0707 FA(CFA510) - Question Paper Financial Accounting(CFA510 July 2007 Answer all questions Marks are indicated against each question 1 Under

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Question Paper Financial Accounting (CFA510): July 2007 Answer all questions. Marks are indicated against each question. 1. Under Hybrid system of accounting for revenue and expenses, (1 mark) (a) Accrual basis for revenue and cash basis for expenses is used (b) Accrual basis for expenses and cash basis for revenue is used (c) Accrual basis is used irrespective of whether an item is revenue or an expense (d) Cash basis is used irrespective of whether an item is revenue or an expenses (e) Varies according to the nature of the items of revenue and expenses. < Answer > 2. Revenue reserve represents (1 mark) (a) Accumulated retained earnings from the profits (b) Bad debts realized (c) Premium on issue of debentures (d) Gain out of revaluation of assets (e) Premium on issue of shares. < Answer > 3. Who among the following is not an internal user of ‘Financial Statements’? (1 mark) (a) Board of Directors (b) Partners (c) Investors (d) Managers (e) Officers. < Answer > 4. Which of the following is not considered as an accounting transaction? (1 mark) (a) Sale of goods for cash (b) Payment of salary of office staff (c) An agreement to sell (d) Purchase of office furniture (e) Repayment of bank loan. < Answer > 5. Ex-post income means (1 mark) (a) Original expectation of expected future cash flows at the end of the period less original expectation of expected future benefits at the beginning of the period (b) Capital at the end of the period less capital at the beginning of the period (c) Revised expectation of expected future cash flows at the end of the period less original expectation of expected future benefits at the beginning of the period (d) Gross sales less returns (e) The profit which is disclosed in profit and loss account. < Answer > 6. The net amount collectible in the event of an asset’s disposal is known as (a) Historical value (b) Current value (c) Present value (d) Realizable value < Answer >
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(1 mark) (e) Written down value. 7. Which of the following is not a current asset? (1 mark) (a) Inventories (b) Debtors (c) Cash at Bank (d) Patents (e) Prepaid expenses. < Answer > 8. The concept which states that every transaction has two aspects is known as (1 mark) (a) Duality concept (b) Matching concept (c) Realization concept (d) Consistency concept (e) Conservatism concept. < Answer > 9. A purchase day book is used to record (1 mark) (a) All credit purchases of fixed assets (b) All cash purchases only (c) All credit and cash purchases (d) All credit purchases of goods only (e) All credit purchases and cash discount. < Answer > 10. Which accounting entry is to be passed to make a full and final settlement for a payment of Rs.10,000 to Mr. Abuja at a discount of 2% (payment is made through a cheque)? Rs. Rs. (1 mark) (a) Abuja’s account Dr. 10,000 To Bank account 9,800 To Discount received account 200 (b) Abuja’s account Dr. 9,800 To Bank account 9,800 (c) Purchases account Dr. 10,000 To Bank account 10,000 (d) Abuja’s account Dr. 10,000 To Bank account 10,000 (e) Abuja’s account Dr. 10,000 To Trade discount 200 To Bank account 9,800.
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This note was uploaded on 07/20/2010 for the course ICFAI CFA taught by Professor Cfa during the Fall '09 term at Indian School of Business.

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0707 FA(CFA510) - Question Paper Financial Accounting(CFA510 July 2007 Answer all questions Marks are indicated against each question 1 Under

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