Accounts Quizzes For FCI Phase 2 2022- 08th November

Q1. Net profit Rs 50000, Rent received Rs.5000, Gain on sale of Machine Rs.7000, Interest on Loan Rs.5000, Donation Rs 4000, Dividend on Investments Rs.3000. Calculate operating Profit?
(a) Rs 22000
(b) Rs 35000
(c) Rs 44000
(d) Rs 56000
(e) Rs 65000

Q2. Which type of Accounting principle is followed by the Indian Government?
(a) Double Entry system
(b) Single Entry system
(c) Transfer Entry system
(d) Periphery entry system
(e) None of the above

Q3. The government accounts are first administratively classified and then classified on basis of the nature of the transactions. Due to this government Overtrading in working capital is characterised by
(a) less cash invested in current assets
(b) overcapitalization of the company in comparison to sales volume
(c) a large amount of cash invested in current assets
(d) more cash invested in current assets.
(e) all of the above.

Q4. Which of the following statements about capital budgeting for a business is false?
(a) Cash flow timing is important.
(b) Existing investments within a project are not considered sunk costs.
(c) the cost of capital equals the required minimum rate of return.
(d) Capital budgeting is only applicable to asset replacement decisions.
(e) None of the above

Q5. Which type of auditor report does not exist?
(a) Audit report with an Emphasis of matter paragraph
(b) Unmodified opinion report
(c) Simple report
(d) Qualified report
(e) None of the above

Q6. What is the penalty for an individual or a company’s director who violates any of the provisions of sections 139 to 146?
(a) Imprisonment for up to six months and a fine of up to Rs. 50000 rupees.
(b) Imprisonment for a term of up to one year and a fine of up to Rs. 50000 rupees.
(c) Imprisonment for up to two months and a fine of up to Rs. 50000 rupees.
(d) Imprisonment for a term of up to six months and a fine of up to one lakh rupees.
(e) Imprisonment for a term of up to 2 years and a fine up to Rs 2,00,000.

Q7. Regardless of anything in the Code of Criminal Procedure, 1973, no court shall take cognizance of any offence punishable under section 138 except upon a written complaint made by the payee or, as the case may be, the holder in due course of the cheque, and such complaint is made of the date on which the cause of action arises under clause (c) of the proviso to section 138:
(a) Within three months
(b) Within two months
(c) Within one month
(d) Within fifteen days
(e) Within forty-five days

Q8. ________ is a certificate issued by an employer to his employees under the Income Tax Act. It attests to the amount of tax deducted by the employer from the employee’s salary.
(a) Form 16
(b) Form 12
(c) Form 15
(d) Form 26AS
(e) Form 17

Q9. Home Access is provided by ____
(a) DSL
(b) FTTP
(c) Cable
(d) All of the mentioned
(e) None of the above

Q10. Which memory acts as a buffer between CPU and main memory?
(a) RAM
(b) ROM
(c) Cache
(d) Storage
(e) PROM

Solutions 

S1.Ans(c)
Sol. operating Profit= Net Profit- Non operating Income+ Non-operating expense
Operating Income and expense relate to expenses and Income in the normal activities of business like office administrative, selling and distribution, discount etc.
= (50000-5000-7000-3000+5000+4000)

S2.Ans (b)
Sol. The activities of a government are determined by the needs of the country. If the activities to be carried out, during the coming years, are known, it becomes easier to determine the funds required to carry out those activities. For this, the Government accounts are designed to enable the government to determine the amount needed to collect from the taxpayers to maintain its activities.

S3. Ans(a)
Sol. Overtrading occurs when a company does not have access to sufficient capital to fund an increase. This can cause serious problems for the company because it will be unable to pay its business creditors. As a result, the phenomenon of working capital overtrading is characterised by less cash invested in current assets.

S4. Ans(b)
Sol. The option b is the correct answer. Existing investments within a project are not considered sunk costs. Money that has already been spent and cannot be recovered is referred to as a sunk cost. The phenomenon of the sunk cost reflects the axiom that one must “spend money to make money” in business.

S5. Ans(c)
Sol. An auditor prepares a report after performing all of his auditing services. Based on his research and activities, an auditor prepares primarily the three types of reports:
1) Unmodified or unqualified opinion report
2) Qualified report
3) Adverse report.

S6. Ans(a)
Sol. The company shall be punished with a fine of not less than twenty-five thousand rupees but not less than five lakh rupees, and any officer of the company who is in default shall be punished with imprisonment for a term not exceeding one year or with a fine of not less than ten thousand rupees but not less than one lakh rupees, or with both.

S7. Ans(c)
Sol. Within one month complaint should be made of the date on which the cause of action arises under clause (c) of the proviso to section 138

S8. Ans(a)
Sol. Form 16 is a certificate issued by an employer to his employees under the Income Tax Act. It attests to the amount of tax deducted by the employer from the employee’s salary.

S9.Ans (d)
Sol. Home Internet Access is provided by DSL, FTTP, and Cable. FTTP provides the fastest speeds followed by the cable connections and then the DSLs. FTTP is popularly used in modern connections.

S10. Ans (c)
Sol. Cache memory is a small, very high-speed semiconductor memory, which helps to speed up CPU. It is placed as a buffer between the CPU and RAM.