricity Companies, which of the following points are involved in the Optimised Depreciated Replacement Cost [ODRC] Metho...
• Which of the following is an example of a change in accounting policy that must be disclosed under AS 1?
• Calculate the labour efficiency variance with the help of the following information. 1. Actual hours incurred - 1100 hr at an actual rate of ₹8.5 per hr ...
• Assuming that the discount rate is 7% per annum, how much would one pay to receive ₹500, growing at 5%, annually, forever? 
• Under the GST Laws, in the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per which of the following ...
• Which of the following is NOT a feature of a Receipts and Payments Account? 
• Which of the following wage systems does NOT provide an incentive for efficiency?
• In relation to Amalgamation, which of the following statements is INCORRECT?