Practice Accounts Questions and Answers

• 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: 
• While vouching purchases, an auditor notices that a supplier’s invoice is missing. What is the best course of action?
• If a purchase return of ₹1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ acco...
• ₹200 paid as wages for erecting a machine should be debited to:
• The preparation of a trial balance is for:
• Valuing inventory at cost or net realizable value is based on which principle?
• Inventory is disclosed in financial statements under:
• The cost of sales is equal to:
• Consider the following for Q Co. for the year 2021-22: • Cost of goods available for sale: ₹1,00,000 • Total sales: ₹80,000 • Opening inventory: ...
• If the profit is 25% of the cost price, then it is:
• While finalizing the current year’s profit, the company realized that there was an error in the valuation of closing inventory of the previous year. In t...
• What is the primary objective of CARO?
• Which report is issued after completion of statutory audit of a PSU?
• In amalgamation in the nature of merger, which method is used?
• What is the key objective of standard costing?
• What is a marginal cost?
• Which costing method is most suitable for the oil refining industry?
• What is the primary objective of capital budgeting?
• Which valuation approach is used in Discounted Cash Flow (DCF) method?
• In CAPM, the risk-free rate is:
• Execution risk refers to: