Practice Accounts Questions and Answers

• 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?
• According to Section 44 of the Indian Partnership Act, 1932, the court, at the suit of a partner, may dissolve a firm on which of the following grounds? (i...
• Financial management is generally concerned with the procurement, allocation and control of financial resources of a concern. Its objectives can be: 1. to ...
• Which of the following would be the base figure in a Vertical Analysis of an Income Statement?
• The retiring partner becomes entitled to get back his dues from the firm that consist of: (i) the balance of his capital and current account at the time of...
• The parties to a promissory note are:
• In relation to the computation of total income, which of the following statements is INCORRECT?
• If an asset’s useful life is revised from 10 years to 8 years in its 5th year, then how should the depreciation be recalculated?
• Which of the following will be the journal entry for Credit Sales under Self-Balancing Entry?
• A and B are partners having Capitals of ₹75,000 and ₹25,000, respectively, and a profit-sharing ratio of 4 : 1. C is admitted for 1/5th share in the pr...
• Which of the following is a feature of Operating Lease according to Accounting Standard 19?
• __________ of an assessee determines the scope of chargeability of his/her income.
• Which of the following statements are correct? (i) Net Income (NI) Theory was propounded by David Durand. (ii) The Net Operating Income (NoI) approach was ...
• A company purchases 1000 bonds of ₹100 each at ₹95 cum-interest, and the interest rate is 8% payable, annually. How much accrued interest is included i...
• Match the following columns regarding the posting of Profit and Loss Account items. ...
• If a government grant is received but later becomes refundable, how should it be accounted? 
• On what basis is vertical analysis made?
• In relation to the Accounts of Insurance Companies, which of the following statements are correct? (i) Re-insurance means the transfer of a part of risk by...
• Which of the following statements regarding an auditor's responsibilities is FALSE?
• Which of the statements is correct with respect to a company that has announced a bonus issue according to Rule 14 of the Companies (Share Capital and Debe...
• If a company declares dividends after the balance sheet date but before financial statements are approved, AS 4 requires that: