Accounts Quizzes For FCI Phase 2 2022- 15th November

Q1. AS8 on accounting for research and development
(a) Is replaced by AS 26
(b) is applicable only to listed companies
(c) is mandatory for research institution
(d) is still in use
(e) None of the above
S1.Ans (a)
Sol: AS8 on accounting for research and development was returned with the effect from 1st April 2003 and on and from the date AS 26 intangible assets come mandatory day AS 8 was replaced to AS 26.

Q2. The process of transferring the transactions relating to changes in a particular item at one place in the form of an account is called?
(a) balancing
(b) casting
(c) journalizing
(d) posting
(e) Transferring
S2.Ans (d)
Sol: The statement which records the transactions at one place relating to a particular subject is known as account. The book which contains all the accounts is known as ledger and the procedure of writing up the accounts is known as posting.
The process of transferring the debit and credit items from journal to classified accounts in the ledger is known as posting.

Q3.Which of the following would be considered a cash flow item from a “investing” activity in a trading company, according to the accounting profession?
(a) Cash inflow from interest income
(b) Cash outflow to acquire fixed assets.
(c) Cash inflow dividend income
(d) Cash outflow to interest a/c
(e) All of the above.
S3. Ans(b)
Sol. According to the accounting profession, Cash outflow to acquire fixed assets would be considered a cash flow item from an “investing” activity.

Q4. Which of the following budgeting statements is false?
(a) Budgeting can be defined as the art of creating a budget.
(b) Adjustable budgets adjust to the level of activity.
(c) Budgeting can be defined as the act of determining costing standards.
(d) A budget centre is the part of the organisation that prepares the budget.
(e) None of the above
S4. Ans(c)
Sol. The option c is the correct answer. Budgeting cannot be defined as the act of determining costing standards. Budgeting can be defined as the art of creating a budget. Adjustable budgets adjust to the level of activity.

Q5. During an audit, the auditor discovered a balance of Rs.12,500 in the Goodwill a/c and determined that it had been written off over a long period of time. What is the auditor allowed to do with it?
(a) Advise the concern to write off
(b) Hide it from the management
(c) Insist that it be written off the same year
(d) Recommend to the concern that it be written off over a period of five years
(e) None of the above
S5. Ans(a)
Sol. During an audit, the auditor discovered a balance of Rs12,500 in the Goodwill a/c and determined that it had not been written off over a long period of time. The auditor will recommend that the company write it off.

Q6. Determine which of the following contracts is unenforceable.
(a) A housing society agreed to sell land before registering as a legal entity.
(b) A provides necessities for B, a lunatic, and wishes to be reimbursed from B’s property.
(c) Money advanced to keep a minor’s estate from being executed
(d) A contract by influence of fraud.
(e) None of the preceding
S6. Ans(a)
Sol. A housing society agreed to sell land before registering as a legal entity in unenforceable. A sale agreement contains numerous clauses that must be addressed. Each of these clauses is required for the property agreement paper to be considered valid and complete.

Q7. Which one of the following is a real time operating system?
(a) RTLinux
(b) VxWorks
(c) Windows CE
(d) All of the above
(e) None of the above
S7.Ans (d)
Sol: Eeal-time operating system (RTOS) is an OS that guarantees real-time applications a certain capability within a specified deadline. RTOSes are designed for critical systems and for devices like microcontrollers that are timing-specific. RTOS processing time requirements are measured in milliseconds.example: RTLinux, VxWorks, Windows CE.

Q8. Resource Management in operating system is done using?
(a) Time division multiplexing
(b) space division multiplexing
(c) both (a) and (b)
(d) Byte division multiplexing
(e) none of the mentioned
S8.Ans (c)
Sol: Space division multiplexing, or space multiplexing, uses multiple spatial channels to increase capacity for fiber-optic communication. Space multiplexing may use multicore fiber (MCF), multimode fiber (MMF) or few-mode fiber (FMF) to increase available bandwidth.Time-Division Multiplexing (TDM), operates by dividing the time up into time slices, so that the available time can be reused.

Q9. 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.
S9. 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.

Q10. Determine which of the following contracts is unenforceable.
(a) A housing society agreed to sell land before registering as a legal entity.
(b) A provides necessities for B, a lunatic, and wishes to be reimbursed from B’s property.
(c) Money advanced to keep a minor’s estate from being executed
(d) A contract by influence of fraud.
(e) None of the preceding
S10. Ans(a)
Sol. A housing society agreed to sell land before registering as a legal entity in unenforceable. A sale agreement contains numerous clauses that must be addressed. Each of these clauses is required for the property agreement paper to be considered valid and complete.