Tuesday, July 19, 2011
Thursday, May 5, 2011
GROUP TEST FOR CPT TEST
1. All of the followings are functions of accounting except –
(a) Decision making (b) Measurement
(a) Decision making (b) Measurement
(c) Forecasting (d) Ledger posting
2. Two primary qualitative characteristics of financial statements are –
(a) Understandability and materiality (b) Relevance and reliability
3. Selection of an inappropriate accounting policy decision may
(a) Overstate the performance and financial position a business entity
4. Creating reserve for discount on creditor is an example of –
(a) Increase in asset & owner’s liability (b) Decrease in asset & owner’s liability
5. Which is entered on the debit side of Cash Book?
(a) Trade discount allowed (b) Trade discount received
6. A cheque is payable across the bank counter is:
(a) Crossed cheque (b) Bearer cheque
7. General subsidy received from Govt. is:
(a) Capital receipts (b) Revenue receipts
8. Sale of office furniture has been credited to Sales a/c. It is :
(a) A Clerical error (b) An error of principle
9. Sale of office furniture has been credited to Sales a/c:
(a) Is an error of omission (b) Will affect the T/B
10. X ltd. Purchased 100 units @ Rs.10 for cash, 200 units @ Rs.20 subject to 10% trade discount and 5% cash discount against current dated cheque. The total amount of purchases is :
(a) Rs. 3,600 (b) Rs. 4,600
11. In case of a company manufacturing chemicals, Land is:
12. Which method is followed to have a uniform charge for depreciation and repairs and maintenance together?
(a) WDV (b) SLM
13. For depreciating Goodwill, the suitable method is:
(a) SLM (b) WDV
14. For depreciating Leases, the suitable method is:
(a) SLM (b) WDV
15. If the amount of any known liability cannot be determined with substantial accuracy:
(a) A definite liability should be created (b) A provision should be created
16. Provision is :
(a) An appropriation of profit (b) A charge against the profit
17. If consignee is not authorized to get del-credere commission, then:
(a) He is liable for all the losses on account of non-recovery of debts due to insolvency of customers.
18. A firm is the name of:
(a) The partners
19. The portion of acquisition cost of the asset, yet to be allocated to P&L a/c is known as :
(a) Book value (b) Accumulated value
20. As per sec. 12 of Negotiable Instrument Act, which of the following is not a foreign bill?
(a) A bill drawn outside India and made payable outside India.
21. A suspense a/c facilitates the preparation of …. even when the ……. has not tallied.
(a) Ledger; T/B (b) Financial statements; T/B
22. A company cannot issue redeemable preference shares for a period exceeding:
(a) 6 yrs. (b) 10 yrs.
23. Rs. 5000 incurred for up gradation of computer by installing of 128 MB RAM is:
(a) C.E (b) D.R.E
24. In case of debit balance, the words …… written on debit side:
(a) To bal. b/d (b) To bal. c/d
25. Accrual basis is recognized under:
(a) Indian Partnership Act, 1932 (b)Indian Companies Act, 1956
26. Fundamental accounting assumptions are:
(a) 2 (b) 3
27. Accounting estimates are required in case of:
(a) Determining Gross Profit (b) Making prov. on Doubtful Debts
28. In case of Cash Book with discount column, Discount a/c is …………. in the ledger.
(a) opened (b) not opened.
29. Trial Balance is:
(a) a statement (b) an account
30. A transaction which is journalized but not posted to the ledger is an error of:
(a) complete omission (b) partial omission
31. Depreciation is the process of:
(a) Allocation of profit (b) valuation of expenses
32. Goods distributed as free sample should be credited to:
(a) Advertisements’ a/c (b) Charity a/c
33. Which are the advantage of imprest system of Petty Cash Book:
(a) Control over mistake (b) Control over fraud
35. If the change in accounting policy has no material effect in current period but which is reasonably expected to have a material effect in later periods:
(a)The amount of change should be disclosed.
37. When a cheque received is endorsed, it must be entered on:
(a) Cr. Side of C.B only (b) Dr. side of C.B only
38. Rectifying entry for the error of the credit purchase of goods worth Rs. 1000 recorded as credit sale to Mr. X discovered two months later is two be passed in:
(a) Journal Proper (b) Sales Book
39. A purchase of Rs. 10000 has been wrongly posted to the dr. of Supplier’s a/c but had been correctly entered in Purchase a/c. This error:
(a) is an error of principle (b) will not affect the T/B
40. Which of the following statements is true:
(a) A bill cannot be endorsed more than two times.
