Description : Which one of the following is usually prepared only at the end of a company's annual accounting period? a. Preparing financial statements b. Journalizing and posting adjusting entries c. Journalizing and posting closing entries d. Preparing an adjusted trial balance
Last Answer : c. Journalizing and posting closing entries
Description : When ratios are calculated from the financial statements of one year, it is known as --------------------- a) Horizontal analysis b) Vertiacal analysis c) Internal Analysis d) External analysis
Last Answer : b) Vertiacal analysis
Description : hen financial statements for a number of years are reviewed and analysed, the analysis is known as --------------------- a) Vertical nalysis b) Internal analysis c) Horizontal analysis d) External analysis
Last Answer : c) Horizontal analysis
Description : Horizontal Analysis shows the comparison of data for several years against a chosen ---------------- year. a) Base year C. Financial year b) Previous year D. Calender year
Last Answer : a) Base year
Description : Closing entries a. are prepared before the financial statements. b. reduce the number of permanent accounts. c. cause the revenue and expense accounts to have zero balances. d. summarize the activity in every account.
Last Answer : c. cause the revenue and expense accounts to have zero balances.
Description : Closing entries are journalized and posted a. before the financial statements are prepared. b. after the financial statements are prepared. c. at management's discretion. d. at the end of each interim accounting period.
Last Answer : b. after the financial statements are prepared.
Description : Closing entries are made a. in order to terminate the business as an operating entity. b. so that all assets, liabilities, and Stockholders' equity accounts will have zero balances when the ... ) and dividends to the retained earnings account. d. so that financial statements can be prepared.
Last Answer : c. in order to transfer net income (or loss) and dividends to the retained earnings account. unt.
Description : The statement prepared to disclose accounting information are known as----- a) Comparative statements b) Common size statements c) Financial statements d) None of the above
Last Answer : c) Financial statements
Description : Yard stick which measures relationship between two variables a) Financial statements b) Ratio c) Fund Flow analysis d) Cash flow analysis
Last Answer : b) Ratio
Description : ------------- gives a diagnosis of the profitability and financial position a) Analysis of financial statements b) Preparation of financial statements c) Construction of statements d) None of the above
Last Answer : a) Analysis of financial statements
Description : Vertical analysis is made to review and analyse the financial statements of -----------------accounting period. a) One B. Two C. Three D. Four
Last Answer : a) One
Description : Cash flow statements (based on AS-3) should be prepared and presented under------------------ method. a) Direct b) Indirect c) Permanence d) None of these
Last Answer : b) Indirect
Description : A ltd is a manufacturing company that has no production resource limitations for the foreseeable future. The Managing Director has asked the company mangers to coordinate the preparation of their budgets for the next financial year. In what order ... 5), (3), (2) (d) (4), (5), (3), (1), (2)
Last Answer : (b) (1), (5), (3), (4), (2)
Description : Vertical analysis is also known as ------------------ a) Dynamic analysis b) Static analysis c) External nalysis d) Internal analysis
Last Answer : b) Static analysis
Description : An essential tool of short term financial analysis a) Fund flow statement b) Statement of uses and application of funds c) Cash flow statement d) Ratio analysis
Last Answer : c) Cash flow statement
Description : Ratio analysis is a study of relationship among various --------------- factors in a business a) Operational b) Official c) Financial d) Others
Last Answer : c) Financial
Description : Powerful tool for analyzing financial statement is ---------- a) Trend analysis b) Ratio analysis c) Analysis d) Interpretation
Last Answer : b) Ratio analysis
Description : Afford full diagnosis of the profitability and financial position a) Preparation of Profit and Loss Account b) Balance Sheet c) Final Accounts d) Analysis of financial statement
Last Answer : d) Analysis of financial statement
Description : The term financial ananlysis include both --------- and interpretation a) Comparison b) Analysis c) Conclusion d) Constructions
Last Answer : b) Analysis
Description : Comparison of financial variables of a firm over a period of time is known as-------------- a) Comparative b) Common-size c) Trend analysis d) None of the above
Last Answer : c) Trend analysis
Description : ---------------- establishes the relationship of different individual items which same common items a) Common size statements b) Comparative statements c) Trend analysis d) Comparative Income Statement
Last Answer : a) Common size statements
Description : Comparative statements are a form of --------------------------- a) Horizontal analysis b) Vertical analysis c) Parellel analysis d) None of the above
Last Answer : a) Horizontal analysis
Description : The final step in the accounting cycle is to prepare a. closing entries. b. financial statements. c. a post-closing trial balance. d. adjusting entries.
Last Answer : c. a post-closing trial balance.
Description : Reporting currency is the currency used _________ (a) In recording the financial transactions (b) In presenting the financial statements
Last Answer : (b) In presenting the financial statements
Description : Disclose accounting information a) Balance sheet b) Trading account c) Profit and Loss Account d) Financial statements
Last Answer : d) Financial statements
Description : Financial Statements provide a summary of -------------------------- a) Accounts b) Assets c) Liabilities d) Expenses
Last Answer : a) Accounts
Description : The primary difference between the Proformas and annual reports is: a. Proformas report on product information; annual reports report on financial data. b. Proformas are projections of results for the ... report on financial data; annual reports report on product data. e. None of the above.
Last Answer : b. Proformas are projections of results for the upcoming year; annual reports are results from the previous year.
