NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Commerce MCQs (Practice_Test 30 of 99)
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- When net profit is ₹ 2,25, 000; taxes ₹ 25,000; and net worth ₹ 10,00, 000, what is the rate of return on shareholders equity?
- 22.5%
- 20%
- 25%
- Cannot be calculated
- Which one of the following is not indicated by an increase in the gross profit ratio as compared to that for the previous period?
- An increase in the sale price of the goods sold without corresponding increase in costs
- Stock omitted from the inventory at the end of the period
- Invoices for purchases omitted from the account
- Stock in trade at the beginning valued at a figure lower than it should have been
- The following information relates to an organization: Equity share capital ₹ 10,00, 000; 18% debentures ₹ 8,00, 000; 10% preference share capital ₹ 5,00, 000; Current liabilities ₹ 3,00, 000; Loan at 15% (Long term) ₹ 1,40, 000; General Reserve ₹ 8,00, 000; Current Assets ₹ 3,50, 000. What is the Capital gearing ratio of the organization?
- 1.6
- 0.8
- 1.2
- 0.5
- By adopting which of the following tactics, return on investment of a company can be enhanced?
- Postponing the replacement.
- Valuing closing stock on LIFO basis during rising prices.
- Providing less depreciation.
- Making higher provisions.
- Select the correct answer using the code given below:
- 1 and 3
- 2 and 4
- 1,3 and 4
- 1,2, 3 and 4
- XYZ Ltd. Provides the following information: Net Profit ₹ 1,600 Profit on sale of investments ₹ 480 Depreciation ₹ 5,200 Loss on sale of machinery ₹ 200 Increase in stock ₹ 1,000 Increase in creditors ₹ 1,000 What is the amount of funds from operations of the company?
- ₹ 7000
- ₹ 7520
- ₹ 8520
- ₹ 6520
- In corporate sector, the expenses on account of social obligation are
- Compulsory
- Legitimate
- Optional
- None of the above
- Consider the following functions
- Compare the lists of debtors and creditors.
- Check the total of cash book.
- Ensure that no entry remained unspotted.
- Check the trial balance.
- What is the correct balance of these functions to be performed by an auditor to locate errors?
- 4 − 2 − 1 − 3
- 1 − 3 − 4 − 2
- 4 − 3 − 1 − 2
- 1 − 2 − 4 − 3
- Which one of the following is not an advantage of Interim Audit?
- Audit staff will prepare notes when they finish the interim audit
- The final audit can be completed soon
- It is good where publication of figures is necessary
- There is moral check on the staff
- Which one of the following is applicable to vouching and Post audit?
- Procedural tests are applied
- Important items from the balance sheet are taken
- Examination of profit & loss account, and balance sheet for present and past years
- Investigation into the items of nonrecurring nature
- Which one of the following statements is correct? While conducting audit, the auditor should ensure that the stock is valued at
- cost price
- market price
- cost or market price whichever is lower
- cost or market price whichever is higher
- Match List I (Matter for Audit Examination) with List II (Audit Technique Adopted) and select the correct answer using the codes given below
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Commerce MCQs (Practice_Test 30 of 99) List-I List-II - Cash payments
- Plant and machinery
- Bank OD balance
- Disagreement between the bank balance shown by cash book and bank pass book
- Direct confirmation
- Physical verification
- Vouching
- Reconciliation review
- Test checking
- A
- B
- C
- D
- 3
- 1
- 2
- 4
- 4
- 2
- 1
- 5
- 3
- 2
- 1
- 4
- 4
- 1
- 2
- 5
- Consider the following statements: ‘Teaming and lapping’ method of fraud is committed by
- Concealment of a shortage by delaying the recording of cash receipts.
- When a cheque is received, it is not credited to customers but misappropriated.
- When another customer sends a cheque, it is credited to first customer՚s account.
- inflating the payment vouchers
- Which of the statements given above are correct?
- 1 and 4
- 1,2 and 3
- 2 and 4
- 3 and 4
- The steps used to derive the deduction approach in accounting are as under
- Developing the techniques of accounting.
- Selecting the postulates the basic accounting propositions or premises.
- Specifying the objectives of financial statements.
- Deriving the principles of accounting.
- Which one of the following is the correct sequence of the above steps?
- 4 − 1 − 3 − 2
- 3 − 2 − 4 − 1
- 4 − 2 − 3 − 1
- 3 − 1 − 4 − 2
- Consider the following statements related to non-corporate audit
- The auditor is to ascertain the nature of revenue expenses.
- The auditor is to ascertain the weakness of internal control system.
- The auditor is not to ascertain the type of internal control system applicable for sensitive items in organization.
- The auditor is not to ascertain the appropriateness of books of accounts.
- Which of the statements given above are correct?
- 1 and 2
- 1,2 and 3
- 3 and 4
- 1,2 and 4
- To whom, is the auditor՚s report pursuant to a special audit of a company furnished?
- Shareholders of the company
- Board of directors of the company
- Central Government
- Concerned State Government (s)