Practice Test


1) Accounting Standards in India are issued by


2) Accounting Standards in India are issued by


3) Accounting Standards


4) How many Accounting Standards have been issued by ICAI ?


5) It is essential to standardize the accounting principles and policies in order to ensure


6) All of the following are limitations of Accounting Standards except


7) A change in accounting policy is justified


8) Accounting policy for inventories of Xeta Enterprises states that inventories are valued at lower of cost determined on Weighted average basis or not realizable value.Which accounting principle is followed in adopting the policy


9) The areas wherein different accounting policies can be adopted are


10) Selection of an inappropriate accounting policy decision may


11) Accounting policies refer to specific accounting


12) the major consideration governing the selection & application of accounting policies are


13) which accounting principle is followed in adopting accounting policy of making provision for doubtful depth @5 % on debtor


14) which accounting principle is followed in adopting accounting policy of treating the cost of calculating as an expenses


15) which accounting principle is followed in adopting accounting policy of using WDV method of depreciation year after year


16) if the change in accounting policy has a material effects in current period & the effect of changes is ascertained in part


17) if the change in accounting policy has no material effects in current period but which is reasonable expected to have a material effect in later period


18) Measurement discipline deals with


19) X purchased a machinery amounting Rs.5,00,000 on 1st April,2001.On 31st March, 2007.The similar machinery could be purchased for Rs.10,00,000 but the realizable value of the machinery was estimated at Rs.6,00,000.The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal curse of business was calculated as Rs.7,00,000.The current cost of the machinery is


20) X purchased a machinery amounting Rs.5,00,000 on 1st April,2001.On 31st March, 2007.The similar machinery could be purchased for Rs.10,00,000 but the realizable value of the machinery was estimated at Rs.6,00,000.The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal curse of business was calculated as Rs.7,00,000.The present value of the machinery is


21) X purchased a machinery amounting Rs.5,00,000 on 1st April,2001.On 31st March, 2007.The similar machinery could be purchased for Rs.10,00,000 but the realizable value of the machinery was estimated at Rs.6,00,000.The present discounted value of the furniture net cash inflows that the machinery was expected to generate in the normal curse of business was calculated as Rs.7,00,000.The historical cost of the machinery is


22) X purchased a machinery amounting Rs.5,00,000 on 1st April,2001.On 31st March, 2007.The similar machinery could be purchased for Rs.10,00,000 but the realizable value of the machinery was estimated at Rs.6,00,000.The present discounted value of the furniture net cash inflows that the machinery was expected to generate in the normal curse of business was calculated as Rs.7,00,000.The realizable value of the machinery is


23) All of the following are valuation principles except


24) Cost of machinery purchased on 1st April , 2005 10,00,000 , market value as on 31st March , 2006 11,00,000 at Rs. 11,00,000, which of the following valuation principles is being followed


25) Change in accounting estimate means


26) Mohan purchased a machinery amounting Rs.10,00,000 on 1st April, 2000. On 31st March,2006 the similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs.15,00,000. the present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business , was calculated as Rs.12,00,000. The current cost of machinery is


27) Mohan purchased a machinery amounting Rs.10,00,000 on 1st April, 2000. On 31st March,2006 the similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs.15,00,000. the present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business , was calculated as Rs.12,00,000. The present value of machinery is


28) Mohan purchased a machinery amounting Rs.10,00,000 on 1st April, 2000. On 31st March,2006 the similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs.15,00,000. the present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business , was calculated as Rs.12,00,000. The historical cost of machinery is


29) which financial statements represents the accounting equations [Assets = Liabilities + Owner's Equity ]


30) which of the following is correct ?


31) which of the following is correct ?


32) which of the following is correct ?


33) which of the following is correct ?


34) which of the following is correct ?


35) which of the following is correct ?


36) which of the following is correct ?


37) which of the following is correct ?


38) which of the following is correct ?


39) The liabilities of a firm are Rs.6,000 & the capital of the proprietor is Rs.4,000. The total assets are


40) The assets on 31.12.2011 Rs.60,000 & capital is Rs.45,000.Its liabilities on that date shall be


41) R has asset of Rs.10,000 and liabilities of Rs.2,000.His capital would be


42) If the firm borrows a sum of money ,there will be


43) Goods purchased for cash is an example of


44) Goods purchased for credit is an example of


45) Goods returned to supplier is an example of


46) Goods sold for cash is an example of


47) Goods sold for credit is an example of


48) Goods returned by customer is an example of


49) Cash withdrawn by owner for personal use is an example of


50) Goods withdrawn by owner for personal use is an example of


51) Goods destroyed by fire is an example of


52) Goods distributed as free sample is an example of


53) Discount allowed is an example of


54) Discount received is an example of


55) Depreciation written off is an example of


56) Bad debts written off is an example of


57) Bad debts recovered is an example of


58) Making Provision for Doubtful debts is an example of


59) Making Provision for Discount on Debtor is an example of


60) Making Provision for Depreciation is an example of


61) Creating Reserve for discount on Creditor is an example


62) Unaccrued Interest is an example of


63) Prepaid insurance is an example of


64) Accrued interest is an example of


65) Outstanding rent is an example of


66) An example of Increase in asset & increase in owner's capital is


67) An example of Increase in liabilities & decrease in owner's capital is


68) An example of decrease in liabilities & increase in owner's capital is


69) An example of Increase is one liabilities & decrease in another liability is


70) An example of Increase in asset & increase in owner's capital is


71) Opening Capital Rs.10,000 .Profit during the year Rs.5,000.Drawing Rs.2,000.,Additional Capital introduced Rs.1,000 , Closing capital will be


72) Opening Capital Rs.10,000 . Closing Capital Rs.21,000 .Drawing Rs.2,000.,Additional Capital introduced Rs.10,000 ,Profit during the year


73) Closing capital Rs.20,000 Loss during the year Rs.1,000.Drawing Rs.3,000.,Additional Capital introduced Rs.4,000 , Opening Capital will be


74) Opening Capital Rs.20,000 .Profit during the year Rs.5,000..,Additional Capital introduced Rs.1,000 , Closing capital Rest. 10,000 Drawing will be


75) Opening Capital Rs.30,000 .Loss during the year Rs.8,000. Closing capital Rest. 15,000 Drawing Rs.7,000 Additional Capital introduced will be


76) Mohan purchased a machinery amounting Rs.10,00,000 on 1st April, 2000. On 31st March,2006 the similar machinery could be purchased for Rest. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2000) was estimated at Rs.12,00,000.The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business , was calculated as Rs.12,00,000. The realizable value of machinery is


77) Accounting standards (AS)are written policy documents may be issued by_________


78) Accounting standards are________


79) Accounting standards cover the aspects of______of accounting transaction in the financial statements.


80) In india accounting standards are issued by______


81) Accounting standards are issued for the purpose of_________


82) The Institute of Chartered Accountants of india (ICAI) constituted the______with a view to harmonizing the diverse accounting policies and practices in use in india.


83) The Institute of Chartered Accountants of India (ICAI) constituted the Accounting Standards Board (ASB) on________with a view to harmonizing the diverse accounting policies and practices in use in india.


84) The ICAI so far has issued________accounting standards.


85) Accounting policies followed by organizations__________


86) Differents accounting policies can be adopted in following areas______


87) A specific accounting policy refers to_______


88) The determination of the amount of bad debts is an accounting________


89) The portion of current assets that consist of cash


90) Global standards facilitates


91) The government of india in consultation with the ICAI decides to


92) Convergence with IFR.Ss


93) Accounting standards for non-corporate entities in India is issued by