Practice Accounts Questions and Answers

• 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:
• Which of the following is not a taxable income under the head “Income from Other Sources”?
• Current investments are carried at:
• State which statement is correct:
• Who can become an agent?
• An instrument which is vague and cannot be clearly identified either as a bill of exchange, or as a promissory note, is called as:
• As per Negotiable Instruments Act, 1881, Negotiable Instruments means:
• Which is not the essential characteristic of Bill of exchange:
• Stock on 1st Jan = ₹1,00,000 Purchases = ₹2,50,000 Sales = ₹3,00,000 Gross Profit = 25% on sales Stock destroyed in fire on 30th June. Calculate clai...
• A machine was purchased on 1st April 2020 for ₹5,00,000. Useful life is 5 years with residual value ₹50,000. Depreciation is charged using written down...
• A company has the following inventory data for a product: • Opening Stock: 500 units @ ₹50 • Purchases: 1,000 units @ ₹55 • Sales: 1,200 units Cl...
• An entity purchases 1,000 shares of X Ltd. at ₹120 per share. Brokerage and taxes amount to ₹10,000. At year-end, the fair market value of the investme...
• Under AS 6, which of the following cannot be considered a method of depreciation?
• X Ltd. is merged with Y Ltd. under the pooling of interest method. The reserves and surplus of X Ltd. amount to ₹10 lakhs. How will this be treated in th...
• A agrees to sell his horse to B if it wins the race tomorrow. The horse dies during the race. What is the nature of the contract?
• A company has a standard direct material cost of ₹10 per unit. Actual cost incurred was ₹12 per unit for 1,000 units. 950 units were actually produced....
• What is the present value of ₹1,00,000 receivable after 5 years, if the discount rate is 12% p.a. compounded annually?
• If a company issues bonus shares in the ratio of 3:5, what would be the new number of equity shares held by a shareholder who owns 2,000 shares?
• In Zero-Based Budgeting (ZBB), the budget for each activity is:
• Mr. A has the following incomes during the year: Income from Salary: ₹4,00,000 Income from House Property (net after deductions): ₹1,00,000 Profit fro...
• Which of the following incomes is not chargeable under the head "Income from Business or Profession"?