Account Officer Examination conducted by Electricity Department of Punjab 2012
- In case of Chartered Accountant in practice of proprietary firm owned by a chartered accountant, how many audit assignments can be taken in respect of private and other companies?
(1) 25
(2) 30
(3) 40
(4) 10 - Which of the following industries would most likely use a process cost accounting system?
(1) construction
(2) beer
(3) custom printing
(4) consulting - Which of the following is not a capital asset ?
(1) agricultural land situated in a village
(2) goodwill of business
(3) jewellery
(4) car used for business purpose - Which of the following sections of the Indian Companies Act 1956 defines government company?
(1) section 617
(2) section 223
(3) section 332
(4) section 146 - What is the amount of exemption allowed to mother or father when income of a minor child is clubbed with the income of mother or father ?
(1) Rs. 1,000
(2) Rs. 2,500
(3) Rs. 1,500
(4) No deduction - Which among the following generated information concerning the probability distribution of a profit rate ?
(1) Electronic spread sheet
(2) Artificial Intelligence
(3) Time series analysis
(4) Discriminant Analysis - Which of the following sections is related to the appointment of the cost auditor ?
(1) section 224
(2) section 228
(3) section 112
(4) section 332 - After which date the Standard on Auditing (SA) 580 is effective for audits of financial statements ?
(1) 1/4/2009
(2) 1/4/2010
(3) 1/4/2000
(4) 1/4/1990 - “Where is the goodwill purchased recorded in the following financial statement?”
(1) can be shown in the assets side of the balance sheet
(2) can be shown in the liabilities side of the balance sheet
(3) can be shown in the trading account
(4) can be shown in the profit and loss account - From the end of relevant assessment year, within how many months assessment (u/s 143) should be completed –
(1) 18 months
(2) 21 months
(3) 24 months
(4) 30 months - Which costing method is currently widely used for external reporting?
(1) Full costing
(2) variable costing
(3) direct costing
(4) standard costing - If fixed cost is Rs. 10,000, P/V ratio is 50%, then calculate the break-even sales.
(1) Rs. 20,000
(2) Rs. 30,000
(3) Rs. 40,000
(4) Rs. 15,000 - What will be the treatment of the share forfeiture account at the time of forfeiture of defaulted shares?
(1) debited with called up amount of the forfeited shares
(2) debtied with paid up amount of the forfeited shares
(3) credited with called up amount of the forfeited shares
(4) credited wiht paid up amount of the forfeited shares - Under which head the brought forward loss can be set if a non-speculative business discountinued in P.Y. 2013-14?
(1) income for others
(2) speculative business
(3) under any head of income
(4) income from business (non speculative) - For which type of business, auditing is compusory?
(1) joint stock companies
(2) charitable trusts
(3) partnership
(4) registered society - When was the International Auditing Practices Committee established ?
(1) 1978
(2) 1968
(3) 2001
(4) 2009 - Which of the following factors is used as a multi-goodwill of a business?
(1) average capital employed in the business
(2) simple profits
(3) number of years purchase
(4) normal rate of profits - Which of the following constitutes the basis on which joint costs are more frequently allocated?
(1) physical volume of output
(2) conversion costs
(3) direct materials and direct labour
(4) market value - A firm has a Degree to Total Leverage of 3, If the sales increased by 10%, then by how much the EPS will increase?
(1) 20%
(2) 10%
(3) 15%
(4) 30% - Under the provisions of Income Tax Act, 1961 which are those sections which specify the clubbing of income under special circumstances?
(1) section 60 to 69
(2) section 60 to 64
(3) section 60 to 67
(4) section 68 to 69 - Which section of the Indian Companies Act, 1956 deals with the disqualificaiton of the Auditors?
(1) section 226
(2) section 224
(3) section 116
(4) section 112 - Which of the following transactions would cause a change in owner’s equity?