41. ‘A provision is a liability which can be measured by using a substantial degree of estimation.’ -according to
(a) AS 10 (b) AS 4
42. Which is odd one out:
(a) Error of complete omission (b) Error of commission
43. Inventory is ascertained on the basis of ‘records’ in:
(a) Periodic Inventory System (b) Perpetual Inventory System
2. Two primary qualitative characteristics of financial statements are –
(a) Understandability and materiality (b) Relevance and reliability
(c) Relevance and understandability (d) Materiality and reliability
3. Selection of an inappropriate accounting policy decision may
(a) Overstate the performance and financial position a business entity
(b) Understate / overstate the performance and financial position a business entity
(c) Overstate the performance a business entity
(d) Understate the financial position a business entity
4. Creating reserve for discount on creditor is an example of –
(a) Increase in asset & owner’s liability (b) Decrease in asset & owner’s liability
(c) Increase in liability & owner’s liability (d) Decrease in liability & Increase owner’s liability
5. Which is entered on the debit side of Cash Book?
(a) Trade discount allowed (b) Trade discount received
(c) Cash discount allowed (d) Cash discount received
6. A cheque is payable across the bank counter is:
(a) Crossed cheque (b) Bearer cheque
(c) none
7. General subsidy received from Govt. is:
(a) Capital receipts (b) Revenue receipts
(c) Advance receipts (d) None
8. Sale of office furniture has been credited to Sales a/c. It is :
(a) A Clerical error (b) An error of principle
(c) An error of omission (d) Compensating error
9. Sale of office furniture has been credited to Sales a/c:
(a) Is an error of omission (b) Will affect the T/B
(c) Will not affect the profit (d) None
10. X ltd. Purchased 100 units @ Rs.10 for cash, 200 units @ Rs.20 subject to 10% trade discount and 5% cash discount against current dated cheque. The total amount of purchases is :
(a) Rs. 3,600 (b) Rs. 4,600
(c) Rs. 3,420 (d) Rs. 4,420
11. In case of a company manufacturing chemicals, Land is:
(a) A current asset (b) A fixe intangible asset
(c) A fixed tangible depreciable asset (d) A fixed tangible non-depreciable asset
12. Which method is followed to have a uniform charge for depreciation and repairs and maintenance together?
(a) WDV (b) SLM
(c) Double Declining Method (d) Sum of years digits method.
13. For depreciating Goodwill, the suitable method is:
(a) SLM (b) WDV
(c) Depletion (d) Annuity Method.
14. For depreciating Leases, the suitable method is:
(a) SLM (b) WDV
(c) Depletion (d) Annuity Method.
15. If the amount of any known liability cannot be determined with substantial accuracy:
(a) A definite liability should be created (b) A provision should be created
(c) A reserve should be created
16. Provision is :
(a) An appropriation of profit (b) A charge against the profit
(c) A reserve (d) None
17. If consignee is not authorized to get del-credere commission, then:
(a) He is liable for all the losses on account of non-recovery of debts due to insolvency of customers.
(b) He is not liable for all the losses on account of non-recovery of debts due to dispute.
(c) He is not liable for all the losses on account of non-recovery of debts due to insolvency of customers.
(d)None
18. A firm is the name of:
(a) The partners
(b) The minors in the firm
(c) The business under which the firm carries on business
(d) The collective name under which it carries on business.
19. The portion of acquisition cost of the asset, yet to be allocated to P&L a/c is known as :
(a) Book value (b) Accumulated value
(c) Realizable value (d) Salvage value
20. As per sec. 12 of Negotiable Instrument Act, which of the following is not a foreign bill?
(a) A bill drawn outside India and made payable outside India.
(b) A bill drawn outside India and made payable in India.
(c) A bill drawn outside India on a person resident in India
(d) A bill drawn in India on a person resident outside India and made payable outside India.
