Welcome to your AFB 100 MCQ SET-03
1.
Which of the following accounting standards do not match in the context of banking companies’ accounts
2.
In the income and expenditure account, transactions relating to are included
3.
When the drawee pays the amount of the bill before its due date it is called
4.
When a bill is paid before due date and the drawer gives some allowance to the drawee, this is called
5.
The books of a firm are closed but it is found that a purchase of Rs.1000 from Atma Ram Sons has been passed through the sale book for Rs.100. what is the rectification entry, after preparing the trial balance
6.
For which of the following, an adjustment entry will be required
7.
Which of the following statement is correct regarding single entry system
8.
A machinery is purchased for a total price of Rs.1 lac with expected useful life of 5 years. What is the amount of depreciation at double declining balance method for calculation of depreciation, in the 2nd year
9.
A car is purchased for Rs.310000 with a scrap value of Rs.60000 at the end of 5 years’ useful life during Sept 2008, what is the written down value as on mar31, 2009 (which is closing date of financial year)
10.
The amount of under casting of credit side of bank column of the cash book will be deducted from the overdraft as per
11.
A firm had written off a sum of Rs.5000 as bad debt. However, in the following year a sum of Rs.3500 was received as recovery. What will be the impact of this recovery
12.
If a two- sided error has taken place, it will be corrected
13.
After preparation of trial balance it is observed that the goods amounting to Rs.10000 sold to Ashok & Sons were posted as Rs.1000 to their account. The rectification entry will be
14.
When a company issues shares and the calls amount in instalment i.e. application money, allotment money, call money, the amount of single call
15.
The shares of Rs.100 each, are issued at 10% discount and are forfeited for non-payment of call money of Rs.20 each. Which of the following journal entry will not be correct
16.
What adjustment entry will be passed for the goods taken by the promoter out of the goods purchased for the business
17.
Forex rate in Delhi is 1 US $ = 48.80/90. In London the 1 Euro = US $ 1.60/65-pound sterling. What is the cross rate for Euro
18.
Spot rate is 1 US $ = 48.10- and 2-months forward is available at 1 US = 48.50
19.
Which of the following does not match
20.
If there is overdraft with the bank, the bank column of the cash book will show
21.
The trial balance in which the total of debit side and total of credit side of each ledger account is taken into account is called
22.
The pricing method under which the price is determined by subtracting an appropriate gross mark up from the sale price, to an unrelated 3rd party, with the appropriate gross margin being determined by examining the conditions, under which the goods are sold and comparing the said transaction to other 3rd party transaction, is called
23.
A firm has been following the practice of not charging annual depreciation. At the time of sale of assets, it shows the difference between sale price and original cost as gain or loss in the year of sale. Which accounting concept is being violated
24.
Which of the following is correct formula for calculation of future value of an annuity due (beginning of period
25.
X is to receive Rs.5000 at beginning of every year for 5 year for 5 years at calculate the present value of annuity due)
26.
When a firm makes payment to another firm by way of a cheque the bank debits the same, after a time lag when cheque is presented. In the meantime, if cash book balance of cash book, the amount of cheque
27.
Balance in cash book of a firm is Rs.9500. It is noticed that (a) the payment side of the cash book is undercast by Rs.200 (b) a cheque of Rs.5000 issued by the firm is not entered in the bank column of the cash but bank has paid it. The balance in the pass- book chould be
28.
A firm purchased new machinery for Rs.3.20 lac. It is to charge depreciation @ 6%, 5% and 4% for 1st, 2nd and 3rd year respectively. And the end of 3rd year, its written down value will be
29.
A firm paid cartage of Rs.200 on account of transportation of newly purchased machinery to the cartage account. It will affect which of the following accounts
30.
Which of the following transactions will result in increase in asset and increase in liability
31.
When there is favourable balance as per cash book, and the cheque issued but not presented, to reach the balance in pass book, for this amount would be
32.
The depreciation has been charged and it has been debited to fixed asset account. It is an
33.
A bond face value of Rs.100 and coupon of 10%. Its remaining maturity period is 6 years. At 11% YTM, its market value is
34.
The liabilities that are repayable only when business will be terminated are called
35.
For a given difference between YTM and coupon rate of a bond
36.
A bond with a face value of Rs.100 has a maturity period of 5 years. If the YTM decreases to 9%, what will be the change in the price
37.
If YTM increase by 20%, the market price of Bond- A will change to
38.
Adjustment entry for bad debts is
39.
On a bond. the investor is subject to interest rate risk on account of (a) re-investment of annual interest (b) capital loss on account of change in the value of bond due to increase in market interest rates.
40.
If duration of a bond is 5 years, which of the following statement would be true
41.
Which of the following expenses by a firm cannot be taken as part of capital expenditure
42.
The appraisal method for capital expenditure, under which it is examined, how much period the invested funds will come back as cash inflow is called
43.
A firm has taken term loan from bank for construction of building . It will
44.
The process under which the future value of present cash flows is determined is called
45.
Which of the following is an error of omission
46.
Which of the following is not a source of finance for capital expenditure project
47.
Based on the above information, what is the payback period of Project - A
48.
Based on the payback period. What is the payback period of project-B
49.
Based on the above information, which project is preferable for investment and why
50.
In the above case, what is the accounting rate of return of Project A
51.
In the above case, what is the accounting rate of return of Project B
52.
Based on the accounting rate of return, which project is preferable for investment and why
53.
X wants Rs.340000 to replace his car after 5 years. He wants to save and invest in equal monthly instalments at 12% p.a How much money will be deposited every month
54.
