Wellcome!

 

 

Asked/Added Questions From NCERT: Accountancy


Question 1. Asked on :10 August 2021:12:50:09 PM

  Per unit fixed overheads would ______ as the production

a) Increase, increases c) Decrease, remains constant

b) Increase, Decreases d) Decrease, decreases.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 2. Asked on :10 August 2021:12:49:46 PM

  Total fixed overheads would ________ as the production increases.

a) Decrease c) Remain fixed

b) Increase d) None of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 3. Asked on :10 August 2021:12:49:31 PM

  Per unit _______ overheads remain fixed.

a) Fixed c) Selling

b) Factory d) Variable.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 4. Asked on :10 August 2021:12:49:06 PM

  Cost of fancy packing necessary to attract customers would form part of :

a) Selling overheads

b) Distribution overheads

c) Development overheads

d) Both a) and b)

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 5. Asked on :10 August 2021:12:48:34 PM

  Primary packing necessary to protect a product should form part of

a) Selling overheads

b) Distribution overheads

c) Prime cost

d) None of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 6. Asked on :10 August 2021:12:48:03 PM

 Inspection charges which cannot be identified with a particular product should be

treated as

a) Research and development overheads

b) Selling overheads

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 7. Asked on :10 August 2021:12:47:33 PM

 Secondary packing expenses is an example of :

a) Selling overheads c) Both of the above

b) Distribution overheads d) None of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 8. Asked on :10 August 2021:12:45:04 PM

  Secondary packing expenses is an example of :

a) Selling overheads c) Both of the above

b) Distribution overheads d) None of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 9. Asked on :10 August 2021:12:43:29 PM

  Advertising expenses, commission to salesman, depreciation on delivery van are

examples of :

a) Selling overheads

b) Distribution overheads

c) Both of the above.

d) None of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 10. Asked on :10 August 2021:12:42:59 PM

 The costing method in which fixed expenses are charged to product along with variable

expenses is known as –

a) Direct costing, c) Absorption costing

b) Marginal costing d) ABC.


-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 11. Asked on :10 August 2021:12:42:23 PM

  In element wise classification of overheads, which of the following is not included-

a) Factory overheads c) Material


b) Indirect labour d) Indirect expenditure.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 12. Asked on :10 August 2021:12:41:50 PM

  Fixed cost per unit increases when –

a) Production volume increases

b) Production volume decreases

c) Variable cost / unit decreases

d) Variable cost / unit increases.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 13. Asked on :10 August 2021:12:41:20 PM

  In ______ stock is valued only at cost :

a) Financial accounting

b) Cost accounting

c) Human resource accounting

d) None of these.

b) Loss Centre d) Both a) & c)

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 14. Asked on :10 August 2021:12:40:53 PM

  A responsibility center in which a manager is accountable for costs only is called

___________.

a) Profit center c) Cost center

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 15. Asked on :10 August 2021:12:40:35 PM

  Management accounting is an extension of :

a) Financial accounting

b) Responsibility accounting,

c) Cost accounting

d) All of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 16. Asked on :10 August 2021:12:39:59 PM

  All costs are _______ in long run,

a) Variable c) Fixed

b) Controllable d) Both a) & b)


-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 17. Asked on :10 August 2021:12:39:41 PM

  Per unit ______ costs remains same.

a) Fixed c) Both a) and b)

b) Variable d) None of these.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 18. Asked on :10 August 2021:12:39:20 PM

  Out of pocket costs have no relevance in decision making :

a) True b) False.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 19. Asked on :10 August 2021:12:38:34 PM

  _____ costs are non-inventorable costs, as they are not included in the value of finished

stock.

a) Semi fixed costs c) Shut down costs

b) Variable costs d) Period costs.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 20. Asked on :10 August 2021:12:38:11 PM

  Haulage is an item of _____ overheads.

a) Research & Development

b) Selling & distribution

c) Works

d) Office.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ




Question 23. Asked on :10 August 2021:12:36:28 PM

 Abnormal costs are ultimately charged to __________

a) P & L A/c c) Note recorded at all

b) Costing P & L d) Suspense A/c.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 24. Asked on :10 August 2021:12:35:36 PM

 28. Which of the following is not an example of shut down cost ?

a) Factory rent c) Direct material

b) Insurance d) Property tax.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 25. Asked on :10 August 2021:12:34:54 PM

 A cost which does not involve any cash flow is known as :

a) Notional cost c) Implicit cost

b) Imputed cost d) All of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 26. Asked on :10 August 2021:12:34:21 PM

  __________ costs are the costs incurred upto the point of separation.

a) Joint costs c) Decremental costs

b) Shut down costs d) Disjoint costs.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ






Question 31. Asked on :10 August 2021:12:31:30 PM

  All indirect costs are controllable but, direct costs are not controllable.

a) True b) False

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 32. Asked on :10 August 2021:12:30:11 PM

  Costs which can be influenced by its budget holder are known as :

a) Fixed costs c) Uncontrollable costs

b) Step costs d) Controllable costs

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 33. Asked on :10 August 2021:12:29:45 PM

  ________ costs are constant at a given level of output & then increase by a fixed amount

at higher level of production.

a) Discretionary cost c) Committed cost

b) Step cost d) Sunk Cost

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 34. Asked on :10 August 2021:12:29:23 PM

  ___________ costs result from special policy decision, new research & are not related to

operations.

a) Discretionary cost c) Committed cost

b) Step cost d) Sunk cost.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 35. Asked on :10 August 2021:12:29:03 PM

  Direct material include all of the following except :

a) Primary packing, c) Royalty

b) Secondary packing d) Cost of layout.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ




Question 38. Asked on :10 August 2021:12:26:10 PM

  Expenditure can be classified as capital or revenue in relation to its :

a) Function c) Accounting period

b) Changes in activity d) Both b) & c)

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 39. Asked on :10 August 2021:12:25:50 PM

  Costing acts as an aid to

a) Creditors c) National economy

b) Employees d) All of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 40. Asked on :10 August 2021:12:25:28 PM

 14. Cost accounting does not help in making estimates :

a) True b) False.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 41. Asked on :10 August 2021:12:25:03 PM

  _______ is specialized branch of accounting which involves classification, accumulation,

assignment & control of costs :

a) Financial accounting c) Costing

b) Cost accounting d) Cost accountancy.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 42. Asked on :10 August 2021:12:24:27 PM

 11. Which of the following are cost as per activity

a) Material, Labour, expense

b) Fined, Variable & Semi-variable

c) Production cost, Office cost

d) All of these.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 43. Asked on :10 August 2021:12:23:58 PM

  Which of the following are cost as per activity

a) Material, Labour, expense

b) Fined, Variable & Semi-variable

c) Production cost, Office cost

d) All of these.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ



Question 45. Asked on :10 August 2021:12:21:56 PM

 Match the pairs

a) Direct Material (p) Salary of Supervisor

b) Indirect Material (q) Material passing from one process to other

c) Direct Labour (r) wages to worker

d) Indirect expense (s) Grease

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 46. Asked on :10 August 2021:12:21:15 PM

 Which of the following cost are pre-determined cost

a) Standard cost

b) Estimated cost

c) Historical cost

d) a & b

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ



Question 48. Asked on :10 August 2021:12:20:03 PM

 Which of the following are objectives of cost Accounting

a) Classification of expenses to all product

b) To indicate inefficiency of management

c) To provide data for decision making

d) All of these

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 49. Asked on :10 August 2021:12:18:45 PM

  ________is specialized branch of accounting which involves classification, Accumulation

assignment & Control of Cost

a) Costing

b) Cost Accounting

c) Management Accounting

d) Financial Accounting

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 50. Asked on :10 August 2021:12:12:48 PM

 . ___________ is technique of ascertaining cost a) Costing b) Cost Accounting c) Financial Accounting d) None

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 51. Asked on :10 August 2021:12:12:31 PM

 Which of the following is technique of costing a) Standard Costing b) Uniform Costing c) Absorption Costing d) Process Costing

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 52. Asked on :10 August 2021:12:12:19 PM

 Which of the following is not method of costing? a) Operating costing b) Unit Costing c) Composite Costing d) Marginal Costing

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 53. Asked on :10 August 2021:12:11:33 PM

 Which of the following is method of costing

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 54. Asked on :08 August 2021:09:37:23 PM

Indirect costs are also known as _________.

a) Common Costs 

b) Traceable Costs 

c) Implicit Costs

d) Sunk Costs.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 55. Asked on :08 August 2021:09:36:44 PM

Describe the cost unit applicable to the Bicycle industry _______.

a) Per part of bicycle 

b) Per bicycle 

c) Per tone

d) Per day.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 56. Asked on :08 August 2021:09:35:58 PM

Warehouse expenses is an example of:

a) Selling overheads

b) Admin overheads

c) Distribution overheads

d) Selling and distribution overheads

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 57. Asked on :08 August 2021:09:35:13 PM

Factory overheads are also known as : 

a) Works overheads 

b) Manufacturing overheads

c) Production overheads

d) All of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 58. Asked on :08 August 2021:09:33:28 PM

Research and Development overheads is an example of classification based on:

a) Function 

b) Element 

c) Behaviour

d) Control

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 59. Asked on :08 August 2021:09:32:57 PM

Per unit fixed overheads would ______ as the production

a) Increase, increases 

b) Increase, Decreases 

c) Decrease, remains constant

d) Decrease, decreases.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 60. Asked on :08 August 2021:09:32:00 PM

Total fixed overheads would ________ as the production increases.

a) Decrease 

b) Increase 

c) Remain fixed

d) None of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 61. Asked on :08 August 2021:09:31:31 PM

Per unit _______ overheads remain fixed.

a) Fixed 

b) Factory 

c) Selling

d) Variable.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 62. Asked on :08 August 2021:09:30:55 PM

Cost of fancy packing necessary to attract customers would form part of :

a) Selling overheads

b) Distribution overheads

c) Development overheads

d) Both a) and b)

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 63. Asked on :08 August 2021:09:30:34 PM

Primary packing necessary to protect a product should form part of

a) Selling overheads

b) Distribution overheads

c) Prime cost

d) None of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ



Question 65. Asked on :08 August 2021:09:29:21 PM

Secondary packing expenses is an example of :

a) Selling overheads 

b) Distribution overheads 

c) Both of the above

d) None of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 66. Asked on :08 August 2021:09:29:00 PM

Advertising expenses, commission to salesman, depreciation on delivery van are examples of :

a) Selling overheads

b) Distribution overheads

c) Both of the above.

d) None of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 67. Asked on :08 August 2021:09:28:25 PM

The costing method in which fixed expenses are charged to product along with variable expenses is known as –

a) Direct costing 

b) Marginal costing 

c) Absorption costing

d) ABC.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 68. Asked on :08 August 2021:09:27:34 PM

In element wise classification of overheads, which of the following is not included-

a) Factory overheads 

b) Indirect labour 

c) Material

d) Indirect expenditure.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 69. Asked on :08 August 2021:09:27:14 PM

Fixed cost per unit increases when –

a) Production volume increases

b) Production volume decreases

c) Variable cost / unit decreases

d) Variable cost / unit increases.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 70. Asked on :08 August 2021:09:26:28 PM

In ______ stock is valued only at cost.

a) Financial accounting

b) Cost accounting

c) Human resource accounting

d) None of these

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 71. Asked on :08 August 2021:09:26:05 PM

Management accounting is an extension of :

a) Financial accounting

b) Responsibility accounting,

c) Cost accounting

d) All of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 72. Asked on :08 August 2021:09:25:11 PM

All costs are _______ in long run.

