FINANCE

1 / 15

Which institution conducts the ‘Systemic Risk Survey (SRS)’ in India?

[A] State Bank of India
[B] Bombay Stock Exchange
[C] Reserve Bank of India
[D] National Stock Exchange

2 / 15

Which Department under the ‘Ministry of Finance’ notifies changes in rates on small savings schemes?

[A] Department of Expenditure
[B] Department of Economic Affairs
[C] Department of Revenue
[D] Department of Financial Services

3 / 15

‘Financial Stability report (FSR)’ is a flagship publication of which institution?

[A] NITI Aayog
[B] International Monetary Fund
[C] Reserve Bank of India
[D] Bombay Stock Exchange

4 / 15

Which company signed agreements to acquire Metro Cash & Carry?

[A] Tata Consumer Products
[B] Reliance Retail Ventures
[C] Godrej Consumer
[D] Avenue Supermarts

5 / 15

What is the total amount raised by the Government through disinvestment and strategic sale of PSEs since 2014?

[A] Rs 1.01 lakh crores
[B] Rs 2.02 lakh crores
[C] Rs 3.03 lakh crores
[D] Rs 4.04 lakh crores

6 / 15

What is the name of the difference between the total revenue and total expenditures of a country in a year?

[A] Fiscal Deficit
[B] Revenue Deficit
[C] Primary Deficit
[D] Budget Deficit

7 / 15

Which company is acquiring Ford India’s manufacturing plant?

[A] Eicher Motors
[B] Mahindra and Mahindra Motors
[C] Tata Motors
[D] Hyundai Motors

8 / 15

The first consignment under the India-Australia Economic Cooperation and Trade Agreement (ECTA) was flagged off which state?

[A] West Bengal
[B] Tamil Nadu
[C] Maharashtra
[D] Goa

9 / 15

Which institution has recently cautioned that India’s fiscal space is at risk?

[A] World Bank
[B] IMF
[C] WEF
[D] ADB

10 / 15

Which businessperson is the major stake holder of NDTV, as of December 2022?

[A] Ratan Tata
[B] Gautam Adani
[C] Mukesh Ambani
[D] Uday Kotak

11 / 15

As per Finance Ministry’s latest data, what is India’s gross domestic product growth in the first half of 2022-23?

[A] 7.7 %
[B] 8.7 %
[C] 9.7 %
[D] 10.7 %

12 / 15

The government has approved a package of Rs 1,64,000 crore for revival of which institution?

[A] Air India
[B] Yes Bank
[C] BSNL
[D] IDBI Bank

13 / 15

Tata Group has announced to merge which airline with Air India?

[A] Vistara
[B] Indigo
[C] Spicejet
[D] Akasa

14 / 15

RBI has commenced its retail CBDC pilot project in how many cities?

[A] Two
[B] Five
[C] Four
[D] Ten

15 / 15

Which institution primarily deals with cases of money laundering and violations of foreign exchange laws in India?

[A] Reserve Bank of India
[B] Enforcement Directorate
[C] Securities Exchange Board of India
[D] Bombay Stock Exchange

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LOGARITHM

1 / 14

14.
If logx y = 100 and log2 x = 10, then the value of y is:

2 / 14

13.
If ax = by, then:

3 / 14

12.
If logx9= -1, then x is equal to:
162

4 / 14

11.
If log 2 = 0.30103, the number of digits in 264 is:

5 / 14

10.
The value of1+1+1is:
log3 60log4 60log5 60

6 / 14

9.
If log10 5 + log10 (5x + 1) = log10 (x + 5) + 1, then x is equal to:

7 / 14

8.
If log10 2 = 0.3010, the value of log10 80 is:

8 / 14

7.
If log10 2 = 0.3010, then log2 10 is equal to:

9 / 14

6.
If log10 7 = a, then log101is equal to:

10 / 14

5.
If loga+logb= log (a + b), then:
ba

11 / 14

4.
If log 27 = 1.431, then the value of log 9 is:

12 / 14

3.
log 8is equal to:
log 8

13 / 14

2.
If log 2 = 0.3010 and log 3 = 0.4771, the value of log5 512 is:

14 / 14

1.
Which of the following statements is not correct?

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STOCKS & SHARES

1 / 15

15.
Sakshi invests a part of Rs. 12,000 in 12% stock at Rs. 120 and the remainder in 15% stock at Rs. 125. If his total dividend per annum is Rs. 1360, how much does he invest in 12% stock at Rs. 120?

