2955 + Interview Questions in Accounts in Class 12 Page 5 InterviewSolution

201.	Which of the following items will not be shown in Profit and Loss Appropriation Accoount ?
Answer» INTEREST on Capital Commission to a PARTNER Interest on Drawings Interest on Partner's LOAN Solution :Interest on Partner's Loan

Discussion

202.	Which of the following items is not a method/tool of analysis of financial statements ?
Answer» FUND FLOW Statement Common size Statements Statement of Trade Reveivables CASH flow Statement Answer :C

Discussion

203.	Which of the following items is shown under the head 'Non-Current Assets' while preparing the Balance Sheet of a company?
Answer» UNDERWRITING Commission Current Investments Inventory Patents Answer :D

Discussion

204.	Which of the following items are recorded in the Profit & Loss Appropriation Account of a partnership firm?
Answer» INTEREST on Capital Salary to Partner Transfer to RESERVE All to Reserve Answer :A::B::C::D

Discussion

205.	Which of the following item is considered as Cash Equivalents?
Answer» MARKETABLE Securities Debtors INVESTMENT BILLS of EXCHANGE ANSWER :A

Discussion

206.	Whichof thefollowing is transferredto RealisationAccount :
Answer» Balance of CashAccount Balance of PROFIT & Lossaccount Amount realised on sale of assets RESERVES Answer :C

Discussion

207.	Which of the following item is not considered as Cash Equivalents?
Answer» SHORT TERM DEPOSITS in BANK COMMERCIAL Papers Trreasury Bills Investment Answer :D

Discussion

208.	Which of the following is the objective of comparative Statements?
Answer» To MAKE the data SIMPLER and understandable To indicate the trend To HELP in forecasting All of the above Answer :D

Discussion

209.	Which of the following is shown under Financing Activity?
Answer» INTEREST PAID Commission RECEIVED Cash received against SALE of goods Cash paid for PURCHASE of goods Solution :Interest paid

Discussion

210.	Which of the following is source of cash?
Answer» Cash deposited into BANK Cash WITHDRAWN from Bank SALE of Goods costaing Rs 10,000 for Rs 8,000 Sale of marketable securities for cash Answer :C

Discussion

211.	Which of the following is part of Cash and Cash Equivalents?
Answer» CASH at Bank Current Investments Marketable Securities All of these Solution :All of these

Discussion

212.	Which of the following is not under the heading 'Share Capital' in a Balance Sheet :
Answer» SUBSCRIBED Capital ISSUED Capital Reserve Capital Authorised Capital ANSWER :C

Discussion

213.	Which of the following is not true in relation to goodwill?
Answer» It is an INTANGIBLE ASSET. It is a FICTITIOUS asset. It has a REALISABLE value. All of these. Solution :It is a fictitious asset.

Discussion

214.	Which of the following is not transferred to Realisation Account ?
Answer» BALANCE of CASH Account Balance of Reserves Balance of PROFIT and LOSS Account All of these Solution :All of these

Discussion

215.	Which of the following is not true in relation to goodwill ?
Answer» it is an INTANGIBLE ASSET It is a FICTITIOUS asset It has a REALISABLE value All of these Solution :It is a fictitious asset

Discussion

216.	Which of the following is not the mode of dissolution of the firm ?
Answer» By MUTUAL Agreement On HAPPING of an event Dissolution by court RETIREMENT of a PARTNER Solution :Retirement of a partner

Discussion

217.	Which of the following is not shown is not shown as Non-Current Liabilieties ?
Answer» TRADE PAYABLES Long-TERM Borrowings Deferred TAX Liabilities Long -term Provisions Solution :Trade Payables

Discussion

218.	Which of the following is not Short-term Borrowings ?
Answer» Deposits Loan REPAYABLE on demands Bank Overdraft TRADE RECEIVABLES Solution :Trade Receivables

Discussion

219.	Which of the following is not required to be prepared under the Companies Act
Answer» A - Statement of Profit and LOSS B - Balance Sheet C - REPORT of Director's and Auditor's D - Funds FLOW Statement Answer :D

Discussion

220.	Which of the following is not part of cash Equivalents?
Answer» CASH at Bank Current Investments Marketable Securities All of these. Solution :All of these.

