Accounts Quizzes For FCI Phase 2 2023- 31th January

Q1. Ledger records transaction in
(a) A chronological order
(b) Analytical order
(c) Factual order
(d) Both of the above
(e) None

Q2. The miscellaneous expenses account is likely to have:
(a) Only debit entries
(b) Only credit entries
(c) Both of the above
(d) Initially only debit entries and subsequently credit entries
(e) None of the above

Q3. In a joint stock company subsequent Auditors are appointed by ?
(a) Directors of the company.
(b) Annual general meeting.
(c) Election at the annual general meeting.
(d) Debenture holders.
(e) Manager of the company

Q4. Continious Audit holds good under which of the following conditions?
(a) It is conducted at regular interval.
(b) It may be carried out on daily basis.
(c) It is needed when the organization has a good internal control system.
(d) It is expensive.
(e) It is needed when organization has more than 50 employees.

Q5. Capital expenditure and Expenditure for R&D budget are examples of
(a) Short-term budget
(b) Current budget
(c) Long-term budget
(d)None of the above
(e) Zero Based Budget

Q6. Centralised control in Budgetary control system is done through ___
(a) Centralised activity
(b) Decentralised activity
(c) Both a and b
(d) By Auditors
(e) By Shareholders

Q7. Any person responsible for paying salaries shall be required to deduct tax at source at the _________ of income-tax, computed on the basis of __________ for the relevant financial year.
(a) Maximum marginal rate, rates in force
(b) Average rate, rates in force
(c) Average rate, 20%
(d) Maximum marginal rate, 20%
(e) None of the above

Q8. Interest payable by a non-corporate assessee for deferment of advance tax is
(a) 1.03% p.m.
(b) 15% p.a.
(c) 18% p.a.
(d) 1% p.m.
(e) 3.25% p.m

Q9. Which of the following is the correct definition of Sale?
(a) A contract whereby seller transfers the property in goods
(b) A contract whereby seller transfers or agrees to transfer the property ingoods to the buyer for a price
(c) A contract where transfer of the property in goods is to take place at a future time
(d) A contract where transfer of the property in goods is to take place subject to some condition thereafter to be fulfilled
(e) None of the above

Q10. Which memory acts as a buffer between CPU and main memory?
(a) RAM
(b) ROM
(c) Cache
(d) Storage
(e) PROM

Solutions

S1.Ans (b)
Sol. The financial information in a ledger is recorded as classified by its nature and relevance. The transactions are recorded in an account form ie, all transactions of same nature at one place. This gives it an analytical character and hence can be said that ledger records transactions is an analytical order.

S2.Ans (a)
Sol. Miscellaneous expenses are nominal in nature and therefore the rules of nominal account apply to it. The rule is Debit all expenses and losses Credit all incomes and gains. Since, the expenses are to be debited as per the rule hence, it is likely to have debit entries generally,

S3. Ans (c)
Sol. The first auditor appointed by the directors of the company may be removed before the expiry of his term of office and another person may be appointed in his place by the shareholders at a general meeting by passing an ordinary resolution to that effect.

S4.Ans.(C)
Sol. Continuous Audit is needed when the organization has a good internal control system.continuous audit is an internal process that examines accounting practices, risk controls, compliance, information-technology systems, and business procedures on an ongoing basis. Continuous audits are usually technology-driven and designed to automate error checking and data verification in real time.

S5.Ans (c)
Sol. Capital expenditure and Expenditure for R&D budget are examples of Long term budget.This type of budget typically covers a five-year period and is focused on the strategic direction of the business.

S6.Ans (c)
Sol.Budgetary control is the process by which budgets are prepared for the future period and are compared with the actual performance for finding out variances, if any. The comparison of budgeted figures with actual figures will help the management to find out variances and take corrective actions without any delay.

S7. Ans (b)
Sol. Any person responsible for paying salaries shall be required to deduct tax at source at the average rate of income-tax, computed on the basis of rates in force for the relevant financial year.

S8.Ans (d)
Sol. The amount of advance tax is less than 15% of the amount paid on or before 15th June. The rate of interest will be charged @ 1% per month for three months. The amount on which interest is calculated is 15% of the amount less tax already paid before the dates.

S9.Ans (b)
Sol. contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part-owner and another. (2) A contract of sale may be absolute or conditional.

S10. Ans (c),
Sol.Cache memory is a small, very high-speed semiconductor memory, which helps to speed up CPU. It is placed as a buffer between the CPU and RAM.