tag:blogger.com,1999:blog-18749565387247580402024-03-25T19:27:48.682+05:30Finance and Accounting terminologyaccounting glossary and finance glossary with fullfledged information for preparing interview purpose and improving skills in finance and accountingChandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.comBlogger43125tag:blogger.com,1999:blog-1874956538724758040.post-34315172169803200512012-07-12T08:11:00.000+05:302012-07-12T08:11:06.881+05:30Accounting Standard 3 -CASH FLOW STATEMENT<div dir="ltr" style="text-align: left;" trbidi="on">
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Greetings to fellow blog readers......</div>
<br />
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<b><span style="font-size: 16.0pt; mso-bidi-font-size: 12.0pt;">AS – 3<o:p></o:p></span></b></div>
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<span style="font-size: 16.0pt; mso-bidi-font-size: 12.0pt;">CASH FLOW
STATEMENT<o:p></o:p></span></div>
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<b>Definitions:<o:p></o:p></b></div>
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<b><u>Cash</u></b><b><u><span style="font-size: 16.0pt; mso-bidi-font-size: 12.0pt;"> </span></u></b>comprises
cash on hand and cash at bank. (Demand Deposits with bank)</div>
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<br /></div>
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<b><u>Cash
Equivalents</u> </b>are </div>
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<!--[if !supportLists]--><span style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">v<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]-->Short Term</div>
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<!--[if !supportLists]--><span style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">v<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]-->Highly Liquid Investments (Maturity around 3
months)</div>
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<!--[if !supportLists]--><span style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">v<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]-->Subject to insignificant risk of changes in
value.</div>
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<br /></div>
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<b><u>Cash Flows </u></b>are
inflows and outflows of cash and cash equivalents.</div>
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<br /></div>
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<b><u>Cash Flow
Statement </u></b>represents the cash flows during the specified period by
operating, investing and financing activities.</div>
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<br /></div>
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<b><u>Operating
Activities </u></b>are the principal revenue-producing activities of the
enterprise and other activities that are not investing activities and financing
activities.</div>
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<u>Example:</u></div>
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1] Cash receipts from
sales of goods/services</div>
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2] Cash receipts from
royalties, fees and other revenue items</div>
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3] Cash payments for
salaries, wages and rent</div>
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4] Cash payment to suppliers
for goods</div>
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5] Cash payments or
refunds of Income Tax unless they can be specifically identified with
financing or investing
activities</div>
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6] Cash receipts and
payments to future contracts, forward contracts when the contracts are held for
trading purposes.</div>
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<br /></div>
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Cash from operating
activities can be disclosed either by DIRECT METHOD OR BY INDIRECT METHOD.</div>
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<br /></div>
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<b><u>Investing
Activities </u></b>are the acquisition and disposal of long-term assets and
other investments not included in cash equivalents.</div>
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<u>Example:<o:p></o:p></u></div>
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1] Cash
payments/receipts to acquire/sale of fixed assets including intangible assets</div>
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2] Cash payments to
acquire shares or interest in joint ventures (other than the cases where
instruments are considered as cash equivalents)</div>
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3] Cash advances and
loans made to third parties (Loan sanctioned by a financial enterprise is
operating activity)</div>
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4] Dividends and
Interest received</div>
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5] Cash flows from
acquisitions and disposal of subsidiaries</div>
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<br /></div>
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<b><u>Financing
Activities </u></b>are activities that result in changes in the size and composition
of the owners’ capital (including preference share capital in the case of a
company) and borrowing of the enterprise.</div>
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<u>Example:<o:p></o:p></u></div>
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1] Cash proceeds from
issue of shares and debentures</div>
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2] Buy back of shares</div>
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3] Redemption of
Preference shares or debentures</div>
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4] Cash repayments of
amount borrowed.</div>
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5] Dividend and
Interest paid</div>
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<br /></div>
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<br /></div>
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An enterprise should
report separately major classes of gross cash receipts and gross cash payments
arising from investing and financing activities.</div>
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However, cash flows
from following activities may be reported on a net basis.</div>
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<!--[if !supportLists]--><span style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">v<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]-->Cash receipts and payments on behalf of
customers</div>
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For example: Cash collected on behalf of, and paid
over to, the owners of properties.</div>
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<!--[if !supportLists]--><span style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">v<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]-->Cash flows from items in which turnover is
quick, the amounts are large and the maturities are short.</div>
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For example: Purchase and sale of investments</div>
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<!--[if !supportLists]--><span style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">v<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><u>For financial enterprise:</u> Cash receipts
and payments for the acceptance and repayment of deposits with a fixed maturity
date.</div>
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<!--[if !supportLists]--><span style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">v<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><u>For financial enterprise:</u> Deposits
placed/withdrawn from other financial enterprises</div>
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<!--[if !supportLists]--><span style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">v<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><u>For financial enterprise: </u>Cash advances
and loans made to customers and the repayment of those advances and loans.</div>
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<br /></div>
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<u>Foreign Currency
Cash Flows:<o:p></o:p></u></div>
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<br /></div>
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Cash
flows arising in foreign currency should be recorded in enterprise’ reporting
currency applying the exchange conversion rate existing on the date of cash
flow. </div>
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<br /></div>
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The
effect of changes in exchange rates of cash and cash equivalents held in
foreign currency should be reported as separate part of the reconciliation of
the changes in cash and cash equivalents during the period.</div>
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<br /></div>
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<u>Extraordinary
Items: </u>These items should be separately shown under respective heads of
cash from operating, investing and financing activities.</div>
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<br /></div>
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Investing
and financing transactions that do not require the use of cash and cash
equivalents should be excluded from a cash flow statement. For Example</div>
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A]
The conversion of debt to equity</div>
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B]
Acquisition of an enterprise by means of issue of shares</div>
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<br /></div>
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<u>Other
Disclosure:<o:p></o:p></u></div>
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Components of cash
and cash equivalents.</div>
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Reconciliation of
closing cash and cash equivalents with items of balance sheet.</div>
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The amount of
significant cash and cash equivalent balances held by the enterprise, which are
not available for use by it.</div>
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<br /></div>
</div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com10tag:blogger.com,1999:blog-1874956538724758040.post-50168270233860471062012-07-12T07:54:00.000+05:302012-07-12T08:03:46.431+05:30Accounting Standards – 2 VALUATION OF INVENTORY<div dir="ltr" style="text-align: left;" trbidi="on">
Greetings to fellow blog readers......<br />
<br />
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<b><span style="font-size: 18pt;">AS – 2<o:p></o:p></span></b></div>
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<br /></div>
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<b>VALUATION OF INVENTORY<o:p></o:p></b></div>
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<br /></div>
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<b>Inventories
</b>are assets:</div>
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<br /></div>
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held for sale in
ordinary course of business;</div>
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in the process
of production fro such sale (WIP);</div>
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in the form of
materials or supplies to be consumed in the production process or in the
rendering of services.</div>
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<br /></div>
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However,
this standard does not apply to the valuation of following inventories:</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -27.0pt; mso-list: l2 level1 lfo1; tab-stops: -117.0pt -1.25in list -27.0pt; text-align: justify; text-indent: -.25in;">
(a)<span style="font-size: 7pt;">
</span>WIP arising under construction contract (<st1:place w:st="on"><st1:city w:st="on">Refer</st1:city> <st1:state w:st="on">AS</st1:state></st1:place>
– 7);</div>
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(b)<span style="font-size: 7pt;">
</span>WIP arising in the ordinary course of business of
service providers;</div>
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(c)<span style="font-size: 7pt;">
</span>Shares, debentures and other financial instruments held
as stock in trade; and</div>
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(d)<span style="font-size: 7pt;">
</span>Producers’ inventories of livestock, agricultural and
forest products, and mineral oils, ores and gases to the extent that they are
measured at net realizable value in accordance with well established practices
in those industries.</div>
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<br /></div>
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<br /></div>
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Inventories
should be valued at the lower of <b>cost </b>and <b>net realizable value.</b></div>
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<br /></div>
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The
cost of inventories should comprise </div>
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<br /></div>
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(a)<span style="font-size: 7pt;">
</span>all costs of purchase</div>
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(b)<span style="font-size: 7pt;">
</span>costs of conversion</div>
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(c)<span style="font-size: 7pt;">
</span>other costs incurred in bringing the inventories to
their present location and condition.</div>
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<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
The <b>costs
of purchase </b> consist of </div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -27.0pt; mso-list: l1 level1 lfo3; tab-stops: -117.0pt -1.25in list -27.0pt; text-align: justify; text-indent: -.25in;">
(a)<span style="font-size: 7pt;">
</span>the purchase price</div>
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(b)<span style="font-size: 7pt;">
</span>duties and taxes ( other than those subsequently
recoverable by the enterprise from the taxing authorities like CENVAT credit)</div>
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(c)<span style="font-size: 7pt;">
</span>freight inwards and other expenditure directly
attributable to the acquisition.</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
Trade
discounts (but not cash discounts), rebates, duty drawbacks and other similar
items are deducted in determining the costs of purchase.</div>
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<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
The <b>costs
of conversion </b>include direct costs and systematic allocation of fixed and
variable production overhead.</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
Allocation
of fixed overheads is based on the normal capacity of the production
facilities. Normal capacity is the production, expected to be achieved on an
average over a number of periods or seasons under normal circumstances, taking
into account the loss of capacity resulting from planned maintenance.</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; tab-stops: -117.0pt -1.25in center .25in; text-align: justify; text-indent: -1.25in;">
<u>Under Recovery</u>:
Unallocated overheads are recognized as an expense in the period in which they
are incurred. </div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; tab-stops: -117.0pt -1.25in center .25in; text-align: justify; text-indent: -1.25in;">
Example: <st1:place w:st="on">Normal</st1:place> capacity = 20000 units</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; tab-stops: -117.0pt -1.25in center .25in; text-align: justify; text-indent: -1.25in;">
Production = 18000 units</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; tab-stops: -117.0pt -1.25in center .25in; text-align: justify; text-indent: -1.25in;">
Sales = 16000 units</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; tab-stops: -117.0pt -1.25in center .25in; text-align: justify; text-indent: -1.25in;">
Closing Stock = 2000
units </div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
Fixed Overheads = Rs. 60000 </div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
Then,
Recovery rate = Rs60000/20000 = Rs 3 per unit</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
Fixed Overheads will be bifurcated into
three parts:</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
Cost of
sales : 16000*3 = 48000</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
Closing stock : 2000 *3
= 6000 </div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
Under recovery : Rs 6000 ( to be charged to P/L)</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify;">
(Apparently
it seems that fixed cost element in closing stock should be 60000/18000*2000
=Rs 6666.67. but this is wrong as per AS-2) </div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
<u>Over Recovery</u>: In period of high production, the
amount of fixed production overheads is allocated to each unit of production is
decreased so that inventories.</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
Example: <st1:place w:st="on">Normal</st1:place>
capacity = 20000 units</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
Production = 25000 units</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
Sales = 23000 units</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
Closing Stock = 2000
units</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
Fixed Overheads = Rs 60000</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
Recovery
Rate = Rs 60000/20000 = Rs 3 per unit</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
But,
Revised Recovery rate = Rs
60000/25000 = Rs. 2.40 per unit</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
Cost
of sales :
23000*2.4 = Rs 55200</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
Closing
Stock : 2000 *2.4 =
Rs. 4800</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
<u>Joint or by products:<o:p></o:p></u></div>
<div class="MsoBodyTextIndent2" style="margin-left: -.5in; text-align: justify;">
In
case of joint or by products, the costs incurred up to the stage of split off
should be allocated on a rational and consistent basis. The basis of allocation
may be sale value at split off point or sale value at the completion of
production. In case of the by products of negligible value or wastes, valuation
may be taken at net realizable value. The cost of main product is then joint
cost minus net realizable value of by product or waste.</div>
<div class="MsoBodyTextIndent2" style="margin-left: -.5in; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -.5in; text-align: justify;">
<b>The
other costs </b>are also included in the cost of inventory to the extent they
contribute in bringing the inventory to its present location and condition.</div>
<div class="MsoBodyTextIndent2" style="margin-left: -.5in; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -.5in; text-align: justify;">
Interest
and other borrowing costs are usually not included in cost of inventory.