Discussion

221.	Which of the following is not part of Cash and Cash Equivalents?
Answer» INVENTORIES Current Investments Short-term Deposits Marketable Securities Solution :Inventories

Discussion

222.	Which of the following is not application of cash?
Answer» ISSUE of SHARES Purchase of Machinery Sale of ASSET DIVIDEND received Answer :B

Discussion

223.	Which of the following is not application of cash
Answer» INCREASE in Debtors Increase in INVENTORY Increase in Bills PAYABLE Increase in PREPAID Expenses Answer :C

Discussion

224.	Which of the following is not Non-Current Assest
Answer» FIXED Assets SHARE CAPITAL Long-term LOAN and Advances Non-current investments Solution :Share Capital

Discussion

225.	Which of the following is not operating expenses?
Answer» OFFICE EXPENSES SELLING Expenses Bad Debts Loss by Fire Answer :D

Discussion

226.	Which of the following is not an feature of partnership?
Answer» An agreement , ORAL or written , should exist among the partners. Agreement should be to carry on lawful business. All the partnershould contribute capital in the FIRM. There SHOULDBE at least TWO partners. Solution :All the partnershould contribute capital in the firm.

Discussion

227.	Which of the following is not an essential feature of partnership ?
Answer» An agreement, oral or written, should EXIST among the PARTNERS Agreement should be to carry on lawful business. All the partners should CONTRIBUTE capital in the firm There should be at least TWO partners. Solution :All the partners should contribute capital in the firm

Discussion

228.	Which of the following is not an advantage of computerised accounting system a) Efficient record keeping b) Ensures effective control over the system. c) Generation of reports and information in fixed format d) Economy in the processing of accounting data.
Answer» Solution :C) GENERATION of reports and information in fixed format

Discussion

229.	Which of the following is not added as non - cash Expense?
Answer» GOODWILL amortised Depreciation INTEREST on DEBENTURES PAID All of these. Solution :Interest on debentures paid

Discussion

230.	Which of the following is not added as Non-Cash Expense?
Answer» GOODWILL amortised Depreciation INTEREST on DEBENTURES PAID All of these Solution :Interest on debentures paid

Discussion

231.	Which of the following is not a Non - Cash Transaction?
Answer» Depreciation Issue of BONUS SHARES Issue of Equity Shares for consideration than cash PAYMENT of WAGES Solution :Payment of Wages

Discussion

232.	Which of the following is not a Non-Cash Transaction ?
Answer» Deptreciation Issue of BONUS Shares Issue of EQUITY Shares for consideration other than cash PAYMENT of WAGES Solution :Payment of Wages

Discussion

233.	Which of the following is not a method of valuing goodwill?
Answer» AVERAGE Profit Method Super Profit Method Capitalisation Method DISCOUNTED Cash FLOW Method Solution :Discounted Cash Flow Method

Discussion

234.	Which of the following is not a method of valuing goodwill ?
Answer» AVERAGE PROFIT METHOD Super Profit Method Capitalisation Method Discounted Cash FLOW Method Solution :Discounted Cash Flow Method

Discussion

235.	Which of the following is not a 'Long-term Borrowings' ?
Answer» Bonds Debentures Public Deposits TRADE PAYABLES Solution :Trade Payables

Discussion

236.	Which of the following is not a limitationof analysis of financial statements ?
Answer» AFFECTED by PERSONAL bias To know the FINANCIAL strength Lack of QUALITATIVE Analysis Based on accounting concepts Answer :B

Discussion

237.	Which of the following is not a limitation of Financial Statement Analysis ?
Answer» Ignores the Qualitative Elements Not FREE from personal bias Intra - FIRM comparison Ignores the PRICE LEVEL changes Solution :Ignores the price level changes

Discussion

238.	Which ofthe following is not a from of persenting financial analysis :
Answer» ABSOLUTE FIGURE Comparison Ratio Method Cumulative FIGURES and averages Annual Report Answer :D

Discussion

239.	Which of the followingis not a characteristic of Bearer Debentures ?
Answer» A - They are treated as negotiable instruments. B - Their transfer requires a deed of transfer. C - They are TRANSFERABLE by mere delievery. D - The interest on it is PAID to the holder IRRESPECTIVE of identify. Answer :B

Discussion

240.	Which of the following is device of comparative statements ?
Answer» COMPARISON EXPRESSED in TERMS of ABSOLUTE data Comparison expressed in terms of percentages Comparison expressed in terms of ratios All of the above Answer :D

Discussion

241.	Which of the following is incorrect about the statement of cash flows?
Answer» It provides information about the cash receipt and cash payments of an enterprise. It reconciles ending cash balance with the balance as PER bank statement. It provides information about the OPERATING, INVESTING and financing activities. It EXPLAINS the deviation of cash from Earnings. Answer :B

Discussion

242.	Which of the following is considered as Cash Equivalents?
Answer» BANK deposits for 2 MONTHS Commercial Papers Trreasury Bills All of the above ANSWER :D

Discussion

243.	Which of the following is an example of cash flow from Operating Activities?
Answer» ISSUE of SHARES Purchase of Machinery Purchas·e of Investment Purchase of INVENTORY for CASH Answer :D

