Debenture is also named as
A. Share
B. Bond
C. Reserve
D. Equity
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Which of the following is the most important document of the company?
A. Memorandum of association
B. Articles of association
C. Annual report
D. Prospectus
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Authorized share capital is also known as
A. Registered capital
B. Issued capital
C. Paid up capital
D. Called up capital
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The maximum amount with which a company is registered is called
A. Authorized capital
B. Issued capital
C. Paid up capital
D. Called up capital
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Which one of the following is NOT true about revenue expenditure?
A. These are the running expenses of the business
B. They improve the financial position of the business
C. They reduce the profit of the concern
D. They do not appear in the balance sheet
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Which one of the following statement is CORRECT about long term liabilities?
A. These are due within one year
B. These consist of all debts, payabke after 12 months
C. In working capital, these are deducted from current assets
D. All of the above
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Which one of the following can offer its share to public at large?
A. Private limited company
B. Listed company
C. Partnership firm
D. Trust
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The persons who sign Articles and Memorandum of the company and contribute in the initial share capital of the company are called
A. Subscribers
B. Shareholders
C. Managers
D. Directors
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Which of the following are the owners of a company?
A. Proprietors
B. Partners
C. Shareholders
D. Managers
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General office expenses are charged to which of the following head?
A. Administrative expenses
B. Marketing expenses
C. Selling expenses
D. Financial expenses
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Stock of a Trading concern consists of
A. Raw material
B. Work in progress
C. Merchandise inventory
D. All of the above
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Expenditure incurred annually on renewal of patent is a
A. Revenue expenditure
B. Capital expenditure
C. Financial expenditure
D. Operating expenditure
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Which of the following account will be credited when the goods are purchased on cash?
A. Stock account
B. Cash account
C. Supplier account
D. Work in progress account
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Which of the following account will be credited when the goods are purchased on credit from Mr. Ali?
A. Purchases account
B. Mr. Ali account
C. Cash account
D. Sales account
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An informal accounting statement that lists the ledger account balances at a point of time and compares the total of debit balances with the total of credit balances is known as
A. Income statement
B. Balance sheet
C. Trial balance
D. Cash Book
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Documentary evidence, in a specific format used to record the details of a transaction is known as
A. Account
B. Voucher
C. Journal
D. Ledger
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Cost incurred for the maintenance of shop is considered as
A. Deffered expense
B. Capital expenditure
C. Revenue expenditure
D. Preliminary expense
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Double entry accounting system includes
A. Accrual accounting only
B. Cash accounting only
C. Both cash and accrual accounting
D. None of the above
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Which of the following financial statements show the financial health of an organisation at a stated point of time?
A. Balance sheet
B. Trading and Profit & Loss account
C. Cash flow statement
D. Statement of retained earnings
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The estimated value at which an asset is expected to be sold after the end of its useful life is called
A. Residual value
B. Salvage value
C. Scrap value
D. All of the above
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