Practice Accounts Questions and Answers

• 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:
• Which is a non-discounting capital budgeting technique?
• Goods purchased from A for ₹10,000 passed through the sales book. The error will result in:
• On purchase of old furniture, the amount of ₹1,000 spent on its repair should be debited to:
• Goods purchased ₹1,00,000. Sales ₹90,000. Margin 20% on cost. Closing Inventory = ?
• Which inventory costing formula calculates value of closing inventory considering that inventory most recently purchased has not been sold?
• If there exists a specific sports fund, the expenses incurred in relation to sports activities will be taken to:
• Which of the following statements is true with regard to declaring and issuing of Bonus Shares?
• While preparing cash flow statement, an entity (other than a financial institution) should disclose the dividends received from its investment in shares as...
• As per AS 10 (Revised) ‘Property, Plant and Equipment’, an enterprise holding investment properties should value Investment property:
• A company has fixed costs of ₹80,000, variable cost per unit ₹40, and selling price per unit ₹60. What is the break-even sales (in units)?
• A business has the following inventory transactions: • Opening Stock: 100 units @ ₹10 • Purchases: 200 units @ ₹12 • Sales: 250 units Using FIFO,...
• A property has Gross Annual Value ₹2,40,000. Municipal taxes paid ₹40,000. Standard deduction is 30%. What is the income from house property?
• An investment costs ₹50,000 and generates ₹15,000 annually for 5 years. What is the Payback Period?
• A company has net profits of ₹50 lakhs. What is the maximum remuneration payable to a single whole-time director without Central Government approval unde...
• Under the Straight-Line Method of depreciation, depreciation is:
• Which of the following errors will not affect the trial balance?
• Contribution is calculated as:
• Which of the following taxes is subsumed under GST?
• If ₹10,000 is invested at 10% p.a. compounded annually, what will be the amount after 2 years?
• Debt is considered cheaper than equity because: