B.Com 3rd Year Auditing Online Test

70. Method of valuating stock is –

69. If average capital of business is Rs. 5,00,000; Average annual income Rs. 80,000 and normal rate of return 10% then amount of goodwill by capitalisation method will be –

68. Capitalisation method is concerned with –

67. Instrinsic value method of valuation is concerned with –

66. Average Profit Method is connected with –

65. Material includes –

64. When profit is inflated by making wrong valuation of stock, then profit of succeeding year will –

63. In which possibilities of fraud and error are more –

62. Which of the following is the result of undervaluation of stock –

61. In which case decision is that physical verification of stock is the liability of auditor –

60. Incorrect valuation of stock affects –

59. Main cause of over and under valuation of assets and liabilities iss –

58. Which of the following is contingent liability –

57. In the Balance Sheet contingent liabilities is shown –

56. In the Last in Fist out Method’ stock is valued at –

55. In the First in First Out Method’, stock is valued at –

54. Valuation of loose tools is made on the basis of –

53. Valuation of Livestock should be made by –

52. In valuing livestock, auditor should take certificate of –

51. Highest in Price Out’ method of valuation is used –

50. Quoted Price is related with –

49. Which of the following is wasting asset –

48. On which side Trade mark is shown in the Balance Sheet –

47. At which price raw material is valued –

46. “Generally stock is valued at cost price or market price whichever is less”, this statement is given by –

45. Which of the following asset is valued at cost –

44. Work of Valuation done by is –

43. Which of the following is an intangible asset –

42. Land is valued at –

41. In case of unclaimed wages, the auditor should examine whether –

40. Floating assets are valued at –

39. Which of the following statement is valuation of assets by an auditor –

38. Which of the following statement is correct –

37. Verification refers to –

36. Preliminary expenses include –

35. Direct confirmation procedure can be applied to –

34. Investments in hand should be verified with the help of –

33. Which of the following is fictitious asset –

32. Which of the following is an intangible asset?

31. Which of the following is fictitious asset –

30. Which of the following is intangible asset –

29. Which of the following is wasting asset –

28. Registration from government for a name or mark of the produced goods is termed as –

27. Valuation of purchased goodwill is done on the basis of –

26. Which of the following is current asset?

25. Current assets remain in business for –

24. Which the following is a fixed asset –

23. Wasting assets means –

22. Which reserve is useful to strength the financial position of a business?

21. Which asset is valued on cost price or market price whichever is less –

20. Stock should be valued at –

19. Case of London Oil Storage Co. Ltd. vs. Sear Hasluck Co. (1904) is related to –

18. Verification is based on –

17. Valuation is a part of –

16. Verification and Valuation both are –

15. The judgement that ‘an auditor is not a valuer’ in case of –

14. “An Auditor is not a valuer”. This statement is of –

13. Auditor is –

12. When auditor has any doubt about the valuation of assets, he must disclose this fact –

11. Valuation is –

10. Which of the following is the object of valuation –

9, In how many parts generally assets are categorised –

8, “The valuation of assets is an attempt to ensure the equitable distribution of the original outlay over the period of the assets usefulness.” This is defined by –

7. In verifying liabilities, an auditor see that –

6. Which of the following does not require physical verification?

5. Object of verification of assets by an auditor is –

4. Which of the following is not the object of verification –

3. Principle of verification is –

2. “The verification of Assets implies an enquiry into the value, ownership and title, existence and possession and the presence of any charge on the assets”. This is defined by –

1. Meaning of verification of assets is –