Practice Accounts Questions and Answers

• A project has NPV of ₹5 lakh and standard deviation of cash flows is high. What does it indicate?
• A company manufactures two products, A and B. The contribution per unit for A is ₹50 and for B is ₹60. Each unit of A requires 4 machine hours, and B r...
• A firm has the following details: • Raw material holding: 25 days • WIP: 15 days • Finished goods: 20 days • Receivables: 30 days • Payables: 40 ...
• An enterprise consumes 25,600 units of a component annually. The order cost is ₹600 per order, and carrying cost is ₹12/unit/year. A supplier offers th...
• A company has Net Sales of ₹1,000 lakhs, Net Profit of ₹80 lakhs, Total Assets of ₹750 lakhs, and Equity of ₹250 lakhs. Calculate Return on Equity ...
• XYZ Ltd. reported a net profit of ₹120 lakhs for the year ended 31st March 2025. The depreciation for the year was ₹20 lakhs, and amortization of goodw...
• A factory has direct material cost of ₹2,40,000 and direct labour of ₹1,60,000 for a batch of 1,000 units. Factory overheads are absorbed at 75% of dir...
• The following balances are available for a company: Cash: ₹5L, Inventory: ₹12L, Debtors: ₹10L, Short-term investments: ₹3L Accounts payable: ₹8L,...
• Sales = ₹200 lakhs, Variable cost = ₹120 lakhs, Fixed cost = ₹30 lakhs Interest = ₹10 lakhs Calculate (i) Operating Leverage and (ii) Financial Lev...
• A company purchases machinery for ₹10 lakhs and incurs ₹1 lakh on its installation. The accountant records the total ₹11 lakhs under the fixed asset ...
• A company pays insurance premium of ₹24,000 for 12 months in advance in March 2025 for the period January 2025 to December 2025. The accountant records t...
• Which of the following scenarios correctly reflects the going concern assumption?
• A bill of ₹2,00,000 is drawn for 90 days and discounted at 10% p.a. Calculate the amount of discount and proceeds received. Assume 360 days in a year. ...
• A company has annual credit sales of ₹36 crore. Its trade receivables as on 31st March 2025 are ₹3.6 crore, of which ₹0.6 crore are more than 6 month...
• XYZ Ltd. buys software for ₹10 lakh, with a license period of 3 years. How should it treat this in books?
• A project has IRR of 14% and NPV of ₹5 lakhs at 10% cost of capital. If cost of capital rises to 16%, what will happen to NPV?
• ABC Ltd., a manufacturing company, undertook a series of transactions during the financial year 2024–25. It purchased a new plant worth ₹1,000 lakh and...
• XYZ Ltd. purchases raw materials for ₹5,00,000 and pays transportation charges of ₹50,000 and GST of ₹90,000. The GST is recoverable. What amount sho...
• Gamma Textiles Ltd. manufactures a single product with the following cost structure: • Selling Price per unit: ₹500 • Variable Cost per unit: ₹300 ...
• Omega Ltd. has idle capacity and receives a special export order for 2,000 units at ₹420 per unit. Normal price = ₹500. Unit variable cost = ₹350. Fi...
• XYZ Ltd. has furnished the following details to the bank while seeking working capital finance for the upcoming financial year: • Total Current Assets (T...
• A company follows FIFO method of inventory valuation every year. Which accounting principle is being followed?
• Which of the following types of entities are mandatorily required to adopt Ind AS?
• Under Ind AS 116, which of the following is true for lessees?
• Under Ind AS 16, after initial recognition, an entity can measure PPE using:
• XYZ Ltd. incurred R&D expenses of ₹20 lakhs for developing a new product. The product has not yet reached the commercialisation stage. How should the amo...
• Under the Income Tax Act, 1961, which of the following incomes is exempt from tax in the hands of an individual?
• ABC Ltd., a manufacturing company, undertook a series of transactions during the financial year 2024–25. It purchased a new plant worth ₹1,000 lakh and...
• A company manufactures two products, A and B. The contribution per unit for A is ₹50 and for B is ₹60. Each unit of A requires 4 machine hours, and B r...
• A company has Net Sales of ₹1,000 lakhs, Net Profit of ₹80 lakhs, Total Assets of ₹750 lakhs, and Equity of ₹250 lakhs. Calculate Return on Equity ...
• XYZ Ltd. reported a net profit of ₹120 lakhs for the year ended 31st March 2025. The depreciation for the year was ₹20 lakhs, and amortization of goodw...
• A factory has direct material cost of ₹2,40,000 and direct labour of ₹1,60,000 for a batch of 1,000 units. Factory overheads are absorbed at 75% of dir...
• The following balances are available for a company: Cash: ₹5L, Inventory: ₹12L, Debtors: ₹10L, Short-term investments: ₹3L Accounts payable: ₹8L,...
• A company purchases machinery for ₹10 lakhs and incurs ₹1 lakh on its installation. The accountant records the total ₹11 lakhs under the fixed asset ...
• A company pays insurance premium of ₹24,000 for 12 months in advance in March 2025 for the period January 2025 to December 2025. The accountant records t...
• Which of the following scenarios correctly reflects the going concern assumption?
• A firm has the following details: • Raw material holding: 25 days • WIP: 15 days • Finished goods: 20 days • Receivables: 30 days • Payables: 40 ...
• XYZ Ltd. purchases raw materials for ₹5,00,000 and pays transportation charges of ₹50,000 and GST of ₹90,000. The GST is recoverable. What amount sho...
• Gamma Textiles Ltd. manufactures a single product with the following cost structure: • Selling Price per unit: ₹500 • Variable Cost per unit: ₹300 ...
• Omega Ltd. has idle capacity and receives a special export order for 2,000 units at ₹420 per unit. Normal price = ₹500. Unit variable cost = ₹350. Fi...