Accounts Quizzes For FCI AG III Technical Phase II 2023 – 28st February

Q1. What does Closing stock in the trial balance imply?
(a) It is the adjustment made in opening stock.
(b) It is an adjustment made in Sales Alc.
(c) It is an adjustment made in Purchase Alc.
(d) It is an adjustment made in operating A/c
(e) None of the above

Q2. Recovery of bad debts is classified as __ expenditure/ Receipt
(a) Capital expenditure
(b) Revenue expenditure
(c) Capital receipt
(d) Revenue receipt
(e) Operating Expenditure

Q3.Financial statements are written records that convey the business activities and the _________
of a company.
(a) liquidity
(b) liability
(c) financial performance
(d) net worth
(e) none of the above

Q4.The ________ primarily focuses on a company’s revenues and expenses during a particular period.
(a) Balance sheet
(b) income statement
(c) cash flow statement
(d) cash flow analysis
(e) none of the above

Q5.Certain investments such as _______ tend to be exempt from income taxes.
(a) housing authority bonds
(b) corporate bonds
(c) savings bonds
(d) none
(e) all of the above

Q6. Income tax collected is used to fund ____ .
(a) public service
(b) pay government obligations
(c) both (a) and (b)
(d) none
(e) projects

Q7._______ is an objective examination and evaluation of the fifinancial statements of an organization.
(a) cost audit
(b) financial audit
(c) management audit
(d) both (a) and (b)
(e) none

Q8. _______ by the auditor is considered as a clean report by the company.
(a) Qualified report
(b) Disclaimer report
(c) Unqualified report
(d) Unqualified opinion
(e) both (c) and (d)

Q9. A agrees to sell narcotics to B.This is an example of ______.
(a) agreement
(b) contract
(c) illegal Contract
(d) valid contract
(e) none

Q10. Hard real time operating system has __ jitter than a soft real time operating system.
(a) less
(b) more
(c) equal
(d) Depending upon the task
(e) none of the mentioned

Solutions

S1.Ans.(c)
Sol. The closing stock is generally not recorded in the trial balance, however, if it appears, then it refers to the adjustment made in purchases by reducing it to the extent of the stock amount at the end of the period. In such cases, it should be shown in the balance sheet under current assets and it should not be credited to the trading account.

S2.Ans.(d)
Sol. Bad debts are generally classified as revenue expenditure hence the recovery of bad debts would be classified as revenue receipts and is credited to the profit and loss account.
S3.Ans.(c)
Sol. Financial statements are written records that convey the business activities and the financial performance of a company. These statements are often audited by government agencies, firms to ensure accuracy.
S4.Ans.(b)
Sol. The income statement primarily focuses on a company’s revenues and expenses during a particular period.It provides an overview of revenues, expenses, net income and earnings per share.
S5.Ans.(a)
Sol. Income taxes are a source of revenue for governments. Certain investments like housing authority bonds tend to be exempt from income taxes.
S6.Ans.(c)
Sol. Income tax is a type of tax that government’s impose on income generated by businesses and individuals within their jurisdiction. Income tax imposed and collected, us used to fund public services ,pay government services and provide goods for citizen.
S7.Ans.(b)
Sol. A financial audit us an objective examination and evaluation of the financial statements of an organization to make sure that the financial records are fair and accurate representation of the transactions.
S8.Ans.(e)
Sol. An unqualified opinion or report by the auditor is considered as a clean report by the company. This type of report indicates that the auditors are satisfied with the company’s financial reporting and are in compliance with governance principles and laws.
S9.Ans.(c)
Sol. An agreement or contract that leads to one or all the parties breaking a law or not confirming bro the norms of the society is deemed to be illegal by the court. A contract opposed to public policy is also illegal.
S10.Ans.(a)
Sol. Real-time operating system (RTOS) is an operating system (OS) for real-time applications that processes data and events that have critically defined time constraints. Key characteristic of an RTOS is the level of its consistency concerning the amount of time it takes to accept and complete an application’s task; the variability is ‘jitter’. A ‘hard’ real-time operating system (hard RTOS) has less jitter than a ‘soft’ real-time operating system.