Accounting
Question : Which of the following statements is true?
Option 1: If the amount of interest accrued and due is not paid, it is known as Interest Accrued and Due or Interest Outstanding
Option 2: If the date of payment of interest and accounting date are different, Interest Accrued and Not Due Account is credited at the end of the year to maintain accounting records on accrual basis
Option 3: Interest Accrued or Outstanding (whether due or not) on Debentures is shown under the main head 'Current Liabilities' and sub-head 'Other Current Liabilities'
Option 4: All of the above
Correct Answer: All of the above
Solution : Answer = All of the above
1. Interest on debentures is a Charge against profit and is payable whether the company earns a profit or incurs a loss. Interest on debentures is calculated at a fixed rate of interest. 2. Interest is
Question : What are the factors to be considered while source accounting software?
Option 1: Flexibility
Option 2: Adaptability
Option 3: Interest of management
Option 4: Both 1 & 2
Correct Answer: Both 1 & 2
Solution : The things to think about when choosing an accounting software supplier. Flexibility. Adaptability. the price of installation and upkeep. a company's size. level of secrecy.
Hence the Correct answer is option 4.
Question : Choose the correct statement with respect to the Share of Profit or Loss and the year of death will be?
Option 1: Deceased partner is entitled to his share in profit from the beginning of the accounting year up to the date of his death.
Option 2: He bears loss, if any incurred by the firm during this period.
Option 3: Both 1 and 2
Option 4: Neither 1 nor 2
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2
Deceased partners are entitled to their share in the profit from the beginning of the accounting year up to the date of his death and he has also borne loss if any. This ensures a fair
Question : Rearrange the parts of the sentence in the correct order. A. newly P. reflected on why he chose to work for his Q. appointed division manager, trained in accounting, R. company, despite better offers, and realised that S. it was the friendly, collaborative, and ethical culture
Option 1: QPRS
Option 2: SPRQ
Option 3: SQRP
Option 4: RQPS
Correct Answer: QPRS
Solution : The correct choice is the first option: QPRS.
The logical flow of information is as follows:
Question : Which of the following is correct for the objectives of Ratio Analysis: A:To simplify the accounting information B: To assess the operating efficiency of the business. C:To help in comparative analysis D:To analyze the profitability of the business.
Option 1: A, B and C
Option 2: B, C, and D
Option 3: A, C and D
Solution : Ratio analysis has the following goals: 1: Simplify accounting data. 2: Find the liquidity or the long- and short-term solvency. 3: The ability of the business to meet its short-term financial obligations is known as short-term solvency 4: In contrast, long-term solvency
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
Correct Answer: Rs 3,600
Solution : Answer = Rs 3,600 Profit= $36000 \times \frac{2}{5} \times \frac{3}{12}$= 1800 × 2= 3600. Hence, the correct option is 3.
Question : What is chart of accounts?
Option 1: provides an index of every account in an accounting system
Option 2: provides a way of every account in non-accounting system
Option 4: None of these
Correct Answer: provides an index of every account in an accounting system
Solution : An index of all the accounts in an accounting system is provided by a chart of accounts (COA), a financial and organisational tool. Hence, the correct option is 1.
Question : R and D are partners as per provisions of Indian Partnership Act 1932. On admission of a new partner M for 1/5 share, a revaluation account is prepared. M claims to have eqal share in revaluation profits. Choose the correct accounting treatment
Option 1:
M's share of revaluation profit is equal
Option 2:
M's share of revaluation profit is 1/5th
Option 3: M's share is revaluation profit is nil
Correct Answer:
Solution : Answer = M's share of revaluation profit is 1/5th
When a new partner is admitted to a partnership, their share of revaluation profit is typically based on their agreed-upon profit-sharing ratio. Since M is admitted for a 1/5 share,
Question : The accounting standard prescribes that Cash Flow Statement be prepared either by
Option 1: Direct Method
Option 2: Indirect Method
The accounting standard prescribes that the Cash Flow Statement be prepared using either the Direct Method, which lists actual cash inflows and outflows, or the Indirect Method, which adjusts net income for non-cash items. Hence, the
Question : What are the features of computerised accounting software?
Option 1: storage of accounting data and on-line input
Option 2: instantly produces different reports
Option 3: group different account
Solution : The Top 5 Computerized Accounting System Features Bringing Together Different Accounting Functions. Automation, precision, and quickness. analyses and reports Accessibility and consistency. increased control and visibility over finances
Hence the correct answer is option 4.
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