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TEST 1

The document promotes a Telegram channel for free EPFO exam materials and video lectures, emphasizing the competitive nature of the exam with around 1 million applicants. It includes a test booklet with multiple-choice questions related to general accounting principles, covering various topics such as bookkeeping, accounting principles, and financial statements. The document encourages quick action to not miss the opportunity to prepare for the exam.

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Sheiq Sartaz Ias Aspirant
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2 views

TEST 1

The document promotes a Telegram channel for free EPFO exam materials and video lectures, emphasizing the competitive nature of the exam with around 1 million applicants. It includes a test booklet with multiple-choice questions related to general accounting principles, covering various topics such as bookkeeping, accounting principles, and financial statements. The document encourages quick action to not miss the opportunity to prepare for the exam.

Uploaded by

Sheiq Sartaz Ias Aspirant
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Join our telegram channel

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materials and video lectures for
FREE !!

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With approx 10 lac applicants, it


one of the toughest exams in
India.
So Hurry up!!
Dont miss the Chance.
TEST BOOKLET-1

General Ability Test (General Accounting Principles)

Time Allowed:25 min Maximum Marks:21


Each Question Marks:0.83
Negative Marks:0.28

Q1. Book-keeping is mainly concerned with:

(a) Recording of Financial Data


(b) Designing the systems of summarizing the recorded data
(c) Interpreting the data for internal and external users
(d) Preparation of financial statements of the business enterprise

Q2. Due to which principle, qualitative transactions are not recorded in the books?

(a) Business Entity Principle


(b) Money Measurement Principle
(c) Historical Cost Principle
(d) Dual Aspect Principle

Q3. M/S Arora Ltd. Has invested Rs. 10,000 in the shares of Reliance Industries Ltd.
Current market value of these shares is Rs. 10,500. Accountant of Arora Ltd. Wants to
show Rs. 10,500 as value of investment in the books of accounts. Which accounting
convention/principle restricts him from doing so?

(a) Full Disclosure


(b) Consistency
(c) Conservatism
(d) Materiality

Q4. Which of the following is not a correct difference between book-keeping and
accounting?

(a) Book-keeping is the primary stage while Accounting is the secondary stage.
(b) The job of book-keeping is analytical and dynamic in nature while the job of
accounting is routine and clerical in nature.
(c) The basic objective of book-keeping is to maintain specific record of financial
transactions while the basic objective of accounting is to ascertain financial position
and financial performance and to communicate information to the interested parties.
(d) None of the above

Q5. Which of the following is not true for calls in advance?

(a) The balance of calls in advance is shown separately on the liability side of balance
sheet.
(b) This balance is added to the amount of paid up capital.
(c) The board must pay interest on calls in advance at the rate specified in the articles
OR 6%p.a.
(d) All are true.

Q6. In the context of Accounting, the term IFRS stands for:

(a) International Financial Reporting Standards


(b) Indian Financial Reporting Standards
(c) Indian Financial Reporting System
(d) International Financial Reporting System

Q7. In the absence of any provision in the partnership agreement, profits and losses are
shared by the partners:

(a) In the ratio of the capital of the partners


(b) Equally
(c) In the ratio of the loans given by them to the partnership firm
(d) In the ratio of initial capital introduced by the partners

Q8. The liability of the partners in a partnership firm under Indian Partnership Act, 1932
is:

(a) Limited
(b) Unlimited
(c) No Liability
(d) Depending on the situation
Q9. Which of the following is the maximum capital for which a company is authorized to
issue shares during its lifetime?

(a) Nominal Capital


(b) Subscribed Capital
(c) Issued Capital
(d) None of the above

Q10. ___________ is that part of Authorised Capital which is actually offered to the public
for subscription.

(a) Nominal Capital


(b) Subscribed Capital
(c) Issued Capital
(d) Called –up Capital

Q11. In case of accounting for shareholders, a company may buy-back its own shares
from which of the following sources?

(a) From the existing shareholders on a proportionate basis


(b) From the open market
(c) From employees of the company
(d) All of the above

Q12. In case of Employee Stock Option Plan(ESOP), what shall be the minimum period
between the date of grant of option and the date of vesting of option?

(a) One Year


(b) Six Months
(c) Two Years
(d) Three Months

Q13. As per the Companies Act, 2013, buy-back of equity shares in any financial year
shall not exceed __________ percent of its total paid-up equity capital in that financial year.

(a) Twenty
(b) Thirty
(c) Twenty-five
(d) Ten
Q14. Which of the following errors is revealed by the trial balance?

(a) Wrong amount entered in the book of original entry


(b) Wrong amount if posted in the ledger account
(c) Complete omission of an entry from the books of original entry
(d) When accounting principle is violated while recording a transaction in the books of
account.

Q15. Which of the following is not a condition to be fulfilled by a company for issue of
sweat equity shares?

(a) The company must have been in business for not less than 1 year.
(b) These shares should belong to a class of shares already issued.
(c) Issue of these shares must be authorized by a special resolution passed by
shareholders.
(d) The company must not have incurred losses in last 3 years.

Q16. _________________ is a kind of expenditure the benefit of which is likely to be derived


over a number of years.

(a) Revenue Expenditure


(b) Capital Expenditure
(c) Deferred Revenue Expenditure
(d) None of the above

Q17. Which of the following is a capital expenditure?

(a) Wages
(b) Wages paid for building construction
(c) Repair expenses of building
(d) Advertisement expenses

Q18. According to which principle of accounting, all anticipated losses should be recorded
in the books of accounts, but all anticipated gains should be ignored?

(a) Conservatism
(b) Materiality
(c) Full Disclosure
(d) Matching

Q19. Which of the following is true as per dual aspect principle of accounting?

(a) Assets = Liabilities - Capital


(b) Assets = Liabilities + Capital
(c) Assets = Capital - Liabilities
(d) Capital = Assets + Liabilities

Q20. When goods are purchased for the Joint Venture, the amount is debited to: (Asked
in UPSC EPFO EXAM 2017)

(a) Purchase Account


(b) Joint Venture Account
(c) Venturer’s Capital Account
(d) Profit and Loss Account

Q21. Under which schedule of the Companies Act, 2013, the formats of financial
statements are prescribed?

(a) Schedule I
(b) Schedule II
(c) Schedule III
(d) Schedule IV

Q22. Which of the following statements is not true?

(a) Depreciation is used for recording the expired utility of a physical asset.
(b) Depletion is systematic reduction in the value of a natural resource based on the rate
at which it is being used.
(c) Amortization is used for writing down long term investments in lease holds, patents
copyrights.
(d) Amortization is for tangible assets whereas depreciation is for intangible fixed assets.

Q23. Which of the following company’s shares can be freely transferable :


(a) Private company
(b) Public company
(c) Both (a) and (b)
(d) None of the above

Q24. The correct formula for calculating Gross Profit is :-

(a) Cost of goods sold+ opening stock


(b) Sales- cost of goods sold
(c) Sales- purchases
(d) Gross sales- depreciation

Q25. As per revenue recognition concept, revenue is deemed to be realized when:

(a) Purchase order is received from the purchaser


(b) When goods are delivered to the purchaser
(c) When the title of the goods has been transferred to the purchaser
(d) When cash is received from the purchaser
Join our telegram channel
https://t.me/upscepfoexams
for getting all paid EPFO exam
materials and video lectures for
FREE !!

Click Click
me me

With approx 10 lac applicants, it


one of the toughest exams in
India.
So Hurry up!!
Dont miss the Chance.

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