A Company purchased 8% bonds at a cost of Rs. 12,00,000 (face value Rs. 10,00,000) on 1st January 2003. Half yearly interest is payable on this investment on 30th June and 31st December each year. The company closes its accounts on 31st March 2003. The amount of accured interest shown in profit and loss account for the year ended is:
A. Rs. 40,000
B. Rs. 60,000
C. Rs. 20,000
D. Rs. 80,000
Select an option to see the answer and solution.
Provision for Income tax is shown in a bank's Balance Sheet as . . . . . . . .
A. contingent liability
B. contingent asset
C. borrowings
D. other liabilities and provisions
Select an option to see the answer and solution.
Which of the following transactions will result in decrease in assets and decrease in liabilities?
A. Payment of a promissory note with cash
B. Materials returned to supplier on account
C. Redemption of debentures
D. All of these
Select an option to see the answer and solution.
In the case of joint stock companies, the assets and liabilities in B/S are arranged in the order of . . . . . . . .
A. serial number
B. performance
C. availability
D. None of these
Select an option to see the answer and solution.
Errors which affect one account can be . . . . . . . .
A. errors of omission
B. errors of principle
C. errors of posting
D. errors of commission
Select an option to see the answer and solution.
The main aim of . . . . . . . . is to ascertain cost relating to the various activities of the business and to have cost control.
A. financial accounting
B. cost accounting
C. management account
D. human resource accounting
Select an option to see the answer and solution.
In financial statements, adequate disclosure is ensured by companies as per the requirements of:
A. I and III are correct
B. I, II and III are correct
C. II, III and V are correct
D. II, III and IV are correct
Select an option to see the answer and solution.
Match
List-I with
List-II and select the correct answer using the options given below the lists:
List-I (Types of accounts)List-II (Principles)
a. Real Accounts
1. Debit the receiver credit the giver
b. Nominal Accounts
2. Debit what comes in credit what goes out
c. Personal Accounts
3. Debit all expenses credit all gains
A. a-3, b-2, c-1
B. a-1, b-3, c-2
C. a-2, b-3, c-1
D. a-1, b-2, c-3
Select an option to see the answer and solution.
If the operating expenses exceed gross profit, the excess is referred to as:
A. Operating income
B. Operating loss
C. Non-operating expenses
D. Non-operating income
Select an option to see the answer and solution.
Accounting for amalgamation is given in . . . . . . . .
A. AS 14
B. AS 16
C. AS 20
D. None of these
Select an option to see the answer and solution.
Any expenditure incurred in order to reduce the operating expenses is . . . . . . . .
A. capital expenditure
B. revenue expenditure
C. deferred revenue expenditure
D. promotional expenditure
Select an option to see the answer and solution.
. . . . . . . . is a liability which may or may not arise in future depending on happening of some uncertain future event.
A. contingent liability
B. bills for collection
C. non-banking liability
D. bills payable
Select an option to see the answer and solution.
Pooling of interest method is applicable for amalgamation in the nature of . . . . . . . .
A. merger
B. consolidation
C. reconstruction
D. realization
Select an option to see the answer and solution.
Average due date can be called as . . . . . . . .
A. mean due date
B. median due date
C. mode due date
D. zero date
Select an option to see the answer and solution.
When one of the following reflects the over all efficiency with which capital is used?
A. Return on shareholders funds
B. Investment turnover ratio
C. Earning per share
D. Operating ratio
Select an option to see the answer and solution.
. . . . . . . . is an annual payment made by a life insurance company in consideration form a lump sum received.
A. Claim
B. Annuity
C. Bonus
D. Premium
Select an option to see the answer and solution.
Which of the following is not an alteration of capital?
A. Consolidation of shares
B. Sub-division of shares
C. Conversion of shares into stock
D. Paid offpaid up capital in excess of needs of the company
Select an option to see the answer and solution.
At present, a company limited by shares cannot issue . . . . . . . . preference shares.
A. redeemable
B. irredeemable
C. convertible
D. None of these
Select an option to see the answer and solution.
According to which of the following concepts even the owner of the business who provides capital treated as a creditor of the business?
A. Entity concept
B. Cost concept
C. Money measurement concept
D. Convention of disclosure
Select an option to see the answer and solution.
Discount on issue of debentures is a . . . . . . . .
A. capital loss
B. capital profit
C. revenue loss
D. revenue profit
Select an option to see the answer and solution.