2 / 15

14.
The cost price of a Rs. 100 stock at 4 discount, when brokerage is1%is:
4

3 / 15

13.
The market value of a 10.5% stock, in which an income of Rs. 756 is derived by investing Rs. 9000, brokerage being %, is:

4 / 15

12.
A 12% stock yielding 10% is quoted at:

5 / 15

11.
A man invested Rs. 1552 in a stock at 97 to obtain an income of Rs. 128. The dividend from the stock is:

6 / 15


10.
By investing Rs. 1620 in 8% stock, Michael earns Rs. 135. The stock is then quoted at:

7 / 15


9.
A man invests some money partly in 9% stock at 96 and partly in 12% stock at 120. To obtain equal dividends from both, he must invest the money in the ratio:

8 / 15


8.
Rs. 9800 are invested partly in 9% stock at 75 and 10% stock at 80 to have equal amount of incomes. The investment in 9% stock is:

9 / 15


7.
A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of dividend be 12%, his annual income is:

10 / 15

6.
A 6% stock yields 8%. The market value of the stock is:

11 / 15

5.
By investing in 16% stock at 64, one earns Rs. 1500. The investment made is:

12 / 15

4.
A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. The market value of each share is:

13 / 15

3.
Which is better investment: 11% stock at 143  or  9% stock at 117?

14 / 15

2.
A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being 13. The rate of interest obtained is:

15 / 15

1.
In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of:

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TRUE DISCOUNT

1 / 14

14.
The present worth of Rs. 1404 due in two equal half-yearly installments at 8% per annum simple interest is:

2 / 14

13.
The simple interest and the true discount on a certain sum for a given time and at a given rate are Rs. 85 and Rs. 80 respectively. The sum is:

3 / 14

12.
The interest on Rs. 750 for 2 years is the same as the true discount on Rs. 960 due 2 years hence. If the rate of interest is the same in both cases, it is:

4 / 14

11.
Rs. 20 is the true discount on Rs. 260 due after a certain time. What will be the true discount on the same sum due after half of the former time, the rate of interest being the same?

5 / 14

10.
The present worth of Rs. 2310 due 2 years hence, the rate of interest being 15% per annum, is:

6 / 14

9.
The true discount on Rs. 1760 due after a certain time at 12% per annum is Rs. 160. The time after which it is due is:

7 / 14

8.
A man buys a watch for Rs. 1950 in cash and sells it for Rs. 2200 at a credit of 1 year. If the rate of interest is 10% per annum, the man:

8 / 14

7.
The true discount on a bill due 9 months hence at 16% per annum is Rs. 189. The amount of the bill is:

9 / 14

6.
Goods were bought for Rs. 600 and sold the same for Rs. 688.50 at a credit of 9 months and thus gaining 2% The rate of interest per annum is:

10 / 14

5.
If Rs. 10 be allowed as true discount on a bill of Rs. 110 due at the end of a certain time, then the discount allowed on the same sum due at the end of double the time is:

11 / 14

4.
A man wants to sell his scooter. There are two offers, one at Rs. 12,000 cash and the other a credit of Rs. 12,880 to be paid after 8 months, money being at 18% per annum. Which is the better offer?

12 / 14

3.
A trader owes a merchant Rs. 10,028 due 1 year hence. The trader wants to settle the account after 3 months. If the rate of interest 12% per annum, how much cash should he pay?

13 / 14

2.
The true discount on Rs. 2562 due 4 months hence is Rs. 122. The rate percent is:

14 / 14

1.
A man purchased a cow for Rs. 3000 and sold it the same day for Rs. 3600, allowing the buyer a credit of 2 years. If the rate of interest be 10% per annum, then the man has a gain of:

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BANKER DISCOUNT

1 / 13


13.

 

The banker's discount on a certain sum due 2 years hence is11of the true discount.
10

 

The rate percent is:

2 / 13

12.
The true discount on a bill of Rs. 540 is Rs. 90. The banker's discount is:

3 / 13

11.
The present worth of a sum due sometime hence is Rs. 576 and the banker's gain is Rs. 16. The true discount is:

4 / 13

10.