Description : The summarized balance sheet of Autolight Limited shows the balances of previous and current year of retained earnings Rs. 25,000 and Rs. 35,000. If dividend paid during the current year amounted to Rs. 5,000 then profit earned during ... (a) Rs. 5,000 (b) Rs. 55,000 (c) Rs. 15,000 (d) Rs. 65,000
Last Answer : (c) Rs. 15,000
Description : The summarized balance sheet of Rakesh udyog Limited shows the balances of previous and current year of provision for taxation Rs. 50,000 and Rs. 65,000. If taxed paid during the current year amounted to Rs. 70,000 then amount charge ... a) Rs. 55,000 (b) Rs. 85,000 (c) Rs. 45,000 (d) Rs. 1,85,000
Last Answer : (b) Rs. 85,000
Description : If a company is given credit terms of 2/10, n/30, it should a. hold off paying the bill until the end of the credit period, while investing the money at 10% annual interest during ... desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price.
Last Answer : b. pay within the discount period and recognize a savings.
Description : Stine Company purchased merchandise with an invoice price of $2,000 and credit terms of 2/10, n/30. Assuming a 360 day year, what is the implied annual interest rate inherent in the credit terms? a. 20% b. 24% c. 36% d. 72%
Last Answer : c. 36%
Description : In a perpetual inventory system, cost of goods sold is recorded a. on a daily basis. b. on a monthly basis. c. on an annual basis. d. with each sale.
Last Answer : d. with each sale.
Description : If a default is made in delivering the annual return to the Registrar , the company is likely to facea) Compulsory winding up by the tribunal. b) Voluntary winding by members. c) Voluntary winding up by creditors. d) None of the above
Last Answer : a) Compulsory winding up by the tribunal.
Description : A company's break even point is 6,000 units per annum. The selling price is Rs. 90 per unit and the variable cost is Rs. 40 per unit. What are the company's annual fixed costs? (a) Rs. 120 (b) Rs. 2,40,000
Last Answer : 5,40,000
Description : A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per unit is Rs. 5 and each unit sells for Rs. 15. Annual sales demand is 7,000 units. The breakeven point is: (a) 2,000 units (b) 3,000 units (c) 4,000 units (d) 6,000 units
Last Answer : (b) 3,000 units
Description : From the following information, calculate the extra cost of material by following EOQ: Annual consumption: = 45000 units Ordering cost per order: = Rs. 10 Carrying cost per unit per annum: = Rs. 10 Purchase price per unit = Rs. ... ) No saving (b) Rs. 2,00,000 (c) Rs. 2,22,010 (d) Rs. 2,990
Last Answer : (d) Rs. 2,990
Description : Calculate EOQ (approx.) from the following details: Annual Consumption: 24000 units Ordering cost: Rs. 10 per order Purchase price: Rs. 100 per unitCarrying cost: 5% (a) 310 (b) 400 (c) 290 (d) 300
Last Answer : (a) 310
Description : . A credit memorandum is prepared when a. an employee does a good job. b. goods are sold on credit. c. goods that were sold on credit are returned. d. customers refuse to pay their accounts.
Last Answer : c. goods that were sold on credit are returned.
Description : A post-closing trial balance should be prepared a. before closing entries are posted to the ledger accounts. b. after closing entries are posted to the ledger accounts. c. before adjusting entries are posted to the ledger accounts. d. only if an error in the accounts is detected.
Last Answer : b. after closing entries are posted to the ledger accounts.
Description : A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as: (a) Master budget (b) Zero base budget ((c) Functional budget (d) Flexible budget
Last Answer : (d) Flexible budget
Description : Q.61. CA Co manufactures a single product and has drawn up the following flexed budget for the year. 60% 70% 80% Rs Rs Rs Direct materials 120,000 140,000 160,000 Direct labour 90,000 105,000 120,000 Production ... activity? (a) Rs 330,300 (b) Rs 370,300 (c) Rs 373,300 (d) Rs 377,300
Last Answer : (b) Rs 370,300
Description : A statement prepared in the form of report a) Fund flow b) Cash flow c) Ratio d) Balance sheet
Last Answer : a) Fund flow
Description : Cash flow statement is prepared by taking the ------------- balance of cash a) Opening balance b) Closing balance c) Monthly balance d) Others
Last Answer : a) Opening balance
Description : ---------account is prepared to know funds from operation a) Profit & Loss appropriation account b) Profit and loss account c) Trading account d) Profit & Loss adjustment account
Last Answer : d) Profit & Loss adjustment account
Description : ABC analysis is an inventory control technique in which: (a) Inventory levels are maintained (b) Inventory is classified into A, B and C category with A being the highest quantity, lowest value. (c) ... A, B and C Category with A being the lowest quantity, highest value (d) Either b or c
Last Answer : (c) Inventory is classified into A, B and C Category with A being the lowest quantity, highest value
Description : Which of these is not a Material control technique: (a) ABC Analysis (b) Fixation of raw material levels (c) Maintaining stores ledger (d) Control over slow moving and non moving items
Last Answer : (c) Maintaining stores ledger
Description : A statement depicting the reasons for the change in cash position from one period to another a) Fund flow statement b) Statement of uses and application of funds c) Cash flow statement d) Ratio analysis
Last Answer : a) Fund flow statement
Description : The main aim of the ratio analysis is to help the ----------of the firm a) Owners b) Officials c) Departments d) Management
Last Answer : d) Management
Description : Comparison and interpretation of ratio is known as --------------------- a) Fund flow analysis b) Cash flow analysis c) Ratio analysis d) Trend analysis
Last Answer : c) Ratio analysis
Description : Ratios of different items for various periods are calculated and compared a) Common size b) Comparative c) Trend analysis d) Ratio analysis
Last Answer : d) Ratio analysis