Accounting - Practice Test

[#1141] If the period for writing-off the short working has expired then it is transferred to which account by lessee?

(A) Profit and Loss A/c

(B) Land owner A/c

(C) Royalty A/c

(D) Minimum rent A/c

Correct Answer

(A) Profit and Loss A/c

[#1142] Assertion (A): Cash flow Statement and Fund Flow Statement disclose same information. Reason (R): Both are prepared out of the same date You are to examine these two statements carefully and select the answers:

(A) Both (A) and (R) are true and (R) is the correct explanation of (A)

(B) Both (A) and (R) are true, but (R) is not correct explanation of (A)

(C) (A) is true but (R) is false

(D) (A) is false but (R) is true

Correct Answer

(D) (A) is false but (R) is true

[#1143] Which of the following is not an accounting principle?

(A) Dual aspect concept

(B) Cost concept

(C) Principle of materiality

(D) Principle of truthfullness

Correct Answer

(D) Principle of truthfullness

[#1144] Cost of Asset = Rs. 21,000 Scrap value = Rs. 1,000 Depreciation rate = 10% p.a. What will be the depreciation for the second year if depreciation is charged by straight line method?

(A) Rs. 2,100

(B) Rs. 2,000

(C) Rs. 2,200

(D) Rs. 2,400

Correct Answer

(B) Rs. 2,000

[#1145] Which of the following is not a transaction?

(A) Goods are purchased on cash basis for Rs.1000

(B) Salaries are paid for the month of May 2010

(C) Land is purchased for Rs. 10 lacs

(D) An employee dismissed from the job

Correct Answer

(D) An employee dismissed from the job

Explanation

Solution: An employee dismissed from the job is not a transaction. A transaction is an agreement between a buyer and a seller to exchange goods, services or financial instruments.

Accounting - Study Mode

[#1141] If the period for writing-off the short working has expired then it is transferred to which account by lessee?

Correct Answer

[#1142] Assertion (A): Cash flow Statement and Fund Flow Statement disclose same information. Reason (R): Both are prepared out of the same date You are to examine these two statements carefully and select the answers:

Correct Answer

[#1143] Which of the following is not an accounting principle?

Correct Answer

[#1144] Cost of Asset = Rs. 21,000 Scrap value = Rs. 1,000 Depreciation rate = 10% p.a. What will be the depreciation for the second year if depreciation is charged by straight line method?

Correct Answer

[#1145] Which of the following is not a transaction?

Correct Answer

Explanation