a) Variable 

b) Controllable 

c) Fixed

d) Both (a) & (b)

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 73. Asked on :08 August 2021:09:24:32 PM

Per unit ______ costs remains same.

a) Fixed 

b) Variable 

c) Both (a) and (b)

d) None of these.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 74. Asked on :08 August 2021:09:23:27 PM

 _____ costs are non-inventorable costs, as they are not included in the value of finished stock.

a) Semi fixed costs 

b) Variable costs 

c) Shut down costs

d) Period costs.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 75. Asked on :08 August 2021:09:23:02 PM

Haulage is an item of _____ overheads.

a) Research & Development

b) Selling & distribution

c) Works

d) Office.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 76. Asked on :08 August 2021:09:22:08 PM

Abnormal costs are ultimately charged to __________

a) P & L A/c 

b) Costing P & L 

c) Note recorded at all

d) Suspense A/c.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 77. Asked on :08 August 2021:09:21:21 PM

Which of the following is not an example of shut down cost ?

a) Factory rent 

b) Insurance 

c) Direct material

d) Property tax.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 78. Asked on :08 August 2021:09:20:48 PM

A cost which does not involve any cash flow is known as :

a) Notional cost 

b) Imputed cost 

c) Implicit cost

d) All of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 79. Asked on :08 August 2021:09:20:20 PM

 __________ costs are the costs incurred upto the point of separation.

a) Joint costs 

b) Shut down costs 

c) Decremental costs

d) Disjoint costs.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ





Question 83. Asked on :08 August 2021:09:17:42 PM

Costs which can be influenced by its budget holder are known as :

a) Fixed costs 

b) Step costs 

c) Uncontrollable costs

d) Controllable costs

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 84. Asked on :08 August 2021:09:16:54 PM

________ costs are constant at a given level of output & then increase by a fixed amount at higher level of production.

a) Discretionary cost 

b) Step cost

c) Committed cost 

d) Sunk Cost

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 85. Asked on :08 August 2021:09:16:07 PM

___________ costs result from special policy decision, new research & are not related to operations.

a) Discretionary cost 

b) Step cost 

c) Committed cost

d) Sunk cost

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 86. Asked on :08 August 2021:09:15:10 PM

Direct material include all of the following except :

a) Primary packing, 

b) Secondary packing

c) Royalty 

d) Cost of layout

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 87. Asked on :08 August 2021:09:14:21 PM

Expenditure can be classified as capital or revenue in relation to its :

a) Function 

b) Changes in activity 

c) Accounting period

d) Both b) & c)

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 88. Asked on :08 August 2021:09:13:40 PM

Costing acts as an aid to:

a) Creditors 

b) Employees 

c) National economy

d) All of the above.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 89. Asked on :08 August 2021:09:13:03 PM

_______ is specialized branch of accounting which involves classification, accumulation, assignment & control of costs :

a) Financial accounting 

b) Cost accounting

c) Costing 

d) Cost accountancy

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 90. Asked on :08 August 2021:09:12:07 PM

Where _________ product/s is/are produced, ascertaining the cost/unit becomes complicated.

a) Single 

b) Multiple

c) Both (a) and (b)

 d) None of these

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 91. Asked on :08 August 2021:09:11:22 PM

Which of the following are cost as per activity

a) Material, Labour, expense

b) Fined, Variable & Semi-variable

c) Production cost, Office cost

d) All of these.

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ



Question 93. Asked on :08 August 2021:08:52:48 PM

Which of the following cost are pre-determined cost:

a) Standard cost

b) Estimated cost

c) Historical cost

d) a & b


-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ



Question 95. Asked on :08 August 2021:08:52:02 PM

Which of the following are objectives of cost Accounting

a) Classification of expenses to all product

b) To indicate inefficiency of management

c) To provide data for decision making

d) All of these

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 96. Asked on :08 August 2021:08:51:16 PM

________is specialized branch of accounting which involves classification, Accumulation assignment & Control of Cost

a) Costing

b) Cost Accounting

c) Management Accounting

d) Financial Accounting

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 97. Asked on :08 August 2021:08:50:53 PM

___________ is technique of ascertaining cost

a) Costing

b) Cost Accounting

c) Financial Accounting

d) None

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 98. Asked on :08 August 2021:08:50:27 PM

Which of the following is technique of costing

a) Standard Costing

b) Uniform Costing

c) Absorption Costing

d) Process Costing

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 99. Asked on :08 August 2021:08:50:03 PM

Which of the following is not method of costing?

a) Operating costing

b) Unit Costing

c) Composite Costing

d) Marginal Costing

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ


Question 100. Asked on :08 August 2021:08:47:05 PM

Which of the following is method of costing:

a) Job Costing

b) Terminal Costing

c) Operation Costing

d) All of these

-Added by Master Purushottam Accountancy » Basics Of Cost And Cost Accounting MCQ




Question 103. Asked on :08 August 2021:12:57:20 PM

If the dividend payout ratio is 0.40 and the P/E Ratio is 8, then calculate the dividend yield.

a) 8% 

b) 5%

c) 7% 

d) 6%

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs


Question 104. Asked on :08 August 2021:12:56:44 PM

If a company declares 20% dividend on its shares of Rs.20 each having a market value Rs.40 each, then the dividend yield ratio is:

a) 20% 

b) 5%

c) 10% 

d) 40%

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs


Question 105. Asked on :08 August 2021:12:56:00 PM

The market value of a share to be Rs.40 and EPS is Rs.6.66 per share . Calculate price earning ratio:

a) 6 Times 

b) 8 Times

c) 3 Times 

d) 4 Times

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs



Question 107. Asked on :08 August 2021:12:54:37 PM

A current ratio of less than one implies that the working capital is:

a) Positive 

b) Lesser

c) Negative 

d) More

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs


Question 108. Asked on :08 August 2021:12:53:57 PM

The ideal quick ratio is:

a) 2:1 

b) 1:1

c) 5:1 

d) 5:1

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs


Question 109. Asked on :08 August 2021:12:53:16 PM

If a company issue bonus shares the debt-equity will ________.

a) Remain Unaffected 

b) Will Not Affected

c) Will Improve 

d) None of the above

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs


Question 110. Asked on :08 August 2021:12:51:49 PM

Ideal debt-equity ratio is:

a) 1:1

b) 1:3

c) 2:1

d) 3:1

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs




Question 113. Asked on :08 August 2021:12:49:29 PM

__________ ratio is also known fixed charges cover or interest cover.

a) Debt Service 

b) Capital Gearing

c) Market Test 

d) Earning Per Share

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs


Question 114. Asked on :08 August 2021:12:48:10 PM

Proprietary Ratio = Shareholders funds / ?

a) Long-Term Funds 

b) Fixed Assets

c) Total Assets 

d) Interest Charges

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs


Question 115. Asked on :08 August 2021:12:47:24 PM

___________ ratio is the relation between borrowed funds and owners’ capital in a firm.

a) Liquid 

b) Long-term solvency

c) Debt-Equity 

d) Proprietary

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs


Question 116. Asked on :08 August 2021:12:46:23 PM

The term’ creditors’ includes:

a)Trade Creditors 

b) Bills payable

c) Both (a) and (b) 

d) None of the above


-Added by Master Purushottam Accountancy » Ratio Analysis MCQs



Question 118. Asked on :08 August 2021:12:45:00 PM

________ ratio indicates the extent to which the debt have been selected in time.

a) Debt collection Period 

b) Debt-Equity Ratio

c) Financial 

d) Liquidity

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs



Question 120. Asked on :08 August 2021:12:43:22 PM

Capital Turnover Ratio =

a) Net Sales + Capital Employed

b) Capital Employed ÷ Net Sales

c) Net Sales × Capital Employed 

d) Net Sales ÷ Capital Employed

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs



Question 122. Asked on :08 August 2021:12:41:31 PM

__________ is also refer to as return on net worth.

a) Profitability 

b) Return on investment

c) Return on shareholders fund 

d) Return on assets

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs


Question 123. Asked on :08 August 2021:12:41:00 PM

Capital Employed =

a) Net fixed assets + Working Capital

b) Net fixed assets - Working Capital

c) Net fixed assets x Working Capital

d) Net fixed assets ÷Working Capital

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs






Question 128. Asked on :08 August 2021:12:36:35 PM

The computation of __________ is simply a clerical work but interpretation is a test requiring act and skill.

a) Trend 

b) Ratio

c) Cash 

d) Fund

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs


Question 129. Asked on :08 August 2021:12:14:17 PM

___________ is used to evaluate relationship among financial items.

a) Ratio Analysis 

b) Trends Ratios

c) Accounting Ratio 

d) None of the above

-Added by Master Purushottam Accountancy » Ratio Analysis MCQs


Question 130. Asked on :08 August 2021:04:56:20 AM

The shares which are redeemed after a particular period are called:

(a) Ordinary Shares 

(b) Redeemable Preference Shares

(c) Cumulative Preference Shares

(d) None of the above 

-Added by Master Purushottam Accountancy » Issue Of Share Capital MCQs


Question 131. Asked on :08 August 2021:04:55:30 AM

 The excess price received over the par value of shares, should be ___________ Account.

(a) Debited 

(b) Credited

(c) Adjusted 

(d) None of these

-Added by Master Purushottam Accountancy » Issue Of Share Capital MCQs


Question 132. Asked on :08 August 2021:04:54:44 AM

When shares are forfeited, share capital account is:

(a) Debited 

(b) Credited

(c) Adjusted 

(d) None of these


-Added by Master Purushottam Accountancy » Issue Of Share Capital MCQs


Question 133. Asked on :08 August 2021:04:53:35 AM

Interest on Calls –in–arrears is ________for the company.

(a) Income 

(b) Expenditure

(c) Gain 

(d) Loss

-Added by Master Purushottam Accountancy » Issue Of Share Capital MCQs


Question 134. Asked on :08 August 2021:04:52:20 AM

__________ is deducted from the share capital to know the paid up value of shares.

(a) Calls in Advance 

(b) Calls in Arrears

(c) Forfeited Shares 

(d) Discount on Issue

-Added by Master Purushottam Accountancy » Issue Of Share Capital MCQs


Question 135. Asked on :08 August 2021:04:51:21 AM

If shares are issued at it’s face value, it is called as issue at:

(a) Premium 

(b) Discount

(c) Par 

(d) None of these

-Added by Master Purushottam Accountancy » Issue Of Share Capital MCQs


Question 136. Asked on :08 August 2021:04:50:19 AM

Nominal value of shares allotted to the public is called:

(a) Authorized Capital

(b) Reserve Capital

(c) Paid up Capital

(d) Nominal Capital

-Added by Master Purushottam Accountancy » Issue Of Share Capital MCQs




Question 139. Asked on :08 August 2021:04:47:27 AM

The discount allowed on re-issue of forfeited shares is debited to:

a) General reserve account.

b) Capital reserve account.

c) Revaluation reserve account.

d) None of these.

-Added by Master Purushottam Accountancy » Issue Of Share Capital MCQs





Question 143. Asked on :08 August 2021:04:43:40 AM

As per the Companies Act, shall be redeemed within _____ Years.

a) 24 years 

b) 22 years 

c) 30 years

d) 20 years.