 

The banker's gain on a certain sum due 11years hence is3of the banker's
225

 

discount. The rate percent is:

5 / 13

9.
The banker's gain on a bill due 1 year hence at 12% per annum is Rs. 6. The true discount is:

6 / 13

8.
The present worth of a certain bill due sometime hence is Rs. 800 and the true discount is Rs. 36. The banker's discount is:

7 / 13

7.
The certain worth of a certain sum due sometime hence is Rs. 1600 and the true discount is Rs. 160. The banker's gain is:

8 / 13

6.
The banker's discount of a certain sum of money is Rs. 72 and the true discount on the same sum for the same time is Rs. 60. The sum due is:

9 / 13

5.
The banker's gain on a sum due 3 years hence at 12% per annum is Rs. 270. The banker's discount is:

10 / 13

4.
The banker's discount on a sum of money for 1 years is Rs. 558 and the true discount on the same sum for 2 years is Rs. 600. The rate percent is:

11 / 13

3.
The banker's gain of a certain sum due 2 years hence at 10% per annum is Rs. 24. The present worth is:

12 / 13

2.
The banker's discount on Rs. 1600 at 15% per annum is the same as true discount on Rs. 1680 for the same time and at the same rate. The time is:

13 / 13

1.
The banker's discount on a bill due 4 months hence at 15% is Rs. 420. The true discount is:

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BANK RECONCILIATION STATEMENT

1 / 31

On 1-6-2017 Anukriti draws a bill on Anurag for ₹ 25,000. At maturity the bill is dishonoured and ₹ 100 is paid by Anukriti as noting charges. Anurag requests Anukriti to accept ₹ 5,000 in cash and for the balance Anukriti draws a bill on Anurag for 2 months with interest @12% p.a. What will be the amount of Interest?

  1. ₹410
  2. ₹420
  3. ₹400
  4. ₹402

2 / 31

A bank reconciliation statement is:

  1. A part of Cash Book.
  2. A part of Pass Book.
  3. A statement prepared by the bank.
  4. A statement prepared by a customer.

3 / 31

Cash book balance was ₹ 1,790 (Dr.). When compared with the bank statement, it was identified that

unpresented cheques were ₹ 1,040 and deposits not credited were ₹ 820. Balance of the bank statement will:

1. ₹ 70 (Dr.)

  1. ₹ 1,570 (Cr.)
  2. ₹ 2,010 (Cr.)
  3. ₹ 3,650 (Cr.)

4 / 31

Mohan's bank reconciliation statement shows cheques deposited but not credited by bank of ₹ 3,800 and

cheques issued but not presented by suppliers of ₹ 3,500. His bank balance as per Cash Book is ₹ 25,000. Balance as per pass book statement is:

  1. ₹ 25,000
  2. ₹ 24,700
  3. ₹ 25,300
  4. ₹ 32,300

5 / 31

 A bank reconciliation statement is prepared by:

  1. Bank.
  2. Customers of the bank.
  3. Creditors.
  4. Auditor.

6 / 31

Balance shown in the Balance Sheet is of

  1. Cash Book.
  2. Pass Book.
  3. Adjusted Cash Book.
  4. None of these

7 / 31

 Find out the Bank Balance as per Cash Book from the following particulars:

  1. Overdraft as per Pass Book = ₹ 5,000.
  2. Cheques deposited into the bank but not credited = ₹ 2,000

 

  1. Favourable Balance = ₹ 3,000
  2. Overdraft = ₹ 3,000
  3. Favourable = ₹ 7,000
  4. Overdraft = ₹ 7,000

8 / 31

Which of the following will not require adjustment in the Cash Book balance?

  1. Cheque issued but not presented for payment.
  2. Cheque deposited but not cleared.
  3. Cheque wrongly credited by bank.
  4. All of the above.

9 / 31

 Bank Reconciliation Statement is prepared:

  1. To know the payments made through cheques.
  2. To know the errors in the Pass Book.
  3. To compare the Cash Book with Pass Book and ascertain the differences.
  4. None of the above.

10 / 31

A bank reconciliation statement is prepared with the balance of:

  1. Cash Book
  2. Pass Book.
  3. Either Cash Book or Pass Book.
  4. Neither Cash Book nor Pass Book.

11 / 31

A Pass Book is a copy of:

  1. A customer's account in the bank's books.
  2. Cash Book relating to bank column.
  3. Cash Book relating to cash column
  4. Firm's receipts and payments.

12 / 31

Payment done by the account holder through issuing a cheque is entered in:

  1. The Pass Book at the time of issuing the cheque.
  2. The Pass Book at the time of presenting the cheque to the bank for payment.
  3. The Cash Book at the time of issuing the cheque.
  4. Both 2 and 3.

