Practice Basic Accounting Concepts Questions and Answers

• What among the following is the item related to off- balance sheet exposure? A.    Deposits B.    Guarantee C.   Call Options ...
• MNP Inc has a gross profit of Rs 75000 on a sale of Rs 350000. The balance sheet shows average total assets of Rs 200000 with an average inventory of Rs 50...
• NMO Inc has the following accounting information Current Assets at the beginning of a year = Rs 580 Current Assets at the end of a year = Rs 620 Current ...
•   ABC Inc’s Income statement shows a sale of Rs 2000, COGS of Rs 800, Pre-Interest Operating Expenses of Rs 600 and Interest expenses of Rs 200. Interes...
• Mr. X has purchased an index option with a strike price of Rs 1500. What will be his net gain or loss if the price of an index at maturity is Rs 1550 and t...
• Owners’ equity is shown as the liability in the balance sheet. This is based on the accounting concept:
• Which one of the following is not a purpose of "credit monitoring"?
• What does cash flow means in accounting parlance?
• In a period of rising prices and stable inventory quantities, which of the following best describes the effect on gross profit of using LIFO as compared to...
• The discount rate that makes the present value of expected cash flows from the project equal to the initial cost of the project is called:
• Which one of the following is a second method of Calculation of Maximum Permissible Bank finance recommded by Tandon Committee?
• Based on the following information- calculate the initial investment in the project. Cost of machine = Rs. 54,00,000 Installation charges = Rs. 12,000 S...
• A company issues 5,00,000 shares in the market. The face value of each share is Rs.2, the book value is Rs.10 and the market value is Rs.15. What is the ne...
• Match the following: Term Feature A.    CDO 1)    Pooled cash-flows sold to investors in discreet tranch...
• Which of the following has a direct impact on human resource objectives?
• Which of the following concepts describes the line of authority should flow from top management to bottom?
• The Reserve Bank of India (RBI) uses the monetary policy to manage liquidity or _____ in a manner that balances inflation and at the same time aids growth....
• What is the difference between GVA and GDP?
• NPS is regulated by _____
• The Bank overdraft repayable on demand will be reported in the cash flow statement as _____
• What is the Current Ratio of JKL Ltd based on given information?
• A company reported net profit before tax of Rs.36,100. It has raised debt capital of Rs.250,000 through 13% debentures. What is the interest coverage ratio...
• What is the minimum vesting period in case of ESOPs?
• An asset bought at Rs.10 lakh was sold for Rs.4 lakh after 3 years. What is the depreciation charged on the asset per year as per straight line method?
• A company has opening balance of debtors of Rs.3 lakh. If the doubtful provision is 5% and discount is 2%, what is the net balance of debtors at the end of...
• What will be the BEP in units when the sales price is Rs.40 per unit, fixed cost is Rs.60000 and the PV ratio is 40%?
• Calculate the valuation of closing stock using simple average method from the following information: ·         100 units purchased for 20 each ·�...
• As per AS- 2 what should be the valuation of inventory from the following information: Purchase Price = 2000 Trade Discount = 200 Cash Discount = 100 Deliv...
• Which of the following statement is incorrect with respect to provisions?
• Which of the following is eligible for appointment as an auditor of a company?
• How many directors can be appointed by small shareholders in a company?
• Which of the following statements is incorrect regarding monopolistic competition?
• The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) of the Government of India is available to people in the age group of having a bank account who give t...
• Which of the following Schemes of Government contributed towards Inclusive Growth of India? I- Mahatma Gandhi National Rural Employment Guarantee Act (MGNR...
• Sukanya Samriddhi Account Scheme is one of the major schemes of Government of India targeted at the parents of girl children. The scheme encourages parents...
• Which of the following is the major objective of Rashtriya Gram Swaraj Abhiyan?
• Income limit for rebate of income tax increased from ₹5 lakh to ____ lakh in the new regime of Budget of 2023-24.
• Every individual subscriber is issued a Permanent Retirement Account Number (PRAN) under NPS. How many digits are there in PRAN?
• The Union Budget for 2018-19 announced that farmers in India would be given an MSP of at least one and a half times the cost of production. Accordingly, th...
• Recently RBI approved five banks to work with it on a pilot project for its digital currency -- the Digital Rupee, which of the following is not in the lis...