Accounts Quizzes For FCI Phase 2 2022- 13th December

Q1. 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

Q2. Advance tax is exempted for:
(a) A company
(b) An individual who is a senior citizen.
(c) An assessee other than individual or HUF
(d) Any assessee
(e) None of the above

Q3. Which of the following does NOT come under the purview of “paper taxes”?
(a) Gift tax
(b) Estate duty
(c) Excise tax
(d) Wealth tax
(e) All of the above

Q4. Calculate Debtor’s Turnover ratio if the credit sales are 60,000 and average account receivables are 40,000.
(a) 1
(b) 1.5
(c) 2
(d) 2.5
(e) 4

Q5. Which type of activities is presented in Comparative Balance Sheet.
(a) Sales
(b) Marketing
(c) Distribution
(d) Operating
(e) all of these

Q6.Which of the following does not take place as part of the budgetary control process?
(a) Control of budgets
(b) Approval and execution of budgets
(c) Preparation and presentation of budgets
(d) None of the above.
(e) All of the above

Q7. Which of the following rules applies when preparing a schedule of changes in working capital?
(A) An increase in current assets increases working capital.
(B) An increase in current assets reduces working capital
(C) An increase in current liabilities reduces working capital
(D) An increase in current liabilities increases working capital
Choose the most appropriate answer from the options given below:
(a) A and C only
(b) A and D only
(c) B and D only
(d) A, B and C only
(e) B and C only

Q8. Which of the following is an example of Goods Misappropriation?
(a) Pilfer away goods from stock
(b) Using goods for personal purposes
(c) Use of commercial car for personal purposes
(d) Both above (a) and (b)
(e) None of these

Q9. Which of the following audit types is appropriate for small businesses?
(a) Continuous Audit
(b) Periodical Audit
(c) Balance Sheet Audit
(d) Both above (b) and (c)
(e) None of these

Q10. What is the access point (AP) in a wireless LAN?
(a) device that allows wireless devices to connect to a wired network
(b) wireless devices itself
(c) both device that allows wireless devices to connect to a wired network and wireless devices itself
(d) all the nodes in the network
(e) None of the above

Solutions

S1. 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.

S2. Ans (b)
Sol. A resident senior citizen (an individual aged 60 or more) who does not have any income from business or profession is not required to pay advance tax, according to Section 207 of the Act.

S3. Ans(c)
Sol. Paper taxes are taxes that have no meaning in terms of revenue yield and only have a paper presence. Excise duty is a type of tax levied on goods for their manufacture, licencing, and sale.

S4.Ans (b)
Sol. [Debtor’s Turnover ratio = credit sales/ average account receivables
=60,000/40,000
=1.5.]

S5. Ans (d)
Sol. Comparative Balance Sheet reflects the effect of operations taking place in assets and liabilities of the company. They are duly recorded in the balance sheet.] The line items that are included in a comparative balance sheet are the same that are included in an individual balance sheet. The general categories included are: assets, liabilities, and equity. The categories are further broken down into current assets, current liabilities, long-term assets, and long-term liabilities. Balance sheet figures expressed as absolute figures or in terms of percentages.

S6. Ans(d)
Sol. The process of budget control can be divided into 5 steps:
1) Determining the actual position, 2) When comparing actual to budget,3) Creating variances, 4) Identifying the causes of variations, 5) Taking action in order to gain control

S7. Ans(a)
Sol. Working capital is the difference between a company’s current assets such as cash, accounts receivable (unpaid invoices from customers), and inventories of raw materials and finished goods and its current liabilities such as accounts payable.
Working capital= Current assets- current liabilities

S8. Ans(d)
Sol. One of the most common issues in stock-based businesses is the misappropriation of goods. Diversion of goods is more than just theft. It falls under the category of fraud because the person or persons responsible intend to divert the company’s assets to generate personal profits. Examples are pilfer away goods from stock and using goods for personal purposes.

S9. Ans (d)

Sol. Audit types that are appropriate for small businesses are periodical audit and balance sheet audit. It provides reasonable assurance about the business’ financial information

S10.Ans (a)
Sol. Access point in a wireless network is any device that will allow the wireless devices to a wired network. A router is the best example of an Access Point.