Practice Accounts Questions and Answers

• 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"?
• According to AS 26, which of the following costs cannot be capitalized as part of an intangible asset?
• The amount of purchase if  Cost of Goods Sold = ₹80,700 Opening Inventory = ₹5,800 Closing Inventory = ₹6,000
• Average Inventory = ₹12,000. Closing Inventory is ₹3,000 more than Opening Inventory. The value of Closing Inventory is _____.
• Which of the following statement is true in case of bonus issue?
• Bonus issue is also known as
• In the cash flow statement, ‘cash and cash equivalents’ do not include:
• While preparing a Cash Flow Statement using the Indirect method as required under AS 3, which of the following will not be deducted from/added to the Net P...
• State which statement is correct:
• State which statement is incorrect:
• It is the duty of the agent to protect and preserve the interest on behalf of the principal’s representative in case of _____
•  Agent should not deal on his own account without first obtaining the consent of the principal, otherwise the principal may—
• Which of the following is shown under investing activities in the cash flow statement ?
• Which ratio measures the efficiency of a company in using its assets to generate sales?
• A company with higher current assets than current liabilities is said to have:
• Which of the following is a fixed cost?
•  Under the Written Down Value (WDV) method, depreciation is:
• The process of finding present value of a future amount is called:
•  NPV is positive when:
• Which of the following is not a source of long-term finance?
• AS-10 pertains to: