Mock Test No 4
Mock Test No 4
Mock Test No 4
Timing: 3 Hours
Question : 100
1. Which of the following accounting standards do not match in the context of banking companies
accounts:
a. AS-21: consolidated statements
b. AS-21: Segment reporting
c. AS-18: Related party disclosure
d. AS-15: payment of compensation to employees
2. In the income and expenditure account, transactions relating to _____ are included:
a. Current year only
b. Previous year only
c. Subsequent year only
d. Current, previous and subsequent years
3. When the drawee pays the amount of the bill before its due date it is called:
a. Endorsing the bill
b. Honouring the bill
c. Retirement of the bill
d. None of the above
4. When a bill is paid before due date and the drawer gives some allowance to the drawee, this is
called:
a. Discount on the bill
b. Retirement of the bill at a discount
c. Rebate
d. Any of the above
5. The books of a firm are closed but it is found that a purchase of Rs.1000 from Atma Ram Sons
has been passed through the sale book for Rs.100. what is the rectification entry, after
preparing the trial balance.
a. Sales account debit Rs.900 to Atma Ram Sons
b. Purchase account debit Rs.900 to Atma Ram Sons
c. Sales account debit fRs.100, purchase account debit Rs.1000 to Atma Ram Sons Rs.1100
d. Sales account debit Rs.1000, purchase account debit Rs.100 to Atma Ram Sons Rs.1100
6. For which of the following, an adjustment entry will be required:
a. Expenses paid but not due
b. Expenses paid which were due
c. Income received which was due
d. All the above
7. Which of the following statement is correct regarding single entry system:
a. It is a system which only one entry is made
b. It is a system where the principles of double entry are not being followed
Trotal.com
Page 1
8.
9.
10.
11.
12.
13.
Trotal.com
Page 2
Trotal.com
Page 3
Page 4
Page 5
35.
36.
37.
38.
39.
40.
41.
d. 94.90
The liabilities that are repayable only when business will be terminated are called:
a. Fixed liabilities
b. Long term liabilities
c. Contingent liabilities
d. Current liabilities
For a given difference between YTM and coupon rate of a bond:
a. Shorter the maturity, greater will be change in price with change in YTM
b. Longer the maturity, greater will be change in price with change in YTM
c. Longer the maturity, shorter will be change in price with change in YTM
d. No change
A bond with a face value of Rs.100 has a maturity period of 5 years. If the YTM decreases to 9%,
what will be the change in the price:
a. Increase 3.9%
b. Decrease 3.9%
c. Increase 2.7%
d. Decrease 2.7%
If YTM increase by 20%, the market price of Bond- A will change to:
a. 110
b. 106
c. 100
d. 98.40
Adjustment entry for bad debts is:
a. Bad Debts Dr. to P & l A/c or
b. Provision for bad & doubtful a/c Dr. to bad Debts
c. Bad debts Dr. to Debtors Cr.
d. P & L A/c Dr. to bad Debts Cr.
On a bond. the investor is subject to interest rate risk on account of (a) re-investment of annual
interest (b) capital loss on account of change in the value of bond due to increase in market
interest rates.
a. Only (a)
b. Only (b)
c. A and b both
d. None of these
If duration of a bond is 5 years, which of the following statement would be true:
a. Its payable after 5 years
b. Interest rate risk will disappear on the bond, if the holding of bond is for 5 years
c. No change in value of bond will take place within 5 years
d. Change in price of bond within 5 years will not affect the investor.
Which of the following expenses by a firm cannot be taken as part of capital expenditure:
Trotal.com
Page 6
42.
43.
44.
45.
46.
47.
48.
Trotal.com
Page 7
Page 8
57.
58.
59.
60.
61.
62.
63.
Trotal.com
Page 9
64.
65.
66.
67.
68.
69.
Trotal.com
Page 10
Page 11
77.
78.
79.
80.
81.
82.
83.
Trotal.com
Page 12
85.
86.
87.
88.
89.
90.
d. Endorsees account
When loss of stock takes place due to theft or fire etc. it is called:
a. Total loss
b. Normal loss
c. Contingent loss
d. Abnormal loss
A sum of rs.2500 has been spent by a firm to replace the worn-out parts of the machinery. This
will be trusted as:
a. Revenue expenditure
b. Capital expenditure
c. Deferred revenue expenditure
d. Intangible asset
All receipts and payment made In cash, including cheques are recorded in:
a. Balance sheet
b. Income and expenditure account
c. Receipt and payment account
d. Profit and loss account
Which of the following kinds of accounts are recorded in the ledger:
a. Real accounts
b. Nominal accounts
c. All kinds of accounts
d. Personal accounts
The balance in the pass books is Rs.54000 and it is observed that bank received Rs.2000 through
NEFT and also remitted Rs.13000 through NEFT, as per standing instruction. What is the balance
as per cash book:
a. 43000
b. 65000
c. 54000
d. 39000
If the proprietor has made certain drawings, the profit will be calculated as under:
a. Amount drawings will be added back to the capital to find out the profit
b. Amount the drawings will be reduced from the capital to find pout the amount of profit
c. The amount of drawings has already been accounted for and cash reduced to that extent
d. None of the above
Accounts and auditors report a banking company is required to be published (a) in a newspaper
circulating in the place where the banking company is having its principal office k(b) it is to be
published within 6 months of close of its financial year. (c) this is requirement of rule 15 of
Banking regulation (Companies) Rules.
a. A to c all correct
b. Only a and c correct
Trotal.com
Page 13
91.
92.
93.
94.
95.
96.
Trotal.com
Page 14
Page 15
C
D
C
A
A
D
A
D
C
D
B
B
A
C
C
D
D
A
C
C
A
B
A
C
D
C
B
D
A
A
B
C
A
C
A
D
C
B
A
B
Page 16
B
B
C
C
C
A
D
D
B
C
B
A
D
C
C
D
A
A
B
A
B
C
C
B
D
A
B
D
A
C
D
A
C
C
A
A
A
B
B
C
Page 17
Trotal.com
Page 18