Advanced Accountancy Paper I

 

M.Com- I Semester- I

Advanced Accountancy Paper- I

Multiple Choice Questions

1. IASC means

a) International Accounting Standards Committee          

b) International Accounting Standards Commission 

c) International Accounting Standards Company     

d) Indian Accounting Standards Committee

2. Accounting standards in India are issued by………….

a) Central Government                                              b) SEBI          

c) Institute of chartered accountant of India          d) Reserve Bank of India

3. The main purpose of introduction of accounting standards is to bring ………… in preparing financial statements.

a) Consistency             b) Formity       c) Uniformity             d) Reliability

4. Inventories should be valued at cost price or market price whichever is ……………

a) Lower         b) Higher         c) Equal          d) None

5. Accounting Standard 2 is releted to ……………….

a) Depreciation Accounting                           b) Revenue Recognition        

c) Disclosure of Accounting Policies              d) Valuation of Inventories

6.  ……………..are the modes or rules of conduct as imposed by custom, law or professional body in order to regulate and control the accounting process.

a) Accounting Standards      b) Accounting Concepts        

c) Accounting conventions     d) Accounting systems

7. The accounting standard board in India is established in …………..

a) 1976            b)  1977           c) 1978            d) 1929

8. Accounting Standard 1 is releted to ……………….

a) Depreciation Accounting                           b) Revenue Recognition        

c) Disclosure of Accounting Policies                        d) Valuation of Inventories

9. IAS means………….

a) Indian Accounting Standards                     b) Integrated accounting software

c) International accounting standards         d) Indian accounting software

10. Accounting standards refer to specific accounting …………………

a) Principles                            b) Methods of applying those principles        

c) Both of the above              d) None of the above

11. Accounting Standard refer to specific accounting…………

a) Principles                 b) Method of applying those principles         

c) Both the above       None of the above

12. Which of the following is not accounting concept.

a) Disclosure                         b) Money measurement                      

c) Business entity                    d) Going concern

13. Accounting standard board in India established in ………….

a) 1976            b) 1977            c) 1978            d) 1929

14. Which of the following is fundamental accounting assumptions

a) Going concern                     b) Consistency

c) Accrual                                d) All the above

15. GAPP means ………………….

a) Generally Audited Accounting Principles b) Globally Accepted Accounting Principles

c) Generally Accepted Accounting Principles d) Globally Audited Accounting Principles

16. Ind-AS means……………….

a) International Accounting Standards           b) Indian Accounting Standards    

c) Indian Auditing Standards                         d) None of the above

17. Accounting Standards are --------------- policy documents.

a) Written                   b) Unwritten               c) Verbal                     d) Audio

18. Which of the following is the objective of accounting standard.

a) To standardize different accounting policies and practices           

b) To provide standard accounting policies   

c) To bring uniformity in recording transaction         

d) All the above

19.  ……………. began as an attempt to harmonize accounting through the world.

a) IAS             b) AS               c) IFRS           d) GAAP

20. ………………convention implies application of uniform rules, regulations and policies from year to year.

a) Going concern                     b) Consistency                        c) Accrual                    d) Disclosure

21. Hotel business is basically ………...

a) Service Industry                b) Business Industry  

c) Manufacturing Industry      d) None of the above

22. From ………… the hotel industry is brought under GST.

a) 1st July 2018                       b) 1st July 2017         

c) 1st July 2021                       d) 1st July 2020

23. hotel provides ………… to its guests as well as visitor customers.

a) Food            b) Beverages               c) Food and Beverages          d) None of the above

24. Which of the following services rendered by hotels.

a) Accommodation to Guests             b) Food and Beverages          

c) Other Services                                 d) All the above

25. The Hotel Companies follows ………. System of book keeping.

a) Single entry             b) Double entry         c) Both of the above   d) None of the above

26. ………. is the source of revenue for hotel.

a) Wages and Salary               b) Repairs and Renewals                   

c) Room Rent                         d) All the above

27. The guest to whom only  the boarding facilities are provided is called as …………..

a) Resident Guest                   b) Non Resident Guest         

c) Both of the above               d) All the above

28. Which of the following is not a method of charging room rents.

a) Daily method                      b) Monthly method  

c) Night charge method          d) check out time method

29. Rate of Restaurant Occupancy = Number of meals sold / ………………… *100

a) Average seating capacity                b) Total seating capacity        

c) Normal seating capacity                  d) None of the above

30. OPD Register means……………

a) Out Patients and Doctors Register             b) Other Patients Daily Register        

c) Out Patients Daily Register                        d) Out Patients Department Register

31. In case of …………… hospitals the expenses of hospitals are met with the help of amount received in the form of government grants and donations. 

a) Public hospitals                               b) Private hospitals                 

c) Charitable hospitals                      d) All the above

32. ……… Register is maintained in every hospital to record the details of every patient who is admitted in the hospital for further treatment.

a) Admitted Register                          b) IPD Register         

c) OPD Register                                  d) None of the above

33. Subscription is the ………………. For hospitals.

a) Income                    b) Expenditure          c) Asset           d) Liability

34. Purchase of X- Ray Machine and Scanning Machine are the examples of …………. Expenditure in case of hospitals

a) Capital                   b) Revenue                  c) Variable                   d) Fixed

35. The expenditure, which is incurred to acquire, the fixed assets so as to enable the organization to earn profit in future is known as…………….

a) Revenue expenditure                      b) Capital expenditure         

c) Differed Revenue expenditure       d) None of the above

36. Preparation of consolidated Balance Sheet of Holding Company & Its subsidiary company as per …………. .

a) AS-11                      b) AS-22                     c) AS-21                      d) AS-23

