Question : Choose which of the following statements is not true.

Option 1: There may be variations in accounting practices followed by different firms, a meaningful comparison of their financial statements is not possible.

Option 2: Window dressing refers to the presentation of a better financial position than what it actually is by manipulating the books of account.

Option 3: Financial analysis does not identify symptoms of the problems.

Option 4:  All of the above

Question : A, B and C were partners sharing profits in the ratio of 1: 2: 2. B died on 30th June 2020 and the profit for the accounting year ended 31st March 2020 was Rs. 36,000. If the profit share of a deceased partner is to be calculated based on previous year's profit, the amount of profit credited to B's Capital Account will be

Option 1: Rs 3,000

Option 2: Rs 2,400

Option 3: Rs 3,600

Option 4: Rs 2,800

Question : The computerised accounting system refers to - 

Option 1: Printing of Balance sheet and Profit and loss accounts using computer

Option 2: Processing of accounting transaction through computer and produce reports and records

Option 3: Processing of accounting related data and priting reports

Option 4: None of the above

Question : If an organisation want to develop a computerised accounting system according to its need as the business of organisation is complex. Which software it should opt for -

Option 1: Ready to use Software

Option 2: Customized Software

Option 3: Tailor-made Software

Option 4: Any of above

Question : Under computerised accounting, procedure means:

Option 1: A logical sequence of actions to perform a task

Option 2: The raw fact (as input) for any business application

Option 3: User

Option 4: Computer, associated peripherals, and their network

Question : Common-size Balance Sheet shows the percentage relation of each asset/equity and liability…………

Option 1: One accounting period

Option 2: Two or more accounting period

Option 3: To the total of assets/total of equity and liabilities

Option 4: None of the above

Question : What is/are the features of computerised accounting environment?

Option 1: Simple and Integrated

Option 2: Accuracy & Speed

Option 3: Scalability

Option 4: All of the above

Question : Assertion A :-  Price level changes and the purchasing power of money are inversely related. A change in the price level makes analysis of financial statements of different accounting years invalid.

Reason R :- Accounting records ignore changes in the value of money.

In the context of the above two statements, which of the following is correct?

Option 1: Both Assertion A and reason R are correct but the reason R is not the correct explanation of Assertion A 

Option 2: Both Assertion A and reason R are correct but the reason R is the correct explanation of Assertion A 

Option 3: Both Assertion A is correct but the reason R is not correct

Option 4: Both Assertion A and reason R are not correct

Question : Accounting Standard (AS-3) has been made mandatory in respect of accounting periods commencing on or after 1st April 2001, for certain enterprises. These enterprises

Option 1: Enterprises whose equity or debt securities are listed on a recognised inventory exchange in India,

Option 2: All other commercial, industrial and business enterprises, whose turnover for the accounting period exceeds Rs. 50 Crores.

Option 3: Both 1 and 2

Option 4: None of the above.

Question :  The principles of management are:

Option 1: Fixed and unchangeable
 

Option 2: Universal and flexible
   

Option 3: Specific to each organization

Option 4: Derived from accounting principles