(1) amount paid to sundry creditors
(2) sale of machinery on credit for a price above cost
(3) borrowings from a bank
(4) purchase of furniture by cash - Other things remain the same, what will be the impact on the Degree of Operating Leverage of a firm, if it issues equity shares in lieu of debentures?
(1) DOL will increase
(2) DOL will decrease
(3) DOL will remain the same
(4) DOL will become zero - How much three years average turnover is required to do the statutory audit, for measuring the efficiency of the internal audit systems of the companies?
(1) Rs. 2 crorex
(2) Rs. 1 crores
(3) Rs. 5 crores
(4) Rs. 3 crores - Pursuant to the provision of section 78 of companies Act, 1956 under what name and style, the share premium amount collected, is classified?
(1) securities premium account
(2) capital reserve account
(3) general reserve account
(4) sinking fund account - What will be the final entry for recording the transaction in the books in case the debentures are issued as collateral security? If the journal entry needs to be passed in the books of accounts.
(1) credit debentures a/c and debit cash a/c
(2) debit debenture suspense a/c and credit cash a/c
(3) debit debenture suspense a/c and credit debenture a/c
(4) debit cash a/c and credit the loan a/c for which security is given - Which of the following information systems is used at the shop floor management level?
(1) DSS
(2) OAS
(3) EPS
(4) TPS - Which of the following method of costing is also called as full costing or total costing?
(1) Absorption costing
(2) Marginal costing
(3) Process costing
(4) Contract costing - What do you mean by Lead time in Inventory management?
(1) Work in process time
(2) The time gap between placing of the order and procuring the material
(3) The period in which a whole lot of inventory is consumed
(4) The time gap between two orders - What is the prescribed form for an individual, having income from salary or family pension and interest?
(1) ITR -1
(2) ITR-2
(3) ITR-3
(4) ITR-4 - What is the process of charging overhead to work-in-process based on a predetermined application rate multiplied by actual input known as?
(1) Normal costing
(2) Standard costing
(3) Actual costing
(4) Product costing - If the yield rate of a company is 14%, normal rate of return is 8% and nominal value of its equity share is Rs. 10, then what will be the value of an equity share of the company?
(1) 17.50 Rs.
(2) 21.50 Rs.
(3) 11.75 Rs.
(4) 18.25 Rs. - Which budget commonly takes the form of budgeted profit and loss account and balance sheet ?
(1) Master budget
(2) Flexible budget
(3) Fixed budget
(4) Cash budget - Which section is related to rectification of mistakes?
(1) u/s 145
(2) u/s 147
(3) u/s 154
(4) u/s 156 - The auditors are said to have issued an unqualified opinion when they-
(1) are not independent of the company being audited
(2) are not familiar with the company or the industry within which the company operates
(3) consider the financial statements a fair presentation
(4) are not qualified for being appointment as the auditor of the company - Which of the following information systems respond immediately to the physical system?
(1) In-line system
(2) On-line system
(3) Off-line system
(4) Real-time system - What time limit has been stipulated for appointment of the first Auditors of the company?
(1) within six months from the date of registration of the company
(2) in the first AGM of the company
(3) within one month of the date of registration of the company
(4) within twelve months of the date of registration of the company - Which of the following is the lowest class among the chain of Income Tax authorities?
(1) commissioner officer
(2) inocme tax officer
(3) tax recovery officer
(4) inspector of income tax - In DBMS, which tow files are used during operation ?
(1) query language and utilities
(2) data manipulation language and query language
(3) data dictionary and transaction log
(4) data dictionary and query language - Maximum for how many companies a person, who is not in full-time employment elsewhere, can be appointed as an auditor?
(1) 20
(2) 15
(3) 10
(4) 25 - Which of the following sections is related to the branch auditing?
(1) section 228
(2) section 118
(3) section 223
(4) section 332 - An investor purchased 100 shared of Rs. 100 each at a price of Rs. 140 from the market. If the investor received a dividend of 10%, then what will be the yield on investment?
