Long term solvency is indicated by
A. Asset Liability Ratio
B. Debt Equity Ratio
C. Interest Coverage Ratio
D. All are correct
Select an option to see the answer and solution.
Automation and Computerization make an office:
A. Workless
B. Powerless
C. Paperless
D. Leaderless
Select an option to see the answer and solution.
Mr. Ashok Kumar has taken a mine on lease whose minimum rent is Rs. 1,00,000. The rate of royalty is Rs. 1 per ton. The production in a particular year is Rs. 80,000 tonnes. What will be the amount to be paid by Mr. Ashok?
A. Rs. 80,000
B. Rs. 1,00,000
C. Rs. 90,000
D. Rs. 50,000
Select an option to see the answer and solution.
After admission of a new partner the capital of all the partner must be in
A. New profit sharing ratio
B. Old profit sharing ratio
C. Equal ratio
D. Mutually agreed ratio
Select an option to see the answer and solution.
The convention of conservatism is applicable in:
A. providing for discount on creditors
B. making provision for bad and doubtful debts
C. creating reserve for financial stability
D. none of these
Select an option to see the answer and solution.
At Break-Even point, contribution is equal to
A. Variable cost
B. Fixed cost
C. Total cost
D. Sales price
Select an option to see the answer and solution.
Under Hire Purchase System the relationship between buyer and seller is
A. Debtor and creditor
B. Pawner and pawnee
C. Bailor and bailee
D. Lender and the borrower
Select an option to see the answer and solution.
Under the 'purchase method of accounting', the transferee company incorporates in its books
A. The assets, liabilities and reserves of the transferor company
B. The assets, liabilities and not statutory reserves of the transferor company
C. The assets, liabilities and statutory reserves of the transferor company
D. The assets and liabilities of the transferor company
Select an option to see the answer and solution.
'P' and 'Q' are partners, sharing profits in the ratio of 8 : 5 respectively. On 1st April 2016, they admitted R into partnership. The new profit sharing ratio among P, Q and R is fixed as 6 : 4 : 3 respectively. The sacrifice ratio of 'P' will be
A. 13 2
B. 13 1
C. 13 3
D. None of these
Select an option to see the answer and solution.
If capitals are fluctuating, which of the following will not be added while determining capital ratio?
A. General reserve fund
B. Balance of profit and loss
C. Profit on realization
D. Balance of cash A/c
Select an option to see the answer and solution.
The requirement of working capital depends on:
A. The period of operating cylce
B. The size of the business
C. The turnover of current assets
D. All the above A, B and C
Select an option to see the answer and solution.
The meaning of net invested capital is
A. Total assets - Current Liabilities
B. Total assets - Total Liabilities
C. Total assets - Fictitious Assets - Current Liabilities
D. None of the above
Select an option to see the answer and solution.
Contribution is
A. Sales - Purchase
B. Sales - Variable Cost
C. Sales - Fixed Cost
D. None of these
Select an option to see the answer and solution.
Which among the following is wrong?
A. P/V Ratio = Sales Contribution
B. P/V Ratio = Sales Fixed Cost + Profit
C. P/V Ratio = Sales Sales − Variable Cost
D. P/V Ratio = Change in Sales Contribution
E. P/V Ratio = Sales Fixed Cost
Select an option to see the answer and solution.
Which of the following is not a tool of management accounting?
A. Financial Accounting
B. Inflation Accounting
C. Standard Costing
D. Analysis of Financial Statements
Select an option to see the answer and solution.
Assets of an organization is Rs. 21,315 and liabilities is Rs. 4,120. The capital of owner is
A. Rs. 21,315
B. Rs. 17,195
C. Rs. 25,435
D. Rs. 4120
Select an option to see the answer and solution.
The current ratio is ratio between:
A. Current assets and current liabilities
B. Liquid assets and current liabilities
C. Debts and equity
D. Fixed assets and sales
Select an option to see the answer and solution.
On 1st June 2018, a partner introduced an additional capital Rs. 50,000 in the firm. In the absence of a part nership deed, on 31st March 2019, he will receive an interest of
A. Rs. 3,000
B. Zero
C. Rs. 2,500
D. Rs. 1,800
Select an option to see the answer and solution.
Amount spent on advertisement campaign, the benefit of which is likely to last for at least three years, is
OR
Rs. 1,00,000 spent on special advertising compaign will be:
A. Capital expenditure
B. Revenue expenditure
C. Deferred revenue expenditure
D. Contingent expenditure
Select an option to see the answer and solution.
Realisation concept would apply when:
A. Money is realised from the debtors
B. Goods are delivered to customer
C. Order is received
D. none of the above
Select an option to see the answer and solution.