Accounts Quizzes For FCI Phase 2 2022- 27th December

Q1. If the Opening stock of a firm is Rs. 50000, Purchases is Rs 80000, sales are Rs 100000and closing stock is Rs 5000 and Wages paid is Rs. 3000 and Freight paid on the purchase is Rs. 2000, Rent paid is Rs.15000, Electricity paid is Rs 7000, what is the gross profit or loss of a firm?
(a) Rs. 20000
(b) Rs.25000
(c) Rs.28000
(d) Rs.30000
(e) Rs 35000

Q2. A building was purchased from Mr Ram& co, He debited the Repairs account instead of the building account, what kind of error it is?
(a) Error of principle
(b) Compensating error
(c) Error of commission
(d) Error of omission
(e) Error of typo

Q3. A factory manufactures two types of products, Y and Z. Article Y takes 8 hours to complete, while Article Z takes 16 hours. 600 units of X and 400 units of Z are produced in a month (25 days * 8 hours). Given a monthly budget of 8000 hours and a workforce of 50 men. Determine the activity, capacity, and efficiency ratios.
(a) 112%, 140%, 140%
(b) 140%, 112%, 140%
(c) 140%, 140%, 112%
(d) 160%, 140%, 112%
(e) None of the above

Q4. Which of the following rules applies when preparing a schedule of changes in working capital?
(A) An increase in current assets increases working capital.
(B) An increase in current assets reduces working capital
(C) An increase in current liabilities reduces working capital
(D) An increase in current liabilities increases working capital
Choose the most appropriate answer from the options given below:
(a) A and C only
(b) A and D only
(c) B and D only
(d) A, B and C only
(e) B and D only

Q5. Internal control reports issued by public companies must identify the framework used to assess internal control effectiveness. Which of the following is the most commonly used framework in the United States?
(a) Effective Internal Control Framework AICPA
(b) Internal Control – Integrated Framework-COSO
(c) Enterprise Internal Control – COSO
(d) Enterprise Internal Control – AICPA
(e) None of these

Q6. Who of the following can be appointed as a company’s auditor?
(a) A business partner or director.
(b) Someone who is mentally ill.
(c) Mr. A, who owes the company Rs. 500.
(d) Mr. B, the owner of C.A. certification
(e) None of these

Q7. When the maturity date of a promissory note or bill of exchange falls on a public holiday, the instrument is deemed to be due:
(a) On the same day
(b) On the next preceding business day.
(c) On the next business day.
(d) On the next succeeding business day.
(e) None of these

Q8. The action was filed on January 22, 2012, under the Consumer Protection Act. The suit in this case can be filed until which of the following dates:
(a) January 21, 2012
(b) January 21, 2014
(c) January 22, 2015
(d) January 22, 2016
(e) January 25, 2016

Q9. Calculate the TDS that HBL India should deduct from the salary of one of its employees based on the following information:
• Rs. 7,00,000 in salary
• Other sources of income declared by the employee – Rs. 1,000,000, from which TDS of Rs. 30,000 has been deducted.
(a) 52,500
(b) 54,600
(c) 42,500
(d) 45,400
(e)58,800

Q10. Which of the following keyboard shortcuts is used to open a last closed tab in Chrome incognito mode?
(a) Ctrl + N
(b) Ctrl + Shift + C
(c) Ctrl + T
(d) Ctrl + Shift + T
(e) Ctrl +W

Solutions

S1.Ans (a)
Sol. Gross profit= Revenue – the cost of goods sold
Cost of goods Sold= opening stock + purchase- closing stock- direct expenses
=100000-(50000+80000-5000-3000-2000) =Rs.20000
Electricity and Rent paid are indirect expenses; hence they are not taken into calculation for Gross Profit.

S2.Ans (c)
Sol. Error of commission is an error that occurs when a bookkeeper or accountant records a debit or credit to the correct account but the wrong subsidiary account or ledger. For example, money that has been received from a customer is credited properly to the accounts receivable account, but the wrong customer. Here, the purchase of the building should have been debited to building a/c but wrongly been debited to repairs a/c.

S3. Ans(c)
Sol. Capacity ratio = (Actual hours / Budgeted hours) x 100
Activity ratio = (Actual production in standard hours / Budgeted production in standard hours) x 100
Efficiency ratio = (Actual production in standard hours / Actual hours worked) x 100

S4. Ans(a)
Sol. Working capital is the difference between a company’s current assets such as cash, accounts receivable (unpaid invoices from customers), and inventories of raw materials and finished goods and its current liabilities such as accounts payable.
Working capital= Current assets- current liabilities

S5.Ans(b)
Sol. The COSO Framework is a system for implementing internal controls into business processes. These controls, taken together, provide reasonable assurance that the organisation is operating ethically, transparently, and in accordance with industry standards.

S6. Ans(d)
Sol. An Auditor of a Company can only be a practising Chartered Accountant. Before appointing an auditor to a company, the auditor’s written consent must be obtained, along with a certificate from the Auditor stating that the appointment, if made, will be in accordance with the conditions prescribed by the Auditor and that the Auditor meets the criteria set out in Section 141 of the Companies Act, 2013.

S7. Ans (b)
Sol. When the maturity date of a promissory note or bill of exchange falls on a public holiday, the instrument is deemed to be due on the next preceding business day.

S8. Ans(b)
Sol. The action was filed on January 22, 2012, under the Consumer Protection Act. The suit in this case can be filed until January 21, 2014.

S9. Ans(b)
Sol. TDS is calculated on the annual income received each year, so to calculate the annual taxable income, subtract exemptions from gross monthly income and multiply by 12.

S10 .Ans(d)
Sol. Opens a new window in incognito mode = Ctrl+Shift+N
Copies the currently highlighted object = Ctrl + C
Copy the formatting into the clipboard = Ctrl+Shift+C
Open Last Closed Tab = Ctrl + Shift + T
Close the Active Tab Right Away = Ctrl + W
Jump Between Next & Previous Tabs = Ctrl + PgDn (Next open tab) or Ctrl + PgUp (Previous open tab)
Open Your Downloads Page = Ctrl + J
Clear Browsing Data = Ctrl + Shift + Delete