However, AS-16 recommends the areas where borrowing costs are taken as cost of
inventory.</div>
<div class="MsoBodyTextIndent2" style="margin-left: -.5in; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -.5in; text-align: justify;">
Certain
costs are strictly not taken as cost of inventory.</div>
<div class="MsoBodyTextIndent2" style="margin-left: -.25in; mso-list: l0 level1 lfo4; tab-stops: -117.0pt -1.25in list -.25in; text-align: justify; text-indent: -.25in;">
(a)<span style="font-size: 7pt;">
</span>Abnormal amounts of wasted materials, labour, or other
production costs;</div>
<div class="MsoBodyTextIndent2" style="margin-left: -.25in; mso-list: l0 level1 lfo4; tab-stops: -117.0pt -1.25in list -.25in; text-align: justify; text-indent: -.25in;">
(b)<span style="font-size: 7pt;">
</span>Storage costs, unless those costs are necessary in the
production process prior to a further production stage;</div>
<div class="MsoBodyTextIndent2" style="margin-left: -.25in; mso-list: l0 level1 lfo4; tab-stops: -117.0pt -1.25in list -.25in; text-align: justify; text-indent: -.25in;">
(c)<span style="font-size: 7pt;">
</span>Administrative overheads that do not contribute to
bringing the inventories to their present location and condition; and</div>
<div class="MsoBodyTextIndent2" style="margin-left: -.25in; mso-list: l0 level1 lfo4; tab-stops: -117.0pt -1.25in list -.25in; text-align: justify; text-indent: -.25in;">
(d)<span style="font-size: 7pt;">
</span>Selling and Distribution costs.</div>
<div class="MsoBodyTextIndent2" style="margin-left: -.5in; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -.5in; text-align: justify;">
<b>Cost
Formula:<o:p></o:p></b></div>
<div class="MsoBodyTextIndent2" style="margin-left: .25in; mso-list: l0 level2 lfo4; tab-stops: -117.0pt -1.25in list .25in; text-align: justify; text-indent: -.25in;">
<span style="font-family: Wingdings;">ð<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Specific
identification method for determining cost of inventories<b><o:p></o:p></b></div>
<div class="MsoBodyTextIndent2" style="margin-left: .25in; text-align: justify;">
Specific
identification method means directly linking the cost with specific item of
inventories. This method has application in following conditions:</div>
<div class="MsoBodyTextIndent2" style="margin-left: 63.0pt; mso-list: l0 level3 lfo4; tab-stops: -117.0pt -1.25in list 63.0pt; text-align: justify; text-indent: -.25in;">
<span style="font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span>In case of purchase of item specifically
segregated for specific project and is not ordinarily interchangeable.</div>
<div class="MsoBodyTextIndent2" style="margin-left: 63.0pt; mso-list: l0 level3 lfo4; tab-stops: -117.0pt -1.25in list 63.0pt; text-align: justify; text-indent: -.25in;">
<span style="font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span>In case of goods of services produced and
segregated for specific project.</div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: 0in; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: .25in; mso-list: l0 level2 lfo4; tab-stops: -117.0pt -1.25in list .25in; text-align: justify; text-indent: -.25in;">
<span style="font-family: Wingdings;">ð<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span>Where Specific Identification method is not
applicable</div>
<div class="MsoBodyTextIndent2" style="margin-left: .25in; text-align: justify;">
The
cost of inventories is valued by the following methods; </div>
<div class="MsoBodyTextIndent2" style="margin-left: 117.0pt; tab-stops: -117.0pt -1.25in list 117.0pt; text-align: justify; text-indent: -.25in;">
FIFO ( First In
First Out) Method</div>
<div class="MsoBodyTextIndent2" style="margin-left: 117.0pt; tab-stops: -117.0pt -1.25in list 117.0pt; text-align: justify; text-indent: -.25in;">
Weighted Average
Cost</div>
<div class="MsoBodyTextIndent2" style="margin-left: 0in; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
<b>Cost of inventories in certain conditions:<o:p></o:p></b></div>
<div class="MsoBodyTextIndent2" style="margin-left: 45.0pt; text-align: justify; text-indent: -81.0pt;">
The following methods may be used for convenience if the
results approximate actual cost.</div>
<div class="MsoBodyTextIndent2" style="margin-left: 9.0pt; mso-list: l3 level1 lfo5; tab-stops: -117.0pt -1.25in list 9.0pt; text-align: justify; text-indent: -.25in;">
<span style="font-family: Wingdings;">ð<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><u>Standard Cost: </u>It takes into account
normal level of consumption of material and supplies, labour, efficiency and
capacity utilization. It must be regularly reviewed taking into consideration
the current condition.</div>
<div class="MsoBodyTextIndent2" style="margin-left: 9.0pt; mso-list: l3 level1 lfo5; tab-stops: -117.0pt -1.25in list 9.0pt; text-align: justify; text-indent: -.25in;">
<span style="font-family: Wingdings;">ð<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><u>Retail Method:</u> Normally applicable for
retail trade</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
Cost of inventory is determined by reducing the gross margin from the
sale </div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
value of inventory.</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<b>Net
Realisable Value </b>means the estimated selling price in ordinary course of
business, at the time of valuation, less estimated cost of completion and
estimated cost necessary to make the sale.<b> <o:p></o:p></b></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<u>Comparison
between net realizable value and cost of inventory<o:p></o:p></u></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
The
comparison between cost and net realizable value should be made on item-by-item
basis. (In some cases, group of items-by-group of item basis)</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
For
Example:</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
Cost NRV Inventory Value as per AS-2</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
Item
A 100 <b>90</b> 90</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
Item
B <b>100</b> 115 100</div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
Total <b>200</b> 205 <s>200</s> <b><u>190
<o:p></o:p></u></b></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
<u>Raw
material valuation</u> </div>
<div class="MsoBodyTextIndent2" style="margin-left: -45.0pt; text-align: justify;">
If
the finished goods to which raw material is applied, is sold at profit, RAW
MATERIAL is valued at cost irrespective of its NRV level being lower to its
costs.</div>
</div>
Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com10tag:blogger.com,1999:blog-1874956538724758040.post-51016428527126313982012-07-03T22:37:00.003+05:302012-07-03T22:37:49.059+05:30Accounting Standard -1Disclosure Of Acounting Policy<div dir="ltr" style="text-align: left;" trbidi="on">
<h3 style="text-align: left;">
<span style="font-weight: normal;"><span style="font-family: 'Trebuchet MS', sans-serif;">Greetings to fellow blog readers......</span></span></h3>
<h2 style="text-align: center;">
AS-1-Disclosure Of Acounting Policy</h2>
<br />
<div class="MsoBodyTextIndent2" style="text-align: justify;">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><b> <u>Accounting
policies</u> </b>are the specific <a href="http://finance-terminology.blogspot.in/search/label/accounting">accounting</a> principles and the methods of
applying those principles adopted by an enterprise in the preparation and
presentation of financial statements.</span></div>
<div class="MsoBodyTextIndent2" style="text-align: justify;">
</div>
<ol>
<li><span style="background-color: white; text-indent: -0.25in;"><span style="font-family: Times, 'Times New Roman', serif; font-size: large;">All significant accounting policies should be
disclosed.</span></span></li>
<li><span style="background-color: white; text-indent: -0.25in;"><span style="font-family: Times, 'Times New Roman', serif; font-size: large;">Such disclosure form part of financial statements.</span></span></li>
<li><span style="background-color: white; text-indent: -0.25in;"><span style="font-family: Times, 'Times New Roman', serif; font-size: large;">All disclosures should be made at one place.</span></span></li>
<li><span style="background-color: white; text-indent: -0.25in;"><span style="font-family: Times, 'Times New Roman', serif; font-size: large;">Specific disclosure for the adoption of fundamental
accounting assumptions is not required.</span></span></li>
<li><span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><span style="background-color: white; text-indent: -0.25in;"> </span><span style="background-color: white; text-indent: -0.25in;">Disclosure of accounting policies cannot remedy a wrong
or inappropriate treatment of the item in the accounts.</span></span></li>
</ol>
<br />
<div class="MsoBodyTextIndent2" style="text-align: justify;">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><o:p> </o:p><span style="background-color: white;">Any change in accounting
policies which has a material effect in the current period or which is
reasonably expected to have material effect in later periods should be
disclosed.</span></span></div>
<div class="MsoBodyTextIndent2" style="text-align: justify;">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"> In the case of a change
in accounting policies, which has a material effect in the current period, the
amount by which any item in the financial statements is affected by such change
should also be disclosed to the extent ascertainable. Where such amount is not
ascertainable, the fact should be indicated.</span></div>
<div class="MsoBodyTextIndent2">
<br /></div>
<div class="MsoBodyTextIndent2">
<b><span style="font-family: Times, 'Times New Roman', serif; font-size: large;">Fundamental Accounting Assumption: (GCA)
:</span></b></div>
<div class="MsoBodyTextIndent2">
</div>
<ol style="text-align: left;">
<li><span style="background-color: white; font-family: Times, 'Times New Roman', serif; font-size: large;">Going Concern</span></li>
<li><span style="background-color: white;"><span style="font-family: Times, 'Times New Roman', serif; font-size: large;">Consistency</span></span></li>
<li><span style="background-color: white;"><span style="font-family: Times, 'Times New Roman', serif; font-size: large;">Accrual</span></span></li>
</ol>
<br />
<div class="MsoBodyTextIndent2">
<span style="background-color: white; font-family: Times, 'Times New Roman', serif; font-size: large;"><b>Major considerations governing the selection of
accounting policies:</b></span></div>
<ul style="text-align: left;">
<li><span style="background-color: white; font-family: Times, 'Times New Roman', serif; font-size: large;">Prudence</span></li>
<li><span style="background-color: white;"><span style="font-family: Times, 'Times New Roman', serif; font-size: large;">Substance over form (Logic over Law)</span></span></li>
<li><span style="background-color: white; font-family: Times, 'Times New Roman', serif; font-size: large;">Materiality</span></li>
</ul>
<br />
<div class="MsoBodyTextIndent2">
<br /></div>
<div class="MsoBodyTextIndent2" style="text-align: justify;">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">The following are
examples of the areas in which different accounting policies may be adopted by
different enterprises:</span></div>
<div class="MsoBodyTextIndent2" style="text-align: justify;">
<br /></div>
<div class="MsoBodyTextIndent2" style="margin-left: 9.0pt; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.75in;">
<!--[if !supportLists]--><span style="font-family: Times, 'Times New Roman', serif; font-size: large;">-
<!--[endif]-->Methods of <a href="http://finance-terminology.blogspot.in/search/label/depriciation">depreciation</a></span></div>
<div class="MsoBodyTextIndent2" style="margin-left: 9.0pt; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.75in;">
<!--[if !supportLists]--><span style="font-family: Times, 'Times New Roman', serif; font-size: large;">-
<!--[endif]-->Methods of translation of foreign currency</span></div>
<div class="MsoBodyTextIndent2" style="margin-left: 9.0pt; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.75in;">
<!--[if !supportLists]--><span style="font-family: Times, 'Times New Roman', serif; font-size: large;">-
<!--[endif]-->Valuation of inventories</span></div>
<div class="MsoBodyTextIndent2" style="margin-left: 9.0pt; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.75in;">
<!--[if !supportLists]--><span style="font-family: Times, 'Times New Roman', serif; font-size: large;">-
<!--[endif]-->Valuation of investments</span></div>
<div class="MsoBodyTextIndent2" style="margin-left: 9.0pt; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.75in;">
<!--[if !supportLists]--><span style="font-family: Times, 'Times New Roman', serif; font-size: large;">-
<!--[endif]-->Treatment of retirement benefits</span></div>
<div class="MsoBodyTextIndent2" style="margin-left: 9.0pt; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.75in;">
<!--[if !supportLists]--><span style="font-family: Times, 'Times New Roman', serif; font-size: large;">-
<!--[endif]-->Treatment of contingent liabilities etc.</span></div>
<br />
<br /></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com2tag:blogger.com,1999:blog-1874956538724758040.post-68995744261316357372012-07-03T21:25:00.001+05:302012-07-03T22:01:37.484+05:30Accounting Standards(AS) - An Introduction<div dir="ltr" style="text-align: left;" trbidi="on">
<span xmlns=""></span><br />
<h3 style="text-align: left;">
<span style="font-family: 'Trebuchet MS', sans-serif; font-weight: normal;">Greetings to fellow blog readers........</span></h3>
<div style="text-align: center;">
<img src="http://t0.gstatic.com/images?q=tbn:ANd9GcQ-agkV_oiaT8VxGpJRw-QcRhnvHseB3kt_S7aFMTIs4jmVUaPE" />
</div>
<div style="text-align: justify;">
<span xmlns=""> Today iam going to share the <a href="http://finance-terminology.blogspot.in/search/label/accounting">Accounting</a> Standards, that are the guidelines to the any business to prepare and maintain accounts of their respective companies. For comfortable usage we can say </span><span style="background-color: yellow; font-size: 16px;">Accounting Standards</span><span style="background-color: white; font-size: 16px;"> as </span><span style="background-color: yellow; font-size: 16px;">(AS)</span><span style="background-color: white; font-size: 16px;"> from next post.</span></div>
<div style="text-align: justify;">
<span xmlns=""><span style="font-size: 12pt;"> Accounting Standards are the defined accounting policies issued by Government or expert institute. These standards are issued to bring harmonization in follow up of accounting policies.</span></span></div>
<div style="text-align: justify;">
<span xmlns="">Presently, Institute of Chartered Accountants of India has issued 29 Accounting Standards as listed below.</span></div>
<div style="text-align: center;">
<span xmlns=""><br /> </span></div>
<div style="text-align: justify;">
<span xmlns="">AS 1. Disclosure of Accounting Policies</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 2. Valuation of Inventories</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 3. Cash Flow Statements</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 4. Contingencies and Events Occurring After the Balance Sheet Date</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 5. Net Profit or Loss for the Period, Prior Period Items and Changes in </span><br />
<span xmlns=""> Accounting Policies</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 6. Depreciation Accounting</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 7. Construction Contracts</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 8. Accounting for Research and Development (Not Applicable now)</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 9. Revenue Recognition</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 10. Accounting for Fixed Assets</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 11. Accounting for the Effects of Changes in Foreign Exchange Rates</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 12. Accounting for Government Grants</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 13. Accounting for Investments</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 14. Accounting for Amalgamation</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 15. Accounting for Retirement Benefits in the financial Statements of Employers</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 16. Borrowing Costs</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 17. Segment Reporting</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 18. Related Party Disclosure</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 19. Leases</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 20. Earning Per Share</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 21. Consolidated Financial Statements</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 22. Accounting for Taxes on Income</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 23. Accounting for Investments in Associates in Consolidated Financial Statements</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 24. Discontinuing Operations</span></div>
<div style="text-align: justify;">
<span xmlns="">AS 25. Interim Financial Reporting</span></div>
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<span xmlns="">AS 26. Intangible Assets</span></div>
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<span xmlns="">AS 27. Financial Reporting of Interests in Joint Ventures</span></div>
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<span xmlns="">AS 28. Impairment of <a href="http://finance-terminology.blogspot.in/search/label/assets">Assets</a></span></div>
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<span xmlns="">AS 29. Provisions, Contingent Liabilities & Contingent Assets</span></div>
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<span xmlns=""><span style="text-decoration: underline;"><strong><span style="font-size: large;">Procedure for Issuing Accounting Standards</span></strong></span></span></div>
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<span xmlns=""> Accounting Standard Board (ASB) determines the broad areas in which Accounting Standards need to be formulated.</span></div>
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<span xmlns="">In the preparation of AS, ASB is assisted by Study Groups.</span></div>
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<span xmlns=""> ASB also holds discussions with representative of Government, Public Sector Undertakings, Industry and other organizations (ICSI/ICWAI) for ascertaining their views.</span></div>
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<span xmlns=""> An exposure draft of the proposed standard is prepared and issued for comments by members of ICAI and the public at large.</span></div>
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<span xmlns=""> After taking into consideration the comments received, the draft of the proposed standard will be finalized by ASB and submitted to the council of the Institute.</span></div>
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<span xmlns=""> The council of the Institute will consider the final draft of the proposed Standard and If found necessary, modify the same in consultation with ASB. The AS on the relevant subject will then be issued under the authority of the council.</span><br />
<span xmlns=""><span style="background-color: yellow;">NOTE: </span>Hi Guys, Iam going to explain all the above Accounting Standards one by one in forthcomming posts, Thank You</span></div>
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<span xmlns=""><br /> </span></div>
