1. Which of the following is an example of intangible assets?
a. Land
b. Machinery
c. Goodwill
d. Building
Answer: c. Goodwill
2. Which accounting standard deals with accounting for taxes on income?
a. AS-22
b. AS-13
c. AS-7
d. AS-26
Answer: a. AS-22
3. What is the formula for calculating the Gross Profit Ratio?
a. Gross Profit / Net Sales × 100
b. Gross Profit / Cost of Goods Sold × 100
c. Net Profit / Net Sales × 100
d. Net Profit / Cost of Goods Sold × 100
Answer: a. Gross Profit / Net Sales × 100
4. Which of the following is an example of current liabilities?
a. Bank Loan
b. Debentures
c. Capital
d. Outstanding Expenses
Answer: d. Outstanding Expenses
5. What is the formula for calculating Return on Investment (ROI)?
a. Net Profit / Total Assets × 100
b. Net Profit / Equity Share Capital × 100
c. Net Profit / Sales × 100
d. Net Profit / Gross Profit × 100
Answer: a. Net Profit / Total Assets × 100
6. Which accounting standard deals with accounting for contingencies?
a. AS-10
b. AS-16
c. AS-29
d. AS-22
Answer: c. AS-29
7. What is the formula for calculating Debt-Equity Ratio?
a. Total Debt / Equity Share Capital
b. Total Debt / Total Assets
c. Equity Share Capital / Total Assets
d. Equity Share Capital / Total Liabilities
Answer: b. Total Debt / Total Assets
8. Which of the following is an example of revenue expenditure?
a. Purchase of a building
b. Purchase of machinery
c. Rent paid for a building
d. Payment of dividends to shareholders
Answer: c. Rent paid for a building
9. Which accounting standard deals with accounting for retirement benefits?
a. AS-13
b. AS-22
c. AS-15
d. AS-26
Answer: c. AS-15
10. What is the formula for calculating the Current Ratio?
a. Current Assets / Current Liabilities
b. Total Assets / Total Liabilities
c. Total Assets / Equity Share Capital
d. Net Profit / Equity Share Capital
Answer: a. Current Assets / Current Liabilities
11. Which accounting standard deals with accounting for leases?
a. AS-22
b. AS-16
c. AS-19
d. AS-13
Answer: c. AS-19
12. What is the formula for calculating Working Capital?
a. Current Assets - Current Liabilities
b. Total Assets - Total Liabilities
c. Net Profit / Total Assets
d. Net Profit / Equity Share Capital
Answer: a. Current Assets - Current Liabilities
13. Which of the following is an example of a long-term liability?
a. Bank Overdraft
b. Trade Payables
c. Debentures
d. Outstanding Expenses
Answer: c. Debentures
14. What is the formula for calculating the Debtors Turnover Ratio?
a. Net Credit Sales / Average Debtors
b. Gross Credit Sales / Average Debtors
c. Net Credit Sales / Closing Debtors
d. Gross Credit Sales / Closing Debtors
Answer: a. Net Credit Sales / Average Debtors
15. Which accounting standard deals with accounting for fixed assets?
a. AS-16
b. AS-10
c. AS-13
d. AS-7
Answer: a. AS-16
16. What is the formula for calculating the Quick Ratio?
a. Quick Assets / Current Liabilities
b. Current Assets / Current Liabilities
c. Total Assets / Total Liabilities
d. Total Assets / Equity Share Capital
Answer: a. Quick Assets / Current Liabilities
17. Which of the following is an example of a contingent liability?
a. Bank Loan
b. Outstanding Expenses
c. The lawsuit against the company
d. Trade Payables
Answer: c. The lawsuit against the company
18. What is the formula for calculating Return on Equity (ROE)?
a. Net Profit / Total Assets × 100
b. Net Profit / Equity Share Capital × 100
c. Net Profit / Sales × 100
d. Net Profit / Gross Profit × 100
Answer: b. Net Profit / Equity Share Capital × 100
19. Which accounting standard deals with accounting for investments?
a. AS-13
b. AS-22
c. AS-26
d. AS-7
Answer: a. AS-13
20. What is the formula for calculating Earnings per Share (EPS)?
a. Net Profit / Total Assets
b. Net Profit / Equity Share Capital
c. Net Profit / Sales
d. Net Profit / Number of Equity Shares
Answer: d. Net Profit / Number of Equity Shares
21. Which accounting standard deals with accounting for segment reporting?
a. AS-18
b. AS-17
c. AS-13
d. AS-10
Answer: b. AS-17
22. What is the formula for calculating the Inventory Turnover Ratio?
a. Cost of Goods Sold / Average Inventory
b. Gross Profit / Average Inventory
c. Cost of Goods Sold / Closing Inventory
d. Gross Profit / Closing Inventory
Answer: a. Cost of Goods Sold / Average Inventory
23. Which of the following is an example of a current asset?
a. Patents
b. Trademarks
c. Inventory
d. Building
Answer: c. Inventory
24. What is the formula for calculating the Return on Capital Employed (ROCE)?
a. Net Profit / Total Assets × 100
b. Net Profit / Equity Share Capital × 100
c. Net Profit / Sales × 100
d. Net Profit / (Total Assets - Current Liabilities) × 100
Answer: d. Net Profit / (Total Assets - Current Liabilities) × 100
25. Which accounting standard deals with accounting for revenue recognition?
a. AS-10
b. AS-16
c. AS-7
d. AS-9
Answer: d. AS-9
26. What is the formula for calculating the Average Collection Period?
a. 365 / Debtors Turnover Ratio
b. 365 / Creditors Turnover Ratio
c. 365 / Inventory Turnover Ratio
