Company Accounts – Introduction to Company Accounts 0 Company Accounts - Introduction to Company Accounts 1 / 30 Q.30 Which of the following items cannot be shown as reserves ? Securities premium Capital Reserve Capital redemption reserve None of the above 2 / 30 Q.29 Which of the following items is not taken in P & L appropriation A/c Proposed dividend provision for taxation Transfer to general reserve Transfer to dividend equalization reserve 3 / 30 Q.28 Which of the following is not shown under the head 'Share Capital' in the balance sheet of a company ? Preferences share capital Calls-in-arrears Forfeited shares Preference dividend 4 / 30 Q.27 Dividends are usually paid on authorised capital issued capital paid up capital reserve capital 5 / 30 Q.26 Which of the following should be deducted from the share capital to find out paid-up capital ? Calls-in-advance Calls-in-arrears Securities Premium Bonus 6 / 30 Q.25 A concern has written off capital expenditure as revenue expenses by disclosing in the notes to accounts that it is the accounting policy of the concern to do so. According to AS 1. Disclosure can remedyan improper entry Disclosure can not remedy a wrong entry Any accounting policy is valid if a special resolution of shareholders is passed The accounting treatment is correct 7 / 30 Q.24 According to AS 1, A change likely to have an effect not in current but in later years, should be Disclosed in such later year Disclosed in the Auditor's report Ignored disclosed in the year in which the change is made 8 / 30 Q.23 According to AS,1, if the effect of any chance in accounting policy on the value of any item in the final accounts cannot be ascertained. It should be ignored Such fact should be disclosed It should be adjusted in the net profits It should be disclosedin a separate report to the management 9 / 30 Q.22 According to AS 1, the effect of any change in accounting policy on the value of any item in the final accounts should Be ignored Be discounted Be reported in directors report also be disclosed 10 / 30 Q.21 According to AS 1, any change in accounting policy Should never be made Is to possible Should be disclosed Requires permission of the Institute of Chartered Accountant of India 11 / 30 Q.20 According to AS 1, Disclosure should be made In relevant places At one Place In the profit & loss account In the balance sheet 12 / 30 Q.19 According to As 1, Disclosure should form part of The final accounts The Auditor's report The Directors Report The Books of Accounts 13 / 30 Q.18 According to AS 1, Disclosure should be made of Fundamental a/c'g assumptions All accounting principles All significant accounting policies All Accounting policies 14 / 30 Q.17 The following factor should be considered while selecting and applying accounting policies Inflation Employee Morale Liquidity Materiality 15 / 30 Q.16 The following factor should be considered while selecting and applying accounting policies Going Concern Growth of business Substance over form Solvency 16 / 30 Q.15 The following factor should be considered while selecting and applying accounting policies. Consistency Prudence Dual Aspect Cost 17 / 30 Q.14 A concern should select an accounting policy which enables it to Show good profits Present a true and fair view of its state of affairs and profit or loss Calculate the correct amount of cash in hand Pay the proper amount of income-tax. 18 / 30 Q.13 Following is an example of an accounting policy Realisation Objectivity Accounting Period Recognition of profit on long-term contracts 19 / 30 Q.12 Following is an example of an accounting policy Going concern Accrual Treatment of retirement benefits Disclosure 20 / 30 Q.11 Following is an example of an accounting policy Realisation Matching Disclosure Valuation of fixed assets 21 / 30 Q.10 Following is an example of an accounting policy Realisation Materiality Dual Aspect Valuation of investments 22 / 30 Q.9 Following is an example of an accounting policy Consistency Treatment of goodwill Cost Conservatism 23 / 30 Q.8 Following is an example of an accounting policy Entity Conversion of foreign currency items Going concern Conservatism 24 / 30 Q.7 Following is an example of an accounting policy Entity Consistency Going concern Valuation of stock 25 / 30 Q.6 Following is an example of an accounting policy Accrual Consistency Going concern Depreciation 26 / 30 Q.5 Vide Accounting Standard 1 fundamental accounting assumptions should Always be disclosed Be disclosed if not followed Be disclosed in notes to accounts Be disclosed in auditor's report 27 / 30 Q.4 Purpose of Accounting Standard 1is to establish a standard as to The desirable accounting policies The fundamentala/c'g assumption Disclosure of accounting policies Preparation of final accounts 28 / 30 Q.3 Accounting policies Are same for all concerns Are laid down by law Change from concern to concern Are prescribed by AS 1 29 / 30 Q.2 Accounting Standard 1 is Recommendatory Mandatory Optional No longer valid 30 / 30 Q.1 Which one of the following combinations of accounting assumptions are fundamental according to Accounting Standard 1 : Going concern,consistency& historic cost Entity, accrual and materiality Conservatism, accounting period and prudence Going concern, consistency and accrual Your score is LinkedIn Facebook Twitter VKontakte