FNC12   Financial Accounting

 

Q2

Which of the following is basic accounting equation?

 

• Capital – liabilities = assets

• Assets + liabilities = capital

• Assets + capital = liabilities

• Liabilities + capital = assets …

 

Q3

Operating expenses of Moon Ltd are Rs 18000, Interest expenses Rs 5000, Tax paid Rs 4000. If Sales is Rs 35000 then calculate the Net Profit Margin?

 

• 0.2285

• 0.7714

• 0.51

• 0 0.0657

 

 

Q5

Which of the following self generated intangible asset can be recorded in books of account?

 

• Goodwill

• Technical Know-How

• Software

• All of the Above

 

 

Q10

Which of the following can be categorised as Discretionary Expenses

 

• Purchase

• Salary

• Repair and maintenance

• R&D Expense

 

 

Q14

There was a fire in M Ltd Godown. It resulted into loss of Rs 5 Cr goods however the insurance company accepted the claim of Rs 4.5 Cr only. This will result in _____ in equity by Rs____.

• Increase,4.5 Cr

• Decrease, 0.5 Cr

• Increase, 0.5 Cr

• Decrease, 5 Cr

Q15

In which of the following statement, final balances of all the accounts are prepared in the form of list ?

 

• Ledger

• Accounting Equation

• Trial Balance

• Journal

 

Q16

Which of the following is a Current Assets ?

 

• Furniture

• Computers

• Debtor 

• Car

 

Q17

In which of the following firm structure compliance cost is maximum

 

• Sole proprietorship

• Ltd liability partnership

• Pvt ltd company

• Public ltd company

 

Q20 

Advance from Customers is an example of 

 

• Asset

• Liability

• Income 

• Expense

 

Q21

Accounting Standards are issued by which of the following entity, in India? 

 

• ICAI 

• SEBI 

• RBI 

• IFRS

 

 

 

 

 

Q24

A new firm commenced business on 1st January 20016 and purchased goods costing Rs. 90,000 during the year. A sum of Rs. 6,000 was spent on freight inwards. At the end of the year the cost of goods still unsold was Rs. 12,000. Sales during the year Rs.1,20,000. What is the gross profit earned by firm?

• 36000

• 30000

• 42000

• 38000

 

Q25

 Credit sales for the year is Rs 100000 and closing debtors are Rs10000. Calculate the collection period of the firms?

 

• 10 days

• 36.5 days 

• 27.39 days

• None of the above

 

 

2 . Accounting Standards are issued by which of the following entity, in India? 

• ICAI 

• SEBI 

• RBI 

• IFRS

5 . Who approves the financial statements of a company? 

• Auditors 

• Shareholders 

• Management 

• Board of Directors

6 . Which of the following can be categorized as discretionary Expense 

• Purchase 

• Salary 

• Repair & Maintenance 

• R&D Expense

7 . The Share Capital of a company is Rs 10 Cr divided in 10 Lac number of shares. Calculate the face value of share 

• Rs 100 

• Rs 1000

• Rs10

• Rs1

8 .  Which of the following statement shows the financial position of a business entity as on date? 

• Income Statement 

• Balance Sheet 

• Trial Balance 

• Cash Flow Statement

9 . Which of the following self genearted intangible asset can be recorded in books of account? 

• Goodwill 

• Technical Know-How 

• Software

• All of the Above 

11 . Proceeds on the sale of fixed assets will be shown in which part of the cash flow statement, if indirect method is followed? 

• Operating Cash Flow 

• Financing Cash Flow

• Investing Cash Flow

• None of the above

14 . Which of the following can be categorised as Revenue? 

• Sale of goods

• Sale of Old Furniture

• Dividend Received 

• All of the above 

16 . Credit sales for the year is Rs 100000 and closing debtors are Rs10000. Calculate the collection period of the firms?

• 10 days

• 36.5 days 

• 27.39 days

• None of the above

 

Machinery on 1st October 2017 at cost price of Rs 5 Lacs. There is no salvage value and estimated useful life of Machinery is 5 years. How much depreciation should be charged for Year 2017-18?

