This quiz works best with JavaScript enabled. Home > Economy > Accounting > Accounting – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In case the depreciable assets are revalued, the provision for depreciation is based on A) AS - 6 is silent in this regard. B) Original cost of the assets. C) Depreciated value of the assets. D) The revalued amount on the estimate of the remaining useful life of such assets. Show Answer Correct Answer: D) The revalued amount on the estimate of the remaining useful life of such assets. 2. Identify the item which is not an operating expense A) Advertising expenses. B) Loss on sale of motor car. C) General management salaries. D) Depreciation of office equipment. Show Answer Correct Answer: B) Loss on sale of motor car. 3. Multinational corporations face problems since they A) Can only invest overseas, but not at home. B) Can only invest at home, but not overseas. C) Cannot benefit from the advantage of comparative advantage. D) May raise political problems in countries where their subsidiaries operate. Show Answer Correct Answer: D) May raise political problems in countries where their subsidiaries operate. 4. Which is the Principle of Capital Structure? A) Risk principle. B) Cost and control principle. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: C) Both (a) and (b). 5. Price Ratio Method is A) Asset Method. B) Growth Method. C) Earning Yield Method. D) Dividend Yield Method. Show Answer Correct Answer: C) Earning Yield Method. 6. Which is a capital expenditure? A) Project Expansion. B) Project Generation. C) Research and Development Project. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. The fundamental accounting equation' Assets = Liabilities + Capital' is the formal expression of A) Matching concept. B) Dual aspect concept. C) Going concern concept. D) Money measurement concept. Show Answer Correct Answer: B) Dual aspect concept. 8. Profit maximisation is A) Primary objective of business. B) It is indicator of economic efficiency. C) Measurement of Success of business decisions. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. EBIT /Total Assets Ratio is A) Solvency Ratio. B) Liquidity Ratio. C) Turnover Ratio. D) Profitability Ratio. Show Answer Correct Answer: D) Profitability Ratio. 10. Redeemable preference shares is ..... A) Current assets. B) Current liability. C) Non-current assets. D) Non-Current liability. Show Answer Correct Answer: D) Non-Current liability. 11. Capital budgeting means A) Planning for Cash. B) Planning for Sales. C) Planning for Profit. D) Planning for Capital Assets. Show Answer Correct Answer: D) Planning for Capital Assets. 12. Accounting Standard Board was set up by A) Government of India. B) Institute of Chartered Accountants of India. C) Institute of Company Secretaries of India. D) Institute of Cost and Works Accountants of India. Show Answer Correct Answer: B) Institute of Chartered Accountants of India. 13. Amount of premium on issue of shares is decided by the ..... as per the guidelines issued by SEBI A) Shareholders. B) Board of Directors. C) Company Law Board. D) Registrar of Companies. Show Answer Correct Answer: B) Board of Directors. 14. Which method of capital budgeting is known as 'Accounting Rate of Return Method'? A) Return on Investment. B) Rate of Return Method. C) Average Rate of Return Method. D) All of the above. Show Answer Correct Answer: D) All of the above. 15. A company can buy-back its own shares out of A) Free reserves. B) Proceeds of any shares. C) Securities premium account. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. The current ratio of a company is 2 : 1. Which of the following suggestions would reduce it? A) Issuing new shares. B) Paying off a current liability. C) Selling off a motor car for cash at a slight loss. D) To borrow from money for a short time on an interest bearing promissory note. Show Answer Correct Answer: D) To borrow from money for a short time on an interest bearing promissory note. 17. Payback reciprocal method of ranking investment proposals should be used only when A) The econontic life of the project is at least twice of the pay back period. B) Annual savings are even for the entire period. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: C) Both (a) and (b). 18. Identify the item that is not taken into account in computing the current ratio A) Cash. B) Bank. C) Land. D) Bills recoverable. Show Answer Correct Answer: C) Land. 19. Which of the following transactions will improve the current Ratio? A) Issue of new shares. B) Bills receivable Dishonoured. C) Cash collected from customers. D) Payment of preliminary expenses by way of equity shares. Show Answer Correct Answer: A) Issue of new shares. 20. Which of the following accounting standards is not mandatory in India? A) Non-monetary assets and fixed assets. B) Inventory and depreciation accounting. C) Monetary assets and depreciation accounting. D) Fixed assets accounting and revenue recognition. Show Answer Correct Answer: A) Non-monetary assets and fixed assets. ← PreviousNext →Related QuizzesEconomy QuizzesAccounting Quiz 1Accounting Quiz 2Accounting Quiz 3Accounting Quiz 4Accounting Quiz 5Accounting Quiz 6Accounting Quiz 7Accounting Quiz 8Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books