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41. The simplest capital budgeting technique is :
(A) Rate of return method
(B) Net present value method
(C) Internal rate of return
(D) Payback period method
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42. Income Tax is a:
(A) Direct Tax
(B) Indirect Tax
(C) Necessary Tax
(D) Special Tax
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43. Ledger is a principal book in which :
(A) Only real accounts are kept
(B) Only personal accounts are kept
(C) Only nominal accounts are kept
(D) All accounts are kept
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44. Reserve capital means :
(A) The part of subscribe uncalled capital
(B) Accumulated profits
(C) The part of capital reserve
(D) The part of capital redemption reserve
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45. Which of the following is not an objective of cost accounting ?
(A) Ascertainment of cost
(B) Determination of selling price
(C) Cost control and cost reduction
(D) Assisting shareholders in decision making
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46. Cheque received from customer is recorded in :
(A) Cash Book
(B) Sales Book
(C) Purchase Book
(D) Bill Receivable Book
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47.Issue of bonus shares would not result in any change in :
(A) General reserve
(B) Equity share capital
(C) Net worth
(D) Profit & Loss Account
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48. Risk and return’ are _______related.
(A) inversely
(B) positively
(C) Both (A) and (B)
(D) None of the above
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49. Depreciation according to straight line method is calculated on :
(A) Opening balance
(B) Closing balance
(C) Original cost
(D) Market value
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50. According to Company Act, 2013, Schedule III, debentures are shown in the company’s balance sheet under which head?
(A) Shareholders fund
(B) Non current liabilities
(C) Current liabilities
(D) None of the above
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51. Period cost means :
(A) Prime Cost
(B) Fixed Costs
(C) Variable Costs
(D) Total Cost
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52. The policy ‘Anticipate no profit and provide for all possible losses’ reflects :
(A) Convention of conservatism
(B) Convention of consistency
(C) Convention of disclosure
(D) Convention of accuracy
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53. Which of the following are there in vouchers ?
(A) Date
(B) Amount
(C) Signature
(D) All of the above
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54. If the total cost is ₹260 and total variable cost is ₹60. What will be total fixed cost if output is (a) 100 units and (b) 200 units ?
(A) ₹200 and ₹200
(B) ₹100 and ₹200
(C) ₹260 and ₹100
(D) ₹160 and ₹100
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55. Ramu Ltd. has a current ratio of 3:1. If its stock is ₹30,000 and total current liabilities are ₹60,000, its quick ratio will be :
(A) 2:1
(B) 3:2
(C) 2.5:1
(D) None of the above
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56. In India, assessment year begins on:
(A) 1st January
(B) 1st October
(C) 1st August
(D) 1st April
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57. Cash received from Mohan ₹4500 is recorded correctly in cash book but debited to his account. Because of this error :
(A) Trial balance will show ₹9000 more on Cr, side
(B) Trial balance will show ₹9000 more on Dr. side
(C) Trial balance will show ₹4500 more on Dr. side
(D) Trial balance will show ₹4500 more on Cr. side
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58. The recommended basis of accounting is :
(A) Cash basis
(B) Equation basis
(C) Accrual basis
(D) Income & Expenditure basis
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59. Favourable balance of cash book means :
(A) Debit balance as per cash book
(B) Debit balance as per pass book
(C) Credit balance as per cash book
(D) None of the above
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60. Deduction is allowed from gross salary in respect of :
(A) Professional Tax
(B) Entertainment Tax
(C) Income Tax
(D) Both (A) and (B)
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