Sample Questions
1. Which of the following statements is not true?
- The auditor’s responsibility for detection and prevention of errors and frauds is similar.
- Management fraud is more difficult to detect than employee fraud
- Internal control system reduces the possibility of occurrence of employee fraud and management fraud
- All the statements are correct
2. ‘Goods sent on approval basis’ have been recorded as ‘Credit sales’. Which Type of an error is it?
- Error of Omission
- Error of Commission
- Error of Principle
- 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 :
- Rs. 10
- Rs. 16.50
- Rs. 22.50
- Rs. 28.50
4. Deduction under section 80D in respect of medical insurance premium is allowed to:
- Any assessee
- An individual or HUF
- Individual or HUF who is resident in India d) Individual only
- 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 _________.
- Rs.13,250
- Rs.13,200
- Rs.12,900
- Rs.12,600
Answers
1 (C)
2 (C)
3 (C)
4 (B)
5 (B)
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