CAPITAL & CURRENT ACCOUNT TRANSACTIONS -FEMA
Foreign Exchange Management Act, 1999 is the main Act which regulates the foreign Exchange transactions in India. There are two types of transactions taking place under this Act, Namely the Capital Account Transactions and The Current Account Transactions.
A capital account transaction is a transaction
- Which alters the assets or liabilities ( including the contingent liabilities)
– outside India of person resident in India and
– inside India of persons resident outside India
- Transactions specified in Section 6(3) of the Act
A transaction other than a capital account transaction is a current account transaction and includes
- Payments due in connection with foreign trade, other business transactions, and services and short term borrowings and credit facilities in the ordinary course of business.
- Payments due as interest on loans and as net income from investments.
- Remittance for living expense of parents, spouse and children residing abroad.
- Expenses in connection with foreign travel, education and medical care of parents, spouse and children.
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- Question 1 of 10
1. Question1 points
Production account comprises ofCorrect
Production account is prepared in three parts. The first part gives the cost of production, the second part gives the cost of goods
sold and the third part shows cost of sales or total cost for the period.Incorrect
- Question 2 of 10
2. Question1 points
Maintaining separate cost accounts under Unit Costing System is not necessary.Correct
Unit costing is suited for concerns producing a single product.Cost per unit in that case can be calculated by dividing the total expenditure incurred by the number of units produced.Incorrect
- Question 3 of 10
3. Question1 points
If the details of cost sheet or production statement are shown in the form of a ledger account, it is known as production accountCorrect
If the details of cost sheet or production statement are shown in the form of a ledger account, it is known as production account.Incorrect
- Question 4 of 10
4. Question1 points
Cost unit can be understood asCorrect
Cost unit can be understood as unit of product or services in relation to which costs are ascertained.Incorrect
- Question 5 of 10
5. Question1 points
Cost sheet is aCorrect
Cost sheet is prepared as a statement.Incorrect
- Question 6 of 10
6. Question1 points
Basic method of costing is/areCorrect
Basic methods of costing are Continuous operation/Process costing and Specific order/Job costing .Incorrect
- Question 7 of 10
7. Question1 points
Unit costing system is preferable forCorrect
Unit costing system is best suited for industries which have homogeneous products. Above industries are example of such industries.Incorrect
- Question 8 of 10
8. Question1 points
Net Income before Interest and tax is also calledCorrect
Net Income before Interest and tax is also called Operating Income/Profit.Incorrect
- Question 9 of 10
9. Question1 points
Production Account is based onCorrect
Production Account is based on actual figures.Incorrect
- Question 10 of 10
10. Question1 points
An account giving details of cost of production, cost of sales and profit made during a particular period is calledCorrect
An account giving details of cost of production, cost of sales and profit made during a particular period is called production account.Incorrect