-Added by Master Purushottam Accountancy » Issue Of Share Capital MCQs





Question 147. Asked on :08 August 2021:04:39:53 AM

The Securities Premium Account should be shown under:

a) Share Capital

b) Current Liabilities

c) Current Assets

d) Reserves and Surplus

-Added by Master Purushottam Accountancy » Issue Of Share Capital MCQs




Question 150. Asked on :08 August 2021:04:37:23 AM

Declared dividend should be classified in the Balance Sheet as a_________.

a) Provision 

b) Current liability 

c) Reserve

d) Current asset

-Added by Master Purushottam Accountancy » Issue Of Share Capital MCQs




Question 153. Asked on :08 August 2021:04:34:36 AM

Dividends are usually paid as a percentage of ________.

a) Authorized share capital.

b) Net profit.

c) Paid-up capital.

d) Called-up capital.

-Added by Master Purushottam Accountancy » Issue Of Share Capital MCQs









Question 161. Asked on :08 August 2021:04:23:46 AM

The journal entry for debentures issued at par and are also redeemable at par:

(a) Dr. Bank, Cr. Debentures A/c 

(b) Dr. Debentures A/c, Cr. Bank A/c

(c) Dr. Capital A/c, Bank A/c 

(d) None of these

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ



Question 163. Asked on :08 August 2021:04:21:58 AM

Sinking Fund investment always shows:

(a) Debit Balance 

(b) Credit Balance

(c) Both 

(d) None of these

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ


Question 164. Asked on :08 August 2021:04:20:56 AM

The consideration of Debentures is:

(a) Profit 

(b) Dividend

(c) Capital Receipts 

(d) Interest

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ


Question 165. Asked on :08 August 2021:04:19:58 AM

Debenture is the part of:

(a) Share capital 

(b) Loan

(c) Owner Capital 

(d) All the above

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ


Question 166. Asked on :08 August 2021:04:19:17 AM

Debentures which are transferable by mere delivery are:

(a) Registered Debentures 

(b) First Debentures

(c) Second Debentures 

(d) Bearer Debentures

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ


Question 167. Asked on :08 August 2021:04:18:43 AM

The balance of debenture sinking fund is finally transferred to:

(a) Profit and Loss A/c 

(b) DRF Investment A/c

(c) General Reserve 

(d) Capital Reserve

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ


Question 168. Asked on :08 August 2021:04:17:56 AM

The interest on Debenture Redemption Fund Investments is credited to:

(a) Debenture A/c 

(b) Debenture Redemption Found A/c

(c) Debenture Redemption Found Investment A/c 

(d) None of the above

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ


Question 169. Asked on :08 August 2021:04:17:23 AM

 Debenture Redemption Premium A/c is:

(a) Assets 

(b) Liability

(c) Expenses 

(d) Revenue

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ



Question 171. Asked on :08 August 2021:04:15:32 AM

If shares are reissued then they are issued at:

(a) Par 

(b) Premium

(c) Discount 

(d)All of the above

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ


Question 172. Asked on :08 August 2021:04:14:45 AM

Debentures is issued as a collateral security to a loan, interest will be given on:

(a) On debentures only 

(b) Both loan & debentures

(c) On loan but not on debentures 

(d) None of the following

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ


Question 173. Asked on :08 August 2021:04:13:52 AM

On issue of debentures as a collateral security, which account is credited?

(a) Debentures Account 

(b) Bank Loan Account

(c) Debenture holding Account 

(d) Debenture Suspense Account

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ



Question 175. Asked on :08 August 2021:04:12:31 AM

Shares may be issued:

(a) For cash 

(b) For consideration other than cash

(c) For both (a) and (b) 

(d) None of the above

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ




Question 178. Asked on :08 August 2021:04:10:30 AM

A debenture holder is entitled to:

(a) Fixed dividend 

(b) Share in profits

(c) Voting rights in the company 

(d) Interest at the fixed rates

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ


Question 179. Asked on :08 August 2021:04:09:05 AM

Interest on debentures issued as a collateral security is paid on:

(a) Nominal value of debentures

(b) No interest is paid

(c) Face value of debentures

(d) Paid up value of debentures

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ




Question 182. Asked on :08 August 2021:04:06:49 AM

Debenture holders are called the …… of a company.

(a) Banker 

(b) Owner

(c) Creditor 

(d) Debtor

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ


Question 183. Asked on :08 August 2021:04:05:42 AM

“Non-convertible” debenture is inferred as:

(a) Owner‟s capital 

(b) Loan capital

(c) Short term debts 

(d) None of these

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures MCQ


Question 184. Asked on :08 August 2021:04:04:48 AM

Interest received on debenture redemption fund investment is:

(a) Capital reserve A/c 

(b) General reserve A/c

(c) Debenture redemption fund A/c 

(d) None of the above

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures









Question 192. Asked on :08 August 2021:03:56:40 AM

Loss on issue of debentures is treated as:

(a) Intangible Asset 

(b) Non-current Asset

(b) Non-current Liability 

(d) Miscellaneous Expenditure

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures










Question 201. Asked on :08 August 2021:03:36:22 AM

Write the journal entries for conversion of Debentures into Shares?

-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures

Answer:

Master Purushottam

 Journal Entries:

1. On receipt of application money:

    Cash/Bank Account                                         Dr.

        To Debenture Application Account

2. For allotment of debentures:

    Debentures Application Account                     Dr.

       To Convertible Debenture Account

3. For conversion of the convertible debentures into equity / preference shares at          par 

    Convertible Debentures Account              Dr.

       To Equity / Preference Share Capital Account

4. For conversion of the convertible debentures into equity / preference shares at a        premium: 

   Convertible Debentures Account     Dr.

       To Equity / Preference Share Capital Account 

      To Security Premium Account


-Answered by Master Purushottam On 08 August 2021:03:38:45 AM


Question 202. Asked on :08 August 2021:03:17:43 AM

Accounting Entries for Creation of Sinking Fund?


-Added by Master Purushottam Accountancy » Issue & Redemption Of Debentures

Answer:

Master Purushottam

 

  • A sinking fund is a fund created for the repayment of a liability or for the replacement of an asset.
  • For collecting funds, a sinking fund is created voluntarily by making a charge against distributable profits. Every year, an equal amount is debited to Profit and Loss Appropriation Account and credited to Sinking Fund Account.

Accounting Entries for Creation of Sinking Fund:


At the end of 1st Year

(a)  For annual contribution (determined with the help of Sinking Fund Table) 

Profit and Loss Appropriation Account                       Dr.

To Sinking Fund Account

(b)  For investing the amount set aside

Sinking Fund Investment Account                               Dr.

To Bank Account

At the end of the 2nd and subsequent years

(a)  For receiving interest on sinking fund investment

Bank Account                                                                Dr.

To Interest on Sinking Fund Investment Account

(b)  For transferring interest on sinking fund investment to sinking fund account 

Interest on Sinking Fund Investment Account          Dr.

To Sinking Fund Account

Alternatively,

Bank Account                                                              Dr.

To Sinking Fund Account

(c)  For annual contribution

Profit and Loss Appropriation Account                      Dr.

To Sinking Fund Account

(d)  For investing the amount set aside plus interest received during the year

Sinking Fund Investment Account                              Dr. 

(Contribution plus Interest) 

To Bank Account

At the end of the year of redemption

(a)  For receiving interest on sinking fund investment

Bank Account                                                              Dr.

To Interest on Sinking Fund Investment Account

(b)  For transferring interest on sinking fund investment to sinking fund account 

Interest on Sinking Fund Investment Account         Dr.

To Sinking Fund Account

(c)  For annual contribution

Profit and Loss Appropriation Account                      Dr.

To Sinking Fund Account

At the end of the year of redemption of debenture, annual contribution and interest of that year are not invested outside. On that date all the investments are sold.

(d)  For realization of sinking fund investments

Bank Account                                                              Dr.

To Sinking Fund Investment Account

(e)  For profit on sale investment

Sinking Fund Investment Account                             Dr.

To Sinking Fund Account

(f)  For loss on sale of investment

Sinking Fund account                                                 Dr.

To Sinking Fund Investment Account

(g)  For redemption of debentures at a premium

Debenture Account                                                     Dr.

Premium on Redemption of Debenture Account       Dr.

To Debenture holders Account

(h)  For payment to debenture holders

Debenture holders Account                                       Dr.

To Bank Account

(i)   For transferring premium on redemption of debentures 

Sinking Fund Account                                                Dr.

To Premium on Redemption of Debentures Account

Note: Reverse entry will be made in case of a redemption at a discount

(j)   For transferring part of the sinking fund no longer required Sinking Fund Account                                                             Dr.

To General Reserve Account

-Answered by Master Purushottam On 08 August 2021:03:20:30 AM


Question 203. Asked on :22 October 2020:07:10:41 PM

Which accounting principle states that the same amount of time must be used for each accounting period?


-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

Anjali Kumari
Matching principle is the accounting principle that requires that the expenses incurred during a period be recorded in the same period in which the related revenues are earned. This principle recognizes that businesses must incur expenses to earn revenues.

-Answered by Anjali Kumari On 23 October 2020:06:31:13 PM


Question 204. Asked on :22 October 2020:07:09:07 PM

What is it called when your expenses are greater than your revenues on an income statement?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

Anjali Kumari
A net loss occurs when total expenses are higher than total revenue. This is the opposite of net profit and is usually recorded at the bottom line of the income statementA loss can also refer to a cost that doesn't relate to normal business operations.

-Answered by Anjali Kumari On 23 October 2020:06:40:32 PM


Question 205. Asked on :22 October 2020:07:05:29 PM

 What is the amount collected from the sale of goods and services called?


-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

Anjali Kumari
 Value of Supply of Goods or ServicesValue of supply means the money that a seller would want to collect the goods and services supplied. The amount collected by the seller from the buyer is the value of supply.

-Answered by Anjali Kumari On 23 October 2020:06:38:03 PM


Question 206. Asked on :22 October 2020:07:02:48 PM

What does the abbreviation GAAP stand for?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

Anjali Kumari
Generally accepted accounting principles (GAAP) refer to a common set of accounting principles, standards, and procedures issued by the Financial Accounting Standards Board (FASB). Public companies in the United States must follow GAAP when their accountants compile their financial statements.

-Answered by Anjali Kumari On 23 October 2020:06:41:56 PM


Question 207. Asked on :22 October 2020:06:59:51 PM

What do you mean by Tangible Real Accounts and Intangible Real Accounts?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Tangible Real Account – Those assets which can be touched and have a physical existence are defined as tangible real accounts.

Example  Machinery A/c, Vehicle A/c, Building A/c

Journal Entry –

  • Debit what comes in
  • Credit what goes out

Intangible real account – Those assets which have some monetary values but can’t be touched are referred to as intangible real accounts.

Example – Goodwill, Patents, Copyrights

Journal Entry –

  • Debit what comes in
  • Credit what goes ou

-Answered by nisha sheikh On 22 October 2020:07:01:47 PM


Question 208. Asked on :22 October 2020:06:58:16 PM

 What is section 209 (4A) in the Companies Act, 1956?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Section 209(4A) in The Companies Act, 1956 states that:

Every company must preserve the books of accounts, together with the vouchers relevant to any entry in such books of account, in good order, relating to a period of not less than 8 years immediately preceding the current year.

So of the Current Year Ending is – March 2020 then, the company needs to store the accounts and vouchers for the following years:

March 2019, 2018, 2017,……, to 2012

-Answered by nisha sheikh On 22 October 2020:06:59:30 PM


Question 209. Asked on :06 October 2020:03:49:53 PM

What do you mean by Tangible Real Accounts and Intangible Accounts?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Tangible Real Account – Those assets which can be touched and have a physical existence are defined as tangible real accounts.

Example  Machinery A/c, Vehicle A/c, Building A/c

Intangible real account – Those assets which have some monetary values but can’t be touched are referred to as intangible real accounts.