X has been saving Rs.2000 at 10% p.a compounded annually. What will be amount at the end of 3rd year
55.
The depreciation is calculated as
56.
If scrap value of the machinery is given, the amount of depreciation is worked out as
57.
The scrap value of a machinery with original cost of Rs.1 lac is estimated at Rs.10000. Its useful life is 6 years. The depreciated value at the end of 4th year is
58.
A person wants to remit Euro and there is no quotation with the bank for Euro. Bank works out the rate through Re/$ rate and $ /Euro rate. This is called
59.
On a particular amount, the simple interest is Rs.306 for 2 years and the compound interest is 450 for 3 years. What is the principal amount
60.
X had borrowed Rs.65600 at 5% interest for 2 years to be payable in 2 annual instalment. What is the amount of annual instalment
61.
Spot exchange rate is 1 Euro = $ 1.40 and swap rate (called forward points) is 0.0105. Calculate 90 days interest differential assuming 360 days in a year
62.
Accounting system which is associated with the need of the business owners to keep record of their transactions, property etc, dues they owe and debts others owe them, is
63.
Accounting system which is used ascertaining the costs with a view to control them and also make assessment of profitability and efficiency of the business, is
64.
As per accounting standard No.22, the aggregate of current tax and deferred tax charged of credited to the statement of profit and loss for the period, is called
65.
A cheque issued by a firm is recorded on side of the
66.
The price at which two unrelated and non-desperate parties would agree to a transactions is called
67.
Firm-A sells goods on credit as well cash. For goods worth Rs.50000 the payment is yet to be received although goods were supplied, two months earlier to closing of the financial year
68.
A firm sells goods worth Rs.50000 to M/s XYZ in cash. In this case, which two accounts are involved
69.
A firm sells goods worth Rs.50000 to M/s XYZ in cash. In this case, while crediting the account, the following principle will be followed
70.
A persons owes some amount to the firm, is called of the firm
71.
Balance as per pass-book is Rs.23000 in the overdraft account as on Sep 30,2008. It is observed that (a) a cheque of Rs.3000 deposited by the firm has been received by the bank as dishonoured. (b) bank has debited Rs.50 as cheque returning charges (c) bank has dishonoured a cheque of Rs.1000 by mistake, which the firm had issued to make payment. The balance as per cash book should be
72.
Which of the following statement is not correct in the context of bank reconciliation statement
73.
A company had issued share with face value of Rs.100 + premium of rs.200 On certain shares, the application money and allotment money of rs.40 each has been received but due to non-receipt of 1st call money, few shares have been forfeited. Which of the following statement is correct
74.
The shareholders of a company have a fixed liability to pay, in case of liquidation of the company, It is called
75.
For making adjustment in respect of closing stocks, which of the following is debited
76.
For which of the following, an adjustment entry will not be required
77.
All the material information relating to business transactions is required to be given by a company in its balance, due to which of the following
78.
Of commission is received in advance and adjustment entry is passed, which of the following will not be true
79.
Which among the following accounting standards deal with inventory valuation
80.
When a bill is drawn by a party on the other party which of he following accounts is credited
81.
If trade discount allowed appears in the trial balance, it will be finally adjusted as
82.
When a firm withdraws money from bank, in the cash book, the amount of withdrawal is
83.
When a bill is endorsed by the drawer in favour of another party, the drawee is required to debit which of the following accounts
84.
When loss of stock takes place due to theft or fire etc. it is called
85.
A sum of rs.2500 has been spent by a firm to replace the worn-out parts of the machinery. This will be trusted as
86.
All receipts and payment made In cash, including cheques are recorded in
87.
Which of the following kinds of accounts are recorded in the ledger
88.
The balance in the pass books is Rs.54000 and it is observed that bank received Rs.2000 through NEFT and also remitted Rs.13000 through NEFT, as per standing instruction. What is the balance as per cash book
89.
If the proprietor has made certain drawings, the profit will be calculated as under
90.
Accounts and auditors’ report a banking company is required to be published (a) in a newspaper circulating in the place where the banking company is having its principal office k(b) it is to be published within 6 months of close of its financial year. (c) this is requirement of rule 15 of Banking regulation (Companies) Rules
91.
The balance in the cash book is Rs.30000 overdraft. It is observed that a cheque of Rs.2000 has been debited twice by the bank. Further theh bank credited Rs.3500 to the account of the firm by mistake, while this amount was to be credited to personal account of the partner. What is the balance in the pass book
92.
The finance manager of a company receives 10% commission on the profit after charging commission. The profit of the company are Rs.3.30 lac. What will be amount of commission of the manager
93.
Pre- operative expenses are shown by a company as
94.
A company comes out with an equity share issue having face value of Rs.10 and charges total Rs.30 for the share. The amount will be credited to:
95.
A company forfeits 2000 shares of Rs.10 each due to non-payment of 2nd call @ Rs.2. The amount already received is Rs.3 on application, Rs.3 as allotment, Rs.2 as first call. How much amount will be debited to share account
96.
Which of the following provisions of Companies Act 1956 are not correct
97.
At the end of one year, a sum Rs.10000 at 6% rate of interest when compounded half yearly becomes
98.
For a capital budgeting expenditure, the net present value of a project at 18% is Rs.15 lac negative, at 10%, it is Rs.12 lac positive and at 14%, it is ZERO. The internal rate of return from the project is
99.
Expense necessary to produce goods or service in a business organization can be classified as
100.
X has been investing Rs.5000 every year at year end, at 5% for 5 years. How much he will get at the end of 5 years (hint calculate the future value of an ordinary annuity
