Which of the following is not the main objective of accounting? A] Systematic recording of transactions B] Ascertaining profit or loss C] Ascertainment of financial position D] Solving tax disputes with tax authorities

Which of the following is not the main objective of accounting?
A] Systematic recording of transactions
B] Ascertaining profit or loss
C] Ascertainment of financial position
D] Solving tax disputes with tax authorities
by

1 Answer

Answer :

D] Solving tax disputes with tax authorities
by

Related questions

Financial accounting is concerned with – a) Recording of business expenses and revenue b) Recording of costs of products and services c) Recording of day to day business transactions d) None of the above

Description : Financial accounting is concerned with – a) Recording of business expenses and revenue b) Recording of costs of products and services c) Recording of day to day business transactions d) None of the above

Last Answer : c) Recording of day to day business transactions

Goodwill arising on amalgamation is to be A. Retained in the books of the transferee company B. Amortised to income on a systematic basis normally five years C. Adjusted against reserves or profit and loss account balance D. All of the above

Description : Goodwill arising on amalgamation is to be A. Retained in the books of the transferee company B. Amortised to income on a systematic basis normally five years C. Adjusted against reserves or profit and loss account balance D. All of the above

Last Answer : B. Amortised to income on a systematic basis normally five years

Which of these is not an objective of Cost Accounting? (a) Ascertainment of Cost (b) Determination of Selling Price (c) Cost Control and Cost reduction (d) Assisting Shareholders in decision making

Description : Which of these is not an objective of Cost Accounting? (a) Ascertainment of Cost (b) Determination of Selling Price (c) Cost Control and Cost reduction (d) Assisting Shareholders in decision making

Last Answer : (d) Assisting Shareholders in decision making

Profit and loss is calculated at the stage of A] Recording B] Posting C] Classifying D] Summarising

Description : Profit and loss is calculated at the stage of A] Recording B] Posting C] Classifying D] Summarising

Last Answer : D] Summarising

Which one of the following branches of accounting primarily deals with processing and presenting of accounting data for internal use? A. Financial accounting B. Tax accounting C. Management accounting D. Inflation accounting

Description : Which one of the following branches of accounting primarily deals with processing and presenting of accounting data for internal use? A. Financial accounting B. Tax accounting C. Management accounting D. Inflation accounting

Last Answer : C. Management accounting

Management accounting involves A. Preparation of financial statements B. Analysis and interpretation of data C. Recording of transactions D. None of the above

Description : Management accounting involves A. Preparation of financial statements B. Analysis and interpretation of data C. Recording of transactions D. None of the above

Last Answer : B. Analysis and interpretation of data

Interpretation means (a) Explanation of meaning and significance of the data in Financial Statements. (b) Concerned with preparation and presentation of classified data (c) Systematic analysis of recorded data (d) Methodical classification of data given in Financial Statements

Description : Interpretation means (a) Explanation of meaning and significance of the data in Financial Statements. (b) Concerned with preparation and presentation of classified data (c) Systematic analysis of recorded data (d) Methodical classification of data given in Financial Statements

Last Answer : (a) Explanation of meaning and significance of the data in Financial Statements.

Matching concept means A] Assets = capital + liabilities B] Transactions recorded at accrual concept C] Anticipate no profit but recognize all losses D] Expenses should be matched with the revenue of the period.Matching concept means A] Assets = capital + liabilities B] Transactions recorded at accrual concept C] Anticipate no profit but recognize all losses D] Expenses should be matched with the revenue of the period.

Description : Matching concept means A] Assets = capital + liabilities B] Transactions recorded at accrual concept C] Anticipate no profit but recognize all losses D] Expenses should be matched with the revenue of the period.

Last Answer : D] Expenses should be matched with the revenue of the period.

