Sample Questions
 

 

1.  Which of the following statements is not true?

  1. The auditor’s responsibility for detection and prevention of errors and frauds is similar.
  2. Management fraud is more difficult to detect than employee fraud
  3. Internal control system reduces the possibility of occurrence of employee fraud and management fraud
  4. All the statements are correct

 

2. ‘Goods sent on approval basis’ have been recorded as ‘Credit sales’. Which Type of an error is it?

  1. Error of Omission
  2. Error of Commission
  3. Error of Principle
  4. Compensating Error

 

3. Cost of material consumed under LIFO costing method is Rs. 6,000. Conversion Cost is Rs. 16,500. 1,000 units of the product were manufactured out of which 800 @ Rs. 30 units sol There were no beginning and ending inventories of work in process and finished goods. The per unit cost is :

  1. Rs. 10
  2. Rs. 16.50
  3. Rs. 22.50
  4. Rs. 28.50

 

4. Deduction under section 80D in respect of medical insurance premium is allowed to:

  1. Any assessee
  2. An individual or HUF
  3. Individual or HUF who is resident in India d) Individual only
  4. None of the above

 

5. The future value of a Rs.12,000 investment made today, which gives an annual rate of return of 10% per annum, after one year should be _________.

  1. Rs.13,250
  2. Rs.13,200
  3. Rs.12,900
  4. Rs.12,600

Answers

1 (C)

2 (C)

3 (C)

4 (B)

5 (B)

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