</div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-63724253381989101412012-06-26T19:06:00.001+05:302012-07-09T21:39:25.610+05:30Bearer securities<div dir="ltr" style="text-align: left;" trbidi="on"><br /><h2 style="text-align: center;"><span class="mw-headline" id="Bearer_securities">Bearer securities</span></h2><br /><div style="text-align: justify;"><span style="background-color: white;"> Bearer securities are completely negotiable and entitle the holder to the rights under the security (e.g. to payment if it is a debt security, and voting if it is an equity security). They are transferred by delivering the instrument from person to person. In some cases, transfer is by endorsement, or signing the back of the instrument, and delivery.</span></div><div style="text-align: justify;"> </div><div class="separator" style="clear: both; text-align: center;"><a 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" 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" style="cursor: move;" /></a></div><div style="text-align: justify;"><span style="background-color: white;"> Regulatory and fiscal authorities sometimes regard bearer securities negatively, as they may be used to facilitate the evasion of regulatory restrictions and tax. In the United Kingdom, for example, the issue of bearer securities was heavily restricted firstly by the Exchange Control Act 1947 until 1953. Bearer securities are very rare in the United States because of the negative tax implications they may have to the issuer and holder.</span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="background-color: white;"> A bond or share that is considered to be owned by the person who has it in their possession, rather than by a named person.</span></div><div style="text-align: justify;"><span style="background-color: white;">Bonds may be registered or they may be issued in the form of bearer securities.</span></div><div style="text-align: justify;"><br /></div></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-54112586315082249682012-06-25T21:17:00.001+05:302012-07-09T21:39:25.605+05:30Arbitration Definition<div dir="ltr" style="text-align: left;" trbidi="on"><br /><h2 style="text-align: center;">Arbitration Definition</h2><div style="text-align: center;"><img src="https://encrypted-tbn3.google.com/images?q=tbn:ANd9GcSt2Y8Zw3Cou6VvFK0NNUapgnMBHfBBCAD_zBEhOXu1csvbtHaw" /></div><h3 style="text-align: justify;"><span style="font-weight: normal;"> If a client and a broker have a disagreement they are not able to settle amicably, they can take the case to Arbitration. The process is started when a client files a statement of claim using a form provided on the FINRA website. It details the circumstances surrounding the dispute and what type of monetary award the client is hoping to obtain. </span></h3><h3 style="text-align: justify;"><span style="font-weight: normal;"> If the disputed dollar amount is under $25,000, it is resolved through written statements. For amounts over $25,000, in-person Arbitration is used. This requires the selection of a venue and the formation of an arbitration panel. </span></h3><h3 style="text-align: justify;"><span style="font-weight: normal;"> The claimant signs the "uniform submission agreement" stating they will abide by the panel's decision and they pay filing and hearing fees.</span></h3><h3 style="text-align: left;"></h3><h2 style="text-align: left;"><u>Arbitrability:</u></h2><div style="text-align: justify;"><span style="background-color: white;">By their nature, the subject matter of some disputes is not capable of arbitration. In general, two groups of legal procedures cannot be subjected to arbitration:</span></div><ul style="text-align: left;"><li style="text-align: justify;"><span style="background-color: white; font-weight: normal;">Procedures which necessarily lead to a determination which the parties to the dispute may not enter into an agreement upon:Some court procedures lead to judgments which bind all members of the general public, or public authorities in their capacity as such, or third parties, or which are being conducted in the public interest. For example, until the 1980s, antitrust matters were not arbitrable in the United States. Matters relating to crimes, status and family law are generally not considered to be arbitrable, as the power of the parties to enter into an agreement upon these matters is at least restricted. </span></li><li style="text-align: justify;"><span style="background-color: white; font-weight: normal;">However, most other disputes that involve private rights between two parties can be resolved using arbitration. In some disputes, parts of claims may be arbitrable and other parts not. For example, in a dispute over patent infringement, a determination of whether a patent has been infringed could be adjudicated upon by an arbitration tribunal, but the validity of a patent could not: As patents are subject to a system of public registration, an arbitral panel would have no power to order the relevant body to rectify any patent registration based upon its determination.</span></li><li style="text-align: justify;"><span style="background-color: white; font-weight: normal;">Some legal orders exclude or restrict the possibility of arbitration for reasons of the protection of weaker members of the public, e.g. consumers. </span></li><li style="text-align: justify;"><span style="background-color: white; font-weight: normal;">Examples: German law excludes disputes over the rental of living space from any form of arbitration, while arbitration agreements with consumers are only considered valid if they are signed by either party, and if the signed document does not bear any other content than the arbitration agreement.</span></li></ul></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-86487664484965513972012-06-25T21:02:00.001+05:302012-07-09T21:39:25.626+05:30Averaging Meaning<div dir="ltr" style="text-align: left;" trbidi="on"><h2 style="text-align: center;">Averaging</h2><div> </div><div class="separator" style="clear: both; text-align: center;"><a href="http://www.rotman-baycrest.on.ca/files/imagemanagermodule/@random45d84ba580bfd/Averaging.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="212" src="http://www.rotman-baycrest.on.ca/files/imagemanagermodule/@random45d84ba580bfd/Averaging.gif" style="cursor: move;" width="320" /></a></div><h2 style="text-align: justify;"><span style="background-color: white;">Averaging Up Definition</span></h2><h3 style="text-align: justify;"><span style="font-weight: normal;"> Averaging Up is an investment strategy in which additional amounts are invested in an asset as its price rises. This will raise the average price paid for all of the shares, but that average cost is still lower than the security's current market price. The profit is the difference between the average cost and the current price and protecting it necessitates selling while the stock is rising or shortly after it has peaked.</span></h3><h2 style="text-align: justify;"><span style="background-color: white; text-align: left;">Averaging Down Definition</span></h2><h3 style="text-align: justify;"><span style="font-weight: normal;"> Averaging Down is an investment strategy in which additional amounts are invested in an asset if there is a substantial drop in its price after the original investment is made. This course of action is used by investors who plan to hold the assets for an extended period of time, have long-term investment goals and typically invest against the current investment trend.</span></h3><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com1tag:blogger.com,1999:blog-1874956538724758040.post-75819716890233670682012-06-25T20:49:00.001+05:302012-07-09T21:39:25.621+05:30American Depository Share (ADS)<div dir="ltr" style="text-align: left;" trbidi="on"><h3 style="text-align: left;"></h3><h2 style="text-align: center;"><b style="font-family: Verdana; font-size: small; text-align: -webkit-auto;">American Depository Share (ADS)</b></h2><div style="text-align: justify;"><br /></div><span style="font-weight: normal;"><div style="text-align: justify;"><span style="background-color: white;"> An American Depositary Share ("ADS") is a U.S. dollar denominated form of equity ownership in a non-U.S. company. It represents the foreign shares of the company held on deposit by a custodian bank in the company¹s home country and carries the corporate and economic rights of the foreign shares, subject to the terms specified on the ADR certificate.</span></div></span><span style="font-weight: normal;"><div style="text-align: justify;"><span style="background-color: white;"> An American Depositary Receipt ("ADR") is a physical certificate evidencing ownership in one or several ADSs. The terms ADR and ADS are often used interchangeably.</span></div><div style="text-align: justify;"><span style="background-color: white;"><br /></span></div></span><div style="text-align: justify;"><span style="background-color: white;">Convenient way to invest internationally</span></div><h3 style="text-align: left;"><span style="font-weight: normal;"><div style="text-align: justify;"><span style="background-color: white;"> ADRs provide U.S. investors with a convenient way to invest in non-U.S. securities without having to worry about the complex details of cross-border transactions; they offer the same economic benefits enjoyed by the domestic shareholders of the non-U.S. company. ADRs are issued by a U.S. bank, such as J.P. Morgan, that functions as a depositary. Each ADR is backed by a specific number or fraction of shares in the non-U.S. company. The relationship between the number of ADRs and the number for foreign shares is typically referred to as the ADR ratio.</span></div></span></h3><h3 style="text-align: left;"><div style="text-align: justify;"><span style="background-color: white;">Listed and traded in the U.S.</span></div><div style="text-align: justify;"><span style="background-color: white;"><br /></span></div><span style="font-weight: normal;"><div style="text-align: justify;"><span style="background-color: white;"> ADRs can be listed on any of the U.S. exchanges, such as the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX), and may be quoted for trading on the National Association of Securities Dealers Automated Quotation System (Nasdaq), the NASD's over-the-counter market, or the pink sheets. They can also be privately placed and traded as Rule 144A securities. Finally, the concept of the ADR has been extended to other geographical markets, resulting in structures known as global depositary receipts (GDRs), international depositary receipts (IDRs), and European depositary receipts (EDRs), which are generally traded or listed in one or more international markets.</span></div><div style="text-align: justify;"><span style="background-color: white;"><br /></span></div></span><div style="text-align: justify;"><span style="background-color: white;">Currency risk</span></div></h3><h3 style="text-align: left;"><span style="font-weight: normal;"><div style="text-align: justify;"><span style="background-color: white;"> Although ADRs are U.S. dollar denominated securities and pay dividends in U.S. dollars, they do not eliminate the currency risk associated with an investment in a non-U.S. company.</span></div></span></h3></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-38669860638836302332012-06-25T20:40:00.001+05:302012-07-09T21:39:25.599+05:30ADR - American Depository Receipt Definition<div dir="ltr" style="text-align: left;" trbidi="on"><br /><h2 style="text-align: center;">ADR - American Depository Receipt Definition</h2><div style="text-align: center;"><img height="200" src="https://encrypted-tbn1.google.com/images?q=tbn:ANd9GcRfuMP8KgxLZtFRIT0RJ9_7gKlQ2EVBatwfVsyeSODT0KtQoNxN" width="200" /></div><h3 style="text-align: left;"><div style="text-align: justify;"><span style="background-color: white; font-weight: normal;"> ADRs trade on major global exchanges such as the LSE and NYSE. They are issued by a US depository bank and can be a fraction of a share, a single share, or multiple shares of a foreign stock.ADRs permit investors to buy foreign shares locally without the need to change currency or access a foreign exchange. </span></div><div style="text-align: justify;"><span style="background-color: white; font-weight: normal;"><br /></span></div><div style="text-align: justify;"><span style="background-color: white; font-weight: normal;"> In addition, US ADRs pay dividends in US dollars, and can be traded like any other shares on the exchange. The price of an ADR reflects the price of the stock in its country, adjusted for the ratio of ADRs to foreign company shares.</span></div><div style="text-align: center;"><img src="http://nsestocktips.in/nse/wp-content/uploads/2010/08/American-Depositary-Receipt-Work-300x181.jpg" /></div><div style="text-align: justify;"><span style="background-color: white; font-weight: normal;"><br /></span></div><span style="font-weight: normal;"><div style="text-align: justify;"><span style="background-color: white;"> ADRs give local North American investors (in the case of US listed ADRs) the ability to buy companies that would otherwise be difficult, if not impossible to access. Do your research as some ADRs may not track their foreign listed equivalent stocks perfectly.</span></div></span></h3></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com46tag:blogger.com,1999:blog-1874956538724758040.post-74946695620500342412012-06-25T19:56:00.001+05:302012-07-09T21:39:25.616+05:30Arbitrage Definition<div dir="ltr" style="text-align: left;" trbidi="on"><br /><h2 style="text-align: center;">Arbitrage Definition</h2><div style="text-align: center;"><img src="https://encrypted-tbn0.google.com/images?q=tbn:ANd9GcR8feprQ0_HuZx2qyhPtxxyBZZl7Fn7_NGXrsvRXwknHbOBBZ1ijmHJdMmLnQ" /></div><div class="separator" style="clear: both; text-align: center;"></div><div style="margin-left: 1em; margin-right: 1em; text-align: justify;"> </div><br /><h3 style="text-align: left;"><div style="text-align: justify;"><span style="background-color: white; font-weight: normal; text-align: left;"> Arbitrage is also referred to as 'Arb'. It is the activity or process of taking advantage / exploiting a price difference on the same or simlar products but on different markets. One example could be arbitrage of an interlisted stock - buying it on one exchange and selling it on another where there is a price difference and opportunity to make a profit. </span></div><div style="text-align: justify;"><span style="background-color: white; font-weight: normal; text-align: left;"><br /></span></div><div style="text-align: justify;"><span style="background-color: white; font-weight: normal; text-align: left;"> In theory true arbitrage is considered risk free although in reality - like most investments there is usually some element of risk. It is very hard for the retail investor to identify opportunities for good arbitrage as it requires very quick and effective trade execution and more importantly deep analysis. Typically large institutions will be able to exploit Arb opportunities better than the public as their technical expertise and resources of larger capital pools give them an edge on these opportunities. </span></div><div style="text-align: center;"><img src="http://www.rebatebyacs.com/files/graph_what-is-arbitrage.jpg" /></div><div class="separator" style="clear: both; text-align: center;"></div><div style="text-align: justify;"><span style="background-color: white; font-weight: normal; text-align: left;"><br /></span></div><div style="text-align: justify;"><span style="background-color: white; font-weight: normal; text-align: left;"> Arbitrage activity is significant as it ensures prices and markets operate more efficiently. If there are discrepencies between prices on similar financial instruments across markets they are typically identified quickly and arbitrage opportunists will 'push' prices back in line.</span></div></h3></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com11tag:blogger.com,1999:blog-1874956538724758040.post-43480964904079372782012-06-25T19:48:00.001+05:302012-07-09T21:39:25.602+05:30All or None (AON Order) Definition<div dir="ltr" style="text-align: left;" trbidi="on"><br /><h2 style="text-align: center;">All or None (AON Order) Definition</h2><div style="text-align: center;"><img src="https://encrypted-tbn2.google.com/images?q=tbn:ANd9GcT6nWa8jMEM4879gGLXfKEtCTZKlgodnCUOVJV3d9Fo4WE46eKmMaLxll1NGQ" /></div><h3 style="text-align: left;"><div style="text-align: justify;"><span style="background-color: white; font-weight: normal;"> </span><span style="background-color: white; font-weight: normal;"> All or None is an instruction from a client to the broker that is included in a buy/sell order to fill the complete order or disregard it. In essence “Get me the entire quantity or don’t get me any.”</span></div><span style="font-weight: normal;"><div style="text-align: justify;"><span style="background-color: white;"> </span></div></span></h3><h3 style="text-align: justify;"><span style="background-color: white; font-weight: normal;"> Keep in mind different brokers and exchanges will handle this order differently - if accepting AON orders at all. This order is used most commonly on stocks that trade on low average volumes. Low volume stocks are characterized by wider bid and offer prices and partial fills can be expensive. </span></h3><h3 style="text-align: justify;"><span style="background-color: white; font-weight: normal;"> Time and time again novices will try and place these AON terms on liquid stocks when it is not necessary. Often AON orders get routed into a special 'terms book' that requires manual entry by someone at the exchange level which is not efficient.</span></h3><div><h3 style="text-align: justify;"><span style="font-weight: normal;"><span style="background-color: white;"> Ask your broker when unsure about order types or exchange rules.</span></span></h3></div></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-2101475686795173542012-01-31T20:31:00.006+05:302012-07-03T19:51:00.759+05:30Depreciation, Provisions and Reserves-1<div dir="ltr" style="text-align: left;" trbidi="on">
Greetings to fellow blog readers......<br />
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<span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">In which of
the method interest is calculated on the debit balance of the asset amount at
the beginning of the year ? <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1. sum of the digits method 2.
Annuity method<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3. <a href="http://finance-terminology.blogspot.in/search/label/depriciation">depreciation</a> fund method 4.
Diminishing method<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Depreciation
fund account appears on the liabilities side and the depreciation fund
investment account will be : <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1. Profit and loss a/c 2.
Balance sheet in liabilities side<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3. assets side in balance sheet 4.
None of these<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">In which of
the method depreciation charged is cost plus interest in Profit and loss a/c :<o:p></o:p></span></div>
<div class="MsoTitle" style="margin-left: 0.25in;">
<span style="font-size: 11pt; line-height: 150%;">1. annuity method 2.
Diminishing method<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3. fixed installment method 4.
Sum of the digits method<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Service
hours method of providing depreciation (straight line method) is useful, when :<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Output can be effectively measured<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Utility of the asset is directly related to its productive use<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Provide for depreciation is also to accumulate the amount for its
replacement<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Use of an asset can be measured in terms of time <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">5.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Depreciation
fund method is designed to : <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">only provide for depreciation of an asset<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">provide for depreciation is also to accumulate the amount for its
replacement.<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Provide for the payment of some liabilities<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">None of these <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">6.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The profit
on depreciation policy is transferred to : <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1. depreciation fund account 2.
Asset account<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3. <a href="http://finance-terminology.blogspot.in/search/label/profit%20and%20loss%20account">profit and loss account</a> 4.
None of these<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">7.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Makes
provision for the replacement of the asset : <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1. written down value method 2.
Annuity method<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3. sinking fund method 4.
Revaluation method<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">8.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Makes an
estimate of the units of output the asset is likely to produce in its life time
: <o:p></o:p></span></div>
<div class="MsoTitle" style="margin-left: 0.25in;">
<span style="font-size: 11pt; line-height: 150%;">1. Straight line method 2.
Diminishing method<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3. annuity method 4.
None of these<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">9.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Interest is
debited to asset account in : <o:p></o:p></span></div>
<div class="MsoTitle" style="margin-left: 0.25in;">
<span style="font-size: 11pt; line-height: 150%;">1. depreciation fund method 2.
Annuity method<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3. insurance policy method 4.
None of these<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">10.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Under
annuity method, the amount of depreciation is :<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1. increasing every year 2.
Decreasing every year<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3. fixed for all the years 4.
None of these<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">11.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Any profit
or loss on the sale of sinking fund investments is transferred to : <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1.profit and loss a/c 2.
Asset a/c<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3. sinking fund a/c 4.
None of these<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">12.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of
the following is the depreciation calculating method ? <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1. Straight line method 2.
Diminishing method<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3. Annuity method 4.
None of these<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">13.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;"><a href="http://finance-terminology.blogspot.in/search/label/assets">Asset</a> cost
is Rs.10,000; establishment charges Rs.5,000, assets life time is 10 years,
depreciation will be : <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1. Rs.1,500 2.
Rs.2,000 3. Rs.1,000 4. Rs.500<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">14.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Asset value
is Rs.20,000, life time of asset is 10 years but Depreciation will be : <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1. Rs.2,000 2.
Rs.1,000 3. Rs.2,500 4. None of these<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">15.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Asset value
Rs.50,000 Rate of Depreciation is 10%, Second year ending what is the value of
asset is … (In straight line method). <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1. Rs.40,500 2.