Example – Goodwill, Patents, Copyrights

-Answered by nisha sheikh On 06 October 2020:03:51:23 PM


Question 210. Asked on :06 October 2020:03:47:04 PM

What is the Accounting Information System (AIS)?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
AIS is a computer-based method used for tracking accounting activity and involves – collecting, storing, processing, organizing, and summarizing accounting data and transactions. It also helps in cumulating financial transactions and essential financial reports, which helps stakeholders in decision making. 

-Answered by nisha sheikh On 06 October 2020:03:48:52 PM


Question 211. Asked on :06 October 2020:03:30:16 PM

What are the different types of liquidity ratios in Accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

  1. Current ratios 
  2. Net-Working Capital Ratio
  3. Quick Ratio
  4. Super Quick Ratio
  5. The Operating cash flow Ratio

-Answered by nisha sheikh On 06 October 2020:03:32:24 PM


Question 212. Asked on :06 October 2020:03:25:34 PM

What do you mean by DPO (Days Payable Outstanding)?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
DPO or Days Payable Outstanding refers to the average number of days which ideally a company takes to clear its credit purchase in regards to the outstanding suppliers. Most of the time, DPO is a monthly task for a business, however, each month the day of clearing the outstanding payment might differ, hence the average is taken out to estimate the payment period.

-Answered by nisha sheikh On 06 October 2020:03:29:37 PM


Question 213. Asked on :06 October 2020:12:18:57 PM

Write the types of Drawings?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

1. Regular Drawings

2. Irregular Drawings

-Answered by nisha sheikh On 06 October 2020:12:26:48 PM


Question 214. Asked on :06 October 2020:12:17:34 PM

Write the difference between Drawings against Capital and Drawings against Profit?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

 Basis 

Drawings Against Profit

Drawings Against Capital

1.Where Debited 

It is debited to Drawings Account.

It is debited to Capital Account. 

2. Part

It is a part of expected profit.

It is a part of capital. 

3.Effect

It does not reduce capital.

It reduces capital. 

4.Interest on Drawings

It is considerd for calculating interest on drawings.

It is not considerd for calculating interest on drawings. 

5.Interest on Capital

It is not considerd for calculating interest on capital.

It is considerd for calculating interest on capital. 


-Answered by nisha sheikh On 06 October 2020:12:51:21 PM


Question 215. Asked on :06 October 2020:12:16:29 PM

Write the meaning of Drawings against Profit?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Drawings against capital means withdrawal by a Partner out of his or her capital. Interest on capital is allowed on the capital for the period it is used.Therefore, interest is not allowed ,i.e., paid on the amount of capital withdrawn.

-Answered by nisha sheikh On 06 October 2020:12:33:59 PM


Question 216. Asked on :06 October 2020:12:15:19 PM

What is the meaning of Drawings against Capital?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh
Drawings against capital means withdrawal by a Partner out of his or her capital. Interest on capital is allowed on the capital for the period it is used.Therefore, interest is not allowed ,i.e., paid on the amount of capital withdrawn.

-Answered by nisha sheikh On 06 October 2020:12:39:58 PM


Question 217. Asked on :06 October 2020:12:13:59 PM

Define Drawings?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Drawings means the amount withdrawn, in cash or in kind, by partners for their personal use.

-Answered by nisha sheikh On 06 October 2020:12:41:06 PM


Question 218. Asked on :06 October 2020:12:11:26 PM

By Which Methods Partner's capital Accounts may be maintained?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh
Capital accounts of partners of a firm may be maintained by following two methods

(i) Fixed capital method and

(ii) Fluctuating capital method.

-Answered by nisha sheikh On 06 October 2020:03:23:05 PM


Question 219. Asked on :06 October 2020:12:09:18 PM

 Write the difference between Profit and Loss Account and Profit and Loss Appropriation Account?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

 

Basis 

Profit and Loss Account

Profit and Loss Appropriation Account 

1. 

Stages of preparation

It is prepared after Trading Account and Therefore,starts with Gross Profit and Gross Loss transffered from Trading Account. 

It is prepared after Profit and Loss Account and therefore, starts with Net Profit or Net Loss as transferred from the Profit and Loss Account.

2. 

Objective 

It determines Net Profit earned or Net Loss Incurred during the Accounting Year.

It shows Appropriation of Net Profit i.e., distribution of Net Profit for the Accounting Period among the Partners.

3. 

Nature of Items 

It is debited with the expenses and credited with the income, not being business income to determine net profit for accounting period.

It is debited with the items of appropriation of profit like salary, commission, interest on capital, transfer to reserve, etc. and credited with the items of income being debited to Partners’ Capital Account or Current Accounts such as interest on drawings

4. 

Partnership Deed

This account is not guided by the Partnership Deed or Agreement.

This account is prepared as guided by the Partnership Deed or Agreement or provisions of Indian Partnership Act, 1932.

5. 

Matching Principle 

It follows the Matching Principle where revenue is matched against expense.

It does not follow the Matching Principle.

-Answered by nisha sheikh On 06 October 2020:03:06:40 PM


Question 220. Asked on :06 October 2020:12:07:51 PM

Write the features of Profit and Loss Appropriation Account?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh
Features of Profit and Loss Appropriation Account:

  1. It is an extension of the Profit and Loss Account.
  2. It is prepared only by the partnership Firms.
  3. It shows the appropriation of Net Profit or Loss for the Accounting period.
  4. Entries in this account are passed giving effect to the Partnership Deed.

-Answered by nisha sheikh On 07 October 2020:11:08:32 AM


Question 221. Asked on :06 October 2020:12:05:55 PM

 What is the nature of Interest on Partner's Loan?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Interest on Partner's loan is a charge against Profit. 

-Answered by nisha sheikh On 07 October 2020:11:14:05 AM


Question 222. Asked on :06 October 2020:12:05:08 PM

 Write the Disadvantages of LLP?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Disadvantages of LLP:

  • Any act of the partner without the knowledge of other partners may bind the LLP.
  • LLP cannot raise money from the public.
  • Venture capital firms generally prefer not to invest in LLPs. Private Limited is preferred over LLP.

-Answered by nisha sheikh On 07 October 2020:11:16:27 AM


Question 223. Asked on :06 October 2020:12:04:22 PM

 Write the beneits of LLP?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Benefits of LLP:

  • It is more flexible as compared to a company to organise internal structure.
  • There is no maximum limit for the number of partners in LLP. In a private limited company, number of shareholders is limited to 200 shareholders excluding past and present employee shareholders.
  • Raising and utilisation of funds depends on the partner' will as against norms precribed in the Companies Act, 2013 as applicable to companies.

-Answered by nisha sheikh On 07 October 2020:11:23:49 AM


Question 224. Asked on :06 October 2020:12:03:12 PM

 Write the characteristics of a LLP?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh
Characteristics of LLP:

  • Separate Legal Entity
  • Minimum Capital
  • Minimum number of Members
  • Audit is not Mandatory.

-Answered by nisha sheikh On 07 October 2020:11:31:45 AM


Question 225. Asked on :06 October 2020:11:55:52 AM

Write the full form of LLP?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Limited Liability Partnership.

-Answered by nisha sheikh On 07 October 2020:11:34:12 AM


Question 226. Asked on :06 October 2020:11:52:49 AM

Write some other Important Provisions of the Indian Partnership Act, 1932?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Some other Important Provisions of the Indian Partnership Act, 1932: 

  1. If all the partners agree, a minor may be admitted for the benefit of partnership.                           [Sec. 30]
  2. A person may be admitted as a partner either with the contest of all the existing partners or in accordance with an express agreement among the partners.   [Sec. 31]
  3. Registration of the firm is optional and not compulsory.[Sec. 69]

-Answered by nisha sheikh On 07 October 2020:11:35:11 AM


Question 227. Asked on :06 October 2020:11:51:42 AM

 Is it essential to have a Partnerhip Deed?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

No, It is not essential but desirable to have a Partnership Deed. In case Partnership Deed does not exist, Provisions of the Indian Partnership Act, 1932 will apply. 

-Answered by nisha sheikh On 07 October 2020:11:44:50 AM


Question 228. Asked on :06 October 2020:11:48:08 AM

 Write the importance of Partnership Deed?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

  1. It governs the rights, duties and liabilities of each partner.
  2. Disputes arising, if any, among the partners are settled on the basis of Partnership Deed, it being a written contract.

-Answered by nisha sheikh On 07 October 2020:12:17:55 PM


Question 229. Asked on :06 October 2020:11:46:58 AM

 Write any five Rights of Partners?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

  1. Right to take part in the Conduct of the Business.
  2. Right to be Consulted.
  3. Right to have Access to Books.
  4. Right to Share Profits.
  5. Right to Interest on Capital.

-Answered by nisha sheikh On 07 October 2020:12:21:13 PM


Question 230. Asked on :06 October 2020:11:45:03 AM

Write the essential features of Partnership?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

  1. Two or more Persons: There must be atleast two persons to form a Partnership.
  2. Agreement: Partnership comes into existence by an agreement, either written or oral.
  3. Lawful Business: A Partnership is established for a Lawful Business.

-Answered by nisha sheikh On 07 October 2020:12:10:39 PM


Question 231. Asked on :06 October 2020:11:42:09 AM

Define Firm Name?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh
The name under which the business is carried is called Firm Name.

-Answered by nisha sheikh On 07 October 2020:12:07:25 PM


Question 232. Asked on :06 October 2020:11:39:16 AM

 Define Firms?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

firm is a for-profit business organization.

-Answered by nisha sheikh On 07 October 2020:12:01:22 PM


Question 233. Asked on :06 October 2020:11:34:59 AM

 Define Partners?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh
The persons who have entered into a partnership with one another individually are called Partners.

-Answered by nisha sheikh On 07 October 2020:11:57:49 AM


Question 234. Asked on :06 October 2020:11:26:30 AM

Write the meaning of Partnership?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Partnership is the relation between persons who have agreed to share profits of a business carried on by all or any of them acting for all. 

-Answered by nisha sheikh On 07 October 2020:11:51:51 AM


Question 235. Asked on :03 October 2020:11:52:09 AM

 What do you mean by Amortization?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Amortization is an accounting concept that is used to gradually write off the cost. Through amortization, over a period of time, one can allocate the cost of any intangible asset. Also, it can be done to repay any loan principal. However, those assets which have an indefinite life like Goodwill can not be amortized.

-Answered by nisha sheikh On 03 October 2020:11:54:21 AM


Question 236. Asked on :03 October 2020:11:49:10 AM

Are you in favour of having Accounting Standards?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

 I believe that accounting standards contribute to high quality and accurate reporting and ensure reliable financial statements.

-Answered by nisha sheikh On 03 October 2020:11:56:15 AM


Question 237. Asked on :03 October 2020:11:47:35 AM

 What are the various stages of project implementation?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

There are six steps involved in project implementation, which are –

1. Identifying need

2. Generating and screening ideas

3. Conducting a feasibility study

-Answered by nisha sheikh On 03 October 2020:11:57:22 AM


Question 238. Asked on :03 October 2020:11:45:37 AM

 What is Project Implementation?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Project implementation is a phase when the plans and visions come into reality. This includes carrying out the tasks to deliver the outputs and monitor the related progress.

-Answered by nisha sheikh On 03 October 2020:11:58:55 AM


Question 239. Asked on :03 October 2020:11:43:20 AM

 Write the name of some common errors in accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Some common accounting errors are –

1. Error of omission

2. Error of commission

3. Error of original entry

4. Error of accounting principle

5. Compensating error

6. Error of entry reversal


-Answered by nisha sheikh On 03 October 2020:12:01:01 PM


Question 240. Asked on :03 October 2020:11:42:06 AM

 What is GST ?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
GST or Goods and Service Tax is an indirect tax charged on the value of the service or product sold to a customer. Here the consumers pay the tax to the seller, who thereby deposits the GST to the government.

