P&L account can also be named as

Statement Of Income
What is the statement of stockholder’s equity?
It Is A Statement That Lists The Causes Of Changes In The Stockholder’S Equity During The Financial Year
State which of the following statement is true:
Internal Auditor May Be Or May Not Be A Practicing Chartered Accountant Or Cost Accountant
The process of recognizing the strengths and weaknesses of the firm by establishing the relationship
among various items of Balance Sheet and Income Statement is termed as
Financial Statement Analysis
What is the accrual basis of accounting?
Matching Expenses With Revenue In The Appropriate Accounting Period.
It is usual for a retail shop to recognize revenue when:
The Customer Becomes Legally Obliged To Pay For The Goods
The TV manufacturing Factory sells 5,000 TV on credit. They have shipped the TV but have not
collected payment. Can the TV Factory recognize the revenue?
Yes, The Revenue Is Realizable
FTL Ltd. reported pro􀀽t of 10 lakhs for 2019 and cash balance decreased by 2,40,000. Which 􀀽nancial
statement should investors of FTL Ltd. refer to for an understanding of situation?
Cash Flow Statement
Primary objective of cash flow statement is to provide information about:
Cash Flow Position Of The Company
The profit and loss account format as per Companies Act 2013 is given Schedule-
Iii
What is revenue?
The Amount Of Money A Business Earns From Selling Its Goods And Services
P&L account can also be named as
Statement Of Income
All the assets that an entity controls are recognised in the ………...….
Balance Sheet
Which of the following will not result in an increase in net working capital?
Decrease In Inventory
The terms ‘………...….’ is used in the context of PP&E and the term '………...….' is used in the context of
intangible assets.
Depreciation, Amortisation
5 steps that need to be followed in revenue recognition: 1. Identify the contracts 2. Identify the
performance obligations 3. Determine the transaction price 4. Allocate the transaction price 5.
_______________
Recognize Revenue When (Or As) The Entity Satisfies A Performance Objective.
Which one of the following is correct?
Cash From Operations Is Equal To Net Profit Adjusted For Non-Cash, Items And Adjustment For Working
Capital Changes.
Net Income is
Total Revenue - Total Expense
Which of the following is TRUE about the revenue recognition principle?
Revenue Must Be Recorded When It Is Earned
The purpose of directors responsibility statement is to give an assurance to stakeholders that
All Of These
The concept of financial statements quality implies:
Accuracy Of Using The Monetary Reports To Inform About Predicted Cash flows To Stakeholders.
The factors that may affect the quality of financial statements are:
All Of The Above.
Compute the working capital turnover ratio if, Current assets is Rs 1,60,000, current liabilities is Rs
80,000 and Cost of goods sold is Rs 3,50,000.
4.38
The prime accountability of the financial statements being a fair and true representation of the
financial health of the firm lies with the:
Board Of Directors
Income is increase in economic benefits during the accounting period in the form of
Increases In Assets And Decreases In Liabilities
Holiday Ltd. Posted a net loss of 50,000 for 2019, while reporting the increase in cash balance. As
an investor you should refer to ------ for enhanced understanding.
Cash Flow Statement
The Accounting Standards Board was set up by
Institute Of Chartered Accountants Of India
The TV manufacturing Factory sells 5,000 TV on credit. They have shipped the TV but have not
collected payment. Can the TV Factory recognize the revenue?
Yes, The Revenue Is Realizable
Misclassification of revenue expense as a capital expense leads to:
Decrease In Expenses And An Increase In Profits.
What are the basic financial statements provided in an annual report?
Balance Sheet, Income Statement, Statement Of Cash Flows And Statement Of Stockholder’S Equity.
Which of the following is a cash flow from a "financing" activity?
Cash Outflow to Shareholders as Dividends.
Which of the following statement is true about Ratio Analysis?
Ratio Analysis Helps In Data Simplification And Association.
Under which head of the Balance Sheet do we show tangible assets?
Non Current Assets
The following information is extracted from the financial statement of KTS Ltd.: Cost of goods sold
Rs. 25,00,000 Sales Rs. 50,00,000 Average accounts receivable Rs. 4,00,000 Average inventory Rs.
15,00,000 Average assets Rs. 50,00,000 Net profit Rs. 10,00,000. The account receivable turnover,
inventory turnover and total assets turnover for a firm are___________.
12.5 Times, 1.67 Times, 1 Times
The existence of significant off-balance sheet financing mainly specifies:
A Decrease In Debt, Which Decreases Financial Results Quality.
What is the balancing equation for the balance sheet?
Assets = Liabilities + Stockholder’s Equity
The primary objective of high quality financial reporting is presenting information about
_________
Monetary Units
Which of the following item are not a part of current assets in a firm?
Outstanding Expenses
The statement of only parent firm without including the subsidiary statements are known as_____
Standalone Financial Statement
Which of the following statements are true? A) Financial statements are only interim report.B)
Financial statements are also known as annual recordsC) Financial statements are historic
Option B & C
Financial statements should be submitted within ------- days from the end of each quarter except for
------ days in case of last quarter
45, 60
Amount set aside to meet the losses is a
Reserve
What does the income statement measure for a firm?
The Results Of Operations For A Period
Use the following information to determine when a business should record (or recognize) revenue: A
contract was signed in March for legal work completed by a law firm in April. The client agreed to pay
for the completed work in May and the law firm received payment in early June.
May
The Companies Act, 2013 requires all the------- companies to appoint an internal auditor
All Of These
Which of the following would be considered a cash-flow item from an "investing" activity?
All Of These.
If net profit margin is 10.50%, asset turnover is 0.80 and debt to asset ratio is 0.70 then what is the
return on net worth?
28%
The quality of financial statements is majorly determined by:
All Of The Above
Which statutory act requires that financial statements of companies shall comply with the accounting
standards.
The Companies Act, 2013
………...…. reduces the value of property, plant, and equipment on the balance sheet as the value of
assets is lowered over time due to wear and tear and the reduction of their useful life.
Depreciation
The capital structure of AB Ltd. is as follows: 9% preference shares of Rs. 10 each Rs. 3,00,000 Equity
shares of Rs. 10 each Rs. 8,00,000. The following further information is available: Profit after tax Rs.
2,70,000 Equity dividend paid 0% Market price of equity shares Rs.40 each. From the above
information, the EPS and PE ratio are ________and __________.
Rs. 3.04, 13.16
Out of the fund flow statement and cash flow statement which one is a broader concept: -
Fund Flow Statement
For companies registered under companies act 2013 statuary audit is performed by:
Chartered Accountant
Use revenue recognition principle to determine when a business should record revenue: A contract was
signed in March for legal work completed by a law firm in April. The client agreed to pay for the
completed work in May and the law firm received payment in early June.
June
For Ramesha Industries some details are furnished below.Inventory is Rs.90,000,Prepaid expenses Rs.
25,000, Quick ratio 2.5 to 1 and current liabilities Rs. 60,000. The current ratio is
4.42
If a firm have a current ratio of 1, then its net working capital will be
Zero
The measurement and timings error in financial statements quality can be in the form of:
Wrong Estimation Of Life Of The Asset.
What are the other motives behind influenced accounting?
Both A And C.
Under indirect method how will the changes in accounts receivables are reflected?
Adjustment To Net Income
What does balance sheet summarize for a business enterprise
Financial Position At A Point In Time
The Companies Act, 2013 requires all the------- companies to appoint an internal auditor
Listed Companies
Which of the following is a financing activity?
Cash used to make a payment of long term loan
One of the examples of influenced accounting problem is:
Aggressive revenue identification
The term current asset doesn’t cover
Vehicle