Rs.40,000 3. Rs.45,000 4. Rs.50,000<o:p></o:p></span></div>
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<div class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;">
<span style="font-size: 11pt; line-height: 150%;">16.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">In
diminishing method, asset value Rs.45,000, Rate of Depreciation is 10%, what is
the value of third year ending : <o:p></o:p></span></div>
<div class="MsoTitle" style="margin-left: 0.25in;">
<span style="font-size: 11pt; line-height: 150%;">1. Rs.40,500 2.
Rs.32,805 3. Rs.45,000 4. Rs.36,450<o:p></o:p></span></div>
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<div class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;">
<span style="font-size: 11pt; line-height: 150%;">17.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Takes into
account the total life of the asset (in hours) for calculating depreciation is
: <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1. Written down value method 2.
Annuity method<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3. Depletion method 4.
None of these<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">18.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">For
providing depreciation on hand tools, the appropriate method of depreciation is
: <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1. Replacement method 2.
Revaluation method<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3. Depletion method 4.
None of these<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">19.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">In case of
insurance of policy methods the depreciation is credited to … account <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1. Asset 2.
Depreciation fund<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3. Profit and loss 4.
Depreciation <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">20.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">In case of
depreciation fund method, the balance of depreciation fund account is
transferred to : <o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">1. General reserve 2.
Asset account<o:p></o:p></span></div>
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<span style="font-size: 11pt; line-height: 150%;">3. Specific reserve 4.
None of these<o:p></o:p></span></div>
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<b>ANSWERS</b></div>
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<span style="font-size: 11pt; line-height: 150%;">1.2 2.3 3.1 4.4 </span><span style="font-size: 11pt; line-height: 150%;">5.2</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">6.1</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">7.3</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">8.4</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">9.2</span><span style="font-size: 11pt; line-height: 150%;"> 1</span><span style="font-size: 11pt; line-height: 150%;">0.3</span><span style="font-size: 11pt; line-height: 150%;"> 1</span><span style="font-size: 11pt; line-height: 150%;">1.3</span><span style="font-size: 11pt; line-height: 150%;"> 12</span><span style="font-size: 11pt; line-height: 150%;">.1</span><span style="font-size: 11pt; line-height: 150%;"> 1</span><span style="font-size: 11pt; line-height: 150%;">3.1</span><span style="font-size: 11pt; line-height: 150%;"> 1</span><span style="font-size: 11pt; line-height: 150%;">4.1</span><span style="font-size: 11pt; line-height: 150%;"> 1</span><span style="font-size: 11pt; line-height: 150%;">5.2</span><span style="font-size: 11pt; line-height: 150%;"> 1</span><span style="font-size: 11pt; line-height: 150%;">6.2 1</span><span style="font-size: 11pt; line-height: 150%;">7.4</span><span style="font-size: 11pt; line-height: 150%;"> 1</span><span style="font-size: 11pt; line-height: 150%;">8.2</span><span style="font-size: 11pt; line-height: 150%;"> 1</span><span style="font-size: 11pt; line-height: 150%;">9.2</span><span style="font-size: 11pt; line-height: 150%;"> 2</span><span style="font-size: 11pt; line-height: 150%;">0.2</span></div>
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Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com8tag:blogger.com,1999:blog-1874956538724758040.post-39817623083117231942012-01-25T20:28:00.000+05:302012-07-01T20:38:59.931+05:30Depreciation, Provisions and Reserves<div dir="ltr" style="text-align: left;" trbidi="on">Greetings to fellow blog readers......<br />
<br />
<div class="MsoTitle" style="margin-left: 0.25in; text-align: left; text-indent: -0.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Depreciation is charged on :<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. Current assets 2. Fixed <a href="http://finance-terminology.blogspot.in/search/label/assets">assets</a><o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">3. Both 1 and 2 4. None of these<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Depreciation is charged on :<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. Book value 2. Net value<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">3. Market value 4. All of the above <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following is the main causes of depreciation ? <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. Wear and tear 2. Economic factors<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">3. time factors 4. Depletion<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">5. all of the above<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;"><a href="http://finance-terminology.blogspot.in/search/label/depriciation">Depreciation</a> applies to : <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. Wasting assets 2. Fixed assets<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">3. Intangible assets 4. Buildings<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-size: 11pt; line-height: 150%;">5.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Depletion applies to : <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. Fixed assets 2. Wasting assets<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">3. Intangible assets <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">4. To damage due to a building or other property during tenancy<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;"> <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-size: 11pt; line-height: 150%;">6.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">A mortiation applies to … assets ? <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. Intangible assets 2. Fixed assets<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">3. wasting assets 4. None of these<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-size: 11pt; line-height: 150%;">7.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Dilapidation’s applies to ? <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. fixed assets 2. Wasting assets<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">3. to damage due to a building or other property during tenancy<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">4. none of these<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l5 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">8.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following is refers to cost allocations for natural resources such as oil and mineral deposits ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Depreciation 2. Depletion<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Amortization 4. Dilapidation’s <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l5 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">9.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Depreciation is the Process : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">of allocation of cost of the asset to the period of its life <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">of valuation of assets<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">of maintenance of an asset in a asset of efficiency<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">none of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l5 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">10.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Why the depreciation is calculated : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l2 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">To know the true profits <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l2 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">To show true financial position<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l2 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">To make provision for replacement of assets <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l2 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">All of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l5 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">11.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following is the methods of recording depreciation’s ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l4 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">when a provision depreciation account is not maintained.<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l4 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">When a provision for depreciation account is maintained<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l4 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Both 1 and 2 <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l4 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l5 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">12.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The depreciation’s account, begin nominal account is transferred to :<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. trading account 2. <a href="http://finance-terminology.blogspot.in/search/label/profit%20and%20loss%20account">Profit and loss account</a><o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3.Profit and loss preparation account 4. Balance sheet <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l5 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">13.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Provision for Depreciation Account is shown in balance sheet ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. liabilities side 2. Assets side<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. and deferred revenue expenditure 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l5 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">14.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Straight line method is also known as …<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo5; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Fixed installment method<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo5; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Fixed percentage on original cost method<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo5; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Both 1 and 2<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo5; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l5 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">15.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Straight line depreciation method formula is : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l3 level1 lfo6; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Depreciation = Cost price of asset – Scrap value / estimated life of asset<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l3 level1 lfo6; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Depreciation = Cost of assets + Scrap value / life time<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l3 level1 lfo6; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Depreciation = cost price of assets – scrap value / Total cost of assets<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l3 level1 lfo6; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l5 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">16.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Machine cost Rs.11,000 is estimated to have a life of 10 years and the scrap value is estimated Rs.1,000 at the end of its life, the amount of depreciation would be ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.2,000 2. Rs.1,000 3. Rs.1,500 4. Rs.1,100<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l5 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">17.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Diminishing balance method is also known as : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. reducing method 2. Written down value method<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. reducing installment method 4. All of the above <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l5 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">18.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Diminishing balance method is usually adopted for : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Plant and machinery 2. Building <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Land 4. Furniture<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l5 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">19.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following method is recognized by the income tax authorities in <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region>:<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Straight line method 2. Diminishing balance method<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. insurance method 4. Sinking fund method<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;"> <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; mso-list: l5 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">20.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following method assets value never becomes nil ?<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Diminishing balance method 2. Fixed installment method<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Fund method 4. Annuity method</span></div><div class="MsoTitle" style="margin-left: 0.25in; text-align: center;"><span style="font-size: 11pt; line-height: 150%;"><b>ANSWERS</b></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"></div><div class="MsoTitle" style="text-align: left;"><span style="font-size: 11pt; line-height: 150%;"> 1.2 2.1 3.5 4.2 5.2 6.1 7.3 8.2 9.1 10.4 11.3 12.2<o:p></o:p></span></div><span style="font-family: 'Times New Roman', serif; font-size: 11pt;"></span><br />
<div style="text-align: center;"><span style="font-family: 'Times New Roman', serif; font-size: 11pt;"><span style="font-size: 11pt;">13.1 14.3 15.1 16.2 17.4 18.1 19.2 20.1 </span></span></div><br />
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</div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-88838041246277636042012-01-25T20:00:00.001+05:302012-07-01T20:12:03.040+05:30Trial Balance, Rectification of Errors and Final Accounts Multiple Choice-2<div dir="ltr" style="text-align: left;" trbidi="on">Greetings to fellow blog readers......<br />
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<div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">An entry of Rs.600 was wrongly posted to wages account instead of machinery account, as wages are to be <a href="http://finance-terminology.blogspot.in/search/label/capital">capital</a>ized it is an error of : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Omission 2. Commission<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Principle 4. Clerical error<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">A customer’s cheque returned dishonoured is recorded in : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. purchase return book 2. Sales return book<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. cash book 4. Journal <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The main purpose of preparing a <a href="http://finance-terminology.blogspot.in/search/label/trail%20balance">trial balance</a> is :<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l2 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">to prepare a summary of all the balance <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l2 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">to compare the debit balance with credit balance<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l2 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">to locate all types of errors<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l2 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">to check the arithmetic accuracy of the ledger accounts<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following errors is revealed by trial balance ?<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l5 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">wrong amount entered in the book of original entry<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l5 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">wrong amount entered in a ledger account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l5 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">complete omission of an entry from the book of original entry<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l5 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">all of the above<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">5.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following errors will cause the trial balance to be out of balance ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">the total of the purchase book is Rs.1,000 short<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">goods received back from Mahesh, Rs.250 have not been entered in the returns inward book<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">a purchase of Rs.25 from Gopal and Co. has been entered in the purchase book as Rs.251.<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">none of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">6.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following errors are revealed by the trial balance ?<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l10 level1 lfo5; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">treating an expense as an asset <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l10 level1 lfo5; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">posting an amount on the correct side but in the wrong account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l10 level1 lfo5; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">compensating errors<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l10 level1 lfo5; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">none of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">7.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Cash sales of Rs.2,520 was posted as 2,250 the rectifying entry will be – <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo6; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Cash a/c – Dr.170 – To Sales a/c – 170<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo6; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Suspense a/c – Dr.170 – To Sales a/c – 170<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo6; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Cash a/c – Dr.170 – To Suspense a/c – 170<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo6; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">8.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Purchased goods for the personal use of the proprietors Rs.1,300, debited to purchase account, the rectifying entry will be :<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l6 level1 lfo7; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Suspense a/c – Dr. 1,300 – To Purchase a/c – 1,300<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l6 level1 lfo7; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Drawing a/c – Dr.1,300 – To Cash a/c – 1,300<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l6 level1 lfo7; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Drawing a/c – Dr. 1,300 – To Purchase a/c – 1,300<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l6 level1 lfo7; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">9.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The difference between trial balance where to put : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Personal a/c 2. Impersonal a/c<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. nominal a/c 4. Suspense a/c<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">10.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">If trial balance on the debit side is short, then : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l8 level1 lfo8; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Suspense a/c need not be opened<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l8 level1 lfo8; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Suspense a/c is opened with debit short balance <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l8 level1 lfo8; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Suspense a/c is opened with credit balance<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l8 level1 lfo8; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">11.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">If trial balance is short on credit side : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l11 level1 lfo9; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">open the suspense a/c with debit balance<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l11 level1 lfo9; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">open the suspense a/c with credit balance<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l11 level1 lfo9; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">need not to open account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l11 level1 lfo9; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">none of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">12.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Rs.100 received from <st1:place w:st="on">Ravi</st1:place>, Shiva had been posted to Raju Shiva account. … will be rectified entry : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l7 level1 lfo10; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Raju Shiva a/c – Dr. 1000 – To <st1:place w:st="on">Ravi</st1:place> Shiva a/c – 100<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l7 level1 lfo10; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Suspense a/c – Dr.100 – To Shiva a/c – 100<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l7 level1 lfo10; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Raju a/c – Dr.100 – To <st1:place w:st="on">Ravi</st1:place> a/c – 100<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l7 level1 lfo10; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">13.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The balance of the petty cash is : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. an expense 2. An income<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. an asset 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">14.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Fixed assets are :<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l4 level1 lfo11; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">kept in the business for use over a long time for earning income<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l4 level1 lfo11; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">meant for resale<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l4 level1 lfo11; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">meant for conversion into cash as quickly as possible <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l4 level1 lfo11; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">none of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">15.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Goodwill is : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. a current asset 2. Intangible <a href="http://finance-terminology.blogspot.in/search/label/assets">assets</a><o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. tangible asset 4. Fixed assets<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">16.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Current liabilities are such obligations which are to be satisfied : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. within one year 2. Within two year <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Within three year 4. More than five years <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">17.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which is the following is the current liabilities ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. creditors 2. Bills payable a/c <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. unclaimed dividend 4. All of the above <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">18.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Out of the following, the example of a current asset is : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. surrender value of life insurance policy 2. Discount on <a href="http://finance-terminology.blogspot.in/search/label/debentures">debenture</a><o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. bill receivable 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">19.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Stock is : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. a current assets 2. Intangible assets<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. included in the category of fixed assets 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">20.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Profit and loss account is : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. personal account 2. Real account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. nominal account 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">21.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Profit and Loss account shows : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. financial position of the concern 2. Net profit earned<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. the net gross profit earned 4. The gross profit earned <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">22.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Trading account shows : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. gross profit 2. Cost of goods sold<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. gross loss 4. All the above <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">23.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">GP = net sales - ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. net purchase 2. Gross expenses<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. cost of goods sold 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">24.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Closing stock is valued at : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. cost 2. Market value<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. cost or market price which ever is lower 4. All the above <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">25.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Manufacturing account is prepared : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l9 level1 lfo12; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">to ascertain the <a href="http://finance-terminology.blogspot.in/search/label/profit%20and%20loss%20account">profit or loss</a> on the goods purchased<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l9 level1 lfo12; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">to ascertain the cost of the manufactured goods<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l9 level1 lfo12; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">to show the sale proceeds from the goods produced during the year<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l9 level1 lfo12; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">none of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">26.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Goods purchased were for Rs.12,000 and goods remain unsold Rs.2,000. In such a case, the cost of goods sold will be : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.2,000 2. Rs.14,000 3. Rs.10,000 4. Rs.12,000<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">27.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Opening stock is Rs.5,000 wage were Rs.2,500 and goods purchased Rs.20,000 net sales is Rs.15,000 closing stock is Rs.20,000, than what is the value of gross profit ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.7,000 2. Rs.5,000 3. Rs.7,500 4. Rs.12,000<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">28.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Opening stock Rs.10,000 purchases (net) Rs.75,000 direct expenses Rs.5,000, closing stock Rs.15,000 and sales (net) Rs.1,00,000. The value of cost of goods sold will be : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.70,000 2. Rs.75,000 3. Rs.60,000 4. Rs.72,000<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">29.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Above mentioned example the value of gross profit is : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.20,000 2. Rs.22,000 3. Rs.29,000 4. Rs.25,000<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l3 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">30.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Manufacturing Account concern to … A/c <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. <a href="http://finance-terminology.blogspot.in/search/label/profit%20and%20loss%20account">Profit and loss a/c</a> 3. Trading a/c <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Both 1 and 2 4. None of these<o:p></o:p></span><br />