(1) 7.14%
(2) 8.56%
(3) 10%
(4) 8.25% - When an existing, company offers its shares for sale to the existing shareholders it is known as-
(1) bonus issue
(2) right issue
(3) private placing
(4) offer for sale - Find of ODD one out from the following expenses under the head “Profits and Gains of Business or Profession ?”
(1) bad debts
(2) income tax
(3) sales tax
(4) excise duty - The contribution from a project is Rs. 100 lakhs and EBIT is Rs. 50 lakhs. Calculate the Degree of Operating Leverage.
(1) 3.5
(2) 2
(3) 1.5
(4) 2.5 - When was the Auditing and Assurance Standards Board (ASSB) established ?
(1) 2002
(2) 2003
(3) 2005
(4) 2001 - Who fixes the remuneration of the auditors appointed before the first Annual General meeting under the companies act, 1956?
(1) the management of the company
(2) the board of directors
(3) it is specified in the memorandum of the company
(4) it is specified in the Articles of the company - for the FY ending 31-3-2013, under the provisions of Income Tax Act, 1961 & virtue of section 44 AB, what sales/gross receipt limit has been made mandatory to get the accounts audited?
(1) Rs. 30 lakh
(2) Rs. 1 crore
(3) Rs. 60 lakh
(4) Rs. 40 lakh - How proposed dividend should be treated in the balance sheet as per revised Schedule VI?
(1) share capital
(2) borrowings
(3) reserves and surplus
(4) current asset - The profit of a company is Rs. 55,000. If the manager’s commission is 10% on profit, after charging his commission, then calculate the commission?
(1) Rs. 5,000
(2) Rs. 5,500
(3) Rs. 3,900
(4) Rs. 4,500 - In which year the Capital Issues ( Control ) Act 1947 has been repealed by the Central Government?
(1) 1992
(2) 1990
(3) 1980
(4) 2000 - For Zenson Ltd, the selling price of sandals is Rs. 40 and contribution to sales ratio is 25 percent. Its income statement revelas its fixed costs as Rs. 80 lakh, interest payment as Rs. 30 lakh and preference dividend payment as Rs. 12 lakh. It the applicable tax rate is 40 percent then what is the output level at its overall break-even point?
(1) 13 lakh units
(2) 11 lakh units
(3) 9 lakh units
(4) 10 lakh units - Under what circumstances as Auditor would be held responsible for punishment in pursuance of the provisions of section 197 of IPC ?
(1) negligent discharge of their duties
(2) misfeasance
(3) misstatements in the prospectus
(4) fraud and for furnishing false information - Which is the following does not form a part of Directors’ Report?
(1) the amount of dividend declared
(2) the status of affairs of the company
(3) the amount proposed to be transferred to reserves
(4) appointment of additional director. - For what purpose according to section 78 of the companies act, the amount in the share premium a/c cannot be used ?
(1) issuing of fully paid bonus shares
(2) writing off losses of the company
(3) writing off preliminary expenses of the company
(4) writing off commission or discount on issue shares. - What do you mean by technical insolvency?
(1) bnakruptcy on the part of the firm
(2) finability to pay debts by a firm for the purchase of machinery
(3) inability to pay debts by a firm for the transfer
(4) inability to honor its current liabilities. - How many copies of a report, the cost auditor is required to submit to the central Government, in the prescribed form, along with its copy to the Company?
(1) three copies
(2) two copies
(3) four copies
(4) six copies - Under which head salary of M.P. will be taxable?
(1) income from other sources
(2) salaries
(3) capital gains
(4) profit from business and profession - Which of the following items is covered u/s 80D?
(1) repayment of loan, taken for higher education
(2) medical treatment of handicapped dependent
(3) medical insurance premium
(4) dontations to national sports fund - How computers should be classified by a business if taken on hire-purchase for a period of twelve months?
(1) fixed assets
(2) current assets
(3) intangible assets
(4) Not as an asset - What is the due date of filling return of income in case of an individual ?