13 / 31

Which of the following is not a part of Double Entry System?

  1. Cash Book.
  2. Trial Balance.
  3. Journal.
  4. Bank Reconciliation Statement.

14 / 31

 Overdraft as per Cash Book is ₹ 10,000. Cheques deposited but not credited ₹ 2,500. Cheques issued but not encashed ₹ 3,500. What is the balance as per Pass Book?

  1. Balance ₹ 9,000
  2. Overdraft ₹ 9,000
  3. Overdraft ₹ 11,000
  4. Balance ₹ 11,000

15 / 31

Unfavourable bank balance means:

  1. Credit balance in the Cash Book.
  2. Credit balance in the Pass Book.
  3. Debit balance in the Cash Book.
  4. Favourable balance in the Cash Book.

16 / 31

  Following details are related to a firm's banking transactions at 31st March, 2019. Balance as per bank statement

₹ 22,650; uncleared lodgements ₹ 3,110; unpresented cheques ₹ 6,290. Bank credit recorded twice by bank in error as ₹ 650. Which balance for cash at bank should appear in the Balance Sheet as at 31st March, 2019?

  1. ₹ 18,820.
  2. ₹ 20,120.
  3. ₹ 25,180.
  4. ₹ 26,480.

17 / 31

. A bank reconciliation staternent is prepared to ascertain the causes of differences between:

  1. The balance as shown by the cash column of Cash Book with the balance of the Pass Book.
  2. The balance as shown by the bank column of Cash Book with the balance of the Pass Book.
  3. The balance as shown by the cash column of the Cash Book with that shown by its bank column.
  4. The balance as shown by the Cheque Book and Pass Book.

18 / 31

Bank charges ₹ 5,000 debited twice in pass book. What should be done in BRS if overdraft as per cash book is starting point?

  1. ₹ 5,000 must be deducted.
  2. ₹ 5,000 must be added.
  3. ₹ 10,000 must be deducted.
  4. ₹ 10,000 must be added.

19 / 31

Bank Reconciliation Statement is prepared:

  1. At the end of each week.
  2. At the end of each month.
  3. At the end of the accounting year.
  4. Whenever a bank statement is received.

20 / 31

 If balance in the bank statement shows ₹ 3,000 (Dr.) and there are deposits of ₹ 800 not yet credited and unpresented cheques totalling ₹ 500, the balance in the Cash Book should be:

  1. ₹ 3,300 (Cr.)
  2. ₹ 2,700 (Cr.)
  3. ₹ 4,300 (Cr.)
  4. ₹ 1,700 (Cr.)

21 / 31

 Bank Reconciliation Statement is prepared so that the difference between the undermentioned balances can be reconciled:

  1. Difference in the balance in the bank and the cash balance.
  2. Difference in the balances in the Pass Book in the beginning and at the end.
  3. Difference in the Pass Book and Cash Book balances.
  4. None of the above.

22 / 31

Bank Reconciliation Statement is prepared by matching:

  1. Entries in Pass Book with entries in bank columns of Cash Book.
  2. Entries in Pass Book with entries in cash columns of Cash Book.
  3. Entries in Pass Book with entries in bank columns and cash columns of Cash Book,
  4. None of the above.

23 / 31

 A business receives its bank statement showing the closing balance as ₹ 8,500 overdrawn. It is found that there were unpresented cheques amounting to ₹ 2,000 and uncredited deposits amounted to ₹ 1,500. Overdraft as per Cash Book is:

  1. ₹ 5,000
  2. ₹ 8,000
  3. ₹ 9,000
  4. ₹ 12,000

24 / 31

 Current account shows ₹ 1,000 as overdrawn. When bank statement is received, it was identified that one of debtors has deposited ₹ 400 into the account and bank charges of ₹ 20 had been debited to the account. Bank Statement balance is:

  1. ₹ 1,420 (Dr.)
  2. ₹ 620 (Dr.)
  3. ₹ 4,300 (Cr.)
  4. ₹ 1,700 (Dr.)

25 / 31

The credit balance as per Cash Book is ₹ 1,500. Cheques for ₹ 400 were deposited but were not collected. The cheques issued but not presented were ₹ 100, ₹ 125 and ₹ 350. Balance as per Pass Book will be:

  1. ₹ 1,100 Debit.
  2. ₹ 1,625 Debit.
  3. ₹ 2,175 Credit.
  4. ₹ 1,625 Credit.

