1- Sales Mustafa of Rs 10,000 not recorded in the books would affect:
A). Sales Account
B). Mustafa Account
C). Sales Account and Mustafa Account✔️
D). None of the above
2- Depreciation is a process of:
A). Valuation
B). Allocation✔️
C). Both A & B
D). None of these
3- Loss on sale of an asset should be written off against:
A). Share premium account
B). Sales account
C). Depreciation fund account
D). None of the above✔️
4- Income and expenditure account reveals:
A). Cash in hand
B). Surplus or deficiency✔️
C). Capital account
D). None of the above
5- The cost of goods and service used up in the process of obtaining revenue are called:
A). Net Income
B). Revenue
C). Expenses✔️
D). Liabilities
6- The correct form of Accounting equation is:
A). Assets+ Liabilities= equity
B).Assets-Liabilities= equity
C) Assets- Receivable= equity
D). Assets+ Receivable= equity✔️
7- What type of budget is designed to take into account forecast changes in costs, prices etc.
A). Rolling budget
B). Functional budget
C). Flexible budget✔️
D). Master budget
8- Working Capital is the:
A). Effective capital of the company when the business is in full swing.
B). Capital borrowed from the bank
C). Difference between the current assets and current Liabilities✔️
D). None of them
9- The most acceptable method of measuring income is:
A).To match the costs with revenue
B). To find out the difference in net worth as on two dates✔️
C). To apply normal rate of return on capital invested.
D). None of above
10- Up what level Agriculture income is exempt from tax?
A).Rs 80,000✔️
B).Rs 100,000
C).Futally exempt
D). Totally taxable
11- Average relief is available on the following except:
A). Donation for Charitable purpose
B). Investment in Shares
C). Retirement Annuity scheme✔️
D). None of above
12- Special tax relief is granted to a senior citizen if his age is:
A).50 years or above
B).60 years or above✔️
C).65 years or above
D). None of the above
13- When preparing balance sheet of a company. Goodwill, patents, Trade Mark and designs come under the head of:
A). Fixed Assets✔️
B). Fictitious Assets
C). Current Assets
D). None of the above
14-The role of finance function in the future will be:
A). Tactical
B). Professional Advisor✔️
C). Stewards
D). None of above
15- In principle current Assets are financed from:
A). Retained Earning
B). Long term debt
C). Issue of fresh Capital✔️
D). Current Liabilities
16- A Non-banking assets is:
A). Item of office equipment
B). Bank premises
C). Both A & B
D). None of the above✔️
17- A balance sheet is prepared to find out Financial position of a firm:
A). For a specified period
B). On a particular date✔️
C). At the time of sale of business
D). None of these
18- Assets would be overstated if necessary adjusting entry was omitted for:
A). Expired Insurance✔️
B). Accrued Salaries
C).Accrued interest Earned
D). None of these
19- Which of the following is not an intangible asset?
A).A patent
B). A trademark
C). An investment in marketable securities
D). None of these✔️
20- Advance payment are recognized as:
A). Receivable
B). Payable✔️
C). Deadbolt
D). None of these
21- If sales increase by 10% from year 1 to 2 and cost of goods sold increase only 6% , the gross profit on sales will increase by:
A).4%✔️
B).10%
C).6%
D). None of these
22- Which of the following amounts appears in both the income statement and balance sheet?
A). Net Income✔️
B). Accumulated depreciation
C). Dividends
D). None of these
23- In projecting the future profitability of a trading company, investors will be least concerned with changes in:
A). The gross profit rate✔️
B).The quick ratio
C). Sales volume
D). None of these
24- Revenue is most commonly recognized at time when:
A). Cash is collected
B). The order is received from customers
C). The sale in made✔️
D). None of these
25- Which of the following is ascertained by drawing up an income and expenditure account?
A). Cash is hand
B). Surplus or deficiency✔️
C). Capital Fund
D). None of these
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