<span style="font-size: 11pt; line-height: 150%;"></span><br />
<div class="MsoTitle" style="text-align: center;"><span style="font-size: 11pt; line-height: 150%;">ANSWERS</span></div><span style="font-size: 11pt; line-height: 150%;"> <div class="MsoTitle" style="text-align: center;"><span style="font-size: 11pt; line-height: 150%;"> 1.3 2.3 3.4 4.2 5.1 6.4 </span><span style="font-size: 11pt; line-height: 150%;">7.2</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">8.3</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">9.4</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">10.2</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">11.2</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">12.1</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">13.3</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">14.1</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">15.2</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">16.1</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">17.4</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">18.3 </span><span style="font-size: 11pt; line-height: 150%;">19.1</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">20.3</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">21.2</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">22.3</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">23.3</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">24.3</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">25.2</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">26.3</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">27.3</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">28.2</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">29.4</span><span style="font-size: 11pt; line-height: 150%;"> </span><span style="font-size: 11pt; line-height: 150%;">30.2</span></div></span></div></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-70216855830144139952012-01-14T19:50:00.000+05:302012-07-01T20:00:26.137+05:30Trial Balance, Rectification of Errors and Final Accounts Multiple Choice<div dir="ltr" style="text-align: left;" trbidi="on"><br />
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</div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">In book-keeping posting means : <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">to record the transaction only <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">To record the transaction from journal to the ledger<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">To record the transaction only in ledger <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">The basic rule of book-keeping, debit the receiver and credit the giver is applicable to : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Personal account 2. Real account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Nominal account 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Goods of the value of Rs.1,500 taken by the proprietor for his personal use should be debited to :<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. sales account 2. Purchase account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. drawing account 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Goods destroyed by fire should be credited to : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. purchase account 2. Sales account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. loss of goods by fire account 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">5.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">The credit balance of bank account indicates. <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. amount payable by the bank 2. Amount payable to the bank<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. amount receivable to the bank 4. Cash at bank<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">6.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Which is the following is the preparing the trial balance method is ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Total method 2. Balance method<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Both 1 and 2 4. Neither of above 1 & 2<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">7.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Which of the following accounts will invariably have a debit balance ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. bank account 2. Account receivable a/c <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. accounts payable a/c 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">8.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Which of the following accounts have only credits balance ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. accounts payable account 2. Salaries outstanding a/c <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. reserve funds a/c 4. All of the above <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">9.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Which of the following accounts may have a <a href="http://finance-terminology.blogspot.in/search/label/debts">debit</a> or credit balance ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Discount received account 2. Sales account <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Trade expenses a/c 4. Loan a/c <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">10.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">The error in the casting of sale book is called as : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Clerical error 2. Error of principle<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. compensating error 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">11.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Error of commission arises when : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l2 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">any transaction is in correctly recorded, either wholly or party.<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l2 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">Any transaction is left either wholly or partially.<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l2 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">Any transaction is recorded in a fundamentally incorrect manner<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l2 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">12.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Wages paid for the erection of a machine debited to wages account is an example of : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. error of principle 2. Clerical error<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. compensating error 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">13.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Error of balancing affects – accounts :<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. One account 2. Two accounts<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Two or more accounts 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">14.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Preparation of <a href="http://finance-terminology.blogspot.in/search/label/trail%20balance">trial balance</a> helps in locating errors of : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. omission 2. A clerical nature 3. Commission 4. All types<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">15.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">An entry of Rs.840 being debited to sonali’s a/c as Rs.480 would be an error of : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. commission 2. Omission<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. principle 4. Negligible significance <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">16.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">An entry of Rs.1,000 being wrongly posted to wages a/c instead of machinery a/c would be an error of ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. omission 2. Commission<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. principle 4. A clerical nature<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">17.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">An expense of Rs.500 on cartage of a new machine purchased should be debited to : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. cash a/c 2. Miscellaneous expenses a/c<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. cartage a/c 4. Machine a/c <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">18.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Error which affect one <a href="http://finance-terminology.blogspot.in/search/label/accounting">account</a> can be : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. errors of omission 2. Errors of principle<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. errors of posting 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">19.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Error of carry forward affect – <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. personal a/c 2. Impersonal a/c <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. nominal a/c 4. Suspense a/c <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">20.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Sales of Ram, Rs.336, posted to his account as Rs.363 affect …<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. sales account 2. Ram’s account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. both 1 and 2 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">21.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Sales to Uma Rs.336 have been debited to Thulasi account. This will be rectified by : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l3 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">Uma a/c – Dr. To Thulasi a/c <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l3 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">Thulasi a/c – Dr. To Uma a/c<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l3 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">Crediting both the account <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l3 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">22.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Sales to Mahesh Rs.336, were not recorded this will affect – <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. purchase account 2. Sales account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. mahesh account 3. Both 2 and 3 <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">23.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Cartage paid, Rs.50 for the newly purchased machinery, if debited to cartage account will affect ; <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. only machinery account 2. Only cartage account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. both 1 and 2 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">24.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Goods purchase from Raju for Rs.1,000 were passed through sales book. The rectification of the error will : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. increase the gross profit 2. Decrease the gross profit<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. neither of the two 4. Only Raju account affect <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">25.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">An amount of Rs.200 paid to Bixam against an acceptance was debited to Pandu’s account. The rectification of the error will : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. increase the net profit 2. Bixam’s account increase<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. reduce net profit 4. Have no effect on the net profit <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">26.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">An amount of Rs.300 written off as bad debt was received from X and was credited to X’s personal account. The rectification of this entry will : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. increase net profit by Rs.300 2. Reduce net profit by Rs.300<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. both 1 and 2 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">27.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Discount allowed Rs.93 to Mohan has been credited to his account by Rs.39. the error will be rectified by : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Debiting Mohan by Rs.54 2. Crediting Mohan by Rs.54<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Debiting discount by Rs.54 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">28.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Which item is shown on the debit side of a trial balance ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. purchase returns 2. Rent outstanding a/c <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. prepaid expenses 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">29.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Bills receivable book is a part of : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. ledger 2. Journal 3. Balance sheet 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">30.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">An entry of Rs.320 has been <a href="http://finance-terminology.blogspot.in/search/label/debts">debited</a> to vivek’s account as Rs.230. it is an error of : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. commission 2. Omission<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. principle 4. None of these above <o:p></o:p></span></div><h3 style="text-align: center;"><span style="font-size: 11pt; line-height: 150%;"><b>Answers</b></span></h3><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"></div><div align="left" class="MsoTitle" style="text-align: left;"><span style="font-size: 11pt; line-height: 150%;">1.2 2.1 3.3 4.1 5.2 6.3 7.2 8.4 9.4 10.1 11.1 12.1<o:p></o:p></span></div><div align="left" class="MsoTitle" style="text-align: left;"><span style="font-size: 11pt; line-height: 150%;">13.1 14.2 15.1 16.3 17.4 18.3 19.2 20.2 21.1 22.4 23.1 24.2 <o:p></o:p></span></div><span style="font-family: 'Times New Roman', serif; font-size: 11pt;">25.4 26.1 27.4 28.3 29.2 30.1</span><br />
</div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-69832368889245114852011-12-21T22:21:00.000+05:302012-06-30T22:26:24.008+05:30Bank Reconciliation Statement Multiple Choice Questions<div dir="ltr" style="text-align: left;" trbidi="on">Greetings to fellow blog readers......<br />
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<div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">A Bank Reconciliation Statement is prepared by :<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. customer of the Bank 2. Bank<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">3. neither of the above two 4. None of these<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">The balance of cash book shows : <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. net income 2. Cash in hand <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">3. net expenditure 4. None of these<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">BRS is : <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. a part of the cash book 2. A ledger account <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 35.45pt; text-indent: -17.45pt;"><span style="font-size: 11pt; line-height: 150%;">3. a statement showing the causes for difference between the balance of cash book and pass book <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">4. none of these<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Bank Reconciliation statement is prepared to ascertain the causes of the difference between : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">the balance as per the</span> <span style="font-size: 11pt; line-height: 150%;">bank</span> <span style="font-size: 11pt; line-height: 150%;">column of the cash book and the balance as per pass book <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">the balance as per the cash column of cash book and the balance as per the pass book <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">neither of the two <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">none of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">5.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">While preparing bank reconciliation statement charges paid into bank but not yet cleared are : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. added 2. Deducted 3. Multiple 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">6.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">A five months bill drawn on <st1:date day="2" month="2" w:st="on" year="2004">2<sup>nd </sup>Feb 2004</st1:date> will mature for payment on … 2004. <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Sep 5<sup>th</sup> 2. Sep 2<sup>nd</sup> 3. Feb 5<sup>th</sup> 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">7.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">In arriving at out adjusted cash balance which of the following is not taken into account ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l5 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">amount deposited by our customer direct into our bank account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l5 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">errors in the cash book 3. Errors in the pass book<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">4. none of these <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">8.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">When bank column of a cash book shows a credit balance, it means : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. overdraft balance 2. Cash book balance<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. positive balance of pass book 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">9.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">A bank reconciliation statement is prepared by : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. creditors 2. Debtors<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. business 4. Customers (bank) <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">10.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Favourable balance as per cash book means : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l4 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">debit balance in the bank. Bank column of the cash book<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l4 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">debit balance in the pass book<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l4 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">neither of the two<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l4 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">none of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">11.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Over draft as per cash book means : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l3 level1 lfo5; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">Credit balance in the cash book<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l3 level1 lfo5; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">Credit balance in the bank column of the cash book <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l3 level1 lfo5; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">Debit balance in the cash book <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l3 level1 lfo5; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">12.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Which of the following is the correct ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo6; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">pass book shows credit balance <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo6; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">cash book in the bank column shows the debit or credit balance<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo6; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">when the pass book shows debit balance <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo6; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11pt; line-height: 150%;">all of the above <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">13.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Bank balance as per cash book Rs.18,500 Rs.4,500 is entered in the cash book as paid into bank; but not credited by the bank. The pass book balance is Rs.<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.14,000 2. Rs.13,000 3. Rs.23,000 4. Rs.18,500<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">14.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Pass book balance is 20,000, dividend of Rs.1,000 collected by bank but entered in the cash book as Rs.100. the cash book balance is : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.19,000 2. Rs.21,100 3. Rs.19,100 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">15.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Overdraft Bank balance as shown by the cash book is Rs.6,000. A cheque Rs.10,400 was deposited to bank but omitted in the cash book. In the pass book the amount is wrongly entered in the withdrawal column. Overdraft balance as per pass book.<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.16,400 2. Rs.10,400 3. Rs.4,400 4. Rs.16,000<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">16.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Overdraft balance as per pass book Rs.8,500. A cheque of Rs.3,450 issued but wrongly entered in the debit side of the cash book. The cheque is not yet presented for payment. Overdraft balance as per cash book. <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.8,500 2. Rs.5,050 3. Rs.11,950 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">17.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Bank balance as per cash book is Rs.7,800, bank charges of Rs.75 debited by bank but not recorded in the cash book. The pass book balance is ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.7,875 2. Rs.7,725 3. Rs.7,800 4. Rs.7,850<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">18.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Bank balance as per pass book is Rs.9,700. Cash with drawn from bank Rs.3,000 but recorded as Rs.300 in the cash book but balance as per cash book is ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.12,400 2. Rs.6,700 3. Rs.3,700 4. Rs.12,700<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">19.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Overdraft of pass book is Rs.11,500. Interest on Overdraft Rs.350 debited by bank but not recorded in the cash book. Bank balance as per cash book is ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.11,850 2. Rs.11,500 3. Rs.11,150 4. Rs.11,750 <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">20.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Bank balance as per cash book is Rs.570, debit side of the cash book bank column is over added to the extent of Rs.10,000. Overdraft of balance as per pass book is ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.9,430 2. Rs.10,570 3. Rs.570 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">21.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">When overdraft as per pass book is the starting point, bank charges of Rs.100 recorded twice will be : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. added by Rs.100 2. Added by Rs.200<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. deducted by Rs.100 4. Deducted by Rs.200<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">22.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">When favourable balance as per cash book is the starting point, wrong debit given by the bank to the firm’s account will be : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. added 2. Deducted 3. No effect 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">23.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">The credit balance of Rs.1,000 in the bank column of the cash book was carried forward as its debit balance. When overdraft as per pass book is the starting point.<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.1000 will be deducted 2. Rs.1000 will be added<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Rs.2000 will be deducted 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">24.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">When Overdraft as per pass book is the starting point, interest on Overdraft Rs.50 recorded twice on pass book will be : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Added by Rs.100 2. Added by Rs.50<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Deducted by Rs.50 4. None of the above <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">25.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">When favourable balance as per cash book is the starting point, cheques deposited but not collected Rs.500 before due date will be :<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. added by Rs.500 2. Deducted by Rs.1000<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. deducted by Rs.500 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">26.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">When overdraft as per cash book is the starting point, the credit balance of Rs.200 in the bank column of the cash book was carried forward as its debit balance will be ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. added by Rs.200 2. Added by Rs.400<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. deducted by Rs.400 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">27.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Balance as per cash book Rs.7,000 cheques issued Rs.750 but not cleared in the bank balance as per pass book will be : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.7,750 2. Rs.6,250 3. Rs.7,000 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">28.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Balance as per pass book is Rs.10,000 cheques issued but not cleared in the bank is Rs.350 bank charges Rs.50 not taken in the cash book, balance as per cash book will be : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.10,050 2. Rs.10,350 3. Rs.9,700 4. Rs.10,400<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">29.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">When bank column of a cash book shows a credit balance. It means : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. favourable balance 2. Overdraft<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. favourable balance as per pass book 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">30.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Bank balance as per Pass book is Rs.30,000, dividend of Rs.1,000 collected by bank but entered in cash book as Rs.100. the cash book bank balance is Rs.:<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.29,100 2. Rs.31,000 3. Rs.31,100 4. Rs.29,900<o:p></o:p></span></div><div align="left" class="MsoTitle"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">31.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">While preparing bank reconciliation statement as per pass book will have to be – or balance as per cash book – by the amount of direct payment by customer into trader’s account with the banker : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. decreased 2. Increased 3. Both 1 and 2 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">32.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Overdraft as per cash book Rs.1,000, cheques issued but not presented in the bank balance as per pass book will be : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Dr Balance PB-000 2. Cr balance PB – 1000<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Dr Balance PB – 2000 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">33.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Bank balance as per cash book is Rs.19,000. Rs.4,000 is entered in the cash book as paid into bank but not credited cash book. The pass book balance is : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.14,000 2. Rs.15,000 3. Rs.23,000 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">34.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Bank balance as per cash book is Rs.570, debit side of the cash book bank column is over added to the extent of Rs.9,500. Overdraft balance as per pass book is Rs. :<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.8,930 2. Rs.10,070 3. Rs.9,570 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">35.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt;">Pass book overdraft balance is Rs.30,000 cheques deposited but not credit is Rs.8,000 what is the balance as per cash book is : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.38,000 2. Rs.22,000 3. Rs.30,000 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: 0.25in; text-align: center;"><span style="font-size: 11pt; line-height: 150%;"> <b><u>ANSWERS</u></b></span></div><div align="left" class="MsoTitle"><span style="font-size: 11pt; line-height: 150%;">1.1 2.2 3.3 4.1 5.2 6.1 7.3 8.1 9.4 10.1 11.2 12.4<o:p></o:p></span></div><div align="left" class="MsoTitle"><span style="font-size: 11pt; line-height: 150%;">13.1 14.3 15.1 16.2 17.2 18.1 19.3 20.1 21.1 22.2 23.3 24.3 <o:p></o:p></span></div><div align="left" class="MsoTitle"><span style="font-size: 11pt; line-height: 150%;">25.3 26.2 27.1 28.3 29.2 30.1 31.3 32.2 33.2 34.1 35.1 <o:p></o:p></span></div></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-85753621320234577552011-12-09T21:02:00.003+05:302012-07-01T21:09:25.120+05:30Management Accounting Multiple Choice Questions<div dir="ltr" style="text-align: left;" trbidi="on">Greetings to fellow blog readers......<br />