• 1 Lac

• Zero

• 50000

• None of these

20 . Loss on the sale of Fixed Assets will be shown in which part of the cash flow statement, if indirect method is followed?

• Operating Cash Flow

• Financing Cash Flow

• Investing Cash Flow 

• None of the above

21 . Which of the following is liquidity ratio

• Debt to Equity Ratio

• Return on Investment

• Total Asset Turnover Ratio 

• Current Ratio

 

23 . Operating expenses of Moon Ltd are Rs 18000, Interest expenses Rs 5000, Tax paid Rs 4000. If Sales is Rs 35000 then calculate the Net Profit Margin?

• 0.2285

• 0.7714

• 0.51

• 0 0.0657

26 . Which of the following is an financing item?

• Interest paid

• Salary paid

• Dividend received

• Share capital issued

 

27 . While preparing cash flow statements, the repayments of a loan during the year should be included under the heading of

• Operating Cash Flow

• Financing Cash Flow 

• Investing Cash Flow 

• None of the above

 

28 . The balance of cash account indicates______________

• Net income for the period 

• Net loss for the period

• Net cash on hand

• Net worth of the business

 

30 . Every accounting transaction must at least affect -_________accounts?

• One

• Two

• Three

• Four

 

1. A business has paid the rent for the period Jan-March 2016 in J\llle'2016, in which year financial statements this rent expenses will be recorded?

 

• 2015

• 2016

• 2017

• All of the above

 

 

2. Security Premium Reserve is an example of

• Revenue Reserve 

• Capital Reserve 

• Reserve Capital 

• Revaluation Reserve

3. Inwhich of the following books, separate accowit is maintained for each item?

• Ledger 

• Accowiting Equation 

• Trial Balance

• Journal

4. Credit sales for the year is Rs 100000 and closing debtors are RslOOOO. Calculate the collection period of the firm

• 10 days

• 36.5 days

• 27.39 days

• None of the above

5. Advance from Customers is a example of

• Asset 

• Liability 

• lncome

• Expense

6. Both assets and owner 's equity would be increased by

• capital brought in

• Purchase of an asset on credit.

• Payment of creditors.

• Proprietors drawings.

7.  The balance  cash account it indicates 

• Net income for the period 

• Net loss for the period 

• Net cash on hand

• Net worth of the business

 

8. Capital continued by owners is recorded as liability as per which of the following concept.

• Monetary Unit 

• Economic   Entity 

• Going Concern 

• Dual Aspect

9. Which of the following can be categorized as discretionary Expense

• Purchase

• Salary

• Repair & Maintenance

• R&D Expense

11. On 1st April 2017 P Ltd sells 100000 shares of Dabur India Ltd to Q Ltd at Rs 400 per share (Market price on that day) with an agreement to repurchase the same at Rs 4 12 per share on 31st Dec 2017. How the transaction should be presented in financial statements of P Ltd

• Sale of Investment 

• Sale of Shares 

• Borrowings 

• Investments

12. A credit sale of goods to Mohan should be credited to

• Sales account 

• Mohan accowit 

• Goods accowit 

• Purchase accowit

13. Which of the following statement shows the financial position of a business entity as on date?

• Income Statement 

• Balance Sheet 

• Trial Balance

• Cash Flow Statement

14. XYZ Ltd paid Salaries of Rs 200000 inthe month of March'2016. Journalize the transaction.

• Cash Ale Debited to Salary 

• Salary Ale Debited to Cash 

• Employees Ale Debited to Cash 

• Employees Ale Debited to Salary

18. Which of the following is basic accounting  equation?

• Capital-Liabilities =Assets

• Assets + Liabilities = Capital

• Assets+ Capital = Liabilities

• Liabilities+ Capital =Assets

20. Which of the following is an example out Business liability?

• Land 

• Building 

• Cash

• Creditors

21. In which of the following firm structure liability of owners is wilimited

• Sole   Proprietorship 

• Ltd Liability Partnership 

• Pvt. Ltd Company 

• Public Ltd Company

 

22. Decline in the value of intangible assets in a given year is known as.

• Depreciation 

• Amortization 

• Depletion

• Any of the above_

23. If manufacturing expenses are Rs 20000, interest expenses Rs 4000, cash sales is Rs 30000. Increase in inventory and debtors is Rs 5000 and Rs 7000 respectively. While increase in accounts payable is 9000. Calculate the cash flow from operations?