-Answered by nisha sheikh On 03 October 2020:12:03:17 PM


Question 241. Asked on :03 October 2020:11:40:32 AM

 Explain Contingent Liabilities?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Contingent Liabilities are potential obligations that may or may not become an actual liability. They may or may not be incurred by an entity, based on the outcome of an uncertain future event, e.g. – If an ex-employee of an ABC company sues it for gender discrimination for any particular sum, the company has a contingent liability. In case the company is found guilty, it will have a liability, and if it is not found guilty, the company will not have an actual liability.

-Answered by nisha sheikh On 03 October 2020:12:04:25 PM


Question 242. Asked on :03 October 2020:11:39:40 AM

 What is a Credit Note?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
 A credit note is a receipt given to a buyer who has returned a product, by the seller/shop. This intimation suggests that the buyer’s account is being credited for the purpose indicated.

-Answered by nisha sheikh On 03 October 2020:12:05:00 PM


Question 243. Asked on :03 October 2020:11:36:50 AM

 What is Debit Note?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Debit note or debit memorandum is a commercial document sent to a seller, by a buyer, formally requesting a credit note. The original document is sent to the party to whom the goods are being returned and the duplicate copy is kept for office record.

-Answered by nisha sheikh On 03 October 2020:12:05:31 PM


Question 244. Asked on :03 October 2020:11:35:17 AM

 What is owner's equity?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
The owner’s equity is a business owner’s claim against the assets of the business. It is also called the capital of the business and is calculated by subtracting equity of creditors from the total equity.

-Answered by nisha sheikh On 03 October 2020:12:05:53 PM


Question 245. Asked on :03 October 2020:11:34:00 AM

Write the name of different accounting concepts?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

The most popular accounting concepts are –

1. Accounting Period Concept

2. Business Entity Concept

3. Cost Concept

4. Dual Aspect Concept

5. Going Concern Concept

6. Matching Concept

7. Money Measurement Concept

-Answered by nisha sheikh On 03 October 2020:12:08:18 PM


Question 246. Asked on :03 October 2020:11:31:29 AM

 What are Revenue Recognition and Matching Principle?s

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Revenue Recognition Principle – This principle suggests that the revenue should be recognized and recorded when it is realized and earned, no matter when the amount has been paid.

Matching Principle – This principle dictates the companies to report an expense on its income statement the time the related revenues are earned. It is associated with the accrual basis of accounting.

-Answered by nisha sheikh On 03 October 2020:12:07:56 PM


Question 247. Asked on :03 October 2020:11:30:44 AM

 When does Goodwill Increase?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Goodwill can be increased through the acquisition of another company as a subsidiary, by paying more than the fair value of its tangible and intangible assets.

-Answered by nisha sheikh On 03 October 2020:12:07:34 PM


Question 248. Asked on :03 October 2020:11:12:49 AM

When do you Capitalize rather than expense a purchase?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
An item’s cost is capitalized is it is expected to be consumed by the company over a long period. This way their economic value does not depreciate.

-Answered by nisha sheikh On 03 October 2020:12:07:15 PM


Question 249. Asked on :03 October 2020:11:11:44 AM

What is bad debt expense?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Bad debts expense is asset accounts receivable of a company and is considered to be uncollectible accounts expense or doubtful accounts expense.

-Answered by nisha sheikh On 03 October 2020:12:06:54 PM


Question 250. Asked on :01 October 2020:12:30:05 PM

 Write the name of some intangible assets?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Intangible assets include –

1. Patents

2. Copyrights

3. Trademarks

4. Brand names

5. Domain names

-Answered by nisha sheikh On 01 October 2020:12:30:56 PM


Question 251. Asked on :01 October 2020:12:28:42 PM

 What is reversing journal entries?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Reversing entries refer to the journal entries that are made when an accounting period starts. These entries reverse or cancel the adjusting journal entries that were made at the end of the previous accounting period.

-Answered by nisha sheikh On 01 October 2020:12:29:44 PM


Question 252. Asked on :01 October 2020:12:27:20 PM

What is an over accrual?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
It is a situation where the estimate for accrual journal entry is very high, and this may apply to the accrual of revenue or expense.

-Answered by nisha sheikh On 01 October 2020:12:28:26 PM


Question 253. Asked on :01 October 2020:12:22:51 PM

 Differentiate between Provision and Reserve?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Provisions – This refers to keeping the money for a given liability. In short, EXPENSES.

Reserves – Refers to retaining some amount from the profit for future use. In short, PROFITS.

-Answered by nisha sheikh On 01 October 2020:12:26:38 PM


Question 254. Asked on :01 October 2020:12:19:12 PM

 Define Partitioning?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Partitioning refers to the division/subdivision/grouping/regrouping of financial transactions in a given financial year.

-Answered by nisha sheikh On 01 October 2020:12:20:43 PM


Question 255. Asked on :01 October 2020:12:17:41 PM

 What is the difference between consignor and consignee?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Consignor – S/he is the shipper of the goods

Consignee – S/he is the recipient of the goods.

-Answered by nisha sheikh On 01 October 2020:12:21:15 PM


Question 256. Asked on :01 October 2020:12:16:36 PM

What are the different types of Depreciation?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Depreciation is of two types –

1. Straight Line Method

2. Written Down Value Method

-Answered by nisha sheikh On 01 October 2020:12:21:55 PM


Question 257. Asked on :01 October 2020:12:15:58 PM

 Define Depreciation?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Depreciation refers to the decreasing value of any asset that is in use.

-Answered by nisha sheikh On 01 October 2020:12:22:33 PM


Question 258. Asked on :01 October 2020:12:05:08 PM

 What is the dual aspect term?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
The dual aspect suggests that every business transaction requires double-entry bookkeeping. This can be understood with the example- If you purchase anything, you give the cash and receive the stuff, and when you sell anything, you lose the stuff and earn the money. This defines the aspects of every transaction.

-Answered by nisha sheikh On 01 October 2020:12:09:34 PM


Question 259. Asked on :01 October 2020:12:02:37 PM

 What is Compound Journal Entry?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
 A compound journal entry is just like other accounting entries; the only difference is that it affects more than two account heads. The compound journal entry has one debit, more than one credits, or more than one of both debits and credits.

-Answered by nisha sheikh On 01 October 2020:12:10:50 PM


Question 260. Asked on :01 October 2020:11:59:52 AM

 Where should you record a cash discount in journal entry?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
A cash discount should be recorded as a reduction of expenses in a cash account.

-Answered by nisha sheikh On 01 October 2020:12:13:42 PM


Question 261. Asked on :01 October 2020:11:51:58 AM

What is the Difference Between Accounts Receivable and Deffered Revenue?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Accounts receivable is yet-to-be received cash from products or services that are already sold/delivered to customers, whereas, deferred revenue is the cash received from customers for services or goods not yet delivered.

-Answered by nisha sheikh On 01 October 2020:11:59:34 AM


Question 262. Asked on :01 October 2020:11:49:12 AM

 Write the some examples of Liability Account?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Some popular examples of liability accounts are 

1. Accounts Payable

2. Accrued Expenses

3. Bonds Payable

4. Customer Deposits

5. Income Taxes Payable

-Answered by nisha sheikh On 01 October 2020:11:57:49 AM


Question 263. Asked on :01 October 2020:11:48:21 AM

 What is GAAP?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
GAAP is the abbreviation for Generally Accepted Accounting Principles (GAAP) issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956. 

-Answered by nisha sheikh On 01 October 2020:11:57:26 AM


Question 264. Asked on :01 October 2020:11:46:16 AM

 What is Assets minus Liabilities?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
 It stands for an owner’s or a stockholder’s equity.

-Answered by nisha sheikh On 01 October 2020:11:57:00 AM


Question 265. Asked on :01 October 2020:11:28:33 AM

 What are the disadvantages of Double Entry System?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
  • Difficult to find the errors, especially when transactions are recorded in the books
  • In case of any error, extensive clerical labour is required
  • You can’t disclose all the information of a transaction, which is not properly recorded in the journal

-Answered by nisha sheikh On 01 October 2020:11:55:07 AM


Question 266. Asked on :01 October 2020:11:26:58 AM

 What are the different stages of Double Entry System?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

There are three different stages of the double-entry system, which are –

  • Recording transactions in the accounting systems
  • Preparing a trial balance in respective ledger accounts
  • Preparing final documents and closing the books of accounts

-Answered by nisha sheikh On 01 October 2020:11:54:26 AM


Question 267. Asked on :01 October 2020:11:22:24 AM

 Define the term Material facts?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
These are the documents such as vouchers, bills, debit and credit notes, or receipts, etc. They serve as the base of every account book.

-Answered by nisha sheikh On 01 October 2020:11:26:11 AM


Question 268. Asked on :01 October 2020:11:20:04 AM

 What are Trade Bills?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
 Every transaction is documented and the trade bills are those documents, generated against each transaction.

-Answered by nisha sheikh On 01 October 2020:11:22:05 AM


Question 269. Asked on :30 September 2020:06:39:21 PM

 What is Marginal Cost?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
If there is an increase in the number of units produced, the total cost of output is changed. Marginal cost is that change in the cost of an additional unit of output.

-Answered by nisha sheikh On 01 October 2020:11:19:42 AM


Question 270. Asked on :30 September 2020:06:37:10 PM

 Define Balancing?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Balancing means equating or balancing both debit and credit sides of a T-account.

-Answered by nisha sheikh On 30 September 2020:06:38:51 PM


Question 271. Asked on :30 September 2020:11:37:26 AM

 What are the Bills Receivable?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Bills receivable are the proceeds or payments, which a merchant or a company will be receiving from its customers.

When replying to accounting interview questions, be very specific and don’t speak up generic stuff.

-Answered by nisha sheikh On 30 September 2020:06:36:44 PM


Question 272. Asked on :30 September 2020:11:33:52 AM

 What is Executive Accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Executive Accounting is specifically designed for service-based businesses. This term is popular in finance, advertising and public relations businesses.

-Answered by nisha sheikh On 30 September 2020:11:35:16 AM


Question 273. Asked on :30 September 2020:11:32:16 AM

 What do you mean by premises?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
 Premises refer to fixed assets presented on a balance sheet.

-Answered by nisha sheikh On 30 September 2020:11:33:24 AM


Question 274. Asked on :30 September 2020:11:28:59 AM

 What is ICAI?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
It is the abbreviation of the Institute of Chartered Accountants in India.

-Answered by nisha sheikh On 30 September 2020:11:31:11 AM


Question 275. Asked on :30 September 2020:11:21:36 AM

 What are some of the ways to estimate bad debts?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Some of the popular ways of estimating bad debts are – the percentage of outstanding accounts, aging analysis, and percentage of credit sales.

-Answered by nisha sheikh On 30 September 2020:11:28:21 AM


Question 276. Asked on :21 September 2020:10:07:39 AM

 What is the Perpetual Inventory system?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Perpetual inventory is a methodology that involves recording the sale or purchase of inventory immediately using enterprise asset management software and computerized point-of-sale systems.

-Answered by nisha sheikh On 21 September 2020:10:09:23 AM


Question 277. Asked on :21 September 2020:10:06:05 AM

 What is Departmental Accounting System?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
 It is a type of accounting information system that records all the financial information and activities of the department. This financial information can be used to check the profitability and efficiency of every department.