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<div class="MsoTitle" style="text-align: center;"><o:p> </o:p><img src="data:image/jpeg;base64,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" /></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Management accounting is for ….<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) shareholders (b) creditors<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) government (d) management <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Management accounting helps the management in ………<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) planning (b) organizing<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) staffing and control (d) all of the above<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">According to …, Management accounting is concerned with accounting information that is useful for management.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) RN Anthony (b) Batty<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) ICWAI (d) None of these<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">In management accounting, the analysis is done for ….<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) monetary transactions (b) non-monetary transactions<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) both (d) none of these<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">The scope of management accounting is extended to ….<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) financial accounting (b) cost accounting<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) statistical methods (d) all of the above<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Which of the following is the function of management accounting ? <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) forecasting , planning, organizing (b) coordination and control<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) analysis, interpretations and communications <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(d) all of the above<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">7.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Management accounting provides information to ….<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) shareholders (b) creditors<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) tax authorities (d) management <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">8.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Match the following :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(A) Cost control & reduction (I) Management accounting<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(B) Net result of a business (II) Cost accounting<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(C) Overall efficiency of the management (III) Financial accounting<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) A-II, B-III, C-I (b) A-III, B-II, C-I (c) A-I, B-II, C-II (d) A-I, B-III, C-II<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">9.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">The basis for cost accounting is ……<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) management accounting (b) financial accounting<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) responsibility accounting (d) none of these<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">10.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Which of the following accounting system helps in pricing, make or buy decisions and selection of suitable product Mix ? <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) financial accounting (b) responsibility accounting<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) management accounting (d) None of these<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">11.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Make or buy decision and selection of suitable product mix are taken with the help of :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) marginal costing technique (b) standard costing technique<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) budgetary control (d) none of these<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">12.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Management accounting uses … for sound organization structure. <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) budgeting (b) standard costing <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) responsibility accounting (d) all of the above. <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">13.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">…helps the management in the evaluation of performance and control.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) marginal costing (b) budgetary control<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) periodical reports (d) none of these<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">14.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Statement [S] The inefficiency of financial accounting will affect the management accounting. <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Explanation [E] The source of information for management accounting is from financial accounting. <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) the statement is wrong (b) the explanation is wrong<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) both explanation and statement are correct<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(d) both are incomplete<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">15.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Which of the following accounting system has a wider scope ? <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) financial accounting (b) management accounting<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) both (d) none of these<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">16.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Management accounting system is suitable for …<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) cement industry (b) rubber industry<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) service sector (d) all of the above<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">17.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Management accounting system cannot replace …<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) management (b) administration<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) both (d) none of these<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">18.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">The management accounting provides information to the management where as financial accounting provides information to ….<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) shareholders (b) creditors<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) government (d) all of the above<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">19.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Financial accounting is concerned with … but management accounting is concerned with … of the business. <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">(a)<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">overall performance, departments or divisions<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">(b)<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">departments or divisions; overall performance<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">(c)<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">financial management; management<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">(d)<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">financial management; administration <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Arial;">20.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Financial accounting is concerned with … but management accounting is concerned with <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(a) past events; current events (b) past events; future events<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">(c) future events; past events (d) current events; future events<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-left: 0.25in; text-align: center;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;"><b>ANSWERS</b></span></div><div class="MsoNormal" style="line-height: 150%; text-align: center;"><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">1.d 2.d 3.a 4.c 5.d 6.d 7.d 8.a 9.b 10.c 11.a 12.d<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: 0.25in; text-align: center;"><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;">13.c</span><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;"> </span><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;">14.c</span><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;"> </span><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;">15.b</span><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;"> </span><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;">16.d</span><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;"> </span><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;">17.c</span><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;"> </span><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;">18.d</span><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;"> </span><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;">19.a</span><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;"> </span><span style="font-family: Arial, sans-serif; font-size: 11pt; text-align: left;">20.b</span><span style="font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;"> </span></div></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-69351916389104059962011-12-05T19:04:00.002+05:302012-06-30T22:21:29.095+05:30Cost Accounting Multiple Choice Questions<div dir="ltr" style="text-align: left;" trbidi="on">Greetings to fellow blog readers......<br />
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<div class="MsoTitle" style="text-align: center;"><b>COST ACCOUNTING PAPER FOR INTERVIEW PREPARATION</b></div><div class="MsoTitle" style="text-align: center;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Costing is a technique of :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Income determination (b) External reporting<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Ascertaining cost (d) Internal reporting<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Which of the following function relates to <a href="http://finance-terminology.blogspot.in/search/label/cost%20accounting">Cost Accounting</a> ?<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Internal Reporting (b) External Reporting<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Interim Reporting (d) Routine Reporting<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">…is useful not only to ascertain the cost but also to control the cost :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Management Accounting (b) Cost Accounting <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Auditing (d) Income Tax<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">One of the functions of cost accounting is proper matching of …with revenue<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Cost (b) Production (c) Sales (d) Stock<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Cost Accounting Assists <a href="http://finance-terminology.blogspot.in/search/label/financial%20accounting">Financial Accounting</a> with regard to the :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Valuation of inventory (b) Determinations of income<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Ascertaining the financial positions (d) Determination of cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Cost Accounting is a tool of :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Financial Accounting (b) Management Accounting<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Auditing (d) Company Accounts<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">7.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Cost Accounting is based on … figures<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Actual (b) Estimated (c) Accrual (d) Historical <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">8.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Incremental Cost is a type of : <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Differential Cost (b) Conversions Cost <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Job Cost (d) Historical Cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">9.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">…is the cost which fluctuates with volume of production :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Fixed Cost (b) Variable cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Semi variable cost (d) controllable cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">10.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">…per unit increases when production volume decreases :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Variable cost (b) Semi Variable cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Controllable cost (d) Fixed Cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">11.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">…is useful for making managerial decisions :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Conversion cost (b) <st1:place w:st="on">Opportunity</st1:place> cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Fixed Cost (d) Incremental cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">12.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">…is the sum total of Direct Wages, Direct Expenses and Factory Overheads :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) <st1:place w:st="on">Opportunity</st1:place> Cost (b) Differential Cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Variable Cost (d) Conversion Cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">13.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Cost of goods produced include : <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Work in progress and total cost (b) Cost of production and prime cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Cost of productions and work in progress (d) None of the above <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">14.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Multiple Costing Method is used in :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Knitwear textile industry (b) cement industry<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Chemical industry (d) Car manufacturing industry<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">15.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Factory overheads = <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Work Cost (b) Prime Cost <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Total Cost (d) Cost of goods sold<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">16.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Direct material + Direct Labour + Direct expenses = <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Factory on cost (b) Prime Cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Cost of goods sold (d) total cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">17.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">…costing used in chemical works :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Operating (b) Single (c) Contract (d) Process<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">18.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">The method of costing used in constructional works is :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Job costing (b) Batch costing<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Process costing (d) Operating costing<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">19.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">In a educational institutions, cost unit is :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Office Staff (b) Students<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Children’s (d) Teachers<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">20.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">In hospitals, cost unit is :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Per tone km (b) Number<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Per Doctor (d) Per bed per day<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">21.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Which of following costing methods represent for group of identical products ?<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Batch (b) Uniform (c) Contract (d) Standard<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">22.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Rent, interest and wages of self owned resources are the examples of :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Direct cost (b) Notional cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Selling overheads (d) Distribution over heads<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">23.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">A statement that sets out the divisional classification of costs is known as :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Income statement (b) Statement of Cost and Profit<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Cost Sheet (d) Financial Statement<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">24.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Which of the following is the main aims of Cost Accounting ?<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Cost Control (b) Cost Ascertainment <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Price Fixation (d) All the above<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">25.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Whereas direct cost is allocable to cost unit or cost centers indirect cost can be :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Allocated (b) Collected (c) Apportioned (d) None of these<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">26.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Direct material is an example of :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Fixed cost (b) <a href="http://finance-terminology.blogspot.in/search/label/variable%20cost">Variable cost</a><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Semi-variable cost (d) Office on cost<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">27.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Which of the following documents is used for issuing materials to the prouction department :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Materials Inspection Note (b) Stores Ledger Note<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Stores Material Control Record (d) Materials Requisition<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">28.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">…is a schedule of materials needed for a job.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Bill of Materials (b) Purchase Requisition<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) Stock Verification Inventory Sheet (d) Materials Transfer Note<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">29.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">Proportional Parts Value Analysis is called as :<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(a) Demand and Supply method (b) Perpetual Inventory System<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">(c) ABC Analysis (d) Break Even analysis<o:p></o:p></span></div><div class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><br />
<h1 style="text-align: center;">ANSWERS</h1><div class="MsoNormal" style="line-height: 150%;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">1.c 2.a 3.b 4.a 5.a 6.b 7.b 8.a 9.b 10.d 11.b 12.d<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">13.c 14.d 15.a 16.b 17.d 18.a 19.b 20.d 21.a 22.b 23.c 24.d<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;">25.c 26.b 27.d 28.a 29.c <o:p></o:p></span></div></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: Arial, sans-serif; font-size: 11pt; line-height: 150%;"><br />
</span></div></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-73584396713306013562011-11-30T19:37:00.003+05:302012-06-30T22:13:53.968+05:30Financial Accounting multiple choice questions-4<div dir="ltr" style="text-align: left;" trbidi="on">Greetings to fellow blog readers......<br />
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<div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">77.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following accounts have only credit balance ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Accounts payable account 2. Salaries outstanding <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Reserve fund a/c 4. All of the above<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">78.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following accounts may be a debit balance ?<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Discount received a/c 2. Sales a/c<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Trade expenses a/c 4. Loan account <o:p></o:p></span><br />
<div style="text-align: center;"><span style="font-size: 15px; line-height: 22px;"><b><br />
</b></span></div></div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">79.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Cash book records :<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. All receipts and payments of cash 2. All cash and credit sales of goods<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. All cash and credit sales of goods 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">80.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Subsidiary books can be divided into how many types ?<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. 2 2. 8 3. 4 4. 7<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">81.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Cash discount is provided on : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Sales 2. Prompt payments<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Purchase 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 15px; line-height: 22px;">82</span><span style="font-size: 11pt; line-height: 150%;">.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Cash book is a ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Ledger a/c 2. Subsidiary Journal and ledger a/c <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Subsidiary Journal only 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">83.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following books should be used to record purchase if furniture on credit ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Journal book 2. Journal proper<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Cash book 4. Purchase book <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">84.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following <a href="http://finance-terminology.blogspot.in/search/label/accounting">accounts</a> is increased by debit entries ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Machinery accounts 2. Purchase return accounts<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Discount received accounts 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">85.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The debit balance in the banks account is :<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. An asset 2. A Liability<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. An expenses 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">86.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Return outwards book makes a record of : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Goods returned to the suppliers 2. Goods returned by the customers<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Goods returned by the proprietors 4. None of these <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">87.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">A purchases book is kept to record : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. All purchases of goods 2. All cash purchases<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. All credit purchases 4. All credit purchases of goods <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">88.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">A Return outward book is kept to record : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Return of goods purchased 2. Returns of anything purchased<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Returns of goods sold 4. Returns of anything sold<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">89.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The total of the sales book is posted periodically to the : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Credit of sales account 2. Debit of purchases account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. credit of capital account 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">90.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Sales book is kept to record : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. All sales of goods for cash 2. All credit sales<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. All credit sales of goods 4. Returns of goods <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">91.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Sales returns book is kept to record : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Returns of goods sold<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Returns of goods purchased by the proprietor for his personal use <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Returns of machinery purchased<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">92.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">A business has assets of Rs.20,000 and the owner’s equity is Rs.8,000. What is the amount of liabilities ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.12,000 2. Rs.28,000 3. Rs.14,000 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">93.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Cash sales are recorded in : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Sales book 2. Journal 3. Bank a/c 4. Cash book<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">94.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">If stock worth Rs.10,000 (That has not been insured) is destroyed by fire. <a href="http://finance-terminology.blogspot.in/search/label/accounting">Accounting</a> entry is <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Profit & Loss a/c – Dr 10,000 2. Stock a/c – Dr. 10,000<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;"> To Trading a/c – 10,000 To Trading a/c – 10,000<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Trading a/c – Dr 10,000 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;"> To Stock a/c – 10,000 <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">95.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Preparation of trial balance helps in locating errors of ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Omission 2. A clerical nature<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Commission 4. All types <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">96.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">In which of the following would an adjusting entry for depreciation be made ?<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Cash book 2. Journal<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Sales book 4. Purchases book <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">97.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">What is the accounting entry required for issuing a purchase order of Rs.10,000 to S. Sahay ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Purchases a/c – Dr. 10,000 2. Purchases order a/c – Dr. 10,000<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;"> To Cash a/c – 10,000 To <st1:place w:st="on">S. Sahay</st1:place> a/c – 10,000<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Purchases order a/c – Dr. 10,000 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;"> To S. Sahay a/c – 10,000<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">98.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following accounts has only credit entries ?<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Accounts payable 2. <a href="http://finance-terminology.blogspot.in/search/label/capital">Capital</a> a/c<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Reserve fund a/c 4. All the above <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">99.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Receipt of Rs.2,500 from Kamal, a debtor has not been recorded in the books. The profit would shows ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. an increase of Rs.2,500 2. A decrease of Rs.2,500<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Neither increase nor decrease 4. None of the above <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;"> <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: 34.0pt; mso-list: l0 level1 lfo3; tab-stops: list 34.0pt; text-align: justify; text-indent: -34.0pt;"><span style="font-size: 11pt; line-height: 150%;">100.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">A chronological record of transactions may be found in : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: 34.0pt; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Balance Sheet 2. Trial balance<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: 34.0pt; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Ledger 4. Journal<o:p></o:p></span><br />
