Accounts Quizzes For FCI Phase 2 2022- 22nd November

Q1. What will be the effect on the Trial balance if a purchase return of ₹4000 has been wrongly posted to the Debit of Sales Return Account but correctly entered in the Customer’s account?
(a) ₹4000 increase in the credit side of Trial Balance
(b)₹8000 increase in the debit side of Trial Balance
(c) No change in the Trial Balance
(d)₹8000 increase in the credit side of the Trial Balance
(e) None of the above
S1.Ans (a)
Sol: Due to the wrong posting of ₹4000 to the debit of Sales Return Account now the credit side of the Trial Balance is increased so to reduce it ₹4000 has to be debited in the Trial Balance and again to record the actual purchase return ₹4000 has to be debited in the Trial Balance. In total its ₹8000 increase in Trial Balance

Q2. Written statements, issued from time to time by Institutions of accounting professionals, specifying uniform rules or practices for drawing the financial statements is known as?
(a) Accounting Standards
(b) Generally Accepted Accounting Principles
(c) International Financial Reporting Standards
(d) Auditing
(e) None of the above
S2.Ans.(a)
Sol: Accounting Standards are those written statements issued from time to time by Institutions of accounting professionals specifying uniform rules are practised for drawing the financial statements. Accounting standards lay down the norms of accounting policies and practices by way of codes to direct and to limit the area within which accountant has to function and in this respect, they are just like laws.

Q3. Read the following statements and select the correct option
(i) “Working Capital is the amount of money required to cover the costs of running the business.”
(ii) “Circulating capital refers to a company’s current assets that are converted from one form to another in the ordinary course of business.”
(a) (i) and (ii) both are correct.
(b) (i) and (ii) both are false.
(c) (i) is correct, but (ii) is false
(d) (i) is false, but (ii) is correct
(e) (i) is true, (ii) is slightly true.
S3. Ans(a)
Sol. Statement 1: Working Capital is the amount of funds necessary to cover the cost of operating the enterprise. It is that part of the capital which helps in financing the operating activities in order to achieve short term goals.
Statement 2: Circulating capital is also known as revolving capital as the money keeps on changing its form in a continuous manner.
Therefore, it is clear from the above explanation that both statements are correct.

Q4. Which of the following statements is false?
(a) Error and fraud detection and prevention are secondary objective.
(b) Accounting objectives can be divided into two categories: 1: Primary objective 2. A secondary objective
(c) Primary objectives are also known as contingency objectives.
(d) The primary purpose of auditors is to report to owners whether the balance sheet provides a true and accurate picture of the company’s condition.
(e) All of the above
S4. Ans(c)
Sol. The auditor must verify the financial statements and books of accounts in order to certify the truth and fairness of the company’s financial position and operating results. As a result, the audit objectives are classified as primary or main objectives and secondary objectives.

Q5. Often, the internal auditor will create a schedule to ensure that audits on _________ of the company are performed at least once per calendar year.
(a) Each aspect
(b) Each area
(c) Each wing
(d) Each critical portion
(e) None of the above
S5. Ans(d)
Sol. Often, the internal auditor will create a schedule to ensure that audits on each critical portion of the company are performed at least once per calendar year.

Q6. The Reserve Bank of India, has asked banks to implement a system called positive pay, it is related to which field?
(a) Cheque
(b) Draft
(c) Saving account
(d) Promissory note
(e) None of these
S6. Ans(a)
Sol. In order to combat fraud, the RBI implemented the positive pay system for the Cheque truncation system (CTS) for banks on January 1, 2021

Q7. Any person in charge of paying salaries must deduct tax at source at the average rate of income tax computed on the basis of rates in effect during the relevant fiscal year in which________
(a) Payment is made
(b) Account of employee is credited
(c) A and b, whichever is earlier
(d) a and b whichever is later
(e) None of the above.
S7. Ans(a)
Sol. Any person in charge of paying salaries must deduct tax at source at the average rate of income tax computed on the basis of rates in effect during the relevant fiscal year in which payment is made.

Q8. Once an employee has disclosed details of other income (other than house property) to the new employer, it is_________ for the new employer to deduct TDS based on such disclosures.
(a) Optional
(b) Optional, provided that does not result in reduction of TDS otherwise deductible by the new employer.
(c) Mandatory
(d) Mandatory, provided that does not result in reduction of TDS otherwise deductible by the new employer
(e) None of the above
S8. Ans(c)
Sol. Once an employee has disclosed details of other income (other than house property) to the new employer, it is Mandatory, provided that does not result in reduction of TDS otherwise deductible by the new employer for the new employer to deduct TDS based on such disclosures

Q9. When a process in the system fails, many of the operating system are programmed to write the error information to a __
(a) new file
(b) another running process
(c) log file
(d) Alogrithm Section
(e) none of the mentioned
S9.Ans (c)
Sol: If a process fails, most operating systems write the error information to a log file. Log file is examined by the debugger, to find out what is the actual cause of that particular problem. Log file is useful for system programmers for correcting errors.

Q10. Bing is a __
(a) Search Engine
(b) Software
(c) Hardware
(d) Website
(e) None of the above
S10. Ans (a)
Sol: Bing is a web search engine owned and operated by Microsoft. Bing search engine was launched in 2009. A search engine is a software system that is designed to carry out web searches (Internet searches), which means to search the World Wide Web in a systematic way for particular information specified in a textual web search query.
The search results are generally presented in a line of results, often referred to as search engine results pages (SERPs). The information may be a mix of links to web pages, images, videos, infographics, articles, research papers, and other types of files. Some search engines also mine data available in databases or open directories. Therefore, search engines are used to search documents, videos, and images.