(1) 30th June
(2) 31st August
(3) 31st July
(4) 30th September - After how many years from the date of issue (according to the companies act 1956) companies are not allowed to issue irredeemable or redeemable preference shares ?
(1) 12 years
(2) 10 years
(3) 8 years
(4) 20 years - Which of the following section makes it compulsory for the companies to keep proper books of accounts.
(1) Section 209
(2) section 118
(3) section 223
(4) section 332 - Which of the following intangible assets is considered as an unidentifiable intangible asset?
(1) goodwill purchased
(2) patents
(3) copyrights
(4) trademarks - What does CPU (Central Processing unit) consists of ?
(1) input, output and processing
(2) control unit, primary storage and secondary storage
(3) control unit, arithmetic-logic unit and primary storage
(4) input, processing and storage - Assume the electricity cost for a company has two components (1) a minimum charge per month, no matter how much electricity is used during that month and (2) a charge for every hour used. This type of cost is known as-
(1) variable cost
(2) fixed cost
(3) semi variable cost
(4) sunk cost - As per the provisions of the Indian Income Tax Act, 1961 under which section, a partnership firm which had sold a residential house after 1-4-2000, can get exemption on long-term capital gains, subject to certain specified condition?
(1) Sec. 54 EC
(2) Sec. 54
(3) Sec. 54D
(4) Sec. 54F - Where should the balance in “goods sent to branch” account be transferred for manufacturing concerns as per debtors method?
(1) trading account
(2) sales account
(3) bank account
(4) branch account - Production is primarily based on which of the given factors?
(1) the revenues budget
(2) the administrative costs budget
(3) projected inventory levels
(4) the capital expenditures budget - If the proposed dividend appears in the balance sheet of subsidiary company, while preparing the consolidated balance sheet then what should be the treatment of the share of minority shareholders?
(1) shown under proposed dividend in consolidated balance sheet
(2) credited to investment account
(3) debited to consolidated profit and loss account
(4)credited to goodwill account - Which of the following methods of remuneration gives stability of labour cost of the employers?
(1) straight piece work
(2) premium bonus scheme
(3) measured day work
(4) group bonus scheme - Under what circumstances Qualified Report is given?
(1) when the auditor is not completely satisfied with the accounts
(2) when auditor is unable to get the required information
(3) when there is a significant error in the accounts
(4) when the management is not completely satisfied with the accounts. - How much deduction is allowed (U/S 16) to a government employee who receives a salary of Rs. 1,20,000 p. a, entertainment allowance of Rs. 10,000 p.a. and spends Rs. 600 on entertainment, in the previous year ?
(1) Rs. 5000
(2) Rs. 6000
(3) Rs 3000
(4) Rs/ 4000 - When did the Income Tax Act, 1961 came into force ?
(1) 1-5-1962
(2) 1-4-1962
(3) 1-4-1963
(4) 1-5-1963 - Who will fix the remuneration (u/s 619 of the companies Act, 1956) of the auditor in case the auditor is appointed by the C & AG of India?
(1) board of directors
(2) central government
(3) shareholders
(4) company in the general meeting - What is the formula for calculating recorder level in inventory management?
(1) (Demand/EOQ) x Ordering Cost
(2) Lead time in days x Daily average usage
(3) (EOQ/2) x Ordering cost
(4) Minimum usage x Minimum re-order period + EOQ - if the current assets are 160% of current liabilities , then an increase of 10% in current assets will increase the ratio by how much?
(1) 10%
(2) 12%
(3) 11.50%
(4) 13% - Based on actual hours worked, which variance represents the difference between total actual factory overheads incurred and budgeted factory overheads?
(1) idle time variance
(2) variable spending variance
(3) volume variance
(4) total overhead controllable variance - Which of the following receipts is included in calculation of net profits, for the purpose of calculating remuneration payable to managerial personnel?
(1) subsidy received from any government
(2) profit on sale of forfeited shares
(3) profit on sale of part of undertaking
(4) profit on issue of shares at a premium - If a showroom is taken on a rent of Rs. 20,000 p.m. then how much tax at source (FY 2013-14) should be deducted?
