Accounts Quizzes For FCI Phase 2 2022- 29th November

Q1.SMTP stands for
(a) Short mail transmission protocol
(b) Small mail transmission protocol
(c) Server Mail Transfer Protocol
(d) Simple Main Transfer Protocol
(e) Second Mail transfer procedure
S1.Ans (d)
Sol: The Simple Mail Transfer Protocol is an Internet standard communication protocol for electronic mail transmission. Mail servers and other message transfer agents use SMTP to send and receive mail messages.

Q2. In MS Office, __ is the software for managing emails.
(a) MS Access
(b) MS Publisher
(c) MS Outlook
(d) MS Onenote
(e) MS PowerPoint
S2. Ans(c)
Sol: Microsoft Outlook allows one to send and receive email messages, manage your calendar, store names and numbers of your contacts, and track your tasks.

Q3. Beta Inc. assigned a number of its employees to Gama India, who provided services solely to the Indian company. Beta Inc. paid such employees Rs. 3,00,000 in home salary and special allowance outside India, while Gama India paid them Rs. 13,00,000 in India. The taxable salary for such an employee would be _________
(a) 13,00,000
(b) 16,00,000
(c) 23,00,000
(d) 6,50,000
(e) 17,00,000
S3. Ans(b)
Sol. Beta Inc. assigned a number of its employees to Gama India, who provided services solely to the Indian company. Beta Inc. paid such employees Rs. 3,00,000 in home salary and special allowance outside India, while Gama India paid them Rs. 13,00,000 in India. The taxable salary for such an employee would be 16,00,000.

Q4. Income of a minor child shall be included in the income of
(a) Parent whose total income before clubbing is more.
(b) Minor child
(c) Parent whose total income before clubbing is lower
(d) Parent whose total income after clubbing is more.
(e) None of the above
S4. Ans(a)
Sol. Income of a minor child shall be included in the income of Parent whose total income before clubbing is more. According to section 64(1A), minor children’s income is combined with the income of the parent whose income (excluding minor children’s income) is greater.

Q5. Which of the following statements about the Sale of Goods Act is correct?
1. Title
2. Description
3. Quite possession
4. Encumbrances
Choose the correct answer from the following options
(a) 1 and 4 only
(b) 2 and 3 only
(c) 3 and 4 only
(d) 1 and 2 only
(e) None of the above
S5. Ans(d)
Sol. Implied conditions according to the Sale of goods act.
(i) Sellers title to good is valid.
(ii) Goods comply with description and sample
(iii) Quality or fitness of goods for the purpose specified by buyer
(iv) Wholesomeness of eatables

Q6. A judicial proceeding in which a creditor requests that the court order a third party who is indebted to the debtor to turn over any of the debtor’s property held by that third party to the creditor is known as:
(a) Solemn proceeding
(b) Automatic stay proceeding
(c) Garnishee proceeding
(d) Summary proceeding
(e) None of the above
S6. Ans(c)
Sol. A garnishment is a judicial proceeding in which a creditor asks the court to order a third party who owes the debtor to turn over any of the debtor’s property held by that third party to the creditor.

Q7. If external auditors intend to rely on internal auditors’ work, they must obtain evidence of what characteristics of an internal audit department exist.
(a) Integrity
(b) Objectivity
(c) Competence
(d) Reliability
(e) All of the above
S7. Ans(c)
Sol. If external auditors intend to rely on internal auditors’ work, they must obtain evidence of competence. External auditors will need strong analytical and interpersonal skills, as well as sound judgement and business acumen. Excellent project management skills are also required to plan, carry out, and meet deadlines for audit activities.

Q8. The following are two statements, one labelled Assertion (A) and the other Reason (R):
A: A low debt equity ratio indicates a strong financial position.
R: A low debt equity ratio indicates a high level of safety cover and indicates that the enterprise relies more on shareholder funds than external equities.
Which of the following is correct in light of the preceding two statements?
(a) A and R both are correct and R correctly explains (A)
(b) Both A and R are correct but R does not explain A
(c) Both A and R are incorrect.
(d) A is correct but R is incorrect.
(e) A is correct, R is slightly correct.
S8. Ans(a)
Sol. A and R are true as a low debt to equity ratio indicates a favourable position. A low debt equity ratio is an advantageous from an investing standpoint since it reduces risk during periods of rising interest rate.

Q9.What concept implies that the Contingent Liabilities are shown in the Balance Sheet? (
(a) Convention of Full Disclosure
(b) Prudence Concept
(c) Going Concern Concept
(d) Business Entity Concept
(e) Conservatism concept
S9.Ans.(a)
Sol: Convention of Full Disclosure states that there should be a sufficient disclosure of information that is of material interest to the uses of financial statements. Contingent Liabilities also a part of the material facts of a company.

Q10. Which of the following are the associate members of the International Accounting Standards Committee (IASC)?
(a) The ICAI and ICWAI
(b) Auditors
(c) Board of Directors of companies
(d) National Financial Reporting Authority
(e) None of the above
S10.Ans.(a)
Sol: The Institute of Chartered Accountants of India and the Institute of Cost and Works Accountants of India are the Associate members of the IASC.