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