While preparing the transferee company's financial statement under amalgamation in the nature of purchase, the assets and liabilities taken over from the transferor company should be incorporated at . . . . . . . .
A. cost
B. book value
C. revised value
D. None of these
Select an option to see the answer and solution.
Unclaimed dividend is shown on the liability side of the balance sheet of a company as . . . . . . . .
A. Share capital
B. Current liabilities
C. Reserves & Surplus
D. Non-current liability
Select an option to see the answer and solution.
The closing debit balance in the receipts and payments account indicates the . . . . . . . . balance at the end of the year.
A. Opening
B. Closing
C. Trading
D. Cash
Select an option to see the answer and solution.
A second hand machinery was purchased for Rs. 1,00,000 five years ago and was overhauled by carrying out some current repairs at a cost of Rs. 10,000. It has also an accumulated depreciation of Rs. 50,000. It has been disposed of in the beginning of the sixth year for Rs. 60,000. Profit/loss on such disposal shall be
A. Profit of Rs. 10,000
B. Loss of Rs. 50,000
C. Loss of Rs. 40,000
D. No profit, no loss
Select an option to see the answer and solution.
When own debentures are cancelled any profit on cancellation is transferred to . . . . . . . .
A. general reserve
B. capital reserve
C. P/L Account
D. None of these
Select an option to see the answer and solution.
Sales to Shyam of Rs. 500 not recorded in the books would affect:
A. Shyam's account
B. Purchase account
C. Sales account
D. Cash 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. Financial leverage
1. Efficiency
b. Quick ratio
2. Profitability
c. Stock turnover
3. Liquidity
d. Margin on sales
4. Risk
A. a-4, b-3, c-1, d-2
B. a-1, b-2, c-4, d-3
C. a-4, b-2, c-1, d-3
D. a-1, b-3, c-4, d-2
Select an option to see the answer and solution.
Voluntary return of shares by shareholders to the company for cancellation is called:
A. transfer of shares
B. forfeiture of shares
C. surrender of shares
D. buyback of shares
Select an option to see the answer and solution.
Internal reconstruction can be done by . . . . . . . .
A. alteration of share capital
B. reduction of share capital
C. issue of share capital
D. All of these
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. Receipts and payments account
1. Revenue
b. Income and expenditure account
2. Cash
c. Dividend equalization reserve
3. Liability
d. Subscription received in advance account
4. General reserve
A. a-2, b-1, c-4, d-3
B. a-3, b-4, c-1, d-2
C. a-2, b-4, c-1, d-3
D. a-3, b-1, c-4, d-2
Select an option to see the answer and solution.
The excess of purchase consideration over net assets of the transferor company acquired by the transferee company should be recognized as . . . . . . . . in purchase method.
A. capital reserve
B. general reserve
C. goodwill
D. P&L
Select an option to see the answer and solution.
The amount spent on unsuccessful patent rights is a:
A. Capital expenditure
B. Deferred revenue expenditure (if the amount is large)
C. Revenue expenditure (even though the amount is large)
D. None of these
Select an option to see the answer and solution.
In order to determine the amount of sales, to which of the following records one should refer?
A. Sales book
B. Sales account
C. Journal
D. Total debtors account
Select an option to see the answer and solution.
. . . . . . . . is the account created in connection with internal reconstruction.
A. Realization a/c
B. Capital reduction a/c
C. Adjustment a/c
D. CRR a/c
Select an option to see the answer and solution.
Life membership fee received by a club are shown in . . . . . . . .
A. balance sheet
B. profit and loss account
C. income and expenditure account
D. revenue account
Select an option to see the answer and solution.
Trade discount allowed on sales is:
A. debited to customer's account
B. credited to customer's account
C. debited to profit and loss account
D. None of these
Select an option to see the answer and solution.
Profits can be fraudulently inflated by:
A. Suppression of sales returns
B. Treating capital expenditure as revenue
C. Overestimation of liabilities
D. Omission of prepaid expenses
Select an option to see the answer and solution.
NPA for a period not exceeding 12 months is called as . . . . . . . . asset.
A. loss
B. standard
C. sub-standard
D. doubtful
Select an option to see the answer and solution.
Which one of the following entry is not recorded in the residuary journal?
A. Opening entry
B. Closing entry
C. Adjustment entry
D. Credit sales
Select an option to see the answer and solution.
Credit sales are recorded in:
A. sales book
B. cash book
C. journal proper
D. purchases book
Select an option to see the answer and solution.