-Answered by nisha sheikh On 21 September 2020:10:09:49 AM


Question 278. Asked on :21 September 2020:10:03:51 AM

 Which Account is responsible for Interest Payable ?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
Current liability account is responsible for interest payable.

-Answered by nisha sheikh On 21 September 2020:10:10:51 AM


Question 279. Asked on :21 September 2020:10:02:52 AM

 What do you mean by company's payable cycle?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
It is the time required by the company to pay all its account payables.

-Answered by nisha sheikh On 21 September 2020:10:11:25 AM


Question 280. Asked on :21 September 2020:09:56:56 AM

 What is Scrap value in Accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Scrap Value is the residual value of an asset that any asset holds after its estimated lifetime.

-Answered by nisha sheikh On 21 September 2020:09:58:40 AM


Question 281. Asked on :21 September 2020:09:56:08 AM

 What is Fair value Accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
As per fair value accounting, a company has to show the value of all of its assets in terms of price on balance sheet on which that asset can be sold.

-Answered by nisha sheikh On 21 September 2020:10:00:02 AM


Question 282. Asked on :21 September 2020:09:55:30 AM

 What are the Trade Bills?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
These are the bills generated against each transaction. It is a part of documentation procedure for all types of transactions.

-Answered by nisha sheikh On 21 September 2020:10:00:37 AM


Question 283. Asked on :21 September 2020:09:54:25 AM

 What is Off Set Acounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Offset accounting is a process of cancelling an accounting entry with an equal but opposite entry. It decreases the net amount of another account to create a net balance.

-Answered by nisha sheikh On 21 September 2020:10:01:03 AM


Question 284. Asked on :21 September 2020:09:53:29 AM

 What is Retail Banking?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Retail banking or consumer banking involves a retail client, where individual customers use local branches of larger commercial banks.

-Answered by nisha sheikh On 21 September 2020:10:01:35 AM


Question 285. Asked on :21 September 2020:09:52:24 AM

 What is the meaning of Purchase Return in Accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
As the name suggests, purchase return is a transaction where the buyer of merchandise, inventory or fixed assets returns these defective or unsatisfactory products back to the seller.

-Answered by nisha sheikh On 21 September 2020:10:01:59 AM


Question 286. Asked on :21 September 2020:09:44:57 AM

 What are the Different Branches of Accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

 There are three branches of accounting –

  • Financial Accounting
  • Management Accounting
  • Cost Accounting

-Answered by nisha sheikh On 21 September 2020:10:02:31 AM


Question 287. Asked on :20 September 2020:07:50:42 PM

 What are Fictitious Assets?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
Fictitious assets are intangible assets and their benefit is derived over a longer period, for example, goodwill, rights, deferred revenue expenditure, miscellaneous expenses, preliminary expenses, and accumulated loss, among others.

-Answered by nisha sheikh On 20 September 2020:07:51:25 PM


Question 288. Asked on :20 September 2020:07:50:04 PM

 What is Tally Accounting?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
It is accounting software used by small business and shops to manage routine accounting transactions

-Answered by nisha sheikh On 20 September 2020:07:51:51 PM


Question 289. Asked on :20 September 2020:07:48:48 PM

 What is a Bank Reconciliation Statement?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
 A bank reconciliation statement or BRS is a form that allows individuals to compare their personal bank account records to that of the bank. BRS is prepared when the passbook balance differs from the cashbook balance.

-Answered by nisha sheikh On 20 September 2020:07:52:22 PM


Question 290. Asked on :20 September 2020:07:48:02 PM

 Write something about GST?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
GST is the acronym for Goods and Service Tax and it is an indirect tax other than the income tax. The seller charges it to the customer on the value of the service or product sold. The seller then deposits the GST to the government.

-Answered by nisha sheikh On 20 September 2020:07:52:45 PM


Question 291. Asked on :20 September 2020:07:46:53 PM

 What are tha Popular Accounting Applications?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
I am familiar with accounting apps like CGram Software, Financial Force, Microsoft Accounting Professional, Microsoft Dynamics AX and Microsoft Small Business Financials.

-Answered by nisha sheikh On 20 September 2020:07:53:31 PM


Question 292. Asked on :20 September 2020:07:33:36 PM

 What is Defered Tax Liability?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
Deferred tax liability signifies that a company may pay more tax in the future due to current transactions.

-Answered by nisha sheikh On 20 September 2020:07:36:25 PM


Question 293. Asked on :20 September 2020:07:32:01 PM

 Why do you think Accounting Standards are Mandatory?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
 Accounting Standards play an important role in preparing a good and accurate financial report. It ensures reliability and relevance in financial reports.

-Answered by nisha sheikh On 20 September 2020:07:37:04 PM


Question 294. Asked on :20 September 2020:07:31:02 PM

 What are the common errors in accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
The common errors in accounting are – errors of omission, errors of commission, errors of principle and compensating error.

-Answered by nisha sheikh On 20 September 2020:07:37:39 PM


Question 295. Asked on :20 September 2020:07:28:46 PM

 What is a Difference Between Balance Sheet and Trial Balance?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
 A trial balance is the list of all balances in a ledger account and is used to check the arithmetical accuracy in recording and posting. A balance sheet, on the other hand, is a statement which shows the assets, liabilities and equity of a company and is used to ascertain its financial position on a particular date.

-Answered by nisha sheikh On 20 September 2020:07:38:09 PM


Question 296. Asked on :20 September 2020:07:27:07 PM

 What is Diference Between AP (Accounts payable) and AR (Accounts receivable)?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
Accounts PayableAccounts Receivable
The amount a company owes because it purchased goods or services on credit from a vendor or supplier.The amount a company has the right to collect because it sold goods or services on credit to a customer.
Accounts payable are liabilities.Accounts receivable are assets.

-Answered by nisha sheikh On 20 September 2020:07:38:45 PM


Question 297. Asked on :20 September 2020:07:25:55 PM

 Where do you show TDS on a balance sheet?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
 In a balance sheet, it is shown in the assets section, right after the head current asset.

-Answered by nisha sheikh On 20 September 2020:07:42:08 PM


Question 298. Asked on :20 September 2020:07:25:15 PM

 What is TDS?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
 TDS (Tax Deducted at Source) is a concept aimed at collecting tax at every source of income.

-Answered by nisha sheikh On 20 September 2020:07:42:47 PM


Question 299. Asked on :20 September 2020:07:24:30 PM

 How do you maintain Accounting accuracy?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
Maintaining the accuracy of an organisation’s accounting is an important activity as it can result in a huge loss. There are various tools and resources which can be used to limit the potential for errors to creep in and address quickly if any errors do arise.

-Answered by nisha sheikh On 20 September 2020:07:43:16 PM


Question 300. Asked on :20 September 2020:07:23:14 PM

 What is Working capital?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
Working capital is calculated as current assets minus current liabilities, which is used in day-to-day trading.

-Answered by nisha sheikh On 20 September 2020:07:43:41 PM


Question 301. Asked on :20 September 2020:07:20:49 PM

 What is double-entry bookkeeping?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
Double-entry bookkeeping is an accounting principle where every debit has a corresponding credit.

-Answered by nisha sheikh On 20 September 2020:07:44:08 PM


Question 302. Asked on :20 September 2020:07:19:28 PM

Explain real and nominal accounts with examples.

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh

 A real account is an account of assets and liabilities. E.g. land account, building account, etc.

A nominal account is an account of income and expenses. E.g. salary account, wages account, etc.

-Answered by nisha sheikh On 20 September 2020:07:44:52 PM


Question 303. Asked on :20 September 2020:07:17:47 PM

How many types of business transactions are there in accounting?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
There are two types of business transactions in accounting – revenue and capital.

-Answered by nisha sheikh On 20 September 2020:07:45:23 PM


Question 304. Asked on :23 August 2020:10:30:54 AM

 Write the features of Company?

-Added by nisha sheikh Accountancy » Introduction To Company Accounts

Answer:

nisha sheikh

1. Incorporated association

2. Separate legal entity

3. perpetual existence 

4. Limited liability 

5. Transerability of shares

6. Artificial legal person

-Answered by nisha sheikh On 23 August 2020:10:36:02 AM


Question 305. Asked on :23 August 2020:10:19:23 AM

 Write the Features of Auditing?

-Added by nisha sheikh Accountancy » Concept Of Auditing

Answer:

nisha sheikh

 1. It is a systematic examination of books of accounts by an independent person.

2. Time, extent and nature of audit depends on the effectiveness of internal control system.

3. Auditing may be on test basis or in depth checking of books and accounts.

-Answered by nisha sheikh On 23 August 2020:10:24:28 AM


Question 306. Asked on :23 August 2020:10:11:53 AM

 Write the objectives of Auditing?

-Added by nisha sheikh Accountancy » Concept Of Auditing

Answer:

nisha sheikh

 1. The main objective of audit shifted to ascertaining whether the documents are true and fair rather than true and correct.

2. The emphasis was not on arithmetical accuracy but on a fair representation of financial efforts.

-Answered by nisha sheikh On 23 August 2020:10:14:05 AM


Question 307. Asked on :22 August 2020:10:35:04 AM

 Write the categories of Audits?

-Added by nisha sheikh Accountancy » Types Of Audit

Answer:

Shruti Srivastva
(i) Audit required by law.

(ii) Voluntary audit.  

-Answered by Shruti Srivastva On 29 August 2020:05:34:44 PM


Question 308. Asked on :22 August 2020:10:31:57 AM

 Write the Essentials of good audit evidence?

-Added by nisha sheikh Accountancy » Tools Of Auditing

Answer:

Shruti Srivastva
Should be reliable.

-Answered by Shruti Srivastva On 29 August 2020:05:35:46 PM


Question 309. Asked on :22 August 2020:10:28:03 AM

 Define Auditing Evidence ?

-Added by nisha sheikh Accountancy » Tools Of Auditing

Answer:

nisha sheikh

 Audit Evidence refers to any information , verbal or written , obtained by the auditor during the course of audit to arrive at the conclusion on which he bases his opinion on financial statements.

-Answered by nisha sheikh On 22 August 2020:10:29:10 AM


Question 310. Asked on :22 August 2020:10:16:34 AM

 Write the Limitations of Audit Programme? 

-Added by nisha sheikh Accountancy » Tools Of Auditing

Answer:

nisha sheikh

1. An audit programme is rigid i.e., not flexible . One audit programme may not suite all organisations.

2. Independent judgement and initiative of the audit staff may be restricted.It may frustrate the talented and efficient audit staff.

3. New areas will be overlooked as the audit will be carried out based on traditional audit programme only.

-Answered by nisha sheikh On 22 August 2020:10:18:24 AM


Question 311. Asked on :22 August 2020:10:12:45 AM

 Write the benenfits of Audit Programme?

-Added by nisha sheikh Accountancy » Tools Of Auditing

Answer:

nisha sheikh

1. Ensures that all areas have been covered during audit.

2. Acts as an evidence against charge of negligence .

3. Helps in fixing responsibilities .

 

-Answered by nisha sheikh On 22 August 2020:10:13:55 AM


Question 312. Asked on :22 August 2020:10:09:26 AM

Define Audit Programme?

-Added by nisha sheikh Accountancy » Tools Of Auditing

Answer:

Shruti Srivastva
An audit programme is a detailed plan of work, prepared by the auditor for carrying out an audit. 

-Answered by Shruti Srivastva On 29 August 2020:05:36:22 PM


Question 313. Asked on :22 August 2020:10:07:05 AM

 Write the types of Auditor's opinion?

