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How much will $1.00 invested at 10%

(compounded annually) grow to by the end of 3

years?

$.70

$1.21

$1.30

$1.331

2

Depreciation is incorporated into the discounted cash

flow analysis of an investment proposal because

it is a cost of operations which cannot be

avoided.

it results in an annual cash outflow.

it is s a cash inflow.

it reduces the cash outlay for income taxes.

3

The appropriate journal entry to record the

application of overhead in a job costing system

involves a debit to Work in Process and a credit to:

Cost of Goods Sold

Factory Overhead

Cash

Income Summary

4Which of the following would not be reported as a

separate component on the income statement?

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Income from continuing operations

Discontinued operations

Prior period adjustment

Extraordinary item

5

A multiple-step income statement is thought to be

more beneficial to financial users because of the

revelation of important relationships. Which of the

following is not separately identified on a multiple-

step income statement?

Gross profit

Net income

Income taxes

Total costs and expenses

6

Inventory accounts should be classified in which

section of a balance sheet?

Current assets

Investments

Property, plant, and equipment

Intangible assets

7

Which of the following should not be included as partof cash on the balance sheet?

The amount of petty cash at year-end.

Outstanding checks at year-end.

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Deposits in transit at year-end.

Checks received from customers.

8s

The financial statement which shows cash activity

(receipts and disbursements) during the accounting

period is called a(n):

Bank statement.

Income statement.

Statement of cash flows.

Bank reconciliation.

9

The principal purpose of a voucher system is to

provide assurance that:

All cash receipts are deposited intact in the

bank.

All cash disbursements are approved before a

check is issued.

All cash receipts are recorded in the

accounting records.

All credit sales will be collectible.

10

Which of the following are the major categories in

Accounting?

Financial Accounting

Cost Accounting

Management Accounting

All of the above.

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11

Which of the following are the rules for Real

Accounts?

Debit is Receiver and Credit the Giver

Debit all Expenses and Loses and Credit all

Incomes and Gains

Debit What comes in and Credit What goes

out

None of the above.

12

If an amount is posted incorrectly or posted on the

incorrect side, it is known as which of the following

types of error?

Errors of Omission

Errors of Commission

Error of Principle

Error of Posting

13

Which of the following ledgers Accounts are in Tally?

Cash Account

Credit Account

Profit & Loss Account

All of the above.

14

Which of the following options in the right side of the

screen is used to display the creation of Accounting

Vouchers and Inventory Vouchers Information?

Gateway of Tally menu

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Masters

Transactions/Vouchers

Reports

15

The reports that together form the basis for different

analysis are

Balance sheet

Profit & loss Report

Trial Balance

16

The options under the voucher entry configuration are

Show balances as on voucher date

Show batch-wise details

Show inventory details

Show stock group-wise details

17

The options under the voucher configuration are

Calculate tax on current sub-total

Show bill-wise details

Specify export shipping details

Use excise format

18The options under the voucher configuration menu are

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Show ledger current balances

Show Table of bill details for selection

Use Ref. No in stock journal

Use To/By instead of Cr/Dr

19

The options under the Payment voucher printing

configuration are

Height of voucher

Width of voucher

Print Bill-wise details

Print cost centre details

None of the above

20

Which of the following are the classifications of

Errors?

Errors of Omission

Errors of Commission

Error of Principle

None of the above.

21

Closing stock can be valued by

FIFO

LIFO

Moving Average

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None of the above

Weighted Average

22

The difference between the list of all direct

production-related expenses & direct source of

income is

Closing balance

Gross Loss

Gross Profit

None of the above

23

In Tally 6.3 ees edition, ees stands for

Enterprise edition system

Extended edition system

Extended enterprise system

None of the above

24

Advantages of Tally ees 6.3 are

Flexibility

None of the above

Real time access

Scalability

Simplicity

25 The different default primary groups of capital nature

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in Tally 6.3 are

Investments

Loans

None of the above

Suspense Account