Practice Accounts Questions and Answers

• Which of the following is not a source of long-term finance?
• AS-10 pertains to:
• Zero-based budgeting means:
• Under Ind AS 116, a company leases an asset for 5 years. On transition, it recognizes a right-of-use asset and corresponding lease liability. However, the ...
• A company is offered a trade credit term of "2/10 net 30" by its supplier. If it doesn't take the discount, what is the annualized cost of forgoing the dis...
• A company purchased machinery for ₹50,00,000 on 1st April 2020. Installation cost was ₹5,00,000. Residual value ₹3,00,000, useful life 5 years. On 1s...
• A company has the following capital structure: • Equity: ₹60,00,000 (Cost of Equity = 15%) • Debt: ₹40,00,000 (Pre-tax cost = 10%) • Tax rate = 3...
• A company changed its depreciation method from straight-line to diminishing balance, stating this better reflects usage pattern. The change led to material...
• A manufacturing firm includes administrative overheads and interest costs in inventory valuation during a slowdown. Which accounting principle is violated?
• Post-merger, the acquirer reports a goodwill of ₹120 crore, 40% higher than the net assets acquired. Upon impairment testing, only ₹10 crore is recover...
• A power company appraises a 25-year hydro project with IRR of 12% and a payback of 8 years. However, the risk-adjusted discount rate is 15%. Should the pro...
• A central PSU adopts sovereign guarantee-backed debt for a ₹2,000 crore infrastructure project. What impact will this have on its cost of capital?
• A company's current ratio is 2.5, but its quick ratio is only 0.9. What does this suggest about its liquidity?
• A firm extends credit from 30 to 60 days to push sales, increasing receivables by ₹5 crore. Cost of capital is 12%. What is the annual carrying cost?
• A firm has high current assets turnover but declining sales. What strategy should it follow?
• Valuing inventory at cost or net realizable value is based on which principle?
• 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?
• As per AS 10 (Revised) ‘Property, Plant and Equipment’, an enterprise holding investment properties should value Investment property:
• A company has the following inventory data for a product: •Opening Stock: 500 units @ ₹50 •Purchases: 1,000 units @ ₹55 •Sales: 1,200 units Closi...
• A company with higher current assets than current liabilities is said to have:
• The process of finding present value of a future amount is called:
• A central PSU adopts sovereign guarantee-backed debt for a ₹2,000 crore infrastructure project. What impact will this have on its cost of capital?
• A firm has high current assets turnover but declining sales. What strategy should it follow?
• As per Companies Act, 2013, it is mandatory to have a women director on the Board of a public company with paid up share capital of _____ 
• What is the minimum number of independent director on board of a listed company?
• A director is appointed in _______
• An independent director can be appointed for a consecutive term of ______
• The financial statements of the company are approved by ____________ before signed by the chairperson/MD/CEO/directors of the company.
• What is the limit of Gratuity not taxable?
• What is the Belated return due date for AY 22-23?
• What is the limit of deduction allowed under section 80TTA of the Income Tax Act?
• IGST is collected in case of what type of sales?
• How many digits are there in HSN code?
• Under Income tax, how much deduction is allowed for tuition fee of children?
• Which inventory method is banned as per Ind AS?
• In India, what is the minimum Solvency ratio of insurance company to be maintained?
• A company follows the accrual basis of accounting and recognizes revenue when the goods are dispatched, not when cash is received. However, in its final ac...
• A company has a paid-up share capital of ₹80 lakh and free reserves of ₹120 lakh. It plans to buy back 25% of its paid-up equity shares. The face value...
• ABC Ltd. reported net profits of ₹12 lakh, but their cash from operations was only ₹3 lakh. The company made large purchases of inventory and extended ...