Accounts Quizzes For FCI Phase 2 2023- 14th January

Q1.Rent of proprietor’s house paid from business account by cash will:
(a) Decrease the profit
(b) Increase the profit
(c) Reduce the capital of business
(d) Reduce the cash as well as capital of business
(e) None of the above

Q2. Only Personal and Real accounts are shown in:
(a) Trial balance
(b) Balance Sheet
(c) Trading A/C
(d) Profit & Loss A/C
(e) None of the above

Q3. Which of the following audit is compulsory?
(a) Statuary audit
(b) Partial audit
(c) Complete audit
(d) Continues audit
(e) Dividend audit

Q4. Auditors need to check that the Dividend is paid to shareholders when ___
(a) After charging depreciation
(b) out of capital
(c) Without charging depreciation
(d) From profit
(e) None of the Above

Q5. Which of the following is not a relevant cost in Capital Budgeting?
(a) Sunk Cost
(b) Opportunity Cost
(c) Allocated Overheads
(d) Both (a) and (c) above
(e) None of the above

Q6. An assessee liable to pay advance tax is not liable to pay interest u/s 234B if the advance tax paid by him is not less than
(a) 90% of advance tax payable by him
(b) 80% of advance tax payable by him
(c) 100% of advance tax payable by him
(d) 70% of advance tax payable by him
(e) 50% of advance tax payable by him

Q7. When the Public Information Officer fails to give information to the informant within the period specified under the Right to Information Act, it is called _____.
(a) Contempt
(b) Holding information
(c) Timeout
(d) Deemed Rejection
(e) None of the above

Q8. The liability of the drawer of a foreign bills of exchange is regulated in all essential matters by the law of the place where:
(a) The instrument has been negotiated
(b) The instrument has been endorsed
(c) The instrument is payable
(d) The instrument is made.
(e) The instrument is transferred

Q9. Which of the following are alternative names for mobile browsers?
(a) microbrowser
(b) wireless internet browser
(c) minibrowser
(d) Mobile web
(e) All of the above

Q10. In which of the following bar URL is entered?
(a) Address Bar
(b) Menu Bar
(c) Title Bar
(d) Status bar
(e) Font bar

Solutions

S1.Ans (d)
Sol. Rent of proprietor’s house paid from business account by cash leads to drawings which results in reduction of capital as well as cash because drawings are shown in Balance Sheet as reduction from capital.

S2.Ans (b)
Sol. Nominal accounts are not balanced at the end of the year but are transferred to Profit and Loss Account of the respective period. Only personal and real accounts are balanced and their balance is shown in the Balance Sheet prepared as at the end of the respective period.

S3.Ans (a)
Sol. statutory audit is a mandatory audit of a company’s financial records by an external entity. This audit is mandated by statute or law that governs an organization’s principles and ethics.

S4.Ans (a)
Sol. dividend is the distribution of a company’s earnings to its shareholders and is determined by the company’s board of directors. Dividends are often distributed quarterly and may be paid out as cash or in the form of reinvestment in additional stock. Dividend can be paid only after charging depreciation from profit.

S5.Ans (a)
Sol.Sunk costs are excluded from future business decisions because the cost will remain the same regardless of the outcome of a decision.Capital budgeting decisions involve huge funds and are long term decisions. As they involve huge costs one wrong decision would have a big effect on the business. They include all the potential expenses/costs. It includes opportunity cost, actual cost, incremental and relevant cash flows.

S6.Ans (a)
Sol. Interest under section 234B is levied in following two cases: a) When the taxpayer has failed to pay advance tax; or b) Where the advance tax paid by the taxpayer is less than 90% of the assessed tax.

S7.Ans (d)
Sol. When the Public Information Officer fails to give information to the informant within the period specified under the Right to Information Act, it is called deemed Rejection.

S8.Ans (d)
Sol. The liability of the drawer of a foreign bills of exchange is regulated in all essential matters by the law of the place where instrument is made.

S9.Ans (e)
Sol. Mobile browser is also known as a microbrowser, minibrowser or wireless Internet browser (WIB). The websites that are suitable to access from these mobile browsers are known as wireless portals or are collectively called as the Mobile Web.

S10.Ans (a)
Sol. In a web browser, the address bar (also location bar or URL bar) is a that shows the current URL. The user can type a URL into the bar to navigate to a chosen website; in most modern browsers, non-URLs are automatically sent to a search engine.