Question : The accounting standard prescribes that Cash Flow Statement be prepared either by

Option 1: Direct Method

Option 2: Indirect Method

Option 3: Both 1 and 2

Option 4: Neither 1 nor 2

Question : E, D and R are partners, sharing profits in the ratio of 2:2:1. D died on 30th June 2020 and profits for the accounting year 2019-20 were Rs. 36,000. The share of profit will be credited to Diya, for the period 1st April. 2020 to 30th June, 2020 is____________.

Option 1: Rs 3,000

Option 2: Rs 3,600

Option 3: Rs 2,600

Option 4: None of the above

Question : Choose the correct statement with respect to the Share of Profit or Loss and the year of death will be?

Option 1: Deceased partner is entitled to his share in profit from the beginning of the accounting year up to the date of his death.

Option 2: He bears loss, if any incurred by the firm during this period.

Option 3: Both 1 and 2

Option 4: Neither 1 nor 2 

Question : Statement 1: In management accounting, data from cost accounting and financial accounting are both used.
Statement 2: Therefore, a suitable system is required to combine cost accounts and financial accounts.

Option 1: Both the statements are true

Option 2: Both the statements are false

Option 3: Statement 1 is true and statement 2 is false

Option 4: Statement 1 is false and statement 2 is true

Question : Assertion A :-  Price level changes and the purchasing power of money are inversely related. A change in the price level makes analysis of financial statements of different accounting years invalid.

Reason R :- Accounting records ignore changes in the value of money.

In the context of the above two statements, which of the following is correct?

Option 1: Both Assertion A and reason R are correct but the reason R is not the correct explanation of Assertion A 

Option 2: Both Assertion A and reason R are correct but the reason R is the correct explanation of Assertion A 

Option 3: Both Assertion A is correct but the reason R is not correct

Option 4: Both Assertion A and reason R are not correct

Question : R, M and P were partners in a firm. P died on 29th February, 2020. His  share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of profits before death.  Profits for the years ended 31st March, 2017, 2018 and 2019 were Rs. 80,000, Rs. 90,000 and Rs. 1,00,000 respectively. 

Question:-
If profit-sharing ratio of remaining partners changes and new ratio being 3: 2. Then 

Option 1: Profit and loss suspense account debited by Rs 27,500

Option 2: Profit and loss suspense account credited by Rs 27,500

Option 3: Debited R’s capital account with RS 22,000 and M’s capital account Rs 5500 credited P’s capital account Rs 27,500

Option 4: None of the above

Question :

R, M and P were partners in a firm. P died on 29th February, 2020. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of profits before death.  Profits for the years ended 31st March, 2017, 2018 and 2019 were Rs. 80,000, Rs. 90,000 and Rs. 1,00,000 respectively. 

Question:- If the profit-sharing ratio of remaining partners does not change; P’s share of profit will be  ----

Option 1: Profit and loss suspense account debited by Rs 27,500

Option 2: Profit and loss suspense account credited by Rs 27,500

Option 3: Debited R’s capital account with Rs 22,000 and M’s capital account Rs 5,500 credited P’s capital account Rs 27,500

Option 4: None of the above

Question : Which of the following statements is false?  

Option 1: Loss on Issue of Debentures is debited at the time of issue of debentures following the Prudence Concept of Accounting.

Option 2: Loss on Issue of Debentures is written off from Securities Premium Reserve, if it exists and thereafter from Statement of Profit and Loss.

Option 3: Loss on Issue of Debentures Account is an Expense Account and Premium on Redemption of Debentures Account is a Liability Account.

Option 4: Premium on Redemption of Debentures Account is credited at the time of payment, i.e., on redemption of debentures.

Question : The analysis of the interrelationship between the economy and the environment in the economic environmental accounting system was forwarded by_____.

Option 1: Central Statistical Office

Option 2: National Environmental Engineering Institute

Option 3: Directorate of Economics and Statistics

Option 4: United Nations Statistical Office

Question : What ate the reports that computerized accounting software takes into consideration as input through Accounting Software?

Option 1: Day books/journals

Option 2: ledger

Option 3: trial balance, position statement (Balance Sheet) and Statement of Profit and Loss (Profit and Loss Account)

Option 4: All of the above