Discussion

244.	Whichof the following in nottransferred toRealisationAccount:
Answer» BALANCE of CASH Account Balance of Reserves Balance of PROFIT & LossAccount All of theabove Answer :D

Discussion

245.	Which of the following factors decreases the value of goodwill?
Answer» FAVOURABLE Location Favourable Contracts Customer Satisfaction CONTINUOUSLY INCURRING LOSSES Solution :Continuously incurring losses

Discussion

246.	Which of the following factors decreases the value of goodwill ?
Answer» FAVOURABLE Location Favourable Contracts Customer Satisfaction CONTINUOUSLY INCURRING LOSSES Solution :Continuously incurring losses

Discussion

247.	Which objective is not fulfilled by comparative Statement of Profit & Loss :
Answer» To compare the items of Statement of PROFIT & LOSS of two years To know the absolute changes in items of Statement of Profit & Loss To SHOW the change in financial position To know the percentage changes in items of Statement of Profit & Loss Answer :C

Discussion

248.	Which objective is not fulfilled by comparative financial statement :
Answer» INDICATE the extent of change in assets and liabilities Indicate the extent of change in ITEMS of Statement of PROFIT & Loss Show effect of operative activities on assets and liabilities Show the DIRECTION of change in assets and liabilities Answer :B

Discussion

249.	Which item is assumed to be 100 while preparing Common-Size Statement of Profit and Loss?
Answer» Solution :Revenue from Operation is assumed to be 100 while PREPARING Common-size Statement of PROFIT and LOSS.

Discussion

250.	Which Companies are exempted from creating 'Debenture Redemption Reserve' by the SEBI?
Answer» SOLUTION :(i) Debentures issued by All INDIA Financial Institutions, and (II) Banking COMPANIES.

Discussion

Explore topic-wise InterviewSolutions in .

Which of the following items will not be shown in Profit and Loss Appropriation Accoount ?

Which of the following items is not a method/tool of analysis of financial statements ?

Which of the following items is shown under the head 'Non-Current Assets' while preparing the Balance Sheet of a company?

Which of the following items are recorded in the Profit & Loss Appropriation Account of a partnership firm?

Which of the following item is considered as Cash Equivalents?

Whichof thefollowing is transferredto RealisationAccount :

Which of the following item is not considered as Cash Equivalents?

Which of the following is the objective of comparative Statements?

Which of the following is shown under Financing Activity?

Which of the following is source of cash?

Which of the following is part of Cash and Cash Equivalents?

Which of the following is not under the heading 'Share Capital' in a Balance Sheet :

Which of the following is not true in relation to goodwill?

Which of the following is not transferred to Realisation Account ?

Which of the following is not true in relation to goodwill ?

Which of the following is not the mode of dissolution of the firm ?

Which of the following is not shown is not shown as Non-Current Liabilieties ?

Which of the following is not Short-term Borrowings ?

Which of the following is not required to be prepared under the Companies Act

Which of the following is not part of cash Equivalents?

Which of the following is not part of Cash and Cash Equivalents?

Which of the following is not application of cash?

Which of the following is not application of cash

Which of the following is not Non-Current Assest

Which of the following is not operating expenses?

Which of the following is not an feature of partnership?

Which of the following is not an essential feature of partnership ?

Which of the following is not an advantage of computerised accounting system a) Efficient record keeping b) Ensures effective control over the system. c) Generation of reports and information in fixed format d) Economy in the processing of accounting data.

Which of the following is not added as non - cash Expense?

Which of the following is not added as Non-Cash Expense?

Which of the following is not a Non - Cash Transaction?

Which of the following is not a Non-Cash Transaction ?

Which of the following is not a method of valuing goodwill?

Which of the following is not a method of valuing goodwill ?

Which of the following is not a 'Long-term Borrowings' ?

Which of the following is not a limitationof analysis of financial statements ?

Which of the following is not a limitation of Financial Statement Analysis ?

Which ofthe following is not a from of persenting financial analysis :

Which of the followingis not a characteristic of Bearer Debentures ?

Which of the following is device of comparative statements ?

Which of the following is incorrect about the statement of cash flows?

Which of the following is considered as Cash Equivalents?

Which of the following is an example of cash flow from Operating Activities?

Whichof the following in nottransferred toRealisationAccount:

Which of the following factors decreases the value of goodwill?

Which of the following factors decreases the value of goodwill ?

Which objective is not fulfilled by comparative Statement of Profit & Loss :

Which objective is not fulfilled by comparative financial statement :

Which item is assumed to be 100 while preparing Common-Size Statement of Profit and Loss?

Which Companies are exempted from creating 'Debenture Redemption Reserve' by the SEBI?