In case of a limited company, the term financial statements includes A. Profit and loss and balance sheet B. Profit and loss account, profit and loss appropriation account and balance sheet C. Balance sheet D. None of the above

Description : In case of a limited company, the term financial statements includes A. Profit and loss and balance sheet B. Profit and loss account, profit and loss appropriation account and balance sheet C. Balance sheet D. None of the above

Last Answer : B. Profit and loss account, profit and loss appropriation account and balance sheet C

In the case of an audit of financial statements, which of the following would not be a valid criterion in ascertaining the degree of correspondence between assertions and established criteria? a. International Accounting Standards b. Philippine Accounting Standards c. Philippine Standards on Auditing d. Philippine Financial Reporting Standards

Description : In the case of an audit of financial statements, which of the following would not be a valid criterion in ascertaining the degree of correspondence between assertions and established ... . Philippine Accounting Standards c. Philippine Standards on Auditing d. Philippine Financial Reporting Standards

Last Answer : Philippine Standards on Auditing

Provision for Income Tax is _____ A. Debited to P & L Appropriation A/c B. Debited to Profit and Loss A/c C. Debited to Treading A/c D. Credited to P & L Appropriation a/c

Description : Provision for Income Tax is _____ A. Debited to P & L Appropriation A/c B. Debited to Profit and Loss A/c C. Debited to Treading A/c D. Credited to P & L Appropriation a/c

Last Answer : B. Debited to Profit and Loss A/c

Which of the following phrases is not relevant to describe the meaning of research as a process? (A) Systematic Activity (B) Objective Observation (C) Trial and Error (D) Problem Solving

Description : Which of the following phrases is not relevant to describe the meaning of research as a process? (A) Systematic Activity (B) Objective Observation (C) Trial and Error (D) Problem Solving 

Last Answer : (B) Objective Observation

The process of recording financial data upto trial balance is a) Book keeping b) Classifying c) Summarising d) Analyzing

Description : The process of recording financial data upto trial balance is a) Book keeping b) Classifying c) Summarising d) Analyzing

Last Answer : a) Book keeping

Which of the following is not the objective of Competition act 2002? A. Prohibition of abuse of dominant position B. Prohibition of restrictive Trade practives C. Prohibition of anti-competitive Agreement D. Regulation of combinations

Description : Which of the following is not the objective of Competition act 2002? A. Prohibition of abuse of dominant position B. Prohibition of restrictive Trade practives C. Prohibition of anti-competitive Agreement D. Regulation of combinations

Last Answer : B. Prohibition of restrictive Trade practives

Double entry system is used in which type of accounting a) Cost b)Financial c) Management d) All

Description : Double entry system is used in which type of accounting a) Cost b)Financial c) Management d) All

Last Answer : b)Financial

The nature of financial accounting is: a) Historical b) Forward looking c) Analytical d) Social

Description : The nature of financial accounting is: a) Historical b) Forward looking c) Analytical d) Social

Last Answer : a) Historical

If nothing is given in the financial statements aboutthe three accounting assumptions then it is to be treated as it a) Is assumed that it is not followed b) Is assumed to be followed c) Is assumed to be followed to some extent d) None of the above

Description : If nothing is given in the financial statements aboutthe three accounting assumptions then it is to be treated as it a) Is assumed that it is not followed b) Is assumed to be followed c) Is assumed to be followed to some extent d) None of the above

Last Answer : b) Is assumed to be followed

is root cause for financial accounting (a) Stewardship accounting (b) Social accounting (c) Management accounting (d) Human resource accounting

Description : is root cause for financial accounting (a) Stewardship accounting (b) Social accounting (c) Management accounting (d) Human resource accounting

Last Answer : (a) Stewardship accounting

The direct advantages of accounting do not include A. Preparation of financial statements B. Comparison of results C. Competitive advantage D. Information to interested groups

Description : The direct advantages of accounting do not include A. Preparation of financial statements B. Comparison of results C. Competitive advantage D. Information to interested groups

Last Answer : C. Competitive advantage

Under the Net worth method, the basis for ascertaining profit or loss is the difference between ________ 

Description : Under the Net worth method, the basis for ascertaining profit or loss is the difference between ________ 

Last Answer : Under the Net worth method, the basis for ascertaining profit or loss is the difference between ________ ... dates (d) Net assets on two dates

Which of the following is an example of an error? a. Defalcation b. Misapplication of accounting policies. c. Suppression or omission of the effects of transactions from the records or documents. d. Recording of transactions without substance

Description : Which of the following is an example of an error? a. Defalcation b. Misapplication of accounting policies. c. Suppression or omission of the effects of transactions from the records or documents. d. Recording of transactions without substance

Last Answer : Misapplication of accounting policies.