(1) Rs. 24,000
(2) Rs. 20,000
(3) Rs. 32,000
(4) Rs. 15,000 - Under the provisions of Company’s Act 1956 what time limit has been fixed for submission of Annual report after the AGM?
(1) 7
(2) 14
(3) 30
(4) 4 - Which of the following is an example of non-volatile memory ?
(1) ROM
(2) RAM
(3) LSI
(4) VLSI - What do you mean by Under trading?
(1) having low among of working capital
(2) decrease in long term loans
(3) sales are less as compared to assets employed
(4) assets are less as compared to sales generated - Which was the first machine which performed successfully a long series of arithmetic and logical operations?
(1) mark-1
(2) ENIAC
(3) EDSAC
(4) UNIVAC-1 - Which of the following article of the Constitution deals with the CAG of India?
(1) Article 148-151
(2) Article 112-114
(3) Article 115-118
(4) Article 132-135 - In case of contract costing when a zero value of attributable profit should be assumed?
(1) any foressable loss is estimated for a later stage in the contract
(2) the interim estimated profit is less than 10% of the value certified
(3) the profit outcome of the contract cannot be estimated with reasonable certainty
(4) the contract is less than 60% complete - For which of the following act the auditor will be held liable under civil and criminal liabilities?
(1) Mis statement in the prospectus
(2) Professional misconduct
(3) Negligent discharge of his duties
(4) Fraud and furnishing false information - What will be the Degree of Operating Leverage, if the output is less than the operating break-even point?
(1) equal to zero
(2) equal to 1
(3) equal than zero
(4) greater than 1 - Which of the following parts of hardware mostly used in the input phase of a computer based information system?
(1) printer
(2) diskette
(3) monitor
(4) keyboard - In how many installments an individual assesee is liable to pay advance tax?
(1) 3
(2) 4
(3) 2
(4) 5 - What do you mean by Specified Date (U/S 44 AB, Income Tax Act 1961) ?
(1) 30 Jun
(2) 31 Jul
(3) 30 Sep
(4) 30 Nov - What is the formula for calculating Net Capital employed?
(1) Gross fixed assets + Current assets
(2) Gross fixed assets + Current assets + Depreciation
(3) Current assets- Current liabilities
(4) Fixed assets + Depreciation + Current assets-Current liabilities - Name the variance which results from combining material in a ratio different from the standard direct materials?
(1) direct material usage variance
(2) direct material price variance
(3) direct material mix variance
(4) direct material yield variance - The annual demand for an item is 4800 units. The unit cost is Rs. 9 and inventory carrying charges 45% p.a. If the cost of one procurement is Rs. 300. Then calculate the EOQ.
(1) 843 units
(2) 750 units
(3) 680 units
(4) 700 units - For how many assessment years unabsorbed depreciation can be carried forward for set off ?
(1) Unspecified period
(2) 5 years
(3) 7 years
(4) 8 years - Who controls income tax department?
(1) CBDT
(2) ITO
(3) Finance Minister
(4) Income tax commissioner - In which of the following method of pricing, issues are close to current economic values?
(1) last in first out prime
(2) first in first out price
(3) highest in first out price
(4) weighted average price - Which of the following is treated as “contingency” as per AS-4?
(1) commitments on long term lease contracts
(2) providing for depreciation of a fixed asset
(3) arrears of fixed cumulative dividends or un-called liability on shares said
(4) liability under retirement benefit plan - In which year International Federation of Accounts (IFAC) was established?
(1) 1982
(2) 2001
(3) 1977
(4) 1990 - Which of the following will be treated as capital reserve?
(1) A sum set aside to provide for repayment of debentures
(2) the surplus arising on a professional revaluation of fixed asset
(3) an amount set aside to provide for the increased cost of replacement of fixed asset
(4) a sum retained to provide for loss that may arise out of doubtful debts