• Rs 9000

• Rs 3000

• Rs 7000

• Rs 12000

24. Higher Debt-Equity ratio indicates

• High Operating Risk

• Low Operating Risk 

• High Financial Risk 

• Low Financial Risk

25 . in which of the following firm structure compliance cost is maximum

• Sole   Proprietorship 

• Ltd Liability Partnership 

• Pvt. Ltd Company 

• Public Ltd Company

27. Inwhich of the following statement, final balances of all the accowits are prepared in the form of a list

• Ledger 

• Accounting Equation 

• Trial Balance

• Journal

28. If total liabilities decreased by Rs20000 and stockholders' equity increased by Rs5,000 during a period of time, then total assets  " must change by what amount and direction during that same time period?

• Rsl5000 increase 

• Rsl5000 decrease 

• Rs 25000 increase

• Rs 25000 decrease

 

29. ABC Ltd Purchased Machinery on 1st October 2017 at cost price of Rs 5 Lacs. There is no salvage value and estimated useful " life of Machinery is 5 years. How much depreciation should be charged for Year 2017- 18?

• 1 Lac 

• Zero 

• 50000

• None of the above

 

Test-2 ( 2019 ) FNC -512

1. Wages paid to workers must be debited to account

• Wages

• Machinery 

• Factory Expenses 

• Office Expenses

4. Capital continued by owners is recorded as liability as per which of the following concept?

• Monetary Unit 

• Economic Entity 

• Going Concern 

• Dual Aspect

3. Operating expenses of Moon Ltd are Rs 18000, Interest expenses Rs 5000, Tax paid Rs 4000. If Sales is Rs 35000 then calculate the Net Profit Margin?

 

• 00.2285

• 00.77 14

• 00.51

• 00.0657

5. Credit sales for the year is Rs I 00000 and closing debtors are Rs I 0000. Calculate the collection period of the firm?

• 10 days

• 36.5 days

• 027.39 days

• 0None of the above

6. On !st April 2017 P Ltd sells 100000 shares of Dabur India Ltd to Q Ltd at Rs 400 per share (Market price on that day) with an agreement to repurchase the same at Rs 412 per share on 31st Dec 2017 . How the transaction should be presented in

financial staternenbts of P Ltd.

• Sale of Investment

• Sale of Shares

• Borrowings

• Investment

8 Ram's account in the accounts payable ledger has a Rs.2000 beginning balance. After a transaction for Rs.500 is posted from the plD'chasesjolD'nal, the balance in Ram's acco1U1t is __

• 1500 Credit

• 1500 Debit

• 2500 Credit

• 2500 Debit

10. Every acco1U1ting transaction must at least affect accounts?

two

11.  loss on the sale of fixed assets will shown in which part of the cash flow statement . if indirect method is followed.

. operating cash flow 

financing cash flow 

investing cash 

none of the above 

12. Advance from Customers is a example of ?

assets

14. 15000 dec.

15. Security Premiwn Reserve is an example of.

• Revenue Reserve

• Capital Reserve

• Reserve Capital

• Revaluation Reserve

 

22.There was a fire in M Ltd Godown. It resulted into loss of Rs 5 Cr goods. However the insurance company accepted the claim of Rs 4 .5 Cr only. This willresult in in equity by Rs _

• Increase, 4.5 Cr

• Decrease, 0.5 Cr 

• Increase, 0.5 Cr 

• Decrease, 5 Cr

23. Who approves the financial statements of a company

• Auditors

• Shareholders

• Management 

• Board of Directors

25. accoWlting Standards are issued by which of the following entity, in India?

