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This section includes 7 InterviewSolutions, each offering curated multiple-choice questions to sharpen your Current Affairs knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
A financial statement is an organised _______ of data according to logical and accounting procedure. A. process B. interpretation C. collection D. publishing |
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Answer» Correct option is C. collection |
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| 2. |
Profit and loss account is also called as __________ statement. A. incomeB. expenses C. fund flow D. cash flow |
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Answer» Correct option is A. income |
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| 3. |
The most powerful computer is(a) Super Computer(b) Micro Computer(c) Laptop(d) None of these |
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Answer» The most powerful computer is Super Computer |
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| 4. |
In common size statement which item of income statement is calculated is percentage(a) Total Profit(b) Net Profit(c) Sales(d) Net Income |
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Answer» A common-size income statement is an income statement in calculated is Total Profit percentage |
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| 5. |
Cash flow from operating activities will decrease due to :- (A) Increase in current Asset (B) Decrease in current Liability (C) Neither of the two (D) Both A and B |
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Answer» Correct option is: (D) Both A and B |
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| 6. |
Cash flow statement is related to :- (A) A.S.-3 (B) A.S.-6 (C) A.S.-9 (D) A.S.-12 |
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Answer» Correct option is: (A) A.S.-3 |
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| 7. |
The meaning of data processing(a) Collection of Data(b) Working system of computer(c) Preparing information for business use(d) None of these |
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Answer» The meaning of data processing is Preparing information for business use. |
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| 8. |
What is shown by income statement.(a) Accuracy of book of accounts(b) Profit or loss of a certian period(c) Balance of cash book(d) None of these |
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Answer» (b) Profit or loss of a certian period |
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| 9. |
Financial statements disclose only __________ items A. monetary B. non-monetary C. monetary and non-monetary D. none of the above |
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Answer» Correct option is A. monetary |
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| 10. |
Balance sheet provides information about financial position of the enterprise.(a) At a point of time(b) over a period of time (c) for a period of time(d) None of these |
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Answer» (a) At a point of time |
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| 11. |
If current ratio is 2.5 times and current liabilities are Rs. 40,000 then current assets are (a) 1,00,000(b) 2,00,000 (c) 1,50,000(d) Rs. 4,3,00,000 |
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Answer» Current assets = 1,00,000. |
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| 12. |
Which of the following is not operating expenses(a) Advrtisement(b) Salaries(c) Loss on sale of car(d) Distribution |
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Answer» Loss on sale of car is not operating expenses |
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| 13. |
Financial statements disclose(a) Monetary information(b) Qualitative information(c) Qualitative information(d) None of these |
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Answer» Financial statements disclose Qualitative information |
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| 14. |
Which of the following will be placed in the credit column of the trial balance? (a) Purchases (b) Accounts payable (c) Salaries payable (d) None |
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Answer» Answer: (d) None |
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| 15. |
Goods are returned by customers are recorded in ……(a) Sales book (b) Sales returns book (c) Journal proper (d) Purchase book |
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Answer» (b) Sales returns book |
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| 16. |
The financial statement of a business enterprise include :- (A) Balance Sheet (B) Profit and Loss statement (C) Cash Flow Statement (D) All of the above |
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Answer» Correct option is: (D) All of the above |
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| 17. |
Balance sheet provides information about financial position of the enterprise :- (A) At a point of time (B) Over a period of time (C) For a period of time (D) None the above |
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Answer» Correct option is: (A) At a point of time |
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| 18. |
The most commonly used tools for financial analysis are :- (A) Comparative statement (B) Common-size statement (C) Accounting Ratios (D) All of the above |
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Answer» Correct option is: (D) All of the above |
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| 19. |
Which of the following shows the actual fianacial postion of an enterprise.(a) fund flow(b) Balance sheet(c) Profit & loss A/C(d) None of these |
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Answer» (d) None of these |
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| 20. |
If total assets of a firm are Rs. 10,00,000 and its non-current assets are Rs. 6,00,000 what will be the percentage of current assets on total asset? (a) 60%(b) 50%(c) 40%(d) 30% |
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Answer» 34% percentage of current assets on total asset. |
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| 21. |
Current Ratio Includes : (A) Stock (B) Debtors (C) Cash (D) All of these |