21. A suspense a/c facilitates the preparation of …. even when the ……. has not tallied.
(a) Ledger; T/B (b) Financial statements; T/B
(c) T/B; Financial statements (d) Journal; T/B
22. A company cannot issue redeemable preference shares for a period exceeding:
(a) 6 yrs. (b) 10 yrs.
(c) 20 yrs. (d) 24 yrs.
23. Rs. 5000 incurred for up gradation of computer by installing of 128 MB RAM is:
(a) C.E (b) D.R.E
(c) R.E (d) None.
24. In case of debit balance, the words …… written on debit side:
(a) To bal. b/d (b) To bal. c/d
(c) By bal. b/d (d) By bal. c/d.
25. Accrual basis is recognized under:
(a) Indian Partnership Act, 1932 (b)Indian Companies Act, 1956
(c) Concept of Accrual Act, 1946 (d) None.
26. Fundamental accounting assumptions are:
(a) 2 (b) 3
(c) 4 (d) None.
27. Accounting estimates are required in case of:
(a) Determining Gross Profit (b) Making prov. on Doubtful Debts
(c) Calculating int. on capital (d) All.
28. In case of Cash Book with discount column, Discount a/c is …………. in the ledger.
(a) opened (b) not opened.
29. Trial Balance is:
(a) a statement (b) an account
(c) both (d) None.
30. A transaction which is journalized but not posted to the ledger is an error of:
(a) complete omission (b) partial omission
(c) commission (d) None.
31. Depreciation is the process of:
(a) Allocation of profit (b) valuation of expenses
(c) segregation of profit (d) appropriation of profit.
32. Goods distributed as free sample should be credited to:
(a) Advertisements’ a/c (b) Charity a/c
(c) Purchase a/c (d) Goods a/c.
33. Which are the advantage of imprest system of Petty Cash Book:
(a) Control over mistake (b) Control over fraud
(c) Control over petty expensed (d) Benefits of specialization.
34. ……………….. normally doesn’t yield benefits beyond current accounting period.
(a) Capital Expenditure (b) Revenue Expense
34. ……………….. normally doesn’t yield benefits beyond current accounting period.
(a) Capital Expenditure (b) Revenue Expense
(c) Def. Rev. Expenditure (d) Contingent Liability.
35. If the change in accounting policy has no material effect in current period but which is reasonably expected to have a material effect in later periods:
(a)The amount of change should be disclosed.
(b) The fact of change should be disclosed.
(c) The fact of change should not be disclosed.
(d) None
.
36. Bad debts recovered a/c is:
(a) An asset a/c (b) A liability a/c
36. Bad debts recovered a/c is:
(a) An asset a/c (b) A liability a/c
(c) A revenue a/c (d) An expense a/c.
37. When a cheque received is endorsed, it must be entered on:
(a) Cr. Side of C.B only (b) Dr. side of C.B only
(c) Both side of C.B (d) Nowhere.
38. Rectifying entry for the error of the credit purchase of goods worth Rs. 1000 recorded as credit sale to Mr. X discovered two months later is two be passed in:
(a) Journal Proper (b) Sales Book
(c) Cash Book (d) Purchase Book.
39. A purchase of Rs. 10000 has been wrongly posted to the dr. of Supplier’s a/c but had been correctly entered in Purchase a/c. This error:
(a) is an error of principle (b) will not affect the T/B
(c) will affect the gross profit (d) None.
40. Which of the following statements is true:
(a) A bill cannot be endorsed more than two times.
(b) A bill is drawn by the purchaser.
(c) A bill contains an unconditional promise to pay.
(d) Noting charges are borne by the drawee in the event of dishonour of the bill.
41. ‘A provision is a liability which can be measured by using a substantial degree of estimation.’ -according to
(a) AS 10 (b) AS 4
(c) AS 6 (d) AS 29
42. Which is odd one out:
(a) Error of complete omission (b) Error of commission
(c) Error of partial omission (d) Compensating error.
43. Inventory is ascertained on the basis of ‘records’ in:
(a) Periodic Inventory System (b) Perpetual Inventory System
(c) None.
44. Over-riding commission is given :
(a) When agent is required to put in hand work in introducing a new product in the market
44. Over-riding commission is given :
(a) When agent is required to put in hand work in introducing a new product in the market
(b) For bearing the loss on a/c of bad debts
(c) Both (d) None.
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