Practice Accounts Questions and Answers

• XYZ Ltd. has furnished the following details to the bank while seeking working capital finance for the upcoming financial year: • Total Current Assets (T...
• Section 80EEB of the Income Tax Act provides deduction on:
• The concept of Tax Treaty-Based Exemption (TTB) typically applies when:
• Section 115JAA allows which of the following?
• What is the maximum number of directorships a person can hold in Indian companies as per Companies Act, 2013?
• What is the minimum quorum required for a general meeting of a public company having 10,000 members?
• When a minor admitted to the benefits of a partnership attains majority, within how many months must they decide whether or not to continue as a partner an...
• XYZ Ltd has the following financial data: • Inventory Holding Period: 90 days • Receivables Collection Period: 60 days • Payables Deferral Period: 45...
• A firm reports: • Net sales: ₹500 lakh • Gross profit: ₹125 lakh • Operating expenses: ₹50 lakh • Interest: ₹15 lakh • Tax: ₹20 lakh �...
• A company produces a single product with the following cost structure: • Selling price per unit: ₹500 • Variable cost per unit: ₹300 • Fixed cost...
• A general insurance company reports the following: • Premium earned: ₹100 crore • Claims paid: ₹70 crore • Claims outstanding: ₹5 crore • Com...
• An asset is purchased for ₹10,00,000. Salvage value is ₹1,00,000. Useful life is 5 years. Using WDV @ 10%, what is the depreciation in year 3?
• An insured house valued at ₹40 lakh is insured for ₹20 lakh. A fire causes ₹10 lakh damage. What will be the claim amount under the average clause?
• Given: • Net income: ₹30 lakh • Depreciation: ₹10 lakh • Increase in inventory: ₹5 lakh • Decrease in payables: ₹4 lakh • Increase in rec...
• A fire loss incurred but not reported by balance sheet date is classified as:
• Which entity generally initiates securitization?
• According to the MSME policy, the startup status of a company ceases if its turnover exceeds ____ or it has completed ____ years from incorporation.
• If an MSME moves to a higher category due to reclassification, for how many years can it continue to avail benefits of the previous category (non-tax benef...
• What is the minimum number of members required to form a Private Limited Company in India?
• What is the minimum and maximum number of directors required in a Private Limited Company in India?
• How many persons are required to form a One Person Company (OPC) under the Companies Act, 2013?
• Which of the following statements is INCORRECT regarding Priority Sector Lending (PSL)?
• Under CGTMSE, what is the general provisioning requirement on loans covered under guarantee in case of default?
• Which of the following documents is NOT accepted as valid proof for opening a current account by a sole proprietor?
• What is the purpose of performing Due Diligence by banks under KYC norms?
• Which of the following best defines a Shell Bank under RBI KYC directions?
• Who is considered a Beneficial Owner under RBI KYC norms?
• Which of the following best describes the Interest Coverage Ratio (ICR)?
• Which of the following ratios is a measure of a firm's short-term liquidity position?
• A company has current assets worth ₹6,00,000 and current liabilities worth ₹3,00,000. What is its current ratio?
• If the annual sales of a business are ₹X, what is the Maximum Permissible Bank Finance (MPBF) as per the Turnover Method?
• If a firm has current assets worth ₹6 crore and current liabilities (excluding bank finance) of ₹3 crore, what is the maximum permissible bank finance ...
• A business has monthly cash inflows of ₹10 lakh and monthly outflows of ₹12 lakh. What is the working capital requirement as per the Cash Budget Method...
• What is the maximum loan amount that can be assessed under the Nayak Committee's Turnover Method?
• How is working capital provided by banks calculated under the Turnover Method?
• Monthly purchases = ₹20 lakh, lead time = 2 months. What is the LC amount required for an Inland Letter of Credit (LC)?
• An LC limit of ₹48 lakh is sanctioned, and the lead time is 3 months. What is the projected annual purchase of raw material?
• If annual purchases = ₹240 lakh and lead time = 2 months, how many LCs are needed in a year?
• Under which type of Letter of Credit (LC) is advance payment allowed to the beneficiary before shipment?
• Which of the following is NOT a direct party to a Letter of Credit (LC)?