37. The controlling company is called as…………

a) Holding company              b) Subsidiary company          

c) Minority company               d) None of the above

38. Dividends paid out of revenue profit by subsidiary company should be credited to the ……………. account.

a) Dividends account              b) P&L A/C  

c) Cash account                       d) None of the above

39. Revaluation profit or loss is treated as……………… profit or loss

a) Pre-acquisition                  b) Post acquisition      

c) Revenue                              d) None of the above

40. Minority interest means the share of minority shareholders in………………..of subsidiary company.

a) Shareholders fund               b) Net assets   

c) Capital employed                d) All the above

41. If the cost of control is more than the cost of investment, the difference is treated as………..

a) Goodwill                            b) Capital Reserve      

c) Revenue Reserve                d) None of  the above

42. If the cost of control is less than the cost of investment, the difference is treated as……………………

a) Goodwill                             b) Capital Reserve    

c) Revenue Reserve                d) None of  the above

43. Holding Company holds minimum ……………% shares in subsidiary company.

a) 50%                         b) 51%                        c) 40%             d) 60%

44. When a company acquires majority of the equity shares of another company it is called as …………..

a) Indirect holding                  b) Direct holding      

c) Both of the above               d) None of the above

45. Retained earnings of the subsidiary on or before the date of acquisition of shares are treated as……………..

a) Capital profit                                                         b) Revenue profit       

c) Profit apportioned as capital and revenue              d) None of the above

46. The share of remaining shareholders in subsidiary company is called as……………..

a) Cost of control                    b) Goodwill                

c) Minority interest                d) Capital Reserve

47. Profit made by a subsidiary company after the date of purchase of shares by the holding company is known as……………..

a) Revenue profit                  b) Realization profit   

c) Capital profit                       d) Revaluation profit

48. A company which holds more than 50% of shares of another company is termed as……………

a) Government company                     b) Public company     

c) Holding company                          d) Subsidiary company

49. Minority interest is shown on the …………..side of the consolidated balance sheet.

a) Assets side                          b) Liabilities side                   

c) Both of the above               d) None of the above

50. The controlled company is called as --------------------

a) Holding company               b) Subsidiary company        

c) Majority company               d) None of the above

51. When a holding company acquires control over another company through its subsidiary company then it is called as …………..

a) Indirect holding                 b) Direct holding                     c) Both            d) None

52. On 1st Auguest 2015 H Ltd. Acquired 6000 shares of Rs. 10 each of S Ltd at Rs. 105000. The share capital of S Ltd was 80,000 which is devided into 8000 shares of Rs. 10 each. Caculate Majority and Minority ratio

a) 1 : 3             b) 3 : 1                        c) 7.5 : 2.5                   d) 2 : 6

53. H Ltd acquired the shares of S Ltd on 1st August 2019.  The year end was 31st March 2020 then the  Pre and Post acuqisition period will be……………

a) 4 month and 8 months respectively         b) 5 months and 7 months respectively         

c) 3 months and 9 months respectively           d) None of the above

54. If the cost of control is less than the cost of investment, the difference is treated as……………………

a) Goodwill                 b) Capital reserve                 

c) Revenue reserve      d) None of the above

55. Contingent liability is shown by way of ------------ in Consolidated Balance Sheet.  

a) Contingent liability             b) Miscellaneous expenses     

c) Foot note                            d) None of the above

56. Expenses of management not applicable to insurance business are debited to ……………..

a) Revenue Account                           b) Profit and Loss Account 

c) P& L Appropriation Account         d) None of the above

57. In the case of marine insurance provision for unexpired risk should be ………..of net premium.

a) 50%             b) 70%             c) 110%           d) 100%

58. A valuation Balance Sheet is prepared by………………..

a) Fire Insurance Company                 b) Marine Insurance Company           

c) Life Insurance Company             d) All the above

59. The Commission paid by the re- insurer is known as……………….

a) Commission on direct business                   b) Commission on re- insrance ceded

c) Commission on re-insurance accepted    d) None of the above

60. Legal fees with respect to claim is shown in…………….

a) Revenure Account                         b) Profit and Loss Account 

c) P& L Appropreation Account        d) None of the above

61. If the insurance risk is very heavy that insurance company insures part of the risk with other insurance company it is termed as……………………..

a) Pre- Insurance                     b) Re- insurance                   

c) Post- insurance                    d) None of the above

62. General Insurance policies are normally for a short period of ……………….

a) One year                b) Two years               c) Three year               d) Five years

63. The term Indemnify means security against…………….

a) Profit                       b) Loss                        c) Investment              d) Policy

64. ………….. is an insurance company which shifts part or all the risk to the another insurance company.

a) Transferee Company           b) Reinsurer Company           

c) Ceding Company              d) None of the above

65. After closing the revenue account Surplus/ Deficit is transferred to ………………….

a) P & L Appropriation account                     b) Profit and Loss Account 

c) Balance sheet                                              d) None of the above

66. IRDA act was passed in the year ………………

a) 1899            b) 1999            c) 1998            d) 2000

67. Bonus is applicable only to ………… insurance.

a) Life                         b) Marine                     c) Fire             d) All the above

68. Commission on re-insurance ceded is…………… to revenue account.

a) Debited       b) Credited     c) Both of the above   d) None of the above

69. Insurane act was first passed in …………… In india.

a) 1838            b) 1937            c) 1949            d) 1938

70. IRDA means

a) Insurance regulatory and development authority        

b) International regulatory and development authority         

c) Indian regulatory and development authority       

d) Insurance regulatory and development association