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Answer» (D) All of these |
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| 22. |
Gaining Ratio is calculated :(A) At the Time of Admission of a New Partner(B) At the Time of Retirement of a Partner(C) On the Dissolution of a Partnership Firm(D) None of these |
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Answer» (B) At the Time of Retirement of a Partner |
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| 23. |
Partnership Agreement is called : (A) Prospectus (B) Articles of Association (C) Principles of Partnership (D) Partnership Deed |
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Answer» (D) Partnership Deed |
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| 24. |
Write a brief note on MOT with its three roles? |
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Answer» MOT:- Ministry of Tourism is the nodal agency for the formation of national policies and programmes and for the co-ordination of activities of various central govt. agencies., state govt. and the private sector for the development and promotion of tourism in the country. Role of the Ministry of Tourism 1. All policy matters 2. Investment facilitation 3. Planning 4. Infrastructure and product development 5. Human resource development 6. Publicity & Marketing 7. Research, Analysis, monitoring and evaluation 8. International co-operation and external assistance |
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| 25. |
If sales Rs. 4,00,000 and profit is 25% on cost then gross profit ratio will be(a) 20%(b) 25%(c) 30%(d) 35% |
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Answer» If sales Rs. 4,00,000 and profit is 25% on cost then gross profit ratio will be 20% |
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| 26. |
Read the following Arun is appointed as Accountant in a leading company manufacturing consumer products. For all these years he served as an accountant in a partnership firm. He come across a company’s Balance sheet and he find to it difficult to understand which item will come in the balance sheet under major head and sub head. He took the format of a balance sheet as per schedule III of the companies Act 2013. He come across some items. You are required to inform him the major heads and sub heads to enter the items in the company’s balance sheet. Answer the following questions.1. The Long term borrowings of the company will appear under the major head - -------------- a) Non -current liabilities b) current liabilities c) shareholders’ fundsd)other non-current liabilities2. The debentures will appear under sub head ------------- a) long term borrowings b) long term provisions c) other long term liabilities d) deferred tax liabilities3. Goodwill will appear under the sub head________ a) Intangible assets b) Tangible assets c) Fixed assets d) Noncurrent assets4. Current investments will come under the major head_______________ a)current assets b) fixed assets c) tangible assets d) intangible assets |
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Answer» 1. a) Non -current liabilities 2.a) long term borrowings 3. a) Intangible assets 4. a)current assets |
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| 27. |
Following are Included in Cash Equivalent : (A) Treasury Bill (B) Bank Deposits of Short Maturity Period (C) Trade Bill (D) All of these |
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Answer» (D) All of these |
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| 28. |
Stock Turnover Ratio is(a) Liquidity Ratio(b) Profitability Ratio(c) Activity Ratio(d) None of these |
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Answer» Stock Turnover Ratio is Activity Ratio. |
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| 29. |
There is a ________ of sugar in Europe at the moment. A) want B) need C) requirement D) omission E) shortage |
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Answer» Correct option is E) shortage |
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| 30. |
Operating Ratio is : (A) Profitability Ratio (B) Activity Ratio (C) Solvency Ratio (D) None of these |
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Answer» (A) Profitability Ratio |
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| 31. |
Rate of Interest on Debentures is : (A) 12 % P.A. (B) 20 % P.A. (C) Fixed Rate (D) 15 % P.A |
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Answer» Rate of Interest on Debentures is Fixed Rate. |
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| 32. |
Interest on Advance given to the Firm by Partners is : (A) An Appropriation (B) A Gain (C) A Charge (D) None of these |
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Answer» Interest on Advance given to the Firm by Partners is a Charge. |
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| 33. |
What is the classification of foreign trade? |
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Answer» Types of Foreign Trade: 1. Import Trade: Import trade means buying goods from a foreign country for domestic use. 2. Export Trade: Export trade means the sale of domestic goods to foreign countries. 3. Entrepot Trade: Entrepot trade means importing of goods from one country and exporting the same to foreign countries. |
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| 34. |
What is Trend Analysis? |
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Answer» It is a financial statement analysis method that determines the direction upwards or downwards and involves computation of percentage relationship that each statement items bear to the same item in the base year. |
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| 35. |
State the meaning of retail trade? |
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Answer» Retail trade deals with the distribution of goods in small quantities to the end consumers. It represents the final stage in the distribution where goods are transferred from the hands of manufacturers or wholesalers to the users. If the sales are made directly to the end consumers it will be considered as retailing. |
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| 36. |
Write any two assets which are shown in fixed assets. |
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Answer» Building, machinery. |
