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Objective Type Set
Online MCQ Assignment
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Q1: At the year end, an amount outstanding for electricity consumed during that year will be dealt in the Accounts for the year by following the accounting concept of
(A) Realisation
(B) Accrual  [Ans]
(C) Conservatism
(D) None of the above
Q2: Contingent Liability would appear
(A) On the liability side
(B) On the asset side
(C) As a note in Balance Sheet[Ans]
(D) None of the above
Q3: The effect of timing difference is called as
(A) Current Tax
(B) Deferred Tax  [Ans]
(C) Minimum Tax
(D) None of the above
Q4: At the time of public issue of shares the sequence of steps taken are
(A) Issue prospectus > Select Merchant Banker > Receive money from applicants
(B) Select Merchant Banker > Receive money from applicants > Issue prospectus  [Ans]
(C) Select merchant Banker > Issue prospectus > Receive money from applicants
(D) None of the above
Q5: Interest and Dividends received in the case of a manufacturing concern should be classified as cash flow from
(A) Operating activities
(B) Financing activities
(C) Investing activities  [Ans]
(D) None of the above
Q6: Redemption of Preference Share of a Company is
(A) Compulsory  [Ans]
(B) Optional
(C) Conditional
(D) None of the above
State whether the following statements are TRUE (T) or FALSE (F) :
Q1: Sinking fund method of depreciation takes into account the cost of an asset as well as interest also thereon at given rate.
Ans: True
Q2: Purchase of a technical know-how is revenue expenditure.
Ans: False
Q3: Transactions are recorded on accrual basis in the ‘Income and Expenditure Account’.
Ans: True
Q4: When the goods are returned by Branch, goods sent to Branch account will be debited in the books of Head Office.
Ans: True
Q5: Balance of securities premium account is available for redemption of preference shares.
Ans: False
Fill in the blanks in the following sentences by using the more appropriate word(s) from the alternatives shown in bracket :
Q1: Royalty account is a ___________________ account in nature (nominal/real).
Ans: Nominal
Q2: The excess of issue price of share over their face value is termed as _____________ (discount/securities premium).
Ans: Securities Premium
Q3: Revenue nature receipts and payments which relates to a particular accounting period are shown in the ___________________ account (Receipts and Payments/Income and Expenditure).
Ans: Income & Expenditure
Q4: As per AS-26, at the preliminary project stage the internally generated software should _______________ recognized as an asset (be/not be).
Ans: Not be
Q5: As per Indian Companies Act, minimum limit of managerial remuneration for full time single managerial personnel is _________________ (5%/3%).
Ans: 5%
Match the following in Column I with the appropriate in Column II:

Column IColumn II
(1) Repossess the goods
(2) Non Performing Assets
(3) Intangible Assets
(4) Related Party Disclosures
(5) Maximum Loss Method
(A) AS-26
(B) Banking Companies
(C) Piecemeal distribution
(D) Hire Purchase System
(E) AS-28
(F) No matching statement found

(1)        (D) – Hire Purchase System
(2)        (B) – Banking Companies
(3)        (A) – AS-26
(4)        (F) – No matching statement found
5)         (C)- Piecemeal distribution
In the following cases, one out of four answers is correct. Indicate the correct answer and give brief workings in support of your answer
Q1: Working capital of a company is Rs.21,28,000 and total debts are Rs.42,50,000. If the company’s long term debts are Rs.27,30,000 then current ratio will be
(A) 0.78 : 1
(B) 1.4 : 1
(C) 1.14 : 1
(D) 2.4 : 1 [Ans]
(D) – 2.4:1;
Q2: A and B are partners sharing profit/loss in the ratio of 3:2. They admit C into partnership for share in the profit which he acquired equally from old partners. The new profit sharing ratio will be 61
(A) 3 : 2 : 1
(B) 1: 1: 1
(C) 31 : 19 : 10 [Ans]
(D) 14 : 6 : 4
(C) 31:19:10;
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