26 / 31

Which of the following transactions will result in higher balance in the barik. column of Cash Book in comparison to Pass Book?

  1. Cheques issued but not presented for payment.
  2. Interest allowed by bank.
  3. Bank charges entered twice in Cash Book.
  4. Cheques paid into bank for collection but not yet credited.

27 / 31

Which of the following will not be considered while preparing an Amended Cash Book?

  1. Cheques issued but not presented for payment.
  2. Cheques deposited but not credited by bank.
  3. Any wrong entry in the Pass Book.
  4. All of the above.

28 / 31

Bank Reconciliation Statement is:

  1. A part of Double Entry System.
  2. Not a part of Double Entry System.
  3. Part of Bank Statement.
  4. None of these.

29 / 31

Debit balance in the Cash Book is equivalent to:

  1. Overdraft as per Pass Book.
  2. Credit balance as per Pass Book.
  3. Overdraft as per Cash Book.
  4. None of these.

30 / 31

Pass Book of the account holder is a copy of:

31 / 31

Bank Reconciliation Statement is prepared by:

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BILL OF EXCHANGE

1 / 29

If a bill is accepted and the payment is made before the due date of maturity, the difference between the paid amount and the bill amount will be called as ..........

  1. Interest.
  2. Discount.
  3. Rebate.
  4. Commission.

2 / 29

A Bill of Exchange has ... parties.

  1. Two.
  2. Three.
  3. Four.
  4. Seven.

3 / 29

A draws a bill on B for ₹ 30,000. A endorses it to C in settlement of ₹ 35,000 at 2% discount with the help of B’s acceptance and the balance in cash. If the bill is dishonoured on the due date, by what amount will C debit A?

  1. ₹ 30,000
  2. ₹ 35,000
  3. ₹ 34,300
  4. ₹ 30,700

4 / 29

Bill is drawn on 20th January, 2010 for 2 months. After sight date of acceptance is 29th January, 2010. The maturity date of bill will be:

  1. 1 April, 2010
  2. 23 March, 2010
  3. 20 March, 2010
  4. 29 March, 2010

5 / 29

On 29th August. 2017, Mudit draws a bill on Paresh for one month, the due date will be ………

  1. 2nd October, 2017
  2. 29th September, 2017
  3. 3rd October, 2017
  4. 1st October, 2017

6 / 29

 If Ram's acceptance which was endorsed by us in favour of Saleem is dishonoured, then the amount will be debited in our books to:

  1. Saleem.
  2. Ram.
  3. Bills Receivable Account.
  4. None of these.

7 / 29

The party which is ordered to pay the amount is known as ...

  1. Drawer.
  2. Payee.
  3. Drawee.
  4. None of these.

8 / 29

On 13-07-2017 X draws a bill on Y for ₹ 25,000 for 30 days. The due date of the bill will be:

  1. 15th August, 2017
  2. 14th August, 2017
  3. 17th August, 2017
  4. 16th August, 2017

9 / 29

. Rebate is calculated for the period between date of:

  1. Payment and Maturity Date.
  2. Drawing and Payment of Bill.
  3. Drawing and Maturity Date.
  4. None of these.

10 / 29

 In case of renewal of the bill, interest is charged for the period of:

  1. Original Bill.
  2. Fresh Bill.
  3. One Month.
  4. None of these.

11 / 29

Aman draws a bill on Bimal for ₹ 60,000. Aman wants to endorse it to Chirag in settlement of ₹ 70,000 at 2% discount with the help of Bimal's acceptance and balance in cash. How much cash Aman will pay to Chirag?

  1. ₹ 8,200
  2. ₹ 8,000
  3. ₹ 8,600
  4. ₹ 10,000

12 / 29

Parul accepted a bill for 90 days of ₹ 10,000 drawn by Rahul on 10th February, 2010. On 18th March, 2010, Parul wished to retire the bill, Rahul offered rebate @12% p.a. Considering the year of 360 days rebate amount will be

  1. ₹ 184
  2. ₹ 150
  3. ₹ 190
  4. None of these.

13 / 29

Bill at sight has a grace period of:

  1. 1 day.
  2. 2 days.
  3. 3 days.
  4. None of these.

