NEW
Font size
WorksheetsAccounts and taxation
Total questions: 62
Worksheet time: 31mins
IND AS 115 is a speaks on
Accounting of fixed assets
Accounting of lease contracts
Accounting of employee benefits
Accounting of revenue recognition
Investment of excess money by PVSL in Mutul fund falls under ------in cash flow statement
Cash flow from operating activities
Cash flow from financing activities
Cash flow from investing activities
None of the above
The right to use asset is recognized under IND AS 116 for lease term of
For total lease term in the lease agreement
For non -cancellable period of the lease agreement
Lessee can choose any one of above with proper facts in place
None of the above
What is qualifying asset under IND AS 23
Asset that takes more than 12 months to complete the construction
Asset that takes substantial period of time for completion
No such restriction but only condition is that asset should not be in a useable condition at the time of acquisition
None of the above
What is the Minimum Alternate Tax Rate for AY 2020-21
18.5%
18%
15%
30%
X Ltd, a Company located in Karnataka sold goods Y Ltd located at Hyderabad but Y Ltd asked to ship the goods to Pondicherry. X Ltd should charge
IGST
UGST
SGST and CGST
GST not applicable
E Invoicing under GST is currently applicable to supplier whose turn over is
250 Crores and above
Above 250 Crores
500 crores and above
Above 500 crores
X Ltd, a car renting Company purchased Range Rover car for one of its Director. Can X Ltd take ITC under GST
Always Yes
Always No
Can take if GST is not capitalized
None of the above
CARO 2020 has --------number of clauses
10
15
20
None of the above
X Ltd accepted cash Rs 3 lacs from its customer. The penalty payable under section 269ST of the IT Act 1961 is Rs
18% of the amount of cash received
30% of the amount of cash received
Rs 3 lacs
As decided by the Assessing Officer
Under section 206C(1H) TCS to be collected if the Value/Aggregate Value received for Goods from a buyer is more than ---------- in a financial year
60 lacs
50 lacs
55 lacs
15 lacs
Which of the following tax will be abolished by the GST?
Corporation tax
Income Tax
Service Tax
Wealth Tax
Rate of interest for non - deduction of TDS is
12% PA
18% PA
15% PA
None of the above
Rent Free Accommodation given to an employee by the employer is a
Allowance
Perquisite
Profit in lieu of salary
None of the above
Under IND AS 115, the revenue is recognized when
Invoice is raised
Advance is received
Customer obtains the control of the asset
When all above conditions satiesfied
MAT credit is
A Liability in the books of account
An expenses in the books of account
An Asset in the books of account
An Income in the books of account
As per acceptance of deposit Rules 2019, Every Company is required to file Form DPT 3 by ----after the end of the year
By 31st July
By 30th September
By 30th June
Any time
As per CARO 2020, physical verification of the inventory must be conducted at least
Once in 3 months
Once in 6 months
Once in 12 months
None of the above but at reasonable intervals
If return of income is not filed with in the due date provided under IT Act 1961, then
None of the losses can be carried forward
Only business loss can be carried forward
Only house property loss can be carried forward
Only Capital loss can be carried forward
The preferable method of presenting the cash flow under IND AS 7 is
Indirect method
Direct method
None of the above
As per GST law with in how many days invoice has to be raised from the date of supply of service
With in one week
With in 10 Days
With in 30 Days
With in 180 days
As per Companies Act 2013, the gap between two AGM cannot exceed
6 months
12 months
15 months
24 months
How many categories (rate) of GST rate prevalent
4 categories
5 Categories
3 categories
None of the above
The long term assets that have no physical existence but are rights that have value is known as
Current assets
Fixed assets
Intangible assets
Good Will
Two basic measures of liquidity position of an entity are
Inventory turnover and Current ratio
Gross Profit ratio and Operating ratio
Current ratio and Quick ratio
Current ratio and Average Collection period
If the debtors turn over ratio is high, then it indicates
It indicates the company is good in collections
The Company is bad in collection
Company is not giving credit
None of the above
PAWL gives loan to PADL from the loan it has received from PVSL falls under
Cash flow from operating activities
Cash flow from financing activities
Cash flow from investing activities
None of the above
Mr X an employee of Y Ltd taken Housing loan and paid interest Rs 150,000 and Principal Rs 300,000 during the FY. What is the maximum benefit he can take file filing his tax return
Rs 450,000
Rs 200,000
Rs 300,000
None of the above
As per Clause (ii) of CARO 2020, auditor has to report variation in physical verification of inventory only if it is
5% or more of aggregate for each class of inventory
15 % or more of aggregate for each class of inventory
10 % or more of aggregate for each class of inventory
All kind of variation
If the GST return is not filed with in the due date, then entity has to pay late filing fee
Rs 500 per day
1.5% of the tax payable per month
Rs 200 per day
Rs 5000
Prepaid Expenses appear in a Company’s Balance Sheet under the Sub-head
Other Current Assets
Short-term Loans & Advances
Intangible Assets
Other Non-Current Assets
While calculating cash flow from operating activities which will be added :
Increase in Inventory
Increase in Creditors
Decrease in Bills Payable
Increase in Trade Receivables
An Example of cash flow from financing activity is
Payment of dividend
Receipt of dividend
Cash received from customer
Purchase of fixed asset
Under IND AS 116 requires lessee to recognize assets and liabilities for all leases with a term of