Management accounting is related with (i) The problem of choice making (ii) Recording of transactions (iii) Cause and effect relationships A. (i) and (ii) B. (ii) and (iii) C. (i) and (iii) D. All are false

Description : Management accounting is related with (i) The problem of choice making (ii) Recording of transactions (iii) Cause and effect relationships A. (i) and (ii) B. (ii) and (iii) C. (i) and (iii) D. All are false

Last Answer : C. (i) and (iii)

The overall objective of forensic auditing is to a. Attest to the efficiency with which resources are employed b. Assist members of the organization in the effective discharge of their responsibilities c. Unearth the truth and provide evidence in legal and financial disputes d. Provide assurance that financial data have been accurately recorded

Description : The overall objective of forensic auditing is to a. Attest to the efficiency with which resources are employed b. Assist members of the organization in the effective discharge of their ... in legal and financial disputes d. Provide assurance that financial data have been accurately recorded

Last Answer : Unearth the truth and provide evidence in legal and financial disputes

The return on investment (ROI) may be calculated as A. Net profit before interest, tax and dividend / Capital employed B. Net profit after interest, tax and dividend / Shareholder's fund C. ( Net profit - preference dividend )/ No. of equity shares D. Return on Investment / Net profit ratio

Description : The return on investment (ROI) may be calculated as A. Net profit before interest, tax and dividend / Capital employed B. Net profit after interest, tax and dividend / Shareholder's fund C. ( Net profit - preference dividend )/ No. of equity shares D. Return on Investment / Net profit ratio

Last Answer : A. Net profit before interest, tax and dividend / Capital employed

Corporate dividend tax is _______ A. Computed on Net profit B. Computed on Share Capital C. Computed on Goss Profit D. Computed on Dividend paid

Description : Corporate dividend tax is _______ A. Computed on Net profit B. Computed on Share Capital C. Computed on Goss Profit D. Computed on Dividend paid

Last Answer : D. Computed on Dividend paid

Which one is not the main objective of Fiscal Policy in India? A. To increase liquidity in economy B. To promote price stability C. To minimize the inequalities of income and wealth D. To promote employment opportunities

Description : Which one is not the main objective of Fiscal Policy in India? A. To increase liquidity in economy B. To promote price stability C. To minimize the inequalities of income and wealth D. To promote employment opportunities

Last Answer : A. To increase liquidity in economy

Which of the following is not likely a threat to independence? a. Acting as an advocate on behalf of an assurance client in litigation or in resolving disputes with third parties. b. Long association of a senior member of the assurance team with the assurance client. c. Threat of replacement over a disagreement with the application of an accounting principle. d. Owning immaterial indirect financial interest in an audit client.

Description : Which of the following is not likely a threat to independence? a. Acting as an advocate on behalf of an assurance client in litigation or in resolving disputes with third parties. b. ... the application of an accounting principle. d. Owning immaterial indirect financial interest in an audit client.

Last Answer : Owning immaterial indirect financial interest in an audit client.

An investor, while reading the financial statements of Star Corporation, learned that the statements are accompanied by an unqualified auditor's report. From this the investor may conclude that: a. The auditor has ascertained that Silver's financial statements have been prepared accurately. b. The auditor is satisfied that Silver is operationally efficient. c. Any disputes over significant accounting issues have been settled to the auditor's satisfaction. d. Informative disclosures in the financial statements but not necessarily in the notes to financial statements are to be regarded as reasonably adequate

Description : An investor, while reading the financial statements of Star Corporation, learned that the statements are accompanied by an unqualified auditor's report. From this the investor may conclude that: a ... but not necessarily in the notes to financial statements are to be regarded as reasonably adequate

Last Answer : Any disputes over significant accounting issues have been settled to the auditor's satisfaction.

