Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Financial Accounting (CFA510): - Question Paper

ques. Paper
Financial Accounting (CFA510): October 2007
• ans all ques..
• Marks are indicated against every ques..
1. Which of the subsequent is a real account?
(1 mark)
(a) Bank account
(b) Stock of stationery account
(c) Returns inward account
(d) Outstanding rent account
(e) Capital account.
< ans >
2. Which of the subsequent statements is false?
(1 mark)
(a) Ledger is the main book of account in which all accounts are maintained
(b) The credit balance of a nominal account shows income received
(c) Debit balance in commission account shows commission paid
(d) Cash account always indicates credit balance
(e) In case of bank overdraft bank account indicates credit balance.
< ans >
3. In a manufacturing company, which of the subsequent systems is called product costing system?
(1 mark)
(a) Perpetual inventory system
(b) Periodic inventory system
(c) Accrual system
(d) Weighted avg. method
(e) Specific identification method.
< ans >
4. The value of inventory far in excess of the normal requirement of a firm is shown under
(1 mark)
(a) Current assets
(b) Fictitious assets
(c) Intangible assets
(d) Non-current assets
(e) Miscellaneous expenditure.
< ans >
5. The books of Bharat Ltd. revealed the subsequent information:
On March 31, 2007, the cost of missing inventory that may have been pilfered by the storekeeper was
estimated to be Rs.75,000. The company’s rate of gross profit on sales has remained constant at 25%.
The value of inventory on March 31, 2007 was
(2 marks)
Particulars Rs.
Opening inventory 6,00,000
Purchases during the year 2006-2007 34,00,000
Sales during the year 2006-2007 48,00,000
(a) Rs.3,25,000
(b) Rs.1,25,000
(c) Rs.1,00,000
(d) Rs.1,50,000
(e) Rs.2,25,000.
< ans >
6. Which of the subsequent items is generally not considered as part of inventory?
(a) Raw-material
< ans >
(1 mark)
(b) Work-in-process
(c) Consumables
(d) Finished goods
(e) Machinery spares.
7. Which of the subsequent inventory evaluation methods indicates higher profits during a period of rising
prices?
(1 mark)
(a) FIFO (First In 1st Out)
(b) LIFO (Last In 1st Out)
(c) Weighted avg.
(d) Simple avg.
(e) Specific cost.
< ans >
8. Mohan withdrew Rs.10,000 from firm bank account for his personal use. The entry to be passed is

Earning:   Approval pending.