14 / 29

 If due date of a bill falls on a public holiday, then the maturity date is on:

  1. One day after the maturity date.
  2. One day before the maturity date.
  3. Public holidays.
  4. None of these.

15 / 29

Which account will be debited in the books of acceptor at the time of discharge of a bill?

  1. Bills Payable Account.
  2. Cash Account.
  3. Drawer's Account.
  4. Endorsee's Account.

16 / 29

Three days are added for ascertaining the date of maturity. These are known as days of ...

  1. Maturity.
  2. Grace.
  3. Payment.
  4. None of these.

17 / 29

A bill of ₹ 10,000 is renewed. The drawee pays ₹ 3,000 as part payment. The amount of interest charged is ₹ 200.

What is the value of new bill?

  1. ₹ 700.
  2. ₹ 10,200.
  3. ₹ 9,000.
  4. ₹ 7,200.

18 / 29

Satish draws a bill on Ashish for a sum of ₹ 10,000 payable after three months from the date of drawing of bill. Ashish gives his acceptance after adding a sentence “If my brother come back on due date”. Satish claims that the bill has become invalid according to the Act:

  1. It should be signed by maker.
  2. It should be unconditional.
  3. It should be in writing.
  4. It should contain a certain amount.

19 / 29

If the due date of a bill falls on a public holiday then the bill is due on:

  1. One day after the due date.
  2. Public Holiday.
  3. One day before the due date.
  4. None of the above.

20 / 29

A Bill of Exchange is renewed generally at the request of the ...

  1. Drawer.
  2. Bank.
  3. Drawee.
  4. None of these.

21 / 29

 A Promissory Note is made by the ...

  1. Seller.
  2. Purchaser.
  3. Endorsee.
  4. None of these.

22 / 29

X drew a bill on Y for ₹ 20,000 for 3 months on 1-1-2017. The bill was discounted with banker at a charge of ₹100. At maturity the bill was returned dishonoured, the bank paid ₹ 100 as Noting charges. The bank account will be credited, in the books of X, for dishonour with:

  1. ₹ 19,900
  2. ₹ 20,000
  3. ₹ 20,100
  4. ₹ 19,800

23 / 29

Noting Charges are ultimately borne by:

  1. Drawer.
  2. Drawee.
  3. Payee.
  4. Bank.

24 / 29

 Liability for a discounted bill is a:

  1. Contingent Liability.
  2. Fixed Liability.
  3. Current Liability.
  4. None of the above.

25 / 29

A Bill of Exchange cannot be ...

  1. Endorsed.
  2. Crossed.
  3. Accepted.
  4. None of these.

26 / 29

Noting Charges Account is debited by:

  1. Drawer
  2. Drawee
  3. Payee
  4. Endorser

27 / 29

A 4 months bill drawn on 1st January, 2019 will mature for payment on:

1. 3rd May, 2019.

2. 4th May, 2019.

3. 5th May, 2019.

4. 10th May, 2019.

28 / 29

What account will be credited when discounted bill is dishonoured?

  1. Drawee's Account.
  2. Drawer's Account.
  3. Bank Account.
  4. Endorsee's Account.

29 / 29

 The Rebate on a Bill shows that:

  1. It has been paid before the date of maturity.
  2. It has been paid after the date of maturity.
  3. It has been dishonoured.
  4. None of these.

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DEPRECIATION

1 / 46

Profit on sale of fixed asset is used to create:

  1. Specific Reserve.
  2. General Reserve.
  3. Capital Reserve.
  4. None of these.

2 / 46

In the books of D Ltd. the Machinery Account shows a debit balance of ₹ 60,000 as on April 1, 2018 and Provision for Depreciation A/c at ₹ 24,000. The machinery was sold on September 30, 2018 for ₹ 30,000. The company charges depreciation @ 20% p.a. on diminishing balance method. Profit/ Loss on sale of the machinery is:

  1. ₹1,200 Profit.
  2. ₹2,400 Loss.
  3. ₹2,400 Profit.
  4. ₹1,200 Loss.

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Straight Line Method of Depreciation is that method under which:

  1. Depreciation is charged at a fixed percentage on the book value of the asset.
  2. Depreciation is charged at a fixed percentage on the original cost of the asset.
  3. Depreciation is charged on original cost of asset but the depreciation rate changes.
  4. None of the above.

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 If the amount of any known liability cannot be determined with accuracy:

  1. A liability should be provided.
  2. A provision should be made.
  3. A reserve should be set aside.
  4. None of these.

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Which of the following statements are correct about a “Provision”?

