On 1st January, 1996 the stock was valued at Rs. 7,000. During January the purchases of the stock amounted to Rs. 23,000 and the cost of sales during the same period amounted to Rs. 21,000. What had been the value of the stock on 31st January, 1996:
A. Rs. 7,000
B. Rs. 5,000
C. Rs. 2,000
D. Rs. 9,000
Select an option to see the answer and solution.
What is the main objective of financial accounting?
A. Profit and loss account only
B. Balance sheet only
C. Both profit and loss account and balance sheet
D. Trial balance only
Select an option to see the answer and solution.
For assessing the firms efficiency of operation,we need to analyse the combined effect of which of the following pairs of ratios:
A. Debt-to-net worth ratio and the Interest coverage ratio
B. The current ratio and the inventory-turnover ratio
C. Earnings per share and the coverage ratio
D. The Net Profit margin and the net operating profit rate of return
Select an option to see the answer and solution.
Non-Trading Institutions prepare:
A. Trading Account
B. Trading, Profit and Loss Account
C. Income & Expenditure Account
D. None of the above
Select an option to see the answer and solution.
Short working means
A. Excess of minimum rent over royalty
B. Excess of royalty over minimum rent
C. Surplus of royalty
D. Excess of actual rent over minimum rent
Select an option to see the answer and solution.
Match the following.
List-I List-II
a. After reissue of forfeited shares the balance of share forfeiture account is transferred to . . . . . . . .
1. Assets
b. Bonus issue is made out of . . . . . . . .
2. Free reserve
c. Debentures secured by a charge on . . . . . . . . are termed as secured debentures.
3. Accumulated profits
d. Workmen's compensation fund is . . . . . . . . to extent there is no compensation payable.
4. Capital Reserve A/c
A. a-4, b-3, c-2, d-1
B. a-4, b-3, c-1, d-2
C. a-2, b-1, c-4, d-3
D. a-2, b-4, c-1, d-3
Select an option to see the answer and solution.
The part of share capital, which can be called up only on the winding up of a company, is called:
A. authorised
B. called up capital
C. winding up capital
D. reserve capital
Select an option to see the answer and solution.
Depreciation refers to:
A. Fixed assets
B. Goodwill
C. Floating assets
D. All the three
Select an option to see the answer and solution.
A company has spent Rs. 20,000 on painting of its building. It should be recorded as
A. Revenue expenditure
B. Capital expenditure
C. Personal expenditure
D. Deferred revenue expenditure
Select an option to see the answer and solution.
A new partner brings in cash as his share of goodwill, this amount will be distributed among old partners in:
A. Old profit sharing ratio
B. Equal ratio
C. Ratio of capitals
D. Sacrifice ratio
Select an option to see the answer and solution.
Part I of Schedule VI of Companies Act, 1956 prescribe the format which every company must follow to show a true and fair view of:
A. Profit and loss
B. Appropriation of profits
C. State of affairs
D. All the above
Select an option to see the answer and solution.
Capital account is a
A. Personal account
B. Impersonal account
C. Real account
D. None of the above
Select an option to see the answer and solution.
A sole trader introduced fresh capital during the year Rs. 10,000 and his drawings were Rs. 4,000. If the profit of the year is Rs. 3,000 and the closing balance of capital is Rs. 40,000, the the balance of capital at the beginning of the year will be
A. Rs. 21,000
B. Rs. 31,000
C. Rs. 41,000
D. Rs. 28,000
Select an option to see the answer and solution.
Cash withdrawn by the proprietor for his personal use should be debited to
A. Sales account
B. Capital account
C. Drawings account
D. Both B and C
Select an option to see the answer and solution.
The practice of appending notes regarding contingent liabilities in accounting statements is in pursuant to
A. convention of consistency
B. money measurement concept
C. convention of conservatism
D. convention of disclosure
Select an option to see the answer and solution.
Which group of the following items are application of funds:
A. 2, 3 and 4
B. 1, 3 and 5
C. 1, 2 and 4
D. 3, 4 and 5
Select an option to see the answer and solution.
Personal selling is not targeted towards
A. Mass audiences
B. Personal contact
C. Two way communication
D. Quick feedback
Select an option to see the answer and solution.
In case of a death of a partner, joint life policy is credited to the:
A. All partners (including deceased partner) in their profit and loss ratio
B. Only deceased partner capital account
C. Alive partner capital account in their profit and loss ratio
D. All partner capital account in their capital ratio
Select an option to see the answer and solution.
Bank reconciliation statement is prepared.
A. To obtain deposits during the year
B. To obtain drawing during the year
C. To obtain actual bank balance
D. To find profit of the organization
Select an option to see the answer and solution.
Which of the following sections of the companies Act. 1956 requires the maintenance of proper books of account:
A. Section 211
B. Section 205
C. Section 209
D. Section 217
Select an option to see the answer and solution.
