0901 FA (CFA510) - Question Paper Financial Accounting...

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Page 1 of 30 Question Paper Financial Accounting (CFA510): January 2009 Answer all 75 questions. Marks are indicated against each question. Total Marks : 100 1. Under Hybrid system of accounting for revenue and expenses, (a) Accrual basis for revenues and cash basis for expenses is used (b) Accrual basis for expenses and cash basis for revenues is used (c) Accrual basis is used irrespective of whether an item is a revenue or an expense (d) Cash basis is used irrespective of whether an item is a revenue or an expense (e) Accrual basis for capital items and cash basis for revenue items is used. (1 mark) <Answer> 2. Who among the following is an external user of ‘Financial Statements’? (a) Board of Directors (b) Partners (c) Investors (d) Managers (e) Officers. (1 mark) <Answer> 3. Unidentified intangible assets are amortized in recognition of (a) Conservatism concept (b) Going concern concept (c) Matching concept (d) Time period concept (e) Business entity concept. (1 mark) <Answer> 4. When the convention of conservatism is applied to the Balance Sheet, it results in an (a) Understatement of assets (b) Understatement of liabilities (c) Overstatement of both assets and liabilities (d) Understatement of both assets and liabilities (e) Understatement of both liabilities and capital. (1 mark) <Answer> 5. Which of the following statements is false ? (a) Ledger is the main book of account in which all accounts are maintained (b) The credit balance of a nominal account indicates income received (c) Debit balance in commission account indicates commission received in advance (d) Cash account always shows debit balance (e) Credit balance of bank account indicates bank overdraft. (1 mark) <Answer>
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Page 2 of 30 6. Raasi Electronics, a dealer in electronic goods, has furnished the following information with respect to credit purchases for the month of December 2008: Date Particulars No. of units Rate per unit (Rs.) Trade Discount (%) Dec.01 LCD TV (21”) 50 20,000 10 Dec.01 Colour TVs 20 12,000 10 Dec.09 Six-in-one Music System 20 8,000 10 Dec.09 Two-in-one Music System 20 3,000 10 Dec.19 DVD packs 200 60 5 Dec.22 Scribbling pads 240 70 5 Dec.22 Bill books 200 50 5 The total of purchase day book for the month of December 2008, was (a) Rs.13,25,400 (b) Rs.13,53,800 (c) Rs.13,14,000 (d) Rs.13,41,800 (e) Rs.13,37,000. (1 mark) <Answer> 7. Which of the following events/transactions is not recorded in the Triple column cash book of a business? (a) Withdrawal of cash by the proprietor for domestic expenditure (b) Withdrawal of cash from the firm bank account for repaying house building loan of the proprietor (c) Purchase of a new asset in exchange of an old asset; paying part amount by cheque (d) Receipt of dividend by proprietor on personal investments (e) Loss of stock by fire for which insurance claim is received by cheque. (1 mark)
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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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0901 FA (CFA510) - Question Paper Financial Accounting...

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