Tag: basis of accounting

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Multiple choice book keeping and accountancy bases of accounting cash and mercantile system basis of accounting basis of accounting system

Consider the following steps:

  1. Analysis of variances
  2. Initiating corrective action
  3. Measurement of actual performance
  4. Establishment of standards
The correct sequence of these steps in process of the following:

  1. 4, 3, 2, l

  2. 3, 4, 2, 1

  3. 4, 3, 1, 2

  4. 3, 4, 1, 2
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The standard process is: 1) Establish standards, 2) Measure actual performance, 3) Analyze variances, 4) Initiate corrective action.

Multiple choice book keeping and accountancy bases of accounting cash and mercantile system basis of accounting basis of accounting system

Greater chance of lower actual return than expected return and greater variation is indicated by _____________________.

  1. smaller standard deviation

  2. larger standard deviation

  3. smaller variance

  4. larger variance
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Standard deviation measures the dispersion of returns. A larger standard deviation indicates higher volatility and a greater range of potential outcomes, including lower returns.

Multiple choice book keeping and accountancy bases of accounting cash and mercantile system basis of accounting basis of accounting system

What deductions are allowed from the transaction value ____________________.

  1. Discounts offered to customers, subject to conditions

  2. Packing Charges, subject to conditions

  3. Amount paid by customer on behalf of the supplier, subject to conditions

  4. Freight charges incurred by the supplier for CIF terms of supply, subject to conditions
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under GST valuation rules, discounts offered to customers are deductible from the transaction value if they are known at or before the time of supply and are linked to specific invoices.

Multiple choice book keeping and accountancy bases of accounting cash and mercantile system basis of accounting basis of accounting system

The relationship between potential unsystematic risk and reward is given by ____________.

  1. Excess return to beta ratio

  2. Excess return to security

  3. Excess return to square security

  4. Excess return to beta square ratio
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Treynor ratio, or excess return to beta ratio, measures the return earned in excess of that which could have been earned on a riskless investment per unit of market risk.

Multiple choice book keeping and accountancy bases of accounting cash and mercantile system basis of accounting basis of accounting system

Which of the following is an intrastate supply?

  1. Supplier of goods located in Delhi and place of supply of goods SEZ located in Delhi

  2. Supplier of goods located in Delhi and place of supply of goods in Jaipur

  3. Supplier of goods located in Delhi and place of supply of goods in Delhi

  4. All the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An intrastate supply occurs when the location of the supplier and the place of supply are in the same state.