  1. Provisions are a charge against the profits of an enterprise.
  2. Provisions are created out of divisible profits.
  3. Creation of provisions are not necessary for a business.
  4. Provisions are created to meet a known liability.

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Depreciation is a:

  1. Reserve.
  2. Provision.
  3. Both (1) and (2).
  4. None of these.

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A machine is purchased on 1st April, 2018 for ₹ 80,000. Expenses incurred on its installation is ₹ 20,000. The residual value at the end of its expected useful life of 4 years is estimated at ₹ 10,000. The amount of

depreciation under Straight Line Method, for the year ended on 31st March, 2019 will be:   

 

1. ₹ 22,500

  1. ₹ 20,000
  2. ₹ 17,500
  3. ₹ 13,125

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Which of the following best describes the “Depreciation”?

  1. Valuation of fixed asset at the end of the year.
  2. Verification of assets.
  3. Allocation of cost of fixed assets over its useful life.
  4. Decreasing the market value of asset.

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. The loss on sale of an asset is debited to:

  1. Reserves.
  2. Depreciation fund.
  3. Profit and Loss Account.
  4. None of these.

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A Ltd. purchased a machine on 1.1.2019 for ₹ 1,20,000. Installation expenses were ₹ 30,000. Residual value after 5 years ₹ 5,000. On 1.7.2019, expenses for repair were incurred to the extent of ₹ 2,000. Depreciation is provided @10% p.a. under the written down value method. Total depreciation after 2nd year.

  1. ₹ 25,000
  2. ₹ 13,000
  3. ₹ 10,500
  4. ₹ 28,500

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Charging depreciation is:

  1. Compulsory.
  2. Voluntary.
  3. Dependent on the condition of assets.
  4. None of these.

12 / 46

Depreciation is charged on:

  1. Current Assets.
  2. Fixed Assets.
  3. Total Assets.
  4. Fictitious Assets.

13 / 46

Ambuja Cement Ltd. purchased a machine on 1-1-2019 for ₹ 1,20,000. Installation expenses were ₹ 10,000. Its residual value after 10 year is ₹ 5,000. On 1-03-2019 expenses on its repairs were incurred to the extent of ₹2,000. Depreciation is provided under straight line method. Books are closed on 31st March every year. The amount of depreciation for the current year will be:

  1. ₹ 3,125
  2. ₹ 3,175
  3. ₹ 12,500
  4. ₹ 12,700

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Depreciation is a process of:

  1. Valuation of asset.
  2. Allocation of cost.
  3. Both of valuation of asset and allocation of cost.
  4. None of the above.

15 / 46

Provisions are:

  1. External transactions.
  2. Internal transactions.
  3. Can be (1) or (2).
  4. None of these.

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Amount of depreciation charged under diminishing balance method remains:

  1. Increasing.
  2. Decreasing.
  3. Fixed.
  4. Fluctuating.

17 / 46

Under diminishing balance method, depreciation is charged on:

  1. Original Cost.
  2. Written Down Value.
  3. Cost of Production.
  4. Net Profits.

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What will be the percentage of depreciation under SLM in the following case: Original Cost of Machine ₹ 1,50,000

Salvage value after 9 years ₹ 15,000 Repair charges in 2nd year ₹ 10,000

  1. 11.11%
  2. 10%
  3. 10.34%
  4. 9.37%

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An asset was purchased for ₹ 5,00,000 and as per reducing balance method, 20% deprecation is charged each year. What is the value of assets at the end of three years?

  1. ₹ 3,50,000
  2. ₹ 2,56,000
  3. ₹ 4,00,000
  4. ₹ 3,20,000

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Which one of the following is not a feature of written down value rnethod of depreciation?

  1. The book value of the asset becomes zero at any one point of time.
  2. The depreciation is calculated on the book value of assets and not on the cost
  3. The amount of depreciation charged on a specific asset reduces every year.
  4. There is no need to estimate the residual value and estimated life at the time of deciding the amount of depreciation.

21 / 46

Which of the following statements is not appropriate in relation to “Provision”?

  1. Provision is a charge against profit.
  2. Provision is created for known liability.
  3. Provision is created for strengthening the financial position of the business.
  4. Creation of provision satisfies the principle of conservatism.

22 / 46

 Which one is not the cause of depreciation?

  1. Efflux of time.
  2. Price fluctuation.
  3. Obsolescence.
  4. Natural wear and tear.