Which of the following is not likely a threat to independence? a. Acting as an advocate on behalf of an assurance client in litigation or in resolving disputes with third parties. b. Long association of a senior member of the assurance team with the assurance client. c. Threat of replacement over a disagreement with the application of an accounting principle. d. Owning immaterial indirect financial interest in an audit client.

Description : Which of the following is not likely a threat to independence? a. Acting as an advocate on behalf of an assurance client in litigation or in resolving disputes with third parties. b. ... the application of an accounting principle. d. Owning immaterial indirect financial interest in an audit client.

Last Answer : Owning immaterial indirect financial interest in an audit client.

What type of pricing objective might an organisation set if it was already in a favourable financial position and desired nothing more? A)Return on investment B)Cash flow C)Profit D)Status quo E)Survival

Description : What type of pricing objective might an organisation set if it was already in a favourable financial position and desired nothing more? A)Return on investment B)Cash flow C)Profit D)Status quo E)Survival

Last Answer : D)Status quo

Change in the capital A/c of proprietor may occur due to ______ a) Profit earned b) Loss incurred c) Capital Introduced d)All of theabove

Description : Change in the capital A/c of proprietor may occur due to ______ a) Profit earned b) Loss incurred c) Capital Introduced d)All of theabove

Last Answer : d)All of theabove

The profit on the reissue of forfeited share are transferred to A. Capital A/ c B. Capital Reserve C. Profit & Loss A/c D. General Issues

Description : The profit on the reissue of forfeited share are transferred to A. Capital A/ c B. Capital Reserve C. Profit & Loss A/c D. General Issues

Last Answer : B. Capital Reserve

IAll direct & indirect expenses related to business are charged: a)Profit and loss account b)Trading account c)Trading account Profit and Loss account d)Directly to Balance sheet

Description : All direct & indirect expenses related to business are charged: a)Profit and loss account b)Trading account c)Trading account Profit and Loss account d)Directly to Balance sheet

Last Answer : c)Trading account Profit and Loss account

If amalgamation is in the ..............., the General Reserve or Profit and Loss A/c balance will not be shown in the balance sheet. (A)Form of Merger (B)Form of purchase (C)Net assets method (D)Consideration method

Description : If amalgamation is in the ..............., the General Reserve or Profit and Loss A/c balance will not be shown in the balance sheet. (A)Form of Merger (B)Form of purchase (C)Net assets method (D)Consideration method

Last Answer : (B)Form of purchase

Reporting currency is the currency used _________ (a) In recording the financial transactions (b) In presenting the financial statements

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

Reporting currency is the currency used in recording the financial transactions.

Description : Reporting currency is the currency used in recording the financial transactions.

Last Answer : FALSE

Which of the following statements is not correct? A. For the purpose of Funds Flow Statement, the term 'fund ' generally refers to net working capital B. Funds flow is a wider concept than the Cash flow C. The flow of funds must arise due to external and not internal transactions of the business D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds

Description : Which of the following statements is not correct? A. For the purpose of Funds Flow Statement, the term 'fund ' generally refers to net working capital B. Funds flow is a wider concept than ... business D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds

Last Answer : D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds

Operational audit differs in many ways from an audit of financial statements. Which of the following is the best example of one othese differences? a. The usual audit of the financial statement covers four basic statements, whereas operational audit is usually limited either the statement of financial position or the income statement. b. Operational audit do not necessarily result in the preparation of a report. c. The operational audit deals with pre-tax income. d. The boundaries of an operational audit are often drawn from an organization chart and are not limited to a single accounting period.f

Description : Operational audit differs in many ways from an audit of financial statements. Which of the following is the best example of one of these differences? a. The usual audit of the financial statement ... audit are often drawn from an organization chart and are not limited to a single accounting period.

Last Answer : The boundaries of an operational audit are often drawn from an organization chart and are not limited to a single accounting period.

