Practice Accounts Questions and Answers

• 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 ...
• A company issues 1,00,000 equity shares of ₹10 each at a premium of ₹5, payable as ₹5 on application, ₹5 on allotment (including premium), and ₹5...
• In the merger of X Ltd. and Y Ltd., it is decided that the amalgamation will be in the nature of a merger (as per AS-14). Which of the following conditions...
• Holding Ltd. owns 80% shares of Subsidiary Ltd. As on the date of consolidation, the subsidiary has reserves of ₹5 lakh, including ₹2 lakh earned befor...
• Under Ind AS 115, a construction company enters into a contract to build a dam over 4 years. Revenue is recognized over time based on cost incurred to date...
• A company purchases machinery for ₹10 lakh. Estimated dismantling cost after 5 years is ₹1 lakh. The dismantling obligation is present as per contract....
• In a processing unit, 1,000 units are introduced in Process A. 100 units are normal loss, and 50 units are abnormal loss. Cost incurred is ₹10,000. What ...
• A firm has a current ratio of 2.5 and quick ratio of 1.2. Its current liabilities are ₹4 lakh. What is the value of inventory?
• A manufacturing company prepares a flexible budget for its production costs. At 60% capacity, its total cost is ₹6,00,000, including ₹2,40,000 fixed co...
• A company purchased machinery worth ₹5 lakh during the year and repaid a long-term loan of ₹3 lakh. It generated ₹12 lakh from operations. What is th...
• An investor deposits ₹50,000 in an account offering 8% compound interest annually. What will be the maturity value after 3 years?
• A company has ₹10 lakh in equity and ₹10 lakh in 10% debt. EBIT is ₹4 lakh and tax rate is 30%. What is the financial leverage?
• A project requires ₹4 lakh initial investment and yields ₹1 lakh annually for 5 years. If the cost of capital is 10%, what is the Net Present Value (NP...
• A firm evaluates two projects with identical expected cash flows, but Project A has higher variability. If the firm is risk-averse, what would be its decis...
• Mr. Arjun earns ₹12 lakh as salary and has invested ₹1.5 lakh in PPF. He also pays ₹30,000 as health insurance premium for himself and ₹50,000 for ...
• As per the Companies Act, 2013, which of the following companies must appoint a full-time Company Secretary?
• A company purchased land in 2010 for ₹10 lakh. In 2025, its market value rose to ₹60 lakh. However, the company continues to record it at ₹10 lakh. W...
• A firm wants to classify its expenses by nature (salaries, depreciation, rent, etc.) in its Income Statement. According to Schedule III of Companies Act, w...
• XYZ Ltd. plans a buyback of 10 lakh equity shares at ₹200 each. Face value is ₹10. The company will use reserves for this. What impact will it have on ...
• Parent Ltd. owns 80% of Subsidiary Ltd. The subsidiary reports a profit of ₹10 lakh during the year. How much of this profit should be added to consolida...
• According to Ind AS 16, if the cost of dismantling a plant in future is ₹5 lakh, and there's a present obligation, how should this be treated?