<span style="font-size: 11pt; line-height: 150%;"></span><br />
<div style="font-size: medium; line-height: normal; text-align: center;"><span style="font-size: 11pt; line-height: 150%;"><span style="font-size: 11pt; line-height: 22px;"><b><u>ANSWERS</u></b></span></span></div><div style="font-size: medium; line-height: normal; text-align: center;"><span style="font-size: 11pt; line-height: 150%;"><span style="font-size: 11pt; line-height: 22px;"></span></span></div><div class="MsoTitle" style="text-align: center;"><span style="font-size: 11pt; line-height: 150%;"><span style="font-size: 11pt;"><span style="font-size: 11pt;">77.4 78.4 79.1 80.2 81.2 82.2 83.2 84.1<o:p></o:p></span></span></span></div><div class="MsoTitle" style="text-align: center;"><span style="font-size: 11pt; line-height: 150%;"><span style="font-size: 11pt;"><span style="font-size: 11pt;">85.2 86.1 87.4 88.3 89.1 90.3 91.1 92.1 93.4 94.1 95.2 96.4<o:p></o:p></span></span></span></div><span style="font-size: 11pt; line-height: 150%;"><span style="font-size: 11pt;"></span></span><br />
<div style="text-align: center;"><span style="font-size: 11pt; line-height: 150%;"><span style="font-size: 11pt;"><span style="font-family: 'Times New Roman', serif; font-size: 11pt; line-height: 150%;">97.4 </span><span style="font-family: 'Times New Roman', serif; font-size: 11pt; line-height: 150%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 11pt; line-height: 150%;">98.4 </span><span style="font-family: 'Times New Roman', serif; font-size: 11pt; line-height: 150%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 11pt; line-height: 150%;">99.3 </span><span style="font-family: 'Times New Roman', serif; font-size: 11pt; line-height: 150%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 11pt; line-height: 150%;">100.4 </span></span></span></div></div></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-15679069313390921432011-11-20T19:34:00.002+05:302012-06-30T22:08:06.947+05:30Financial Accounting multiple choice questions-3<div dir="ltr" style="text-align: left;" trbidi="on">Greetings to fellow blog readers......<br />
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<div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">51.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Bank Account is a … Account :<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Personal 2. Real<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Nominal 4. Fictitious <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">52.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following <a href="http://finance-terminology.blogspot.in/search/label/accounting">Account</a> is Real a/c ?<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Salaries 2. Shares and debentures of companies<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Debtors account 4. Bank account <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">53.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Insurance un expired account is : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Personal a/c 2. Nominal a/c<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Real a/c 4. Fictitious a/c <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">54.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Provision for doubtful <a href="http://finance-terminology.blogspot.in/search/label/debts">debts</a> account is a … account : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Real account 2. Personal account <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. nominal Account 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">55.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Goodwill a/c is a … Account .<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Real 2. Personal<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Nominal 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">56.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">A club’s account would be a … account .<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Real 2. Personal<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Nominal 4. Fictitious <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">57.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">A proprietor’s drawing account is a … account <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Real 2. Personal<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Nominal 4. Fictitious<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">58.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The rule ‘Debit what comes in and credit what goes out’ is applicable to : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Real accounts 2. Personal accounts<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Nominal accounts 4. Fictitious accounts <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">59.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Purchases account is a … account <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Real 2. Nominal<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Personal 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">60.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Salary prepaid account is a … account ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Real a/c 2. Personal a/c<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Nominal a/c 4. Fictitious <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">61.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Sales Return account is a … account ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Real 2. Personal<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Nominal 4. Fictitious<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">62.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">What type of account is a trading account ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Real 2. Personal <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Nominal 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">63.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Debit means : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Decrease in assets 2. Increase in <a href="http://finance-terminology.blogspot.in/search/label/liability.contingent">liabilities</a><o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. An entry on the left hand side of an account 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">64.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Purchases book is an example of … Journal :<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. General book 2. Special book<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Both 1 & 2 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">65.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">All loses and expenses are : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Credited 2. Debited<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Both 1 & 2 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">66.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Sales Journal is also called : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Day book 2. Invoice book<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. special book 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">67.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Salary paid in advance falls on the side : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Debit 2. Credit<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Both 1 & 2 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">68.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Ledger is a book in which ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Only real accounts are opened <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Only real and personal accounts are opened<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">All the real, personal & nominal accounts are opened<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">69.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The trial balance shows ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Both debits and credit balance 2. Only debit balance<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Only credit balance 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">70.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Cash Account always what ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Credit balance 2. Debit balance<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Both 1 & 2 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">71.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">In Book-keeping posting means ?<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">To record the transactions from the Journal to ledger<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">To record the transactions in Journal<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Both 1 and 2 is correct<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">72.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The basic rule of book-keeping, “debit the receiver and credit the giver” is applicable to : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Real account 2. Nominal account <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. personal account 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">73.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The basic rule of book-keeping “ debit the all loses and expenses and credit that all income and gains”<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Nominal account 2. Real account <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Personal account 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">74.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The credit balance of bank account indicate : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Amount payable by the bank 2. Amount payable to the bank<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Cash at bank 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">75.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following accounts will invariably have a debit balance ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Bank Account 2. Accounts receivable account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3.<a href="http://finance-terminology.blogspot.in/search/label/accounting"> Accounts</a> payable account 4. Loan account <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">76.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following accounts will invariably have a credit balance ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Discount account 2. Accounts payable account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Cash account 4. None of these<o:p></o:p></span><br />
<div style="text-align: center;"><span style="font-size: 11pt; line-height: 150%;"><b>ANSWERS</b></span></div><div style="text-align: center;"><span style="font-size: 11pt; line-height: 150%;"></span></div><div class="MsoTitle" style="text-align: center;"><span style="font-size: 11pt; line-height: 150%;"><span style="font-size: 11pt; line-height: 150%;">51.1 52.2 53.1 54.3 55.1 56.1 57.2 58.1 59.1 60.2<o:p></o:p></span></span></div><span style="font-size: 11pt; line-height: 150%;"> <div class="MsoTitle" style="text-align: center;"><span style="font-size: 11pt; line-height: 150%;">61.2 62.2 63.3 64.2 65.2 66.1 67.1 68.3 69.1 70.2 71.1 72.3<o:p></o:p></span></div><span style="font-family: 'Times New Roman', serif; font-size: 11pt;">73.1 74.2 75.2 76.2</span></span></div></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-12813154871357217792011-11-15T19:34:00.002+05:302012-06-30T22:00:04.576+05:30Financial Accounting multiple choice questions-2<div dir="ltr" style="text-align: left;" trbidi="on">Greetings to fellow blog readers.....<br />
<div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Window dressing is prohibited by the : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Accural <a href="http://finance-terminology.blogspot.in/search/label/accounting%20concept">concept</a> 2. Convention of disclosure<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Convention of conservatism 4. Convention of materiality <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Qualitative transactions are not recorded in the <a href="http://finance-terminology.blogspot.in/search/label/accounting">accounts</a> due to : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Accrual concept 2. Dual concept <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Convention of materiality 4. Money measurement concept <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The concept of realization would imply ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">When order is received<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">When cash is received from debtors<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">When goods are delivered to customer <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Meeting the plan targets<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following is the users of <a href="http://finance-terminology.blogspot.in/search/label/accounting">Accounting</a> ?<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Share holders 2. Creditors<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Labour 4. All of the above<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">5.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following is correct equation ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Assets = <a href="http://finance-terminology.blogspot.in/search/label/liability.contingent">Liabilities</a> + Capital 2. Assets = Capital – Liabilities <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Capital = Assets – Liabilities 4. Both 1 & 3 <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">6.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Financial Accounting is preparation of Accounting generally on what basis ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Accrual basis 2. Historical basis<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Future basis 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">7.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which of the following represents the Accounting equation ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Capital + Liabilities – Assets = 0 2. <a href="http://finance-terminology.blogspot.in/search/label/assets">Assets</a> – Liabilities – Capital = 0<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Liabilities = Assets – capital 4. All of the above<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">8.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">A principle is … to be the extent that the accounting information is not influenced by the personal bias of those who furnish the information ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Going concern concept 2. Money measurement concept<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Cost concept 4. Objective <a href="http://finance-terminology.blogspot.in/search/label/accounting%20concept">concept </a><o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">9.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">According to the … concept, revenue is considered as being raised on the date at which it is realized ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Assumption 2. Basic condition<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Both 1 & 2 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">10.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Contingent liability is shown in the balance sheet because of : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. convention of consistency 2. Convention of materiality<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Convention of disclosure 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">11.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Revenue is considered as being earned when ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Cash is received 2. Production is done<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Sale is effected 4. None of the above<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">12.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Accounting does not record non-financial transaction because of : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Measurement concept 2. Accrual concept<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Entity concept 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">13.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The system of recording transactions based on dual concept is called ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Double accounting system 2. Double entry system<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Single entry system 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">14.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">A contractor usually takes up revenue and earnings on his project on the following basis ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Cash basis 2. Sales basis<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Production basis 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">15.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">When applied to the balance sheet, the convention of conservatism result in ?<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Understatement of assets<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Understatement of liabilities and <a href="http://finance-terminology.blogspot.in/search/label/provision">provisions </a><o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Overstatement of capital<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">16.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The accounting equation is based on : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Going concern concept 2. Dual aspect concept<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Business entity concept 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">17.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Market value of investments is shown as a footnote according to : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Going concern concept 2. Dual aspect concept<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Business entity concept 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">18.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Market value of investments is shown as a footnote according to : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Convention of disclosure 2. Convention of consistency<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. convention of conservatism 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">19.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which is the correct ?<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Capital = Assets + Liabilities 2. Capital = Net Assets<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Liabilities = Capital – <a href="http://finance-terminology.blogspot.in/search/label/assets">Assets</a> 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">20.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The profit made by a concern during the past one year would be, when the capital increased by Rs.40,000 and drawings amounted to Rs.10,000 :<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.50,000 2. Rs.30,000<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Rs.40,000 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">21.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">In each of the following cases indicate the alternative which you consider to be correct; the liabilities of firm are Rs.3,000. The capital of the proprietor is Rs.7,000 the total assets are : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Rs.7,000 2. Rs.10,000 3. Rs.4,000 4. Rs.4,500<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">22.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The assets of business on <st1:date day="31" month="3" w:st="on" year="1996">31<sup>st</sup> March 1996</st1:date> are worth Rs.50,000 and its capital is Rs.35,000. Its liabilities on that date shall be Rs. : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. 85,000 2. 15,000 3. 35,000 4. 80,000<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">23.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Cash book is an example of : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. General Journal 2. Specific Journal<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. It is not a Journal 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">24.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Commission received in advance is of the nature of : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Real account 2. Nominal account <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Personal account 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">25.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Rebate on Bills discounted account is of the nature of : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Personal Account 2. Nominal Account <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Real account 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">26.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Patent rights account is of the nature of : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Nominal Account 2. Personal Account <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Real account 4. None of these<o:p></o:p></span><br />
<div style="text-align: center;"><span style="font-size: 11pt; line-height: 150%;"><b><u>ANSWERS</u></b></span></div><span style="font-size: 11pt; line-height: 150%;"></span><br />
<div align="left" class="MsoTitle" style="text-align: left;"><span style="font-size: 11pt; line-height: 150%;"><span style="font-size: 11pt; line-height: 150%;">1.4 2.4 3.3 4.4 5.4 6.3 7.4 8.4 9.2 10.3 11.3 12.1 </span></span><span style="font-size: 11pt; line-height: 150%;">13.2 </span><span style="font-size: 11pt; line-height: 150%;">14.4 </span></div><div align="left" class="MsoTitle" style="text-align: left;"><span style="font-size: 11pt; line-height: 150%;">15.1 16.2 17.3 18.1 19.3 20.1 21.2 22.2 23.2 24.3 </span><span style="font-family: 'Times New Roman', serif; font-size: 11pt; line-height: 150%; text-align: justify;">25.1 26.3</span></div></div></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-52404931941555593492011-10-25T14:54:00.001+05:302012-07-02T22:10:34.107+05:30Shares and Mutual Funds-6<div dir="ltr" style="text-align: left;" trbidi="on">
Greetings to fellow blog readers......<br />
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<b><span style="font-family: Arial, sans-serif;">Balanced Fund</span></b></div>
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<span style="font-family: Arial, sans-serif;">The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and <a href="http://finance-terminology.blogspot.in/search/label/debts">debt</a> instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, <span class="spelle"><a href="http://finance-terminology.blogspot.in/search/label/nav">NAVs</a></span> of such funds are likely to be less volatile compared to pure equity funds. </span></div>
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<b><span style="font-family: Arial, sans-serif;">Money Market or Liquid Fund</span></b></div>
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<span style="font-family: Arial, sans-serif;">These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, <a href="http://finance-terminology.blogspot.in/search/label/commercial%20paper">commercial paper</a> and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.</span></div>
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<b><span style="font-family: Arial, sans-serif;">Gilt Fund</span></b></div>
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<span style="font-family: Arial, sans-serif;">These funds invest exclusively in government securities. Government securities have no default risk. <span class="spelle"><a href="http://finance-terminology.blogspot.in/search/label/nav">NAVs</a></span> of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes. </span></div>
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<b><span style="font-family: Arial, sans-serif;">Index Funds </span></b></div>
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<span style="font-family: Arial, sans-serif;">Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc these schemes invest in the securities in the same <span class="spelle">weightage</span> comprising of an index. <span class="spelle">NAVs</span> of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as "tracking error" in technical terms. Necessary disclosures in this regard are made in the offer document of the <a href="http://finance-terminology.blogspot.in/search/label/mutual%20fund">mutual fund</a> scheme. </span></div>
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<span style="font-family: Arial, sans-serif;">There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges. </span></div>
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<b><span lang="EN-GB" style="font-family: Arial, sans-serif;">Earning per share (EPS):</span></b><span lang="EN-GB" style="font-family: Arial, sans-serif;"> It is a financial ratio that gives the information regarding earing available to each equity share. It is very important financial ratio for assessing the state of market price of share. The EPS statement is applicable to the enterprise whose equity shares are listed in <a href="http://finance-terminology.blogspot.in/search/label/stock">stock</a> exchange.<o:p></o:p></span></div>
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<b><u><span lang="EN-GB" style="font-family: Arial, sans-serif;">Types of EPS:<o:p></o:p></span></u></b></div>
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<span lang="EN-GB" style="font-family: Arial, sans-serif;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span lang="EN-GB" style="font-family: Arial, sans-serif;">Basic EPS ( with normal shares)<o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: Arial, sans-serif;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span lang="EN-GB" style="font-family: Arial, sans-serif;">Diluted EPS (with normal shares and convertible shares)<b><o:p></o:p></b></span></div>
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<b><span lang="EN-GB" style="font-family: Arial, sans-serif;">EPS Statement : <o:p></o:p></span></b></div>
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<span style="font-family: Arial, sans-serif;">Sales <b> </b>****<o:p></o:p></span></div>
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<span style="height: 2px; left: 0px; margin-left: 263px; margin-top: 16px; position: absolute; width: 62px; z-index: 251655680;"><img height="2" src="file:///C:/Users/ACBN/AppData/Local/Temp/msohtmlclip1/01/clip_image001.gif" v:shapes="_x0000_s1026" width="62" /></span><span style="font-family: Arial, sans-serif;">Less: <a href="http://finance-terminology.blogspot.in/search/label/variable%20cost">variable cost </a> ****<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">Contribution</span> ****</div>