Disclose accounting information a) Balance sheet b) Trading account c) Profit and Loss Account d) 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

condensing output data to exhibit specific information is a. calculating b. recording c. merging d. summarizing

Description : condensing output data to exhibit specific information is a. calculating b. recording c. merging d. summarizing

Last Answer : d. summarizing

The underlying conditions that create demand by users for reliable information include the following except: a. Decisions are not time-sensitive. b. Transactions that are numerous and complex. c. Users separated from accounting records by distance and time. d. Financial decisions that are important to investors and users

Description : The underlying conditions that create demand by users for reliable information include the following except: a. Decisions are not time-sensitive. b. Transactions that are numerous and complex. c. ... records by distance and time. d. Financial decisions that are important to investors and users

Last Answer : Decisions are not time-sensitive

Generally accepted accounting principles (GAAP) are distinguished from generally accepted auditing standards (GAAS) in that: a. GAAP are the principles auditors follow when conducting an audit, while GAAS are the standards for presentation of financial statements and underlying transactions. b. GAAP are the principles for presentation of financial statements and underlying transactions, while GAAS are the standards that the auditors should follow when conducting an audit. c. When GAAP are violated, sufficiently strong GAAS may make up for most GAAP deficiencies. d. GAAP are promulgated by the SEC, while GAAS are promulgated by the PFRC

Description : Generally accepted accounting principles (GAAP) are distinguished from generally accepted auditing standards (GAAS) in that: a. GAAP are the principles auditors follow when conducting an audit, while GAAS ... deficiencies. d. GAAP are promulgated by the SEC, while GAAS are promulgated by the PFRC

Last Answer : GAAP are the principles for presentation of financial statements and underlying transactions, while GAAS are the standards that the auditors should follow when conducting an audit.

The essence of the attest function is to a. Detect fraud. b. Examine individual transactions so that the auditor can certify as to their validity. c. Determine whether the client's financial statements are fairly stated. d. Ensure the consistent application of correct accounting procedures.

Description : The essence of the attest function is to a. Detect fraud. b. Examine individual transactions so that the auditor can certify as to their validity. c. Determine whether the client's financial statements are fairly stated. d. Ensure the consistent application of correct accounting procedures.

Last Answer : Determine whether the client's financial statements are fairly stated.

Transactions with related parties are important to the auditors because they will be disclosed in the financial statements if material. Generally accepted accounting principles would not require disclosure of a. Loans to officers during the year which had been repaid before the balance sheet date. b. The nature of the related-party relationship. c. A description of transactions, including peso amounts. d. The amounts due from and to related parties

Description : Transactions with related parties are important to the auditors because they will be disclosed in the financial statements if material. Generally accepted accounting principles would not require disclosure of ... transactions, including peso amounts. d. The amounts due from and to related parties

Last Answer : Loans to officers during the year which had been repaid before the balance sheet date

Which of the following factors most likely would influence an auditor’s determination of the auditability of an entity’s financial statements? a. The complexity of the accounting system. b. The existence of related-party transactions. c. The adequacy of the accounting records. d. The operating effectiveness of control procedures.

Description : Which of the following factors most likely would influence an auditor's determination of the auditability of an entity's financial statements? a. The complexity of the accounting system. b. The ... c. The adequacy of the accounting records. d. The operating effectiveness of control procedures.

Last Answer : The adequacy of the accounting records.

The basic function of management accounting is to: A. record all business transactions B. interpret the financial data C. assist the management in performing its functions effectively D. None of the above

Description : The basic function of management accounting is to: A. record all business transactions B. interpret the financial data C. assist the management in performing its functions effectively D. None of the above

Last Answer : C. assist the management in performing its functions effectively

Which of the following printers are you sure will not to use if your objective is to print on multi carbon forms? a. Daisy wheel b. Dot matrix c. Laser

Description : Which of the following printers are you sure will not to use if your objective is to print on multi carbon forms? a. Daisy wheel b. Dot matrix c. Laser

Last Answer : c. Laser

In the Indian context, the emphasis on import substitution often run counter to --------- A. the objective of managerial development B. the objective of Sports develpment C. the objective of Skill develpment D. the objective of Technological develpment

Description : In the Indian context, the emphasis on import substitution often run counter to --------- A. the objective of managerial development B. the objective of Sports develpment C. the objective of Skill develpment D. the objective of Technological develpment

Last Answer : D. the objective of Technological develpment