Accounting MCQs

Which of the following statement is/are true?
1. Tax shield on depreciation and interest is an important variable both for the lessor and the lessee.
2. Lease transactions in India are governed by the lease act.
3. A lessee should evaluate the lease options against the buying option.
4. As per AS-19, financial lease is shown in the balance sheet of the lessee as an asset.

Match List-I with List-II and choose the correct answer:

List-I	List-II
a. Shareholder	1. Creditor of company
b. Debenture holder	2. To be paid at the end of a pre-determined period
c. Redeemable debenture	3. Co-owner of the company
d. Bearer debenture	4. Transferable mere by delivery

Match the following.

List-I	List-II
a. After reissue of forfeited shares the balance of share forfeiture account is transferred to . . . . . . . .	1. Assets
b. Bonus issue is made out of . . . . . . . .	2. Free reserve
c. Debentures secured by a charge on . . . . . . . . are termed as secured debentures.	3. Accumulated profits
d. Workmen's compensation fund is . . . . . . . . to extent there is no compensation payable.	4. Capital Reserve A/c

Statement I These is no standard method for environmental accounting.
Statement II Environmental accounting is applied to textile industries.
Which of the following is/are correct?

As per AS-ll construction contracts, costs that may be attributable to contract activity in general and can be allocated to specific contracts include
1. insurance
2. freight
3. costs of design and technical assistance that is not directly related to a specific contract
4. manufacturing overheads
5. construction overheads
Select the correct answer:

The term loan of Rs. 5,00,000 was received from IFCI. It was used as under:
I. Rs. 2,00,000 was advanced to suppliers for capital work-in-progress
II. Rs. 3,00,000 was used for financing the working capital
The interest payable would be treated:

Match List-I with List-II and select the correct answer using the options given below the lists:

List-I	List-II
a. Preliminary expense	1. Capital expenditure
b. Travelling expenses of the salesman	2. Revenue expenditure
c. Profit on sale of a part of the business building	3. Capital gain
d. Nazrana paid on the purchase of land for business	4. Deferred revenue

What is the prescribed order of writing the following provisions in the Balance Sheet of companies as required by the Indian Companies Act, 1956, Part I, Schedule VI:
1. Provision for contingencies
2. Proposed dividends
3. Provision for taxation
4. Provision for Provident Fund scheme
Select your answer:

If increase in retained earning = Rs. 6,00,000
Preliminary expense = Rs. 10,000
Provision for taxation = Rs. 60,000
Transfer to General reserve = Rs. 10,000
Net profit before taxation = ??