• ICAI

• SEBI

• RBi

• IFRS

27. which of the following can be categorized as discretionary Expense

R & D expenses 

28. In which of the following statement, final balances of all the acco1tt1ts are prepared in the form of a list?

• Ledger 

• Acco1tt1ting Equation 

• Trial Balance

• Journal

29. Which of the following statement shows the financial position of a business entity as on date

• Income Statement

• Balance Sheet

• Trial Balance

• Cash Flow Statement

30. investing cash flow 

 

1. Loss on the sale of Fixed Assets will be shown in which part of the cash flow statement, if indirect method is followed?

• Operating Cash Flow

• Financing Cash Flow 

• None of the above 

• Investing Cash Flow

3. Which of the following is basic accounting  equation?

• Capital-Liabilities =Assets

• Assets + Liabilities = Capital

• Assets+ Capital = Liabilities

• Liabilities+ Capital =Assets

4. Accounting Standards are issued by which of the following entity, in India? 

• ICAI 

• SEBI 

• RBI 

• IFRS

6. Inwhich of the following statement, final balances of all the accounts are prepared in the form of a list

• Ledger 

• Accounting Equation 

• Trial Balance

• Journal

8. Advance from Customers is a example of

• Asset 

• Liability 

• income

• Expense

9. Which of the following can be categorized as Revenue

• Sale of goods

• Sale of Old Furniture

• Dividend Received 

• All of the above 

20. in which of the following firm structure compliance cost is maximum

• Sole   Proprietorship 

• Ltd Liability Partnership 

• Pvt. Ltd Company 

• Public Ltd Company

22. Purchase of machinery against issue of shares will be shown in which part of the cash flow statement?

• Operating Cash Flow 

• Financing Cash Flow

• Investing Cash Flow

• None of the above

23. Credit sales for the year is Rs I 00000 and closing debtors are Rs I 0000. Calculate the collection period of the firm?

• 10 days

• 036.5 days

• 027.39 days

• 0None of the above

24. Who approves the financial statements of a company

• Auditors

• Shareholders

• Management 

• Board of Directors

25. Which of the following statement shows the financial position of a business entity as on date? 

• Income Statement 

• Balance Sheet 

• Trial Balance 

• Cash Flow Statement

28. Which of the following can be categorized as discretionary Expense

• Purchase

• Salary

• Repair & Maintenance

• R&D Expense

29. There was a fire in M Ltd Go down. It resulted into loss of Rs 5 Cr goods. However the insurance company accepted the claim of Rs 4 .5 Cr only. This will result in _____ in equity by Rs____

• Increase, 4.5 Cr

• Decrease, 0.5 Cr 

• Increase, 0.5 Cr 

• Decrease, 5 Cr

30. Which of the following is an operating item? 

• Interest paid 

• salary paid 

• share capital issued

 

3. in which of the following firm structure compliance cost is maximum

• Sole   Proprietorship 

• Ltd Liability Partnership 

• Pvt. Ltd Company 

• Public Ltd Company

6. Wages paid to workers must be debited to_____ account

• Wages

• Factory Expenses 

• Machinery 

• Office Expenses

8. Who approves the financial statements of a company

• Auditors

• Shareholders

• Management 

• Board of Directors

9. When a Liability is increased, it is recorded on the

• Credit  Side 

• Debit  Side

• Left Hand Side 

• Any of the above

11. Which of the following can be categorized as discretionary Expense

• Purchase

• Salary

• Repair & Maintenance

• R&D Expense

 

16. Which of the following statement shows the financial position of a business entity as on date?

• Income Statement 

• Balance Sheet 

• Trial Balance

• Cash Flow Statement

17. In which of the following books, transactions are first time recorded?

• Ledger

• Accounting Equation 

• Trial Balance

• Journal

19. Advance from Customers is a example of

• Asset 

• Liability 

• income

• Expense

20. Which of the following statement shows the Net Profit/Loss earned by a business entity?

• Income Statement 

• Balance Sheet

• Trial Balance

• Cash Flow Statement

21. Which of the following is basic accounting  equation?

• Capital-Liabilities =Assets

• Assets + Liabilities = Capital

• Assets+ Capital = Liabilities

• Liabilities+ Capital =Assets

 

22. Credit sales for the year is Rs I 00000 and closing debtors are Rs I 0000. Calculate the collection period of the firm?

