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1. If an employee of the business files a legal suit on business, it is considered in the books as a:

Legal Expense Liability Contingent Asset Contingent Liability

2. At the end of the accounting year the capital expenditures are shown in the:

Assets side of the Balance Sheet Liabilities side of the Balance Sheet Debit side of the Profit and Loss A/c Credit side of the Profit and Loss A/c

3. Which of the following is not a method of charging depreciation?

Sinking Fund Method Sum of years Digit Method Working hours Method Asset's Life - cycle Method

4. If average inventory is ₹1,25,000 and closing inventory is ₹10,000 less than opening inventory then the value of closing inventory will be:

₹1,35,000 ₹1,15,000 ₹1,30,000 ₹1,20,000

5. The Accommodation bill is drawn:

To finance actual purchase or sale of goods To facilitate trade transmission When both parties are in need of funds None of the above

6. Balance of X's account in creditors ledger is transferred to X's account in debtors ledger, in this case:

X's account in debtors ledger will be debited X's account in creditors ledger will be debited Suspense account will be debited None of the above

7. Ground rent or surface rent means:

Minimum rent Maximum royalty payable Minimum royalty payable Fixed rent payable in addition to minimum rent

8. Accounting standard in India are issued by:

Government of India Reserve Bank of India The Institute of Chartered Accountants of India The Institute of Accounting Standard of India

9. As on 31st March, 2017 debtors; and additional bad debts are ₹8,00,000 and ₹10,000 respectively. If the provision for bad debts is made at 5% on debtors then amount of such provision will be:

₹40,000 ₹50,000 ₹39,500 ₹40,500

10. Income and Expenditure Account is a:

Nominal Account Real Account Personal Account Artificial Personal Account

FA Paper 2017

The Number of MCQs are limited as per ICMAI Past Paper in Syllabus 2016