Match the items of
List-I with items of
List-Il and indicate of correct matching
List-I List-II
a. Principle of separate entity
1. Valuing plant and machinery at cost less depreciation
b. Principle of conservatism
2. Recording punctuality and honesty of an organization's employees
c. Principle of money measurement
3. Capital contributed by proprietor is shown as liability in the balance sheet
d. Historical cost concept
4. Valuing inventories at cost or market price whichever is less
A. a-3, b-2, c-1, d-4
B. a-3, b-4, c-2, d-1
C. a-4, b-3, c-1, d-2
D. a-3, b-1, c-2, d-4
Select an option to see the answer and solution.
Which one of the following statements is not true:
A. Both shares and debentures of a company can be issued at a discount up to a maximum of 10%
B. Allotment of shares is done only when minimum subscription is received
C. Preference shares have priority over equity shares with regard to distribution of income
D. The Company cannot repurchase its own equity shares
Select an option to see the answer and solution.
What is not prepared in final accounts of Not for profit organisation?
A. Receipt and payment account
B. Income and Expenditure account
C. Trading A/c
D. Balance sheet
Select an option to see the answer and solution.
Given:
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Obsolescence means decline in the value due to:
A. Fall in market price
B. Physical wear and tear
C. Innovation
D. Efflux of time
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X and Y are partners sharing profits and losses in the ratio of 3 : 2 (X's capital is Rs. 30,000 and Y's capital is Rs. 15,000). They admitted Z agreed to give 5 1 th
A. Rs. 9,000
B. Rs. 11,250
C. Rs. 12,000
D. Rs. 14,500
Select an option to see the answer and solution.
Gamer vs Murray rule requires
A. that the solvent partners should bear the loss arising due to insolvency of a partner in their last agreed capital ratio
B. that the solvent partners should bring in cash equal to their respective shares of the loss on realisation
C. Both A and B
D. None of the above
Select an option to see the answer and solution.
Which of the following parties cannot be granted shares or share optionsby the entity?
A. Executive director
B. Supplier of goods and services
C. Chief Accountant
D. None of the above
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Total of the two sides of account and to find out the difference is called
A. Totalling
B. Trialing
C. Balancing
D. Analysing
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On 1st January, 2005 the plant and machinery was valued at Rs. 80,000 and on 31st December, 2005 it was valued at Rs. 1,20,000. Rs. 10,000 was written off as depreciation during the year. This will result in:
A. Source of Funds Rs. 30,000
B. Application of funds Rs. 50,000
C. Application of funds Rs. 40,000
D. Source of fund Rs. 50,000
Select an option to see the answer and solution.
ABC Ltd has declared 40% dividend. What does it mean?
A. The company has declared 40% of net profit as a dividend
B. The company has declared 40% of profits after tax as a dividend
C. The company will provide a 40% dividend on issued capital
D. The company will provide a 40% dividend on paid-up capital
Select an option to see the answer and solution.
Assets which have a fixed content and the value of asset goes down as the contents are taken out are called
A. intangible assets
B. fictitious assets
C. wasting assets
D. floating assets
Select an option to see the answer and solution.
A company can purchase, its own:
A. Equity share
B. Preference share
C. Debentures
D. All of the above
Select an option to see the answer and solution.
The technique of performance appraisal management is
A. To motivate the employees
B. To find out the qualifications of the employeess
C. Promotion of employees
D. To find out the difficulties of the employee
Select an option to see the answer and solution.
Statement I If an entity holds directly/indirectly 50% or more of the voting power of the investee, it is presumed thus such entity has significant influence.Statement II AS-24 deals with related party disclosures.
A. Only statement I is true
B. Only statement II is true
C. Both statements are true
D. Both statements are false
Select an option to see the answer and solution.
The inter-se-relations of the partners between themselves is that of
A. family friends
B. business associates
C. agents of each other
D. close relatives
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What items of inventories are outside the scope of AS-2?
A. 1, 3 and 4
B. 1, 2 and 4
C. 2, 3 and 4
D. All of these
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A club received the following donation in the year ending 31
st March, 2004.
31st March, 2003 31st March, 2004
Outstanding Donation
Rs. 19,500
Rs. 25,500
Advance Donation
Rs. 12,800
Rs. 9,500
The donation received in the year 2003 - 04 were Rs. 2,45,000. The club donation income for 2003 - 04 was
A. Rs. 2,63,800
B. Rs. 2,80,000
C. Rs. 2,47,700
D. Rs. 2,84,000
Select an option to see the answer and solution.
'Double entry system' refers to-
A. Every business transaction has two aspects
B. For every transaction, two accounts is prepared
C. Every business transaction is written twice
D. All of the above
Select an option to see the answer and solution.
Goodwill in a partnership firm can be valued at the time of
A. admission
B. retirement
C. death
D. All of these
Select an option to see the answer and solution.