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<span style="font-family: Arial, sans-serif;">Less: Fixed cost ****<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> ----------------</span></div>
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<span style="position: relative; z-index: 251656704;"><span style="height: 2px; left: 263px; position: absolute; top: -1px; width: 62px;"><img height="2" src="file:///C:/Users/ACBN/AppData/Local/Temp/msohtmlclip1/01/clip_image001.gif" v:shapes="_x0000_s1027" width="62" /></span></span></div>
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<span style="font-family: Arial, sans-serif;"> EBIT *****<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">Less: Interest *****<o:p></o:p></span></div>
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<span style="position: relative; z-index: 251657728;"><span style="height: 2px; left: 275px; position: absolute; top: -1px; width: 62px;"><img height="2" src="file:///C:/Users/ACBN/AppData/Local/Temp/msohtmlclip1/01/clip_image001.gif" v:shapes="_x0000_s1028" width="62" /></span></span><span style="font-family: Arial, sans-serif;"> EBT ****<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; tab-stops: 265.4pt; text-align: justify;">
<span style="height: 2px; left: 0px; margin-left: 275px; margin-top: 15px; position: absolute; width: 62px; z-index: 251658752;"><img height="2" src="file:///C:/Users/ACBN/AppData/Local/Temp/msohtmlclip1/01/clip_image001.gif" v:shapes="_x0000_s1029" width="62" /></span><span style="font-family: Arial, sans-serif;">Less: Tax **** </span></div>
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<span style="font-family: Arial, sans-serif;"> ----------------- <o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> Earnings ****<o:p></o:p></span></div>
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<span style="height: 2px; left: 0px; margin-left: 275px; margin-top: 19px; position: absolute; width: 74px; z-index: 251659776;"><img height="2" src="file:///C:/Users/ACBN/AppData/Local/Temp/msohtmlclip1/01/clip_image002.gif" v:shapes="_x0000_s1030" width="74" /></span><span style="font-family: Arial, sans-serif;"> Less: preference dividend ****<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">Earnings available to equity <o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">Share holders (A) *****<o:p></o:p></span></div>
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<span style="position: relative; z-index: 251660800;"><span style="height: 2px; left: 263px; position: absolute; top: -3px; width: 98px;"><img height="2" src="file:///C:/Users/ACBN/AppData/Local/Temp/msohtmlclip1/01/clip_image003.gif" v:shapes="_x0000_s1031" width="98" /></span></span></div>
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<span style="font-family: Arial, sans-serif;">EPS=A/ No of outstanding Shares<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">EBIT and Operating Income are same<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">The higher the EPS, the better is the performance of the company.<o:p></o:p></span></div>
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<b><span style="font-family: Arial, sans-serif;">Cash Flow Statement:</span></b><span style="font-family: Arial, sans-serif;"> It is a statement which shows inflows (receipts) and outflows (payments) of cash and its equivalents in an enterprise during a specified period of time. According to the revised accounting standard 3, an enterprise prepares a cash flow statement and should present it for each period for which financial statements are presented.<o:p></o:p></span></div>
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<b><span style="font-family: Arial, sans-serif;">Funds Flow Statement:</span></b><span style="font-family: Arial, sans-serif;"> Fund means the net working capital. Funds flow statement is a statement which lists first all the sources of funds and then all the applications of funds that have taken place in a business enterprise during the particular period of time for which the statement has been prepared. The statement finally shows the net increase or net decrease in the <a href="http://finance-terminology.blogspot.in/search/label/working%20capital">working capital</a> that has taken place over the period of time.<o:p></o:p></span></div>
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<b><span style="font-family: Arial, sans-serif;">Float:</span></b><span style="font-family: Arial, sans-serif;"> The difference between the available balance and the ledger balance is referred to as the float.<o:p></o:p></span></div>
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<b><span style="font-family: Arial, sans-serif;">Collection Float:</span></b><span style="font-family: Arial, sans-serif;"> The amount of cheque deposited by the firm in the bank but not cleared.<o:p></o:p></span></div>
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<b><span style="font-family: Arial, sans-serif;">Payment Float:</span></b><span style="font-family: Arial, sans-serif;"> The amount of cheques issued by the firm but not paid for by the bank.<o:p></o:p></span></div>
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<b><span style="font-family: Arial, sans-serif;">Operating Cycle:</span></b><span style="font-family: Arial, sans-serif;"> The operating cycle of a firm begins with the acquisition of raw material and ends with the collection of receivables.<o:p></o:p></span></div>
</div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-33121154411305235192011-10-20T19:05:00.003+05:302012-06-30T22:17:45.757+05:30Financial Accounting multiple choice questions<div dir="ltr" style="text-align: left;" trbidi="on">Greetings to fellow blog readers......<br />
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<div class="MsoTitle" style="text-align: center;"><span style="font-size: 18pt; line-height: 150%;">FINANCIAL ACCOUNTING QUESTION PAPER<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Accounting principles are generally based on : <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. Subjectivity 2. Convenience in recording <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">3. Practicability 4. All of the above <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Generally the <a href="http://finance-terminology.blogspot.in/search/label/accounting">Accounting</a> is : <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. Accountancy 2. Business language<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">3. Business 4. None of these<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Which is the responsibility of Accounting ? <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. Classification 2. Summarizing <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">3. Recording 4. All of the above<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The system of recording transactions based on dual concept is called ? <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. Double accounting system 2. Single entry system<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">3. Double entry system 4. None of these<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div align="left" class="MsoTitle" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-size: 11pt; line-height: 150%;">5.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Accounting is a ? <o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">1. Science 2. Art<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><span style="font-size: 11pt; line-height: 150%;">3. Both 1 & 2 4. None of these<o:p></o:p></span></div><div align="left" class="MsoTitle" style="margin-left: 0.25in;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">6.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">According to money measurement concept the following will be recorded in the books of accounts : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Value of the building 2. Quality control in the business<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Health of the Employees of the company 4. All of the above <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">7.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">According to the – concept the proprietor is treated as a creditor to the extent of his capital : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Cost 2. Money measurement <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Entity 4. Dual Aspect <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">8.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Cost concept envisages the recording of the following in the books of Accounts ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Knowledge and will acquired by business executive <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Change effected because of some political events<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">An asset an its cost<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l0 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;"> <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">9.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Purpose of <a href="http://finance-terminology.blogspot.in/search/label/accounting">Accounting</a> is to provide financial information to : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Board of directors 2. Tax Authorities <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Investors 4. Share holders<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">5. All of the above <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">10.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">According to the money measurement concept, the following will be recorded in the books of accounts ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">1.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Extra profits made due introduction of a budgetary control system<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Quality control in the business<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Commission payable to a salesman<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .5in; mso-list: l1 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">All of the above<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">11.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Bank Account is a : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Nominal Account 2. Real Account <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Personal Account 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">12.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">According to going concern concept a business is viewed as having : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. A limited life 2. An indefinite life<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. A very long life 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">13.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The convention of conservatism will have the effect of : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Overstatement of <a href="http://finance-terminology.blogspot.in/search/label/assets">assets</a> 2. Understatement of liabilities<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. understatement of assets<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">4. Understatement of provisions for bad and doubtful debts<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">14.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Stock-in-trade does not include : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Raw material 2. Items held as fixed assets<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Finished goods 4. Goods in the process of manufacture<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">15.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The term fixed assets include : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Stock of finished goods 2. Bank balance<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Goodwill 4. Loose tools <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">16.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">The term current assets does not include : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. stock-in-trade 2. Cash<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. debtors 4. Building <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">17.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Current liabilities do not include : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Unclaimed dividend 2. Creditors<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Capital 4. Bank overdraft <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">18.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Heavy initial advertisement expense on introducing a new product in the market should be classified as : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Capital expenditure 2. Deferred revenue expenditure<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Revenue expenditure 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">19.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">A chartered Accountant who renders accounting new product in the market should be classified as : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Government Accountant 2. Private Accountant<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Public Accountant 4. Internal Accountant <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">20.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Market value of investments is shown as a foot note to balance sheet according to:<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. consistency concept 2. Disclosures concept<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. materiality concept 4. Going concern concepts<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;"> <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">21.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">Secret reserves may result by : <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. overvaluation of stock 2. Creating general reserve<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. providing excessive depreciation 4. Under valuation of liabilities<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">22.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">A reserve is a charge against ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Trading Account 2. <a href="http://finance-terminology.blogspot.in/search/label/profit%20and%20loss%20account">Profit and loss</a> appropriation account<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Profit and loss account 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">23.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">What sort of reserve is a provision ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. General reserve 2. <a href="http://finance-terminology.blogspot.in/search/label/capital">Capital</a> reserve<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Specific reserve 4. None of these<o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><br />
</div><div class="MsoTitle" style="margin-left: .25in; mso-list: l2 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><span style="font-size: 11pt; line-height: 150%;">24.<span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 11pt; line-height: 150%;">According to the money measurement concept which of the following will be recorded in the books of account ? <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">1. Quality control in the business 2. Commission payable to salesman <o:p></o:p></span></div><div class="MsoTitle" style="margin-left: .25in; text-align: justify;"><span style="font-size: 11pt; line-height: 150%;">3. Extra profit made owing to a new system 4. All of the above <o:p></o:p></span><br />
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<div class="MsoTitle" style="font-size: medium; line-height: normal; text-align: center;"><span style="font-size: 11pt; line-height: 150%;">ANSWERS </span></div><div align="left" class="MsoTitle" style="font-size: medium; line-height: normal;"><span style="font-size: 11pt; line-height: 150%;"><span style="font-size: 11pt; line-height: 22px;">1.3 2.1 3.3 4.3 5.3 6.1 7.3 8.3 9.5 10.3 11.3 12.2<o:p></o:p></span></span></div><div align="left" class="MsoTitle" style="font-size: medium; line-height: normal;"><span style="font-size: 11pt; line-height: 150%;"><span style="font-size: 11pt; line-height: 22px;">13.2 14.2 15.3 16.4 17.4 18.2 19.3 20.2 21.3 22.2 23.3 24.2</span></span></div></div></div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-14347480502268068182011-09-29T07:19:00.001+05:302012-07-02T22:10:56.857+05:30Ratio Analysis-2<div dir="ltr" style="text-align: left;" trbidi="on">
Greetings to fellow blog readers......<br />
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<b><span style="font-family: Arial, sans-serif;">4. Profitability Ratios: </span></b><span style="font-family: Arial, sans-serif;">Profitability <a href="http://finance-terminology.blogspot.in/search/label/ratio%20analysis">ratios</a> measure the profitability of a concern generally. They are calculated either in relation to sales or in relation to investment.<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Return on <a href="http://finance-terminology.blogspot.in/search/label/capital">Capital</a> Employed or Return on Investment (ROI): This ratio reveals the earning capacity of the capital employed in the business.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> =PBIT /Capital Employed<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Return on Proprietors Fund / Earning Ratio: Earn on Net Worth<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> =Net Profit (After tax)/Proprietors Fund<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Return on Ordinary shareholders Equity or Return on Equity Capital: It expresses the return earned by the equity shareholders on their investment.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">=<a href="http://finance-terminology.blogspot.in/search/label/profit%20and%20loss%20account">Net Profit</a> after tax and Dividend / Proprietors fund or Paid up equity Capital<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Price Earning Ratio: It expresses the relationship between marketprice of share on a company and the earnings per share of that company.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> =MPS (Market Price per Share) / EPS<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Earning Price Ratio/ Earning Yield:<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> = EPS / MPS<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">EPS= Net Profit (After tax and Interest) / No. Of Outstanding Shares.<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Dividend Yield ratio: It expresses the relationship between dividend earned per share to earnings per share.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> = Dividend per share (DPS) / Market value per share<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Dividend pay-out ratio: It is the ratio of dividend per share to earning per share.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">= DPS / EPS<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> <o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">DPS: It is the amount of the dividend payable to the holder of one equity share. =Dividend paid to ordinary shareholders / No. of ordinary shares<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> C.G.S=Sales- G.P<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> G.P= Sales – C.G.S<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> G.P.Ratio =G.P/Net sales*100<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">Net Sales= Gross Sales – Return inward- Cash discount allowed<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">Net profit ratio=Net Profit/ Net Sales*100<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">Operating Profit ratio=O.P/Net Sales*100<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">Interest Coverage Ratio= Net Profit (Before Tax & Interest) / Fixed Interest Classes<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> </span><b><span lang="EN-GB" style="font-family: Arial, sans-serif;">Return on Investment (ROI):</span></b><span lang="EN-GB" style="font-family: Arial, sans-serif;"> It reveals the earning capacity of the capital employed in the business. It is calculated as,<o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: Arial, sans-serif;"> EBIT/Capital employed.<o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: Arial, sans-serif;">The return on capital employed should be more than the cost of capital employed.<o:p></o:p></span></div>
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<span lang="EN-GB" style="font-family: Arial, sans-serif;">Capital employed =Equity Capital + Preference sharecapital + Reserves + Longterm loans and Debentures - Fictitious <a href="http://finance-terminology.blogspot.in/search/label/assets">Assets</a> – Non Operating Assets<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> <o:p></o:p></span></div>
</div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0tag:blogger.com,1999:blog-1874956538724758040.post-36877616593124908592011-09-20T00:06:00.000+05:302012-07-02T22:09:45.686+05:30Ratio Analysis<div dir="ltr" style="text-align: left;" trbidi="on">
Greetings to fellow blog readers......<br />
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<span style="font-family: Arial, sans-serif;"> A ratio analysis is a mathematical expression. It is the quantitative relation between two. It is the technique of interpretation of<a href="http://finance-terminology.blogspot.in/search/label/finance"> financial</a> statements with the help of meaningful ratios. Ratios may be used for comparison in any of the following ways.<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Comparison of a firm its own performance in the past.<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Comparison of a firm with the another firm in the industry<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Comparison of a firm with the industry as a whole<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">TYPES OF RATIOS<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Liquidity ratio<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Activity ratio<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Leverage ratio<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">profitability ratio<o:p></o:p></span></div>
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<b><span style="font-family: Arial, sans-serif;">1. Liquidity ratio:</span></b><span style="font-family: Arial, sans-serif;"> These are ratios which measure the short term <a href="http://finance-terminology.blogspot.in/search/label/finance">financial </a>position of a firm.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> i. Current ratio: It is also called as working capital ratio. The current ratio measures the ability of the firm to meet its currnt liabilities-current assets get converted into cash during the operating cycle of the firm and provide the funds needed to pay current liabilities. i.e<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> Current <a href="http://finance-terminology.blogspot.in/search/label/assets">assets</a><o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> ----------------------------</span></div>
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<span style="position: relative; z-index: 251657728;"><span style="height: 2px; left: 196px; position: absolute; top: -1px; width: 122px;"><img height="2" src="file:///C:/Users/ACBN/AppData/Local/Temp/msohtmlclip1/01/clip_image001.gif" v:shapes="_x0000_s1026" width="122" /></span></span><span style="font-family: Arial, sans-serif;"> Current <a href="http://finance-terminology.blogspot.in/search/label/liability.contingent">liabilities</a><o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">Ideal ratio is 2:1<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> <o:p></o:p></span></div>
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<span style="background-color: white; font-family: Arial, sans-serif; line-height: 150%;"> ii. Quick or Acid test Ratio: It tells about the firm’s liquidity position. It is a fairly stringent measure of liquidity. </span></div>
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<span style="font-family: Arial, sans-serif;"> =Quick assets/Current Liabilities <o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> Ideal ratio is 1:1<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> Quick Assets =Current Assets – Stock - Prepaid Expenses <o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> iii. Absolute Liquid Ratio:<o:p></o:p></span></div>
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<b><span style="font-family: Arial, sans-serif;"> </span></b><span style="font-family: Arial, sans-serif;">A.L.A/C.L<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> <st1:state w:st="on"><st1:place w:st="on">AL</st1:place></st1:state> assets=Cash + Bank + Marketable Securities.<o:p></o:p></span></div>
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<b><span style="font-family: Arial, sans-serif;">2.</span></b><span style="font-family: Arial, sans-serif;"> <b>Activity Ratios or Current Assets management or Efficiency Ratios: </b><o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">These ratios measure the efficiency or effectiveness of the firm in managing its resources or <a href="http://finance-terminology.blogspot.in/search/label/assets">assets</a><o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Stock or Inventory Turnover Ratio: It indicates the number of times the stock has turned over into sales in a year. A stock turn over ratio of ‘8’ is considered ideal. A high stock turn over ratio indicates that the <a href="http://finance-terminology.blogspot.in/search/label/stock">stocks </a>are fast moving and get converted into sales quickly.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">= Cost of goods Sold/ Avg. Inventory<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Debtors Turnover Ratio: It expresses the relationship between debtors and sales.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">=Credit Sales /Average Debtors<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Creditors Turnover Ratio: It expresses the relationship between creditors and purchases.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">=Credit Purchases /Average Creditors<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Fixed Assets Turnover Ratio: A high fixed asset turn over ratio indicates better utilization of the firm fixed assets. A ratio of around 5 is considered ideal.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">= Net Sales / Fixed Assets<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Working Capital Turnover Ratio: A high <a href="http://finance-terminology.blogspot.in/search/label/working%20capital">working capital</a> turn over ratio indicates efficiency utilization of the firm’s funds.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">=CGS/Working Capital<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">=W.C=C.A – C.L.<o:p></o:p></span></div>
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<b><span style="font-family: Arial, sans-serif;">3. Leverage Ratio: </span></b><span style="font-family: Arial, sans-serif;">These ratios are mainly calculated to know the long term solvency position of the company.<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Debt Equity Ratio: The <a href="http://finance-terminology.blogspot.in/search/label/debts">debt</a>-equity ratio shows the relative contributions of creditors and owners.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> = outsiders fund/Share holders fund<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;">Ideal ratios 2:1<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Proprietary ratio or Equity ratio: It expresses the relationship between networth and total assets. A high proprietary ratio is indicativeof strong financial position of the business.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> =Share holders funds/Total Assets<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> <o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> = (Equity Capital +Preference capital +Reserves – Fictitious assets) / Total Assets<o:p></o:p></span></div>
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<span style="font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: Arial, sans-serif;">Fixed Assets to net worth Ratio: This ratio indicates the mode of financing the fixed assets. The ideal ratio is 0.67<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"> =Fixed Assets (After <a href="http://finance-terminology.blogspot.in/search/label/depriciation">Depreciation</a>.)/Shareholder Fund<o:p></o:p></span></div>
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</div>Chandra Babuhttp://www.blogger.com/profile/10951942417512575564noreply@blogger.com0