Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MBA - First Semester > CAQs For A&F > Flashcards

CAQs For A&F Flashcards

1
Q

Every transaction has to reported as ultimately related to money

A

Money Measurement Concept

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

In Double Entry system of Book-keeping, every business transaction affects which of these options?

A

Two accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Who are Creditors for supplying goods to the Company?

A

To whom the Company owes Money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Which of the following is not the causes of depreciation?

A

Actual cost of the asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Amount of salary paid to Kamal should be debited to which account head?

A

Salary Account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the nature of financial accounting?

A

Historical

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What does Money Measurement Concept as a convention of Financial Accounting refer to ?

A

Accounting only transactions which can be measured in money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

In which method of Depreciation does the the depreciation amount is the same every year?

A

Straight Line Method

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Metrpol acquired a machine for Rs. 5,40,000 on 1st April 2009. Depreciation was to be charged at 20%p.a. Calculate Depreciation if the accounting year ends on 31st March

A

1,08,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The amount brought in by the proprietor is called as what?

A

Capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

A machine costing Rs. 120,000 has accumulated depreciation of Rs. 50,000. What is the book value of machine?

A

Rs. 70000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

ABC Pvt. Ltd company invests money in shares of another company, PQR Pvt. Ltd. Where is this investment recorded in?

A

Asset side of Balance Sheet

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the process of recording the transactions into a journal called as ?

A

Journalising

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Which term is used to denote the value of the asset at the end of its useful life?

A

Salvage value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Copyrights, Patents and Trademarks are which type of assets?

A

Intangible assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Purchase of furniture will have what effect on total assets?

A

Increase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Which of the following expenses is a non cash expense in business?

A

Depreciation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Which of the following is not a Real Account?

A

Outstanding rent A/c

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Depreciation is necessary for which category of accounts?

A

Fixed Assets and Intangible Assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Capital is shown under liabilities of the balance sheet. Which principle is followed here?

A

Business Entity concept

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How to provide depreciation if the fixed asset is purchased in the middle of the year?

A

Provide for proportionate period of actual utilisation i.e from the day put to use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Who issues Indian Accounting Principles?

A

IFRS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is the other name of Actual cost?

A

Historical cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Which account should be debited when a customer returns goods?

A

Sales return account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

The auditor noticed that the financial statements of Alpha Company were missing some footnotes important for users for decision making. This action of the management is a violation of which concept?

A

Full disclosure concept

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is the system of recording based on dual aspect concept called?

A

Double entry system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Which of the following assets do not come under “current asset”?

A

Car

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Which of the following would not be a basis for estimating the useful life of a piece of equipment?

A

Weight of the equipment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Goods returned to supplier should be debited to which account?

A

Supplier’s account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Which principle requires that the same accounting method should be used from one accounting period to the next?

A

Consistency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Which of the following is not a current asset?

A

Furniture

32
Q

A trader purchased a small machinery for Rs. 10,000 in Apr 2015. Depreciation is charged @ 25% under diminishing balance method. At the end of third year, 31st March 2018, what shall be the closing Written Down Value of the machinery ?

A

Rs. 4219

33
Q

Which is the Indian Accounting body based in London, known as?

A

IASB

34
Q

How is Net Working Capital Arrived at?

A

Total Current Assets less Total Current Liabilities

35
Q

Cash Balance Rs. 15,000; Trade Receivables Rs. 35,000; Inventory Rs. 40,000; Machinery Rs. 25000, Trade Payables Rs. 24,000 and Bank Overdraft is Rs. 6,000; Loans Rs. 55000. What is the Current Ratio?

A

3:1

36
Q

Which one of these most appropriately describes the need for making depreciation adjustment while preparing final accounts?

A

Adjustment becomes necessary while drawing the financial statements in order to reflect proper operating results and financial position as depreciation involves reduction in value of assets and its productivity on account of use, wear and tear, etc.,

37
Q

When cheque is returned by bank due to insufficient fund, what is that cheque called as?

A

Dishonoured cheque

38
Q

Which accounting concept mentions that the owners are separate from the business?

A

Separate entity

39
Q

What does a high p/v ratio imply about the organisation?

A

Making huge profits

40
Q

If profit - 1,00,000; Contribution- Rs 5,00,000 then calculate fixed cost

A

4,00,000

41
Q

The amount paid out of the profits of the company to its shareholders is known as

A

Dividend

42
Q

Where are the initial business transactions recorded?

A

General Journal

43
Q

Which expense is an appropriation of profit?

