Tag: basis of accounting

Questions Related to basis of accounting

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:

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

  1. 4, 3, 2, l

  2. 3, 4, 2, 1

  3. 4, 3, 1, 2

  4. 3, 4, 1, 2

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Correct Option: C

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

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

  1. smaller standard deviation

  2. larger standard deviation

  3. smaller variance

  4. larger variance

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Correct Option: B

What deductions are allowed from the transaction value ____________________.

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

  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

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Correct Option: A

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

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

  1. Excess return to beta ratio

  2. Excess return to security

  3. Excess return to square security

  4. Excess return to beta square ratio

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Correct Option: A

Which of the following is an intrastate supply?

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

  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

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Correct Option: C