Practice Basic Accounting Concepts Questions and Answers

• 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...
• Which of the following document provides details of tax and non-tax revenue receipts and capital receipts and explains the estimates?
• Recently SEBI has issued a master circular on the redressal of investor grievances through the which of the following platform?
• Which insurance firm recently launched Emerging Opportunity Fund, which will invest in mid-cap companies and emerging market leaders with the potential to ...
• Which loan does not require the borrower to pay back during their lifetime?
• Deferred Tax Liabilities’ is shown under which of the following heads in a Balance sheet as per the format given in Companies Act, 2013?
• Which of the following statements about Net Owned Fund (NOF) requirement for ARCs is true?
• What are the eligible investors under the Fully Accessible Route (FAR)?
• If the company earned revenue from operations of Rs.18 lakh, what is the working capital turnover ratio of the company?
• What is LIBOR?
• What is the primary purpose of the money market?
• What is the maturity period for Treasury Bills?
• What is a Private Placement?
• In a Public-Private Partnership (PPP), what is the purpose of Viability Gap Funding (VGF)?
• Which of the following is NOT a component of the CAMELS rating system used for bank evaluation?
• W hich of the following types of account best describes a “Provision for doubtful assets” account ?  
• The Indian Accounting Standard (Ind AS) 1 deals with the requirements for presenting general purpose financial statements consisting of the Balance Sheet, ...
• Which of the following accounting concept is the same as the accrual concept?
• As per the accounting standards, impairment loss on an asset occurs when recoverable amount is less than the carrying amount. Which of the following correc...
• Revenue from Contracts with Customers is detailed by the Ind AS 115 that talks about revenue recognition from a contract with a customer for transfer of go...
• A company initiated the process of raising money by issue of equity shares. It received the share application money, but the allotment is pending. The mone...
• As per accounting standards, inventory is to be valued at cost or net realizable value. Which of the accounting principle forms the basis of this standard?...
• The Black-Scholes model is used for the pricing of:
• If a company delays publishing its quarterly financials, which qualitative characteristic is most negatively impacted?
• An ESOP (Employee stock ownership plan) is an employee benefit plan which offers employees an ownership interest in the organisation. Which of the followin...
• Which qualitative characteristic is MOST directly supported when different accountants, using the same data and assumptions, arrive at the same financial r...
• A company uses the Written Down Value (WDV) method to calculate depreciation on its fixed assets. On which of the following value of the fixed asset, will ...
• Depreciation is charged as per which accounting principle?
• MTG Ltd wants to buyback its shares. What is the maximum limit up to which it is allowed to buy-back its shares in a year?
• With respect to rights issue of shares, the Right of Renunciation allows existing shareholders to:
• A company decides not to record a calculator worth Rs.500 as a fixed asset and instead expenses it off. Which accounting concept is being applied?
• A company announces rights issue in the ratio of 1:4. The face value of the share is Rs.10 and market value is Rs.70. If the rights issue is done at Rs.50,...
• Which of the following is not true about nominal capital? 
• Which statement about cash-settled share-based payments is true? 
• Which accounting principle requires that financial statements are prepared for a specific period? 
• The following data relates to a semi-variable factory overhead: Using the High–Low Method, the fixed cost is:...
• A company shows the following balance sheet figures (₹ in crore): Equity 40, Reserves 20, Term Loan 60, Current Assets 80 and Current Liabilities 40. The...
• Using the same balance sheet data (Equity 40, Reserves 20, Term Loan 60, Current Liabilities 40), the bank wants to evaluate the long‑term solvency posit...
• Based on the same balance sheet data, the credit officer also wants to compute the capital gearing level of the borrower. Debt consists only of the term lo...
• A term loan installment and interest both remain overdue for more than 90 days. However, interest has been serviced once during this period but principal r...