A

Dividend

44
Q

Which of the following are not the causes of depreciation?

A

Actual cost of the asset

45
Q

Patents, Trademark, Copyrights are also ‘Assets’ to an organisation. Which of these is the most appropriate accounting classification?

A

Intangible assets

46
Q

Which one of these statement explains the causes of the difference between the cash/bank book (as per books) vis-a vis the bank statement

A

Bank Reconciliation Statement

47
Q

What is the ideal ratio of quick ratio ?

A

1:1

48
Q

The formula to calculate average collection period is

A

365/Average receivables turnover ratio

49
Q

A product is sold at Rs. 150 per unit and its variable cost is Rs. 70 per unit. The fixed expenses of the business are Rs. 8,000 per year. What is the Break-even point in terms of units?

A

100 units

50
Q

What does ‘Capital Employed’ mean?

A

Networth+ Long term liabilites

51
Q

The depreciation method used for natural assets like coal mines, oil wells etc. is:

A

Depletion method

52
Q

When goods are sold on credit to a party Mahesh, the account to be debited will be:

A

Mahesh account

53
Q

Which of the following amount will be deducted from balance as per cash book while preparing bank reconciliation statement?

A

Cheque deposited but not yet collected

54
Q

What is the process of recording transactions from the journal, cash book, etc to the ledger known as ?

A

Posting

55
Q

Which of the following amounts will be added to balance as per cash book while preparing bank reconciliation statement?

A

Cheque issued but not yet presented for payment

56
Q

What is the formula to calculate contribution ?

A

Operating income plus fixed costs

57
Q

What is the amount of closing stock if opening stock is Rs.4500, cost of goods sold is Rs.54500, purchases are Rs.60000?

A

Rs. 10000

58
Q

A machinery with a cost of Rs. 9,00,000 and accumulated depreciation of Rs. 8,00,000 is sold for Rs. 80,000. What is the amount of the gain or loss on the disposal of the machinery?

A

Rs. 20000 loss

59
Q

In case of a Limited Company, which one of these is true in case of any change in method of depreciation ?

A

Permitted in all cases. However the change and the impact of the same on the financials needs to be informed separately under the Notes forming part of the Accounts in order to enable the users/readers of the financial statements be informed suitably.

60
Q

If sales amounts to Rs 2,40,000; Gross Profit is Rs 60,000; What would be the Gross Profit Ratio?

A

25%

61
Q

Which account is credited when the goods purchased are returned by the firm?

A

Purchase return

62
Q

Which ratios measure an organisations performance in generating earnings over related expenses over a specified time period?

A

Profitability ratios

63
Q

Which one of them is a statement or document that reflects in a single place the summary of respective debit and credit balances of all the ledgers forming part of the books of accounts?

A

Trial Balance

64
Q

Who prepares the Bank Reconciliation Statement?

A

Accountant

65
Q

What do we refer Trading and Profit and Loss Account and Balance Sheet, all together as?

A

Final Accounts

66
Q

The credit effect for prepaid rent will appear as

A

Deduction from rent paid

67
Q

What is the term used to describe when a cheque is issued to a creditor, but is not presented for payment?

A

Outstanding cheque

68
Q

The loyalty of workers being intangible cannot be quantified, and thus the same can find no place in the books of accounts. This is an example of which accounting principle?

A

Money Measurement Concept

69
Q

What to do we refer to those expenses, which have been incurred, but not paid?

A

Outstanding Expenses

70
Q

A product is sold at a price of Rs. 120 per unit and its variable cost is Rs. 80 per unit. The fixed expenses of the business are Rs. 8,000 per year. What is the Break-even point?

A

Rs. 24000

71
Q

Where the entity reaches a scenario where there is no profit and loss and the costs equals revenues, What is the strange situation referred to as ?

A

Break-even point/Indifference Point

72
Q

From the information, Find BEP : Variable cost per unit - Rs 12; Fixed expenses - Rs 60,000; Selling price per unit - Rs 18

A

10000 units

73
Q

Which ratios measure the ability of a company to meet its short term obligations?

A

Liquidity ratios

74
Q

The current account of a businessman shows Rs. 10000 as overdrawn. On examining the bank statement, it was observed that one of the customers has deposited Rs. 4000 directly into the account and that the bank charges were Rs. 200. What is the bank statement balance?

A

Rs. 6200

75
Q

In cash book, what does favourable balance indicates?

A

Debit balance

MBA - First Semester (17 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions