SEBI Grade A 2022- Commerce & Accountancy Question | Set-4

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 Commerce & Accountancy Question for SEBI Grade A

Practice Questions Set for SEBI Grade A 2022. SEBI Grade A Commerce & Accountancy Question Set with answers Phase I & Phase II. SEBI Grade A Study Material, Books, PDFs, Free Notes, and Mock Test for of Commerce Accountancy. As we all know The Security Exchange Board of India (SEBI) has released the SEBI Grade A 2022 Notification for the recruitment of 120+ Assistant Managers across the country.

If you are preparing for SEBI Grade A 2022, you will come across a section on “Commerce & Accountancy”. In this post, you will get sample questions for SEBI Grade A Commerce & Accountancy section. If you prepare this thoroughly, you can very easily crack SEBI Grade A 2022. If you want to crack SEBI Grade A 2022 exam then you should buy Best Books for SEBI Grade A 2022. Before starting the preparation for this exam you will aware of SEBI Grade A Previous Year Papers. These questions are important for SEBI Grade A Exam.

 Commerce & Accountancy Practice Question Set-4


1. Which is the last step of accounting as a process of information?

  1. Recording of data in the books of accounts
  2. Preparation of summaries in the form of financial statements
  3. Communication of information
  4. Analysis and interpretation of information
  5. Just in time
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Correct Answer:  C. Communication of information

Explanation: Accounting as a process of information involves identification, measurement, recording, and communication. Communication is the last step in the process. Identification : It means determining what transactions to record, i.e., to identity events which are to be recorded. It involves observing activities and selecting those events that are of considered financial character and relate to the organisation.

2. Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented?

  1. Understandability
  2. Relevance
  3. Comparability
  4. Reliability
  5. None of These
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Correct Answer:  A. Understandability

Explanation: Qualitative characteristics are the attributes of accounting information that tend to enhance its understandability and usefulness. In order to assess whether accounting information is a useful decision, it must possess the characteristics of reliability, relevance, understandability, and comparability. Understandability means decision-makers must interpret accounting information in the same sense as it is prepared and conveyed to them. A message is said to be effectively communicated when it is interpreted by the receiver of the message in the same sense in which the sender has sent. Accountants should present comparable information in the most intelligible manner without sacrificing relevance and reliability.

3. Use of common unit of measurement and common format of reporting promotes;-

  1. Comparability
  2. Understandability
  3. Relevance
  4. Reliability
  5. None of These
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Correct Answer: A. Comparability

Explanation: To be comparable, accounting reports must belong to a common period and use common unit of measurement and format of reporting.

4. Which of the following is not a business transaction?

  1. Bought furniture of Rs.10,000 for business
  2. Paid for salaries of employees Rs.5,000
  3. Paid sons fees from her personal bank account Rs.20,000
  4. Paid sons fees from the business Rs.2,000
  5. None of these

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Correct Answer: C. Paid sons fees from her personal bank account Rs.20,000

Explanation: Option c is correct answer as personal bank account is used (for personal reasons) in this particular transactions.

5. Which of the following is NOT a characteristic of useful information?

  1. Relevant
  2. Verifiable
  3. Accessible
  4. Cost-effective
  5. None of these
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Correct Answer: D. Cost-effective

Explanation: Cost-effectiveness is not a characteristic of useful information, though it is desired.

6. Accounting Information Systems (AIS) is most likely applicable to which area of accounting?

  1. Tax accounting
  2. Public Accounting
  3. Management Consulting
  4. All of the above
  5. None of these
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Correct Answer: D. All of the above

7. Which of the following does not influence the design of an Accounting Information System (AIS)?

  1. Organizational culture
  2. Information Technology
  3. Business strategy
  4. Legal environment
  5. None of these
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Correct Answer: D. Legal environment

8. Reliability refers to the characteristic of information whereby-

  1. Uncertainty is reduced
  2. Information is free from error or bias.
  3. Timely.
  4. Verifiable.
  5. None of the above
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Correct Answer:  B. Information is free from error or bias.

Explanation: Reliability means the users must be able to depend on the information. The reliability of accounting information is determined by the degree of correspondence between what the information conveys about the transactions or events that have occurred, measured and displayed. A reliable information should be free from error and bias and faithfully represents what it is meant to represent. To ensure reliability, the information disclosed must be credible, verifiable by independent parties use the same method of measuring, and be neutral and faithful.

9. Which of the following is a function of an AIS?

  1. reducing the need to identify a strategy and strategic position
  2. transforming data into useful information
  3. allocating organizational resources
  4. automating all decision making
  5. None of the above
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Correct Answer:  B. transforming data into useful information

Explanation: The purpose of an accounting information system (AIS) is to collect, store, and process financial and accounting data and produce informational reports that managers or other interested parties can use to make business decisions.

10. Data differs from information in which way?

  1. Data is output, and information is input.
  2. Information is output, and data is input.
  3. Data is meaningful bits of information.
  4. There is no difference.
  5. None of these
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Correct Answer: B. Information is output, and data is input.

Explanation: Data is raw, unorganized facts that need to be processed. Data can be something simple and seemingly random and useless until it is organized. When data is processed, organized, structured or presented in a given context so as to make it useful, it is called information. From the AIS perspective, data can be seen as input and information as output.

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