Q.1
Each instalment including down payment is treated as hire charges by the
  • Buyer
  • Seller
  • None of these
Q.2
On sales of Rs.to A attrade discount, the sales account will be -
  • Debited by Rs. 1425
  • Credited by Rs. 1425
  • Credited by Rs. 1500
  • Debited by Rs. 1575
Q.3
Which of the following statements is/are true?The IFRS Interpretations Committee is a forum for the IASB to consult with the outside world. 2 -The IFRS Foundation produces IFRSs. The IFRS Foundation is overseen by the IASB. 3 - One of the objectives of the IFRS Foundation is to bring about convergence of national accounting standards and IFRSs.
  • 1 and 3 only
  • 2 only
  • 2 and 3 only
  • 3 only
Q.4
Under hire purchase system buyer becomes the owner
  • On payment of down payment
  • After receipts of goods
  • On payment of last instalment
  • On payment of first instalment
Q.5
The amount paid at the time of entering the Hire-purchase transaction for the goods purchased is known as
  • Cash price
  • Down payment
  • First Instalment
  • Hire purchase price
Q.6
Repairs to machinery is apportioned over the departments on the basis of
  • Number of machines in each department
  • Value of machine
  • Floor area of each machine
  • Rent rate of each machine
Q.7
The cost of goods sold on hire purchase is transferred to
  • Sales a/c
  • Purchase a/c
  • Hire purchase a/c
  • Instalment a/c
Q.8
What is the role of the IASB?
  • Oversee the standard setting and regulatory process
  • Formulate international financial reporting standards
  • Review defective accounts
  • Control the accountancy profession
Q.9
A compound journal entry
  • has equal debits and credits
  • generally extends to several pages
  • does not require narration
  • all of these
Q.10
Trial balance is prepared from
  • Ledger
  • Ledgers and journal
  • Ledger and cash book
  • None of these
Q.11
Non trading institution prepare
  • Receipts and payments account
  • Income and expenditure account
  • Profit and Loss account
  • Both A & B
Q.12
Which one of the following would not be valid grounds for a provision?
  • A company has a policy has a policy of cleaning up any environmental contamination caused by its operations, but is not legally obliged to do so.
  • A company is leasing an office building for which it has no further use. However, it is tied into the lease for another year.
  • A company is closing down a division. The Board has prepared detailed closure plans which have been communicated to customers and employees.
  • A company has acquired a machine which requires a major overhaul every three years. The cost of the first overhaul is reliably estimated at $120,000.
Q.13
Under Hire-purchase agreement the buyer agrees to pay
  • Cash price only
  • Interest only
  • Cash price and interest
Q.14
When the lessor receives payment, he credits---------account
  • Royalty
  • Hire purchase
  • Shortworkings
  • profit and loss
Q.15
The hire purchaser can record the asset at its
  • Hire purchase price
  • Cash down price
  • None of these
Q.16
Royalty account is
  • Personal a/c
  • Real a/c
  • Nominal a/c
  • Capital a/c
Q.17
What is the main objective of accounting?
  • to show the value of shares in the company
  • to provide information on business activities to interested users
  • to help management to plan its business activities
  • to show managers the results of their departments
Q.18
In the books of hire vendor the depreciation is charged
  • True
  • False
Q.19
There is no difference between hire purchase and instalment system
  • True
  • False
Q.20
Depreciation on hire purchased asset is claimed by
  • Hire vendor
  • Hire purchaser
  • Either the hire vendor or the hire purchaser as per the agreement between them
  • No depreciation is claimed till the last instalment is paid/received.
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