Which of the following relates with social Accounting :
A. Environment
B. Community
C. Energy
D. All of the above
Select an option to see the answer and solution.
Dependent branch can make
A. Only cash sales
B. Only credit sales
C. Both cash and credit sales
D. None of the above
Select an option to see the answer and solution.
Cash from operations is equal to:
A. Net profit + increase in current assets
B. Net profit + decrease in current liabilities
C. Profit from operation ± Adjustment of increase and decrease in current assets and liabilities
D. Fund from operation ± Adjustment of increase and decrease in current assets and current liabilities
Select an option to see the answer and solution.
The amount of share premium can be used wholly or partly for writing off:
A. goodwill
B. preliminary expenses
C. deferred revenue expenses
D. all of the above
Select an option to see the answer and solution.
Which one of the following transactions will not affect the current ratio:
A. Credit purchase of goods
B. Cash sale of an old motor car
C. Issue of equity shares in lieu of some machinery
D. Cash purchase of a machine
Select an option to see the answer and solution.
If profit is equal to 25% of cost then sales would be
Select an option to see the answer and solution.
Match
List-I with
List-II and select your answer:
List-I
List-II
a. Surrender Value
1. Stock
b. Insanity of shareholder
2. Insurance policy
c. Share warrant
3. Transmission of shares
d. Fully paid-shares
4. Negotiable instrument
A. a-1, b-2, c-3, d-4
B. a-4, b-2, c-3, d-1
C. a-2, b-3, c-4, d-1
D. a-4, b-2, c-1, d-3
Select an option to see the answer and solution.
The most suitable coverage ratio for deciding the debt capacity of a firm is
A. Interest Coverage Ratio
B. Cash Flow Coverage Ratio
C. Debt Service Coverage Ratio
D. Fixed Assets Coverage Ratio
Select an option to see the answer and solution.
Profit distributed in the mid of the year will be shown in
A. Profit and loss account
B. Profit and loss adjustment account
C. Asset side of balance sheet
D. Liabilities side of balance sheet
Select an option to see the answer and solution.
The company's nationality is decidedby its
A. shareholders
B. registered office
C. place at books of accounts are kept
D. none of the above
Select an option to see the answer and solution.
Those adjustment expenses which are deducted from related expense and are shown as assets are called
A. Accrued
B. Prepaid expense
C. Outstanding expense
D. Capital expense
Select an option to see the answer and solution.
Financial Leverage is measured by:
A. EAT EBIT
B. EBT EBIT
C. EBT EAIT
D. EBIT C
Select an option to see the answer and solution.
The salary paid to a clerk Ramesh should be credited to:
A. Ramesh's Account
B. Salary Account
C. Cash Account
D. Profit and Loss Account
Select an option to see the answer and solution.
If the amalgamation is in the . . . . . . . ., the general reserveor profit and loss A/c balance will not be shown in the balance sheet.
A. Form of merger
B. Form of purchase
C. Net assets method
D. Consideration method
Select an option to see the answer and solution.
Owners equity stands for
A. Fixed assets - Flood liabilities
B. Fixed assets - Current liabilities
C. Current assets - Fixed liabilities
D. Total assets - Total outside liabilities
Select an option to see the answer and solution.
On 31st December 2004, the assets and liabilities of a firm were Rs. 40,000 and Rs. 30,000 respectively. The firm was dissolved and a sum of 60 paisa per rupee was paid to the creditors. Profit/loss on realisation-
A. Rs. 10,000
B. Rs. 12,000
C. Rs. 18,000
D. Rs. 22,000
Select an option to see the answer and solution.
Identify the true statement of the following.
1. Balance sheet is always prepared from the point of view of the business, but not from, that of the owners.
2. The financial relationship of the business to its owners is shown in the balance sheet.
3. Balance sheet is always related to a period of time.
A. Both 1 and 2
B. Both 2 and 3
C. Both 1 and 3
D. All of the above
Select an option to see the answer and solution.
An asset was purchased for Rs. 10,00,000 with the down payment of Rs. 2,00,000 and bills accepted for Rs. 8,00,000. What is the effect on the total asset and total liabilities in the balance sheet?
A. Assets increased by Rs. 8,00,000 and liabilities decreased by Rs. 8,00,000
B. Assets decreased by Rs. 8,00,000 and liabilities increased by Rs. 8,00,000
C. Assets increased by Rs. 10,00,000 and liabilities increased by Rs. 8,00,000
D. Assets increased by Rs. 8,00,000 and liabilities increased by Rs. 8,00,000
Select an option to see the answer and solution.
The cost of three small files (of Rs. 4 each) was charged to expenses when purchased even though they had useful life of several years. This was done according to the
A. cost principle
B. conservatism principle
C. disclosure principle
D. materiality principle
Select an option to see the answer and solution.
If goodwill account is already opened in the books and new partner brings his share of goodwill in cash, then accounting effect would be
A. Old goodwill account will be closed
B. Goodwill bought by new partner will be distributed between old partners in sacrificing ratio
C. A and B both
D. None of the above
Select an option to see the answer and solution.