-Added by nisha sheikh Accountancy » Auditor And Related Provisions

Answer:

Shruti Srivastva
(i) Qualified.

(ii) Unqualified.

(iii) Disclamer of.

(iv) Adverse. 

-Answered by Shruti Srivastva On 29 August 2020:05:37:38 PM



Question 315. Asked on :20 August 2020:10:27:37 AM

 Write the Importance of Audit Report?

-Added by nisha sheikh Accountancy » Auditor And Related Provisions

Answer:

nisha sheikh

Importance of Audit Report:

1. Audit Report helps an auditor to express his opinion on financial statements.

2. It shows the scope of work done and the responsibility assumed by the auditor while conducting audit.

3. The conclusions drawn by the auditor are communicated to the management through audit report.

4. It helps the shareholders of the company to know the state of affairs of the company.

-Answered by nisha sheikh On 22 August 2020:09:58:11 AM


Question 316. Asked on :20 August 2020:10:26:12 AM

Write the Rights of Auditor?: 

-Added by nisha sheikh Accountancy » Auditor And Related Provisions

Answer:

nisha sheikh

Rights of Auditor:

1. Right to access the books of account

2. Right to obtain information and explanation from officers

3. Right to receive notice of and attend general meetings 

4. Right to visit branch offices and access books

5. Right to receive notice for removal

6. Right to make a representation on removal 

7. Right to receive remuneration 

8. Right to sign the audit report.

-Answered by nisha sheikh On 20 August 2020:10:27:10 AM


Question 317. Asked on :20 August 2020:10:13:32 AM

 Write the types of Auditor?

-Added by nisha sheikh Accountancy » Auditor And Related Provisions

Answer:

Shruti Srivastva
Internal and External.

-Answered by Shruti Srivastva On 29 August 2020:05:38:57 PM


Question 318. Asked on :20 August 2020:10:08:35 AM

 Who is auditor?

-Added by nisha sheikh Accountancy » Auditor And Related Provisions

Answer:

Shruti Srivastva
A person who conducts an audit is known as auditor.

-Answered by Shruti Srivastva On 29 August 2020:05:39:19 PM


Question 319. Asked on :17 August 2020:10:31:52 AM

 What is Dissolution of a firm?

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

Shruti Srivastva
Dissolution of a firm a means putting an and to the partnership i.e., closing down the firm as a whole. 

-Answered by Shruti Srivastva On 29 August 2020:05:40:00 PM


Question 320. Asked on :17 August 2020:10:28:24 AM

 What is admission of a partner?

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

Shruti Srivastva
Admission means when a new partner enters into the buisness. 

-Answered by Shruti Srivastva On 29 August 2020:05:41:12 PM


Question 321. Asked on :17 August 2020:10:25:51 AM

 Write the name of methods of calculation of goodwill?

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

Shruti Srivastva
(i) Average profit method 

(ii) Super profit method 

-Answered by Shruti Srivastva On 17 August 2020:05:11:47 PM


Question 322. Asked on :17 August 2020:10:22:08 AM

 Write the factors affecting goodwill of a firm?

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

nisha sheikh
1. Location of business

2. Quality of goods sold/ services given

3. Reputation of owners of the firm 

4. Risk involved in business

5. Trends of profits etc.

-Answered by nisha sheikh On 17 August 2020:10:23:30 AM


Question 323. Asked on :17 August 2020:10:14:30 AM

 Write the need for valuation of goodwill?

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

nisha sheikh

1. On admission of new partner.

2. On retirement or death of a partner.

3. When there is a change in profit sharing ratio.

4. When the business is sold.

5. When a firm is amalgamated with another firm.



-Answered by nisha sheikh On 17 August 2020:10:18:18 AM


Question 324. Asked on :17 August 2020:10:09:48 AM

Write the features of Goodwill?

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

nisha sheikh

1. It is an intangible asset.

2. The value of Goodwill fluctuates from time to time.

3. It is a valuable asset and placed on the asset side of Balance sheet.

-Answered by nisha sheikh On 17 August 2020:10:11:06 AM


Question 325. Asked on :17 August 2020:10:02:13 AM

 What do you mean by goodwill?

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

Shruti Srivastva
Goodwill means the reputation of the firm. 

-Answered by Shruti Srivastva On 29 August 2020:05:42:07 PM


Question 326. Asked on :17 August 2020:09:57:22 AM

 Write the name of partnership accounts.

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

nisha sheikh

Partnership Accounts:

1. Partner's capital accounts

2. Partner's loan account

3. Profit and loss appropriation

-Answered by nisha sheikh On 17 August 2020:09:59:50 AM


Question 327. Asked on :17 August 2020:09:53:21 AM

 Write the features of Business Environment?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Anjali Kumari
The main features of business environment are:
  • All the external forces: Business Environment includes all the forces, institutions and factors which directly or indirectly affect the Business Organizations.
  • Specific and general forces: ...
  • Inter-relation: ...
  • Uncertainty: ...
  • Dynamic: ...
  • Complex: ...
  • Relativity:

-Answered by Anjali Kumari On 13 October 2020:07:27:42 PM


Question 328. Asked on :16 August 2020:11:08:11 AM

 What is Gross loss?

-Added by nisha sheikh Accountancy » Final Accounts

Answer:

Shruti Srivastva
It is net result of the trading account. 

-Answered by Shruti Srivastva On 29 August 2020:05:42:43 PM


Question 329. Asked on :16 August 2020:11:06:19 AM

 Define Closing Stock.

-Added by nisha sheikh Accountancy » Final Accounts

Answer:

Shruti Srivastva
It refers to the stock unsold at the end of the accounting year. 

-Answered by Shruti Srivastva On 29 August 2020:05:43:15 PM


Question 330. Asked on :16 August 2020:11:01:56 AM

 Write the formula of Net Purchases.

-Added by nisha sheikh Accountancy » Final Accounts

Answer:

Shruti Srivastva
Net Purchases = Purchase - Purchase returns

-Answered by Shruti Srivastva On 29 August 2020:05:44:02 PM


Question 331. Asked on :16 August 2020:10:57:57 AM

 Define Opening stock .

-Added by nisha sheikh Accountancy » Final Accounts

Answer:

Shruti Srivastva
This is closing stock of previous year which has been bought forward. 

-Answered by Shruti Srivastva On 29 August 2020:05:44:44 PM


Question 332. Asked on :16 August 2020:10:53:18 AM

 Define Cost of Asset.

-Added by nisha sheikh Accountancy » Depreciation

Answer:

nisha sheikh

Cost of the Asset refers to the cost at which asset is purchased. It includes all expenses incurred upto the point the asset is ready for use.

-Answered by nisha sheikh On 16 August 2020:10:54:34 AM


Question 333. Asked on :16 August 2020:10:48:34 AM

 Write the Objectives of providing Depreciation?

-Added by nisha sheikh Accountancy » Depreciation

Answer:

nisha sheikh

1. To ascertain correct profit/loss

2. To show a true and fair view of financial statements

3. To show assets at their proper value

4. To make provision for replacement of assets.


-Answered by nisha sheikh On 16 August 2020:10:50:39 AM


Question 334. Asked on :16 August 2020:10:44:05 AM

 Write the causes of Depreciation.

-Added by nisha sheikh Accountancy » Depreciation

Answer:

nisha sheikh

1. Physical wear and tear  due to continuous use.

2. Efflux ( passage of time)

3. Physical deterioration

4. Obsolescence (asset becoming redundant due to technological changes)

5. Accidents (fire etc.)

6. Depletion

-Answered by nisha sheikh On 16 August 2020:10:45:09 AM


Question 335. Asked on :16 August 2020:10:39:08 AM

 What do you mean by Depreciation?

-Added by nisha sheikh Accountancy » Depreciation

Answer:

nisha sheikh

Depreciation means a fall in the value of asset due to usage, efflux of time or due to obsolescence.

-Answered by nisha sheikh On 16 August 2020:10:40:29 AM


Question 336. Asked on :16 August 2020:10:34:28 AM

 Write the Significance of BRS.

-Added by nisha sheikh Accountancy » B R S

Answer:

nisha sheikh

1. Highlights causes of difference , necessary adjustment can therefore be carried out at early date.

2. Reduce chances of fraud.

3. Act as a moral check.

4. Actual position of bank balance can be found.

-Answered by nisha sheikh On 16 August 2020:10:35:31 AM


Question 337. Asked on :16 August 2020:10:30:25 AM

 Define Bank Reconciliation Statement.

-Added by nisha sheikh Accountancy » B R S

Answer:

nisha sheikh

 A bank reconciliation statement is a statement which is prepared to reconcile the balance as per cash book with the balance as per pass book.

-Answered by nisha sheikh On 16 August 2020:10:32:03 AM


Question 338. Asked on :16 August 2020:10:24:54 AM

 Write the differnce between Pass book and Cash book.

-Added by nisha sheikh Accountancy » B R S

Answer:

nisha sheikh

1. Pass book is maintained by a bank whereas Cash book is maintained by a customer.

2. In pass book, transactions are recorded from the point of view of bank whereas in Cash book they are recorded from point o view of client.

3. Entries done in the Cash book are exactly opposite to that posted in pass book.

-Answered by nisha sheikh On 16 August 2020:10:26:34 AM


Question 339. Asked on :16 August 2020:10:21:25 AM

 Define Overdraft.

-Added by nisha sheikh Accountancy » B R S

Answer:

nisha sheikh

 Overdraft is a facility where by a customer is allowed to draw more than the amount deposited in his account.

-Answered by nisha sheikh On 16 August 2020:10:23:05 AM


Question 340. Asked on :16 August 2020:10:17:02 AM

 Write the types of Personal account.

-Added by nisha sheikh Accountancy » B R S

Answer:

nisha sheikh

1. Current Account 

2. Savings Account

3. Fixed Deposit Account

4. Recurring Deposit Account

-Answered by nisha sheikh On 16 August 2020:10:20:03 AM


Question 341. Asked on :16 August 2020:10:12:22 AM

 Define Revenue losses?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
Losses of a revenue nature. 

-Answered by Shruti Srivastva On 29 August 2020:05:45:58 PM


Question 342. Asked on :16 August 2020:10:10:48 AM

 Define Capital Losses?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
Capital nature losses. 

-Answered by Shruti Srivastva On 29 August 2020:05:46:23 PM


Question 343. Asked on :16 August 2020:10:08:21 AM

 Define Profit?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
The diffrence between income and expenditure. 

-Answered by Shruti Srivastva On 29 August 2020:05:46:47 PM


Question 344. Asked on :16 August 2020:10:06:47 AM

 Receipts which have occured due to normal business activity are known as Revenue Receipts.

-Added by nisha sheikh Accountancy » Accounts

Answer:

Anjali Kumari
Revenue receipts are money received by a business as a result of its normal business operations. In this way, revenue receipts affect the profit or loss of a businessCapital receipts are non-recurring receipts that either increase a liability or decrease an asset.

-Answered by Anjali Kumari On 18 October 2020:07:04:53 PM


Question 345. Asked on :16 August 2020:10:02:16 AM

 Define Capital Receipts?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
Recipts of capital nature. 

-Answered by Shruti Srivastva On 24 August 2020:05:26:17 PM


Question 346. Asked on :14 August 2020:10:53:15 AM

 Write the types of Errors?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Anjali Kumari
There are three types of error: syntax errors, logical errors and run-time errors. (Logical errors are also called semantic errors). We discussed syntax errors in our note on data type errors.

Generally errors are classified into three types: systematic errors, random errors and blunders. Gross errors are caused by mistake in using instruments or meters, calculating measurement and recording data results.