d. 365 / Gross Profit Ratio
Answer: a. 365 / Debtors Turnover Ratio
27. Which of the following is an example of a non-current asset?
a. Bank Overdraft
b. Trade Payables
c. Patent
d. Outstanding Expenses
Answer: c. Patent
28. What is the formula for calculating the Fixed Asset Turnover Ratio?
a. Sales / Total Assets
b. Gross Profit / Total Assets
c. Sales / Fixed Assets
d. Gross Profit / Fixed Assets
Answer: c. Sales / Fixed Assets
29. Which accounting standard deals with accounting for foreign exchange transactions?
a. AS-11
b. AS-13
c. AS-18
d. AS-22
Answer: a. AS-11
30. What is the formula for calculating the Price-Earnings (P/E) Ratio?
a. Market Price per Share / Earnings per Share
b. Earnings per Share / Market Price per Share
c. Net Profit / Sales
d. Net Profit / Equity Share Capital
31. Which accounting standard deals with accounting for retirement benefits?
a. AS-15
b. AS-13
c. AS-10
d. AS-17
Answer: a. AS-15
32. What is the formula for calculating the Return on Equity (ROE)?
a. Net Profit / Total Assets × 100
b. Net Profit / Equity Share Capital × 100
c. Net Profit / Sales × 100
d. Net Profit / (Total Assets - Current Liabilities) × 100
Answer: b. Net Profit / Equity Share Capital × 100
33. Which of the following is an example of a current liability?
a. Long-term borrowings
b. Trade payables
c. Deferred tax liability
d. Debentures
Answer: b. Trade payables
34. What is the formula for calculating the Working Capital Turnover Ratio?
a. Sales / Total Assets
b. Sales / Working Capital
c. Gross Profit / Total Assets
d. Gross Profit / Working Capital
Answer: b. Sales / Working Capital
35. Which accounting standard deals with accounting for leases?
a. AS-19
b. AS-10
c. AS-16
d. AS-17
Answer: a. AS-19
36. What is the formula for calculating the Debt-Equity Ratio?
a. Total Debt / Equity Share Capital
b. Total Debt / Total Assets
c. Equity Share Capital / Total Assets
d. Sales / Total Assets
Answer: a. Total Debt / Equity Share Capital
37. Which of the following is an example of a non-current liability?
a. Bank overdraft
b. Trade payables
c. Deferred tax liability
d. Outstanding expenses
Answer: c. Deferred tax liability
38. What is the formula for calculating the Current Ratio?
a. Current Assets / Current Liabilities
b. Total Assets / Total Liabilities
c. Sales / Total Assets
d. Net Profit / Sales
Answer: a. Current Assets / Current Liabilities
39. Which accounting standard deals with accounting for employee benefits?
a. AS-15
b. AS-13
c. AS-10
d. AS-17
Answer: a. AS-15
40. What is the formula for calculating the Asset Turnover Ratio?
a. Sales / Total Assets
b. Gross Profit / Total Assets
c. Sales / Equity Share Capital
d. Gross Profit / Equity Share Capital
Answer: a. Sales / Total Assets
41. Which of the following is an example of a deferred revenue expenditure?
a. Purchase of a new plant
b. Research and development expenses
c. Advertisement expenses
d. Discounts allowed to customers
Answer: c. Advertisement expenses
42. What is the formula for calculating the Gross Profit Ratio?
a. Gross Profit / Sales × 100
b. Net Profit / Sales × 100
c. Gross Profit / Total Assets × 100
d. Net Profit / Total Assets × 100
Answer: a. Gross Profit / Sales × 100
43. Which accounting standard deals with accounting for income taxes?
a. AS-19
b. AS-10
c. AS-22
d. AS-17
Answer: c. AS-22
44. What is the formula for calculating the Debtors Turnover Ratio?
a. Sales / Debtors
b. Debtors / Total Assets
c. Sales / Total Assets
d. Gross Profit / Debtors
Answer: a. Sales / Debtors
45. Which of the following is not an example of a contingent liability?
a. Pending legal case against the company
b. Warranty on products sold
c. Bills discounted but not matured
d. Guarantees are given on behalf of customers
Answer: b. Warranty on products sold
46. What is the formula for calculating the Return on Assets (ROA)?
a. Net Profit / Total Assets × 100
b. Net Profit / Equity Share Capital × 100
c. Net Profit / Sales × 100
d. Net Profit / (Total Assets - Current Liabilities) × 100
Answer: a. Net Profit / Total Assets × 100
47. Which accounting standard deals with accounting for contingencies and events occurring after the balance sheet date?
a. AS-29
b. AS-20
c. AS-13
d. AS-16
Answer: a. AS-29
48. What is the formula for calculating the Inventory Turnover Ratio?
a. Cost of Goods Sold / Average Inventory
b. Gross Profit / Average Inventory
c. Sales / Average Inventory
d. Net Profit / Average Inventory
Answer: a. Cost of Goods Sold / Average Inventory
49. Which of the following is an example of capital expenditure?
a. Repairs and maintenance expenses
b. Rent paid for office premises
c. Purchase of a new building
d. Advertisement expenses
Answer: c. Purchase of a new building
50. What is the formula for calculating the Operating Profit Ratio?
a. Operating Profit / Sales × 100
b. Net Profit / Sales × 100
c. Operating Profit / Total Assets × 100
d. Net Profit / Total Assets × 100
Answer: a. Operating Profit / Sales × 100
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