Accounting
Question : Common-size Balance Sheet shows the percentage relation of each asset/equity and liability…………
Option 1: One accounting period
Option 2: Two or more accounting period
Option 3: To the total of assets/total of equity and liabilities
Option 4: None of the above
Correct Answer: To the total of assets/total of equity and liabilities
Solution : Answer = To the total of assets/total of equity and liabilities
Common-size Balance Sheet shows the percentage relation of each asset/equity and liability to the total of assets/total of equity and liabilities. Hence, the correct option is
Question : What is/are the features of computerised accounting environment?
Option 1: Simple and Integrated
Option 2: Accuracy & Speed
Option 3: Scalability
Option 4: All of the above
Correct Answer: All of the above
Solution : Following are the features of computerised accounting environment: 1. Simple and Integrated, 2. Accuracy & Speed, 3. Scalability, 4. Instant Reporting, and 5. Security. Hence, the correct option is 4.
Question : Assertion A :- Price level changes and the purchasing power of money are inversely related. A change in the price level makes analysis of financial statements of different accounting years invalid.
Reason R :- Accounting records ignore changes in the value of money.
In the context of the above two statements, which of the following is correct?
Option 1: Both Assertion A and reason R are correct but the reason R is not the correct explanation of Assertion A
Option 2: Both Assertion A and reason R are correct but the reason R is the correct explanation of Assertion A
Option 3: Both Assertion A is correct but the reason R is not correct
Option 4: Both Assertion A and reason R are not correct
Correct Answer: Both Assertion A and reason R are correct but the reason R is the correct explanation of Assertion A
Solution : Answer = Both Assertion A and reason R are correct but reason R is the correct explanation of Assertion A
It may become invalid to compare financial
Question : Accounting Standard (AS-3) has been made mandatory in respect of accounting periods commencing on or after 1st April 2001, for certain enterprises. These enterprises
Option 1: Enterprises whose equity or debt securities are listed on a recognised inventory exchange in India,
Option 2: All other commercial, industrial and business enterprises, whose turnover for the accounting period exceeds Rs. 50 Crores.
Option 3: Both 1 and 2
Option 4: None of the above.
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2 AS-3 has been mandatory for Enterprises whose equity or debt securities are listed on a recognised inventory exchange in India, and All other commercial, industrial and business enterprises, whose turnover for the accounting period exceeds Rs.
Question : The principles of management are:
Option 1: Fixed and unchangeable
Option 2: Universal and flexible
Option 3: Specific to each organization
Option 4: Derived from accounting principles
Correct Answer: Universal and flexible
Solution : The correct answer is (b) Universal and flexible
The principles of management are considered universal in the sense that they are applicable to various organizations and industries. While the specific application of management principles may vary based on the context and organizational needs,
Question : When, Value of output= Sales?
Option 1: When the entire output is sold in an accounting year.
Option 2: When the entire output is sold in the previous year.
Option 3: When the entire output is sold in the next year
Option 4: When the entire output is unsold.
Correct Answer: When the entire output is sold in an accounting year.
Solution :
Question : What are the factors to be considered while source accounting software?
Option 1: Flexibility
Option 2: Adaptability
Option 3: Interest of Management
Option 4: Both 1 & 2
Correct Answer: Both 1 & 2
Solution : The things to think about when choosing an accounting software supplier. Flexibility.
Adaptability.
the price of installation and upkeep.
a company's size.
level of secrecy.
Hence the correct answer is option 4.
Question : ---------------may be expressed as an arithmetical relationship between two accounting variables.
Option 1: Ratio
Option 2: Accounting ratio
Option 3: Ratio Analysis
Correct Answer: Accounting ratio
Solution : Answer = Accounting ratio
The accounting ratio may be expressed as an arithmetical relationship between two accounting variables. The term accounting ratio is used to describe significant relationships which exist between figures shown in a Balance Sheet, in a Statement of Profit and Loss,
Question : ____________ shows the financial performance, i.e., the result of business operations during an accounting period and is also known as an Income Statement.
Option 1: Profit and loss account
Option 2: Balance sheet
Option 3: Manufacturing account
Correct Answer: Profit and loss account
Solution : Answer = Profit and loss account
The Profit and Loss Account, also known as the Income Statement, summarizes a company's financial performance over a specific period by detailing revenues, expenses, gains, and losses. It provides insights into the profitability of the business
Question :
Option 1: Security breach
Option 2: Staff opposition
Option 3: Automated document production
Option 4: Cost of training
Correct Answer: Automated document production
Solution : A computerised accounting system has the following drawbacks: Expensive training. Interruptions in service. Systems failure Expensive installation fees. Failure to recognise unexpected mistakes Security breach
Hence the correct answer is option 3.
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