-Answered by Anjali Kumari On 13 October 2020:07:28:54 PM


Question 347. Asked on :14 August 2020:10:47:16 AM

 Is Trial Balance an account?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
No. 

-Answered by Shruti Srivastva On 29 August 2020:05:47:27 PM


Question 348. Asked on :14 August 2020:10:45:33 AM

 What do you mean by Trial Balance?

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

 A Trial balance is a statement prepared with the debit and credit balances of the ledger accounts including cash and bank balances to test the arithmetical accuracy of books.

-Answered by nisha sheikh On 14 August 2020:10:49:12 AM


Question 349. Asked on :14 August 2020:10:44:30 AM

Write the objectives of Trial Balance.

-Added by nisha sheikh Accountancy » Accounts

Answer:

Anjali Kumari
One of the main objectives of the trial balance is to ensure that the total of all debits equals the total of all the credits. ... After journalizing and posting all entries in the ledgers, the bookkeepers prepare the trial balance. A fully balanced trial balance will assure the arithmetic accuracy of the accounts.

-Answered by Anjali Kumari On 13 October 2020:07:22:41 PM


Question 350. Asked on :14 August 2020:10:42:49 AM

 Define Imprest System.

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
The system by which petty cashbook is maintatined. 

-Answered by Shruti Srivastva On 29 August 2020:05:47:50 PM


Question 351. Asked on :14 August 2020:10:40:07 AM

 Deine Petty cash book.

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

 Petty means small . A book which is used to record petty cash expenses of the business is called a Petty cash book.

-Answered by nisha sheikh On 14 August 2020:10:41:36 AM


Question 352. Asked on :14 August 2020:10:38:04 AM

 Deine Single column or Simple cash book.

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

 It is known as single column cash book because it contains only one amount column of cash .

-Answered by nisha sheikh On 14 August 2020:10:39:08 AM


Question 353. Asked on :14 August 2020:10:34:42 AM

 Deine Cash Book?

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

 CAsh Book is a book of prime entry in which cash and bank transactions of a business are recorded in a choronological order.

-Answered by nisha sheikh On 14 August 2020:10:35:45 AM


Question 354. Asked on :14 August 2020:10:01:20 AM

 Write the difference between Journal and Ledger.

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

 1. Journal is book of original entry while ledger is book of second entry .

2. Journal book is choronological while ledger is analytical .

3. Process of recording in journal is " journlising " while the process of recording in ledger is known as " posting".

-Answered by nisha sheikh On 14 August 2020:10:05:56 AM


Question 355. Asked on :12 August 2020:10:27:52 AM

 Write the rules for posting?

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

 Rules for posting:

1. The name of the account in the journal and ledger should exactly be the same .

2. The account debited in journal will be debited in ledger and the account credited in ledger will be credited.

3. The word "To" will be added in the name of the accounts on the debit side and "By" will be added in the accounts on the credit side e.g., "To sales" , "By purchases" etc.

4. The page number of the jornal from where the entry is transferred is to be writeen in the Folio Column.

5. The date of transactions is to be written in the date column.

-Answered by nisha sheikh On 12 August 2020:10:29:14 AM


Question 356. Asked on :12 August 2020:10:23:38 AM

 What is ledger posting?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
The process of transfering the information contained in a journal to a ledger. 

-Answered by Shruti Srivastva On 29 August 2020:05:48:40 PM


Question 357. Asked on :12 August 2020:10:19:43 AM

 What do you mean by ledger? 

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

 A kledger may be deined as a " book or register which contains in a summarized and classified form, a permanent record of all transactions".

-Answered by nisha sheikh On 12 August 2020:10:21:04 AM


Question 358. Asked on :12 August 2020:10:15:05 AM

 Write the process o journalising?

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

Process of journalising:

Step 1. Ascertain what accounts are affected  in the transaction .

Step 2 .Ascertain the nature of the account .

Step 3 . Apply the rules of debit and credit to each type of account.

Step 4 . Pass the entry.

-Answered by nisha sheikh On 12 August 2020:10:16:11 AM


Question 359. Asked on :12 August 2020:10:13:35 AM

 What is journal entry ?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva

An entry done in a journal. 

-Answered by Shruti Srivastva On 29 August 2020:05:49:32 PM


Question 360. Asked on :12 August 2020:10:10:48 AM

 What do you meant by journalising?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
The process of recording a transaction in a journal. 

-Answered by Shruti Srivastva On 29 August 2020:05:50:20 PM


Question 361. Asked on :12 August 2020:10:09:09 AM

 In which order transactions are recorded?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva

A chronological order. 

-Answered by Shruti Srivastva On 29 August 2020:05:51:02 PM


Question 362. Asked on :12 August 2020:09:57:50 AM

 Define journal?

-Added by Sehnaaz Sheikh Accountancy » Accounts

Answer:

nisha sheikh

 A journal is a book of original entry / prime entry  wherein transactions are first recorded beore being posted to the ledger .

-Answered by nisha sheikh On 12 August 2020:10:01:30 AM


Question 363. Asked on :12 August 2020:09:52:23 AM

 Write the importance of cost of capital?

-Added by Sehnaaz Sheikh Accountancy » Accounts

Answer:

Sehnaaz Sheikh

 1. Capital budgeting decision largely depends on the cost of capital of each source.

2. Cost of capital helps to take decision regarding capital sturcture. 

3. It helps to evaluate the financial perormance of the firm .


-Answered by Sehnaaz Sheikh On 12 August 2020:09:53:23 AM


Question 364. Asked on :12 August 2020:09:49:53 AM

 Write the full form of NOI?

-Added by Sehnaaz Sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
Net Opreating Income approach. 

-Answered by Shruti Srivastva On 29 August 2020:05:51:45 PM


Question 365. Asked on :12 August 2020:09:42:41 AM

 What is capital Rationing?

-Added by Sehnaaz Sheikh Accountancy » Accounts

Answer:

Sehnaaz Sheikh

 Capital Rationing is the term usually coined to denote such a condition in which the business enterprises are not able to accept all the projects on account of external or internal fund constraints 

-Answered by Sehnaaz Sheikh On 12 August 2020:09:45:37 AM


Question 366. Asked on :12 August 2020:09:29:55 AM

 What are the objectives of financial management?

-Added by Sehnaaz Sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
(i) Profit maximisation. 

(ii) Wealth maximisation. 

-Answered by Shruti Srivastva On 29 August 2020:05:52:17 PM


Question 367. Asked on :12 August 2020:09:24:04 AM

 What do you mean by financial management?

-Added by Sehnaaz Sheikh Accountancy » Accounts

Answer:

Sehnaaz Sheikh

 Financial management is concerned with investment , financing and dividend decisions in relation to objectives of the company . financial management is concerned with the eficient procurement and utilization of the funds.

-Answered by Sehnaaz Sheikh On 12 August 2020:09:26:10 AM


Question 368. Asked on :21 August 2019:07:59:18 PM

 What do you mean by consistency assumptions ?

-Added by anjali thakur Accountancy » Consistency Assumption

Answer:

anjali thakur

 According to the Consistency Assumption accounting practice once selected and adopted should be applied consistency year after year . The concept helps in better understanding of accounting information and makes it comparable with that of previous years .

-Answered by anjali thakur On 21 August 2019:08:01:18 PM


Question 369. Asked on :21 August 2019:07:56:26 PM

 Write the  feature of accounting principles ?


-Added by anjali thakur Accountancy » Feature Of Accounting Principle

Answer:

Master Purushottam
Essential Features of Accounting Principles:
  • Relevance or Usefulness: ADVERTISEMENTS: A principle will be relevant only if it satisfies the needs of those who use it. ...
  • Objectivity: A principle will be said to be objective if it is based on facts and figures. ...
  • Feasibility: The accounting principles should be practicable.

-Answered by Master Purushottam On 22 August 2019:09:17:18 PM


Question 370. Asked on :21 August 2019:07:12:48 PM

 What is creditors?


-Added by anjali thakur Accountancy » CH2

Answer:

Master Purushottam

 Creditor is a person to whom an amount is owned an account of credit purchase of goods and service n the normal course of business.

-Answered by Master Purushottam On 21 August 2019:11:05:48 PM


Question 371. Asked on :21 August 2019:07:08:25 PM

 Define drawings with example ?

-Added by anjali thakur Accountancy » Ch 2

Answer:

Master Purushottam

 Drawing is the amount of money or value of goods which the proprietor or partner withdraws for personal use. for example, withdrawal of cash by the proprietor for personal use

-Answered by Master Purushottam On 21 August 2019:11:07:50 PM


Question 372. Asked on :20 August 2019:07:59:13 PM

 Give two advantages of a journal ?

-Added by anjali thakur Accountancy » Ch 8

Answer:

Akki chauhan

(i) As transactions in journal are entered as and when they take place the possibility of omission of a transaction in the book of accounts.

(ii) As transaction in journal are recorded in chronological order, it is very easy locate a particular transaction when required.  

-Answered by Akki chauhan On 21 August 2019:11:07:26 AM


Question 373. Asked on :20 August 2019:07:57:39 PM

 What is trade discount ?

-Added by anjali thakur Accountancy » Ch 8

Answer:

anjali thakur

 A discount on the retail price of something allowed or agreed between traders or to a retailer by a wholesaler .


-Answered by anjali thakur On 20 August 2019:08:26:34 PM


Question 374. Asked on :20 August 2019:07:56:17 PM

 What is mean by a journal ?

-Added by anjali thakur Accountancy » Ch 8

Answer:

Shruti Srivastva
A record of financial transaction in order by date. 

-Answered by Shruti Srivastva On 29 August 2020:05:53:35 PM


Question 375. Asked on :20 August 2019:07:35:15 PM

What do you mean by going concern assumption

-Added by anjali thakur Accountancy » Ch 3

Answer:

anjali thakur

 According to this assumption, it is assumed that business shall continue for a foreseeable period and there is no intention to close the business scale down its operation significantly .

-Answered by anjali thakur On 20 August 2019:07:42:46 PM


Question 376. Asked on :19 August 2019:03:19:36 PM

Name any one external user of Accounting information.

-Added by nisha sheikh Accountancy » Ch-1

Answer:

Shruti Srivastva
Creditors. 

-Answered by Shruti Srivastva On 29 August 2020:05:54:21 PM


Question 377. Asked on :19 August 2019:03:17:41 PM

 Give two advantages of a Journal.

-Added by nisha sheikh Accountancy » Ch-8

Answer:

Shruti Srivastva
Possibility of error reuces.

provides accounting datain chronological order. 

-Answered by Shruti Srivastva On 29 August 2020:05:54:40 PM


Question 378. Asked on :06 May 2019:10:32:45 AM

 हथियाकरण से आप क्या समझते है ? 

-Added by priyanshu kumar Accountancy » हाशियाकरण की समझ

Answer:

sonu kumar

 समझती? पर इसका कारण रंग भेदी हथियाकरण है, समाज में जिसकी जड़े गहरी पैंसी. हुईं हैं। लेखिका को इस भोगे हुए यथार्थ का गहरा अभास था। जिसका प्रभाव ... क्या डॉ. सर्राफ स्वयं उन्हें सामाजिक रूप से. स्वीकार कर पायेगें? इन सभी बातों से दूर 'प्रभा खेतान' का भावविभोर हृदय केवल. डॉ. ... कड़वी-मीठी यादों के इर्द-गिर्द बुना गया आत्मचरित्र अपने आप में स्त्री जीवन की विशेष.

-Answered by sonu kumar On 06 May 2019:10:41:46 AM


 

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