12 month and above
Above 12 months
Irrespective of months but depending on amount of lease payment
None of the above
X Ltd received advertising services from Mr X for Rs 100,000. X Ltd has to deduct TDS at
10% of the amount
2% of the amount
1% of the amount
Not required to deduct
X Pvt Ltd, which is subsidiary of Y Ltd, have paid up capital and free reserves is Rs 1 crores and have a bank borrowing of Rs 2 crores and turn over Rs 20 Crores. Does CARO 2020 applicable to X Pvt Ltd
Yes
No
Some clauses are applicable
Auditor can decide
Entity borrowed money and started construction of asset. Due to COVID 19 pandemic it has to suspend construction due to non availability of people. The interest paid during the period it suspended construction can be
Can be capitalized under IND As 23
Cannot be capitalized under IND AS 23 ( Para 20)
It is the choice of entity to capitalize or not to capitalize
Auditor can decide
An entity purchased a wheel aligning machine for Rs 500,000 by borrowing money from Bank. Can interest paid to bank capitalized under IND AS 23
Yes
No
Entity has choice
None of the above
Under IND AS 116, the Right to Asset is amortized over period of
During lease term on equal basis
Applying the depreciation rate of similar asset
Entity can determine but disclose in the notes
None of the above
An entity purchases building by issuing debenture, the cash flow arising is
Cash flow from investing activities
Cash flow from financing activities
Both the above
None of the above
X Ltd engaged in the business of sale and service of car purchased wheel alignment machine costing Rs 800,000
It can claim additional depreciation under income tax act
It can claim provided it is not claiming normal depreciation
It cannot claim additional depreciation under income tax act
None of the above
Maximum deduction available to an individual under section 80C of the IT Act 1961 is
Rs 200,000
Rs 150,000
Rs 300,000
No such limit
MAT (Minimum Alternate Tax) is computed on
On taxable income
On net profit as per statement of profit and loss
On sales
On book profit
X Ltd failed to pay dues to Electricity Board. Does this will come for reporting under CARO 2020
Yes reporting will come
Auditor can take a call
No reporting required
Management can take a call
Break even quantity is calculated by using formula
Fixed Expenses / Contribution per unit
Fixed Expenses / gross profit per unit
Fixed Expenses / Net profit per unit
None of the above
Return on investment is a
turnover ratio
short term solvency ratio.
profitability ratios
long term solvency ratio
Which of the following is used for International Monetary Transfer?
RTGS
NEFT
SWIFT
None of these
The rate at which RBI lends to banks under the Liquidity Adjustment Facility (LAF) is called
Repo Rate
Reverse Repo Rate
Bank Rate
Cash Reserve ratio
Depreciation is calculated from the date of
Purchase of assets
Receipt of assets at business premises
Starting of commercial Use of asset
Assets installed
Which of the following statements is correct: A trial balance:
lists the balances in all the accounts maintained on double entry basis
proves the accuracy of the accounting records
is prepared by a business on the last day of its accounting period
lists all entries made for accounting for business transactions
An entity borrowed money on 19 Mar 2020. Due to COVID 19 it could not commence construction activity soon and started the construction on 10-July-2020. Here date of commencement of capitalization of borrowing cost starts from --------date
10-July-2020
19- Mar-2020
Left to the choice of the entity but disclose in the notes
None of the above
MAT credit is allowed to be carried forward
5 Assessment Years
8 Assessment Years
10 Assessment Years
15 Assessment Years
Who has to get accounts audited under section 35 (5) of the CGST Act (GST Audit)
A registered dealer whose turn over exceeds 10 Crores
A registered dealer whose turn over exceeds 20 Crores
A registered dealer whose turn over exceeds 2 Crores
A registered dealer whose turn over exceeds 50 Crores
X Ltd an entity dealing with sale of cars and services in Kerala. How many GST registration it can have in Kerala
Only one
As many numbers it wants
Maximum two
None of the above
Y Ltd has GST registration in Kerala and Karnataka. Stock transfer of goods from Kerala division to Karnataka division is subject to tax
Always Yes
Always No
Company can decide
GST department can decide
Under section 206C (1F) of the IT Act 1961, which of below transactions attracts TCS
Sale of motor vehicle by OEM to dealer
Sales of Motor Vehicle by dealer to customer
Both the above
Mr. Ram owns a house property. He lets it to Laxman at`10,000 p.m. Mr Laxman sublets a part of it to Mr. Hanumantha on monthly rent of`5,000 p.m. Rental income of Mr Laxman is taxable under the head______________.
Income from Salary
Income from House Property
Income from Business
Income from Other Sources
The accounts that records expenses, gains and losses are
Nominal accounts
Real accounts
Personal accounts
None of the above
Tax Audit report for the Financial Year 2019-20 can be filed up to
31-Dec-2020
30-Nov-2020
31-Jan-2021
31-Mar-2021
X Ltd sold good of Rs 25 lacs to Mr Y on July 2020. Mr Y paid Rs 25 lacs on 15-Oct-2020 and paid advance of Rs 30 Lacs on the same day for future purchases. Does X Ltd collect tax u/s 206C(1H)
Yes on Rs 55 Lacs
Yes on Rs 25 lacs
Yes on Rs 30 Lacs
Yes on Rs 5 Lacs
X Ltd collects Rs 60 lacs from Mr Y for sale of building on 5-Oct-2020. What is the amount of TCS u/s 206(1H) X Ltd has to collect from Mr Y
Rs 6,000
Rs 4,500
Rs 750
None of the above
X Pvt Ltd, an auto dealer sells vehicle of Rs 45 lacs to Mr Y and also sells parts of Rs 10 lacs on 10-Oct-2020. What is the amount of TCS X Pvt Ltd has to collelct under section 206C(1H) of IT Act 1961
Rs 5500
Rs 4125
Rs 375
Not required to collect