• 10 days

• 036.5 days

• 027.39 days

• 0None of the above

23. In order to reflect the efficiency in debtor's management, Debtor turnover ratio should be. ?

• increased

• Decreased

• Kept Constant

• None of the above

26. Loss on the sale of Fixed Assets will be shown in which part of the cash flow statement, if indirect method is followed?

• Operating Cash Flow

• Financing Cash Flow 

• None of the above 

• Investing Cash Flow

•  

29. Operating expenses of Moon Ltd are Rs 18000, Interest expenses Rs 5000, Tax paid Rs 4000. If Sales is Rs 35000 then calculate the Net Profit Margin?

• 00.2285

• 00.77 14

• 00.51

• 00.0657

30. The balance of cash account indicates______________

• Net income for the period 

• Net loss for the period

• Net cash on hand

• Net worth of the business

 

1. There was a fire in M Ltd Go down. It resulted into loss of Rs 5 Cr goods. However the insurance company accepted the claim of Rs 4 .5 Cr only. This will result in _____ in equity by Rs____

• Increase, 4.5 Cr

• Decrease, 0.5 Cr 

• Increase, 0.5 Cr 

• Decrease, 5 Cr

 

4. Advance from Customers is a example of

• Asset 

• Liability 

• income

• Expense

6. Which of the following statement shows the financial position of a business entity as on date?

• Income Statement 

• Balance Sheet 

• Trial Balance

• Cash Flow Statement

7. If Net Profit is Rs 10000, Preference Dividend is Rs 2000 and Number of Shares are 600, calculate the EPS?

• 16.66

• 20

• 13.33

• None of the above

8. Which of the following can be categorized as discretionary Expense

• Purchase

• Salary

• Repair & Maintenance

• R&D Expense

10. Capital contributed by owners is recorded as liability as per which of the following concept?

• Dual Aspect 

• Going Concern 

• Monetary Unit 

• Economic   Entity

 

12. Who approves the financial statements of a company

• Auditors

• Shareholders

• Management 

• Board of Directors

15. Credit sales for the year is Rs I 00000 and closing debtors are Rs I 0000. Calculate the collection period of the firm?

• 10 days

• 36.5 days

• 27.39 days

• None of the above

18. Operating expenses of Moon Ltd are Rs 18000, Interest expenses Rs 5000, Tax paid Rs 4000. If Sales is Rs 35000 then calculate the Net Profit Margin?

• 00.2285

• 00.77 14

• 00.51

• 00.0657

21. Which of the following is basic accounting  equation?

• Capital-Liabilities =Assets

• Assets + Liabilities = Capital

• Assets+ Capital = Liabilities

• Liabilities+ Capital =Assets

22. In which of the following statement, final balances of all the acco1tt1ts are prepared in the form of a list?

• Ledger 

• Acco1tt1ting Equation 

• Trial Balance

• Journal

24. Which of the following is a Current Assets ?

• Furniture

• Computers

• Debtor 

• Car

25. Inwhich of the following form of business, income is taxed separately from its owners

• Sole Proprietorship 

• Partnership 

• Corporation

• All of the above

26. Loss on the sale of Fixed Assets will be shown in which part of the cash flow statement, if indirect method is followed?

• Operating Cash Flow

• Financing Cash Flow 

• None of the above 

• Investing Cash Flow

 

30. in which of the following firm structure compliance cost is maximum

• Sole   Proprietorship 

• Ltd Liability Partnership 

• Pvt. Ltd Company 

• Public Ltd Company

 

31. Security premium Reserve is an example of capital reserve. Capital reserves are the reserves that are created in particular situations such as revaluation of assets,