Consider the following statement, while preparing annual financial statements, the balance of bills receivable account can be treated as-
A. II and III are correct
B. I and III are correct
C. I and II are correct
D. None of these
Select an option to see the answer and solution.
'Bank over draft' should be classified as:
A. Current asset
B. Current liability
C. Intengible asset
D. Intangible asset
Select an option to see the answer and solution.
Error of commission do not allow . . . . . . . .
A. correct totalling of the balance sheet
B. correct totalling of the trial balance
C. the trial balance to agree
D. correct totalling of the day book
Select an option to see the answer and solution.
Shares which carry preferential rights are called . . . . . . . .
A. equity shares
B. preference shares
C. sweaty equity
D. green shoe
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When an incoming partner purchases his share from any one of the existing partners, then:
A. total assets of the firm do not change
B. total assets of the firm will be augmented to the extent of payment received from the new partner
C. total assets of the firm will be reduced to the extent of payment received from the new partner
D. change in total assets of the firm will depend upon the new profit sharing ratio of the partners
Select an option to see the answer and solution.
Which of the following is considered as an asset while calculating purchase consideration?
A. Goodwill
B. Patent
C. Trademark
D. All of these
Select an option to see the answer and solution.
A firm which keeps its books of accounts on single entry system has opening balance and closing balance of Bills Receivable as Rs. 9,000 and Rs. 11,000 respectively. Bills collected during the financial period amount to Rs. 20,000. Bills receivable received during the financial period amount to:
A. Rs. 22,000
B. Rs. 18,000
C. Rs. 12,000
D. Rs. 11,000
Select an option to see the answer and solution.
Reinsurance is common in . . . . . . . .
A. life insurance
B. general insurance
C. marine insurance
D. None of these
Select an option to see the answer and solution.
When a bill drawn by A and B endorsed to C is dishonoured on the due date, it is credited in the books of A to . . . . . . . .
A. Bank account
B. Bills receivable account
C. Bank for collection of bills account
D. C's account
Select an option to see the answer and solution.
Any revenue expense for when a separate fund is available will be . . . . . . . .
A. debited to the separate fund
B. debited to income and expenditure account
C. capital issued and shown in the balance sheet
D. credited to the separate fund
Select an option to see the answer and solution.
. . . . . . . . is a document which either creates or acknowledges a debt.
A. Debenture
B. Trust deed
C. Security
D. Articles of Association
Select an option to see the answer and solution.
Which of the following is a statutory reserve?
A. Development Allowance Reserve
B. Capital Reserve
C. Workmen's Compensation Fund
D. CRR
Select an option to see the answer and solution.
A cricket club has 50 members and each member pays Rs. 200 as monthly subscription 5 members paid advance subscription for the financial year 1994-95 and 10 members failed to pay subscription for the year 1993-94. The amount to be credited as subscription to income and expenditure account would be:
A. Rs. 12,000
B. Rs. 10,000
C. Rs. 9,600
D. Rs. 8,000
Select an option to see the answer and solution.
Sales to Mr. Gill recorded in purchase journal would affect . . . . . . . .
A. Sales account
B. Sales account, purchases account and Mr. Gill's account
C. Purchases account and sales account
D. Journal proper
Select an option to see the answer and solution.
When A advances money to B in the course of joint venture then A debits such money to . . . . . . . .
A. Joint bank account
B. Joint venture account
C. B's personal account
D. Expenses account
Select an option to see the answer and solution.
Salary account is of the nature of a:
A. real account
B. nominal account
C. personal account
D. trading account
Select an option to see the answer and solution.
Expenses incurred on research and development is an example of:
A. Capital expenditure
B. Revenue expenditure
C. Deferred revenue expenditure
D. None of these
Select an option to see the answer and solution.
Subscriptions received in advance will figure in the . . . . . . . .
A. balance sheet
B. receipts and payment account
C. income and expenditure account
D. revenue account
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 List-II
a. Uncertain liability
1. Amortisation
b. Expiry of tangible asset
2. Long-term liability
c. Basis for all valuations in the balance sheet
3. Research and development
d. Accounting standard-As-8
4. Estimated obligation
5. Conservatism convention
A. a-5, b-1, c-2, d-3
B. a-4, b-3, c-5, d-1
C. a-5, b-3, c-4, d-1
D. a-4, b-1, c-5, d-3
Select an option to see the answer and solution.
Which of the following represents source of fund in the balance sheet of a company?
A. secured loan
B. share capital
C. reserves & surplus
D. All of these
Select an option to see the answer and solution.