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| 37. |
This organisation is useful to the farmers in a village. It helps in the purpose of cultivation. Identify the form of organisation and briefly explain about it? |
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Answer» This form of organisation is ‘co-operative farming societies’. The societies in a village collect their land together for the purpose of cultivation, purchase the inputs for cultivation and market the crops for the sales. |
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| 38. |
State any two types of debentures. |
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Answer» 1. Registered debentures 2. Unregistered debentures. |
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| 39. |
Mention the importance of banking service? |
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Answer» Banking service is the nerve center of industry and commerce in a country. It plays a vital role by providing the money required for their regular functioning and development. There are many types of banks rendering different types of services. |
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| 40. |
What is realization account? |
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Answer» Realisation Account is an account prepared at the time of dissolution of a firm to find the P/L on the realisation of Assets and payment of Liabilities. |
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| 41. |
What do you understand by Passport ? |
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Answer» Passport is an official document issued by the government of a country to its citizens as a proof that one is a resident of the country. Every passport has a validity period and expiration dates. A citizen can travel out of his/ her country only when he/ she posses a valid Passport. The validity of the passport is also necessary when the tourist or traveller is travelling back to his / her own country. |
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| 42. |
“First impression is the last impression” elaborate this statement with examples? |
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Answer» First impression becomes very important because when we meet somebody for the first time without knowing much about other in totality create an idea about any person. Attire: Attire means the way we dress up. This show our attitude towards life. It is very important to we wear clothes which convey positive about us. Grooming: The second important area which helps you to create a first impression is grooming. Which means to have a neat and tidy appearance. It is imperative to take care of your overall appearance. |
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| 43. |
Is banking an example of service business? Briefly explain by giving example? |
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Answer» Yes, Banking is a service industry. As it provides the financial service to all other sectors of economy 1. It Provide value to the customer but not in any physical form of goods. 2. It offers value using skill, consultancy, and expertise of human resource. or any other valid point (½ mark for Yes and 1 and ½ mark for explanation) |
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| 44. |
What do you understand by Custom/Traditions ? |
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Answer» Custom (also called a tradition) is anything which lots of people do, and have done for a long time. A custom is more about practices, while culture is more about ideas or a group of customs. The native life and customs of people is an attraction because every part of the worlds has its own set of lifestyle in form of rituals, daily practices, food, religious beliefs etc. Example- Indian wedding, rituals performed in Indian temples etc. attracts tourists. |
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| 45. |
Define book – keeping? |
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Answer» “Book-keeping is an art of recording business dealings in a set of books”. – J.R. Batli boi. |
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| 46. |
What is meant by journalising? |
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Answer» Record of business transactions in the journal is known as Journal entry. The process of recording the transactions in journal is called as journalising. |
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| 47. |
Write any five advantages of computerised accounting system? |
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Answer» \(\bullet\) Faster Processing: Computers require far less time than human beings in performing a particular task. Therefore, accounting data are processed faster using a computerised accounting system. \(\bullet\) Accurate Information: There is less space for error because only one account entry is needed for each transaction unlike repeated posting of the same accounting data in manual system. \(\bullet\) Reliability: Computer systems are immune to boredom, tiredness or fatigue. Therefore, these can perform repetitive functions effectively and are highly reliable. \(\bullet\) Easy Availability of Information: The data are easily available and can be communicated to different users at the same time. \(\bullet\) Up-to-date Information: Account balances will always be up-to-date since the records are automatically updated as and when accounting data are entered or stored. |
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| 48. |
What are the components of computerised accounting system? |
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Answer» 1. Hardware 2. Software 3. People 4. Procedure 5. Data and 6. Connectivity |
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| 49. |
Write any two objectives of providing depreciation? |
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Answer» 1. To find out the true profit or loss. 2. To present the true fair view of financial position. |
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| 50. |
The word convention refers ……(a) Traditions (b) Trade (c) Business(d) Accounting |
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Answer» (a) Traditions |
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